View
1
Download
0
Category
Preview:
Citation preview
Ivanhoe Girls’ Grammar School
ABN 77 004 098 748
Financial Report
for the year ended 31 December 2020
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
2
Contents Notice of Annual General Meeting (Draft Only) .....................................................................................................3
Ivanhoe Girls’ Grammar School ..............................................................................................................................4
Life Governors of the School ..................................................................................................................................4
School Board Report ...............................................................................................................................................5
Principal’s Report ....................................................................................................................................................6
Directors’ Report ....................................................................................................................................................7
Auditor’s Independence Declaration ................................................................................................................... 10
Statement of Profit or Loss and Other Comprehensive Income ......................................................................... 11
Statement of Financial Position ........................................................................................................................... 12
Statement of Changes in Equity .......................................................................................................................... 13
Statement of Cash Flows ..................................................................................................................................... 14
Notes to the Financial Statements ...................................................................................................................... 15
1. General information and statement of compliance ................................................................................ 15
2. Summary of significant accounting policies ............................................................................................ 15
3. Revenue ................................................................................................................................................... 24
4. Surplus for the year ................................................................................................................................. 24
5. Cash and cash equivalents ....................................................................................................................... 24
6. Trade and other receivables .................................................................................................................... 24
7. Other assets ............................................................................................................................................. 24
8. Investment property ................................................................................................................................ 24
9. Property, plant and equipment ............................................................................................................... 25
10. Trade and other payables .................................................................................................................... 26
11. Provisions ............................................................................................................................................. 26
12. Reserves ............................................................................................................................................... 26
13. Reconciliation of cash flows from operating activities ........................................................................ 27
14. Commitments ...................................................................................................................................... 27
15. Related party transactions .................................................................................................................. 27
16. Member’s guarantee ........................................................................................................................... 28
Directors’ Declaration .......................................................................................................................................... 29
Independent Auditors Report.............................................................................................................................. 30
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
Notice of Annual General Meeting
The Ivanhoe Girls Grammar School – ABN 77 004 098 748 (a company limited by guarantee and not having a capital divided into shares).
NOTICE IS HEREBY GIVEN that the 98th ANNUAL GENERAL MEETING of the Members of The Ivanhoe Girls Grammar School will be held in the Lecture Theatre, Doris Walker Centre, Noel Street, Ivanhoe on Wednesday 12th May 2021 at 7:45pm.
Business
1. Opening
2. Apologies
3. Tabling of proxies
4. Confirmation of minutes of the Annual General Meeting held on 22nd July 2020.
5. President’s Report
6. Principal’s Report
7. Treasurer’s Report
8. To receive, consider and adopt the financial report of the Company for year ended 31 December 2020 together with the reports of the Directors and of the Auditors thereon
9. To confirm the appointment of ShineWing Australia as auditors for a further two years
10. To elect up to three (3) Directors
In accordance with the Articles of Association Mr Stan McLiesh, Dr Jean McMullin and Mr Peter Smithson to retire by rotation and are eligible for re-election.
11. Other Business
Dated this 30th March 2021
By order of the Board.
Jarrod Guiney
Secretary
123 Marshall Street
Ivanhoe VIC 3079
Ea
m
th
ch member entitled to attend and vote at this meeting may appoint a proxy. A proxy must be a
ember of the company. Proxy forms must be lodged with the Secretary not less than 48 hours before
3
e meeting. Proxy forms will be issued two weeks prior to the meeting.
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
4
Ivanhoe Girls’ Grammar School
Ivanhoe Girls’ Grammar School is a company limited by guarantee, incorporated in 1922 and established to:
operate a school for girls at Ivanhoe;
provide for the education of girls within the framework of Christian teaching generally and in conformity with the principles of the Anglican Church in Australia; and
to provide excellence in education within a caring Christian community and to prepare young women for a personally and professionally fulfilling life.
The management of the company and the custody and control of its funds and property is vested in a Board of 12 members, supported by the Company Secretary, comprising:
a nominee of the Ivanhoe Girls’ Old Grammarians Association (IGOGA);
a nominee of the vestry of St James’ Anglican Church, Ivanhoe;
an educationalist appointed by the Board;
a nominee of Cooerwull Inc; and
eight elected members who hold office for three years and are eligible to stand for re-election at the completion of that term.
Day-to-day management of the School is delegated to the Principal, supported by the School’s management team and staff.
Life Governors of the School
Appointed by the Board of Directors in recognition of outstanding service rendered to the School.
Year Year
1952 Mr H W Buckley Deceased 1983 Mrs H Low Deceased
1952 Mr J H Sharwood Deceased 1983 Mrs D Page Deceased
1952 Mr C T Sutton Deceased 1983 Mr I A A Vassie AM Deceased
1955 Mr H A Amos Deceased 1985 Mr A McCallum Deceased
1965 Mr J A Pearson Deceased 1987 Dr H V Nursey Deceased
1965 Canon R M Hudson Deceased 1991 Mr H J Mathers Deceased
1965 Mrs M J Billson Deceased 1992 Mr A G Pizzey AM
1970 Mr K A G Gay Deceased 1997 Mr B H Piesse
1972 Mr E R Ballantyne Deceased 2002 Mr P J Smithson
1973 Mr F H Pizzey Deceased 2006 Mr S R McLiesh
1973 Mrs J V Meldrum Deceased 2011 Mr G W Boburka
1974 Mr V R C Brown Deceased 2011 Mr R W Jones
1976 Mr J R Temby Deceased 2012 Miss E M Butt OAM Deceased
1978 Mr T G Gay Deceased 2016 Mrs J A Clark Deceased
1978 Mr G Collins Deceased
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
5
School Board Report
It doesn’t seem that long ago at all that I was at the first assembly of the year, at Centre Ivanhoe, welcoming all students and staff back for the 2020 school year. Little did we all know then, that this year would be one unlike any other.
Much has been said about the experience of learning and teaching this year and about the things that have been unable to have been experienced. More than any other year, all of us across our school, and wider community, have had to dig deep and stretch several of our capabilities and attributes even further.
This year has been unique in terms of the challenges
that we have faced, but I have been so immensely
proud of all that has been achieved by our wonderful
school community.
