sunbury community health centre limited...bruce marshall rachel strevens georgina dougall principal...

2016‐XX Report Title 1

Sunbury Community Health Centre Limited

Trading as:

- Sunbury Community Health - Sunbury Lions Community Aged Care

- Our Village Family Childcare

ABN: 32 084 682 579

Financial Statements 30 June 2019

30 June 2019

CONTENTS Page

Directors' Report 1

Auditor's Independence Declaration 4

Statement of Profit or Loss and Other Comprehensive Income 5

Statement of Financial Position 6

Statement of Changes in Equity 7

Statement of Cash Flows 8

Notes to the Financial Statements 9

Directors' Declaration 30

Independent Audit Report 31

Sunbury Community Health Centre Ltd

Directors

Peter Donlon (Chairperson)

Janelle Parry (Deputy Chairperson)

Mary Rush

Matthew Stewart

Bruce Marshall

Rachel Strevens

Georgina Dougall

Principal Activities

Business Objectives

Review of Operations

Year ended Year ended

30 June 2019 30 June 2018

$ $

91,737 458,889

Sunbury Community Health Centre Ltd Directors' ReportYour directors present their report of the Sunbury Community Health Centre Ltd for the year ended 30 June 2019.

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Performance Measurement

The principal activities of the company during the course of the financial year were in providing health and welfare services

to the communities within the Hume and surrounding local government areas.

The names of each person who has been a director during the year and to the date of this report are:

Operations have continued to perform in line with expectations.

The company's short term objectives are to provide high quality and sustainable health and community services to the local

community. The company's long term objectives are to build the social fabric of the community through programs that help

people support themselves and each other.

The surplus of the company for the financial year ended 30 June 2019 after provision for income tax was:

The company measures its own performance through the use of quantitative and qualitative objectives. The achievement

of objectives are used by the directors to assess the financial and service provision performance of the company and

whether the company’s short‐term and long‐term objectives are being achieved.

Significant Changes in the State of Affairs

Events Subsequent to the End of the Reporting Period

In the opinion of the directors, there were no significant changes in the state of affairs of the company that occurred during

the financial year under review not otherwise disclosed in this report or the financial statements.

No other matters or circumstances have arisen since the end of the financial year which affected or may significantly affect

the operations of the company, the results of those operations or the state of affairs of the company, in future years.

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Sunbury Community Health Centre Ltd Directors' Report

Environmental Issues

Directors' Benefits

Indemnification and Insurance of Directors and Officers

Proceedings on Behalf of the Entity

Information on Directors

Peter Donlon

Qualifications ‐ Bachelor of Science, Associate Diploma of Computing, MAICD

Special Responsibilities ‐

Janelle Parry

Qualifications ‐ CPA, Bachelor of Business (Accountancy)


Mary Rush

Qualifications ‐ Bachelor of Business (Management)


Matthew Stewart

Qualifications ‐

Special Responsibilities ‐ Board Member, Nominations Committee

Bruce Marshall

Qualifications ‐


Chairperson, Clinical Governance & Risk Sub‐committee, Nominations

Committee

Board Member, Nominations Committee, Clinical Governance & Risk Sub‐

committee

Board Member, Nominations Committee, Investment Strategy Sub‐

committee, Clinical Governance & Risk Sub‐committee

ACEcD, Bachelor of Business (Marketing), Diploma of Management,

Graduate Diploma of Education (Secondary)

Bachelor of Health Science, Post Graduate Diploma of Nursing Management,

Registered Nurse Division 1

Deputy Chairperson, Nominations Committee, Investment Strategy Sub‐

committee, Clinical Governance & Risk Sub‐committee (Chairperson)

No person has applied for leave of Court to bring proceedings on behalf of the entity or intervene in any proceedings to

which the entity is a party for the purpose of taking responsibility on behalf of the entity for all or any part of those

proceedings. The entity was not a party to any such proceedings during the year.

No director has received or become entitled to receive, during or since the financial year, a benefit because of a contract

made by the company, controlled entity or related body corporate with a director, a firm which a director is a member or

an entity in which a director has a substantial financial interest except as disclosed in Note 17 to the financial statements.

This statement excludes a benefit included in the aggregate amount of emoluments received or due and receivable by

directors shown in the company's accounts, or the fixed salary of a full‐time employee of the company, controlled entity or

related body corporate.

The company has not provided any insurance for an auditor of the company or a related body corporate.

The company has indemnified all directors and officers in respect of liabilities to other persons (other than the company or

related body corporate) that may arise from their position as directors or officers of the company except where the liability

arises out of conduct involving the lack of good faith.

The company is not subject to any significant environmental regulation.

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Sunbury Community Health Centre Ltd Directors' ReportInformation on Directors (continued)

Rachel Strevens

Qualifications ‐


Georgina Dougall

Qualifications ‐

Special Responsibilities ‐ Board Member, Nominations Committee

Meeting of Directors

During the financial year, 11 meetings of directors were held. Attendances by each director were as follows:

Peter Donlon (Chairperson)

Janelle Parry (Deputy Chairperson)

Mary Rush

Matthew Stewart

Bruce Marshall

Rachel Strevens

Georgina Dougall

Company Secretary

Members' Guarantee

Auditors' Independence Declaration

The directors' report is signed in accordance with a resolution of the board of directors.

Peter Donlon Janelle Parry

Chairperson Deputy Chairperson

Dated this XXth day of Xxxxxxxxxx 2019

Board Member, Nominations Committee, Chairperson Investment Strategy

Sub‐committee

GAICD, Certificate IV Assessment and Workplace Training, Diploma of

Business Management, Bachelor of Arts (Recreation), Graduate Diploma of

Education, Post Graduate Diploma of Education (Health Education)

GAICD, CPA, Bachelor of Arts, Master of Commerce

The lead auditor's independence declaration for the year ended 30 June 2019 has been received and can be found on page

4 of the financial reports.

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811

The position of Company Secretary was held by Shelly Clancy for the financial year.

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11 5

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911

The entity is incorporated under the Corporations Act 2001 and is a company limited by guarantee. The entity is registered

with the Australian Securities and Investments Commission as well as the Australian Charities and Not‐for‐profits

Commission. If the company is wound up, the constitution states that each member is required to contribute a maximum of

$10 each towards meeting any outstanding obligations of the entity. At 30 June 2019 the number of members was 39

(2018: 34).

