Annual Report 2014 - Parliament of New South Wales

Annual Report 2014VOLUME 2: CONTROLLED ENTITIES FINANCIAL STATEMENTS

2 Macquarie University Annual Report 2014

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Macquarie University Annual 2014 Report - Volume 2

Controlled Entities

Annual Financial Statements

For the year ended 31 December 2014

Page 1

Table of contents

Access Macquarie Limited 3

Australian Proteome Analysis Facility Limited 35

CMBF Limited 59

Macquarie Education South Africa NPC 87

Macquarie University Property Investment Company Pty Limited 101

Macquarie University Property Investment Trust 117

MGSM Limited 131

MUH Operations Pty Ltd 165

MUH Operations No.2 Pty Limited 181

MUPH Clinic Pty Limited 217

Risk Frontiers Flood (Australia) Pty Limited 233

Risk Frontiers Group Pty Limited 265

U@MQ Limited 297

The following entities have received NSW Treasury relief from preparing financial statements for the year ended 31 December 2014:

• COH Property Trust • Macquarie University Property Investment Company No. 3 Pty Limited • MUPH Hospital Pty Limited

MU Hospital Pty Ltd was de-registered during 2014 and consequently no accounts have been prepared.

During 2014, the 77% investment in LAMS International Pty Ltd was sold to the minority shareholder, LD Education Services Pty Ltd. As part of that divestment, the University also resigned as the member of LAMS Foundation Ltd. The University has no ongoing interest in either of these companies, and no accounts have been prepared.

Page 2

Access Macquarie LimitedABN 59 003 849 198

Financial StatementsFor the Year Ended 31 December 2014

Page 3


ContentsFor the Year Ended 31 December 2014

Page

Financial StatementsDirectors' Report 1Auditors Independence Declaration under Section 307C of the Corporations Act 2001 5Statement of Comprehensive Income 6Statement of Financial Position 7Statement of Changes in Equity 8Statement of Cash Flows 9Notes to the Financial Statements 10Directors' Declaration 27Independent Audit Report 28

Page 4


Directors' Report31 December 2014

The directors present their report on Access Macquarie Limited for the financial year ended 31 December 2014.

1. General information

Directors

The names of each person who has been a Director during the year and to the date of this report are:Mr P John Gorman

Qualifications BBus, MBA, FCPA.Experience Appointed Chief Financial Officer of Macquarie University in September

2007. Previous experience as the Chief Financial Officer for a NSW StateOwned Corporation operating in the waste management industry; ChiefFinancial Officer and, in some instances, Company Secretary, for severalpublicly-listed entities in industries involved in manufacturing, transportand logistics. In the 20 years prior to this, he held senior finance positionsin the oil industry, in sectors ranging from refining and distribution toexploration and development. Strengths in the areas of capital raising anddebt structure, investment management, financial and managementreporting and organisational change.

Areas of Responsibility Executive Director

Janet Greely

Qualifications BSc (Hons), an MA and a PhD in Psychology.Experience Professor Janet Greeley has an enviable track record as a university

researcher and administrator, and is now Executive Dean of the Faculty ofHuman Sciences at Macquarie University. She has extensive experiencein executive management and lists her areas of research interest as thepsychology of addictive behaviour, especially the role of learning in drugtolerance and dependence. Professor Greeley has held academicpositions at the University of New South Wales, James Cook Universityand served on a number of government advisory committees, and a rangeof professional societies. Amongst other memberships, she is arepresentative on the Strategic Policy Advisory Committee of theAustralian Medical Council and she is an alternate member of theHEARing CRC.


Mark Gabbott

Qualifications BA(Hons), MSc, PhD.Experience Mark was appointed Executive Dean of the Faculty of Business and

Economics at Macquarie University, Sydney in 2008. After working ingovernment for 6 years in consumer policy and protection, he joined theUniversity of Stirling as a Research Fellow and completed a Ph.D inMarketing. He was Lecturer and then Senior Lecturer at Stirlingresearching and teaching in the areas of Electronic and Direct Marketing,Services Marketing, Consumer Behaviour and Consumer Policy. Markjoined Monash University in 1997 as Professor and was appointed Headof Department in 2000. He was appointed Deputy Dean, at Monash in2006 and had responsibility for Business Development, and Education.


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Mr Thushyanthan Sathiamoorthy

Qualifications MComm, BComm, CPA.Experience Thushy joined Access Macquarie Limited as Chief Financial Officer in

April 2010. Thushy is a senior finance executive withcorporate experience in a range of industries including IT,telecommunications and R&D. Prior to joining Access MQ,Thushy held senior roles at HP, NICTA, Compaq, Oracle and Nestle.Appointed Managing Director of Access Macquarie Limited on 5 April2011.

Areas of Responsibility Managing Director

Sakkie Pretorius

Qualifications B.Sc.Agric. M.Sc.Agric. Ph.D.Experience Professor Sakkie Pretorius joined Macquarie University in July 2013 to

take up the role of Deputy Vice-Chancellor, Research. He is internationallyrecognised as a pioneer in molecular microbiology and biotechnology, andthe translation of research outcomes to industry.


Jim Lee

Qualifications PhD, P.EngExperience Professor Jim Lee joined Macquarie University as Deputy Vice-Chancellor

(International) in December 2013. Prior to his appointment at MacquarieUniversity, Professor Lee held several administrative portfolios at QueensUniversity, Ontario, Canada including Associate Dean in the Faculty ofArts and Science, Academic Integrity Advisor to the Provost and Vice-Principal (Academic), and Vice-Provost International. His research in thefield of geology and geological engineering has been international inscope, he has published widely in international scholarly scientificjournals, and has collaborated with a variety of national and multinationalindustry partners.


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

Company secretary

Ms Gayathri Wijesurya BCom, LLB held the position of Company Secretary during and at the end of financial year.Gayathri is the solicitor for Macquarie University for the last 6 years and prior to this, she worked as IntellectualProperty and Legal Officer for Access Macquarie Ltd.

Review of operations

The deficit of the Company for this year ended 31 December 2014 was $697,000.(2013 : $1,276,000 surplus)

Principal activities

The principal continuing activities of the Group during the financial year consisted of the management of:

(a) Provision of English language training,

(b) Conducting IELTS tests,

(c) Research projects,

(d) Consulting projects and

(e) The Macquarie Technology Business Incubator.

No significant changes in the nature of the Company's activity occurred during the financial year.

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Short term objectives

The Company's short term objectives are to:

Provide high quality English Preparation Courses for students planning to study at Macquarie University

Increase research revenue, and

Maximise return to Macquarie University.

Long term objectives

The Company's long term objectives are to:

Be recognised as a leader in English language preparation courses,

Increase Macquarie University's 'social impact' footprint, and

Increase Access Macquarie's brand position in emerging markets.

Strategy for achieving the objectives

Access Macquarie's strategy for achieving both its short and long term objectives are to continue investment intechnology, business development, marketing and project management while ensuring appropriate controls are inplace to safeguard the assets of the company.

How principal activities assisted in achieving the objectives

Access Macquarie provided English language training to students from over 40 countries and IELTS testing over19,000 candidates in 2014. Our quality teaching resulted in our students achieving 15% higher grades of the first yearat Macquarie University.

Our continued management of research and consulting projects serves as a vital link between academics andresearchers from Macquarie University and the industry. In 2014, the Access Macquarie Research and Consultingpractice attracted approximately $15 Million in research and consulting engagement.

Performance measures

The company uses internal KPI’s to measure performance on the three revenue streams being student numbers,average revenue per student, average duration per student for CME; the IELTS test centre bases performancemeasurements around the number of applicants sitting each exam and the internal cost per applicant; while CRTmeasures performance based on tender success rates and client satisfaction levels.

Environmental regulations

The company is not subject to any significant environmental regulations.

Likely Developments and expected results of operations

Future developments are not expected to significantly affect the future operations of the company.

Members guarantee

Access Macquarie Limited is a company limited by guarantee, has no share capital and declares no dividends.In theevent of, and for the purpose of winding up of the company, the amount capable of being called up from eachmembers and any person or association who ceased to be a member in the year prior to the winding up, is limited to$1 for members that are corporations and $1 for all other members, subject to the provisions of the company'sconstitution.

Indemnification of Directors and Officers

During the financial year, Macquarie University paid a premium on behalf of the Company in respect of a contractinsuring the Directors of the Company, Company Secretary and all executive officers of the Company against a liabilityincurred as a director, secretary or executive officer to the extent permitted by the Corporations Act 2001 and inaccordance with the terms and conditions the protection provides.

Significant changes in the state of affairs

No significant change in the nature of these activities occurred during the year.

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Page 8

Page 9


Statement of Profit or Loss and Other Comprehensive IncomeFor the Year Ended 31 December 2014

Note

2014

$'000

2013$'000

Revenue from continuing operations

Fees and charges 2(a) 18,346 17,686Consulting 7,882 6,532Royalties,trademarks and licences 221 204Grants and contributions 6,648 8,487Investment revenue 2(b) 474 512

Total revenue from continuing operations 33,571 33,421

Expenses

Employee benefits expense 3(a) (20,948) (20,279)Depreciation, amortisation expense 3(b) (318) (337)Agent Commission (4,756) (4,161)Macquarie University redirection and department fee (1,119) (445)Rental (1,379) (1,267)Travel expenditure (881) (904)Professional services (862) (553)Printing and stationery (200) (241)Consultancies (621) (1,460)Other operating expenses (2,509) (2,041)Accommodation (588) (379)Finance costs 3(c) (87) (78)

Total expenses from continuing operations (34,268) (32,145)

Surplus/(deficit) before income tax (697) 1,276Income tax expense - -

Surplus/(deficit)from continuing operations (697) 1,276Other comprehensive income for the year, net of tax - -

Total comprehensive income for the year (697) 1,276

Total comprehensive income for the year attributable to:

Owners of Access Macquarie Limited (697) 1,276

The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with theaccompanying notes.

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Page 10


Statement of Financial PositionAs at 31 December 2014

Note

2014

$'000

2013$'000

ASSETS

Current assets

Cash and cash equivalents 4 14,056 14,064Trade and other receivables 5 1,263 996Total current assets

15,319 15,060Non-current assets

Property, plant and equipment 6 556 771Other financial assets - -Intangible assets 7 768 -Total non-current assets

1,324 771Total assets

16,643 15,831

LIABILITIES

Current liabilities

Trade and other payables 8 6,507 5,246Short-term provisions 9 2,277 2,195Other liabilities 10 1,432 1,260Total current liabilities

10,216 8,701Non-current liabilities

Long-term provisions 9 577 529Other liabilities 10 - 54Total non-current liabilities

577 583Total Liabilities

10,793 9,284NET ASSETS

5,850 6,547

EQUITY

Retained earnings 11 5,850 6,547

5,850 6,547TOTAL EQUITY

5,850 6,547

The above Statement of Financial Position should be read in conjunction with the accompanying notes.

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Page 11


Statement of Changes in EquityFor the Year Ended 31 December 2014

2014

Note

RetainedEarnings

$'000

Total

$'000

Balance at 1 January 2014 6,547 6,547

Total comprehensive income for the year 11 (697) (697)

Transactions with owners as owners - -

Balance at 31 December 2014 5,850 5,850

2013

Note

RetainedEarnings

$'000

Total

$'000


Total comprehensive income for the year 11 1,276 1,276

Transactions with owners as owners - -


The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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Page 12


Statement of Cash FlowsFor the Year Ended 31 December 2014

Note

2014

$'000

2013$'000

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers 36,218 35,681Payments to suppliers and employees (35,829) (34,576)Interest received 474 512Net cash provided by (used in) operating activities 18

863 1,617

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property, plant and equipment (103) (517)Payment for intangible assets (768) -Net cash used by investing activities

(871) (517)

CASH FLOWS FROM FINANCING ACTIVITIES:

Net cash used by financing activities- -

Net increase (decrease) in cash and cash equivalents held (8) 1,100Cash and cash equivalents at beginning of year 14,064 12,964Cash and cash equivalents at end of financial year 4

14,056 14,064

The above Statement of Cash flows should be read in conjunction with the accompanying notes.

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Notes to the Financial StatementsFor the Year Ended 31 December 2014

1 Summary of Significant Accounting Policies

(a) Basis of preparation

The principal accounting policies adopted in the preparation of these financial statement is set out below.Thease policies have been consitently applied for all years reported unless otherwise stated.

These general purpose financial statements have been prepared in accordance with Australian AccountingStandards, the Corporations Act 2001, Division 60 of the Australian Charities and Notforprofits Commission Act2012, and Division 60 of the Australian Charities and Notforprofits Commission Regulation 2013 , Section41B(1) of the Public Finance & Audit Act 1983, Public Finance and Audit Regulations 2010, other authoritativepronouncements of the Australian Accounting Standards Board and Urgent Issues Group Interpretations. Thedirectors have determined that the company is a not for profit entity for financial reporting purposes. AccessMacquarie Ltd is 100% wholly owned by Macquarie University, which is a not-for-profit entity. Access MacquarieLtd has exercised its option under AASB 2011-5 not to prepare consolidated financial statements for AccessMacquarie Ltd. Risk frontiers Flood (Australia) Pty Ltd is 100% wholly owned subsidiary of Risk Frontiers GroupPty Ltd which in turn is 100% wholly owned subsidiary of Access Macquarie Ltd.

Compliance with IFRS

The financial statements and notes of the consolidated entity comply with Australian Accounting Standardssome of which contain requirements specific to not-for-profit entities that are inconsistent with InternationalFinancial Reporting Standards (IFRS) requirements.

Historical cost convention

These financial statements have been prepared under the historical cost convention, as modified by therevaluation of available-for-sale financial assets, financial assets and liabilities (including derivative instruments)at fair value through profit or loss, certain classes of property, plant and equipment and investment property.

Critical accounting estimates

(i) Significant accounting judgement

In the preparation of financial statements, management is required to make judgements, estimates andassumptions about the carrying values of assets and liabilities that are not readily apparent from their sources.The estimates and associated assumptions are based on historical experience and various other factors thatare believed to be reasonable under the circumstances, the results of which form the basis of making thejudgements. Actual results may vary from these estimates.

Key judgements are disclosed as part of the accounting policies notes.

(ii) Significant accounting estimates and assumptions

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accountingestimates are recognised in the period in which the estimate is revised if the revision affects only that period, orin the period of the revision and future periods if the revision affects both current and future periods. Judgementmade by management in the application of the Australian Accounting Standards that have significant effects onthe financial statements and estimates, with a significant risk of material adjustments in the next year aredisclosed, where applicable, in the relevant notes to the financial statements. The financial statements aregeneral purpose financial statements that have been prepared in accordance with Australian AccountingStandards, Australian Accounting Interpretations, other authoritative pronouncements of the AustralianAccounting Standards Board and the Corporations Act 2001.

Rounding of amounts

The Company is an entity to which ASIC Class Order 98/100 applies and, accordingly, amounts in the financialstatements and Directors' Report have been rounded to the nearest thousand dollars.

(b) Foreign currency transactions and balances

Functional and presentation currency

The functional currency of each of Access Macquarie Limited's entities is measured using the currency of theprimary economic environment in which that entity operates. The financial statements are presented inAustralian dollars which is the parent entity's functional and presentation currency.

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1 Summary of Significant Accounting Policies continued

Transaction and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing atthe dates of the transactions. Foreign exchange gains and losses resulting from the settlement of suchtransactions and from the traslation at year -end exchange rates of monetary assets and liabilities denominatedin foreign currencies are recognised in the statement of comprehensive income.

(c) Revenue and other income

Revenue is recognised at the fair value of the consideration received or receivable. Amounts disclosed asrevenue are, trade allowances, rebates and amounts collected on behalf of third parties.The Group recognisesrevenue when the amount of revenue can be reliably measured, it is probable that future economic benefits willflow to the entity and specific criteria have been met for each of the Company's activities as described below.The company bases its estimates on historical results, taking into consideration the type of customer, the typeof transaction and the specifics of each arrangement.

Revenue is recognised for the major business activities as follows:

Revenue on projects is recognised by reference to the stage of completion of the project. The stage ofcompletion is determined on a project-by-project basis with reference to labour costs/ direct costs incurred on aproject in addition to underlying contracts and achievement of project milestones.

Interest revenue is recognised as interest accrues using the effective interest method.

Revenue from The Macquarie University English Language Centre main form of income being Student TuitionFee income is recognised when the student commences their tuition.

Royalty income is recognised in accordance with the substance of the relevant agreement.

Government grants are recognised based on a cash basis.

(d) Leases

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Companyas lessee are classified as operating leases (note 9). Under the requirements of AASB 117, lease paymentsunder an operating lease shall be recognised as an expense on a straight-line basis over the lease term unlessanother systematic basis is more representative of the time pattern of the user's benefit, even if the paymentsare not on that basis.

(e) Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquidinvestments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shownwithin short-term borrowings in current liabilities on the statement of financial position.

(f) Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using theeffective interest method, less provision for impairment. Trade receivables are generally due for settlementwithin 30 days. Recognising receivables original invoice amount is not materially different from amortised costdue to their short term nature. Trade receivables are carried at amount due. Bad debts are written off during theyear in which they are identified and provision for doubtful debts is created based on a review of all outstandingamounts periodically or at year end. The amount of the impairment loss is recognised in the statement ofcomprehensive income within other expenses. Subsequent recoveries of amounts previously written off arecredited against other expenses in the statement of comprehensive income.

(g) Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits and annual leave are measured at theamounts expected to be settled within 12 months after the end of the period in which the employees render therelated service are recognised in respect of employees' services up to the end of the reporting period. Liabilitiesfor accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable.

(ii) Other long-term employee benefit obligations

The liability for long service leave and annual leave which is not expected to be settled within 12 months after11

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1 Summary of Significant Accounting Policies continuedthe end of the period in which the employees render the related service is recognised in the provision foremployee benefits and measured as the present value of expected future payments to be made in respect ofservices provided by employees up to the end of the reporting period. Consideration is given to expected futurewage and salary levels, experience of employee departures and periods of service. Expected future paymentsare discounted using market yields at the end of the reporting period on national government bonds with termsto maturity and currency that match, as closely as possible, the estimated future cash outflows.

(iii) Retirement benefit obligations

All employees of the Group are entitled to benefits from the Group's superannuation plan on retirement,disability or death. The defined contribution section receives fixed contributions from the Group and the Group'slegal or constructive obligation is limited to these contributions. Defined superannuation contributions arerecognised as an expense as they become payable. Prepaid contributions are recognised as an asset to theextent that a cash refund or a reduction in the future payments is available.

The adoption of the revised AASB119 during 2013 has not had a material impact on the financial statements.Prior year results have not been restated.

(h) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurredis not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition ofthe asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount ofGST recoverable from, or payable to, the taxation authority is included with other receivables or payables in thestatements of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing orfinancing activities which are recoverable from, or payable to the taxation authority, are presented as operatingcash flows.

(i) Property, plant and equipment

Freehold land and buildings that have been contributed at no cost, or for nominal cost are valued andrecognised at the fair value of the asset at the date it is acquired.

Plant and equipment that have been contributed at no cost, or for nominal cost are valued and recognised atthe fair value of the asset at the date it is acquired.

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

Fixed asset class Depreciation rate

Plant and Equipment 33.33%Furniture, Fixtures and Fittings 10%Motor Vehicles 25%Computer Equipment 33.33%Computer Software 25%Leasehold improvements 33.33%

(j) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of financialyear which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

(k) Impairment of assets

As a not-for-profit entity with no cash generating units, the consolidated entity is effectively exempted fromAASB 136 Impairment of Assets and impairment testing. This is because AASB 136 modifies the recoverableamount test to the higher of the fair value less costs to sell and depreciated replacement cost. This means thatfor an asset already measured at fair value impairment can only arise if selling costs are material. Selling costsare regarded as immaterial.

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(l) Intangible Assets

Research and development

Expenditure during the research phase of a project is recognised as an expense when incurred. Developmentcosts are capitalised only when technical feasibility studies identify that the project will deliver future economicbenefits and these benefits can be measured reliably.

The expenditure capitalised includes the cost of materials, direct labour and overhead costs that are directlyattributable to preparing the asset for its intended use, and capitalised borrowing costs. Other developmentexpenditure is recognised in profit or loss as incurred.

Capitalised development costs are measured at cost less accumulated amortisation and accumulatedimpairment losses.

Development costs have a finite life and are amortised on a systematic basis matched to the future economicbenefits over the useful life of the project .

Costs in relation to web sites controlled by a subsidiary arising from development are recognised as anintangible asset if, and only if, in addition to complying with the general requirements described in AASB138.21for recognition and initial measurement, the subsidiary can satisfy the requirements in AASB138.57. Whenthese criteria cannot be satisfied, all expenditure on developing such a web site shall be recognised as anexpense when incurred. Expenditure on start–up activities is recognised as an expense when incurred.

(m) Provisions

Provisions for legal claims and other obligations are recognised when the company has a present legal orconstructive obligation as a result of past events, it is probable that an outflow of resources will be required tosettle the obligation and the amount has been reliably estimated. Provisions are not recognised for futureoperating losses. Provisions are measured at the present value of management's best estimate of theexpenditure required to settle the present obligation at the reporting date. The discount rate used to determinethe present value reflects current market assessments of the time value of money and the risks specific to theliability.

(n) Income Tax

Access Macquarie Limited is exempt from the payment of tax by virtue of section 50-B of the Income taxAssessment Act 1997. Accordingly, no provision for income tax liability or future income tax benefit has beenincluded in the account.

(o) Adoption of new and revised accounting standards

Certain new accounting standards and interpretations have been published that are not mandatory for 31December 2014 reporting periods and have not yet been applied to the financial statements. The Company'sassessment of the impact of these new standards and interpretations is that they will not materially affect any ofthe amounts recognised in the financial statements or significantly impact the disclosures in relation to theCompany.

(p) Repairs and Maintenance

Repairs and maintenance costs are recognised as expenses as incurred, except where they relate to thereplacement of a component of an asset, in which case, the costs are capitalised and depreciated. Otherroutine operating maintenance, reRepairs and maintenance costs are recognised as expenses as incurred,except where they relate to the replacement of a component of an asset, in which case, the costs arecapitalised and depreciated. Other routine operating maintenance, repair and minor renewal costs are alsorecognised as expenses, as incurredpair and minor renewal costs are also recognised as expenses, asincurred

(q) Comparative amounts

Comparatives are consistent with prior years,unless otherwise stated.

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2 Revenue and Other Income

(a) Fees and charges

2014

$'000

2013$'000

Project revenue 5,443 4,593Tuition and education service revenue 9,980 8,899

Other fees and charges 2,706 3,981-Personnel services income 217 213

Total fees and charges 18,346 17,686

(b) Investment revenue

2014

$'000

2013$'000

Interest from financial assets 474 512

Total investment revenue 474 512

3 Expenses

(a) Employment benefit expense

2014

$'000

2013$'000

Salaries 17,720 16,882Superannuation contributions 1,649 1,504Payroll tax 1,027 994Workers compensation 182 203Annual Leave (17) 249Long service leave 135 282Other 252 165

Total employment benefit expense 20,948 20,279

(b) Depreciation and Amortisation

2014

$'000

2013$'000

Plant and equipment 21 4Motor vehicles 1 13Lease hold fittings 86 70Office furniture and fittings 22 32Computer equipment 188 218

Total depreciation and amortisation 318 337

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(c) Finance costs

Finance cost includes all interest-related expenses. The following amounts have been included in the finance costsline in the statement of profit or loss and other comprehensive income for the reporting periods presented:

2014

$'000

2013$'000

Interest expense 87 78

Total finance costs 87 78

4 Cash and cash equivalents

2014

$'000

2013$'000

Cash at bank and in hand 1,626 1,059Deposits at call 12,430 13,005

Total cash and cash equivalents 14,056 14,064

Deposits at call have a term of 90 days or less and bear fixed interest with a weighted average of 3.42% (2013:3.71%)

(a) Reconciliation of cash

The above figures are reconciled to cash at the end of the financial year as shown in the statement of cashflows asfollows:

2014

$'000

2013$'000

Cash and cash equivalents 14,056 14,064

Balance as per statement of cash flows 14,056 14,064

5 Trade and other receivables

2014

$'000

2013$'000

CURRENT

Trade receivables 449 335Provision for impairment (c) - (18)

Net trade receivables 449 317Prepayments 246 284Accrued income - 124GST receivable 54 20Related party receivable 481 179Interest receivable 33 72

Total current trade and other receivables 1,263 996

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(a) Impairment of receivables

As of 31 December 2014 , trade receivables of $ 346,000 (2013-$170,000 ) were past due but not impaired. Theserelate to a number of independent customers for whom there is no recent history of default. The aging analysis oftrade receivables as follows :

2014

$'000

2013$'000

Up to 3 months 260 118Over 3 months 86 52

Balance at end of the year 346 170

(b) Fair value and credit risk.

Due to the short term nature of these receivables, their carrying amounts are considered to be approximate to theirfair value.

The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class ofreceivables mentioned above. The fair value of securities held for certain trade receivable is insignificant as is thefair value of any collateral sold or repledged. Refer to note 1 for more information on the risk management policy ofthe company and the credit quality of the entity's trade receivables.

(c) Movements in the provision for impairment of receivables are as follows

2014

$'000

2013$'000

At 1 January 18 -Provision for impairment recognised during the year - 47Receivables written off during the year as uncollectable (18) (29)

Total - 18

(d) Impaired receivables

As of 31 December 2014, none of the trade receivables (2013-$18,055) were impaired. The amount of theprovision was 0.(2013-$18,055).The ageing of these receivables as follows.

2014

$'000

2013$'000

Up to 3 months - -Over 3 months - 18

Total - 18

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18

Page 22



7 Intangible Assets

Developmentcosts

$'000

Total

$'000

Year ended 31 December 2014

Additions 768 768

Closing value at 31 December 2014 768 768

Developmentcosts

$'000

Total

$'000


Additions - -

Closing value at 31 December 2013 - -

The Development costs relate to development of HSC online program which is called "Aha Education". This is anonline study resource for Australian high school students which supplements classroom teaching based on the NSWBoard of Studies Syllabus and includes comprehensive interative online learning through videos, animations,simulations, interactive activities, discussion forum and assessments.

8 Trade and other payables

2014

$'000

2013$'000

CURRENT

Trade Payables 1,817 1,781Workers compensation - 7Accrued expense 1,854 1,628Trade Payables-Intercompany 2,836 1,830

Total current Trade and other payables 6,507 5,246

All amounts are short term and the carrying values are considered to be a reasonable approximation of fair value.

19

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9 Provisions

2014

$'000

2013$'000

CURRENT

Long service leave 658 556Other employment related costs 112 255Royalty Provision 150 -Annual leave 1,357 1,384

Total current provisions 2,277 2,195

NON-CURRENT

Long service leave 577 529

Total non-current provisions 577 529

Total provisions 2,854 2,724

(a) Settlement of annual leave provision

The current provision for employee benefits includes accrued annual leave and long service leave. For long service leaveit covers all unconditional entitlements where employees have completed the required period of service and also thosewhere employees are entitled to pro-rata payments in certain circumstances. The entire amount of the provision ispresented as current, since the Group does not have an unconditional right to defer settlement for any of these obligations.However, based on past experience, the Group does not expect all employees to take the full amount of accrued leave orrequire payment within the next 12 months.

2014

$'000

2013$'000

Leave obligations expected to be settled within next 12 months 1,085 1,066Leave obligations expected to be settled after 12 months 272 318

Total 1,357 1,384

(b) Settlement of current long service liability

2014

$'000

2013$'000

Current provisions expected to be settled within next 12 months 297 177Current provisions expected to be settled after 12 months 361 379

Total 658 556

20

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10 Other liabilities

2014

$'000

2013$'000

CURRENT

Income received in advance 1,378 1,169Lease liability 54 91

Total current other liabilities 1,432 1,260

NON-CURRENT

Lease Liability - 54

Total non-current other liabilities - 54

Total other liabilities 1,432 1,314

11 Retained earnings

Movements in retained earnings as follows

2014

$'000

2013$'000

Retained earnings

Opening balance 6,547 5,271Surplus for the year (697) 1,276

Retained earnings at the end of the year 5,850 6,547

12 Commitments

Lease commitments- Company as lessee

2014

$'000

2013$'000

Minimum lease payments under non-cancellable operating leases:- not later than one year 966 1,247- between one year and five years 1,303 2,301- later than five years - -

Total future minimum lease payments 2,269 3,548

21

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13 Financial risk management

The Company is exposed to a variety of financial risks through its use of financial instruments.

