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2016 Netball Victoria Financial Report 1

NETBALL VICTORIA

2016Financial Report

2016 Netball Victoria Financial Report2016 Netball Victoria Financial Report 32

4 Directors

4 Directors’ Declaration

5 Auditor’s Independence Declaration

8 Operating Performance

9 Financial Position

9 Financial Summary

10 Independent Audit Report

Contents“The overall financial health at Netball Victoria provides stability for us to continue to grow and support our sport at all levels; from grassroots to elite.” — Jenny Sanchez, President


The Netball Victoria Directors at any time during or since the end of the financial year are:

Director Period as Director

President – Jenny Sanchez 2000 to Present

Elected Director – Richelle McKenzie 2007 to Present

Elected Director – Kirrily Zimmerman 2008 to Present

Elected Director – Shane O’Sullivan 2013 to Present

Elected Director – Marlene Elliott 2013 to Present

Elected Director – Gayle Lambert 2014 to Present

Elected Director – Jan Fitzgerald 2015 to Present

Appointed Director – Natalie Whitaker (nee Eden) 2013 to Present

Appointed Director – Mary Bluett 2015 to Present

Observer – Wendy Frost 2015 to Present

Directors Auditor’s Independence Declaration


Auditor’s Independence Declaration Auditor’s Independence Declaration


Operating Performance

Netball Victoria has delivered sound financial performance for 2016, with an operating surplus of $11,068 - a figure very close to the budget target.Importantly, we have met our financial targets, while also delivering against our key strategic aims for the year, some of which are detailed below:

• Driving growth in our netball participation community to over 216,000 people including over 114,681 individual and 200 Association and League members. Individual membership numbers grew by over 2,000, which marks the eighth consecutive year of growth.

• Investment in training and supporting our community with the MyNetball registration system continued at a high level. We introduced new forms of training, webinars, support and access to information for our Associations and Leagues, and continued to provide intensive support on key matters such as governance, insurance and dispute resolution.

• With the support of VicHealth and Sport and Recreation Victoria, we have continued to invest strongly in the development of new non-traditional netball programs that will open new markets, supporting both participation and financial growth for our sport.

• We continued with the development of a state-wide 10-year facility strategy and facilities manual. We worked with the State Government and four inner city Local Government Associations to commence plans on the delivery of the 64 court election commitment for Inner North Metro Melbourne, the continuation of the Country Football Netball Program and investment in technical services for facility development and court audits.

• That we have ongoing commitment to ensuring our regional areas are well supported, by having our regional staff in place.

• Successfully managing the transition from the ANZ Championships to Suncorp Super Netball including new player contracts and increased marketing and other activities.

• We achieved both growth and a very high level of retention with new partners and sponsors and continued to increase our profile across traditional and digital media.

• Maintaining a high investment in the professional development of our staff team, while increasing overall staff numbers and managing turnover.

• We continued a program of review and reduction of operating costs.

Our work and achievements in these areas have been the major drivers of achieving our targeted operating position. Our focus is on continuing to grow revenues from a range of sources, and rather than make large surpluses invest that money into services and facilities that both support our community and grow our sport.

We continue to operate with tight margins and pursue all appropriate opportunities and initiatives, in order to improve our financial health and that of our Associations and Leagues. We are prudent in all our financial dealings, respecting both our member contributions and the ongoing tightness of the economy. Our environment is dynamic and as we also develop we must recognise that new initiatives, such as our new products and programs, will take time to generate a positive and sustained financial outcome.

As at 31 December 2016, Netball Victoria has net assets of $4,749,054. This includes the value of Netball House – our offices in King Street West Melbourne - which are fully owned and valued (land and buildings) at $3,175,000 (based on an independent valuation conducted in Oct 2015).

In summary, the financial position of Netball Victoria as at the end of December 2016 is healthy. Our financial turnover continues to grow. This enables us to keep investing in our programs, competitions, and in our on and off-court teams, which bodes well for our sport’s continued growth and future success. We thank all our members, Associations and Leagues, and Partners, for their role in enabling us to undertake this work and achieve such positive outcomes.

Financial Position

Financial Summary


Victorian Netball Association Inc.ABN: 83 704 752 745

Financial Statements

For the Year Ended 31 December 2016

Independent Audit Report

Victorian Netball Association Inc.