Learning and teaching, pastoral care and community
engagement have continued to be front of mind as we
have worked through the various issues, responded to
changed circumstances and implemented the range of
responses required to continue to support our
students in their education.
Despite the demands and disruption COVID-19
brought to 2020, the School has continued its focus on
the Strategic Plan priorities. Key amongst these is the
finalisation of the Campus Design Brief which will
inform the re-imagining of our physical footprint, to
further support student engagement and quality
learning and teaching into the future. Many thanks to
the Chair of the Properties Committee, Mr Peter
Smithson, for his leadership of this very significant
piece of work, that will position the School well into
the future.
As you would expect, Finance and Risk has been a key
focus of the Board’s deliberations this year as we
sought to respond to and balance the immediate,
short-term and longer-term impacts of COVID-19 on
our school family. I would like to thank the Chair of the
Finance and Risk Committee, Mrs Kerrie Haynes for
her expertise and guidance as we have worked
through the issues, and to the Director of Corporate
Services, Mr Jarrod Guiney and his very capable team
who have implemented the Board’s decisions.
I would also like to express my appreciation to my
fellow Board members. I especially appreciate the
extra time and effort you have so willingly offered
throughout this extraordinary year.
Our fabulous teaching and professional staff have
certainly shone this year. Your unwavering dedication
to our students and wider school family has been truly
amazing, with high quality teaching and pastoral care
continuing seamlessly, despite the remote
environment. I would like to particularly thank all
those who have gone above and beyond, working in
different ways, across new areas, adapting to new
skills and genuinely supporting each other and most
importantly, our students, to continue their learning
in an uninterrupted fashion.
Thank you to our Principal, Dr Deborah Priest, for her
vision and leadership in what has been an exceptional
year, and to the COVID-19 Management team who
have capably guided the School through a range of
changes that were required to be implemented this
year, often at very short notice.
To the Class of 2020, at that first assembly of the year,
although you have not experienced, just yet, some of
the routine milestone events enjoyed by your
predecessors, your experience of your final year at
school has been very unique. You have all been
exceptional in how you have adapted to the
circumstances and looked after each other with
kindness and respect. There will be different and
extraordinary, but no less significant, memories for
you to take with you into the future.
Finally, and very importantly, I would like to
acknowledge all of our fabulous students for your
wonderful year of learning in 2020. We are so very
proud of you and all that you have achieved and will
continue to achieve in the years ahead.
Mrs Karen Frost Chair of the School Board Adapted from Celebration Night 2020
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
6
Principal’s Report
This evening, we honour the achievements of our Senior School students, thank our dedicated staff and celebrate the warm and wonderful Ivanhoe Girls’ community as we mark the end of 2020, a year that has been most remarkable and memorable for all of us. I am particularly delighted this evening to be part of a very unique virtual Celebration Night.
Ivanhoe Girls’ has endured many challenges since its foundation 117 years ago. What defines us across the ages, is the courage, creativity and resilience with which successive generations of students and staff members have responded to every challenge and have grown stronger from each experience.
As we have emerged from the peak of this crisis, we do so in the sure knowledge that those bonds which have been forged in adversity, have only served to enrich and intensify our relationships with each other. We have inspired each other to live with hope and face the future in the sure knowledge that we are in a stronger position than before. We have not simply survived; we have grown together, protected each other, and thrived together during the most testing of times.
This year, both educationally and in terms of our response to the pandemic, we chose to lead rather than to follow. I am immeasurably proud of my colleagues and I marvel at their resourcefulness and the compassionate solicitude that they have demonstrated in the care of our students and each other. They have moved proverbial mountains throughout this year and have done so with grace and kindness. I am proud of them, grateful to them and humbled by them.
Our teachers’ response to offsite learning affirmed their steadfast commitment to ensuring continuity of learning for our students. Their engagement and dedication to finding optimal teaching methodologies throughout the pandemic was not only inspirational, it was truly remarkable.
Thank you to the members of our Board of Directors, led by our Chair, Mrs Karen Frost. These Directors give significant time freely to the School as they share their expertise in a range of disciplines to ensure Ivanhoe Girls’ has strong and effective governance.
Thank you to our broader community of volunteers who, despite the challenges of COVID-19 restrictions and offsite learning, still found innovative and useful
ways to contribute throughout this year to make our school warm and inviting.
During difficult times, support from our parents has remained steadfast. We never underestimate the huge sacrifices that our parents make in order to be able to send their children to be educated at Ivanhoe Girls’. It is never taken for granted and we are honoured that you and your families have remained members of this wonderful community throughout such hard times. Your unshakeable confidence and faith in our values, our beliefs, our staff and our purpose, is greatly valued.
Thank you also to the members of the School’s COVID Management Committee who have met together for almost 100 meetings this year throughout the school holidays as well as during term time. The effectiveness of this team and the collective wisdom of the members of this committee, have enabled Ivanhoe Girls’ to continue to operate seamlessly throughout the pandemic and, more importantly, for student learning to be continuous, albeit delivered differently.
I would like to conclude my “thank yous” with a special thank you to our fabulous students across all year levels from Years 7 to Year 12 and particularly to School Captain Dunithi Galegadara, Vice School Captain Pema Hayman and the 2020 Prefect Team who have miraculously kept our students’ connected with high spirits. Your collective leadership skills have been invaluable in helping our students navigate this interesting and very different year.
I believe that there has never been a better time to be a student at Ivanhoe Girls’. We are unashamedly ambitious and optimistic for the future that will see the young people in our care continue to be provided with the very best preparation to go on to live successful and fulfilling lives when they graduate from our school. It is this intrinsic desire to improve that motivates us to dedicate the best part of our lives to serving our students and this community.
Dr Deborah Priest Principal Adapted from Celebration Night 2020
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
7
Directors’ Report
The Directors of Ivanhoe Girls’ Grammar School present their report together with the financial statements of
Ivanhoe Girls’ Grammar School for the year ended 31 December 2020.
Directors
The following persons were Directors of Ivanhoe Girls’ Grammar School during or since the end of the year.
Directors have been in office since the start of the year unless otherwise stated.