This note discloses the Company‘s objectives, policies and processes for managing and measuring these risks.TheCompany‘s overall risk management plan seeks to minimise potential adverse effects due to the unpredictability offinancial markets.The most significant financial risks to which the Company is exposed to are described below:

Market risk - currency risk, cash flow interest rate risk and price risk

Credit risk

Liquidity risk

(a) Objectives, policies and processes

Risk management is carried out by the Company’s risk management committee under the delegated power from theBoard of Directors. The Finance Manager has primary responsibility for the development of relevant policies andprocedures to mitigate the risk exposure of the Company, these policies and procedures are then approved by therisk management committee and tabled at the board meeting following their approval. Reports are presented at eachBoard meeting regarding the implementation of these policies and any risk exposure which the Risk ManagementCommittee believes the Board should be aware of.

The Company holds the following financial instruments specific information regarding the mitigation of each financialrisk to which Company is exposed is provided below.

Note

2014

$'000

2013$'000

Financial Assets

Cash and cash equivalents 4 14,056 14,064Trade and other receivables 5 963 692

Total financial assets 15,019 14,756

Financial Liabilities

- Trade and other payables 8 6,061 4,591

Total financial liabilities 6,061 4,591

(b) Liquidity risk

Liquidity risk arises from the Company’s management of working capital and the finance charges and principalrepayments on its debt instruments. It is the risk that the Company will encounter difficulty in meeting its financialobligations as they fall due.

The Company’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when theybecome due. The Company maintains cash and marketable securities to meet its liquidity requirements for up to 30-day periods. Funding for long-term liquidity needs is additionally secured by an adequate amount of committed creditfacilities and the ability to sell long-term financial assets.

The Company manages its liquidity needs by carefully monitoring scheduled debt servicing payments for long-termfinancial liabilities as well as cash-out flows due in day-to-day business.

At the reporting date, these reports indicate that the Company expected to have sufficient liquid resources to meetits obligations under all reasonably expected circumstances and will not need to draw down any of the financingfacilities.

The Company‘s liabilities have contractual maturities which are summarised below: The tables below analyse theGroup's and the parent entity's financial liabilities into relevant maturity groupings as follows:

(a) based on their contractual maturities:

(i) all non-derivative financial liabilities, and

(ii) net and gross settled derivative financial instruments for which the contractual maturities are essential for an

22

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understanding of the timing of the cash flows

(b) based on the remaining period to the expected settlement date:

(i) derivative financial liabilities for which the contractual maturities are not essential for an understanding of thetiming of the cash flows (not applicable to the company in 2014 or 2013)

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 monthsequal their carrying balances as the impact of discounting is not significant.

Less than one year

Between 1 and 5

years Over 5 years Total

2014

$'000

2013

$'000

2014

$'000

2013

$'000

2014

$'000

2013

$'000

2014

$'000

2013

$'000

Trade payables 6,053 4,575 8 16 - - 6,061 4,591

Total 6,053 4,575 8 16 - - 6,061 4,591

(c) Market risk

Most of the Company transactions are carried out in Australian Dollars market prices.The Group is not exposed tomarket risk. The Group has no exposure to foreign currency risk and does not enter into commodity contracts. TheGroup has no investments in listed equity securities and as such is not exposed to price risk.The effect on profit andequity due to a reasonably possible change in risk variable is outlined in the information below, for interest rate risk.A reasonable possible change in risk variable has been determined after taking into account the economicenvironment in which the group operates and the time frame for the assessment (i.e. until the end of next annualreporting period). The sensitivity analysis is based on risk exposures in existence at the balance sheet date.Theanalysis assumes that all other variables remain constant.

(d) Credit risk

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in a financial lossto the Company.As at 31 December 2014, the Company and the parent entity do not have assets and liabilities thatare measured and recognised at fair value meet the requirements of the fair value measurement hierarchy.

Credit risk arises when there is the possibility of the Company's debtors defaulting on their contractual obligations,resulting in financial loss to the Company. The Company does not have any significant exposure to any unrelatedcustomer. Credit risk associated with the Company's financial assets, other than receivables, is managed throughthe selection of counter parties and establishment of minimum credit rating standards.

All trade debtors are recognised as amounts receivable at the reporting rate. Collectability of trade debtors isreviewed on an ongoing basis. Procedures are followed to recover outstanding amounts, including letters ofdemand. Debts which are known to be uncollectable are written off. An allowance for impairment is raised whenthere is objective evidence that the entity will not be able to collect all amounts due. This evidence includes pastexperience and current and expected changes in economic conditions and debtor credit ratings. No interest isearned on trade debtors.

The Company is not materially exposed to concentrations of credit risk to a single receivable or Companyreceivables under financial instruments enter into company.

(e) Fair value estimation

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or fordisclosure purposes. Access Macquarie Limited has adopted the amendment to AASB 7 Financial Instruments:Disclosures which requires disclosure of fair value measurements by level of the following fair value measurementhierarchy:

(a) quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)

(b) inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly(as prices) or indirectly (derived from prices) (level 2), and

(c) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level3)

As at 31 December 2014, the company and the parent entity do not have assets and liabilities that are measuredand recognised at fair value meet the requirements of the fair value measurement hierarchy.

23

Page 27



14 Key management personnel disclosures

(a) Directors

The following persons were directors of Access Macquarie Limited during the financial year.

Mr Thushyanthan Sathiamoorthy

Prof Mark Gabbott

Prof Sakkie Pretorius (appointed on 11th February 2014)

Mr John Gorman

Prof Jim Lee (appointed on 11th February 2014)

Prof Janet Greely (appointed on 11th February 2014)

Prof Jim Piper (resigned on 17th January 2014)

Prof Judyth Sachs (resigned on 12th February 2014)

(b) Key management personnel compensation

The totals of remuneration paid to the key management personnel of Access Macquarie Limited during the year areas follows:

2014

$'000

2013$'000

Short-term employee benefits 571 539

Total key management personnel 571 539

Short term employee benefits include salary, superannuation and short -term bonus payments.

15 Remuneration of auditors

2014

$

2013$

Remuneration of the auditor of the Company,

NSW Audit Office, for:

- Audit of financial statement 56,000 54,600

- Total remuneration for audit and other assuranceservices 56,000 54,600

16 Contingencies

In the opinion of the Directors, the Company did not have any contingent assets or liabilities at 31 December 2014(31 December 2013:None).

17 Related Parties

(a) Parent entity and subsidiaries.

The ultimate parent entity, which exercises control over the Company, is Macquarie University. Access MacquarieLimited has one 100% subsidiary, Risk Frontiers Group Pty Limited. Risk Frontiers Group is the 100% direct parentof Risk Frontiers Flood (Australia) Pty Limited.

(b) Key management personnel

The names of persons who were directors of the Company at any time during the financial year are as follows:

Mr Thushyanthan Sathiamoorthy, Prof Mark Gabbott, Prof Janet Greely, Mr.John Gorman, Prof Sakkie Pretoriusand Prof Jim Lee . All of these persons were also directors during the year ended 31 December 2013 except ProfSakkie Pretorius, Prof Janet Greely and Prof Jim Lee. Prof Judyth Sachs and Prof Jim Piper who were directorsduring 2013 resigned on 12th February 2014 and 17th January 2014 respectively.

24

Page 28



(c) Transactions with related parties

Transactions between related parties are on normal commercial terms and conditions no more favourable than thoseavailable to other parties unless otherwise stated. The following transactions occurred with related parties:

Purchases Sales Receivables Payables

$'000 $'000 $'000 $'000

2014

Macquarie University 3,127 6,436 460 2,882Australian Proteome Analysis Facility Ltd - 196 21 -LAMS International Pty Ltd - - - -MGSM Limited 5 266 - -MUH Operations No.2 Pty Ltd - - - -Risk Frontiers Flood (Australia) Pty Ltd - 618 - -U@MQ Ltd. 113 - - 8

3,245 7,516 481 2,890

2013

Macquarie University 2,359 6,559 148 1,970Australian Proteome Analysis Facility Ltd - 265 50 -LAMS International Pty Ltd - 12 - -MGSM Limited 22 305 - -MUH Operations No.2 Pty Ltd - 4 - -Risk Frontiers Flood (Australia) Pty Ltd - 679 21 -U@MQ Ltd 131 - - 4

2,512 7,824 219 1,974

18 Cash flow information

(a) Reconciliation of result for the year to cash flows from operating activities

Reconciliation of net income to net cash provided by operating activities:

2014

$'000

2013$'000

Surplus/(deficit) for the year (697) 1,276Non-cash flows in profit:

- depreciation 318 337 - impairment of receivables - 18

Changes in assets and liabilities: - (increase)/decrease in trade andother receivables (267) 1,044 - increase/(decrease) in trade andother payables 1,379 (1,818) - increase/(decrease) in provisions 130 760

Cash flow from operations863 1,617

25

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19 Events occurring after the reporting date

The financial report was authorised for issue on by the Board of Directors.

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

20 Members' guarantee

The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If theCompany is wound up, the constitution states that each member is required to contribute a maximum of $1 eachtowards meeting any outstanding obligations of the Company. At 31 December 2014 the number of members was 1(2013: 1).

21 Company details

The registered office of the company is:Access Macquarie Limited3 Innovation RoadMacquarie University NSW 2109

Access Macquarie Limited is a not for profit public company, limited by guarantee, domiciled in Australia and whollyowned by Macquarie University.

END OF AUDITED FINANCIAL STATEMENTS

26

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- This page has been left intentionally blank -

Page 34

Australian Proteome Analysis Facility LimitedABN 81 101 734 098


Page 35



Page

Financial StatementsDirectors' Report 1Auditors Independence Declaration under Section 307C of the Corporations Act 2001 5Statement of Comprehensive Income 6Statement of Financial Position 7Statement of Changes in Equity 8Statement of Cash Flows 9Notes to the Financial Statements 10Directors' Declaration 20Independent Audit Report 21

Page 36



The directors present their report on Australian Proteome Analysis Facility Limited for the financial year ended 31December 2014.


(a) Information on directors

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

Dr John Ballard

Qualifications BSc(Hons 1) PhD DSc.Experience Authored more than 300 research publications, inventor of 10 patents.Special responsibilities Non-executive Chairman of the board.Other current directorships inlisted entities

Director of BR Angels Pty Ltd, BioAngels Inc and Chairman of AdAlta PtyLtd.

Other directorships in listedentities held in the previousthree years

Australian Institute of Commercialisation Ltd, Australian Association ofAngel Investors Inc, and Neubody Pty Ltd.

Professor Sakkie Pretorius

Qualifications BSc, MSc (Agriculture), PhD UFSExperience Internationally recognised pioneer in molecular microbiology and

biotechnology, and the translation of research outcomes to industry.Established a reputation for innovation and was appointed Professor ofMicrobiology in 1993 at Stellenbosch University (SUN). He also becamethe founding Director of South Africa's Institute for Wine Biotechnology atSUN.In USA and Europe, Professor Pretorius also established a reputation forexcellence – He conducted research into molecular yeast genetics at theAlbert Einstein College of Medicine in New York and at the Max PlanckInstitute for Biophysical Chemistry in Göttingen, Germany, and became apart-time professor at the Katholieke Universiteit Leuven in Belgium.In 2003, Professor Pretorius become Director of Research at the AustralianWine Research Institute (AWRI). He was also appointed Affiliate Professorin the School of Agriculture, Food and Wine at the University of Adelaide.In 2004, he became Managing Director and CEO of the AWRI. In 2011, hewas appointed Deputy Vic-Chancellor and Vice-President : Research andInnovation at the University of South Australia - a position which he helduntil the middle of 2013.He is committed to academic excellence that creates value and opportunityfor students, staff, industry and the wider community. He is highlyinterested in authentic leadership principles and has completed anexecutive leadership course at Harvard University in February 2013.

Special responsibilities Appointed Deputy Vice-Chancellor (Research) Macquarie University July2013, & appointed as non-executive director of Australian ProteomeAnalysis Facility Limited on 6 August 2013.

1

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1. General information (continued)

(a) Information on directors (continued)

Associate Professor MarkMolloy

Qualifications BSc (Hons 1) PhD MacquarieExperience Biochemist with over 16 years experience in proteomics, specialising in

separation sciences and quantitative mass spectrometry. Strong interestsin biomedical applications, in particular molecular cancer biology, and isdeveloping methods to quantitatively profile changes in proteinphosphorylation.Previous experience as NHMRC RD Wright fellow and as Senior PrincipalScientist at major US Pharmaceutical company leading a team to identifybiomarkers of new drug entities.

Special responsibilities Executive Facility Director, oversees the operations of the AustralianProteome Analysis Facility.

Mr Thushy Sathimoorthy

Qualifications CPA, MComExperience Thushy Sathimoorthy joined Access Macquarie Limited as Chief Financial

Officer in March 2010 and was appointed as Managing Director in April2011, and Director of APAF in May 2011.Thushy is a senior finance executive with corporate experience in a rangeof industries including IT, telecommunications and R&D. Prior to joiningAccess MQ, Thushy held senior roles at HP, NICTA, Compaq, Oracle andNestle. Thushy is a qualified CPA and holds a Master of Commerce fromMacquarie University.

Special responsibilities Non-executive

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

(b) Company secretary

Mr Robert McLean held the position of Company Secretary during the year and to the date of this report.

(c) Principal activities

The principal activity of Australian Proteome Analysis Facility Limited during the financial year was to provideservices to the Australian Proteome Analysis Facility as per the National Collaborative Research InfrastructureScheme (NCRIS) Facility Service Level Agreement (SLA).


(d) Review of operations

The deficit for the year ended 31 December 2014 is $9,362 (2013: $6,089 deficit).

The Company measures its performance by reference to its ability to provide the highest level of technology inproteomics for the Australian biotechnology community, including training scientists and maximising use of thefacility. The Company contributes to KPI's published in the BioPlatforms Australia Limited annual report to theParliament of Australia.

(e) Short term objectives

The Company's short term objectives are to:

Achieve the targets and milestones and contribute to yearly reports to Federal and NSW governments onoutcomes of our research activity.

2

Page 38



1. General information (continued)

(f) Long term objectives

The Company's long term objectives are to:

Establish and maintain the Australian Proteome Analysis Facility, to provide the highest level of technology inproteomics for the Australian biotechnology community, including training scientists and maximising use of thefacility.

(g) Strategy for achieving the objectives

To achieve these objectives, the Company has adopted the following strategies:

Developed a pricing and access policy to provide fair access to all researchers

Monitoring changes in research activity requests in the development of new services

Introduction of instrumentation and/or techniques not previously available

(h) Performance measures

The following measures are used within the Company to monitor performance:

The Company measures its performance by reference to its ability to provide the highest level of technology inproteomics for the Australian biotechnology community, including training scientists and maximising use of thefacility. The Company contributes to KPI's published in the BioPlatforms Australia Limited annual report to theParliament of Australia and reports on achievment of the targets and milestones and contribute to yearly reportsto Federal and NSW governments on outcomes of our research activity.

(i) Significant changes in state of affairs

No significant changes in the Company's state of affairs occurred during the financial year.

(j) Matters subsequent to the end of the financial year

Since the end of the financial year and to the date of this report, there has been no other matter orcircumstance which has arisen which has significantly affected or may significantly affect:

(a) the Company's operations in future financial years, or

(b) the results of those operations in future financial years, or

(c) the Company's state of affairs in future financial years.

(k) Environmental regulation

The Company is not subject to any significant environmental regulations.

(l) Likely developments and expected results of operations

Coupled with the carry forward of funding from the Education Investment Fund from June 2014, and additionalfunding under Collaborative Research Infrastructure Scheme (CRIS) to December 2014, and additional fundingunder National Collaborative Research Infrastructure Scheme (NCRIS) to June 2015 and likely beyond, theCompany is able to maintain the Company's current research capabilities.

Further information on likely developments in the operations of the Company and the expected results ofoperations have not been included in this report because the directors believe it would be likely to result inunreasonable prejudice to the Company.

(m) Members guarantee

Australian Proteome Analysis Facility Limited is a company limited by guarantee, has no share capital and isnot permitted to pay dividends. In the event of, and for the purpose of winding up of the company, the amountcapable of being called up from each members and any person or association who ceased to be a member inthe year prior to the winding up, is limited to $10 for members that are corporations and $10 for all othermembers, subject to the provisions of the company's constitution.

At 31 December 2014 the collective liability of members was $10 (2013: $10).

3

Page 39

Page 40

Page 41


Statement of Comprehensive IncomeFor the Year Ended 31 December 2014

Note

2014

$'000

2013$'000


Fees and Charges 1,112 1,514Interest 23 29Other revenue 18 18


Expenses

Management Fees - Macquarie University (899) (1,217)Management Fees - Access Macquarie Limited (196) (265)Other expenses (67) (85)


(Deficit)/Surplus from continuing operations (9) (6)

Other comprehensive income for the year - -

Total comprehensive income for the year,

attributable to owner of Australian Proteome

Analysis Facility Limited (9) (6)

The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

6

Page 42



Note

2014

$'000

2013$'000

ASSETS

Current assets

Cash and cash equivalents 2 666 925Trade and other receivables 3 142 104Total current assets

808 1,029Total assets

808 1,029

LIABILITIES

Current liabilities

Trade and other payables 4 542 754Total current liabilities

542 754Total liabilities

542 754NET ASSETS

266 275

EQUITY

Retained earnings 5 266 275TOTAL EQUITY

266 275


7

Page 43



2014

Note

RetainedEarnings

$'000

Total

$'000

1 January 2014 275 275

Deficit attributable to members of the entity (9) (9)

Balance at 31 December 2014 266 266

2013

Note

RetainedEarnings

$'000

Total

$'000

1 January 2013 281 281

Deficit attributable to members of the entity (6) (6)



8

Page 44



Note

2014

$'000

2013$'000

Cash flows from operating activities

Receipts from customers 1,190 1,679Payments to suppliers and employees (1,472) (1,647)Interest received 23 28Net cash provided by (used in) operating activities 12

(259) 60

Cash flows from investing activities

Cash flows from financing activities

Net increase (decrease) in cash and cash

equivalents held (259) 60Cash and cash equivalents at beginning of year 925 865Cash and cash equivalents at end of financial year 2

666 925

The above Statement of Cash Flows should be read in conjunction with the accompanying notes.

9

Page 45




(a) Reporting entity

The Australian Protoeme Analysis Facility Limited (the company) is a not-for profit public company limited byguarantee which was incorporated under the Corporations Act 2001 in Australia. The company is wholly ownedby Macquarie University. The registered office of the company is Level 4, Building F7B, Macquarie UniversityNSW 2109 Australia.

The financial statements for the year ended 31 December 2014 have been authorised for issue by the directorsof the company on 26 February 2015.

(b) Basis of Preparation

Material accounting policies adopted in the preparation of these financial statements are presented below andhave been consistently applied unless otherwise stated.

The financial statements are general purpose financial statements that have been prepared on an accrual basisand in accordance with Australian Accounting Standards including Australian Accounting Interpretations, thePublic Finance and Audit Act 1983, the Public Finance and Audit Regulation 2010, the Corporations Act 2001,Division 60 of the Australian Charities and Not-for-profits Commission Act 2012, and Division 60 of theAustralian Charities and Not-for-profits Commission Regulation 2013.


These financial statements comply with Australian Accounting Standards, some of which contain requirementsfor not for profit entities that are inconsistent with International Financial Reporting Statements (IFRS)requirements.


The financial statements 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 andfinancial liabilities.






The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accountingestimates are recognised in the period in which the estimate is revised if the revision affects only that period, orin the period of the revision and future periods if the revision affects both current and future periods.Judgements made by management in the application of the Australian Accounting Standards that havesignificant effects on the financial statements and estimates, with a significant risk of material adjustments inthe next year are disclosed, where applicable, in the relevant notes to the financial statements.


Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economicbenefits associated with the transaction will flow to the Company and specific criteria relating to the type ofrevenue as noted below, has been satisfied.

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

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

Interest revenue

Interest is recognised as it accrues using the effective interest method.10

Page 46



1 Summary of Significant Accounting Policies (continued)

(c) Revenue and other income (continued)

Rendering of services

Revenue in relation to rendering of services is recognised depending on whether the outcome of the servicescan be estimated reliably. If the outcome can be estimated reliably then the stage of completion of the servicesis used to determine the appropriate level of revenue to be recognised in the period.

If the outcome cannot be reliably estimated then revenue is recognised to the extent of expenses recognisedthat are recoverable.

(d) Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquidinvestments with original maturities of three months or less, and bank overdrafts.

(e) Trade Receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using theeffective interest method, less provision for impairment. Trade receivables are generally due for settlementwithin 30 days.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectibleare written off by reducing the carrying amount directly. An allowance account (provision for impairment oftrade receivables) is used when there is objective evidence that the Company will not be able to collect allamounts due according to the original terms of the receivables. Significant financial difficulties of the debtor,probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency inpayments (more than 30 days overdue) are considered indicators that the trade receivable is impaired. Theamount of the impairment allowance is the difference between the asset's carrying amount and the presentvalue of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating toshort term receivables are not discounted if the effect of discounting is immaterial.

The amount of the impairment loss is recognised in the statement of comprehensive income within otherexpenses. When a trade receivable for which an impairment allowance had been recognised becomesuncollectible in a subsequent period, it is written off against the allowance account. Subsequent recoveries ofamounts previously written off are credited against other expenses in the statement of comprehensive income.

(f) Trade and other payables


Fees for Services received in advance are treated as unearned income and classified as liabilities in thestatement of financial position. Services expected to be performed in greater than one year hence are classifiedas non current.

(g) Goods and Services Tax (GST)

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), exceptwhere the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payable are stated inclusive of GST.

The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payablesin the statement of financial position.

Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flowsarising from investing and financing activities which is recoverable from, or payable to, the taxation authority isclassified as operating cash flows.

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(h) Income Tax Exemption

No provision for income tax has been raised as the Company is exempt from income tax under Div 50 of theIncome Tax Assessment Act 1997.

(i) Rounding of amounts

All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency.

(j) Comparative Amounts

Comparatives are consistent with prior years, unless otherwise stated.

Where a change in comparatives has also affected the opening retained earnings previously presented in acomparative period, an opening statement of financial position at the earliest date of the comparative periodhas been presented.

(k) New Accounting Standards and Interpretations

Certain new accounting standards and interpretations have been published that are not mandatory for 31December 2014 reporting periods and have not yet been applied to the financial statements. The Company'sassessment of the impact of these new standards and interpretations is that they will not materially affect any ofthe amounts recognised in the financial statements or significantly impact the disclosures in relation to thecompany.


2014

$'000

2013$'000

Cash at bank and in hand 126 404Deposits at call 540 521

Total Cash and cash equivalents 666 925

Deposits at call have a term of 90 days or less and bear fixed interest with a weighted average of 2.9% (2013 : 3.2%)


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

2014

$'000

2013$'000

Cash and cash equivalents 666 925

Balance as per statement ofcash flows 666 925

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2014

$'000

2013$'000

Current

Trade receivables 146 99Provision for impairment of receivables (a) (4) (3)

Net trade receivables 142 96Amounts receivable from Macquarie University - 8

Total current trade and other receivables 142 104


Reconciliation of changes in the provision for impairment of receivables is as follows:

2014

$'000

2013$'000

Balance at beginning of the year 3 6Additional impairment lossrecognised 1 -Reversal of impairment - (3)

Balance at end of the year 4 3

(b) Credit risk

The Company does not hold any financial assets with terms that have been renegotiated, but which would otherwisebe past due or impaired.

The other classes of receivables do not contain impaired assets.

There are no balances within trade receivables that contain assets that are not impaired and are past due. It isexpected that these balances will be received when due.

The carrying value of trade receivables is considered a reasonable approximation of fair value due to the short-termnature of the balances.

The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable in the financialstatements.


2014

$'000

2013$'000

Current

Accrued expenses 38 30Related Parties 205 452Fees in advance 299 272

Total current trade and other payables 542 754


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5 Retained Earnings

2014

$'000

2013$'000

Retained earnings at the beginning of the financial year 275 281(Deficit)/Surplus for the year (9) (6)

Retained earnings at end of the financial year 266 275

6 Commitments

The Company had no commitments at 31 December 2014 (2013 : $nil).

7 Financial Risk Management


This note discloses the Company‘s objectives, policies and processes for managing and measuring these risks.

The Company‘s overall risk management plan seeks to minimise potential adverse effects due to the unpredictabilityof financial markets.

The Company does not speculate in financial assets.

The most significant financial risks to which the Company is exposed to are described below:

Specific risks

Market risk - currency risk, cash flow interest rate risk and price risk

Credit risk

Liquidity risk

Financial instruments held

2014

$'000

2013$'000

Financial Assets

Cash and cash equivalents 666 925Trade and other receivables* 142 104

Total financial assets 808 1,029


Financial liabilities at amortised costTrade and other payables* 233 468

Total financial liabilities 233 468

*exclude statutory receivables and payables, prepayments and unearned income.

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7 Financial Risk Management (continued)

Liquidity risk

Liquidity risk arises from the Company’s management of working capital. It is the risk that the Company willencounter difficulty in meeting its financial obligations as they fall due.

The Company’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when theybecome due. The Company maintains cash to meet its liquidity requirements for up to 30-day periods.

The Company manages its liquidity needs by carefully monitoring cash-outflows due in day-to-day business.

The Company‘s liabilities have contractual maturities which are summarised below:

Less than 6 months 6 to 12 months 1 to 5 years Carrying amount

2014

$'000

2013

$'000

2014

$'000

2013

$'000

2014

$'000

2013

$'000

2014

$'000

2013

$'000

Trade and Other Payables 233 468 - - - - 233 468

Total 233 468 - - - - 233 468

Market risk

(i) Foreign currency sensitivity

Most of the Company transactions are carried out in Australian Dollars. At the reporting date there were no financialassets or liabilities denominated in foreign currency (2013: nil).

Exposures to foreign exchange rates vary during the year depending on the volume of overseas transactions.Nonetheless, the analysis above is considered to be representative of the Company's exposure to foreign currencyrisk.

(ii) Cash flow interest rate sensitivity

The Company is exposed to interest rate risk as funds are deposited at floating and fixed rates.

The following table illustrates the sensitivity of the net result for the year and equity to a reasonably possible changein interest rates of +1.00% and -1.00% (2013: +1.00%/-1.00%), with effect from the beginning of the year. Thesechanges are considered to be reasonably possible based on observation of current market conditions.

The calculations are based on the financial instruments held at each reporting date. All other variables are heldconstant.

2014 2013

+1.00% -1.00% +1.00% -1.00%

$'000 $'000 $'000 $'000

Cash and cash equivalents

Net results (7) 7 (9) 9Equity (7) 7 (9) 9

Trade and Other Receivables


Trade and Other Payables


15

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Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss tothe Company.

Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions, as well as creditexposure to wholesale and retail customers, including outstanding receivables and committed transactions.

The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the riskof financial loss from defaults. The utilisation of credit limits by customers is regularly monitored by linemanagement. Customers who subsequently fail to meet their credit terms are required to make purchases on aprepayment basis until creditworthiness can be re-established.

Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas.Ongoing credit evaluation is performed on the financial condition of accounts receivable.

Management considers that all the financial assets that are not impaired for each of the reporting dates under revieware of good credit quality, including those that are past due.

The credit risk for liquid funds and other short-term financial assets is considered negligible, since the counterpartiesare reputable banks with high quality external credit ratings.

Price risk

The Company is not exposed to any material commodity price risk.

Fair value estimation

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or fordisclosure purposes.

The Company does not have any financial instruments traded in active or inactive markets, derivatives contracts orlong-term debt instruments, for each of the reporting dates under review.

The carrying value less impairment provision of trade receivables and payables is a reasonable approximation oftheir fair values due to the short-term nature of these instruments.

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8 Key Management Personnel Disclosures

(a) Directors

The names of persons who were directors of the company at any time during the financial year are as follows: Dr John Ballard, Professor Sakkie Pretorius, Associate Professor Mark Molloy, Mr Thushy Sathiamoorthy.

All of these persons were also directors during the year ended 31 December 2013, except for Professor SakkiePretorius who was appointed on 6 August 2013 to replace Professor Jim Piper who resigned on 6 August 2013.