ABN: 83 704 752 745

ContentsFor the Year Ended 31 December 2016

Page

Financial StatementsStatement of Profit or Loss and Other Comprehensive Income 1Statement of Financial Position 2Statement of Changes in Equity 3Statement of Cash Flows 4Notes to the Financial Statements 5Directors' Declaration 14Independent Auditor's Report 15


ABN: 83 704 752 745

Statement of Profit or Loss and Other Comprehensive IncomeFor the Year Ended 31 December 2016

2016

$

2015

$

Revenue

Fundraising / grants 879,953 749,792

Memberships income 6,422,872 6,124,382

NV competitions & programs income 1,591,377 1,506,873

Sponsorship income 1,484,634 1,667,518

Vixens operations income 1,679,837 1,416,356

Other revenue 55,217 78,313

12,113,890 11,543,234

Expenses

NV employment expenses (4,284,877) (3,940,084)

Depreciation, amortisation and impairments (102,748) (111,670)

Administrative expenses (752,108) (749,227)

Bad debts - (1,463)

Marketing & sponsorship expenses (874,993) (1,136,862)

Profit/loss on sale of assets - (5,104)

Insurance (764,036) (754,129)

Sundry expenses (29,153) (40,051)

Vixens operations expense (1,728,874) (1,475,607)

NV competition & program expense (2,207,944) (1,969,599)

Building & facilities expense (621,044) (604,404)

NA affiliation expense (737,045) (744,199)

(12,102,822) (11,532,399)

Surplus for the year 11,068 10,835

Other comprehensive income

Revaluation change for property - 502,441

Other comprehensive income for the year - 502,441

Total comprehensive income for the year 11,068 513,276

The accompanying notes form part of these financial statements.1

Independent Audit Report



ABN: 83 704 752 745

Statement of Financial Position31 December 2016

Note

2016

$

2015

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 4 833,481 447,747

Trade and other receivables 5 68,201 103,052

Inventories 6 8,714 82,958

Other financial assets 7 1,606,115 1,990,474

Other assets 8 293,923 194,069

TOTAL CURRENT ASSETS 2,810,434 2,818,300

NON-CURRENT ASSETS

Property, plant and equipment 9 3,377,684 3,315,758

Other assets 8 4,125 -

TOTAL NON-CURRENT ASSETS 3,381,809 3,315,758

TOTAL ASSETS 6,192,243 6,134,058

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 10 438,496 581,837

Employee benefits 11 301,330 259,672

Income received in advance 12 684,932 545,096

TOTAL CURRENT LIABILITIES 1,424,758 1,386,605

NON-CURRENT LIABILITIES

Employee benefits 11 18,431 9,467

TOTAL NON-CURRENT LIABILITIES 18,431 9,467

TOTAL LIABILITIES 1,443,189 1,396,072

NET ASSETS 4,749,054 4,737,986

EQUITY

Asset revaluation reserve 1,749,192 1,749,192

Accumulated funds 2,999,862 2,988,794

TOTAL EQUITY 4,749,054 4,737,986



ABN: 83 704 752 745

Statement of Changes in EquityFor the Year Ended 31 December 2016

2016

AssetRevaluation

Reserve

$

AccummulatedFunds

$

Total

$

Balance at 1 January 2016 1,749,192 2,988,794 4,737,986

Surplus for the year - 11,068 11,068

Balance at 31 December 2016 1,749,192 2,999,862 4,749,054

2015

Balance at 1 January 2015 1,246,751 2,977,959 4,224,710

Increase in reserves during the year 502,441 - 502,441

Surplus for the year - 10,835 10,835

Balance at 31 December 2015 1,749,192 2,988,794 4,737,986


Independent Audit Report Independent Audit Report



ABN: 83 704 752 745

Statement of Cash FlowsFor the Year Ended 31 December 2016

Note

2016

$

2015

$

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers 12,236,001 11,331,134

Payments to suppliers and employees (12,122,528) (11,290,488)

Interest received 52,576 70,963

Net cash provided by operating activities 13 166,049 111,609

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property, plant and equipment (164,674) (39,138)

Payments for fixed interest deposits - (1,490,474)

Proceeds from fixed interest deposits 384,359 -

Net cash provided by/(used) in investing activities 219,685 (1,529,612)

Net increase / (decrease) in cash and cash equivalents held 385,734 (1,418,003)

Cash and cash equivalents at beginning of year 447,747 1,865,750

Cash and cash equivalents at end of financial year 4 833,481 447,747



ABN: 83 704 752 745

Notes to the Financial StatementsFor the Year Ended 31 December 2016

The financial statements cover Victorian Netball Association Inc. as an individual entity. Victorian Netball Association Inc. isa not-for-profit Association incorporated in Victoria under the Associations Incorporation Reform Act 2012 ('the Act') and theRules of the Victorian Netball Association Inc.