Director's Meetings

Eligible to attend Attended

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Lead auditor’s independence declaration under section 60‐40 of the Australian Charities and Not‐for‐profits Commission Act 2012 to the directors of Sunbury Community Health Centre Limited As lead auditor for the audit of Sunbury Community Health Centre Limited for the year ended 30 June 2019, I declare that, to the best of my knowledge and belief, there have been: i) no contraventions of the auditor independence requirements of the Australian Charities and Not‐for‐

profits Commission Act 2012 in relation to the audit and ii) no contraventions of any applicable code of professional conduct in relation to the audit.

Andrew Frewin Stewart Adrian Downing 61 Bull Street, Bendigo Vic 3550 Lead Auditor Dated this 24th day of October 2019

2019 2018

Note $ $

Revenue 2 12,477,640 10,418,215

Other income 2 3,833,734 3,913,265

Employee benefits expense 3 (13,265,548) (11,447,795)

Depreciation and amortisation expense 3 (340,901) (311,691)

Finance expenses 3 (7,983) (2,599)

Utilities expenses (204,047) (175,018)

Motor vehicle expenses (72,231) (56,783)

Audit, accreditation, legal and consultancy fees (218,832) (149,907)

Staff training and development expenses (187,129) (212,286)

Client support services expenses (434,198) (502,718)

General medical supplies (307,203) (310,911)

External dental providers (590,514) (223,459)

Repairs and maintenance (184,213) (155,303)

Other expenditure (406,838) (324,121)

Surplus before income tax expense 91,737 458,889

Income tax expense 1(b) ‐ ‐

Surplus after income tax expense 91,737 458,889

Other comprehensive income ‐ ‐

Total comprehensive income attributable to members of the entity 91,737 458,889

For the Year Ended 30 June 2019

Statement of Profit or Loss and Other Sunbury Community Health Centre Ltd

Comprehensive Income

The accompanying notes form part of these financial statements| 5

2019 2018

Note $ $

Current assets

Cash and cash equivalents 4 3,793,844 5,903,371 Trade and other receivables 5 707,865 369,939 Inventories 6 31,523 37,340 Other assets 7 111,208 92,318

Total current assets 4,644,440 6,402,968

Non‐current assets

Investments 8 1,575,069 ‐ Property, plant and equipment 9 8,226,347 8,099,736

Total non‐current assets 9,801,416 8,099,736

Total assets 14,445,856 14,502,704

Current liabilities

Trade and other payables 10 3,555,049 3,890,541 Provisions 11 1,857,484 1,661,944

Total current liabilities 5,412,533 5,552,485

Non‐current liabilities

Provisions 11 590,226 598,859

Total non‐current liabilities 590,226 598,859

Total liabilities 6,002,759 6,151,344

Net assets 8,443,097 8,351,360

Equity

Retained earnings 6,735,293 6,643,556 Asset revaluation reserve 19 1,527,804 1,527,804 Asset replacement reserve 19 180,000 180,000

Total equity 8,443,097 8,351,360

Sunbury Community Health Centre Ltd Statement of Financial Position As at 30 June 2019


$ $ $ $

Balance at 1 July 2017 6,184,667 1,527,804 180,000 7,892,471

Surplus for the year 458,889 ‐ ‐ 458,889

Other comprehensive income for the year ‐ ‐ ‐ ‐

Balance at 30 June 2018 6,643,556 1,527,804 180,000 8,351,360

Balance at 1 July 2018 6,643,556 1,527,804 180,000 8,351,360

Surplus for the year 91,737 ‐ ‐ 91,737

Other comprehensive income for the year ‐ ‐ ‐ ‐

Balance at 30 June 2019 6,735,293 1,527,804 180,000 8,443,097

Total comprehensive income for the year attributable

to members of the entity91,737 ‐ ‐ 91,737

458,889 458,889 ‐ ‐ Total comprehensive income for the year attributable

to members of the entity

Sunbury Community Health Centre Ltd Statement of Changes in Equity For the Year Ended 30 June 2019

Retained

Earnings

Asset

Revaluation

Reserve

Asset

Replacement

Reserve Total Equity


2019 2018

Note $ $

Cash flows from operating activities

Receipts from clients and government grants 13,775,797 10,712,173 Receipts from donations, reimbursements and rentals 489,287 535,766 Receipts from customer fees 3,314,371 3,377,499 Payments to suppliers and employees (17,020,646) (13,324,104)Interest received 95,754 94,284 Dividends received 30,076 ‐

Net cash provided by operating activities 12 684,639 1,395,618

Cash flows from investing activities

Payments for property, plant and equipment (467,512) (1,504,749)Receipts of refundable accommodation bonds 8,502 115,456 Refunds of refundable accommodation bonds (728,736) (7,817)Payments for purchase of investments (1,606,420) ‐

Net cash used in investing activities (2,794,166) (1,397,110)

Net decrease in cash held (2,109,527) (1,492)

Cash and cash equivalents at the beginning of the financial year 5,903,371 5,904,863

Cash and cash equivalents at the end of the financial year 4 3,793,844 5,903,371

Sunbury Community Health Centre Ltd Statement of Cash flowsFor the Year Ended 30 June 2019


Basis of Preparation

(a) Revenue

‐

‐

The financial statements were authorised for issue on 24 October 2019 by the directors of the company.

When grant revenue is received whereby the entity incurs an obligation to deliver economic value directly back to the

contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial

position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on

receipt.

Sunbury Community Health Centre Ltd Notes to the Financial StatementsFor the Year Ended 30 June 2019

The financial statements cover Sunbury Community Health Centre Ltd as an individual entity, incorporated and domiciled in

Australia. Sunbury Community Health Centre Ltd is a company limited by guarantee.

Note 1. Summary of Significant Accounting Policies

Sunbury Community Health Centre Ltd applies Australian Accounting Standards – Reduced Disclosure Requirements as set out

in AASB 1053: Application of Tiers of Australian Accounting Standards.