(b) Remuneration of Board Members

The bands of remuneration paid to the key management personnel of Australian Proteome Analysis Facility Limitedduring the year are as follows:

2014 2013

Nil to $9.999 3 3$10,000 to $19,999 - -$20,000 to $29,999 1 1

(c) Totals of remuneration paid

The totals of remuneration paid to the key management personnel of Australian Proteome Analysis Facility Limitedduring the year are as follows:

2014

$'000

2013

$'000

Short term employee benefits 20 20

Total remuneration paid to Key Management Personnel byAustrallian Proteome Analysis Facility Limited 20 20

9 Remuneration of Auditors

2014

$'000

2013$'000

Remuneration of the auditor of theCompany, NSW Audit Office, for:

- Audit of financial statement 16 16

Total remuneration of Auditors 16 16

10 Contingencies

In the opinion of the Directors, the Company did not have any contingencies at 31 December 2014 (31 December2013:None).

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11 Related Parties

The Company's main related parties are as follows:

(a) Entities exercising control over the Group

The ultimate parent entity, which exercises 100% control over the Company, is Macquarie University .


Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity,directly or indirectly, including any director (whether executive or otherwise) of that entity is considered keymanagement personnel.

For details of disclosures relating to key management personnel, refer to Note 8: Key Management PersonnelCompensation.

(c) Other related parties

Other related parties include immediate family members of key management personnel and entities that arecontrolled or significantly influenced by those key management personnel, individually or collectively with theirimmediate family members.

(d) Transactions with related parties

Transactions between related parties are on normal commercial terms and conditions no more favourable than thoseavailable to other parties unless otherwise stated.

The following transactions occurred with related parties:

$'000 $'000 $'000 $'000

P&L Transactions Balance sheet

Revenue Expense Receivable Payable

2014

Access Macquarie Ltd - 196 - 21Macquarie University 152 899 - 184

152 1,095 - 205

2013

Access Macquarie Ltd - 265 - 50Macquarie University 270 1,217 8 402

270 1,482 8 452

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12 Cash Flow Information

(a) Reconciliation of result for the year to cashflows from operating activities


2014

$'000

2013$'000

(Deficit)/Surplus for the year (9) (6)Changes in operating assets andliabilities:

- (increase)/decrease in trade andother receivables (38) 52 - increase/(decrease) in otheroperating liabilities (212) 14

Net cash inflow/(outflow) from operatingactivities (259) 60

13 Events Occurring After the Reporting Date


14 Members' Guarantee

The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. There is oneclass of member and that member is Macquarie University through its delegate, the Deputy Vice Chancellor. If theCompany is wound up, the constitution states that each member is required to contribute a maximum of $10 eachtowards meeting any outstandings and obligations of the Company. At 31 December 2014 the number of memberswas 1 (2013: 1).


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Page 56

Page 57

Page 58

CMBF LimitedABN 46 003 407 609


Page 59



Page

Financial StatementsDirectors' Report 1Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 5Statement of Comprehensive Income 6Statement of Financial Position 7Statement of Changes in Equity 8Statement of Cash Flows 9Notes to the Financial Statements 10Directors' Declaration 23Independent Audit Report 24

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The directors present their report on CMBF Limited for the financial year ended 31 December 2014.


Directors


A. M. CooperQualifications BEC (Hons), PhD, DIP FPAssoc.Experience Anne joined Macquarie University in 2002 with fifteen years of banking experience,

specialising in balance sheet management issues. Anne held executive positionsin the Institutional and Funds Management / Insurance arms of a major AustralianBank. Anne is currently the Deputy Director of the Applied Finance Centre, alecturer in the Master of Applied Finance degree and a member of the AustralianFinancial Markets Association (AFMA) Advisory Board.

Area of responsibilities Executive directorPeriod of directorship Full period

T. M. GabbottQualifications BA (Hons), MSc, PhDExperience Mark Gabbott was appointed Executive Dean of the Faculty of Business and

Economics at Macquarie University in 2008. After working in government for 6years in consumer policy and protection, he joined the University of Stirling as aResearch Fellow and completed PhD in Marketing. He was Lecturer and thenSenior Lecturer at Stirling researching and teaching in the areas of Electronic andDirect Marketing, Services Marketing, Consumer Behaviour and Consumer Policy.Mark joined Monash University in 1997 as Professor and was appointed Head ofDepartment in 2000. He was appointed Deputy Dean at Monash in 2006 and hadresponsibility for Business Development and Education.

Area of responsibilities Non-executive directorPeriod of directorship Full period

P. J. GormanQualifications BBus, MBA, FCPAExperience John Gorman was appointed Chief Financial Officer of Macquarie University in

September 2007. Previous experience as the Chief Financial Officer for a NSWState Owned Corporation operating in the waste management industry, ChiefFinancial Officer and, in some instances, Company Secretary, for several publiclylisted entities in industries involved in manufacturing, transport and logistics. In the20 years prior to this, he held senior finance positions in the oil industry, in sectorsranging from refining and distribution to exploration and development. Strengths inthe areas of capital raising and debt structure, investment management, financialand management reporting and organisational change.

Area of responsibilities Non-executive directorPeriod of directorship Full period

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Directors' Report31 December 20141. General information (continued)

Directors (continued)

K. M. JamesonQualifications BSc (Hons), SF FinExperience Kevin Jameson has extensive experience teaching within the Masters in Applied

Finance program, in addition to over 30 years global experience in the financeindustry. He is a currently a member of the Advisory Council of the Centre forInternational Finance & Regulation, Chair of Benchmarks Committee of theAustralian Financial Markets Association and a member of the Editorial Board ofJASSA: The Finsia Journal of Applied Finance. He has been the Australian Headof Capital Markets, Country Head for Japan and Regional Head of Treasury &Capital Markets for Asia (based in Tokyo) and Global Managing Director of CapitalMarkets (based in London) for a large UK banking and investment group. He hasalso been a Director of the Sydney Futures Exchange (and Chairman of its NewProducts Committee), a Director of and advisor to several private investmentbusinesses, and Chairman of a technology company specialising in products andservices for the wholesale asset management industry, operating in Sydney,Europe and the US.

Area of responsibilities Managing Director, Executive directorPeriod of directorship Full period

P. R. DoddQualifications BComm, DipEd, MComm, MSc, PhDExperience Peter Dodd has over 25 years of senior management experience in both the

private sector and universities. Most recently, Peter was Chief Operating Officerand Deputy Vice-Chancellor at Macquarie University. Prior to that he was ChiefFinancial Officer of North American Energy Partners, which is a New York StockExchange listed construction and mining company operating in the Oil Sands ofNorthern Alberta. Peter had over 20 years in Investment Banking and was GlobalHead of Corporate Finance for ABN Amro. Earlier, he was Professor of Financeand later Dean of Australian Graduate School of Management at the University ofNew South Wales and Associate Professor of Finance at the Graduate School ofBusiness at the University of Chicago. Currently, he is a non-executive director ofInvesta Office Fund, Networks NSW and is Chairman of Macquarie UniversityHospital.

Area of responsibilities Non-executive director, ChairmanPeriod of directorship Full Period

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Directors' Report31 December 20141. General information (continued)

Directors (continued)

S. B. DowtonQualifications MB, BS, MD, FACMG, FRACPExperience Professor S Bruce Dowton is the Vice-Chancellor of Macquarie University. He is a

paediatrician, clinical geneticist, molecular biologist, researcher and academic,and has served as a senior medical executive at a range of universities,healthcare institutions and consulting organisations. Most notably, he served as apaediatrician at the Massachusetts General Hospital for Children, and as ClinicalProfessor of Paediatrics at Harvard Medical School.

Professor Dowton joined the University in September 2012. In early 2013 hebegan a highly consultative process to establish a long-term strategic frameworkfor the University, re-focusing the organisation’s core activities of teaching andresearch around a concept of “a university of service and engagement.” Thedocument resulting from this process, Our University: A Framing of Futures inAugust 2013 emboldens the University’s long-term vision and priorities. Dowton’shighly engaging personal style has since become a hallmark of his Vice-Chancellorship.

Area of responsibilities Non-executive directorPeriod of directorship From 10 April 2014


Company secretary

H. Krskova held the position of Company Secretary during the year and to the date of this report.


The principal continuing activity in the course of the financial year was the provision of Educational Services to theFinance Industry and administration of courses on behalf of Macquarie University.

There were no significant changes in the nature of the Company's activity occurred during the year.


The surplus of the Company for the year ended 31 December 2014 is $155,000 (2013: $365,000).

Significant changes in state of affairs

No significant changes in the Company's state of affairs occurred during the year.

Matters subsequent to the end of the financial year

There has not been any matter or circumstance, other than that referred to in the financial statements or notes thereto,that has arisen since the end of the financial year, that has significantly affected, or may significantly affect, theoperations of the company, the results of the operation, or the state of affairs of the company in future financial years.

Environmental regulations

The company is not subject to any significant environmental regulations.

Likely developments and expected results of operations

Further information on likely developments in the operations of the company and the expected results of operationshave not been included in these financial statements because the directors believe it would be likely to result inunreasonable prejudice to the company.

Members guarantee

CMBF Limited is a company limited by guarantee. In the event of, and for the purpose of winding up of the company,the amount capable of being called up from each member and any person or association who ceased to be a memberin the year prior to the winding up, is not to exceed $20 for each member, subject to the provisions of the company'sconstitution.

3

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Page 64

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Note2014$'000

2013$'000

Revenue from continuing operationsAdministration Charges to Macquarie University 2,888 2,797Other fees and charges 253 340Interest received 42 93


Expenses from continuing operationsEmployee benefits expense 2 (2,120) (2,196)Depreciation and amortisation expense (16) (12)Other expenses 3 (892) (657)


Surplus from continuing operations 155 365


Total comprehensive income for the year,attributable to owners of CMBF Limited 155 365


6

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Note2014$'000

2013$'000

ASSETSCurrent assets

Cash and cash equivalents 4 1,614 1,345Trade and other receivables 5 55 184Other financial assets 6 1,232 1,232

Total current assets2,901 2,761

Non-current assetsPlant and equipment 7 29 27

Total non-current assets29 27

Total assets2,930 2,788

LIABILITIESCurrent liabilities

Trade and other payables 8 106 87Borrowings 9 - 21Provisions 10 178 164Other liabilities 11 1 27

Total current liabilities285 299

Non-current liabilitiesProvisions 10 71 70

Total non-current liabilities71 70

Total liabilities356 369

Net assets2,574 2,419

EQUITYAccumulated funds 12 2,574 2,419

Total equity2,574 2,419


7

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2014

Accumulatedfunds

$'000

Total

$'000


Surplus attributable to members of the entity 155 155

Total comprehensive for the year 155 155


2013

Accumulatedfunds$'000

Total$'000


Surplus attributable to members of the entity 365 365

Total comprehensive for the year 365 365



8

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Note2014$'000

2013$'000

Cash flows from operating activitiesReceipts from customers 3,231 3,351Payments to suppliers and employees (3,015) (3,037)Interest received 92 93

Net cash provided by / (used in) operatingactivities

19308 407

Cash flows from investing activitiesPayments for plant and equipment 7 (18) (25)

Net cash provided by / (used in) investingactivities (18) (25)

Cash flows from financing activitiesPayments for financial assets 6 - (1,232)

Net cash provided by / (used in) financingactivities - (1,232)

Net increase (decrease) in cash and cashequivalents held 290 (850)

Cash and cash equivalents at beginning of year 1,324 2,174Cash and cash equivalents at end of financialyear

41,614 1,324


9

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(a) Reporting Entity

CMBF Limited (the company) is a not-for-profit public company limited by guarantee, which was incorporatedunder the Corporations Act 2001 in Australia. The company is wholly owned by Macquarie University.

The registered office of the company is CMBF Limited, Room 724, Building E4A, Macquarie University NSW2109.

As of the 27 January 2012, CMBF Limited established a 100% owned subsidiary Macquarie Education SouthAfrica NPC (MESA). MESA is a not for profit company (NPC) established under the Companies Act 2008, of theRepublic of South Africa (RSA).

MESA was established for the initial purpose of applying for regulatory approvals in connection with the deliveryof the Masters of Financial Regulation program in the Republic of South Africa. MESA has not traded sinceinception. On 8 August 2014, the sole member (CMBF Limited) of MESA resolved to authorise the directors ofMESA to proceed with deregistration. As at 31 December 2014 the deregistration process was ongoing.

CMBF Limited have exercised their option under AASB2011-5 not to prepare consolidated financial statementsfor CMBF Limited.

The financial statements for the year ended 31 December 2014 have been authorised for issue by the directorsof the company on 19 March 2015.


Material accounting policies adopted in the preparation of these financial statements are presented below andhave been consistently applied unless otherwise stated.

The financial statements are general purpose financial statements that have been prepared on an accruals basisand in accordance with Australian Accounting Standards including Australian Accounting Interpretations, thePublic Finance and Audit Act 1983, Public Finance and Audit Regulation 2010, the Corporations Act 2001,Division 60 of the Australian Charities and Not-for-profits Commission Act 2012 and Division 60 of the AustralianCharities and Not-for-profits Commission Regulation 2013.


These financial statements comply with Australian Accounting Standards some of which contain requirementsspecific to not for profit entities that are inconsistent with International Financial Reporting Standards (IFRS)requirements.


The financial statements 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 financialliabilities.


In the preparation of financial statements, management is required to make judgements, estimates andassumptions about the carrying values of assets and liabilities that are not readily apparent from their sources.The estimates and associated assumptions are based on historical experience and various other factors that arebelieved to be reasonable under the circumstances, the results of which form the basis of making thejudgements. Actual results may vary from these estimates.


The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accountingestimates are recognised in the period in which the estimate is revised if the revision affects only that period, orin the period of the revision and future periods if the revision affects both current and future periods. Judgementmade by management in the application of the Australian Accounting Standards that have significant effects onthe financial statements and estimates, with a significant risk of material adjustments in the next year aredisclosed, where applicable, in the relevant notes to the financial statements.

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Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economicbenefits associated with the transaction will flow to the entity and specific criteria relating to the type of revenueas noted below, has been satisfied. The company bases its estimates on historical results, taking intoconsideration the type of customer, the type of transaction and the specifics of each arrangement.



(i) Revenue - net of tax


(ii) Interest revenue

Interest income is recognised as it accrues.

(iii) Course revenue

Revenue in respect of courses leading to an academic award is recognised in that year in which teachingwas conducted. Revenue in respect of public, corporate courses is recognised in the month in which thecourse is completed.

(iv) Facilities rental

Revenue in respect of facilities rental is recognised when the goods and services are provided.

(v) Consulting

Sales of consulting services are recognised in the accounting period in which the services are rendered.Consultation revenue is recognised under the percentage of completion method, based on the actualservice provided as a proportion of the total consultation to be provided.


Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquidinvestments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shownwithin short-term borrowings in current liabilities on the statement of financial position.

(e) Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using theeffective interest method, less provision for impairment. Trade receivables are due for settlement no more than30 days from the date of recognition.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectibleare written off. A provision for impairment of receivables is established when there is objective evidence that theCompany will not be able to collect all amounts due according to the original terms of receivables. Significantfinancial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, anddefault or delinquency in payments (more than 30 days overdue) are considered indicators that the tradereceivable is impaired. The amount of the provision is the difference between the asset’s carrying amount andthe present value of estimated future cash flows, discounted at the effective interest rate. Cash flows relating toshort-term receivable are not discounted if the effect of discounting is immaterial. The amount of the provision isrecognised in the statement of comprehensive income.

(f) Plant and Equipment

Plant and equipment is stated at historical cost less accumulated depreciation. Historical cost includesexpenditure that is directly attributable to the acquisition of the items. The net book value of plant and equipmentapproximates the fair value. Acquisition and additions of non-current assets are capitalised and depreciatedover two to ten years if the value is $5,000 or more.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate,

11

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(f) Plant and Equipment (continued)only when it is probable that future economic benefits associated with the item will flow to the company and thecost of the item can be measured reliably. All other repairs and maintenance are charged to the statement ofcomprehensive income during the reporting period in which they are incurred.

The depreciable amount of all plant and equipment is depreciated on a straight-line method from the date thatmanagement determine that the asset is available for use.



- Plant and equipment 3.3 years

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

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are includedin the statement of comprehensive income.

(g) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of thefinancial year, which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

(h) Provisions

Provisions for legal claims and service warranties are recognised when the Company has a present legal orconstructive obligation as a result of past events, it is probable that an outflow of resources will be required tosettle the obligation and the amount can be reliably estimated. Provisions are not recognised for futureoperating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required tosettle the present obligation at the reporting date. The discount rate used to determine the present value reflectscurrent market assessments of the time value of money and the risks specific to the liability.

(i) Employee benefits

Provision is made for the Company's liability for employee benefits arising from services rendered by employeesto the end of the reporting year. Employee benefits that are expected to be settled within one year have beenmeasured at the amounts expected to be paid when the liability is settled.

Employee benefits payable later than one year have been measured at the present value of the estimated futurecash outflows to be made for those benefits. In determining the liability consideration is given to employee wageincreases and the probability that the employee may not satisfy vesting requirements. Those cash outflows arediscounted using market yields on national government bonds with terms to maturity that match the expectedtiming of cash flows.

Contributions are made by the Company to an employee superannuation fund and are charged as expenseswhen incurred.


Liabilities for wages, salaries, including non-monetary benefits and annual leave expected to be settled within 12months after the end of the period in which the employees render the related service are recognised in respectof employees' services up to the end of the reporting period and are measured at the amounts expected to bepaid when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave istaken and measured at the rates paid or payable.

(ii) Other long-term employee benefit obligations

The liability for long service leave and annual leave which is not expected to be settled within 12 months after theend of the period in which the employees render the related service is recognised in the provision for employeebenefits and measured as the present value of expected future payments to be made in respect of servicesprovided by employees up to the end of the reporting period. Consideration is given to expected future wageand salary levels, experience of employee departures and periods of services. Expected future payments arediscounted using market yields at the end of the reporting period on national government bonds with terms to

12

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(i) Employee benefits (continued)maturity and currency that match, as closely as possible, the estimated future cash outflows.

Regardless of the expected timing of settlements, provisions made in respect of employee benefits are classifiedas current liability, unless there is an unconditional right to defer the settlement of the liability for at least 12months after the reporting date, in which case, it should be classified as non-current liability.


All employees of the Company are entitled to benefits from the Company's superannuation plan on retirement,disability or death. The defined contribution section received fixed contributions from the Company and theCompany's legal or constructive obligation is limited to these contributions.

Defined superannuation contributions are recognised as an expense as they become payable. Prepaidcontributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments isavailable.

(j) Goods and Services Tax (GST)





(k) Income Tax Exemption

No provision for income tax has been recognised in the financial statements as the Company is exempt fromincome tax under subdivision 50B of the Income Tax Assessment Act 1997.

(l) Rounding of amounts


(m) Comparative Amounts


Where a change in comparatives has also affected the opening accumulated funds previously presented in acomparative period, an opening statement of financial position at the earliest date of the comparative period hasbeen presented.

(n) New Accounting Standards and Interpretations

Certain new accounting standards and interpretations have been published that are not mandatory for 31December 2014 reporting periods and have not yet been applied to the financial statements. The company'sassessment of the impact of these new standards and interpretations is that they will not materially affect any ofthe amounts recognised in the financial statements or significantly impact the disclosures in relation to thecompany.

13

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2 Employee related expenses

2014$'000

2013$'000

AcademicWages & Salaries 558 465Superannuation contributions 65 45Payroll tax 35 28Workers compensation - 1Long service leave 12 2Annual leave 1 7

Total academic 671 548

GeneralWages & Salaries 1,263 1,413Superannuation contributions 112 135Payroll tax 71 81Workers compensation 1 3Long service leave (2) 4Annual leave 4 12

Total general 1,449 1,648

Total employee related expenses 2,120 2,196

3 Other expenses

2014$'000

2013$'000

Advertising, marketing and promotions 465 250Audit fees, banks charges, legal costs and insurance 21 125Consulting 225 146Equipment costs and licenses 34 43General consumables and materials 34 28Travel 36 65Miscellaneous expenses 77 -Total other expenses 892 657

14

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2014$'000

2013$'000

Cash at bank and in hand 1,614 624Deposits at call - 721Total cash and cash equivalents 1,614 1,345

In 2013, Deposits at call have a term of 90 days or less, and bear fixed interest with a weighted average of 3.69%.


The above figures are reconciled to cash at the end of the year as shown in the statement of cash flows as follows:

2014$'000

2013$'000

Cash and cash equivalents 1,614 1,345Overdraft - (21)Balance as per statement of cash flows 1,614 1,324


2014$'000

2013$'000

CurrentTrade receivables 12 99GST receivable 8 10Accrued income - 50Prepayments 11 25Other receivables 24 -

Total current trade and other receivables 55 184

As at 31 December 2014 no trade debtors were past due or impaired (2013: nil).

The carrying value of trade receivables is considered a reasonable approximation of fair value due to the short-termnature of the balances.

6 Other financial assets

2014$'000

2013$'000

CurrentHeld-to-maturity term deposits 1,232 1,232

Total current assets 1,232 1,232

Term deposits have a term of 91 to 365 days and bear fixed interest with a weighted average of 2.83% (2013: 4.2%).Refer to note 14 for information on the risk management policy of the Company.

15

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7 Plant and equipment

Plant andEquipment

$'000Total$'000

At 1 January 2013Opening net book amount 58 58Accumulated depreciation (44) (44)

Net book amount 14 14

Year ended 31 December 2013Opening net book amount 14 14Additions 25 25Disposals - -Depreciation (12) (12)

Closing net book amount 27 27

At 31 December 2013- Cost 83 83Accumulated depreciation (56) (56)


Year ended 31 December 2014Opening net book amount 27 27Additions 18 18Disposals - -Depreciation charge (16) (16)


At 31 December 2014- Cost 101 101Accumulated Depreciation (72) (72)



2014$'000

2013$'000

CurrentTrade payables 65 -Related parties - 12Accrued expense 41 75

Total current trade and other payables 106 87


9 Borrowings

2014$'000

2013$'000

CurrentBank overdraft - 21

Total current borrowings - 21

16

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10 Provisions

2014$'000

2013$'000

Current Annual leave 133 128Long service leave 45 36

Total current provisions 178 164

Non-currentLong service leave 71 70


Current provisions include total employee benefits of $45,000 (2013: $36,000) that are expected to be settled morethan 12 months after the reporting date.


2014$'000

2013$'000

CurrentPrepaid income 1 27

Total current liabilities 1 27

12 Accumulated funds

2014$'000

2013$'000

Accumulated funds at the beginning of the financial year 2,419 2,054Surplus for the year 155 365

Accumulated funds at end of the financial year 2,574 2,419

13 Commitments

The company had no capital expenditure, material other expenditure, leasing arrangements or long-termremuneration commitments at 31 December 2014 (2013: $nil).

17

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The Company‘s overall risk management plan seeks to minimise potential adverse effects due to the unpredictabilityof financial markets.

The Company does not speculate in financial assets.


Specific risks

Market risk - currency risk and cash flow interest rate risk

Credit risk

Liquidity risk

Financial instruments held

The principal categories of financial instrument used by the Company are:2014$'000

2013$'000

Financial assetsCash and Cash Equivalents 1,614 1,345Trade and other receivables (excluding statutory receivablesand prepayments) 36 125Other financial assets 1,232 1,232

2,882 2,702

Financial liabilitiesTrade and other payables 106 87Borrowings - 21

106 108

(a) Objectives, policies and processes

Specific information regarding the mitigation of each financial risk to which Company is exposed is provided below.

(b) Liquidity risk

Liquidity risk arises from the Company’s management of working capital. It is the risk that the Company will encounterdifficulty in meeting its financial obligations as they fall due.

The Company’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when theybecome due. The Company maintains cash and short-term deposits to meet its liquidity requirements for up to 30-dayperiods. Funding for long-term liquidity needs is additionally secured by an adequate amount of term deposits.

The Company manages its liquidity needs by carefully monitoring scheduled debt servicing payments for long-termfinancial liabilities as well as cash-outflows due in day-to-day business.

At the reporting date, the Company expected to have sufficient liquid resources to meet its obligations under allreasonably expected circumstances.

18

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(b) Liquidity risk (continued)The Company‘s liabilities have contractual maturities which are summarised below:

Less than 6 months 6 to 12 months 1 to 5 years Carrying amount

2014$'000

2013

$'000

2014$'000

2013

$'000

2014$'000

2013

$'000

2014$'000

2013

$'000

Trade and other payables 106 87 - - - - 106 87Borrowings - 21 - - - - - 21

Total 106 108 - - - - 106 108

(c) Market risk


Most of the Company transactions are carried out in Australian Dollars. At the reporting date there were no financialassets or liabilities denominated in foreign currency (2013: nil).

Exposures to foreign exchange rates vary during the year depending on the volume of overseas transactions.Nonetheless, the analysis above is considered to be representative of the Company's exposure to foreign currencyrisk.

(d) Credit risk


Credit risk arises from cash and cash equivalents, and deposits with banks and financial institutions, as well as creditexposure to customers, including outstanding receivables and committed transactions.

The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the riskof financial loss from defaults. The utilisation of credit limits by customers is regularly monitored by line management.Customers who subsequently fail to meet their credit terms are required to make purchases on a prepayment basisuntil creditworthiness can be re-established.

Management considers that all the financial assets for each of the reporting dates under review are of good creditquality. None are past due or impaired.


(e) Fair value estimation



The carrying values less impairment provision of trade and other receivables and trade and other payables, otherfinancial assets and borrowings is a reasonable approximation of their fair values due to the short-term nature ofthese instruments.

19

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(a) Names of responsible persons and executive officers

The following persons were responsible persons and directors of CMBF Limited during the financial year:

(i) Executive directorsK. M. JamesonA. M. Cooper

(ii) Non-executive directorsT. M. GabbottP. J. GormanP. R. DoddS B Dowton (Appointed 10 April 2014)

(b) Remuneration of Board of Members and Executives

2014 2013

Remuneration of Executive Directors200,000 to 249,000 - 1250,000 to 299,000 1 -

(c) Totals of remuneration paid

The totals of remuneration paid to the key management personnel of CMBF Limited during the year are as follows:

2014$'000

2013$'000

Short-term employee benefits 266 378Total remuneration paid to Key Management Personnel by CMBFLimited 266 378

Short-term employee benefits include salary and superannuation.


2014$'000

2013$'000

Remuneration of the auditor of the Company,Audit Office of NSW, for:

- Audit fee for parent entity 11 15- Audit fees for subsidiaries paid by parent entity 3 3

Total remuneration of Auditors 14 18

17 Contingencies

The Company is negotiating with an external party on a joint venture arrangement for a proposed teaching program.At the time of preparation of these financial statements, the Directors believe that there is significant uncertainty onthe outcome of this arrangement and any impact this may have to the financial statements of the Company. At 31December 2014 there is potential contingent liability that cannot be reliably measured.

20

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18 Related Parties



The ultimate parent entity, which exercises 100% control over the Company, is Macquarie University.



For details of disclosures relating to key management personnel, refer to Note 15: Key Management Personneldisclosure.



The following transactions occurred with related parties in 2014:

Revenue Expenses Receivables Payables$'000 $'000 $'000 $'000

Macquarie University 2,894 19 - -MGSM Ltd - 2 - -

2,894 21 - -

The following transactions occurred with related parties in 2013:

Revenue Expenses Receivables Payables$'000 $'000 $'000 $'000

Macquarie University 2,805 31 2 122,805 31 2 12

CMBF Limited paid the following fees on behalf of Macquarie Education South Africa NPC:

2014$'000

2013$'000

Audit fee - Audit Office of NSW 3 3Audit fee - KPMG Republic of South Africa 3 3 6 6

21

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2014$'000

2013$'000

Surplus for the year 155 365Non-cash flows in surplus:

Depreciation and amortisation 16 12Changes in operating assets and liabilities:

(Increase)/decrease in trade debtors 129 214Increase/(decrease) in trade creditors 19 (225)Increase/(decrease) in other operating liabilities (26) 27Increase/(decrease) in other provisions 15 14

Net cash inflow / (outflow) from operatingactivities 308 407




The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If theCompany is wound up, the constitution states that each member is required to contribute a maximum of $20 eachtowards meeting any outstanding obligations of the Company. At 31 December 2014 the number of members was 4(2013: 4).

22 Economic dependency

During the year the company received $2,888,000 (2013: $2,797,000) as fees from Macquarie University. The feeswere received by the company for the administration of the Master of Applied Finance Program. This is the majorsource of income for the company. The company occupies premises on the campus of Macquarie University forwhich a rent of $2,000 (2013: $2,000) is payable to the University for the year ended 31 December 2014. During theyear Macquarie University provided accommodation facilities in Sydney CBD and other resources to enable thecompany to administer the Program. Macquarie University determines what income and expenses are allocated toCMBF Limited.