The principal activity of the Association for the year ended 31 December 2016 was the administration of netball in Victoria.

The functional and presentation currency of Victorian Netball Association Inc. is Australian dollars.

Comparatives are consistent with prior years, unless otherwise stated.

1 Basis of Preparation

In the opinion of the Board of Directors, the Association is not a reporting entity since there are unlikely to exist usersof the financial report who are not able to command the preparation of reports tailored so as to satisfy specifically all oftheir information needs. These special purpose financial statements have been prepared to meet the reportingrequirements of the Act.

The financial statements have been prepared in accordance with the recognition and measurement requirements ofthe Australian Accounting Standards and Accounting Interpretations, and the disclosure requirements of AASB 101Presentation of Financial Statements, AASB 107 Statement of Cash Flows, AASB 108 Accounting Policies, Changesin Accounting Estimates and Errors, AASB 1048 Interpretation of Standards and AASB 1054 Australian AdditionalDisclosures.

The financial report is prepared on the historical cost basis and, except where there is a change in accounting policydoes not take into account changing money values or current valuations of non-current assets. The accounting policiesset out below have been applied consistently to all periods presented in the Association's financial report, unlessotherwise stated.

2 Summary of Significant Accounting Policies

(a) Income Tax

The Association is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

(b) Leases

Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor,are charged as expenses on a straight-line basis over the life of the lease term.

(c) Trade receivables

Trade receivables are recognised at fair value and subsequently measured at amortised cost, less the provisionfor doubtful debts. Trade receivables are due for settlement no more than seven days from the date ofrecognition.

Collectibility of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectableare written off. A provision for doubtful receivables is established when there is objective evidence that theAssociation will not be able to collect all amounts due according to the original terms of the receivables. Theamount of provision is recognised in the statement of financial position.

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ABN: 83 704 752 745


2 Summary of Significant Accounting Policies (continued)

(d) Revenue and other income

Revenue is measured at the fair value of the consideration received or receivable and is presented net ofreturns, discounts and rebates.

All revenue is stated net of the amount of goods and services tax (GST).

Sale of goods

Revenue from sale of goods is recognised when the significant risks and rewards of ownership have beentransferred to the buyer.

Grant revenue

Government grants are recognised initially as deferred income where there is reasonable assurance that thegrant will be received and all grant conditions will be met. Grants relating to expense items are recognised asincome over the periods necessary to match the grant to the costs they are compensating. Grants relating toassets are credited to deferred income at fair value and are credited to income over the expected useful life ofthe asset on a straight-line basis.

Interest revenue

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to thefinancial assets.

Memberships and services revenue

Revenue from services rendered is recognised in proportion to the stage of completion of the transaction at thebalance sheet date.

Sponsorship

The Association receives sponsorships, with sponsorship monies recognised as earned.

Sponsorship funding has been expended into the event or program area for which it was allocated as amandatory requirement in the sponsorship agreement.

Revenue from in-kind sponsorship is recognised at fair value at the date of the contribution.

(e) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GSTincurred is not recoverable from the Australian Tax Office. In these circumstances, the GST is recognised aspart of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in thestatement of financial position are shown inclusive of GST.

(f) Inventories

Inventories are measured at the lower of cost and net realisable value. Cost of inventory is determined usingthe individual item basis and is net of any rebates and discounts received.

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ABN: 83 704 752 745



(g) Property, plant and equipment

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, anyaccumulated depreciation and impairment.

Where the cost model is used, the asset is carried at its cost less any accumulated depreciation and anyimpairment losses. Costs include purchase price, other directly attributable costs and the initial estimate of thecosts of dismantling and restoring the asset, where applicable.

Assets measured using the revaluation model are carried at fair value at the revaluation date less anysubsequent accumulated depreciation and impairment losses. Revaluations are performed whenever there is amaterial movement in the value of an asset under the revaluation model.

Land and buildings

Land and buildings are measured using the revaluation model.

Plant and equipment

Plant and equipment are measured using the cost model.

Depreciation

Property, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the assetsuseful life to the Association, commencing when the asset is ready for use.

Leased assets and leasehold improvements are amortised over the shorter of either the unexpired period of thelease or their estimated useful life.