Interest revenue is recognised using the effective interest method, which for floating rate financial assets is the rate inherent

in the instrument. Donations and bequests are recognised as revenue when received.

The financial statements are general purpose financial statements that have been prepared in accordance with Australian

Accounting Standards – Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB) and the

Australian Charities and Not‐for‐profits Commission Act 2012. The company is a not‐for‐profit entity for financial reporting

purposes under Australian Accounting Standards.

Client income and revenue from the rendering of a service is recognised upon the delivery of the service to the customers.

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

a Refundable Accommodation Deposit (RAD) to the Residential Aged Care Facility which is repaid to the residents when

they leave the Residential Aged Care Facility or to their estates on their death. The Residential Aged Care Facility is

entitled to accrue any interest earned on the investment of the RAD's; or

to the Residential Aged Care Facility an amount as negotiated as a daily fee.

Revenue from the residential aged care facility is recognised when due and receivable from the Department of Health. This

funding is linked to the number of residents subject to care at the Aged Care Facility, their levels of required care and needs

and their respective levels of personal assets. It is reduced for residents with personal assets above a specified level set by the

Government. These residents are required either to pay:

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements

containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted

in the preparation of these financial statements are presented below and have been consistently applied unless stated

otherwise.

If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the recognition

of the grant as revenue will be deferred until those conditions are satisfied.

Non‐reciprocal grant revenue is recognised in profit or loss when the entity obtains control of the grant and it is probable that

the economic benefits gained from the grant will flow to the entity and the amount of the grant can be measured reliably.

The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on

historical costs, modified, where applicable, by the measurement at fair value of selected non‐current assets, financial assets

and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar.

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(b) Income Tax

(c) Cash and Cash Equivalents

(d) Trade and Other Receivables

(e) Property, Plant and Equipment

Property

Plant and Equipment

No provision for income tax has been raised as the entity is exempt from income tax under Division 50 of the Income Tax

Assessment Act 1997.

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the

net amount is restated to the revalued amount of the asset.

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short‐term highly liquid investments

with original maturities of six months or less, and bank overdrafts.

Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost using the

effective interest method, less any provision for impairment.

Trade and other receivables includes amounts due from customers for services performed in the ordinary course of business.

All receivables are classified as current assets.

Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any

accumulated depreciation and impairment losses.

Increases in the carrying amount arising on revaluation of land and buildings are recognised in other comprehensive income

and accumulated in the revaluation surplus in equity. Revaluation decreases that offset previous increases of the same class of

asset shall be recognised in other comprehensive income under the heading of revaluation surplus. All other decreases are

charged to the statement of profit or loss and other comprehensive income. As the revalued buildings are depreciated, the

difference between depreciation recognised in the statement of profit or loss and other comprehensive income, which is

based on the revalued carrying amount of the asset, and the depreciation based on the asset's original cost is transferred

from the revaluation surplus to retained earnings.

Plant and equipment are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any

accumulated impairment losses. In the event the carrying amount of plant and equipment is greater than its estimated

recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment

losses are recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A

formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1 (g) for details of

impairment).

Plant and equipment that have been contributed at no cost, or for nominal cost, are valued and recognised at the fair value of

the asset at the date it is acquired.

Freehold land and buildings that have been contributed at no cost, or for nominal cost, are valued and recognised at the fair

value of the asset at the date it is acquired.

Note 1. Summary of Significant Accounting Policies (continued)

Freehold land and buildings are shown at their fair value based on periodic, but at least every three years, valuations by

external independent valuers, less subsequent depreciation for buildings.

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(e) Property, Plant and Equipment (continued)

Class of Fixed Asset Depreciation Rate

Buildings 2.5‐5%

Improvements 10‐20%

Plant and equipment 10‐30%

Motor vehicles 15‐20%

Furniture & fittings 10‐20%

(f) Financial Instruments

(i) Financial liabilities

The depreciable amount of all fixed assets, excluding freehold land, is depreciated on a straight line basis over the asset's

useful life to the company commencing from the time the asset is held ready for use.

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.


Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are

included in the income statement. When revalued assets are sold, amounts included in the revaluation reserve relating to that

asset are transferred to retained earnings.

Depreciation

Financial liabilities are subsequently measured at amortised cost using the effective interest method. The company does not

utilise derivative financial instruments and has no financial liabilities designated at fair value through profit or loss.

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest

expense in profit or loss over the relevant period.

The depreciation rates used for each class of depreciable assets are:

Initial recognition and measurement

Classification and subsequent measurement

Financial instruments (except for trade receivables) are initially measured at fair value plus transaction costs, except where

the instrument is classified "at fair value through profit or loss", in which case transaction costs are expensed to profit or loss

immediately. Where available, quoted prices in an active market are used to determine fair value. In other circumstances,

valuation techniques are adopted.

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the

instrument. For financial assets, this is the date that the entity commits itself to either the purchase or sale of the asset (ie

trade date accounting is adopted).

A financial liability cannot be reclassified.

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(f) Financial Instruments (continued)

(ii) Financial assets

‐

‐

‐

‐

‐

‐

(i) Derecognition of financial liabilities

(ii) Derecognition of financial assets

‐

‐

‐

The company does not measure any financial assets at fair value through other comprehensive income.

fair value through profit and loss

the financial asset is managed solely to collect contractual cash flows; and

the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest

on the principle amount outstanding on specified dates.

A liability is derecognised when it is extinguished (ie when the obligation in the contract is discharged, cancelled or expires).

An exchange of an existing financial liability for a new one with substantially modified terms, or a substantial modification to

the terms of a financial liability, is treated as an extinguishment of the existing liability and recognition of a new financial

liability.

The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable,

including any non‐cash assets transferred or liabilities assumed, is recognised in profit or loss.

All the following criteria need to be satisfied for derecognition of a financial asset:

By default, all other financial assets that do not meet the conditions of amortised cost are subsequently measured at fair value

through profit and loss.

On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount and the

sum of the consideration received and receivable is recognised in profit or loss.

The initial designation of the financial instruments to measure at fair value through profit and loss is a one‐time option on

initial classification and is irrevocable until the financial asset is derecognised.

amortised cost;

Financial assets are subsequently measured at:

on the basis of the two primary criteria:

A financial asset is subsequently measured at amortised cost if it meets the following conditions:

Derecognition

the right to receive cash flows from the asset has expired or been transferred;

the contractual cash flow characteristics of the financial asset; and

the business model for managing the financial assets.