Name Role Qualifications and experience
K F Frost President / Chair -Elected Member
AAGM, B Ec (Acc)Grad Dip Fin (SIA) GAICD
Director, Department of Treasury and Finance Chair of the School Board Member of Board 11 years
K M Haynes Treasurer – IGOGA Nominee
B CommCPA
Accountant in private practiceChair of Finance & Risk Committee Member of Board 21 years
A E Hore Elected Member B.Com, B.Agr.Sc(Hons), CPA, Grad Dip Fin (SIA)
Senior Manager, Department of Treasury and Finance Member of Board two years
R S Hoye Elected Member BA, MEnvSt, MPPM, PhD, GAICD
Dean (School of Allied Health, Human Services & Sport), La Trobe University Member of Board two years
Rev’d S J May St James’ Anglican Church Nominee
B Sci, Dip EdB Th, Dip Min
Vicar, St James Anglican ChurchMember of Board six years
S R McLiesh Vice President –Elected Member
FAIM, AIPM, JP Former Chairman, Clinuvel Pharmaceuticals Ltd Former General Manager CSL Limited Member of Board 25 years
J M McMullin Elected Member MBBS Former General PractitionerMember of Board 13 years
A E Nelson-Page Elected Member SRNDiploma of Community Services (Children’s Services)
Early Childhood EducatorMember of Board 15 years
R Rosedale Cooerwull Inc Nominee
B A, Dip Ed Educational Consultant Chair of Liaison Committee Member of Board nine years
P J Smithson Vice President –Elected Member
B. Arch (Melb)Architect ARBV
Principal, Smithson AssociatesFounder / Consultant BG&E Facades Pty. Limited Chairman of Properties Committee Member of Board 35 years
E R Tudor OAM Educationalist appointed by the Board
B Sc (Hons), MSc,Dip Ed, FACE, FACEL
Former Headmaster Trinity Grammar School Member of Board six years
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
8
Principal activities
The principal activity of Ivanhoe Girls’ Grammar School during 2020 was to conduct a day school for girls from
Early Learning (3 year old) to Year 12.
No significant change in the nature of these activities occurred during the year.
Review of operations
The surplus of the company is $2,677,320 (2019: $1,435,206).
The School’s operations were significantly impacted by the COVID-19 pandemic during 2020. In response to
Victorian Government Health directions, all students and staff were required to migrate to an offsite learning
approach for a substantial proportion of the year. Rebates, payment extensions and other financial support
were provided to school families in recognition of these impacts. The School also received government financial
support during this period.
Short-term and long-term objectives and strategies
The core objective of the School is to provide the best learning and teaching which, underpinned by the Christian
philosophy, enables every girl to achieve her potential and to be a confident, optimistic and responsible citizen.
In order to achieve the above, the School employs high quality staff to support a broad and progressive
educational program. That program, the facilities that support it and the resources that underpin it are
continually reviewed to ensure they remain appropriate for a progressive and successful independent
educational institution.
Directors’ meetings
The number of meetings of Directors (including meetings of Board Committees) held during the year and the
number of meetings attended by each Director is as follows:
Board member Board Committee
Finance & Risk Properties Liaison
A B A B A B A B
K F Frost 9 9 6 6 7 7 2 1
K M Haynes 9 9 6 6 7 7
A Hore 9 9 6 6
R Hoye 9 8 7 6
Rev’ S J May 9 9
S R McLiesh 9 7 6 6 7 7
J M McMullin 9 8 2 1
A E Nelson-Page 9 9 2 1
R Rosedale 9 9 2 1
P J Smithson 9 8 7 7
E R Tudor 9 9 7 6
Where:
column A is the number of meetings the Director was entitled to attend
column B is the number of meetings the Director attended
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
9
Contribution in winding up
The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If the
Company is wound up, the constitution states that each member is required to contribute a maximum of $100
each towards meeting any outstanding obligations of the entity. At 31 December 2020, the total amount that
members of the Company are liable to contribute if the Company wound up is $33,100 (2019: $35,800)
Auditor’s Independence Declaration
A copy of the Auditor’s Independence Declaration as required under s.60-40 of the Australian Charities and Not-
for-profits Commission Act 2012 is included in page 10 of this financial report and forms part of the Directors’
Report.
Signed in accordance with a resolution of the Board of Directors.
K F Frost
Chair
K M Haynes
Treasurer
Ivanhoe, 30th March 2021
Brisbane Level 14 12 Creek Street Brisbane QLD 4000 T + 61 7 3085 0888
Melbourne Level 10 530 Collins Street Melbourne VIC 3000 T + 61 3 8635 1800 F + 61 3 8102 3400
Sydney Level 8 167 Macquarie Street Sydney NSW 2000 T + 61 2 8059 6800 F + 61 2 8059 6899
ShineWing Australia ABN 39 533 589 331. Liability limited by a scheme approved under Professional Standards Legislation. ShineWing Australia is an independent member of ShineWing International Limited.
shinewing.com.au
Take the lead
AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS OF
IVANHOE GIRLS’ GRAMMAR SCHOOL LIMITED
I declare that, to the best of my knowledge and belief, during the year ended 31 December 2020 there
have been:
i. No contraventions of the auditor independence requirements as set out in the Australian Charities
and Not-for-profits Commission Act 2012, in relation to the audit, and
ii. No contraventions of any applicable code of professional conduct in relation to the audit.
ShineWing Australia
Chartered Accountants
Hayley Underwood
Partner
Melbourne, 30 March 2021
10
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
11
Statement of Profit or Loss and Other Comprehensive Income For the year ended 31 December 2020
Notes 2020 2019$ $
Revenue 3 27,207,776 26,470,963Employee benefits expense (17,731,858) (17,773,195)Depreciation expense 9 (2,285,414) (2,100,888)Tuition & recurrent education expenses (995,481) (1,755,726)Administration expenses (1,966,509) (1,830,183)School maintenance expenses (1,551,194) (1,575,765)Surplus before tax 2,677,320 1,435,206Income tax 2(c) -Surplus for the year 4 2,677,320 1,435,206
Other comprehensive income for the year, net of income tax Revaluation of land and buildings 9 555,020 -
Total comprehensive income for the year 3,232,340 1,435,206
This statement should be read in conjunction with the notes to the financial statements.