22

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Page 84

Page 85


Page 86

Macquarie Education South AfricaNPCFinancial StatementsFor the Year Ended 31 December 2014

Page 87

Macquarie Education South Africa NPC


Page

Financial StatementsStatement of Comprehensive Income 1Statement of Financial Position 2Statement of Changes in Equity 3Statement of Cash Flows 4Notes to the Financial Statements 5Directors' Declaration 9Independent Audit Report 10

Page 88



Note2014

$2013

$

Revenue Revenue from continuing operations - -

Total revenue - -

ExpensesExpenses from continuing operations - -

Total expenses - -

Surplus for the year - -


Total comprehensive income for the yearattributable to members of CMBF Limited - -


1

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Note2014

$2013

$

ASSETSCurrent assets

Cash and cash equivalents - -Trade and other receivables - -

Total current assets - -Total assets - -

LIABILITIESCurrent liabilities

Trade and other payables - -Total current liabilities - -Total liabilities - -Net assets - -

EQUITYRetained Earnings - -Contributed equity - -

Total equity - -


2

Page 90



2014

Note

RetainedEarnings

$

Contributedequity

$Total

$

Balance at 1 January 2014Surplus for the period - - -

Balance at 31 December 2014 - - -

2013

Note

RetainedEarnings

$

Contributedequity

$Total

$

Balance at 1 January 2013Surplus for the period - - -



3

Page 91



Note2014

$2013

$

CASH FLOWS FROM OPERATINGACTIVITIES:

Receipts from customers - -Payments to suppliers and employees - -

Net cash provided by (used in) operatingactivities

7- -

CASH FLOWS FROM INVESTING ACTIVITIES:Net cash provided by (used in) investingactivities - -

CASH FLOWS FROM FINANCING ACTIVITIES:Net cash provided by (used in) financingactivities - -

Net increase (decrease) in cash and cashequivalents held - -

Cash and cash equivalents at beginning of year - -Cash and cash equivalents at end of financialyear - -


4

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Macquarie Education South Africa NPC is a not-for-profit company, registered in South Africa, and whollyowned by CMBF Limited.

The registered office of MESA is 137 Daisy Street, Corner Grayson Drive, Sandown, Gauteng 2196. Theprincipal place of business is South Africa.

MESA was established on 27 January 2012 for the initial purpose of applying for regulatory approvals inconnection with the delivery of the Masters of Financial Regulation program in the Republic of SouthAfrica.

MESA has not traded since inception. On 8 August 2014, the sole member (CMBF Limited) of thecompany resolved to authorise the directors of the company to proceed with deregistration. As at 31December 2014 the deregistration process was ongoing.


The financial statements are general purpose financial statements that have been prepared inaccordance with Australian Accounting Standards, the Public Finance and Audit Act 1983, Public Financeand Audit Regulation 2010 and other authoritative pronouncements of the Australian AccountingStandards Board. The directors have assessed the entity as a not-for-profit entity for financial reportingpurposes.

The directors believe the preparation of the financial statements on a going concern basis is appropriatefor the Company as it is indemnified by the activities of the Company.

The financial statements for the year ended 31 December 2014 have been authorised for issued by theDirectors on the 19 March 2015.


The financial statements and notes of the Macquarie Education South Africa NPC comply with AustralianAccounting Standards, some of which contain requirements specific to not-for-profit entities that areinconsistent with International Financial Reporting (IFRS) requirements.


The financial statements have been prepared on an accruals basis and are based on historical costs anddo not take into account changing money values or, except where stated, the revaluation of certainclasses of assets and liabilities. Cost is based on the fair values of the consideration given in exchangefor assets.

(c) Critical accounting estimates and judgments

In the preparation of the financial statements, management is required to make judgements, estimatesand assumptions about the carrying values of assets and liabilities that are not readily apparent fromother sources. The estimates and associated assumptions are based on historical experience andvarious other factors that are believed to be reasonable under the circumstances, the results of whichform the basis of making the judgements. Actual results may vary from these estimates. Key judgementsare disclosed as part of accounting policies notes.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting

5

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(c) Critical accounting estimates and judgments continuedestimates are recognised in the period in which the estimate is revised if the revision affects only thatperiod, or in the period of the revision and future periods if the revision affects both current and futureperiods. Judgements made by management in the application of the Australian Accounting Standardsthat have significant effects on the financial statements and estimates, with a significant risk of materialadjustments in the next year are disclosed, where applicable, in the relevant notes to the financialstatements.

(d) Revenue recognition

Revenue is recognised as earned.


Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, othershort-term, highly liquid investments with original maturities of three months or less that are readilyconvertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(f) New Accounting Standards and Interpretations

Certain new accounting standards and interpretations have been published that are not mandatory for 31December 2014 reporting periods and have not yet been applied to the financial statements. Thecompany’s assessment of the impact of these new standards and interpretations is that they will notmaterially affect any of the amounts recognised in the financial statements or significantly impact thedisclosures in relation to the company.

6

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2 Commitments

There were no commitments for capital expenditure at 31 December 2014 (31 December 2013: nil).


The directors of the company are key management personnel. They have authority and responsibility forplanning, directing and controlling the activities of the company. Names of office holders who have held officeduring the financial year ended 31 December 2014 and up to the date of this report are:

K. M. Jameson appointed 27 January 2012

P. J. Gorman appointed 27 January 2012

R. G. Trevor appointed 27 January 2012

Remuneration paid or payable, or otherwise made available to Directors, is paid by the direct parent, CMBFLimited.

4 Remuneration of Auditors 2014

$2013

$Remuneration of the auditor of theMacquarie Education South AfricaNPC, Audit Office of NSW, for:- Audit of financial statements 3,000 3,000

CMBF Limited paid the audit fees on behalf of the Company.

5 Contingencies

In the opinion of the Directors, the Company did not have any contingent liabilities or assets at 31 December2014 (31 December 2013: None).

6 Related Parties

There have been no related party transactions, other than the audit fee of $3,000 (2013: $3,000) and KPMGRSA fee of $2,500 (2013: $2,505), both paid by CMBF Limited.

7

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(a) Reconciliation of result for the year to cash flows from operating activities 2014

$2013

$Surplus for the year - -Changes in assets and liabilities

- (increase)/decrease in trade and other receivables - -Net cash flows from operating activities - -


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

9 Segment Information

There were no transactions in South Africa and Australia for the company during the year ended 31 December2014 (31 December 2013: nil).


8

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Page 97

Page 98

Page 99


Page 100

Macquarie University PropertyInvestment Company Pty LimitedABN 86 124 571 277

Financial Statements

For the Year Ended 31 December 2014

Page 101

Macquarie University Property Investment Company Pty LimitedABN 86 124 571 277


Page


Directors' Report 1Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 3Statement of Profit or Loss and Other Comprehensive Income 4Statement of Financial Position 5Statement of Changes in Equity 6Statement of Cash Flows 7Notes to the Financial Statements 8Directors' Declaration 12Independent Audit Report 13

Page 102



The directors present their report on Macquarie University Property Investment Company Pty Limited for thefinancial year ended 31 December 2014.


Directors


Peter Raymond DoddPatrick John Gorman


Company secretary

Mr Patrick John Gorman has held the position of Company secretary during and at the end of the financial year.


The principal activity of Macquarie University Property Investment Company Pty Limited during the financial year wasto act as trustee for Macquarie University Property Investment Trust.


2. Operating results and review of operations for the year

Operating results

The Company did not trade during the financial year and therefore reported a nil operating result (2013: nil).

Dividends paid or recommended

No dividends were paid or declared since the start of the financial year. No recommendation for payment of dividendshas been made.


There has been no activity involving financial transactions for the year ended 31 December 2014.

3. Other items


There have been no significant changes in the state of affairs of the Company during the year.

Events after the reporting date

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

1

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Page 104

Page 105



2014

$

2013$

Revenue

Revenue from continuing operations - -

Total revenue - -

Expenses

Expenses from continuing operations - -

Total expenses - -

Profit for the year - -


Total comprehensive income for the yearattributable to members of MUPIC Pty Limited - -

The above Statement of Profit and Loss and Other Comprehensive Income should be read in conjunction with theaccompanying notes.

4

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Note

2014

$

2013$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 2 2 2TOTAL CURRENT ASSETS 2 2TOTAL ASSETS 2 2

LIABILITIES

CURRENT LIABILITIES

TOTAL CURRENT LIABILITIES - -TOTAL LIABILITIES - -NET ASSETS 2 2

EQUITY

Contributed equity 3 2 2TOTAL EQUITY 2 2


5

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2014

Note

Contributedequity

$

Total

$

Balance at 1 January 2014 2 2



2013

Note

Contributedequity

$

Total

$

Balance at 1 January 2013 2 2Profit for the year - -



6

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Note

2014

$

2013$


Net cash provided by (used in) operating activities 9 - -


Net cash provided by (used in) investing activities - -


Net cash provided by (used in) financing activities - -


Cash and cash equivalents at beginning of year 2 2Cash and cash equivalents at end of financial year 2 2 2

The above statement of Cash Flows should be read in conjunction with the accompanying notes.

7

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Macquarie University Property Investment Company Pty Limited is a private company, incorporated andoperating in Australia and acts as the Trustee for the Macquarie University Property Investment Trust.

The registered office of the company is Macquarie University Property Investment Company Pty Limited, Officeof Financial Services, Building E11A, Macquarie University NSW 2109.


The financial statements are general purpose financial statements that have been prepared in accordance withAustralian Accounting Standards including Australian Accounting Interpretations, the Public Finance and AuditAct 1983, Public Finance and Audit Regulation 2010 and the Corporations Act 2001.

The directors have determined that the company is a for profit entity for financial reporting purposes.

The directors believe the preparation of the financial statements on a going concern basis is appropriate for theCompany as it is indemnified by the activities of the Company.

The financial statements for the year ended 31 December 2014 have been authorised for issued by the Directors on the 31 March 2015.


The financial statements and notes of Macquarie University Property Investment Company Pty Limited complywith Australian Accounting Standards, some of which contain requirements that are inconsistent withInternational Financial Reporting (IFRS) requirements.


The financial statements have been prepared on an accruals basis and are based on historical costs and do nottake into account changing money values or, except where stated, the revaluation of certain classes of assetsand liabilities. Cost is based on the fair values of the consideration given in exchange for assets.


In the preparation of the financial statements, management is required to make judgements, estimates andassumptions about the carrying values of assets and liabilities that are not readily apparent from other sources.The estimates and associated assumptions are based on historical experience and various other factors thatare believed to be reasonable under the circumstances, the results of which form the basis of making thejudgements. Actual results may vary from these estimates. Key judgements are disclosed as part of accountingpolicies notes.


8

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Revenue is recognised on an accrual basis.


Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible toknown amounts of cash and which are subject to an insignificant risk of changes in value.

(f) Rounding of amounts

All amounts are rounded to the nearest dollar and are expressed in Australian currency.

(g) New Accounting Standards and Interpretations

Certain new accounting standards and interpretations have been published that are not mandatory for 31December 2014 reporting periods and have not yet been applied to the financial statements. The company’sassessment of the impact of these new standards and interpretations is that they will not materially affect any ofthe amounts recognised in the financial statements or significantly impact the disclosures in relation to thecompany.

9

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2014

$

2013$

Cash at bank and in hand 2 2

2 2



2014

$

2013$


Balance as per statement of cash flows 2 2

3 Contributed equity

2014

$

2013$

Contributed equity 2 2Equity per share 1 1

Major shareholder - Macquarie University (100%).

4 Commitments

There were no commitments for capital expenditure at 31 December 2014 (31 December 2013: Nil).


The directors of the company are key management personnel. They have authority and responsibility for planning,directing and controlling the activities of the company. Names of office holders who have held office during thefinancial year ended 31 December 2014 and up to the date of this report are:

Patrick John Gorman

Peter Raymond Dodd

Remuneration paid or payable, or otherwise made available to Directors, is paid by related parties.


2014

$

2013$

Remuneration of the auditor of theCompany, Audit Office of NSW, for:

- Audit of financial statements 3,000 3,000

Macquarie University paid the audit fees on behalf of the Company.

10

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7 Contingencies

In the opinion of the Directors, the Company did not have any contingencies at 31 December 2014 (31 December2013: None).

8 Related Parties

(a) Transactions with related parties

There were no transactions with related parties during 2014.

During 2013, Macquarie University Property Investment Company Pty Limited, acting as Trustee for MacquarieUniversity Property Investment Trust, acquired some intellectual property from a third party. This intellectualproperty was then assigned by Macquarie University Property Investment Company Pty Limited, on behalf ofMacquarie University Property Investment Trust, to Macquarie University. Payment to the third party was madeby Macquarie University.


(a) Reconciliation of profit for the year to cash flows from operating activities

2014

$

2013$

Profit for the year - -Changes in assets and liabilities

- (increase)/decrease in trade and other receivables - -Net cash flows from operating activities - -


No matters or circumstances have arisen since the end of the financial year which significantly affected or maysignificantly affect the operations of the Company, the results of those operations, or the state of affairs of theCompany in future financial years (2013: None).


11

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Page 114

INDEPENDENT AUDITOR’S REPORT

Macquarie University Property Investment Company Pty Limited

To Members of the New South Wales Parliament and Members of Macquarie University Property Investment Company Pty Limited I have audited the accompanying financial statements of Macquarie University Property Investment Company Pty Limited (the Company), which comprise the statement of financial position as at 31 December 2014, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration. Opinion In my opinion the financial statements:

are in accordance with the Corporations Act 2001, including: - giving a true and fair view of the Company’s financial position as at 31 December 2014

and its performance for the year ended on that date - complying with Australian Accounting Standards and the Corporations Regulations 2001

are in accordance with section 41B of the Public Finance and Audit Act 1983 (the PF&A Act) and the Public Finance and Audit Regulation 2010.

My opinion should be read in conjunction with the rest of this report. Directors’ Responsibility for the Financial Statements The directors of the Company are responsible for preparing financial statements that give a true and fair view in accordance with Australian Accounting Standards, the PF&A Act and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility My responsibility is to express an opinion on the financial statements based on my audit. I conducted my audit in accordance with Australian Auditing Standards. Those Standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including an assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial statements that give a true and fair view 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements.

Page 115

I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. My opinion does not provide assurance: about the future viability of the Company that it carried out its activities effectively, efficiently and economically about the effectiveness of the internal control about the security and controls over the electronic publication of the audited financial

statements on any website where they may be presented about other information that may have been hyperlinked to/from the financial statements. Independence In conducting my audit, I have complied with the independence requirements of the Australian Auditing Standards, the Corporations Act 2001 and relevant ethical pronouncements. The PF&A Act further promotes independence by:

providing that only Parliament, and not the executive government, can remove an Auditor-General

mandating the Auditor-General as auditor of public sector agencies, but precluding the provision of non-audit services, thus ensuring the Auditor-General and the Audit Office of New South Wales are not compromised in their roles by the possibility of losing clients or income.

I confirm that the independence declaration required by the Corporations Act 2001, provided to the directors of the Company on 25 March 2015, would be in the same terms if provided to the directors as at the time of this auditor’s report.

James Sugumar Director, Financial Audit Services 1 April 2015 SYDNEY

Page 116

Macquarie University PropertyInvestment Trust (MUPIT)



Page 117

Macquarie University Property Investment Trust (MUPIT)


Page


Statement of Profit or Loss and Other Comprehensive Income 1Statement of Financial Position 2Statement of Changes in Equity 3Statement of Cash Flows 4Notes to the Financial Statements 5Statement by the Trustees 9Independent Audit Report 10

Page 118



2014

$

2013$


Other revenue - -Total revenue from continuing operations - -

Expenses from continuing operations

Other expenses - -Total expenses from continuing operations - -


Other comprehensive income for the year

Total comprehensive income for the yearattributable to members of MUPIT - -

The above Statement of Profit and Loss and Other Comprehensive Income should be read in conjunction with theaccompanying notes

1

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Note

2014

$

2013$

ASSETS

CURRENT ASSETS


LIABILITIES

CURRENT LIABILITIES

TOTAL CURRENT LIABILITIES - -NET ASSETS 2 2

EQUITY

Contributed Unit Capital 3 2 2TOTAL EQUITY 2 2


2

Page 120



2014

Units onIssue

$

UndistributedIncome

$

Total

$

Balance at 1 January 2014 2 - 2

Balance at 31 December 2014 2 - 2

2013

Units onIssue

$

UndistributedIncome

$

Total

$




3

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Note

2014

$

2013$


Net cash provided by (used in) operatingactivities 9 - -


Net cash provided by (used in) investingactivities - -


Net cash provided by (used in) financingactivities - -


Cash and cash equivalents at beginning of year 2 2Cash and cash equivalents at end of financialyear 2 2 2


4

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The principal accounting policies adopted in the preparation of the financial statements are set out below. Thesepolicies have been consistently applied to all the years presented, unless otherwise stated.


Macquarie University Property Investment Trust (the Trust) is a unit trust incorporated and domiciled inAustralia. The registered office and principal place of business is Office of Financial Services, Building E11A,Macquarie University NSW 2109.

The financial statements for the year ended 31 December 2014 have been authorised for issue by the Trustees on the 31 March 2015.


The financial statements are general purpose financial statements have been prepared in accordance withAustralian Accounting Standards including Australian Accounting Interpretations, the Public Finance and AuditAct 1983, Public Finance and Audit Regulation 2010.

The Trustees have assessed the Trust as a for profit entity for financial reporting purposes.


The financial statements of the Trust comply with Australian Accounting Standards some of which containrequirements that are inconsistent with International Financial Reporting Standards (IFRS) requirements.


These financial statements have been prepared under the historical cost convention, as modified by therevaluation of available-for-sale financial assets, financial assets and liabilities (including derivative instruments)at fair value through profit or loss, certain classes of property, plant and equipment and investment property.


In the preparation of financial statements, management is required to make judgements, estimates andassumptions about the carrying values of assets and liabilities that are not readily apparent from their sources.The estimates and associated assumptions are based on historical experience and various other factors thatare believed to be reasonable under the circumstances, the results of which form the basis of making thejudgements. Actual results may vary from these estimates. Key judgements are disclosed as part of theaccounting policies notes.


(d) Revenue and other income

The Trust recognises revenue when the amount of the revenue can be measured reliably, it is probable thateconomic benefits associated with the transaction will flow to the entity and specific criteria have been met foreach of the Trust's activities. The Trust bases its estimates on historical results, taking into consideration thetype of customer, the type of transaction and the specifics of each arrangement.

5

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(d) Revenue and other income continued

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed asrevenue are net of returns, trade allowances, rebates and amounts collected on behalf of third parties

(e) Income Tax Exemption

The Trust is exempt from the payment of tax by virtue of subdivision 50B of the Income Tax Assessment Act1997. Accordingly, no provision for income tax liability or future income tax benefit has been included in theaccounts.

(f) Cash and cash equivalents

For statement of cash flows presentation purposes, cash and cash equivalents includes cash on hand, depositsheld at call with financial institutions, other short-term, highly liquid investments with original maturities of threemonths or less that are readily convertible to known amounts of cash and which are subject to an insignificantrisk of changes in value, and bank overdrafts.

(g) Rounding of amounts


(h) New Accounting Standards and Interpretations

Certain new accounting standards and interpretations have been published that are not mandatory for 31December 2014 reporting periods and have not yet been applied to the financial statements. The Trust'sassessment of the impact of these new standards and interpretations is that they will not materially affect any ofthe amounts recognised in the financial statements or significantly impact the disclosures in relation to theTrust.

6

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2014

$

2013$

Cash at bank 2 2

2 2



2014

$

2013$



3 Contributed Unit Capital

2014

$

2013$

Balance at 1 January 2 2

Balance at 31 December 2 2

4 Commitments

There were no material commitments for expenditure of a capital nature as at 31 December 2014 (31 December 2013:Nil).


The Trustees of the Trust during the year were:

Patrick John Gorman

Peter Raymond Dodd

No remuneration was paid or made payable to the Trustees out of the assets of the Trust.


2014

$

2013$

Remuneration of the auditor of theTrust, Audit Office of NSW, for:


Macquarie University paid the audit fees on behalf of the Trust.

7

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7 Contingencies

In the opinion of the Trustees, the Trust did not have any contingent assets or liabilities at 31 December 2014 (31December 2013: None).

8 Related Parties

a) Parent entities

The parent entity and the ultimate parent entity is Macquarie University.

The Trust had no controlled entities during 2014.

b) Trustees

The names of persons who were Directors of the Trustee Company of the Trust at any time during the financial year are as follows: Patrick John Gorman and Peter Raymond Dodd.

c) Transactions with related parties

There were no transactions with related parties in 2014.

During 2013, Macquarie University Property Investment Company Pty Limited, acting as Trustee for MacquarieUniversity Property Investment Trust, acquired some intellectual property from a third party. This intellectual propertywas then assigned by Macquarie University Property Investment Company Pty Limited, on behalf of MacquarieUniversity Property Investment Trust, to Macquarie University. Payment to the third party was made by MacquarieUniversity.

9 Reconciliation of operating result after income tax to net cash flows from operating activities

2014

$

2013$

Operating result for the period - -Change in operating assets and liabilities

(Increase) / decrease in trade debtors - -Net cash flows from operating activities - -


There are no events after the balance sheet date of which the Trustees are aware that will have a material effect onthe Trust’s operations (2013: None).


8

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mq20096942

Highlight

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INDEPENDENT AUDITOR’S REPORT

Macquarie University Property Investment Trust

To Members of the New South Wales Parliament I have audited the accompanying financial statements of Macquarie University Property Investment Trust (the Trust), which comprise the statement of financial position as at 31 December 2014, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows, for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information. Opinion In my opinion, the financial statements: • give a true and fair view of the financial position of the Trust as at 31 December 2014, and of its

financial performance and its cash flows for the year then ended in accordance with Australian Accounting Standards

• are in accordance with section 41B of the Public Finance and Audit Act 1983 (PF&A Act) and the Public Finance and Audit Regulation 2010.

My opinion should be read in conjunction with the rest of this report. The Trustees’ Responsibility for the Financial Statements The trustees are responsible for preparing financial statements that give a true and fair view in accordance with Australian Accounting Standards and the PF&A Act, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility My responsibility is to express an opinion on the financial statements based on my audit. I conducted my audit in accordance with Australian Auditing Standards. Those Standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including an assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial statements that give a true and fair view in order to design audit procedures appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the trustees, as well as evaluating the overall presentation of the financial statements. I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Page 128

My opinion does not provide assurance: • about the future viability of the Trust • that it carried out its activities effectively, efficiently and economically • about the effectiveness of the internal control • about the security and controls over the electronic publication of the audited financial

statements on any website where they may be presented • about other information which may have been hyperlinked to/from the financial statements. Independence In conducting my audit, I have complied with the independence requirements of the Australian Auditing Standards and other relevant ethical pronouncements. The PF&A Act further promotes independence by: • providing that only Parliament, and not the executive government, can remove an

Auditor-General • mandating the Auditor-General as auditor of public sector agencies, but precluding the provision

of non-audit services, thus ensuring the Auditor-General and the Audit Office of New South Wales are not compromised in their roles by the possibility of losing clients or income.

James Sugumar Director, Financial Audit Services 1 April 2015 SYDNEY

Page 129


Page 130

MGSM LimitedABN 83 153 973 481



Page 131



Page


Directors' Report 1Auditors Independence Declaration under Section 307C of the Corporations Act 2001 4Statement of Comprehensive Income 5Statement of Financial Position 6Statement of Changes in Equity 7Statement of Cash Flows 8Notes to the Financial Statements 9Directors' Declaration 30Independent Auditor's Report 31

Page 132



The directors present their report on MGSM Limited for the financial year ended 31 December 2014. In order tocomply with the provisions of the Corporations Act 2001, the Directors report as follows:

MGSM Limited was incorporated on 27 October 2011 with 14 members. The company is an unlisted publiccompany, limited by guarantee, with the liability of each member limited to $ 1.00.

The directors have assessed the company as a not for profit entity for the purpose of financial reporting.

Directors

The names of each person who has been a director during the year and at the date of this report are:Names Position Appointed

Dr M Irving AM Chair, Non-Executive 27/10/2011Dr P Dodd Non-Executive 27/10/2011Prof A Frino Dean, Executive 26/09/2013Mr P J Gorman Alternate, Non-Executive 01/04/2012Prof J Simons Non-Executive 04/03/2014Prof J Greeley Alternate, Non-Executive 04/03/2014

Prof J Sachs was a director from the start of the financial year until she resigned on 3 March 2014. Prof J Greeley hassubsequently resigned on 26 January 2015.

All other directors have been in office since the start of the financial year to the date of this report, unless otherwisestated.

Company secretary

Ms A Hely held the position of Company secretary during the year, and at the date of this report.


The principal continuing activities of MGSM Limited during the financial year were:(a) promoting management education, conducting education and award courses,(b) research in the field of management,(c) operation of an executive hotel and conference centre.


The surplus of the Company for the year ended 31 December 2014 is $1,578,574 (2013: $1,840,641).

A review of the operations of the Company during the financial year and the results of those operations found that thecompany’s overall performance was positive, with revenue up 3.5% over the prior year.

Short term objectives

The Company's short term objectives are to continue to provide quality management education which is nationally andinternationally recognised, and to achieve the targets and milestones as approved by the board of directors.

Long term objectives

The Company's long term objectives are to increase the international recognition of its graduate managementeducation, and to foster research in conjunction with Macquarie University and other approved educational institutions.

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Strategy for achieving the objectives

To achieve these objectives, the Company has adopted the following strategies:

combining rigour with relevance in the company's research and teaching

assured learning outcomes

enhanced career opportunities for graduates

an active, high calibre alumni network

Performance measures

The following measures are used within the Company to monitor performance:

performance compared to annual budgets and targets across all revenue generating portfolios

key performance indicators, including, number of enrolled students, completion rates, revenue margin, andinternational rankings


No significant changes in the Company's state of affairs occurred during the financial year.

Matter subsequent to the end of the financial year

There has not been any matter or circumstance, other than that referred to in the financial statements, or notesthereto, that has arisen since the end of the financial year, which will significantly affect, or may significantly affect, theoperations of the company, the results of the operation, or the state of affairs of the company in future financial years.

Environmental regulation

The Company is not subject to any significant environmental regulations.

Likely Developments and expected results of operations

Further information on likely developments in the operations of the Company and the expected results of operationshave not been included in these financial statements because the directors believe it would be likely to result inunreasonable prejudice to the Company.

Members guarantee

MGSM Limited is a company limited by guarantee. In the event of, and for the purpose of winding up of the company,the amount capable of being called up from each member and any person or association who ceased to be a memberin the year prior to the winding up, is limited to $1 for each member, subject to the provisions of the company'sconstitution.

At 31 December 2014 the Company had 15 (2013: 14) members.

Indemnification of Directors and Officers and Insurance of Officers


2

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Page 135

Page 136



Note

2014

000's

$

2013000's

$


Revenue2(a)

28,738 27,774Other revenue 2(b) 899 984


Expenditure from continuing operations

Employee benefits expense3

(8,567) (8,633)Personnel services expense 3 (7,432) (6,561)Course expenditure (4,129) (3,738)Consultancy fees (2,337) (2,493)Accommodation & Catering (1,294) (1,157)Rental expense relating to operating leases (856) (808)Facility rental cost (123) (189)Macquarie University levy (2,746) (2,602)Other expenses 3 (574) (736)

Total expenditure from continuing operations (28,058) (26,917)

Surplus from continuing operations 1,579 1,841


Total comprehensive income for the year, attributable to ownersof MGSM Limited 1,579 1,841


5

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Statement of Financial PositionAs At 31 December 2014

Note

2014

000's

$

2013000's

$

ASSETS

Current assets

Cash and cash equivalents 4 2,669 2,120Trade and other receivables 5 1,478 1,116Inventories 6 50 65Other financial assets 7 22,800 22,000Total current assets 26,997 25,301Non-current assets

Other financial assets 7 375 375Plant and equipment 8 470 445Intangible assets 9 44 80Total non-current assets 889 900Total assets 27,886 26,201

LIABILITIES

Current liabilities

Trade and other payables 10 2,809 3,164Provisions 11 946 803Other liabilities 12 485 280Total current liabilities 4,240 4,247Non-current liabilities

Provisions 11 484 371Total non-current liabilities 484 371Total liabilities 4,724 4,618NET ASSETS 23,162 21,583

EQUITY

Accumulated funds 13 23,162 21,583TOTAL EQUITY 23,162 21,583


6

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2014

Note

Accumulatedfunds

000's

$

Total

000's

$

Balance as at 1 January 2014 21,583 21,583

Surplus attributable to members of the entity 1,579 1,579


2013

Note

Accumulatedfunds

000's

$

Total

000's

$

Balance as at 1 January 2013 19,742 19,742Surplus attributable to members of the entity 1,841 1,841



7

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Note

2014

000's

$

2013000's

$


Receipts from customers 28,812 27,751Payments to suppliers and employees (28,333) (26,383)Interest received 976 939Net cash provided by (used in) operating activities 21 1,455 2,307


Proceeds from sale of plant and equipment - 24Proceeds from sale of held-to-maturity investments 42,375 33,875Payment for intangible asset - (83)Purchase of plant and equipment (106) (141)Payment for held-to-maturity investments (43,175) (35,375)Net cash used in investing activities (906) (1,700)

Net increase (decrease) in cash and cash equivalents held 549 607Cash and cash equivalents at beginning of year 2,120 1,513Cash and cash equivalents at end of financial year 4 2,669 2,120


8

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MGSM Limited ("the Company") is a not-for-profit, unlisted public company, limited by guarantee, which wasincorporated in Australia on 27 October 2011 under the Corporations Act 2001. The company is wholly ownedby Macquarie University, with its registered office located at 99 Talavera Road, North Ryde.