A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or the asset is transferred in

such a way that all the risks and rewards of ownership are substantially transferred.


the entity no longer controls the asset (ie no practical ability to make unilateral decision to sell the asset to a third party).

all risk and rewards of ownership of the asset have been substantially transferred; and

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(f) Financial Instruments (continued)

‐

‐

‐

‐

‐

‐

‐

Recognition of expected credit losses in financial statements

(g) Impairment of Assets

At the end of each reporting period, the company assesses whether there is any indication that an asset may be impaired. The

assessment will include considering external sources of information and internal sources of information including dividends

received from subsidiaries, associates or jointly controlled entities deemed to be out of pre‐acquisition profits.

Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable

amount of the cash‐generating unit to which the asset belongs.

The provision for expected credit losses is not considered material to the financial statements.

If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset,

being the higher of the asset's fair value less costs to sell and value in use, to the asset's carrying amount. Any excess of the

asset's carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a

revalued amount. Any impairment loss of a revalued asset is treated as a revaluation decrease.

The entity uses the simplified approach to impairment, as applicable under AASB 9, which is applicable to trade receivables.


The entity recognises a loss allowance for expected credit losses on:

financial assets measured at fair value through profit or loss; or

The carrying amount of financial assets measured at amortised cost includes the loss allowance relating to that asset.

equity instruments measured at fair value through other comprehensive income.

At each reporting date, the entity recognises the movement in the loss allowance as an impairment gain or loss in the

statement of profit or loss and other comprehensive income.

The simplified approach does not require tracking of changes in credit risk at every reporting period, but instead requires the

recognition of lifetime expected credit loss at all times.

In measuring the expected credit loss, a provision matrix for trade receivables is used, taking into consideration various data

to get to an expected credit loss, (ie diversity of its customer base, appropriate groupings of its historical loss experience etc).

contract assets (eg amount due from customers under construction contracts);

loan commitments that are not measured at fair value through profit or loss.

Impairment

lease receivables;

financial assets that are measured at amortised cost or fair value through other comprehensive income;

Expected credit losses are the probability‐weighted estimate of credit losses over the expected life of a financial instrument. A

credit loss is the difference between all contractual cash flows that are due and all cash flows expected to be received, all

discounted at the original effective interest rate of the financial instrument.

Loss allowance is not recognised for:

financial guarantee contracts that are not measured at fair value through profit or loss.

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Summary of Significant Accounting Policies (continued)

(h) Employee Benefits

(i) Trade and Other Payables

(j) Provisions

(k) Goods and Services Tax (GST)

(l) Comparative Figures

(m) Critical Accounting Estimates and Judgements

Provision is made for the company’s liability for employee benefits arising from services rendered by employees to the end of

the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts

expected to be paid when the liability is settled, plus related on‐costs. Employee benefits payable later than one year have

been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the

liability, consideration is given to employee wage increases and the probability that the employee may not satisfy vesting

requirements. Those cash flows are discounted using market yields on national government bonds with terms to maturity that

match the expected timing of cash flows.

Trade and other payables represent the liabilities for goods and services received by the entity that remain unpaid at the end

of the reporting period. The balance is recognised as a current liability with the amounts normally paid within 30 to 60 days of

recognition of the liability.

Note 1.

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not

recoverable from the Australian Tax Office (ATO).

Cash flows are presented in the cash flow statement on a gross basis. The GST component of cash flows arising from investing

and financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in

receipts from customers or payments to suppliers.

Comparative figures have been adjusted to conform to changes in presentation for the current financial year where required

by accounting standards or as a result of changes in accounting policy.

Provisions are recognised when the company has a legal or constructive obligation, as a result of past events, for which it is

probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions are measured

using the best estimate of the amounts required to settle the obligation at the end of the reporting period.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable

from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to

suppliers.

The director's evaluate estimates and judgements incorporated into the financial statements based on historical knowledge

and best available current information. Estimates assume a reasonable expectation of future events and are based on current

trends and economic data, obtained both externally and within the company.

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(m) Critical Accounting Estimates and Judgements (continued)

Key Estimates

(i) Impairment

Key Judgements

(i) Provision for impairment of receivables

(n) Economic Dependence

(o) Fair Value of Assets and Liabilities

Sunbury Community Health Centre Ltd is dependent upon the State of Victoria, via the Department of Health and Human

Services, for the funding of a significant proportion of its operations. At the date of this report the Board of Directors has no

reason to believe the Department will not continue to support Sunbury Community Health Centre Ltd.

As fair value is a market‐based measure, the closest equivalent observable market pricing information is used to determine

fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. The

fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation

techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.

"Fair value" is the price the company would sell an asset or would have to pay to transfer a liability in an orderly (i.e. unforced)

transaction between independent, knowledgeable and willing market participants at the measurement date.

The company assesses impairment at each reporting period by evaluating the conditions and events specific to the company

that may be indicative of impairment triggers. Where an impairment trigger exists, the recoverable amount of the asset is

determined. Value‐in‐use calculations performed in assessing the recoverable amounts incorporate a number of key

estimates.

The company measures some of its assets and liabilities at fair value either on a recurring or non‐recurring basis, depending

on the requirements of the applicable Accounting Standards.

For non‐financial assets, the fair value measurement also takes into account a market participant's ability to use the asset in

its highest and best use or to sell it to another market participant that would use the asset in its highest and best use.

The fair value of liabilities and the entity's own equity instrument (if any) may be valued, where there is no observable market

price in relation to the transfer of such financial instrument, by reference to observable market information where such

instruments are held as assets. Where this information is not available, other valuation techniques are adopted and where

significant, are detailed in the respective note to the financial statements.

To the extent possible, market information is extracted from the principal market for the asset or liability (i.e. market with the

greatest volume and level of activity for the asset or liability). In the absence of such a market, market information is extracted

from the most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises

the receipts from the sale of the asset and minimises the payments made to transfer the liability, after taking into account

transaction costs and transport costs).

Note 1.