The depreciation rates used for each class of depreciable asset are shown below:

Fixed asset class Depreciation rate

Buildings 2.5%

Plant and Equipment 10-40%

Leasehold Improvements 20%

At the end of each annual reporting period, the depreciation method, useful life and residual value of each assetis reviewed. Any revisions are accounted for prospectively as a change in estimate.

(h) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which arereadily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

Bank overdrafts also form part of cash equivalents for the purpose of the statement of cash flows and arepresented within current liabilities on the statement of financial position.

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ABN: 83 704 752 745



(i) Financial instruments

Financial instruments are recognised initially using trade date accounting, i.e. on the date that the Associationbecomes party to the contractual provisions of the instrument.

On initial recognition, all financial instruments are measured at fair value plus transaction costs (except forinstruments measured at fair value through profit or loss where transaction costs are expensed as incurred).

Financial Assets

Financial assets are divided into the following categories which are described in detail below:

loans and receivables;

financial assets at fair value through profit or loss;

available-for-sale financial assets; and

held-to-maturity investments.

Financial assets are assigned to the different categories on initial recognition, depending on the characteristicsof the instrument and its purpose. A financial instrument’s category is relevant to the way it is measured andwhether any resulting income and expenses are recognised in profit or loss or in other comprehensive income.

All income and expenses relating to financial assets are recognised in the statement of profit or loss and othercomprehensive income in the ‘finance income’ or ‘finance costs’ line item respectively.

Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixedmaturity. Investments are classified as held-to-maturity if it is the intention of the Association's management tohold them until maturity.

Held-to-maturity investments are subsequently measured at amortised cost using the effective interest method,with revenue recognised on an effective yield basis. In addition, if there is objective evidence that theinvestment has been impaired, the financial asset is measured at the present value of estimated cash flows.Any changes to the carrying amount of the investment are recognised in profit or loss.

(j) Employee benefits

Provision is made for the Association's liability for employee benefits arising from services rendered byemployees to the end of the reporting period. Employee benefits that are expected to be wholly settled withinone year have been measured at the amounts expected to be paid when the liability is settled.

Employee benefits expected to be settled more than one year after the end of the reporting period have beenmeasured at the present value of the estimated future cash outflows to be made for those benefits. Indetermining the liability, consideration is given to employee wage increases and the probability that theemployee may satisfy vesting requirements. Cashflows are discounted using market yields on high qualitycorporate bond rates incorporating bonds rated AAA or AA by credit agencies, with terms to maturity that matchthe expected timing of cashflows. Changes in the measurement of the liability are recognised in profit or loss.

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ABN: 83 704 752 745



(k) Licence agreement

On 1 July 2008, the Association entered into a licence agreement with the State Sport Centres Trust (SSCT) forthe use of the State Netball and Hockey Centre for three years. This has been renewed for future periods, nowexpiring 30 June 2017. The licence fee payable is $520,000 per annum.

The Association does not collect any revenue directly from the State Netball and Hockey Centre, as the SSCTacts as an agent and collects all revenues on the Association's behalf.

The Association has a legal obligation to make good to the SSCT any shortfall arising from the licence feepayable of $520,000 per annum. This legal obligation is disclosed in Note 16(b) to the financial statements.

3 Critical Accounting Estimates and Judgments

The directors make estimates and judgements during the preparation of these financial statements regardingassumptions about current and future events affecting transactions and balances.

These estimates and judgements are based on the best information available at the time of preparing the financialstatements, however as additional information is known then the actual results may differ from the estimates.

The estiimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates arerecognised in the period in which the estimate is revised if the revision affects only that period or in the period of therevision and future periods if the revision affects both current and future periods.

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ABN: 83 704 752 745


4 Cash and Cash Equivalents

2016

$

2015

$

Cash on hand 800 700

Bank balances 829,721 447,047

Other cash and cash equivalents 2,960 -

833,481 447,747

Reconciliation of cash

Cash and Cash equivalents reported in the statement of cash flows are reconciled to the equivalent items in thestatement of financial position as follows:

Cash and cash equivalents 833,481 447,747

5 Trade and Other Receivables

CURRENT

Trade receivables 68,201 96,404

GST receivable - 6,648

68,201 103,052

6 Inventories

CURRENT

At cost:

Inventories - at cost 8,714 82,958

7 Other financial assets

CURRENT

Held-to-maturity financial assets - Fixed interest term deposits 1,606,115 1,990,474