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
12
Statement of Financial Position As at 31 December 2020
Notes 2020 2019$ $
AssetsCurrent assetsCash and cash equivalents 5 26,428,687 25,286,734Trade and other receivables 6 472,204 391,641Other assets 7 556,848 276,289Total current assets 27,457,739 25,954,663
Non-current assetsProperty, plant & equipment 9 104,360,767 104,944,881Investment property 8 2,553,714 -Total non-current assets 106,914,481 104,944,881
Total assets 134,372,270 130,899,544
LiabilitiesCurrent liabilitiesTrade and other payables 10 846,298 833,950Contract liabilities 11 6,466,911 6,399,667Provisions 12 2,426,200 2,156,901Total current liabilities 9,739,409 9,390,518
Non-current liabilitiesTrade and other payables 10 43,435 135,021Provisions 12 447,400 464,369Total non-current liabilities 490,835 599,390
Total liabilities 10,230,244 9,989,908
Net assets 124,141,976 120,909,636
EquityAccumulated funds 73,898,228 71,219,818Reserves 13 50,243,748 49,689,818Total equity 124,141,976 120,909,636
This statement should be read in conjunction with the notes to the financial statements.
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
13
Statement of Changes in Equity For the year ended 31 December 2020
Notes Land & Building Reserve
General Reserve
Accumulated funds
Total equity
$ $ $ $
Balance at 1 January 2019
49,151,562 536,998 69,785,870 119,474,430
Surplus for the year - - 1,435,206 1,435,206Other comprehensive income
- - - -
Total comprehensive income for the year
- - 1,435,206 1,435,206
Transfers - 1,258 (1,258) -Balance at 31 December 2019
49,151,562 538,256 71,219,818 120,909,636
Surplus for the year - - 2,677,320 2,677,320Other comprehensive income
555,020 - - 555,020
Total comprehensive income for the year
555,020 - 2,677,320 3,232,340
Transfers from reserves
13 - (1,090) 1,090 -
Balance at 31 December 2020
49,706,582 537,165 73,898,228 124,141,926
This statement should be read in conjunction with the notes to the financial statements.
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
14
Statement of Cash Flows For the year ended 31 December 2020
Notes 2020 2019$ $
Cash flows from operating activitiesTuition fees received 18,815,171 20,833,479Receipts of government grants 5,430,441 5,327,138Receipts of government subsidies 2,996,981 -Receipts from other sources 183,224 675,765Payments to suppliers and employees (22,738,879) (23,255,728)Interest received 271,632 563,300Interest paid (5,706) (11,423)Net cash provided by operating activities 14 4,952,864 4,132,531
Cash flows from investing activitiesPurchase of property, plant and equipment 9 (1,158,408) (4,644,050)Proceeds from disposals of property, plant and equipment
17,000 832
Purchase of investment property 8 (2,553,714) -Net cash used in investing activities (3,695,122) (4,643,218)
Cash flows from financing activities(Repayments) / proceeds of borrowings associated loans
(2,771) (4,869)
Proceeds from leasing liabilities - 2,347Repayments of leasing liabilities (113,018) (109,827)Net cash provided by financing activities (115,789) (112,349)
Net increase in cash and cash equivalents 1,141,953 (623,036)
Cash and cash equivalents at the beginning of the year 25,286,734 25,909,770Cash and cash equivalents at the end of the year 5 26,428,687 25,286,734
This statement should be read in conjunction with the notes to the financial statements.
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
15
Notes to the Financial Statements For the year ended 31 December 2020
1. General information and statement of compliance
The financial report covers Ivanhoe Girls’ Grammar School as an individual entity. Ivanhoe Girls’ Grammar
School is a company limited by guarantee, incorporated and domiciled in Australia. Ivanhoe Girls’ Grammar
School is a not-for-profit entity for the purpose of preparing the financial statements.
The address of its registered office and principal place of business is 123 Marshall St, Ivanhoe VIC Australia.
The financial statements have been prepared in accordance with the Australian Charities and Not-for-profits
Commission Act 2012, mandatory applicable Australian Accounting Standards and other authoritative
pronouncements for the Australian Accounting Standards Board.
The financial statements for the year ended 31 December 2020 were approved and authorised for issue by the
Board of Ivanhoe Girls’ Grammar School as at the date of the Directors’ report
The significant accounting policies disclosed below are those which the Directors have determined are
appropriate to meet the needs of members. Such accounting policies are consistent with the previous period
unless otherwise stated.
2. Summary of significant accounting policies
Basis of preparation
The financial statements have been prepared on the basis that the not-for-profit company is a non-reporting
entity because there are no users dependent on general purpose financial statements. These financial
statements are therefore special purpose financial statements that have been prepared in order to meet the
requirements of the Australian Charities and Not-for-profit Commission Act 2012.
The Company has not assessed whether it has relationships with other entities which, for financial reporting
purposes, might be considered subsidiaries or associates as it is not required by the Australian Charities and
Not-for-profits Commission Act 2012 to do so.
These special purpose financial statements comply with all the recognition and measurement requirements in
Australian Accounting Standards except for the requirements set out in
AASB 10: Consolidated Financial Statements or AASB 128: Investments in Associates and Joint Ventures,
and
AASB 119: Employee Benefits in relation to the recognition of the employee defined benefit plans.
The financial report has been prepared on an accrual basis and is based on historical costs and does not take
into account changing money values or, except where stated, current valuations of non-current assets. Cost is
based on the fair values of the consideration given in exchange for assets.
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
16
(a) Changes in Significant Accounting Policies
The financial statements have been prepared in accordance with the same accounting policies adopted in the
company’s last annual financial statements for the year ended 31 December 2019.
(b) Comparatives
Where necessary, comparative information has been reclassified and repositioned for consistency with current
year disclosures.
(c) Income tax
The income of the company is exempt from income tax under Division 50 of the Income Tax Assessment Act,
1997.
(d) Revenue
The Company recognises revenue under AASB 15 when the rights and obligations created under the agreement
are enforceable and the performance obligations are sufficiently specific. To determine whether to recognise
revenue, the Company follows a 5-step process:
1. identifying the contract with the customer;
2. identifying the performance obligations in the contract;
3. determining the transaction price;
4. allocating the transaction price to the performance obligations in the contract; and
5. recognising revenue as and when the performance obligations are satisfied.