Material accounting policies adopted in the preparation and presentation of these financial statements arepresented below and have been consistently applied unless otherwise stated.

The financial statements are general purpose financial statements that have been prepared on an accrualsbasis and in accordance with Australian Accounting Standards, including Australian Accounting Interpretations,the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2010, the Corporations Act2001, DIvision 60 of the Australian Charities and Not-for-profits Commission Act 2012, and Division 60 of theAustralian Charities and Not-for-profits Commission Regulation 2013.


The financial statements and notes in this financial report comply with Australian Accounting Standards, someof which contain requirements specific to not for profit entities that are inconsistent with International FinancialReporting Standards (IFRS) requirements.


These financial statements have been prepared under the historical cost convention, or modified whereapplicable, by the measurement at fair value of selected financial assets and financial liabilities.





9

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(c) Foreign currency translation

(i) Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economicenvironment in which it operates (‘the functional currency'). The financial statements are presented inAustralian dollars, which is the Company's functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing atthe dates of the transactions. Foreign exchange gains and losses resulting from the settlement of suchtransactions are recognised in the statement of comprehensive income. During the year, revenue transactionsin Hong Kong dollars were translated into the functional currency using exchange rates fixed under forwardexchange agreements and at spot rates provided by the bank.



The Company recognises revenue when the amount of revenue can be reliably measured, it is probable thatfuture economic benefits will flow to the entity and specific criteria have been met for each of the Company'sactivities as described below. The amount of revenue is not considered to be reliably measurable until allcontingencies relating to the sale have been resolved. The Company bases its estimates on historical results,taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.


(i) Course RevenueRevenue in respect of courses leading to an academic award is recognised in that year in which teaching wasconducted. Revenue in respect of public, corporate courses is recognised in the month in which the course iscompleted.

(ii) Facilities rental and hotel operationsRevenue in respect of facilities rental and hotel operations is recognised when the goods and services areprovided.

(iii) ConsultingSales of consulting services are recognised in the accounting period in which the services are rendered.Consultation revenue is recognised under the percentage of completion method, based on the actual serviceprovided as a proportion of the total consultation to be provided.

(iv) Interest incomeInterest income is recognised as it accrues.

(e) Leases

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Companyas lessee are classified as operating leases (note 14). Payments made under operating leases (net of anyincentives received from the lessor) are charged to the statement of comprehensive income on a straightlinebasis over the period of the lease.

10

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For statement of cash flows presentation purposes, cash and cash equivalents includes cash on hand, depositsheld at call with financial institutions, other short term, highly liquid investments with original maturities of threemonths or less that are readily convertible to known amounts of cash and which are subject to an insignificantrisk of changes in value, and bank overdrafts.

(g) Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using theeffective interest method, less provision for impairment. Trade receivables are generally due for settlementwithin 30 days from the date of recognition.

Collectibility of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectibleare written off by reducing the carrying amount directly. An allowance account (provision for impairment oftrade receivables) is used when there is objective evidence that the Company will not be able to collect allamounts due according to the original terms of the receivables. Significant financial difficulties of the debtor,probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency inpayments (more than 30 days overdue) are considered indicators that the trade receivable is impaired.

The amount of the impairment allowance is the difference between the asset's carrying amount and the presentvalue of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating toshortterm receivables are not discounted if the effect of discounting is immaterial.

The amount of the impairment loss is recognised in the statement of comprehensive income within otherexpenses. When a trade receivable for which an impairment allowance had been recognised becomesuncollectible in a subsequent period, it is written off against the allowance account. Subsequent recoveries ofamounts previously written off are credited against other expenses in the statement of comprehensive income.

(h) Inventories

All inventories are stated at the lower of cost and net realisable value. Cost comprises the actual value of directmaterials only, applied under the First In First Out (FIFO) basis.

Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is theestimated selling price in the ordinary course of business less the estimated costs necessary to make the sale.

(i) Investments and other financial assets

(i) Financial assets at fair value through profit or lossThis category has two subcategories: financial assets held for trading, and those designated at fair valuethrough profit or loss on initial recognition. A financial asset is classified in this category if acquired principallyfor the purpose of selling in the short term or if so designated by management. The policy of management is todesignate a financial asset if there exists the possibility it will be sold in the short term and the asset is subjectto frequent changes in fair value. Derivatives are also categorised as held for trading unless they aredesignated as hedges. Assets in this category are classified as current assets if they are either held for tradingor are expected to be realised within 12 months of the balance sheet date.

(ii) Loans and receivables Loans and receivables are non derivative financial assets with fixed or determinable payments that are notquoted in an active market. They arise when the Company provides money, goods or services directly to adebtor with no intention of selling the receivable. They are included in current assets, except for those withmaturities greater than 12 months after the reporting date which are classified as noncurrent assets. Loans andreceivables are included in receivables in the statement of financial position.

11

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(i) Investments and other financial assets (continued)

iii) Held to maturity investments Held to maturity investments are non derivative financial assets with fixed or determinable payments and fixedmaturities that the Company’s management has the positive intention and ability to hold to maturity.

(j) Derivatives and hedging activities

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and aresubsequently remeasured to their fair value at each reporting date. The accounting for subsequent changes infair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of theitem being hedged. The Company designates certain derivatives as either:

- hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedges), or - hedges of the cash flows of recognised assets and liabilities and highly probable forecast transactions (cashflow hedges).

(i) Fair value hedgeChanges in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in thestatement of comprehensive income, together with any changes in the fair value of the hedged asset or liabilitythat are attributable to the hedged risk.

(ii) Cash flow hedge The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flowhedges is recognised in equity in other comprehensive income. The gain or loss relating to the ineffectiveportion is recognised immediately in the income statement within other income or borrowing costs.

When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria forhedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognisedwhen the forecast transaction is ultimately recognised in the statement of comprehensive income. When aforecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity isimmediately transferred to the statement of comprehensive income.

(k) Plant and equipment

Plant and equipment is stated at historical cost less accumulated depreciation and any accumulatedimpairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of theitems. The net book value of plant and equipment approximates the fair value. Acquisition and additions ofnoncurrent assets are capitalised and depreciated over two to ten years if the value is more than $5,000.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, asappropriate, only when it is probable that future economic benefits associated with the item will flow to theCompany and the cost of the item can be measured reliably. All other repairs and maintenance are charged tothe statement of comprehensive income during the reporting period in which they are incurred.

Depreciation and amortisation on assets is calculated using the straight line method to allocate their cost, net oftheir residual values, over their estimated useful lives, as follows:

Plant and equipment 10.0 years Motor vehicles 6.7 years Computer hardware 3.3 years Leasehold improvements CBD Sydney amortised over term of lease

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amountis greater than its estimated recoverable amount.

12

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(k) Plant and equipment (continued)

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These areincluded in the statement of comprehensive income.

(l) Intangible assets

(i) IT development and software

Costs incurred in developing products or systems and costs incurred in acquiring software and licenses that willcontribute to future period financial benefits through revenue generation and/or cost reduction are capitalised toIT development and software. Costs capitalised include external direct costs of materials and service.Amortisation is calculated on a straightline basis over periods generally ranging from 3 to 5 years.

IT development costs include only those costs directly attributable to the development phase and are onlyrecognised following completion of the technical feasibility and where the Company has an intention and abilityto use the asset.

(ii) Intellectual Property

Costs incurred in the purchase of intellectual property and materials related to specified executive educationprograms, including general marketing and brand information, database and network information, and websitecontent. Amortisation is calculated on a straightline basis over 3 years.

(m) Trade and other payables


(n) Provisions

Provisions for legal claims, service warranties and make good obligations are recognised when the Companyhas a present legal or constructive obligation as a result of past events, it is probable that an outflow ofresources will be required to settle the obligation and the amount has been reliably estimated. Provisions arenot recognised for future operating losses.

The company's lease of premises in Sydney CBD expired on 31 December 2014, with renewal for a further termof two (2) years proposed. The terms of the renewed lease agreement are in the process of being finalised.

Provisions are measured at the present value of management's best estimate of the expenditure required tosettle the present obligation at the reporting date. The discount rate used to determine the present valuereflects current market assessments of the time value of money and the risks specific to the liability.

(o) Employee benefits

Provision is made for the Company's liability for employee benefits arising from services rendered byemployees to the end of the reporting year. Employee benefits that are expected to be settled within one yearhave been measured at the amounts expected to be paid when the liability is settled.

Employee benefits payable later than one year have been measured at the present value of the estimatedfuture cash outflows to be made for those benefits. In determining the liability consideration is given toemployee wage increases and the probability that the employee may not satisfy vesting requirements. Thosecash outflows are discounted using market yields on national government bonds with terms to maturity thatmatch the expected timing of cashflows.

Contributions are made by the Company to an employee superannuation fund and are charged as expenses

13

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(o) Employee benefits (continued)when incurred.

(i) Short-term obligationsLiabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settledwithin 12 months after the end of the period in which the employees render the related service are recognisedin respect of employees' services up to the end of the reporting period and are measured at the amountsexpected to be paid when the liabilities are settled. Liabilities for non accumulating sick leave are recognisedwhen the leave is taken and measured at the rates paid or payable.

(ii) Other long-term employee benefit obligationsThe liability for long service leave and annual leave which is not expected to be settled within 12 months afterthe end of the period in which the employees render the related service is recognised in the provision foremployee benefits and measured as the present value of expected future payments to be made in respect ofservices provided by employees up to the end of the reporting period. Consideration is given to expected futurewage and salary levels, experience of employee departures and periods of service. Expected future paymentsare discounted using market yields at the end of the reporting period on national government bonds with termsto maturity and currency that match, as closely as possible, the estimated future cash outflows.

Regardless of the expected timing of settlements, provisions made in respect of employee benefits areclassified as current liability, unless there is an unconditional right to defer the settlement of the liability for atleast 12 months after the reporting date, in which case, it should be classified as non-current liability.

(iii) Retirement benefit obligationsAll employees of the Company are entitled to benefits from the Company's superannuation plan on retirement,disability or death. The defined contribution section receives fixed contributions from the Company and theCompany's legal or constructive obligation is limited to these contributions.

Defined superannuation contributions are recognised as an expense as they become payable. Prepaidcontributions are recognised as an asset to the extent that a cash refund or a reduction in the future paymentsis available.

(p) Goods and Services Tax (GST)

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), exceptwhere the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In this case itis recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payable are stated inclusive of the amount of GST receivable or payable.



(q) Income tax exemption

The Commisioner of Taxation has granted the company exemption from the payment of income tax, undersubdivision 50B of the Income Tax Assessment Act 1997.

(r) Rounding of amounts


14

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(s) Comparative Amounts


(t) New Accounting Standards and Interpretations


15

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2 Revenue from continuing operations

(a) Revenue

2014

000's

$

2013000's

$

Course revenue 23,458 21,917Hotel and facilities revenue 3,902 4,084Other revenue 1,378 1,773

Total revenue 28,738 27,774

Revenue is recognised at gross and the levy payable to the parent entity is recognised as an expense.

(b) Other revenue

2014

000's

$

2013000's

$Interest revenue 899 980Foreign currency translation gains - 4

Total other revenue 899 984

3 Expenditure from continuing operations

Surplus includes the following specific expenses:

2014

000's

$

2013000's

$Employee benefit expense

Salary 6,803 6,951Superannuation 647 623Payroll tax 451 441Workers compensation (3) 60Annual leave 482 468Long service leave 187 90

Total employee benefits expense 8,567 8,633

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3 Expenditure from continuing operations (continued)

Surplus includes the following specific expenses: (continued)

2014

000's

$

2013000's

$Personnel services expense

Salary 6,242 5,523Superannuation 720 624Payroll tax 445 393Workers compensation 25 21

Total personnel services expense 7,432 6,561

Other expenses includes:

Depreciation

Plant and equipment 49 50Leasehold improvements - 1Motor vehicles 18 21Computer hardware 6 6

Total depreciation 73 78

Amortisation

Software 2 3Leadership consortium 34 25

Total amortisation 36 28



2014

000's

$

2013000's

$

Cash at bank and in hand 2,669 1,120Short-term bank deposits - 1,000

2,669 2,120

Reconciliation of cash

The above figures are reconcilied to cash at the end of the financial year as shown in the statement of cash flows, asfollows:

2014

000's

$

2013000's

$Cash and cash equivalents 2,669 2,120


17

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Note

2014

000's

$

2013000's

$

Current

Trade receivables 325 429Provision for impairment (a) - (1)

Net trade receivables 325 428Prepayments 442 117GST receivable 92 45Related party receivables 377 194Accrued income 242 332

Total current trade and other receivables 1,478 1,116


Reconciliation of changes in the provision for impairment of receivables is as follows:2014

000's

$

2013000's

$Balance at beginning of the year 1 -Provision for impairment - 1Provision used (1) -

Balance at end of the year - 1

Trade and other receivables are non-interest bearing. Due to the short term nature of these receivables, their carryingamounts are considered to be approximate to their fair value.

6 Inventories

2014

000's

$

2013000's

$

Current

Stationery - at cost 31 23Catering - at cost 10 26Alcoholic beverages - at cost 9 16

Total current inventories 50 65

Write downs of inventories to net realisable value during the year were $ nil (2013: $ nil ).

18

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7 Other financial assets

2014

000's

$

2013000's

$Current

Held to maturity term deposits 22,800 22,000Total current financial assets 22,800 22,000Non-current

Held to maturity term deposits 375 375Total non-current financial assets 375 375

Total other financial assets 23,175 22,375

Term deposits bear fixed interest at a weighted average of 3.68% (2013: 4.32%). Refer to note 15 for moreinformation on the risk management policy of the Company.


Plant andEquipment

000's

$

MotorVehicles

000's

$

ComputerEquipment

000's

$

LeaseholdImprovement

000's

$

Total

000's

$


Opening net book amount 319 90 14 1 424Additions 76 52 - - 128Disposals - written down value - (29) - - (29)Depreciation expense (50) (21) (6) (1) (78)

Closing net book amount 345 92 8 - 445

At 31 December 2013

- Cost 435 112 19 2 568Accumulated depreciation (90) (20) (11) (2) (123)

Net book amount 345 92 8 - 445


Opening net book amount 345 92 8 - 445

Additions 98 - - - 98

Depreciation expense (49) (18) (6) - (73)

Closing net book amount 394 74 2 - 470

At 31 December 2014

- Cost 533 121 19 2 675

Accumulated depreciation (139) (47) (17) (2) (205)

Net book amount 394 74 2 - 470

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9 Intangible Assets

Computersoftware

000's

$

IntellectualProperty

000's

$

Total

000's

$


Opening net book value 7 - 7Additions - 101 101Amortisation (3) (25) (28)

Closing net book amount 4 76 80

At 31 December 2013

- Cost 10 101 111- Accumulated amortisation andimpairment (6) (25) (31)

Net book amount 4 76 80


Opening net book amount 4 76 80

Amortisation (2) (34) (36)

Closing net book amount 2 42 44

At 31 December 2014

- Cost 10 101 111

- Accumulated amortisation andimpairment (8) (59) (67)

Net book amount 2 42 44


2014

000's

$

2013000's

$

Current

Trade payables 87 106Sundry payables and accrued charges 1,301 1,233Related party payables 1,421 1,825

Total current trade and other payables 2,809 3,164


20

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11 Provisions

2014

000's

$

2013000's

$

Current

Employee benefits

Annual leave 419 406Long service leave 527 397

Total current provisions 946 803

Non-current

Make good provision 261 174

Employee benefits

Long service leave 223 197



Current provisions include total employee benefits of $ 412,000 (2013: $ 396,544) that are expected to be settled morethan 12 months after the reporting date.

All employee benefit liabilities associated with those employees of Macquarie University who are seconded to theCompany are reflected in the financial statements of Macquarie University.

The present value of long service leave provisions is based on a valuation by an independent actuary. The following financial assumptions were used: Salary growth rates: Year 1 2.5% (2013: 4.0%)

Year 2+ 3.0% (2013: 2.5%) Discount rate: 2.8% (2013: 4.2%)


2014

000's

$

2013000's

$

Current

Deposits on hand 108 87Course fees received in advance 377 193

Total other current liabilities 485 280

13 Accumulated funds

2014

000's

$

2013000's

$Accumulated funds at the beginning of the financial year 21,583 19,742Surplus for the year 1,579 1,841

Accumulated funds at end of the financial year 23,162 21,583

21

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14 Capital and Leasing Commitments

(a) Operating Leases - Company as lessee

Future minimum lease payments by the Company under non-cancellable operating leases: 2014

000's

$

2013000's

$Not later than one year 869 992Between one year and five years 950 169

1,819 1,161

The company leases office space in Sydney CBD and computer equipment. The company does not have an option toacquire the office space at the end of the lease. The company may, at its absolute discretion, acquire the computerequipment at the end of the lease.

(b) Contracted Commitments

Expenditure contracted for at the reporting date but not recognised as liabilities is as follows:.2014

000's

$

2013000's

$

Equipment and services

Payable within one year 335 -

Both operating lease and contracted commitments for 2014 and 2013 shown above include GST.




The Company‘s overall risk management plan seeks to minimise potential adverse effects due to the unpredictability offinancial markets.


Specific risks

Market risk - currency risk, and cash flow interest rate risk Credit risk Liquidity risk

Financial instruments used

The principal categories of financial instruments used by the Company are:

- Cash and cash equivalents- Trade and other receivables *- Other financial assets- Trade and other payables *

* excluding GST receivables and payables, prepayments and unearned income.

22

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(a) Liquidity risk



The Company manages its liquidity needs by carefully monitoring scheduled debt servicing payments for long-termfinancial liabilities as well as cash-outflows due in day-to-day business.

At the reporting date, these reports indicate that the Company expected to have sufficient liquid resources to meet itsobligations under all reasonably expected circumstances and will not need to draw down any of the financing facilities.

The majority of the Company's financial liabilities are expected to mature within the next 6 months.

(b) Market risk


Most of the Company transactions are carried out in Australian Dollars. Exposures to currency exchange rates arisefrom the Company's overseas sales and purchases, which are denominated in a currency that was not the functionalcurrency.

To mitigate the Company's exposure to foreign currency risk, non-Australian Dollar cash flows are monitored andforward exchange contracts are entered into in accordance with Company‘s risk management policies

Whilst these forward contracts are economic hedges of the cash flow risk, the Company does not apply hedgeaccounting to these transactions. The implications of this decision are that unrealised foreign exchange gains andlosses are recognised in profit and loss in the period in which they occur.

Forward exchange contracts are mainly entered into for significant long term foreign currency exposures that are notexpected to be offset by other currency transactions.

During the year, the company entered into a number of forward exchange agreements for Hong Kong dollars (HKD).At the end of the reporting period, all contracts had expired.

23

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15 Financial Risk Management (continued)(ii) Cash flow interest rate sensitivity

The following tables summarise the sensitivity of the Company's financial assets and financial liabilities to interest raterisk in the current and prior years:

31 December 2014

Carryingamount

000's

$

-100bps

Profit

000's

$

-100bps

Equity

000's

$

+100bps

Profit

000's

$

+100bps

Equity

000's

$

Financial assets

Cash and cash equivalents 2,669 (23) (23) 23 23Trade and other receivables 944 - - - -Other financial assets 23,175 (249) (249) 249 249

Financial liabilities

Trade and other payables 2,809 - - - -

Total increase (decrease) (272) (272) 272 272

31 December 2013

Carryingamount

000's

$

-100bps

Profit

000's

$

-100bps

Equity

000's

$

+70bps

Profit

000's

$

+70bps

Equity

000's

$

Financial assets

Cash and cash equivalents 2,120 (25) (25) 25 25Trade and other receivables 956 - - - -Other financial assets 22,375 (225) (225) 225 225


Trade and other payables 3,164 - - - -

Total increase (decrease) (250) (250) 250 250

(c) Credit risk


Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions, outstandingreceivables and committed transactions.

The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk offinancial loss from defaults. The utilisation of credit limits by customers is regularly monitored by line management.Customers who subsequently fail to meet their credit terms are required to make purchases on a prepayment basisuntil creditworthiness can be re-established.



24

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(d) Fair value estimation



The carrying value less impairment provision of trade and other receivables, trade and other payables, and otherfinancial assets, is a reasonable approximation of their fair values due to the short-term nature of these instruments.


The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If theCompany is wound up, the constitution states that each member is required to contribute a maximum of $ 1 eachtowards meeting any outstandings and obligations of the Company. At 31 December 2014 the number of memberswas 15 (2013: 14).


(a) Directors

The following persons were directors of MGSM Limited during the financial year:

(i) Chairman - non-executive Dr M Irving AM

(ii) Executive directorProf A Frino (Dean)

(iii) Non-executive directorsProf J Sachs (resigned 3 March 2014)Prof J Simons (appointed 4 March 2014)Dr P DoddMr P J Gorman (Alternate)Prof J Greeley (Alternate)(appointed 4 March 2014)

(b) Other key management personnel

The following persons also had authority and responsibility for planning, directing and controlling the activities of theCompany, directly or indirectly, during the financial year:.Name Position Employer

Assoc. Prof G Ford Deputy Dean, Pro Dean Macquarie UniversityProf C Areni Associate Dean, Research, Interim Pro-Dean Macquarie UniversityProf R Petty Associate Dean, International Macquarie UniversityMr J Wong Director, International Development Macquarie UniversityMr P Kirkbride Executive Director, Executive Education MGSM LimitedMs A Hely Executive Director MGSM LimitedMr P Stewart Director, Operations MGSM LimitedMr R Hosmann Director, Business Development & Marketing MGSM Limited

25

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17 Key Management Personnel Disclosures (continued)

(b) Other key management personnel (continued)

Assoc Prof Ford became Pro Dean in March 2014, and resigned on 15 August 2014; Prof Areni was appointed interimPro-Dean in June 2014. Mr Wong was appointed Director, International Development on 1 August 2014.

Mr Hosmann was appointed Director, Business Development & Marketing on 11 November 2013. Mr Kirkbrideresigned on 31 December 2014; Ms Michelle Kershaw has been appointed Director, Executive Education from 1January 2015.

(c) Remuneration of directors and key management personnelThe bands of remuneration paid to directors and key management personnel during the year are as follows:

2014

Number

2013

Number

Remuneration of directors and keymanagement personnel

Nil to $99,999 1 1$100,000 to $199,999 - 1$200,000 to $299,999 2 2$300,000 to $399,999 4 3$400,000 to $499,999 2 -$500,000 to $599,999 - 1

(d) Totals of remuneration paid

The totals of remuneration paid to the key management personnel of MGSM Limited during the year are as follows:2014

000's

$

2013000's

$Short-term employee benefits 1,288 935Personnel services 1,519 1,315

2,807 2,250

Short-term employee benefits include salary, superannuation and short term bonus payments.

Personnel services include payments to Macquarie University for those employees seconded to the Company, andinclude salary, superannuation and oncosts.

(e) Other key management personnel transactions

For details of other transactions with key management personnel, refer to Note 20: Related Party Transactions.

26

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(a) NSW Audit Office

2014

$

2013$

Audit services:

Audit of financial statement 46,000 46,000

19 Contingencies

(a) Contingent Liabilities

MGSM Limited had the following contingent liabilities at 31 December 2014 (and 31 December 2013):

GuaranteesBank gurantees amounting to $ 374,550 have been provided to third parties. These bank guarantees are secured byinterest bearing deposits of $374,550 (refer Note 7).

(b) Contingent Assets

The Company had no contingent assets at 31 December 2014 (2013: Nil).

20 Related Parties







27

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20 Related Parties (continued)



The following transactions occurred with related parties:Balances outstanding

Revenue

000's

$

Expenses

000's

$

Receivable

000's

$

Payable

000's

$

Macquarie University 1,650 10,613 377 1,420

Related parties within Macquarie Group

Access Macquarie Ltd 5 266 - -U@MQ Ltd 1 1 - -CMBF 2 - - -

Total related parties Macquarie Group 1,658 10,880 377 1,420

Other related parties

KMP related parties - 82 - -

Total other related parties - 82 - -

28

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(a) Reconciliation of result for the year to cashflows from operating activities

2014

000's

$

2013000's

$Surplus for the year 1,579 1,841Cash flows excluded from profit attributable to operating activitiesNon-cash flows in profit:

- depreciation and amortisation 109 107 - net loss on disposal of property, plant and equipment - 7

Changes in assets and liabilities: - (increase)/decrease in trade and other receivables (37) (116) - (increase)/decrease in inventories 15 (12) - decrease in other assets (327) 6 - increase/(decrease) in trade and other payables (141) 358 - increase/(decrease) in provisions 257 116

Cashflows from operating activities 1,455 2,307




29

Page 161

Page 162

Page 163

Page 164

MUH Operations Pty LtdABN 60 139 479 691



Page 165



Page


Directors' Report 1Auditors Independence Declaration under Section 307C of the Corporations Act 2001 3Statement of Profit or Loss and Other Comprehensive Income 4Statement of Financial Position 5Statement of Changes in Equity 6Statement of Cash Flows 7Notes to the Financial Statements 8Directors' Declaration 12Independent Audit Report 13

Page 166



The directors present their report on MUH Operations Pty Ltd for the financial year ended 31 December 2014.


Directors


Peter Raymond DodddMalcolm Geoffrey Irving


Company secretary

Ms Gayathri Wjiesuriya held the position of Company Secretary during and at the end of the financial year.


The principal activity of MUH Operations Pty Ltd during the financial year was to hold the warranties relating to theconstruction of Macquarie University Private Hospital.



Operating results

The Company did not trade during the financial year and therefore reported a nil operating result (2013: Nil).




There has been no activity involving financial transactions since its incorporation.

3. Other items





1

Page 167

Page 168

Page 169



2014

$

2013$

Revenue


Total revenue - -

Expenses


Total expenses - -



Total comprehensive income for the yearattributable to members of MUH OperationsPty Limited - -


4

Page 170



Note

2014

$

2013$

ASSETS

CURRENT ASSETS


LIABILITIES

CURRENT LIABILITIES


EQUITY



5

Page 171



2014

Note

Contributedequity

$

Total

$




2013

Note

Contributedequity

$

Total

$




6

Page 172



Note

2014

$

2013$










7

Page 173





MUH Operations Pty Ltd is a private company, registered and domiciled in Australia. It has one share issued,valued at $1, and is wholly owned and controlled by Macquarie University.

The company was incorporated on 16 September 2009.

The registered office of the company is MUH Operations Pty Ltd, Office of Financial Services, Building E11A,Macquarie University NSW 2109.





The financial statements and notes of MUH Operations Pty Ltd comply with Australian Accounting Standards,some of which contain requirements that are inconsistent with International Financial Reporting (IFRS)requirements.






8

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The Company recognises revenue when the amount of revenue can be reliably measured, it is probable thatfuture economic benefits will flow to the entity and specific criteria have been met for each of the Company'sactivities as described below. The amount of revenue is not considered to be reliably measurable until allcontingencies relating to the sale have been resolved. The Company bases its estimates on historical results,taking into consideration the type of customer, the type of transaction and the specifics of each arrangement isrecognised on an accrual basis.







9

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2014

$

2013$


1 1



2014

$

2013$




2014

$

2013$


Major shareholder - Macquarie University (100%).