Current trade receivables are generally on 30‐day terms. In measuring the expected credit loss, a provision matrix for trade

receivables is used, taking into consideration various data to get to an expected credit loss. The provision for expected credit

losses is not considered material to the financial statements and as such a provision had not been recorded in the financial

statements.

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(o) Fair Value of Assets and Liabilities (continued)

(p) Inventories

(q) New and Amended Accounting Standards Adopted by the Company

(r) New Accounting Standards for Application in Future Periods

‐

The entity owns a number of bed licences. Currently these bed licences are valued at nil, however as there is now a more

active market than before the company will be obtaining a valuation of the licences in the near future. The directors have

assessed the bed licences and believe the nil carrying value is accurate at 30 June 2019.

Inventories are measured at the lower of cost and current replacement cost. Inventories acquired at no cost or for nominal

consideration are measured at current replacement cost as at the date of acquisition.

Since the adoption of AASB 9 has had no material impact on the company's financial statements, accounting policies applied in

the preparation of comparatives in accordance with AASB 139 have not been disclosed.

AASB 9: Financial Instruments

AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement. It makes major

changes to the previous guidance on the classification and measurement of financial assets and introduces an ‘expected credit

loss’ model for impairment of financial assets.

Note 1.

The core principle of the Standard is that an entity will recognise revenue to depict the transfer of promised goods or

services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange

for the goods or services.

The impact of accounting standards and interpretations issued by the AASB that are mandatory applicable to the company

during the current reporting period and the impact of adoption is discussed below:

When adopting AASB 9, the company has applied transitional relief and opted not to restate prior periods. There were no

material differences arising from the adoption of AASB 9 in relation to classification, measurement, and impairment of

financial assets and liabilities. In addition, as the company does not apply hedge accounting, an adjustment to opening

retained earnings as at 1 July 2018 was not required.

AASB 15: Revenue from Contracts with Customers (December 2014) and associated amending Standards (applicable for

annual reporting periods commencing on or after 1 January 2019). Early application is permitted.

When effective, this Standard will replace the current accounting requirements applicable to revenue with a single,

principles‐based model. Apart from a limited number of exceptions, including leases, the new revenue model in AASB 15

will apply to all contracts with customers as well as non‐monetary exchanges between entities in the same line of

business to facilitate sales to customers and potential customers.

An assessment of accounting standards and interpretations issued by the AASB that are not yet mandatory applicable to the

company and their potential impact on the company when adopted in future periods is discussed below:

| 16



(r) New Accounting Standards for Application in Future Periods (continued)

‐

‐

‐

‐

‐

‐

(a)

(b) Assets and liabilities arising from a lease are initially measured on a present value basis. The measurement

includes non‐cancellable lease payments (including inflation‐linked payments), and also includes payments to be

made in optional periods if the lessee is reasonably certain to exercise an option to extend the lease, or not to

exercise an option to terminate the lease.

Step 5: Recognise revenue when (or as) the company satisfies a performance obligation.

The key features of AASB 16 are as follows:

To achieve this objective, AASB 15 provides the following five‐step process:

Management has performed a preliminary assessment and believe the accounting for government grants may be

primarily impacted by the adoption of AASB 15. The income recognition for each grant will be assessed on a high level

basis to determine whether it is enforceable and whether it's performance obligations are sufficiently specific. For grant

agreements that are not enforceable or the performance obligations are not sufficiently specific, this will result in

immediate income recognition under AASB 1058. Income will be deferred under AASB 15 otherwise.

Management believe the majority of performance obligations associated with grant funding received from the

Department of Health and Human Services during the year ended 30 June 2020 will be satisfied in the same reporting

period. In addition, management believe 8% of 2019/20 budgeted income, representing approximately $1,444,747, will

relate to funding received from other parties where there are sufficiently specific performance obligations that need to

be satisfied. Of this funding, management believe the likelihood of the company not satisfying such obligations at 30 June

2020 is estimated to be 25% of funding received, being approximately $361,000 in contract liabilities as at 30 June 2020.

Management do not believe the adoption of AASB 15 will have a material impact on the company's financial statements

as the majority of its performance obligations will be satisfied in the financial year funding is received.

Note 1.

Lessees are required to recognise assets and liabilities for all leases with a term of more than 12 months, unless

the underlying asset is of low value.

Step 4: Allocate the transaction price to the performance obligations in the contract

The transitional provisions of this Standard permit an entity to either: restate the contracts that existed in each prior

period presented per AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors (subject to certain

practical expedients in AASB 15), or recognise the cumulative effect of retrospective application to incomplete contracts

on the date of initial application. There are also enhanced disclosure requirements regarding revenue.

The directors have assessed the impact of adopting AASB 16 and do not expect adoption to have a material impact on

the company's financial statements. This is because the company's leasing arrangements are limited to low‐value

equipment such as photocopiers which are not considered material leasing commitments.

Step 3: Determine the transaction price

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligations in the contract

AASB 16: Leases (February 2016) and associated amending Standards (applicable for annual reporting periods

commencing on or after 1 January 2019). Early application is permitted, provided the new revenue standard, AASB 15

Revenue from Contracts with Customers, has been applied, or is applied at the same date as AASB 16.

| 17



(r) New Accounting Standards for Application in Future Periods (continued)

‐

‐

‐

2019 2018

Revenue and Other Income $ $

Revenue:

Revenue from government grants and other grants:

‐ Revenue from government grants and other grants 12,381,886 10,323,931

‐ Interest received on financial assets 95,754 94,284

12,477,640 10,418,215

Other income:

‐ Donations & reimbursements 12,603 27,211

‐ Auspice fee 38,650 37,673

‐ Rental income 438,034 470,882

‐ Dividends received 30,076 ‐

‐ Other revenue 3,314,371 3,377,499

3,833,734 3,913,265

Total revenue and other income 16,311,374 14,331,480

Significant Revenue and Expenditure

‐ Committed grants 322,038 236,628

322,038 236,628

Note 2.

Note 3.