Revenue is recognised for the major business activities as follows:
Tuition Fees
Revenue from tuition fees are recognised over time as and when schooling is delivered to the students over the
terms. When the school year has been paid for in advance to the school or the School has received government
funding in advance (e.g. before starting the school year) the School recognises a liability until the services are
delivered.
Government Grants
Grants received under contracts with enforceable performance obligations are recognised as revenue when the
related performance obligations in the contracts are satisfied.
Other Income
Amounts that are not received under enforceable contracts and which do not otherwise represent contribution
by owners or revenue (or contract liability) arising from contract with customers or lease liability or financial
instrument or reimbursement of provision are recognised immediately as income.
Revenue from the sale of goods is recognised upon the delivery of goods to customers.
Other revenue is recognised when the right to receive the revenue has been established.
All revenue is stated net of the amount of goods and services tax (GST).
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
17
(d) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly
liquid investments that are readily convertible into known amounts of cash and which are subject to an
insignificant risk of changes in value.
(e) Property, plant and equipment
Land and buildings
Land and buildings held for use is stated at re-valued amounts. Revalued amounts are fair market values based
on appraisals prepared by external professional valuers once every three (3) years or more frequently if market
factors indicate a material change in fair value.
Any revaluation surplus arising upon appraisal of land and buildings is recognised in other comprehensive
income and credited to the revaluation reserve in equity. To the extent that any revaluation decrease or
impairment loss has previously been recognised in profit or loss, a revaluation increase is credited to profit or
loss with the remaining part of the increase recognised in other comprehensive income. Downward
revaluations of land and buildings are recognised upon appraisal or impairment testing, with the decrease being
charged to other comprehensive income to the extent of any revaluation surplus in equity relating to this asset
and any remaining decrease recognised in profit or loss. Any revaluation surplus remaining in equity on disposal
of the asset is transferred to retained earnings.
As no finite useful life for land can be determined, related carrying amounts are not depreciated.
Plant and other equipment
Plant and other equipment (comprising fittings and furniture) are initially recognised at acquisition cost or
manufacturing cost, including any costs directly attributable to bringing the assets to the location and condition
necessary for it to be capable of operating in the manner intended by the company’s management.
Buildings, plant and other equipment are subsequently measured at cost less subsequent depreciation and
impairment losses.
Depreciation
Depreciation is recognised on a straight-line basis to write down the cost less estimated residual value of
buildings, plant and other equipment. The following useful lives are applied:
buildings: 40 years
plant and equipment: 4-10 years
leasehold improvements: life of lease
In the case of leasehold improvements, expected useful lives are determined by reference to comparable
owned assets or over the term of the lease, whichever is shorter.
Material residual value estimates and estimates of useful life are updated as required, but at least annually.
Gains or losses arising on the disposal of property, plant and equipment are determined as the difference
between the disposal proceeds and the carrying amount of the assets and are recognised in profit or loss within
other income or other expenses.
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
18
(f) Investment properties
Investment property is held at cost which includes expenditure that is directly attributable to the acquisition of
the investment property. The building portion of investment properties are depreciated on a straight line basis
at 2.5%.
(g) Impairment of assets
At the end of each reporting year, the company reviews the carrying values of its tangible and intangible assets
to determine whether there is any indication that those assets have been impaired. If such an indication exists,
the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use,
is compared to the asset's carrying value. Value in use is either the discounted cash flows relating to the asset
or depreciated replacement cost if the criteria in AASB 136 'Impairment of Assets' are met. Any excess of the
asset's carrying value over its recoverable amount is expensed to the statement of comprehensive income.
(h) Employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and
long service leave when it is probable that settlement will be required and they are capable of being measured
reliably.
Liabilities recognised in respect of short-term employee benefits, are measured at their nominal values using
the remuneration rate expected to apply at the time of settlement.
Liabilities recognised in respect of long term employee benefits are measured at the present value of the
estimated future cash outflows to be made by the company in respect of services provided by employees up to
the reporting date.
Superannuation commitments
On 1 February 2004 the Ivanhoe Girls’ Grammar School Superannuation Fund transferred to the Mercer Super
Trust and operates within that Trust as the Ivanhoe Girls’ Grammar School Superannuation Plan.
Permanent and fixed term employees are eligible to join the Ivanhoe Girls’ Grammar School Superannuation
Plan.
For employees appointed prior to 1 January 2004 the fund provides for defined benefits based on years of
service and final average salary. Employees contribute to the fund. Employees appointed since 1 January 2004
join the Ivanhoe Girls’ Grammar School Superannuation Plan Accumulation Section. Actuarial assessment of the
fund was last made as at 31 December 2020.
The company does not record, as an asset, the difference between the employer established defined benefit
superannuation plan’s accrued benefits and the net market value of the plan’s assets. Should a liability arise
the School will record the liability to the extent of the shortfall of their obligations under the plan.
The assets of the fund are sufficient to satisfy all benefits that would have vested under the fund in the event
of termination of the fund.
Contributions are made by the economic entity to employee superannuation funds and are charged as expenses
when incurred.
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
19
(i) Financial Instruments
Financial Assets measured at Amortised Cost
The company classifies its financial assets as at amortised cost only if both of the following criteria are met:
a) the asset is held within a business model with the objective of collecting the contractual cash flows; and
b) the contractual terms give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal outstanding.
Financial Assets measured at Fair Value through Other Comprehensive Income
Debt instruments held by the entity where the contractual cash flows consist solely of principal and interest
and held within a business model of both collecting contractual cash flows and selling financial assets are
measured at fair value through other comprehensive income. Except for impairment losses or gains and foreign
exchange gains or losses, all other gains or losses are recognised in other comprehensive income.
Financial Assets at fair value through profit and loss
Financial assets are classified at “fair value through profit or loss” when they are not otherwise required to be
measured at amortised cost or at fair value through other comprehensive income, or when they are designated
as such to avoid an accounting mismatch. Such assets are subsequently measured at fair value with changes in
carrying amount included in profit or loss.