4 Commitments

There were no commitments for capital expenditure at 31 December 2014 (2013: Nil).



Peter Raymond DoddMalcolm Geoffrey Irving



2014

$

2013$




10

Page 176



7 Contingencies


8 Related Parties


There were no transactions with related parties during 2014 (2013: None).



2014

$

2013$


- (increase)/decrease in trade and other receivables - 1Net cash flows from operating activities - 1


No matters or circumstances have arisen since the end of the financial year which significantly affected or maysignificantly affect the operations of the Company or the results of those operations (2013: None).


11

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Page 178

Page 179

Page 180

MUH Operations No. 2 Pty LtdABN 46 141 203 125



Page 181



Contents

Page

Directors' Report 1Auditors Independence Declaration under Section 307C of the Corporations Act 2001 5Statement of Comprehensive Income 6Statement of Financial Position 7Statement of Changes in Equity 8Statement of Cash Flows 9Notes to the Financial Statements 10Directors' Declaration 32Independent Audit Report 33

Page 182



General Information

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

Dr P R DoddQualifications BCom, DipEd, MCom, MSc, PhDExperience Has over 25 years of senior management experience in both the

private sector and universities. Most recently, Peter was ChiefOperating Officer and Deputy Vice-Chancellor at MacquarieUniversity. Prior to that he was Chief Financial Officer of NorthAmerican Energy Partners, which is a New York Stock Exchangelisted construction and mining company operating in the Oil Sandsof Northern Alberta. Peter has over 20 years experience inInvestment Banking and was Global Head of Corporate Financefor ABN Amro. Earlier, he was Professor of Finance, later Dean ofAustralian Graduate School of Management at the University ofNew South Wales and Associate Professor of Finance at theGraduate School of Business at the University of Chicago.Currently, he is a Non Executive Director of Investa Office Fund,Networks NSW, and is Chairman of Macquarie University Hospital.

Area of responsibility Non-Executive ChairpersonPeriod of directorship Commenced 18 December 2009

Dr M G Irving, AMQualifications BCom, FCPA, SF Fin, Hon DLitt, FAICDExperience Has held a number of directorships and chairs covering the

corporate, tertiary, health, government and community servicesector. Chair of MGSM Ltd. Member of Macquarie UniversityCouncil from 1993 until retirement in December 2010 (including asDeputy Chancellor of Macquarie University Council). Chair of theUniversity's Finance and Facilities Committee from 1993 untilretirement.

Area of responsibility Non Executive Director, Chair of the Audit & Risk Committee andMember of the Clinical Risk Committee

Period of directorship Commenced 18 December 2009

Mr M R ComptonQualifications BSc, MBA (UNSW), FAIM, FAICD, AFCHSEExperience Experienced CEO in the public company and health care and life

sciences environments. Current and former Board Director withlisted and unlisted healthcare and life science companies.

Area of responsibility Non Executive Director and Member of the Audit & Risk CommitteePeriod of directorship Commenced 27 April 2010

Ms E M JohnstoneQualifications LLB, MA (Hons), BA (Hons), FAICDExperience Former Corporate Partner of a major international law firm leading

the Company Law and Governance practice, prior substantialsenior executive experience managing strategic planning andmarketing functions and leading organisational change programs.Several Board and Member appointments to international, state,professional and community bodies. She is a Fellow of theAustralian Institute of Company Directors and a previous Businessand Professional Women’s Association (BPW) Business Woman ofthe Year.

Area of responsibility Non Executive Director, Member of the Audit & Risk Committee, Alternate Member of Clinical Risk Committee

Period of directorship Commenced 27 April 2010

1

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The names of each person who has been a Director during the year and at the date of this report are: (continued)

Mr P J GormanQualifications BBus, MBA, FCPA, FTIAExperience Appointed Chief Financial Officer of Macquarie University in

September 2007. Previous experience as the Chief FinancialOfficer for a NSW state owned corporation in the wastemanagement industry, Chief Financial Officer/Company Secretaryfor several publicly listed entities in manufacturing, transport andlogistics industries. In the 20 years prior to this, he held seniorfinance positions in the oil industry, in sectors ranging fromrefining and distribution to exploration and development. Strengthsin the areas of capital raising and debt structure, investmentmanagement, organisational change, financial and managementreporting.

Area of responsibility Alternate DirectorPeriod of directorship Commenced as an Alternate Director to Dr Dodd on 28 September

2010

Emeritus ProfessorB H Barraclough, AOQualifications MB, BS, FRACS, DDU, FACS, FAICDExperience Board Member of Cabrini Health, Chair of the Advisory Council for

the CSIRO Digital Productivity and Services Flagship. Former Deanof Education, Royal Australasian College of Surgeons andAssociate Dean (Clinical Strategy) of the University of WesternSydney Medical School.

Area of responsibility Non Executive Director, Chairman of the Clinical Risk Committee & Member of the Audit & Risk Committee

Period of directorship Commenced as a Director on 5 December 2012

Mr G M JonesQualifications BA (Macq.), MA (Macq.)Experience Member of Macquarie University Council and currently Chair of

the University Discipline Committee. He also has an interest inSchool Governance and is working with the Department ofEducation and Communities on developing effective models ofSchool Governance for use in public schools.

Area of responsibility DirectorPeriod of directorship Commenced as a Director on 17 October 2013

Ms E CrouchQualifications BEc (Macq.), FAICDExperience Deputy Chancellor of Macquarie University, company director and

consultant to government and the private sector. Ms Crouch spent16 years with the Federal Government before moving into theprivate sector, where she held various positions including the roleof Chief Executive of the Housing Industry Association.

Area of responsibility Alternate DirectorPeriod of directorship Commenced as an Alternate Director to Mr G Jones on 17 October

2013

2

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Company Secretary

The following persons held the position of Company Secretary during the financial year:Ms Carol Bryant held the position of Company Secretary during and at the date of this report. Ms Emma Lawler held the position of Company Secretary during and at the date of this report.

Ongoing financial support from parent - Macquarie University

The Company continues to receive financial support from its parent, Macquarie University through a loan facility. As at31 December 2014, the total 10 year evergreen facility was $120 million, of which $73 million has been drawn down. At31 December 2014, $47 million remained available to be drawn. On 4 December 2014, MacquarieUniversity Council approved funds would continue to be lent to MUH Operations No. 2 Pty Ltd to enable it to meet itsobligations.

Measuring the Company's performance

Performance of the Company's operations are measured in terms of occupancy levels, patient days, average length ofstay, patient revenue per patient day, labour work hours per patient day and clinical and pharmaceutical supplies costsper patient day.

The Board reviews the Company's performance at each meeting.


There has not been any matter or circumstance that has arisen since the end of the financial year that has significantlyaffected, or may significantly affect, the operations of the Company, the results of the operation, or the state of affairs ofthe Company in future financial years.


Ongoing growth of the Hospital and Clinic operations, including increases in occupancy levels, are expected to provideimproved financial results in 2015.


The Company is subject to environmental regulation in respect of the transport and disposal of medical waste. TheCompany contracts with reputable, licenced businesses to dispose of waste and there have been no investigations orclaims during the financial year. The Directors believe that the Company has complied with all environmentalregulations.


There were no significant changes in the nature of the Company's activities during the year.Throughout the year the principal activity of the company was providing health care services. Our vision for the hospitalis to earn recognition by providing care of the highest quality to every patient. The Hospital’s commitment to quality andsafety is reflected in our involvement in research and training as well as our rigorous quality activities.


The result for the year ended 31 December 2014 is a deficit of $19.5 million (2013: $23.3 million).

Dividend paid or recommended

No dividends were paid or declared since the start of the financial year. No recommendation for payments of dividend hasbeen made.

3

Page 185

Page 186

Page 187



Notes

2014

$'000

2013

$'000

Revenue

Sale of goods 2 26,933 24,040Services 2 71,020 64,603Other revenue 2 8,024 7,792


Expenses

Cost of goods and services 3 (50,504) (45,691)Employee benefits expense 3 (44,870) (41,738)Facility management 3 (21,430) (20,438)General administration (889) (635)Information technology and communication 3 (2,165) (2,293)Professional & governance 3 (1,948) (2,241)Finance costs 3 (3,136) (5,477)Allowance for impairment on other financial assets and receivables 3 (579) (1,188)

Total expenses (125,521) (119,701)

Deficit for the year (19,544) (23,266)


Total comprehensive income for the year attributable tomembers of MUH Operations No. 2 Pty Ltd (19,544) (23,266)


6

Page 188



Notes

2014

$'000

2013

$'000

ASSETS

Current assets

Cash and cash equivalents 4 1,683 663Trade and other receivables 5 15,929 15,630Inventories 6 4,318 4,171Other assets 7 118 118Total current assets 22,048 20,582

Non-current assets

Receivables 5 510 392Other assets 7 821 909Total non-current assets 1,331 1,301

TOTAL ASSETS 23,379 21,883

LIABILITIES

Current liabilities

Trade and other payables 8 10,860 10,068Other liabilities 10 429 634Provisions 11 3,784 3,670Total current liabilities 15,073 14,372

Non-current liabilities

Borrowings 9 72,964 52,637Other liabilities 10 2,515 2,677Provisions 11 546 372Total non-current liabilities 76,025 55,686

TOTAL LIABILITIES 91,098 70,058

NET ASSETS (67,719) (48,175)

EQUITY

Issued capital 12 70,000 70,000Accumulated deficit 13 (137,719) (118,175)

TOTAL EQUITY (67,719) (48,175)


7

Page 189


Statement of Changes in Equity For the Year Ended 31 December 2014

2014

IssuedCapital

$'000

AccumulatedDeficit

$'000

Total

$'000

Balance at 1 January 2014 70,000 (118,175) (48,175)

Deficit for the year - (19,544) (19,544)

Shares issued during the year - - -

Balance at 31 December 2014 70,000 (137,719) (67,719)

2013

IssuedCapital

$'000

AccumulatedDeficit

$'000

Total

$'000

Balance at 1 January 2013 - (94,909) (94,909)Deficit for the year - (23,266) (23,266)Shares issued during the year 70,000 - 70,000

Balance at 31 December 2013 70,000 (118,175) (48,175)

The Statement of Changes in Equity should be read in conjunction with the accompanying notes.

8

Page 190



Notes

2014

$'000

2013

$'000


Receipts from sale of goods and services 105,765 96,779Payments to suppliers and employees (106,245) (103,980)Net cash flows from operating activities 20 (480) (7,201)


Proceeds from borrowings 1,500 3,000Net cash flows from financing activities 1,500 3,000

Net increase (decrease) in cash and cash equivalents held 1,020 (4,201)Cash and cash equivalents at beginning of year 663 4,864Cash and cash equivalents at end of financial year 4 1,683 663

The Statement of Cash Flow should be read in conjunction with the accompanying notes.

9

Page 191





MUH Operations No. 2 Pty Ltd is a not for profit company limited by shares, incorporated and domiciled inAustralia and wholly owned by Macquarie University.

The registered office of the company is:

MUH Operations No. 2 Pty Ltd3 Technology PlaceMacquarie University NSW 2109


The principal accounting policies adopted in the preparation of the financial reports are set out below. Thesepolicies have been consistently applied to all the years presented, unless otherwise stated.

(b) Basis of preparation

These general purpose financial statements have been prepared in accordance with Australian AccountingStandards, including Australian Accounting Interpretations, the Corporations Act 2001, the Public Finance &Audit Act 1983, Public Finance and Audit Regulations 2010, Division 60 of the Australian Charities and Not-for-profits Commission Act 2012, Division 60 of the Australian Charities and Not-for-profits Commission Regulation2013 and Australian Accounting Standards and Interpretations. The directors have determined that thecompany is a not for profit entity for financial reporting purposes.

Going concern

The financial statements have been prepared on a going concern basis. The Company continues to receivefinancial support from Macquarie University, the parent entity, to meet its obligations.


The financial statements of MUH Operations No. 2 Pty Ltd comply with Australian Accounting Standards someof which contain requirements specific to not for profit entities that are inconsistent with International FinancialReporting Standards (IFRS) requirements.


The financial statements have been prepared on an accruals basis and are based on historical cost modified,where applicable, by the measurement at fair value of selected non-current assets, financial assets andfinancial liabilities.




10

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(b) Basis of preparation (continued)




(c) Foreign currency translation

(i) Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economicenvironment in which it operates (‘the functional currency'). The financial statements are presented inAustralian dollars, which is the Company's functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing atthe dates of the transactions. Foreign exchange gains and losses resulting from the settlement of suchtransactions and from the translation at year-end exchange rates of monetary assets and liabilitiesdenominated in foreign currencies are recognised in the statement of profit or loss.

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing atthe dates of the transactions.


Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed asrevenue are net of trade discounts and rebates.

The Company recognises revenue when the amount of revenue can be reliably measured, it is probable thatfuture economic benefits will flow to the entity and specific criteria have been met for each of the Company'sactivities as described below. The Company bases its estimates on historical results, taking into considerationthe type of customer, the type of transaction and the specifics of each arrangement.


(i) Fees and charges - sale of patient goods

A sale is recognised when patient goods have been provided to the patient, the patient has accepted the goodsprovided, and it is probable that financial benefits of the related receivables will flow to the hospital and can bemeasured reliably.

Patient goods include prostheses and associated items used during surgery.

Prostheses charges are based on scheduled charges for specific medical devices and associated itemsprovided.

11

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(d) Revenue recognition (continued)

(ii) Fees and charges - sale of patient services

A sale is recognised when patient services have been provided, the patient account has been accepted forpayment, and it is probable that financial benefits of the related receivables will flow to the hospital and can bemeasured reliably.

Patient services include surgical fees, hospital accommodation, nursing services, drugs and other materialsconsumed in the treatment of patients.

Service charges are based on the price specified in contracts and at point of sale, net of discounts and returnsat time of sale.

(iii) Other revenue

Other revenue is recognised when the goods and services are provided. For fixed price contracts, revenue isrecognised under the percentage of completion method, based on the actual service provided as a proportionof the total services to be provided.

Other revenue includes facilities sub leasing, parking, functions and events, and retail operations. These aremainly provided to non patients.

(iv) Consulting revenue

Revenue from consulting services are recognised in the accounting period in which the services are rendered.Consultation revenue is recognised under the percentage of completion method, based on the actual serviceprovided as a proportion of the total consultation to be provided.

(v) Interest revenue

Interest revenue is recognised on cash basis.

(e) Leases

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Companyas lessee are classified as operating leases (note 14). Payments made under operating leases (net of anyincentives received from the lessor) are charged to the statement of comprehensive income on a straight-linebasis, over the period of the lease.

Lease income from the operating leases where the Company is a lessor is recognised in income on a straightline basis over the lease term (note 14).


For statement of cash flows presentation purposes, cash and cash equivalents includes cash on hand, depositsheld at call with financial institutions, other short-term, highly liquid investments with original maturities of threemonths or less that are readily convertible to known amounts of cash and which are subject to an insignificantrisk of changes in value.

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Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using theeffective interest method, less provision for impairment. Trade receivables are generally due for settlementwithin 30 days.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectibleare written off by reducing the carrying amount directly. An allowance account (provision for impairment oftrade receivables) is used when there is objective evidence that the Company may not be able to collect allamounts due according to the original terms of the receivables. Significant financial difficulties of the debtor,probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency inpayments (more than 30 days overdue) are considered indicators that the trade receivable is impaired. Theamount of the impairment allowance is the difference between the asset's carrying amount and the presentvalue of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating toshort term receivables are not discounted if the effect of discounting is immaterial.

The amount of the impairment loss is recognised in the statement of comprehensive income within otherexpenses.

When a trade receivable for which an impairment allowance had been recognised becomes uncollectible in asubsequent period, it is written off against the allowance account. Subsequent recoveries of amountspreviously written off are credited against other expenses in the statement of comprehensive income.

(h) Inventories

All inventories are stated at the lower of cost and net realisable value. Cost comprises the actual value of directmaterials only, applied under the First In First Out (FIFO) basis.

Cost of inventory are determined after deducting rebates and discounts. Net realisable value is the estimatedselling price in the ordinary course of business less the estimated costs necessary to make the sale.

(i) Investments and other financial assets

Investment in associates

Associates are all entities over which the Company has significant influence but not control, generallyaccompanying a shareholding of between 20% and 50% of the voting rights. In the Company's separatefinancial statements, investments in associates are accounted as other financial assets.

- The parent entity prepares consolidated financial statements

- The parent and the company are not for profit entities complying with Australian Accounting Standards

Investments in associates are initially recognised at cost plus transaction costs. Investments are assessed ateach reporting date for objective evidence of impairment. Discounted cash flow modelling are used todetermine the extent of any impairment.

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(j) Fair value estimation

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement orfor disclosure purposes.

The carrying value less impairment provision of trade receivables and payables are assumed to approximatetheir fair values due to their short term nature. The fair value of financial liabilities for disclosure purposes isestimated by discounting the future contractual cash flows at the current market interest rate that is available tothe Company for similar financial instruments.

The Company does not have any financial instruments traded in active or inactive markets, derivative contractsor long term debt instruments, for each reporting date under review.

(k) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of thefinancial year, which are unpaid. The amounts are unsecured and are usually paid within 30 days ofrecognition.

(l) Provisions

Provisions for legal claims and service warranties are recognised when: the Company has a present legal orconstructive obligation as a result of past events; it is probable that an outflow of resources will be required tosettle the obligation and the amount can be reliably estimated. Provisions are not recognised for futureoperating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required tosettle the present obligation at the reporting date. The discount rate used to determine the present valuereflects current market assessments of the time value of money and the risks specific to the liability.

(m) Employee benefits


Liabilities for wages and salaries, including non-monetary benefits and annual leave that are expected to besettled within 12 months are measured at the amounts expected to be paid when the liabilities are settled.Liabilities for non-accumulating sick leave are recognised when the leave is taken and measured at the ratespaid or payable.

(ii) Other long-term obligations

The liability for other long-term employee benefits such as annual leave, accumulating sick leave and longservice leave is recognised in current provisions for employee benefits if it is expected to be settled whollybefore twelve months after the end of the reporting period. It is measured at the present value expected futurepayments to be made in respect of services provided by employees up to the reporting date using the projectedunit credit method. Consideration is given to expected future wage and salary levels, experience of employeedepartures and periods of service. Expected future payments are discounted using market yields at thereporting date on national government bonds with terms to maturity and currency that match, as closely aspossible, the estimated future cash outflows.

Regardless of the expected timing of settlements, provisions made in respect of employee benefits areclassified as a current liability, unless there is an unconditional right to defer the settlement of the liability for atleast 12 months after the reporting date, in which case it would be classified as a non-current liability.

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(m) Employee benefits (continued)


All employees of the Company are entitled to benefits from the Company's superannuation plan on retirement,disability or death. The defined contribution scheme receives fixed contributions from the Company and theCompany's legal or constructive obligation is limited to these contributions.

Defined superannuation contributions are recognised as an expense as they become payable. Prepaidcontributions are recognised as an asset to the extent that a cash refund or a reduction in the future paymentsis available.

(n) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurredis not recoverable from the taxation authority. In this case, it is recognised as part of the cost acquisition of theasset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount ofGST recoverable from, or payable to, the taxation authority is included with other receivables or payables in thestatement of financial position.


(o) Income Tax exemption

The Company is exempt from the payment of tax by virtue of Subdivision 50B of the Income Tax AssessmentAct 1997. Accordingly, no provision for income tax liability or future income tax benefit has been included in theaccounts.

(p) New Accounting Standards and interpretations

Certain new accounting standards and interpretations have been published that are not mandatory for 31December 2014 reporting periods and have not yet been applied to the financial statements. The Company'sassessment of the impact of these new standards and interpretations is that they will not materially affect any ofthe amounts recognised in the financial statements or significantly impact the disclosures in relation to theCompany.

(q) Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequentlymeasured at amortised cost. Any difference between the proceeds (net of transaction costs) and theredemption amount is recognised in profit or loss over the period of the borrowings using the effective interestmethod. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to theextent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred untilthe draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will bedrawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of thefacility to which it relates.

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(q) Borrowings (continued)

Borrowings are removed from the statement of financial position when the obligation specified in the contract isdischarged, cancelled or expired. The difference between the carrying amount of a financial liability that hasbeen extinguished or transferred to another party and the consideration paid, including any non cash assetstransferred or liabilities assumed, is recognised in the statement of comprehensive income as other income orfinance costs.

(r) Revenue received in advance

Revenue received in advance is recorded when patients pay anticipated hospital fees in advance of surgicaland medical services being provided. Until the surgical and medical services have been provided, thereremains a likelihood that patient arrangements may change and the intended services may not proceed at theintended time or may change in nature, resulting in a change to the intended fee.

As a result, patient fees paid in advance are recognised as a revenue received in advance until there isacceptance about the hospital's legal entitlement to collect patient fees for services rendered. In other words,revenue received in advance is transferred to revenue when the surgical and medical goods and services havebeen provided to the patient, the patient has accepted the goods and services provided, and it is probable thatfinancial benefits of the related receivables will flow to the hospital and can be measured reliably.

(s) Rounding of amounts


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2 Revenue and Other Income


2014

$'000

2013

$'000

Sale of goods

Prostheses 26,933 24,040

Total sale of goods 26,933 24,040

Services

Patient services revenue 71,020 64,603

Other revenue

Rents and sub-lease rentals 5,117 5,146Interest from financial assets not at fair value through profit or loss 56 51Commercial operations 1,125 962Consulting revenue 1,247 1,192Other 479 441

Total other revenue 8,024 7,792


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3 Expenses

2014

$'000

2013

$'000

Cost of goods and services

Prostheses 27,094 24,166Medical supplies 20,596 18,890Food and cleaning 2,814 2,635

Total cost of goods and services 50,504 45,691

Employee benefits and expenses

Employee costs - salaried staff 36,539 33,796Annual leave 4,664 4,628Workers compensation 17 -Superannuation 3,354 3,087Recruitment and training 296 227

Total employee benefits and expenses 44,870 41,738

Facilities management

Facilities management 5,900 5,827Rent 15,530 14,611

Total facilities management 21,430 20,438

Information technology and communication

Information technology 2,098 2,207Communication 67 86

Total information technology and communication 2,165 2,293

Professional & governance

Professional services 1,858 2,153Governance 90 88

Total professional & governance 1,948 2,241

Finance costs

Interest expense 3,136 5,477

Total finance cost 3,136 5,477

Allowance for impairment

Receivable 579 1,188

Total allowance for impairment 579 1,188

Total expenses 124,632 119,066

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4 Cash and Cash Equivalents

2014

$'000

2013

$'000

Cash on hand 4 3Cash at bank 1,679 660

Cash at bank and in hand 1,683 663

(a) Reconciliation to cash at the end of the year

The figures above are reconciled to cash at the end of the financial year as shown in the statement of cash flows asfollows:

2014

$'000

2013

$'000

Cash and cash equivalents 1,683 663

Balance as per statement of cash flows 1,683 663

(b) Risk exposure

The Company's exposure to interest rate risk is discussed in note 15. The maximum exposure to credit risk at the endof the reporting period is the carrying amount of each class of cash and cash equivalents mentioned above.

(c) Cash on hand

Cash on hand is non-interest bearing.

(d) Cash at bank

Bank balance, which includes the trading account and cash maximiser accounts, are bearing floating interest ratesbetween 0% and 2.45% (2013: between 0% and 2%).

(e) Fair value

The carrying amount for cash and cash equivalents equals the fair value.

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5 Trade and Other Receivables

2014

$'000

2013

$'000

CURRENTTrade receivables - patient fees 7,253 7,969Trade receivables - non-patient fees 1,142 1,062GST and other 401 808Allowance for impairment of receivables (a) (213) (165)

8,583 9,674Related party receivables

Receivable from other entities within the group 59 320Receivable from associates 46 15

105 335Accrued receivables

Accrued patient fee income 6,022 4,524Accrued commercial activity income 433 277

6,455 4,801Prepayments

Insurance 197 193Maintenance service contracts 589 627

786 820

Total current trade and other receivables 15,929 15,630

NON-CURRENTReceivables from associates 3,300 2,603Allowance for impairment (c) (2,790) (2,211)

Total non-current trade and other receivables 510 392

Total trade and other receivables 16,439 16,022

(a) Impairment of receivables - current

Reconciliation of changes in the provision for impairment of receivables is as follows:2014

$'000

2013

$'000

Balance at beginning of the year (165) (151)Additional impairment loss recognised (178) (83)Provision used 130 69

Balance at end of the year (213) (165)

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5 Trade and Other Receivables (continued)

(b) Past due but not impaired

As at 31 December 2014, trade receivables of $1.5m (2013 $0.88m) were past due but not impaired. Theserelate to a number of independent customers for whom there is no recent history of default. The ageing analysisof these trade receivables is as follows:

2014

$'000

2013

$'000

Up to 3 months 980 5283 to 6 months 518 352

1,498 880(c) Impaired receivables - non-current

As at 31 December 2014, the amount of the provision was $2.8m (2013 - $2.2m)

2014

$'000

2013

$'000

Balance at the beginning of the year (2,211) (1,023)Allowance for impairment recognised during the year (579) (1,188)

(2,790) (2,211)

(d) Past due but not impaired - non-current

As of 31 December 2014, trade receivables of $0.44m (2013 - $0.33m) were past due but not impaired. Theageing analysis of these trade receivables is as follows:

2014

$'000

2013

$'000

Up to 3 months 133 125Greater than 3 months 311 203

444 328(e) Fair value and credit risk

The Company has no significant concentration of credit risk with respect to any single counterparty or group ofcounterparties other than those receivables specifically provided for and mentioned within Note 5. The mainsource of credit risk to the Company is considered to relate to the class of assets described as 'trade and otherreceivables'.

6 Inventories

2014

$'000

2013

$'000

CURRENTTheatre consumables inventory - at cost 2,512 2,685Medical consumables inventory - at cost 1,758 1,431Kitchen and cleaning inventory - at cost 48 55

Total current inventories 4,318 4,171

Write downs of inventories to net realisable value during the year were NIL (2013: NIL).

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7 Other Assets

2014

$'000

2013

$'000

CURRENTLease incentive 118 118

Total current other assets 118 118

NON-CURRENTShare in associates 1,000 1,000Provision for impairment (1,000) (1,000)Lease incentive 821 909

Total non-current other assets 821 909

Total other assets 939 1,027

8 Trade and Other Payables

2014

$'000

2013

$'000

CURRENTTrade payables 7,006 6,090Accruals

3,854 3,978



9 Borrowings

2014

$'000

2013

$'000

NON-CURRENTLoans from related parties (unsecured) 72,964 52,637

Total non-current borrowings 72,964 52,637

As at 31 December 2014, the total 10 year evergreen facility was $120 million, of which $73 million has been drawndown. At 31 December 2014 $47 million remained available to be drawn.

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10 Other Liabilities

2014

$'000

2013

$'000

CURRENTRevenue received in advance 267 248Lease incentive 162 386

Total current other liabilites 429 634

NON-CURRENTLease incentive 2,515 2,677

Total non-current other liabilities 2,515 2,677

Total other liabilities 2,944 3,311

11 Provisions

2014

$'000

2013

$'000

CURRENTEmployee benefits - annual leave 2,472 2,270Other provision 1,312 1,400

Total current provisions 3,784 3,670

NON-CURRENTEmployee benefits - long service leave 546 372


Total provision 4,330 4,042

(a) Other provision - current

2014

$'000

2013

$'000

Balance at beginning of the year 1,400 846Additional provision recognised during the year 276 554Provision used during the year (364) -

Balance at the end of the year 1,312 1,400

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12 Issued Capital

2014

$'000

2013

$'000

Class B Funding Shares 70,000 70,000

Total issued capital 70,000 70,000

The holder of a Class B Funding Share has the following rights:

i) a right to attend a meeting of members;ii) a right to attend and vote at a meeting of Class B Shareholders; andiii) a right, on a winding up, after satisfaction of all the Company's debts and liabilities, to payment of the amount

then paid up on the share.

The holder of a Class B Funding Share does not have:

i) a right to vote at a meeting of members;ii) a right to participate in a dividend;iii) a right to payment on cancellation of the share;iv) a right to repayment of capital in a reduction of the Company's share capital; andv) a right to participate in a buy back of the Company's shares; or a right to participate in the distribution of the

surplus property of the Company on winding up.