(a) Revenue

Other revenue:

Of the grant revenue received and recognised as retained earnings, the

following funds are committed to be spent in future years:

This Standard is applicable to transactions that do not arise from enforceable contracts with customers involving

performance obligations. This standard will apply to any income that is not captured by AASB 15: Revenue from

Contracts with Customers. The significant accounting requirements of AASB 1058 are as follows:

AASB 1058: Income of Not‐for‐Profit Entities (applicable to annual reporting periods beginning on or after 1 January

2019).

Income arising from an excess of the initial carrying amount of an asset over the related contributions by owners,

increases in liabilities, decreases in assets and revenue should be immediately recognised in profit or loss.

Liabilities should be recognised for the excess of the initial carrying amount of a financial asset over any related

amounts recognised in accordance with the applicable Standards.

Note 1.

The directors have assessed the impact of adopting AASB 1058 and do not expect adoption to have a material impact on

the company's financial statements.

| 18


2019 2018

Significant Revenue and Expenditure (continued) $ $

(b) Expenses

Employment expenses:

‐ Employment expenses 12,370,972 10,692,216

‐ Contributions to defined contribution superannuation funds 894,576 755,579

13,265,548 11,447,795

Depreciation of non‐current assets:

‐ Buildings 131,514 127,731

‐ Improvements 28,026 24,428

‐ Motor vehicle 75,454 69,678

‐ Plant and equipment 99,894 82,679

‐ Furniture and fittings 6,013 7,175

340,901 311,691

Finance costs 7,983 2,599

‐ Auditing or reviewing the financial report 21,840 20,800

‐ Other services 990 940

22,830 21,740

Unrealised loss on investments 31,351 ‐

Cash and Cash Equivalents

Current

Cash at bank 3,790,725 5,902,293

Cash on hand 3,119 1,078

Total cash and cash equivalents 3,793,844 5,903,371

Trade and Other Receivables

Current

Trade receivables 439,412 375,353

Provision for expected credit losses (20,674) (5,414)

418,738 369,939

Amount receivable from Hume Whittlesea Primary Care Partnership 289,127 ‐

Total trade and other receivables 707,865 369,939

Inventories

Inventories at cost 31,523 37,340

Note 5.

Remuneration of the Auditors, Andrew Frewin Stewart for:

Note 4.

Note 6.

18

18

NoteNote 3.

| 19


2019 2018

Other Assets $ $

Prepayments 111,208 92,318

Investments

Non‐current

Financial assets at fair value through profit or loss:

‐ Listed shares 1,075,069 ‐

‐ Annuities 500,000 ‐

1,575,069 ‐

Property, Plant and Equipment

Land and Buildings

Freehold land:

At valuation 3,867,470 3,867,470

Buildings

At valuation 3,757,914 3,684,474

Less accumulated depreciation (259,245) (127,731)

3,498,669 3,556,743

Total land and buildings 7,366,139 7,424,213

Improvements

At cost 387,025 238,471


309,173 188,645

Motor vehicles

At cost 574,485 508,766


219,176 228,911

Plant and equipment

At cost 828,438 658,989


311,982 239,847

Furniture and fittings

At cost 71,192 64,162


19,877 18,120

Total property, plant and equipment 8,226,347 8,099,736

Note 7.

Note 8.

Note 9.

| 20


Property, Plant and Equipment (continued)

Movements in carrying amounts:

Land Buildings

Balance at beginning of year 3,867,470 3,556,743 228,911 239,847

Additions ‐ 73,440 65,719 172,029

Disposals ‐ ‐ ‐ ‐

Depreciation expense ‐ (131,514) (75,454) (99,894)

Balance at end of year 3,867,470 3,498,669 219,176 311,982

Total

Balance at beginning of year 18,120 8,099,736

Additions 7,770 467,512

Disposals ‐ ‐

Depreciation expense (6,013) (340,901)

Balance at end of year 19,877 8,226,347

2019 2018

Trade and Other Payables $ $

Current

Accounts payable 820,398 459,156

Deferred income 388,403 308,659

Accommodation bonds 1,542,142 2,262,376

Accrued salaries 373,999 407,605

Other payables 169,232 243,079

Payable to the ATO 260,875 209,666

Total trade and other payables 3,555,049 3,890,541

(i) Financial liabilities classified as trade and other payables

Total trade and other payables 3,555,049 3,890,541

Payable to the ATO (260,875) (209,666)

Total financial liabilities classified as trade and other payables 3,294,174 3,680,875

The directors have assessed and believe the carrying amount of the land correctly reflects the fair value less cost to sell at 30

June 2019.

Note 10.

The freehold land and buildings were independently valued at 30 June 2017 by Knight Frank Valuations and Accord Appraisals.

The valuation was based on the fair value less cost to sell. The critical assumptions adopted in determining the valuation

included the location of the land and buildings, the current strong demand for land and buildings in the area and recent sales

data for similar properties.

188,645

148,554

‐

Note

Plant and

Equipment

Furniture and

Fittings

Movements in carrying amounts for each class of property, plant and equipment between the beginning and the end of the current

financial year.

18

Motor

Vehicles

Note 9.

(28,026)

309,173

Improvements

| 21


2019 2018

Provisions $ $

Current

Provision for employee entitlements 682,699 648,061

Provision for long service leave 1,174,785 1,013,883

1,857,484 1,661,944

Non‐Current

Provision for long service leave 590,226 598,859

Total provisions 2,447,710 2,260,803

2019 2018

Cash Flow Information $ $

Reconciliation of surplus to net cash provided by operating activities

Surplus after income tax expense 91,737 458,889

Non cash items included in surplus after income tax expense:

‐ Depreciation expense 340,901 311,691

‐ Unrealised loss on investments 31,351 ‐

Changes in assets and liabilities:

‐ (Increase)/decrease in trade and other receivables (337,926) 81,734

‐ Increase in other assets (18,890) (1,377)

‐ (Increase)/decrease in inventories on hand 5,817 (2,344)

‐ Increase in payables 384,742 306,508

‐ Increase in provisions 186,907 240,517

Net cash flows provided by operating activities 684,639 1,395,618

The non‐current portion for this provision includes amounts accrued for long service leave entitlements that have not yet

vested in relation to those employees who have not yet completed the required period of service.

Note 12.