Fair value of Assets and Liabilities
Under limited circumstances, in the case of unquoted equity instruments and contracts for those instruments,
if the recent information to measure fair value is insufficient or if there is a wide range of possible fair value
measurements, fair value of such instruments is measured at their cost provided cost represents the best
estimate of fair value within that range.
Equity investments measured at fair value through other comprehensive income
For equity securities which are not held for trading, the company has made an irrevocable election at initial
recognition to recognise changes in fair value through the other comprehensive income rather than profit or
loss.
Trade and Other Receivables
Trade and other receivables include amounts due from customers in the ordinary course of business.
Receivables expected to be collected within 12 months of the end of the reporting period are classified as
current assets.
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the
effective interest method, less any provision for impairment. Refer to Note 1(g) for further discussion on the
determination of impairment losses.
Impairment of Financial Assets
Impairment of financial assets is recognised in the form of a loss allowance for expected credit loss. Except for
trade receivables as explained in Note 7, the loss allowance is measured as a life-time expected credit loss if, at
the reporting date, the credit risk on that financial instrument has increased significantly since initial
recognition. The loss allowance is measured as 12-month expected credit loss if, at the reporting date, the credit
risk on a financial instrument has not increased significantly since initial recognition
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
20
The entity determines whether there has been a significant increase in credit risk since initial recognition by
comparing the risk of a default occurring on the financial instrument as at the reporting date with the risk of a
default occurring on the financial instrument as at the date of initial recognition using reasonable and
supportable information, unless the financial instrument is determined to have low credit risk at the reporting
date.
Changes in expected credit losses from the previous reporting period are recognised in profit or loss as an
impairment gain or loss.
Expected credit losses are measured with reference to the maximum contractual period and considering:
a) an unbiased and probability-weighted amount that is determined by evaluating a range of possible
outcomes;
b) the time value of money; and
c) reasonable and supportable information that is available without undue cost or effort at the reporting
date about past events, current conditions and forecasts of future economic conditions.
Trade receivables (other than government subsidies) are written off if there is objective evidence regarding
bankruptcy or insolvency of the debtor and no guarantees are otherwise available from any third party on behalf
of the debtor. This is the approach even if enforcement activities have already been initiated. Government
subsidies are written off if there is evidence regarding changes in Government policies or non-compliance with
the conditions related to the grant that the entity is no longer eligible to the subsidies.
(i) Goods and services tax (GST)
Revenues, expenses and purchased assets are recognised net of the amount of GST, except where the amount
of GST incurred is not recoverable from the Tax Office. In these circumstances the GST is recognised as part of
the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the
statement of financial position are shown inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of
investing and financing activities, which are disclosed as operating cash flows.
(j) Economic dependence
Ivanhoe Girls’ Grammar School receives a portion of its income from the State and Commonwealth
Governments. At the date of this report the Directors have no reason to believe the Government will not
continue to support Ivanhoe Girls’ Grammar School.
(k) Reserves
Other components of equity include the following:
Land and buildings revaluation reserve – comprises gains and losses from the revaluation of land and
buildings
Capital reserves – comprises amounts bequeathed to the school or otherwise set aside until they can be
used for their specific capital purpose
General reserves – comprises amounts donated to the school by individuals, trusts, estates and
associated entities that have been set aside for specific purposes
Accumulated funds include all current and prior period retained surpluses.
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
21
(l) Leases
As a lessee, the Company previously classified leases as operating or finance leases based on its assessment of
whether the lease transferred substantially all of the risks and rewards of ownership. Under AASB 16, the
Company recognises right-of-use assets and lease liabilities for all operating leases.
The Company recognises the lease payments associated with the leases as an expense on a straight-line basis
over the lease term.
The Company presents right-of-use assets that do not meet the definition of investment property in property,
plant and equipment, the same line item as it presents underlying assets of the same nature that it owns.
The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-
of-use asset is initially measured at cost, and subsequently at cost less any accumulated depreciation and
impairment losses, and adjusted for certain re-measurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, then the Company’s incremental borrowing rate.
The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease
payments made. It is remeasured when there is a change in future lease payments arising from a change in an
index or rate, a change in the estimate of the amount expected to be payable under a residual value guarantee,
or as appropriate, changes in the assessment of whether a purchase or extension option is reasonably certain
to be exercised or a termination option is reasonably certain not to be exercised.
The Company has applied judgement to determine the lease term for some lease contracts in which it is a lessee
that includes renewal options. The assessment of whether the Company is reasonably certain to exercise such
options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets
recognised.
(m) Prior period reclassification
At reporting date, contract revenues received in advance have been reclassified from trade and other payables
(note 10) to contract liabilities (note 11) in accordance with the recognition and measurement principals of
AASB 15: Revenues from Contracts with Customers in line with the amendments to AASB 1054: Australian
Additional Disclosures. Additionally, the prior period balances surrounding contract revenues received in
advance have also been reclassified. There has been no impact to net assets or surplus.
2019
$
2019
$
(amended)
Trade and other payables 7,233,617 833,950
Contract liabilities - 6,399,667
7,233,617 7,233,617
At reporting date, leasehold improvements relating to the Parish Hall as well as assets that should be included
in plant and equipment have been reclassified from buildings category to leasehold and plant and equipment
respectively (Note 9). This is to better reflect the nature of the fixed assets as well as to ensure only revalued
assets have been categorised as buildings in line with the accounting policy at Note 1(e). The written down
value of property, plant and equipment at both 31 December 2019 and 31 December 2020 remain the same.
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
22
(n) Significant accounting judgements, estimates and assumptions
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year, are described below. The Company based its assumptions and estimates on
parameters available when the financial statements were prepared. Existing circumstances and assumptions
about future developments, however, may change due to market changes or circumstances arising that are
beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
Revaluation of land and buildings
The Company recognises its land and buildings at fair value, with changes in fair value being recognised in other
comprehensive income. In accordance with the Company’s accounting policy, the Directors re-valued land and
buildings in the current year by engaging an external professional valuer to assess the fair values as at 31
December 2020.
The real estate market and more broadly the Australian economy is being impacted by significant uncertainty
that the COVID-19 outbreak has caused. As at the date of valuation of the land and buildings, there is market
uncertainty resulting in significant valuation uncertainty.