8 Other Assets

CURRENT

Prepayments 188,680 145,266

Accrued income 105,243 48,803

293,923 194,069

NON-CURRENT

Security deposit 4,125 -

10


ABN: 83 704 752 745


9 Property, plant and equipment

2016

$

2015

$

LAND AND BUILDINGS

Freehold land

At independent valuation 2,075,000 2,075,000

Buildings

At independent valuation 1,100,000 1,100,000

Accumulated depreciation (27,500) -

Total buildings 1,072,500 1,100,000

Total land and buildings 3,147,500 3,175,000

PLANT AND EQUIPMENT

Plant and equipment

At cost 456,994 416,558

Accumulated depreciation (327,625) (275,800)

Total plant and equipment 129,369 140,758

Leasehold Improvements

At cost 110,078 -

Accumulated amortisation (9,263) -

Total leasehold improvements 100,815 -

Total property, plant and equipment 3,377,684 3,315,758

A revaluation of the land and buildings was completed in October 2015, performed by Charter Keck Cramer. Theindependent valuation determined that the fair value of the land and buildings was $3,175,000. The directorssubsequently adopted the new valuation which was recorded as at 31 December 2015.

10 Trade and Other Payables

CURRENT

Unsecured liabilities

Trade payables 117,890 286,432

GST payable 11,088 -

Accrued expenses 17,478 52,703

Jean Cowan bequest 12,080 -

Accrued wages, superannuation and PAYG 279,960 242,702

438,496 581,837

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ABN: 83 704 752 745


11 Employee Benefits

2016

$

2015

$

Current liabilities

Annual leave 242,871 205,518

Long service leave 58,459 54,154

301,330 259,672

Non-current liabilities

Long service leave 18,431 9,467

12 Income Received In Advance

CURRENT

Grants received in advance 283,765 75,000

Income received in advance 401,167 470,096

684,932 545,096

13 Cash Flow Information

Reconciliation of result for the year to cashflows from operating activities

Surplus for the year 11,068 10,835

Non-cash flows in profit:

- depreciation 102,748 111,670

Changes in assets and liabilities:

- (increase)/decrease in trade and other receivables 34,851 (6,020)

- (increase)/decrease in other assets (103,979) (50,303)

- (increase)/decrease in inventories 74,244 50,498

- increase/(decrease) in income in advance 139,836 (113,709)

- increase/(decrease) in trade and other payables (143,341) 41,889

- increase/(decrease) in employee benefits 50,622 66,749

Cashflow from operating activities 166,049 111,609

14 Contingencies

In the opinion of the Board of Directors, the Association did not have any contingencies at 31 December 2016(31 December 2015: None).

15 Related Parties

Some directors are occasionally engaged to conduct or participate in courses and/or programs. They are reimbursedat the same rate as any other person(s) engaged in a similar activity.

12


ABN: 83 704 752 745


16 Capital and Leasing Commitments

(a) Operating Leases

2016

$

2015

$

Minimum lease payments under non-cancellable operating leases:

- not later than one year 95,338 51,162

- between one year and five years 172,480 93,359

- later than five years - -

267,818 144,521

Operating leases have been have been taken out for an office building, photocopier and coffee machine. Leasepayments are increased on an annual basis to reflect market rentals.

(b) Contracted Commitments

State Sport Centres Trust

Licence fee payable 260,000 780,000

On 1 July 2008, the Association entered into a licence agreement with the State Sport Centres Trust for the useof the State Netball and Hockey Centre for three years expiring on 30 June 2011, the agreement was furtherrenewed for a period of three year expiring on 30 June 2014. This agreement has been further renewed andnow expires on 30 June 2017.

The Association did not record a shortfall in the previous year and does not expect to incur a shortfall in thenext 12 months.

17 Auditors' Remuneration

Remuneration of the auditor of the association for:

- auditing the financial statements 18,000 18,000

- other services 1,000 2,100

19,000 20,100

Other services include the audit of a government grant.

18 Events after the end of the Reporting Period

No matters or circumstances have arisen since the end of the financial year which significantly affected or maysignificantly affect the operations of the Association, the results of those operations or the state of affairs of theAssociation in future financial years.

19 Association Details

The registered office and principal place of business of the association is:


487 King Street

West Melbourne VIC 3003

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2016 Netball Victoria Financial Report24

Netball Victoria 487 King Street West Melbourne Victoria 3003

P: 03 9321 2222 F: 03 9321 2233

netballvic.com.au melbournevixens.com.au

/NetballVic /MelbourneVixens

@NetballVictoria @MelbourneVixensOfficial

@NetballVictoria @MelbourneVixens

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