13 Accumulated Deficit

2014

$'000

2013

$'000

Accumulated deficit at the beginning of thefinancial year (118,175) (94,909)Deficit for the year (19,544) (23,266)

Accumulated deficit at end of financial year (137,719) (118,175)

14 Commitments

(a) Lease commitments: Company as lessee

(i) Non-cancellable operating leases

The Company leases the hospital, medical equipment, and other plant and machinery from Macquarie University.Major risks occurring with the buildings and equipment are insured by the University and are the responsibility ofthe University. The Company does not have an option to acquire the building at the end of the lease.

2014

$'000

2013

$'000

Commitments for minimum lease payments in relation tonon-cancellable operating leases are payable as follows:Within one year 17,508 14,895Later than one year but not later than five years 44,276 47,944Later than five years 80,168 81,015Present value of minimum lease payments (including GST) 141,952 143,854

24

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14 Commitments (continued)

(a) Lease commitments: Company as lessee (continued)

(ii) Other commitments

2014

$'000

2013

$'000

Commitments in relation to other leases contracted for atthe reporting date but not recognised as liabilities, payable:Within one year 1,725 1,658Later than one year but not later than five years 3,040 625

Total (including GST) 4,765 2,283

(b) Revenue commitments: Company as lessor

The Company also leases the upper floors of the Clinic building from the University, and sub leases some spaceto medical specialists.

Rental revenue commitments have arisen upon negotiated contracts with medical specialists, with some contractsextending to 15 years.

2014

$'000

2013

$'000

Within one year 3,927 3,643Later than one year and not later than five years 12,254 10,176Later than five years 2,922 3,718

Total (including GST) 19,103 17,537

(c) Capital commitments

The Company does not have any capital commitments as at 31 December 2014 (31 December 2013: NIL).

25

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The Company's activities expose it to a variety of financial risks: market risk (including interest rate risk), credit risk andliquidity risk. The Company's overall risk management program focuses on the unpredictability of financial markets andseeks to minimise potential adverse effects on the financial performance of the Company. The Company uses differentmethods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in thecase of interest rate, foreign exchange and other price risks and ageing analysis for credit risk.

The Company holds the following financial instruments:2014

$'000

2013

$'000

Cash and cash equivalents 1,683 663Trade and other receivables (excluding pre-payment andstatutory receivables) 15,252 14,394

Total financial assets 16,935 15,057

Trade and other payables 10,860 10,068Borrowings 72,964 52,637

Total financial liabilities 83,824 62,705

(a) Liquidity risk

Liquidity arises from the company's management of working capital and the finance charges and principlerepayments. It is the risk that the company will encounter difficulties in meeting their financial obligations as theyfall due.

Liquidity risk management ensures maintaining sufficient cash and marketable securities and the availability offunding through an adequate credit facility to meet obligations when due and close out market positions. Refer toDirectors' report for details of the loan facility from the parent entity, Macquarie University.

Maturities of financial liabilities

The tables below analyse the Company's financial liabilities into relevant maturity groupings as follows:


(i) all non-derivative financial liabilities; and

(b) based on the remaining period to the expected settlement date:

(i) derivative financial liabilities for which the contractual maturities are not essential or an understanding of the timing of the cash flows (not applicable to the company in 2014 or 2013).

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(a) Liquidity risk (continued)


Less than 6 months Greater than 5 Years

2014

$'000

2013

$'000

2014

$'000

2013

$'000

Borrowings - - 72,964 52,637Trade payables 10,860 10,068 - -

Total 10,860 10,068 72,964 52,637

(b) Market risk

(i) Cash flow and fair value interest rate risk

The Company's main interest rate risk arises from operational borrowings from Macquarie University. Borrowingsissued at variable rates expose the Company to cash flow interest rate risk. Borrowings issued at fixed ratesexpose the Company to fair value interest rate risk if the borrowings are carried at fair value.

As at the end of the reporting period, the Company had the following variable rate borrowings:

31 December 2014 31 December 2013

% $'000 % $'000

Loans 4.74 72,964 4.58 52,637

Net exposure to cash flow interest rate risk 4.74 72,964 4.58 52,637

An analysis by maturities is provided in 15(a).

The Company's borrowings attract fixed interest rates on a quarterly basis. The Company's borrowings andreceivables are carried at amortised cost.

The Company analyses its interest rate exposure on a dynamic basis. Various scenarios are simulated taking intoconsideration refinancing, renewal of existing positions, alternative financing and hedging. Based on thesescenarios, the Company calculates the impact on profit or loss of a defined interest rate shift. The scenarios arerun only for liabilities that represent the major interest bearing positions. The simulation is done on a need basis toverify that the maximum loss potential is within the limit given by management.

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(ii) Summarised sensitivity analysis

The following table summarieses the sensitivity of the Company's financial assets and financial liabilities to interestrate risk:

-1% +1%

Balance Profit Equity Profit Equity

$'000 $'000 $'000 $'000 $'000

31 December 2014

Financial assets

Cash and cash equivalents 1,683 (17) (17) 17 17

Other non-current assets - receivablesfrom associates 510 (5) (5) 5 5

Total increase/(decrease) in financialassets 2,193 (22) (22) 22 22


Borrowings (72,964) 730 730 (730) (730)

Total Increase/(decrease) in financialliabilities (72,964) 730 730 (730) (730)

Total increase/(decrease) (70,771) 708 708 (708) (708)

31 December 2013

Financial assets

Cash and cash equivalents 663 (7) (7) 7 7

Other non-current assets - receivablesfrom associates 392 (4) (4) 4 4

Total increase/(decrease) in financialassets 1,055 (11) (11) 11 11


Borrowings (52,637) 526 526 (526) (526)

Total increase/(decrease) in financialliabilities (52,637) 526 526 (526) (526)

Total increase/(decrease) (51,582) 515 515 (515) (515)

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(c) Credit risk

The credit risk on financial assets of the Company which have been recognised on the statement of financialposition is generally the carrying amount, net of provision for loss. Credit risk arises when there is the possibilityof the Company's debtors defaulting on their contractual obligations, resulting in financial loss to the Company.The Company does not have any significant exposure to any unrelated customer.

2014

$'000

2013

$'000

Trade receivables

Counterparties - Patient Debtors 7,253 7,969Counterparties - Others Non Patient Debtors 1,543 1,870

8,796 9,839

Cash at bank and short term bank deposit 1,683 663


(a) Directors

The following persons were directors of MUH Operations No. 2 Pty Ltd during the financial year:

(i) Chairman - Non-executive

Dr P R Dodd

(ii) Non-executive directors

Dr M G IrvingMr M R ComptonMs E M JohnstoneMr P J Gorman (Alternate Director to Dr Dodd)Emeritus Professor B H BarracloughMr G M JonesMs E Crouch

(b) Executive management

Ms C. Bryant, Chief Executive OfficerMr P. Jasani, Chief Financial OfficerMs C. Kennedy, Director Clinical Services

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16 Key Management Personnel Disclosures (continued)

(c) Key management personnel compensation

The totals of remuneration paid to the key management personnel of MUH Operations No. 2 Pty Ltd during theyear are as follows:

2014

$'000

2013

$'000

Short-term employee benefits 1,070 1,749Long-term benefits - 11

Total key management personnel remuneration 1,070 1,760


2014

$'000

2013

$'000

NSW Audit Office - External Audit

Audit of financial statements 90 87Deloitte Touche Tohmatsu - Internal Audit

Internal audit, review of financial systems and controls 19 68

109 155

18 Contingencies

In the assessment of the Directors, the Company did not have any contingencies at 31 December 2014 (31 December2013: None).

19 Related Parties

(a) Parent entities

The ultimate parent entity, which exercises control over the Company, is Macquarie University which controls 100%of the company.

(b) Directors

Refer to note 16 for the list of Directors.

(c) Support from Macquarie University

On 4 December 2014 Macquarie University council resolved that funds would continue to be lent to MUHOperations No. 2 Pty Ltd to enable MUH Operations No. 2 Pty Ltd to meet its obligations.

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19 Related Parties (continued)


Amounts receivable from and payable to the parent entity are included in Notes 5, 8 and 9 of the financialstatements. There were no commercial transactions between the Company and the Directors or with organisationswith which the directors held a substantial financial interest.

Revenue Expenses Receivable Payable Loan Equity

$'000 $'000 $'000 $'000 $'000 $'000

Related parties

Macquarie University 1,354 19,664 59 3,189 72,964 70,000Access Macquarie Ltd - 23 - - - -U@MQ - 4 - - - -

Total 1,354 19,691 59 3,189 72,964 70,000

20 Reconciliation of Result for the Year to Net Cashflows from Operating Activities

2014

$'000

2013

$'000

Deficit for the year (19,544) (23,266)Non-cash flows in profit

Non-cash rent expense 15,692 14,772Non-cash interest expense 3,135 5,477

Changes in assets and liabilities

(increase)/decrease in trade and other receivables (446) (1,435)(increase)/decrease in other operating assets 33 88(increase)/decrease in inventories (147) (447)increase/(decrease) in trade creditors 498 (2,601)increase/(decrease) in income operating liabilities (162) (161)increase/(decrease) in employee provisions 461 372

Net cashflows from operating activities (480) (7,201)


No matters or circumstances have arisen since the end of the financial year which significantly affected ormay significantly affect the operations of the Company, the results of those operations, or the state of affairsof the Company in future financial years.

End of audited financial statements.

31

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Page 214

Page 215

Page 216

MUPH Clinic Pty LimitedACN 127 854 111



Page 217



Page


Directors' Report 1Auditors Independence Declaration under Section 307C of the Corporations Act 2001 3Statement of Profit or Loss and Other Comprehensive Income 4Statement of Financial Position 5Statement of Changes in Equity 6Statement of Cash Flows 7Notes to the Financial Statements 8Directors' Declaration 12Independent Audit Report 13

Page 218



The directors present their report on MUPH Clinic Pty Limited for the financial year ended 31 December 2014.


Directors


Patrick John GormanPeter Raymond Dodd


Company secretary

Mr Patrick John Gorman held the position of Company Secretary during and at the end of the financial year.


The principal activity of MUPH Clinic Pty Limited was to act as the Trustee Company for the MUPH Clinic Sub Trust,this trust was deregistered in 2010 and the Company has remained dormant since.



Operating results

The Company did not trade during the financial year and therefore reported a nil operating result




The Company did not trade during the financial year and therefore reported a nil operating result (2013: Nil).

3. Other items


There has been no activity involving financial transactions during the financial year.



1

Page 219

Page 220

Page 221



2014

$

2013$

Revenue


Total revenue - -

Expenses


Total expenses - -



Total comprehensive income for the yearattributable to members of MUPH Clinic PtyLimited - -


4

Page 222



Note

2014

$

2013$

ASSETS

CURRENT ASSETS


LIABILITIES

CURRENT LIABILITIES


EQUITY



5

Page 223



2014

Note

Contributedequity

$

Total

$




2013

Note

Contributedequity

$

Total

$




6

Page 224



Note

2014

$

2013$










7

Page 225





MUPH Clinic Pty Limited is a private company, incorporated and operating in Australia and acts as the TrusteeCompany for the MUPH Clinic Sub Trust.

The registered office of the company is MUPH Clinic Pty Limited, Office of Financial Services, Building E11A,Macquarie University NSW 2109.



MUPH Clinic Pty is a not-for-profit entity and these statements have been prepared on that basis. Some of theAustralian Accounting Standards requirements for not-for-profit entities are inconsistent with the IFRSrequirements.



The financial statements and notes of MUPH Clinic Pty Limited comply with Australian Accounting Standards,some of which contain requirements that are inconsistent with International Financial Reporting (IFRS)requirements.






8

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Revenue is recognised by reference to the stage of completion of the project. The stage of completion isdetermined on a project-by-project basis with reference to the underlying contracts and achievement of projectmilestones. Revenue is measured at the fair value of the considerations received or receivable.







9

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2014

$

2013$


2 2



2014

$

2013$




2014

$

2013$


Major shareholder - MU Hospital Pty Limited (100%).

4 Commitments

There were no commitments for capital expenditure at 31 December 2014 (2013: Nil).



Patrick John GormanPeter Raymond Dodd



2014

$

2013$




10

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7 Contingencies


8 Related Parties


There were no transactions with related parties during 2014 (2013: None).



2014

$

2013$


- (increase)/decrease in trade and other receivables - 1Net cash flows from operating activities - 1


No matters or circumstances have arisen since the end of the financial year which significantly affected or maysignificantly affect the operations of the Company or the results of those operations (2013: None).


11

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Page 230

Page 231

Page 232

Risk Frontiers Flood (Australia) Pty LtdABN 96 130 190 206



Page 233



Page


Directors' Report 1Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 5Statement of Profit or Loss and Other Comprehensive Income 6Statement of Financial Position 7Statement of Changes in Equity 8Statement of Cash Flows 9Notes to the Financial Statements 10Directors' Declaration 27Independent Audit Report 28

Page 234



The directors present their report on Risk Frontiers Flood (Australia) Pty Ltd for the financial year ended 31 December2014.

General information

Directors

The names of the directors in office at any time during, or since the end of, the year are:

Peter Dodd

Qualifications PhD Rochester, Msc Rochester, MComm Queensland,BComm Newcastle.Experience

Joined Macquarie University as Deputy Vice -Chancellor and ChiefOperating Officer in July 2009. He has over 25 years of seniormanagement in both the private sector and universities. Most recently hewas Chief Financial Officer of North American Energy Partners which is aNew York Stock Exchange listed construction and mining companyoperating in the Oil Sands of North Alberta. Prior to that he was ManagingDirector of Access Macquarie. Peter had over 20 years in InvestmentBanking and was Global Head of Corporate Finance for ABN Amro. Hewas Professor of Finance and later Dean of Australian Graduate School ofManagement at the University of New South Wales and AssociateProfessor of Finance at the graduate School of Business at the Universityof Chicago.

Area of Responsibility Executive Director

James Piper

BSc Otago, PhD Otago, FOSA, FAIP.Experience

Deputy Vice-Chancellor (Research) (DVC(R)) at Macquarie University inSydney from 2003 to 2013. Extensive expertise and experience gainedfrom over 30 years of research in lasers, optics and photonics, andapplications in micro fabrication. Distinguished awardsincluding the Pawsey Medal (1982), the Australian Optical Society Medal(1997) and more recently the Carnegie Centenary Professorship from theCarnegie Trust Universities of Scotland (2004)

Area of Responsibility Executive Director

Kevin John McAneney

Qualifications B.SC.(Hons) M.S.,Ph.D.Experience

Reappointed on August 2012 and John's specialty hazards interests are inbushfire, flood, volcanic and seismic risk and decision-making and policyissues surrounding a wide range of natural hazards. He has expertise inProbabilistic Modelling, Quantitative Risk Assessment and Cost Benefitand Real Options analyses. John's earlier background was in physics, soilscience, weather risk and financial risk analysis. He has 95 refereedpublications on various aspects of weather risk, boundary layer physicsand natural catastrophe risks.

Area of Responsibility Managing Director

1

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Also Mr Peter Cheesman is also a director (appointed on 14 March 2013) of Risk Frontiers Flood (Australia) Ltd. Peterholds a Master of Science Degree from the University of Nottingham, UK. He is the head of research and innovationacross the Asia Pacific area at Aon Benfield. There is a large focus on bespoke client solutions covering aspectsrelated to natural catastrophe analysis particularly in providing direct pricing or underwriting solutions to enableinsurers to technically factor in the loadings for catastrophes.

No Director has received or become entitled to receive a benefit, other than disclosed in the accounts, because of acontract made by the Company, or a related body corporate with a Director, a firm of which a Director is a member oran entity in which a Director has a substantial financial interest. This statement excludes a benefit included in theaggregate amount of emoluments received or due and receivable by Directors shown in the accounts, or the fixedsalary of a full-time employee of the Company, or a related body corporate, by reason of a contract made by theCompany or a related body corporate with the Director or with a firm of which he/she is a member, or with an entity inwhich he/she has a substantial financial interest.

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

Company secretary

Ms Gayathri Wijesurya held the position of Company Secretary during and at the end of financial year.


The principal activity of Risk Frontiers Flood (Australia) Pty Ltd during the financial year was specialising in quantitativeflood risk assessment and risk management for residential properties in Australia and develops and suppliesspecialised flood risk databases to the insurance industry.



The Company commenced operations on 17 March 2008. The Company negotiated and executed an agreement, inSeptember 2008, with the Insurance Council of Australia (“ICA”) to provide its services and a national flood informationdatabase (“NFID”) to the ICA and to corporate Members of the ICA.

The Company has also been maintaining NFID as part of a five year maintenance program. Pursuant to its contractwith the Company, Willis Reinsurance Australia Limited, has been providing certain sub-contracted services to theCompany relating to the additions to NFID and its maintenance

In 2010 the Company began investigating aspects of volcanic risk as it pertains to natural hazard risk to insuredproperties and this work has continued through 2014.

During 2010 and 2011 the ICA, pursuant to the above agreement with RFFA, has been developing the market for sub-licensing NFID to insurance companies and actuaries that are not members of the ICA. This should result in furtherrevenue for the Company in 2014 and ensuing years.

Meetings of Directors

Numbereligible to

attendNumberattended

Peter Dodd 3 3James Piper 3 3Kevin McAneney 3 3Peter Cheesman 3 3

2

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Operating results

The profit of the Company after providing for income tax amounted to $27,000 (2013 :$17,000).







Future developments and results

Likely developments in the operations of the Company and the expected results of those operations in future financialyears have not been included in this report as the inclusion of such information is likely to result in unreasonableprejudice to the Company.


The Company's operations are not regulated by any significant environmental regulations under a law of theCommonwealth or of a state or territory of Australia.

Rounding of amounts

The Company is an entity to which ASIC Class Order 98/100 applies and, accordingly, amounts in the financialstatements and Directors' Report have been rounded to the nearest thousand dollars.

Indemnification and insurance of officers and auditors


Proceedings on behalf of company

No person has applied for Leave of Court to bring proceedings on behalf of the Company or intervene in anyproceedings to which the Company is a party for such purpose of taking responsibility on behalf of the Company for allor any part of those proceedings.

Auditor's independence declaration

The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, for theyear ended 31 December 2014 has been received and can be found on page 5 of the financial report.

Signed in accordance with a resolution of the Board of Directors:

3

Page 237

Page 238

Page 239



Note

2014

$'000

2013$'000


Rendering of services 997 1,139Expenses from continuing operations - -Employee benefit expense 2 - (65)Consultants (721) (784)Personnel services expense (217) (213)Other expenses 2 (46) (47)

Total expenses from continuing operations (984) (1,109)

Profit /(loss)before income tax 13 30Income tax benefit / (expense) 9 14 (13)

Profit from continuing operations after income tax 27 17

Other comprehensive income for the year, net of tax - -

Total comprehensive income for the year 27 17

Total comprehensive income attributable to Ownersof Risk Frontiers Flood (Australia) Pty Limited 27 17

The above Statement of Profit or Loss and other Comprehensive Income should be read in conjunction with theaccompanying notes.

6

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Note

2014

$'000

2013$'000

ASSETS

Current assets

Cash and cash equivalents 3 73 9Trade and other receivables 4 123 309Total current assets 196 318Non -current assets

Plant and equipment 5 1 3Deferred tax assets 10 7 -Total non-current assets 8 3Total assets 204 321

LIABILITIES

Current liabilities

Trade and other payables 6 47 184Total current liabilities 47 184Non-current liabilities

Deferred tax liabilities 10 - 7Total non-current liabilities - 7Total liabilities 47 191NET ASSETS 157 130

EQUITY

Retained earnings 7 157 130TOTAL EQUITY 157 130

The above Statement of Financial position should be read in conjunction with the accompanying notes.

7

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2014

Note

RetainedEarnings

$'000

ContributedEquity

$'000

Total

$'000


Total other comprehensive income for the year 7 27 - 27


2013

Note

RetainedEarnings

$'000

ContributedEquity

$'000

Total

$'000

Balance at 1 January 2013 113 - 113Total other comprehensive income for the year 7 17 - 17



8

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Note

2014

$'000

2013$'000


Receipts from customers 1,283 1,206Payments to suppliers and employees (1,233) (1,196)Income taxes paid 14 (13)Net cash provided by (used in) operating activities 17 64 (3)


Net cash used by investing activities - -


Net cash used by financing activities - -

Net increase / (decrease) in cash and cashequivalents held 64 (3)Cash and cash equivalents at beginning of year 9 12Cash and cash equivalents at end of financial year 3 73 9


9

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This financial report covers Risk Frontiers Flood (Australia) Pty Ltd as an individual entity. Risk Frontiers Flood (Australia)Pty Ltd is a for profit company limited by shares, incorporated and domiciled in Australia.

The functional and presentation currency of Risk Frontiers Flood (Australia) Pty Ltd is Australian dollars.

The financial statements were authorised for issue by the board members of the company on -------------------.


(a) Basis of Preparation

The financial statements are general purpose financial statements that have been prepared in accordance withAustralian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements ofthe Australian Accounting Standards Board and the Corporations Act 2001.The financial statements arepresented in Australian dollars. The directors have assessed the entity as a for profit entity for financialreporting purposes. Risk Frontiers Flood (Australia) Pty Ltd is a controlled entity of Risk Frontiers Group Pty Ltdwhich, in turn, is a controlled entity of Access Macquarie Limited. The ultimate parent entity is MacquarieUniversity.

These financial statements and notes comply with International Financial Reporting Standards as issued by theInternational Accounting Standards Board.

The significant accounting policies used in the preparation and presentation of these financial statements areprovided below and are consistent with prior reporting periods unless otherwise stated.

The financial statements are based on historical costs, except for the measurement at fair value of selectednon-current assets, financial assets and financial liabilities.

In the preparation of the financial statements, management is required to make judgements, estimates andassumptions about the carrying values of assets and liabilities that are not readily apparent from other sources.The estimates and associated assumptions are based on historical experience and various other factors thatare believed to be reasonable under the circumstances, the results of which form the basis of making thejudgements. Actual results may vary from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accountingestimates are recognised in the period in which the estimate is revised if the revision affects only that period, orin the period of the revision and future periods if the revision affects both current and future periods.Judgements made by management in the application of the Australian Accounting Standards that havesignificant effects on the financial statements and estimates, with a significant risk of material adjustments inthe next year are disclosed, where applicable, in the relevant notes to the financial statements


The Company is an entity to which ASIC Class Order 98/100 applies and, accordingly, amounts in thefinancial statements and Directors' Report have been rounded to the nearest thousand dollars.

(b) Historical cost convention

Comparatives are consistent with prior years, unless otherwise stated. The financial statements have beenprepared on an accruals basis and is based on historical costs and do not take into account changing moneyvalues or, except where stated, the revaluation of certain classes of assets and liabilities. Cost is based on thefair values of the consideration given in exchange for assets.

10

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(c) Plant and Equipment

Plant & equipment are stated at historical cost less depreciation. Historical cost includes expenditure that isdirectly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carryingamount or recognised as a separate asset, as appropriate, only when it is probable that future economicbenefits associated with the item will flow to the entity and the cost of the item can be measured reliably. Allother repairs and maintenance are charged to the income statement during the financial period in which theyare incurred.

(i) Depreciation

The depreciable amount of all property, plant and equipment, except for freehold land is depreciated ona straight-line method from the date that management determine that the asset is available for use.

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

Furniture, Fixtures and Fittings 20-33%


When an assets is disposed, the gain or loss is calculated by comparing proceeds received with its carryingamount and is taken to profit or loss.


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

(e) Provisions

Provisions are recognised when the entity has a legal or constructive obligation, as a result of past events,forwhich it is probable that an outflow of economic benefits will result and that outflow can be reliablymeasured.Provisions are measured at the present value of management's best estimate of the outflow requiredto settlethe obligation at the end of the reporting period. The discount rate used is a pre tax rate that reflectscurrentmarket assessments of the time value of money and the risks specific to the liability. The increase intheprovision due to the unwinding of the discount is taken to finance costs in the statement of profit or loss andother comprehensive income.

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(f) Employee benefits

Provision is made for the Company's liability for employee benefits arising from services rendered byemployees to the end of the reporting period. Employee benefits that are expected to be settled within one yearhave been measured at the amounts expected to be paid when the liability is settled, plus related on-costs.Thebalances of these provisions as at the end of the financial year have been categorised for Statement ofFinancial Position purposes as either current liabilities or non-current liabilities. Employee entitlements foraccrued annual leave and long service leave are accrued annually using the nominal basis of measurementbeing remuneration rates that the Company expects to pay as at each reporting date and does not discountcash flows to their present value because the difference between the two methods of calculation is not material.The Company contributes to a defined contribution superannuation fund on behalf of its employees as requiredby law and contributions are charged as expenses when incurred. Superannuation expense is calculated as apercentage of the employees’ salary, per the Superannuation Guarantee Levy. During the year ended 31December 2014, no employee benefits were paid as the company does not employ any staff.

(g) Trade and other payables

Trades and other payables are carried at amortised cost. Trade payables and other accounts payable arerecognised when the economic entity becomes obliged to make future payments resulting from the purchase ofgoods and services

(h) Income Tax

The tax expense recognised in the statement of profit or loss and other comprehensive income relates tocurrent income tax expense plus deferred tax expense (being the movement in deferred tax assets andliabilities and unused tax losses during the year).

Current tax is the amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for theyear and is measured at the amount expected to be paid to (recovered from) the taxation authorities, using thetax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is provided on temporary differences which are determined by comparing the carrying amounts oftax bases of assets and liabilities to the carrying amounts in the consolidated financial statements.

Deferred tax is not provided for the following:

The initial recognition of an asset or liability in a transaction that is not a business combination and at thetime of the transaction, affects neither accounting profit nor taxable profit (tax loss).

Taxable temporary differences arising on the initial recognition of goodwill.

Temporary differences related to investment in subsidiaries, associates and jointly controlled entities tothe extent that the Group is able to control the timing of the reversal of the temporary differences and it isprobable that they will not reverse in the foreseeable future.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period whenthe asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted orsubstantively enacted by the end of the reporting period.

Deferred tax consequences relating to a non-monetary asset carried at fair value are determined using theassumption that the carrying amount of the asset will be recovered through sale.

12

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(h) Income Tax continued

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses to the extentthat it is probable that taxable profit will be available against which the deductible temporary differences andlosses can be utilised.

Current tax assets and liabilities are offset where there is a legally enforceable right to set off the recognisedamounts and there is an intention either to settle on a net basis or to realise the asset and settle the liabilitysimultaneously.

Deferred tax assets and liabilities are offset where there is a legal right to set off current tax assets againstcurrent tax liabilities and the deferred tax assets and the deferred tax liabilities relate to income taxes levied bythe same taxation authority on either the same taxable entity or different taxable entities which intend either tosettle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilitiessimultaneously in each future period in which significant amounts of deferred tax liabilities or assets areexpected to be settled or recovered.

Current and deferred tax is recognised as income or an expense and included in profit or loss for the periodexcept where the tax arises from a transaction which is recognised in other comprehensive income or equity, inwhich case the tax is recognised in other comprehensive income or equity respectively.

(i) Trade Receivables

Receivables are recognised initially at fair value usually based on transaction costs or face value subsequent tomeasurement at amortised cost using the effective interest method less an allowance for impairment ofreceivables. Trade receivables are carried at amounts due. Payment terms are 30 days net. Bad debts arewritten off during the period in which they are identified and provision for impairment of trade receivables iscreated based on a review of all outstanding amounts periodically or at 31 December.

(j) Revenue and other income

Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economicbenefits associated with the transaction will flow to the entity and specific criteria relating to the type of revenueas noted below, has been satisfied.



(i) Investment income

Interest is recognised using the effective interest method.

(ii) Service Revenue

Revenue in relation to rendering of services is recognised depends on whether the outcome of theservices can be measured reliably. If this is the case then the stage of completion of the services isused to determine the appropriate level of revenue to be recognised in the period.

If the outcome cannot be reliably measured then revenue is recognised to the extent of expensesrecognised that are recoverable.

13

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(k) Borrowing costs

Borrowing costs (or finance costs) are interest and other costs incurred by an entity in connection with theborrowing of funds. Borrowing costs may include:

(i) Interest on bank overdrafts and short-term and long-term borrowings;

(ii) Amortisation of discounts or premiums relating to borrowings;

(iii) Amortisation of ancillary costs incurred in connection with the arrangement of borrowings;

(iv) Finance charges in respect of finance leases; and

(v) Exchange differences arising from foreign currency borrowings to the extent that they areregarded as an adjustment to interest costs

All other borrowing costs are recognised as an expense in the period in which they are incurred.