The external professional valuer has referred to this significant valuation uncertainty in their valuation report.
The valuation is based on the information available at the date of the valuation. Whilst the external professional
valuer and the Directors have taken all reasonable steps to estimate the effect on the property, due to the
significant uncertainty in property markets, it is difficult to quantify and assess the impact that the outbreak
has had on land and building values.
Any change in estimates impacts the carrying value of the land and buildings and the fair value adjustment is
recognised in other comprehensive income.
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
23
(o) AASB Standards issued but not yet effective as at 31 December 2020
AASB 2020-1: Amendments to Australian Accounting Standards – Classification of Liabilities as Current or
Non-current liabilities (applicable to annual reporting periods beginning on or after 1 January 2022)
This standard amends AASB 101 Presentation to Financial Statements to clarify the following:
The classification as a non-current liability should be based on the existence of a ‘right’ (as opposed to a
‘discretion’ as it was provided before this amendment) to defer the settlement of the liability for at least
twelve months after the reporting period;
The term ‘settlement’ includes issue of equity instruments in exchange of extinguishment of a financial
liability and such a settlement does not impact the classification of the liability as current or non-current;
and
Classification of a liability is unaffected by the likelihood that the entity will exercise its right to defer
settlement of the liability for at least twelve months after the reporting period.
The application of these amendments when effective is retrospective by restatement of prior periods.
Earlier application is permitted.
The AASB is proposing to defer the effective date of AASB 2020-1 by one year to annual reporting periods
beginning 1 January 2023 via ED 301.
AASB 2020-3: Amendments to Australian Accounting Standards – Annual Improvements 2018-2020 and
Other Amendments (applicable to annual reporting periods beginning on or after 1 January 2022 with
earlier application permitted)
This standard amends:
(a) AASB 9 Financial Instruments to clarify the fees an entity includes when assessing whether the terms
of a new or modified financial liability are substantially different from the terms of the original financial
liability;
(b) AASB 116 Property, Plant and Equipment to require an entity to recognise the sales proceeds from
selling items produced while preparing property, plant and equipment for its intended use and the
related cost in profit or loss, instead of deducting the amounts received from the cost of the asset;
(c) AASB 137 Provisions, Contingent Liabilities and Contingent Assets to specify the costs that an entity
includes when assessing whether a contract will be loss-making; and
(d) AASB 141 Agriculture to remove the requirement to exclude cash flows from taxation when measuring
fair value, thereby aligning the fair value measurement requirements in AASB 141 with those in other
Australian Accounting Standards.
This standard is not expected to materially impact the financial statements of the entity (or group).
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
24
3. Revenue
2020 2019$ $
Tuition fees 18,412,488 20,055,432Government grants 4,936,765 4,842,853Interest received 271,632 563,300Government subsidies received 2,996,981 -Other income 589,910 1,009,378
27,207,776 26,470,963
4. Surplus for the year
Surplus for the year has been arrived at after charging the following items of expense:
2020 2019$ $
Remuneration of the auditors:Auditing the financial reports 23,561 31,029
Bad and doubtful debtsBad debts written off 290 27,678
5. Cash and cash equivalents
2020 2019$ $
Cash on hand 1,558 1,563Cash at bank 727,129 1,285,171Short term deposits 25,700,000 24,000,000
26,428,687 25,286,734
6. Trade and other receivables
2020 2019$ $
Trade receivables 457,168 359,916Provision for doubtful debts (75,000) (75,000)
382,168 284,916
Other receivables 90,036 106,725472,204 391,641
7. Other assets
2020 2019$ $
Prepayments 556,848 276,289
8. Investment property
2020 2019$ $
Investment property 2,553,714 -
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
25
9. Property, plant and equipment
Land Buildings Leasehold Plant &
Equipment Capital WIP Total
$ $(restated)
$(restated)
$ (restated)
$ $
Gross carrying amount Balance at 1 January 2019 42,400,000 53,355,207 810,946 10,976,526 3,538,952 111,081,631 Additions - 3,513,608 89,560 718,192 320,343 4,641,703 Disposals - - - (4,292) - (4,292)Transfer - 3,454,175 - - (3,454,175) - Balance at 31 December 2019 42,400,000 60,322,990 900,506 11,690,426 405,120 115,719,042
Depreciation and impairment Balance at 1 January 2019 - (1,355,042) (388,629) (7,287,368) - (9,031,039)Disposals - - - - - Depreciation - (1,349,138) (109,756) (528,936) - (1,987,830)Balance at 31 December 2019 - (2,704,180) (498,385) (7,816,304) - (11,018,869)
Carrying amount 31 December 2019
42,400,000 57,618,810 402,121 3,874,122 405,120 104,700,173
Gross carrying amountBalance at 1 January 2020 42,400,000 60,322,990 900,506 11,690,426 405,120 115,719,042 Additions - 289,445 - 537,090 331,873 1,158,408 Disposals - - - (29,166) - (29,166)Transfer - 49,354 - 253,039 (302,393) - Write back of cost base - (4,216,809) - - - (4,216,809) Revaluation increase/(decrease) 1,700,000 (1,144,980) - - - 555,020 Balance at 31 December 2020 44,100,000 55,300,000 900,506 12,451,389 434,600 113,186,495
Depreciation and impairment Balance at 1 January 2020 - (2,704,180) (498,385) (7,816,304) - (11,018,869)Write back of depreciation - 4,216,809) - 17,038 - 4,233,847Depreciation - (1,512,629) (112,563) (546,676) - (2,171,867)Balance at 31 December 2020 - - (610,948) (8,345,941) - (8,956,889)
Carrying amount 31 December 2020
44,100,000 55,300,000 289,558 4,105,448 434,600 104,229,606
Right to Use Assets: Buildings Equipment Total Carrying amount 31 December 2019 95,587 149,121 244,708 Additions - - - Depreciation (27,311) (86,236) (113,547) Carrying amount 31 December 2020 68,276 62,885 131,161
Total property, plant and equipment at 31 December 2019 104,944,881
Total property, plant and equipment at 31 December 2020 104,360,767
The company has no contractual commitments for construction works at 31 December 2020 (2019:$nil).