The current portion for this provision includes the total amount accrued for employee entitlements and the amounts accrued

for long service leave entitlements that have vested due to employees having completed the required period of service. Based

on past experience, the company does not expect the full amount of employee entitlements or long service leave balances

classified as current liabilities to be settled within the next 12 months. These amounts, however, must be classified as current

liabilities since the company does not have an unconditional right to defer the settlement of these amounts in the event

employees wish to use their leave entitlement.

Note 11.

In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being

taken is based upon historical data. The measurement and recognition criteria for employee benefits have been discussed in

Note 1 (h).

Provisions for employee benefits represents amounts accrued for annual leave, leave loading, RDO, TIL and long service leave.

| 22


Capital and Leasing Commitments

(a) Finance Lease Commitments

(b) Operating Lease Commitments

(c) Capital Expenditure Commitments

Contingent Liabilities and Contingent Assets

Events after the Reporting Period

Director and Related Party Disclosures

- Peter Donlon (Chairperson)

- Mary Rush

- Matthew Stewart

- Janelle Parry (Deputy Chairperson)

- Rachel Strevens

- Bruce Marshall

- Georgina Dougall

Segment Reporting

The company operates predominantly in one business and geographical segment, being the health and community services

sector, providing health and welfare services to communities throughout the Hume and surrounding local government area.

Sunbury Community Health Centre Ltd have accounted for the Sunbury Lions Community Aged Care as a separate segment.

Transactions between related parties are on normal commercial terms and conditions no more favourable than those

available to other persons.

Note 15.

The company's directors are not aware of any significant events since the end of the reporting period.

Note 16.

Note 14.

The company's directors are not aware of any contingent liabilities or assets as at the date of signing this financial report.

Note 13.

The company has no material capital expenditure commitments contracted for but not capitalised in the financial statements.

The company has no material operating lease commitments contracted for.

The company has no material finance lease commitments contracted for.

Note 17.

The names of directors who have held office during the financial year are:

| 23


2019 2018

Financial Risk Management $ $

Financial assets

Cash and cash equivalents 3,793,844 5,903,371

Loans and receivables 707,865 369,939

Investments 1,575,069 ‐

Total financial assets 6,076,778 6,273,310

Financial liabilities

Financial liabilities at amortised cost:

‐ trade and other payables 3,294,174 3,680,875

Total financial liabilities 3,294,174 3,680,875

Reserves

Registered Office/Principal Place of Business

The registered office and principle place of business of the company is:

Sunbury Community Health Centre

12‐28 Macedon Street

Sunbury, VIC, 3429

4

5

10

The company's financial instruments consist mainly of deposits with banks,

local money market instruments, short‐term investments, accounts receivable,

listed shares, annuities and accounts payable.

The carrying amounts for each category of financial instruments, measured in

accordance with AASB 9 as detailed in the accounting policies to these

financial statements, are as follows:

Note

Note 20.

The asset revaluation reserve records the revaluation of land and buildings. The asset replacement reserve records retained

earnings allocated to the future replacement of assets.

Note 18.

Note 19.

8

| 24


Residential Aged Care Segment ‐ Sunbury Lions Community Aged Care ‐ NAPS ID 3461 RAC Service ID 3187

2019 2018$ $

Revenue

Operating revenue

Care income 1,668,479 1,548,378

Accommodation income 469,175 390,159

Other resident fee income 561,777 549,423

Financing income 40,344 43,545

Other Income 1,350 3,215

Total revenue 2,741,125 2,534,720

Expenses

Care expenses 1,714,681 1,675,125

Accommodation expenses 224,774 253,640

Catering, cleaning & laundry expenses 421,563 332,419

Administration expenses 498,245 359,733

Capital and financing expenses 75,555 68,690

Total expenses 2,934,818 2,689,607

Net current year deficit (193,693) (154,887)

Note 21a. Care income

Subsidies & Supplements (Commonwealth) 1,657,635 1,543,762

Resident Fees ‐ Means Tested Care Fees 10,844 4,616

1,668,479 1,548,378

Note 21b. Accommodation income

Subsidies & Supplements (Commonwealth) 323,879 265,750

Resident Accommodation Payments and Charges 141,324 120,593

Accommodation Bond retention amounts 3,972 3,816

469,175 390,159

Note 21c. Other Resident Fee Income

Basic Daily Fee 561,777 549,423

561,777 549,423

Sunbury Lions Community Aged Care

21a

Income Statement for the Year Ended 30 June 2019

Note 21.

Sunbury Community Health Centre Ltd NAPS ID 3461, RAC Service ID 3187 trades as Sunbury Lions Community Aged Care. For

the year ended 30 June 2019, this operating segment has the following financial information to report:

21i

21j

Note

21b

21c

21d

21e

21f

21g

21h

| 25


2019 2018

Note 21d. Financing Income $ $

Interest Income 40,344 43,545

40,344 43,545

Note 21e. Other Income

Donations and Fundraising ‐ 215

Other Income 1,350 3,000

1,350 3,215

Note 21f. Care Expenses

Labour Costs 1,607,500 1,569,393

Other Expenses 107,181 105,732

1,714,681 1,675,125

Note 21g. Accommodation Expenses

Labour Costs 112,354 120,942

Property Repairs, Maintenance & Replacements 56,419 77,220

Other Accommodation Expenses 56,001 55,478

224,774 253,640

Note 21h. Catering, Cleaning & Laundry Expenses

Labour Costs 226,625 173,912

Contracted Services ‐ External Service Organisations 37,808 2,503

Other Catering, Cleaning & Laundry Expenses 157,130 156,004

421,563 332,419

Note 21i. Administration Expenses

Labour Costs 123,037 67,625

Management Fees 254,913 246,790

Other Administration Expenses 120,295 45,318

498,245 359,733

Note 21j. Capital and Financing Expenses

Depreciation 67,572 66,091

Interest Expense 7,983 2,599

75,555 68,690

Note 21.Residential Aged Care Segment ‐ Sunbury Lions Community Aged Care ‐ NAPS ID 3461 RAC Service ID 3187

(continued)