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
26
10. Trade and other payables
2020 2019$ $
CurrentTrade payables 479,395 442,844Lease liabilities 91,487 112,919Payable to affiliated bodies 275,416 278,187
846,298 833,950
Non-currentLease liabilities 43,435 135,021
11. Contract liabilities
2020 2019$ $
CurrentTuition fees received in advance 4,782,137 4,984,429Tuition fees prepaid 1,684,774 1,415,238
6,466,911 6,399,667
12. Provisions
2020 2019$ $
CurrentEmployee entitlements 2,426,200 2,156,901
Non-currentEmployee entitlements 447,400 464,369
13. Reserves
2020 2019$ $
Land and buildings revaluation reserve 49,706,582 49,151,562General reserves 536,165 538,256
50,243,748 49,689,818
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
27
14. Reconciliation of cash flows from operating activities
2020 2019$ $
Cash flows from operating activitiesNet surplus before income tax 2,677,320 1,435,206Non-cash flows in operating surplus
Depreciation 2,285,414 2,100,888
Loss/(surplus) on sale of assets (4,872) 3,460
Net changes in working capital
Change in trade and other receivables (80,564) 21,330
Change in other assets (280,559) 171,184
Change in trade and other payables andcontract liabilities
103,795 410,627
Change in provisions 252,330 (10,164)
Net cash from operating activities 4,952,864 4,132,531
15. Commitments
Defined benefit superannuation plan
The School currently maintains a defined benefit superannuation plan with Mercer. Given the School does not
need to comply with AASB 119: Employee Benefits, the defined benefit superannuation plan is not recorded on
the School’s balance sheet, to the extent it is not a liability as described in note 1.
Based on the actuarial summary at year-end the School’s position is as follows:
2020 2019$’000 $’000
Defined benefits onlyAssets 8,596 8,698Vested Benefits 6,882 6,832Surplus in fund 1,714 1,866
16. Related party transactions
Transactions between related parties are on normal commercial terms and conditions no more favourable that
those available to other parties unless otherwise stated. No Director received any compensation during the
financial year.
The following Directors had children or grandchildren attending the school and, as such, pay tuition and other
school fees to the school:
Prof R Hoye
Mr A Hore
Mrs R Rosedale
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
28
17. Member’s guarantee
Ivanhoe Girls’ Grammar School is incorporated under the Corporations Act 2001 and is a Company limited by
guarantee. If the Company is wound up, the Memorandum of Association states that each member is required
to contribute a maximum of $100 each towards meeting any outstanding obligations of the company. At 31
December 2020, the number of members was 331 (2019: 358).
Ivanhoe Girls’ Grammar School ABN 77 004 098 748
29
Directors’ Declaration
1. In the opinion of the Directors of Ivanhoe Girls’ Grammar School:
a) The financial statements and notes of Ivanhoe Girls’ Grammar School are in accordance with the
Australian Charities and Not-for-profits Commission Act 2012, including:
i) Giving a true and fair view of its financial position as at 31 December 2020 and of its
performance for the financial year ended on that date; and
ii) Complying with Australian Accounting Standards (including the Australian Accounting
Interpretations) and the Australian Charities and Not-for-profits Commission Regulation 2013;
and
b) There are reasonable grounds to believe that Ivanhoe Girls’ Grammar School will be able to pay its debts
as and when they become due and payable.
Signed in accordance with a resolution of the Directors.
K F Frost
Chair
K M Haynes
Treasurer
Ivanhoe, 30th March 2021
Brisbane Level 14 12 Creek Street Brisbane QLD 4000 T + 61 7 3085 0888
Melbourne Level 10 530 Collins Street Melbourne VIC 3000 T + 61 3 8635 1800 F + 61 3 8102 3400
Sydney Level 8 167 Macquarie Street Sydney NSW 2000 T + 61 2 8059 6800 F + 61 2 8059 6899
ShineWing Australia ABN 39 533 589 331. Liability limited by a scheme approved under Professional Standards Legislation. ShineWing Australia is an independent member of ShineWing International Limited.
shinewing.com.au
Take the lead
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF IVANHOE GIRLS’ GRAMMAR
SCHOOL LIMITED
Opinion
We have audited the financial report of Ivanhoe Girls’ Grammar School Limited (the Company), which comprises
the statement of financial position as at 31 December 2020, the statement of comprehensive income, the statement
of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of Ivanhoe Girls’ Grammar School Limited is in accordance with
Division 60 of the Australian Charities and Not-for-profits Commission Act 2012, including:
a. giving a true and fair view of the Company’s financial position as at 31 December 2020 and of its financial
performance for the year then ended, and
b. complying with Australian Accounting Standards to the extent described in Note 1 and Division 60 of the
Australian Charities and Not-for-profits Commission Regulation 2013.
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 are independent of the Company in accordance with the auditor independence requirements of the
Australian Charities and Not-for-profits Commission Act 2012 and the ethical requirements of the Accounting
Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including
Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter – Basis of Accounting
We draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report
has been prepared for the purpose of fulfilling the directors’ financial reporting responsibilities under the Australian
Charities and Not-for-profits Commission Act 2012. As a result, the financial report may not be suitable for another
purpose. Our opinion is not modified in respect of this matter.
Emphasis of Matter – Valuation uncertainty
We draw attention to Note 1(n) of the financial report which sets out that the land and buildings have been valued
using estimates at a time of significant valuation uncertainty given COVID-19. Any change in estimates impacts the
carrying value of the land and buildings and the fair value adjustment is recognised in other comprehensive
income. Our opinion is not modified in respect of this matter.
30
Take the lead
Responsibilities of the Directors 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 and have determined that the basis of preparation described in Note 1 to the financial report is appropriate to
meet the requirements of the Australian Charities and Not-for-profits Commission Act 2012 and is appropriate to
meet the needs of the members. The directors’ responsibility also includes such internal control as the directors
determine is necessary to enable the preparation of the financial report that gives a true and fair view and 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 to cease operations, or has no realistic
alternative but to do so.
Auditor’s Responsibilities 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 Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause
the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
31
Take the lead
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
ShineWing Australia
Chartered Accountants
Hayley Underwood
Partner
Melbourne, 31 March 2021
32
Recommended