Note

| 26


2019 2018

$ $

Assets

Current assets

Cash and cash equivalents 1,669,452 2,417,009

Accounts receivable and other debtors 18,800 78,880

Prepayments 6,429 6,224


Non‐current assets

Property, plant and equipment 3,047,336 3,050,701

Total non‐current assets 3,047,336 3,050,701

Total assets 4,742,017 5,552,814

Liabilities

Current liabilities

Accounts payable and other payables 936,353 902,571

Accommodation bond liabilities 1,542,142 2,262,376

Provision for employee benefits 435,087 350,560


Non‐current liabilities

Provision for employee benefits 121,980 137,158

Total non‐current liabilities 121,980 137,158


Net assets 1,706,455 1,900,149

Equity

Retained surplus 1,007,376 1,201,070

Asset revaluation reserve 699,079 699,079

Total equity 1,706,455 1,900,149

Sunbury Lions Community Aged Care

Statement of Financial Position as at 30 June 2019

Note 21.Residential Aged Care Segment ‐ Sunbury Lions Community Aged Care ‐ NAPS ID 3461 RAC Service ID 3187

(continued)

| 27


Hume Whittlesea Primary Care Partnership

2019 2018

$ $

Revenue

Operating revenue

Operating grant 1,052,018 986,927

Loss on asset disposal ‐ (4,591)

Interest received 20,109 13,870

Total revenue 1,072,127 996,206

Expenses

Employee benefits 810,139 741,227

Consultancy expenses 67,332 74,370

Auspice fee paid to Sunbury Community Health Centre 38,650 37,673

Depreciation and amortisation 11,778 11,802

Staff training & development 9,071 11,041

Client support services 52,117 42,064

Programme supplies 32,123 38,668

Motor vehicle expenses 4,019 1,083

Occupancy expenses 46,898 38,278

Total expenses 1,072,127 996,206

Net current year surplus ‐ ‐

On 1 March 2013, Sunbury Community Health Centre Ltd became the auspicing agency of the Hume Whittlesea Primary Care

Partnership. For the year ended 30 June 2019 we have the following financial information to report for the Hume Whittlesea

Primary Care Partnership:


Income Statement for the Year Ended 30 June 2019

Note 22.

| 28


Hume Whittlesea Primary Care Partnership (continued)

2019 2018

$ $

Assets

Current assets

Assets held in Trust by Sunbury Community Health Centre Ltd 2,012,340 2,069,953


Total assets 2,012,340 2,069,953

Liabilities

Current liabilities

Accounts payable and other payables 905,763 191,019

Grants in advance 1,106,577 1,878,934



Net assets ‐ ‐

Note 22a. Assets held in trust by Sunbury Community Health Centre Ltd

Cash at bank 1,984,864 1,963,017

Cash on hand 515 615

Receivables ‐ 67,860

Prepaid expenses 5,507 5,229

Motor Vehicles 21,454 33,232

2,012,340 2,069,953

Note 22b. Accounts payable and other payables

Employee provisions 205,785 191,019

Creditors 5,241 ‐

Owed to SCHC for funds advanced and right to recover employee entitlements 289,127 ‐

Retained earnings Hume Whittlesea Primary Care Partnership 405,610 ‐

905,763 191,019

No revenue, expenses, assets, or liabilities of Hume Whittlesea Primary Care Partnership are included in that of Sunbury

Community Health Centre Ltd, as this program is auspiced.

Note 22.


Statement of Financial Position as at 30 June 2019

22a

22b

Note

| 29

1.

a.

b.

2.

Peter Donlon Janelle ParryChairperson Deputy Chairperson

Dated this XXth day of Xxxxxxxxxx 2019

In the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and

when they become due and payable.

Sunbury Community Health Centre Ltd Director's Declaration

The financial statements and notes, as set out on pages 1 to 29, are in accordance with the Australian Charities and

Not‐for‐profits Commission Act 2012 and:

In accordance with a resolution of the directors of Sunbury Community Health Centre Ltd, the directors of the entity declare

that:

give a true and fair view of the company's financial position as at 30 June 2019 and of its performance for the

year ended on that date.

comply with Australian Accounting Standards ‐ Reduced Disclosure Requirements; and

| 30

Independent auditor’s report to the members of Sunbury Community Health Centre Limited Report on the audit of the financial statements

Our opinion In our opinion, the financial report of Sunbury Community Health Centre Limited, is in accordance with the Australian Charities and Not‐for‐profits Commission Act 2012, including: i. giving a true and fair view of the company’s financial position as at 30 June 2019 and of its performance

for the year ended on that date and ii. complying with Australian Accounting Standards ‐ Reduced Disclosure Requirements and the Australian

Charities and Not‐for‐profits Commission Regulations 2013.

What we have audited Sunbury Community Health Centre Limited (the company) financial report comprises the:

Statement of financial position as at 30 June 2019 Statement of profit or loss and other comprehensive income for the year then ended Statement of changes in equity for the year then ended Statement of cash flows for the year then ended Notes comprising a summary of significant accounting policies and other explanatory notes The directors' declaration of the entity.

Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Other information The company may prepare an annual report that may include the financial statements, director’s report and declaration and our audit report (the financial report). The annual report may also include “other information” on the entity’s operations and financial results and financial position as set out in the financial report, typically in a Chairperson’s report and reports covering governance and other matters. The directors are responsible for the other information. An annual report has not been made available to us as of the date of this auditor's report. Our opinion on the financial report does not cover the other information and accordingly we will not express any form of assurance conclusion thereon.

Our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify that a material inconsistency appears to exist when we read the annual report (or become aware that the other information appears to be materially misstated), we will discuss the matter with the directors and where we believe that a material misstatement of the other information exists, we will request management to correct the other information.

Independence In conducting our audit, we have complied with the independence requirements of the Australian Charities and Not‐for‐profits Commission Act 2012.

Directors’ responsibility for the financial report The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards ‐ Reduced Disclosure Requirements and the Australian Charities and Not‐for‐profits Commission Act 2012 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or cease operations, or have no realistic alternative but to do so.

Auditor’s responsibility for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatement can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/home.aspx. This description forms part of our auditor’s report.

Andrew Frewin Stewart Adrian Downing 61 Bull Street, Bendigo, 3550 Lead Auditor Dated this 24th day of October 2019

2016‐XX Report Title 2

sunbury community health centre limited...bruce marshall rachel strevens georgina dougall principal...

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