(l) Goods and Services Tax (GST)





(m) Foreign currency transactions and balances


The functional currency of each of Risk Frontiers Flood (Australia) Pty Ltd's entities is measured using thecurrency of the primary economic environment in which that entity operates. The financial statements arepresented in Australian dollars which is the parent entity's functional and presentation currency.


Foreign currency transactions are recorded at the spot rate on the date of the transaction.

At the end of the reporting period:

Foreign currency monetary items are translated using the closing rate;

Non-monetary items that are measured at historical cost are translated using the exchange rate at thedate of the transaction; and

14

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(m) Foreign currency transactions and balances continued

Non-monetary items that are measured at fair value are translated using the rate at the date when fairvalue was determined.

Exchange differences arising on the settlement of monetary items or on translating monetary items at ratesdifferent from those at which they were translated on initial recognition or in prior reporting periods arerecognised through profit or loss, except where they relate to an item of other comprehensive income orwhether they are deferred in equity as qualifying hedges.

(n) Adoption of new and revised accounting standards

In the current year the Company has adopted all of the new and revised Standards and Interpretations issuedby the AASB that are relevant to the operations and effective for the current reporting period. Details of theimpact of the adoption of these new accounting standards are set out in the individual accounting policies notesin the financial report. Certain new accounting standards and interpretations have been published that are notmandatory for the 31 December 2014 reporting period. The Company did not early adopt any new accountingstandards that are not yet effective. The Company has assessed the impact of the new standards andinterpretations on issue but not effective and considers the impact to be insignificant.

(o) Acquisition of assets

Assets acquired are recorded at the cost of acquisition being the purchase consideration determined as at thedate of acquisition plus costs incidental to the acquisition. Company policy is to capitalise Assets with a value inexcess of $5000. The carrying value of the plant and equipment are measured at depreciated historic cost.There is no substantive difference between the fair value and the carrying value of these assets, and historicalcost is a surrogate for fair value due to the short lived nature of the asset. Non-current assets (including thosethat are part of a disposal group) are not depreciated or amortised while they are classified as held for sale.Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continueto be recognised .

(p) Related party disclosure

Where the term “related parties” is used in the financial report, it refers to:

Entities which, at any time during the year, exercised control or significant influence over the Group or weresubject to control or significant influence by the Group. This includes:

- associated companies;

- directors;

- spouses and other close members of the families of the directors; individuals or close members of thefamilies or such individuals who have significant influence or close members of the families of such individualswho have significant influence or control over the company through holding an ownership interest.

15

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2 Expenses

The result for the year includes the following specific expenses:2014

$'000

2013$'000

Employee benefit expense

Salaries and Wages - 51Superannuation - 5Other employment expense - 9

Total employee benefit expense - 65Other expenses

- Legal Fees 22 -- Depreciation 2 7- Audit fees 15 17- Accounting fees 6 6- other expenses 1 17

Total other expenses 46 47


2014

$'000

2013$'000

Short-term bank deposits 3 2Cash at bank and on hand 70 7

Total cash at bank and on hand 73 9


The above figures are reconciled to cash at the end of the financial year as shown in the statement of cashflows as follows:

2014

$'000

2013$'000




2014

$'000

2013$'000

CURRENT

Trade receivables 88 274

88 274Trade Receivables-Related party - -Other receivables 11 -Accrued Income 24 35

Total trade and other receivables 123 309

16

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4 Trade and other receivables continued

Related party is Access Macquarie Limited.

No trade receivables are considered impaired.

5 Property, plant and equipment

(a) Movements in carrying amounts of property, plant and equipment

Movement in the carrying amounts for each class of property, plant and equipment between the beginning andthe end of the current financial year

Plant andEquipment

$'000

Total

$'000


Balance at the beginning of the year 3 3

Additions - -

Depreciation expense (2) (2)

Balance at the end of the year 1 1

At 31 December 2014

Cost 44 44

Accumulated depreciation (43) (43)

Net book amount 1 1

Plant andEquipment

$'000

Total

$'000


Balance at the beginning of the year 10 10Additions - -Depreciation expense (7) (7)

Balance at the end of the year 3 3

At 31 December 2013

Cost 44 44Accumulated depreciation (41) (41)

Net book amount 3 3

17

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2014

$'000

2013$'000

CURRENT

Trade payables 28 134Intercompany - 19Accrued Liabilities 10 5GST payable 9 26

Total Trade and other payables 47 184

Related party is Access Macquarie Ltd in both years.

7 Retained Earnings

2014

$'000

2013$'000

Retained earnig at the beginning of thefinancial year 130 113Net profit (loss) for the year 27 17

Retained earnings at end of thefinancial year 157 130

18

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The Company is exposed to a variety of financial risks through its use of financial instruments. The most significantfinancial risks to which the Company is exposed to are Market risk - currency risk, cash flow interest rate risk, Creditrisk and Liquidity risk.


The Company‘s overall risk management plan seeks to minimise potential adverse effects due to the unpredictability offinancial markets.

Objectives, policies and processes

The main risks Risk Frontiers Flood (Australia) Pty Ltd is exposed to through its financial instruments are credit risk,liquidity risk and market risk consisting of interest rate risk, foreign currency risk and equity price risk.

The Company's financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payable, bank loans and overdrafts, loans to and from subsidiaries, bills,leases, preference shares, and derivatives.

The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in theaccounting policies to these financial statements, are as follows:

2014

$'000

2013$'000

Financial Assets

Cash and cash equivalents 73 9Trade and other receivables 123 298

Total financial assets 196 307


Financial liabilities at amortised costTrade and other payables 39 158

Total financial liabilities 39 158

Liquidity risk



The Company manages its liquidity needs by carefully monitoring scheduled debt servicing payments for long-termfinancial liabilities as well as cash outflows due in day-to-day business.

Liquidity needs are monitored in various time bands, on a day-to-day and week-to-week basis, as well as on the basisof a rolling 30-day projection. Long-term liquidity needs for a 180-day and a 360-day period are identified monthly.

19

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8 Financial Risk Management continued

At the reporting date, these reports indicate that the Company expected to have sufficient liquid resources to meet itsobligations under all reasonably expected circumstances and will not need to draw down any of the financing facilities.

The Company‘s liabilities have contractual maturities which are summarised below:

less than 1 year 1 to 5 years More than 5 years Total

2014

$'000

2013$'000

2014

$'000

2013$'000

2014

$'000

2013$'000

2014

$'000

2013$'000

Trade payables 39 158 - - - - 39 158

Total 39 158 - - - - 39 158

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changesin market prices. The Group is not exposed to market risk. The Group has no exposure to foreign currency risk anddoes not enter into commodity contracts. The Group has no investments in listed equity securities and as such is notexposed to price risk.

The effect on profit and equity due to a reasonably possible change in risk variable is outlined in the information below,for interest rate risk. A reasonably possible change in risk variable has been determined after taking into account theeconomic environment in which the Group operates and the time frame for the assessment (i.e. until the end of thenext annual reporting period). The sensitivity analysis is based on risk exposures in existence at the balance sheetdate. The analysis assumes that all other variables remain constant.

(i) Cash flow interest rate sensitivity

The following table illustrates the sensitivity of the net result for the year and equity to a reasonably possible change ininterest rates of +1.00% and -1.00% (2013: +1.00%/-1.00%), with effect from the beginning of the year. Thesechanges are considered to be reasonably possible based on observation of current market conditions.

The calculations are based on the financial instruments held at each reporting date. All other variables are heldconstant.

2014 2013+1% -1% +1% -(1)%

Financial Assets

Cash and cash equivalents 1 (1) - -Net results - - - -Equity 2 (2) 1 (1)Trade and otherreceivables - - - -


Trade and other payables - - - -

20

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Credit risk

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in a financial loss tothe Company.

Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks andfinancial institutions, as well as credit exposure to wholesale and retail customers, including outstanding receivablesand committed transactions.

The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk offinancial loss from defaults. The utilisation of credit limits by customers is regularly monitored by line management.Customers who subsequently fail to meet their credit terms are required to make purchases on a prepayment basisuntil creditworthiness can be re-established.

All trade debtors are recognised as amounts receivable at balance date. Collectability of trade debtors is reviewed onan ongoing basis. The Board has established procedures to recover outstanding amounts. Debts which are known tobe uncollectible are written off. An allowance for impairment is raised when there is objective evidence that the entitywill not be able to collect all amounts due. This evidence includes past experience, and current and expected changesin economic conditions and debtor credit ratings. No interest is earned on trade debtors.

The Company is not materially exposed to concentrations of credit risk to a single receivable or group receivablesunder financial instruments entered into by the Company.

Based on past experience, debtors that are not past due and not less than three months past due are not consideredimpaired. There are no debtors which are currently not passed due or impaired whose terms have been negotiated.



Past due but not impaired

(days overdue)

Grossamount

$'000

Past dueand

impaired

$'000

< 30

$'000

31-60

$'000

61-90

$'000

> 90

$'000

Withininitialtradeterms

$'000

2014

Trade receivables 123 - - - - - 123

Total 123 - - - - - 123

2013


Total 274 - - - - - 274

21

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The fair value of financial instruments that are not traded in an active market (for example, over the counterderivatives) is determined using valuation techniques. The Company uses a variety of methods and makesassumptions that are based on market conditions existing at each balance date.The carrying value less impairmentprovision of trade receivables and payables is a reasonable approximation of their fair values due to the short-termnature of trade receivables.

Fair value hierarchy

The fair value of financial instruments carried at fair value have been classified using a fair value hierarchy that reflectsthe significance of the inputs used in making the measurements.The levels of the hierarchy are as follows:

Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2 – inputs other than quoted prices included within Level 1 that are observable for the asset or liability,either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).

9 Income Tax Expense

(a) The major components of tax expense (income) comprise:2014

$'000

2013$'000

Current tax (benefit) / expense

Adjustment for current tax of prior periods - 18Deferred tax (14) -Current Tax - (5)

(14) 13

Deferred income tax (revenue) expense included inincome tax expenses comprises:

Decrease/(increase) in deferred tax asset (7) -(Decrease)/increase in deferred tax liabilities (7) -

(14) -

(b) Reconciliation of income tax to primae facia tax payable2014

$'000

2013$'000

Profit from continuing operations 13 30Income Tax at Australian tax rate -30% 4 9

Add:- Non-deductible expenses - 4- Under-provision fro income tax of -prior periods (18) -- Income Tax expense (14) 13

22

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9 Income Tax Expense continued

10 Tax

OpeningBalance

$'000

Charged toIncome

$'000

Chargeddirectly to

Equity

$'000

CarriedForwardlosses

$'000

Prior yearadjustments

$'000

ClosingBalance

$'000

Deferred tax assets

Provisions-employee benefits 10 (10) - - - -Accruals 3 (3) - - - -Carried Forward losses 53 (53) - - - -

Balance at 31 December 2013 66 (66) - - - -Accruals - 1 - - 2 3

Carried Forward Losses - - - (5) 9 4

Balance at 31 December 2014 - 1 - (5) 11 7

OpeningBalance

$'000

Charged toIncome

$'000

Chargeddirectly to

Equity

$'000

Changes inTax Rate

$'000

Prior yearadjustments

$'000

ClosingBalance

$'000

Deferred tax liability

Prepaid Insurance - - - - - -Accrued Income 39 (32) - - - 7

Balance at 31 December 2013 39 (32) - - - 7Prepaid Insurance - - - - - -

Accrued Income 7 - - - (7) -

Balance at 31 December 2014 7 - - - (7) -

(a) Deferred Tax Assets

2014

$'000

2013$'000

The balance comprises temporarydifferences attributable toAccrued Expenses 3 -

Total deferred Assets 3 -

Set-off of deferred tax liabilitiespursuant to set off provisions

Carried forward losses 4 -

Total Deferred tax Assets 7 -

23

Page 257



10 Tax continued

(b) Deferred Tax Liabilities

2014

$'000

2013$'000

Prepaid Difference - -Accrued Income - 7

Total deferred Tax liabilities - 7Net Deferred tax liabilities - 7Deferred tax liabilities to be settledwithin 12 months - 7


The totals of remuneration paid to the key management personnel of Risk Frontiers Flood (Australia) Pty Ltd during theyear as follows which is the aggregate amount of income receives or due and receivable in respect of the financialyear by all Directors of the company directly or indirectly from the company or from any related party:

2014

$'000

2013$'000

Short-term employee benefits - -

- -

Other key management personnel transactions



2014

$

2013$

Remuneration of the auditor of theCompany, The audit office of NSW, for:Audit of Financial statements 6,000 6,000

6,000 6,000

13 Capital and non capital expenditure commitments

There were no material capital and non capital expenditure commitments as at 31 December 2014.(2013:Nil)

14 Contingencies

In the opinion of the Directors, the Company did not have any contingencies at 31 December 2014 (31 December2013:None).

24

Page 258



15 Finance Facilities

There were no standby arrangements with banks to provide funds and support facilities.

16 Related Parties



The ultimate parent entity, which exercises control over the Company, is Macquarie University.


Names of the directors who have held office during the financial year are ,

Peter Dodd

James Piper

John Gorman

Kevin McAneney.

Peter Cheesman

For details of disclosures relating to key management personnel, refer to Note 11: Key Management PersonnelCompensation . In 2013 Delphine McAneney was an employee of Risk Frontiers Flood (Australia) Pty Ltd andreceived total remuneration of $58,000 for the year ended 31 December 2013. John McAneney and DelphineMcAneney are employees of Access Macquarie Limited which paid for their services in 2014 and DelphineMcAneney is paid $26,854 for her services by Access Macquarie Ltd .


Transactions between related parties are on normal commercial terms and conditions no more favourable thanthose available to other parties unless otherwise stated.

The following transactions occurred with related parties:

Purchases Sales

Owed tothe

company

Owed bythe

company

2014

Access Macquarie Limited 618 - - -- - - -

2013

Access Macquarie Limited 679 - - -679 - - -

25

Page 259





2014

$'000

2013$'000

Profit/(Loss) for the year 27 17Non-cash flows in profit:

- depreciation 2 7Changes in assets and liabilities, net ofthe effects of purchase and disposal ofsubsidiaries:

- (increase)/decrease in trade andother receivables 186 (47) - (increase)/decrease in deferred taxbalances (14) 35 - increase/(decrease) in trade andother payables (137) 9 - increase/(decrease) in provisions - (24)

Cash flow from operating activities 64 (3)


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

19 Company Details

The registered office of the company is:

Risk Frontiers Flood (Australia) Pty LtdLevel1,3 Innovation RoadMacquarie University NSW 2109

The principal places of business are:

Room 817,Building E7AMacquarie University NSW 2109

Risk Frontiers Flood (Australia) Pty Ltd is a for-profit private company limited by shares, domiciled in Australia andultimately wholly owned by Macquarie University.

26

Page 260

Page 261

Page 262

Page 263


Page 264

Risk Frontiers Group Pty LimitedABN 75 129 001 485


Page 265



Page

Financial StatementsDirectors' Report 1Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 4Statement of Profit or Loss and Other Comprehensive Income 5Statement of Financial Position 6Statement of Changes in Equity 7Statement of Cash Flows 9Notes to the Financial Statements 10Directors' Declaration 28Independent Audit Report 29

Page 266



The directors present their report, together with the financial statements of the Group, being the Group and itscontrolled entities, for the financial year ended 31 December 2014.


Directors

The names of the directors in office at any time during, or since the end of, the year are:

Peter Dodd

Qualifications PhD Rochester,Msc Rochester,MComm Queensland,BComm NewcastleExperience

Joined Macquarie University as Deputy Vice -Chancellor and ChiefOperating Officer in July 2009. He has over 25 years of seniormanagement in both the private sector and universities. Most recently hewas Chief Financial Officer of North American Energy Partners which is aNew York Stock Exchange listed construction and mining companyoperating in the Oil Sands of North Alberta. Prior to that he was ManagingDirector of Access Macquarie. Peter had over 20 years in InvestmentBanking and was Global Head of Corporate Finance for ABN Amro. Hewas Professor of Finance and later Dean of Australian Graduate School ofManagement at the University of New South Wales and AssociateProfessor of Finance at the graduate School of Business at the University ofChigago.

Area of responsibility Executive Director.

Kevin John McAneney

Qualifications B.SC.(Hons) M.S.,Ph.D.Experience

Reappointed on August 2012 and Kevin's specialty hazards interests are inbushfire, flood, volcanic and seismic risk and decision-making and policyissues surrounding a wide range of natural hazards. He has expertise inProbabilistic Modelling, Quantitative Risk Assessment and Cost Benefitand Real Options analyses. Kevin's earlier background was in physics, soilscience, weather risk and financial risk analysis. He has 95 refereedpublications on various aspects of weather risk, boundary layer physicsand natural catastrophe risks.

Area of resposibility Managing Director.

James Piper

Qualifications BSc Otago, PhD Otago, FOSA, FAIPExperience

Deputy Vice-Chancellor (Research) (DVC(R)) at Macquarie University inSydney from 2003 to 2014. Extensive expertise and experience gained fromover 30 years of research in lasers, optics and photonics, and applicationsin micro fabrication. Distinguished awards including the Pawsey Medal(1982), the Australian Optical Society Medal (1997) and more recently theCarnegie Centenary Professorship from the CarnegieTrust Universities ofScotland (2004).

Area of responsibility Executive Director.

Also Mr Peter Cheesman is also a director (appointed on 14 March 2013) of Risk Frontiers Group Pty Ltd . He holds aa Master of Science Degree from the University of Nottingham, UK. He is the head of research and innovation acrossthe Asia Pacific area at Aon Benfield. There is a large focus on bespoke client solutions covering aspects related tonatural catastrophe analysis particularly in providing direct pricing or underwriting solutions to enable insurers totechnically factor in the loadings for catastrophes.

1

Page 267




No Director has received or become entitled to receive a benefit, other than disclosed in the accounts, because of acontract made by the Company, or a related body corporate with a Director, a firm of which a Director is a member oran entity in which a Director has a substantial financial interest. This statement excludes a benefit included in theaggregate amount of emoluments received or due and receivable by Directors shown in the accounts, or the fixedsalary of a full-time employee of the Company, or a related body corporate, by reason of a contract made by theCompany or a related body corporate with the Director or with a firm of which he/she is a member, or with an entity inwhich he/she has a substantial financial interest.

Company secretary

Ms Gayathri Wijesurya held the position of Company Secretary during and at the end of financial year.


The Group specialises in quantitative flood risk assessment and risk management for residential properties in Australiaand develops and supplies specialised flood risk databases to the insurance industry.

No significant change in the nature of these activities occurred during the year.

Meetings of Directors

Number ofMeetings

Numberattended

Peter Dodd 3 3James Piper 3 3Kevin McAneney 3 3Peter Cheesman 3 3

Operating results

The Group did not trade during the financial year. The Group’s wholly owned subsidiary Risk Frontiers Flood(Australia) Pty Ltd began trading late in 2008.The consolidated profit of the Group amounted to $27,000 (2013 :$17,000).




During the financial year the parent company did not trade and therefore recorded a nil operating result.

The subsidiary company Risk Frontiers Flood (Australia) Pty Ltd negotiated an agreement with the Insurance Councilof Australia (“ICA”) in September 2008 to provide its services and a national flood information database (“NFID”) to theICA and to corporate Members of the ICA. The subsidiary has since been delivering additions to NFID, covering newcatchments, as part of a three year program which ended in March 2012. The subsidiary has also been maintainingNFID as part of a five year program. Pursuant to a 2008 agreement between the subsidiary and Willis ReinsuranceAustralia Limited, Willis continues to provide certain sub-contracted services to the subsidiary company. In 2012, thecompany negotiated a license to members of the ICA for a new patented database called Flood Exclusion Zones(FEZ) to supplement NFID. This brings income in 2014.


There have been no significant changes in the state of affairs of entities in the Group during the year.


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

2

Page 268

Page 269

Page 270



Consolidated Parent

Note

2014

$'000

2013$'000

2014

$'000

2013$'000


Rendering of Services 997 1,139 - -Finance Income - - - -


Employee benefits expense 2 - (65) - -Consultants (721) (784) - -Personnel services expense (217) (213) - -Other expenses 2 (46) (47) - -

Total expenses from continuing operations (984) (1,109) - -

Profit/(loss) before income tax 13 30 - -Income tax expense 9 14 (13) - -

Profit/(loss) from continuing operations 27 17 - -

Other comprehensive income for the year, net of tax - - - -

Total comprehensive income attributable to:

Owners of Risk Frontiers Group Pty Limited 27 17 - -


5

Page 271


Statement of Financial Position31 December 2014

Consolidated Parent

Note

2014

$'000

2013$'000

2014

$'000

2013$'000

ASSETS

Current assetsCash and cash equivalents 3 73 9 - -Trade and other receivables 4 123 309 - -Total current assets

196 318 - -Non-current assets Plant and equipment 5 1 3 - -Deferred tax assets 10 7 - - -Total non-current assets

8 3 - -Total assets

204 321 - -

LIABILITIES

Current liabilitiesTrade and other payables 6 47 184 - -Total current liabilities

47 184 - -Non-current liabilitiesDeferred tax liabilities 10 - 7 - -Total non-current liabilities

- 7 - -Total liabilities

47 191 - -NET ASSETS

157 130 - -

EQUITY

Contributed Equity - - - -Retained earnings 7 157 130 - -TOTAL EQUITY

157 130 - -


6

Page 272



2014 Parent

RetainedEarnings

$'000

ContributedEquity

$'000

Total

$'000

Balance at 1 January 2014 - - -

Total other comprehensive income for the year - - -


2013 Parent

RetainedEarnings

$'000

ContributedEquity

$'000

Total

$'000

Balance at 1 January 2013 - - -

Total other comprehensive income for the year - - -



7

Page 273



2014 Consolidated

RetainedEarnings

$'000

ContributedEquity

$'000

Total

$'000




2013 Consolidated

RetainedEarnings

$'000

ContributedEquity

$'000

Total

$'000





8

Page 274



Consolidated Parent

Note

2014

$'000

2013$'000

2014

$'000

2013$'000


Receipts from customers 1,283 1,206 - -Payments to suppliers and employees (1,233) (1,196) - -Income taxes paid 14 (13) - -Net cash provided by (used in) operating activities 17 64 (3) - -


Net cash used by investing activities- - - -


Net cash used by financing activities- - - -

Net increase / (decrease) in cash and cashequivalents held 64 (3) - -Cash and cash equivalents at beginning of year 9 12 - -Cash and cash equivalents at end of financial year 3 73 9 - -


9

Page 275




(a) Basis of Preparation

This financial report covers Risk Frontiers Flood (Australia) Pty Ltd as an individual entity .Risk Frontiers Flood(Australia) Pty Ltd is a for profit company limited by shares ,incorporated and and domiciled in Australia.

The functional and presentation currency of Risk Frontiers Flood (Australia) Pty Ltd is Australian dollars.Thefinancial statements were authorised for issue by the board members of the company on ------------------.

The financial statements are general purpose financial statements that have been prepared in accordance withAustralian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements ofthe Australian Accounting Standards Board and the Corporations Act 2001.The financial statementsarepresented in Australian dollars. The directors have assessed the entity as a for profit entity for financialreporting purposes. Risk Frontiers Flood (Australia) Pty Ltd is a controlled entity of Risk Frontiers Group Pty Ltdwhich, in turn, is a controlled entity of Access Macquarie Limited. The ultimate parent entity is MacquarieUniversity.

These financial statements and notes comply with International Financial Reporting Standards as issued bytheInternational Accounting Standards Board.The significant accounting policies used in the preparation andpresentation of these financial statements areprovided below and are consistent with prior reporting periodsunless otherwise stated.The financial statements are based on historical costs, except for the measurement atfair value of selectednon-current assets, financial assets and financial liabilities.In the preparation of thefinancial statements, management is required to make judgements, estimates and assumptions about thecarrying values of assets and liabilities that are not readily apparent from other sources.The estimates andassociated assumptions are based on historical experience and various other factors that are believed to bereasonable under the circumstances, the results of which form the basis of making thejudgements. Actualresults may vary from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accountingestimates are recognised in the period in which the estimate is revised if the revision affects only that period, orin the period of the revision and future periods if the revision affects both current and futureperiods.Judgements made by management in the application of the Australian Accounting Standards thathavesignificant effects on the financial statements and estimates, with a significant risk of material adjustmentsinthe next year are disclosed, where applicable, in the relevant notes to the financial statements.


The Group is an entity to which ASIC Class Order 98/100 applies and, accordingly, amounts in thefinancial statements and Directors' Report have been rounded to the nearest thousand dollars.

(b) Principles of Consolidation

The consolidated financial statements include the financial position and performance of controlled entities fromthe date on which control is obtained until the date that control is lost.

Intra group assets, liabilities, equity, income, expenses and cash flows relating to transactions between entitiesof the group have been eliminated in full for the purpose of these consolidated financial statements.

Appropriate adjustments have been made to a controlled entity’s financial statements where the accountingpolicies used by that entities were different from those adopted in the consolidated financial statements.

(c) Historical cost convention

The accounts have been prepared on the basis of historical costs and do not take into account changing moneyvalues or current valuations of non-current assets. Cost is based on the fair value of the consideration given inexchange for asset.

(d) Significant accounting policies

i) Significant accounting judgement

In the preparation of the financial statements, management is required to make judgements, estimates andassumptions about the carrying values of assets and liabilities that are not readily apparent from other sources.The estimates and associated assumptions are based on historical experience and various other factors thatare believed to be reasonable under the circumstances, the results of which form the basis of making thejudgements. Actual results may vary from these estimates.

Key judgements are disclosed as part of accounting policies notes.10

Page 276




(d) Significant accounting policies continued



(e) Plant and Equipment

Plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that isdirectly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carryingamount or recognised as a separate asset, as appropriate, only when it is probable that future economicbenefits associated with the item will flow to the Group and the cost of the item can be measured reliably. Allother repairs and maintenance are charged to the income statement during the financial period in which theyare incurred.

Depreciation

The depreciable amount of all property, plant and equipment, is depreciated on a straight-line method from thedate that management determine that the asset is available for use.



Plant and Equipment 20-33%


When an assets is disposed, the gain or loss is calculated by comparing proceeds received with its carryingamount and is taken to profit or loss.

(f) Financial instruments

In accordance with AASB 133 (AASB 7) “Presentation and Disclosure of Financial Instruments” information isdisclosed in Note 10 in respect of the credit risk and interest rate risk of financial instruments. All suchamounts, except for investments in shares, are carried in the accounts at cost. The carrying amounts equate tothe net fair value of financial assets and liabilities. Class of instruments recorded at cost comprises:

- cash

- receivables

- payables

All financial instruments including revenue, expenses or other cash flows arising from these instruments arerecognised on an accrual accounting basis

(g) Cash and cash equivalents

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

(h) Provisions

Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, forwhich it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

Provisions are measured at the present value of management's best estimate of the outflow required to settlethe obligation at the end of the reporting period. The discount rate used is a pre tax rate that reflects currentmarket assessments of the time value of money and the risks specific to the liability. The increase in theprovision due to the unwinding of the discount is taken to finance costs in the statement of profit or loss andother comprehensive income.

11

Page 277




(i) Income Tax

The tax expense recognised in the statement of profit or loss and other comprehensive income relates tocurrent income tax expense plus deferred tax expense (being the movement in deferred tax assets andliabilities and unused tax losses during the year).

Current tax is the amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for theyear and is measured at the amount expected to be paid to (recovered from) the taxation authorities, using thetax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is provided on temporary differences which are determined by comparing the carrying amounts oftax bases of assets and liabilities to the carrying amounts in the consolidated financial statements.

Deferred tax is not provided for the following:

The initial recognition of an asset or liability in a transaction that is not a business combination and at thetime of the transaction, affects neither accounting profit nor taxable profit (tax loss).

Taxable temporary differences arising on the initial recognition of goodwill.

Temporary differences related to investment in subsidiaries, associates and jointly controlled entities tothe extent that the Group is able to control the timing of the reversal of the temporary differences and it isprobable that they will not reverse in the foreseeable future.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period whenthe asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted orsubstantively enacted by the end of the reporting period.

Deferred tax consequences relating to a non-monetary asset carried at fair value are determined using theassumption that the carrying amount of the asset will be recovered through sale.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses to the extentthat it is probable that taxable profit will be available against which the deductible temporary differences andlosses can be utilised.

Current tax assets and liabilities are offset where there is a legally enforceable right to set off the recognisedamounts and there is an intention either to settle on a net basis or to realise the asset and settle the liabilitysimultaneously.

Deferred tax assets and liabilities are offset where there is a legal right to set off current tax assets againstcurrent tax liabilities and the deferred tax assets and the deferred tax liabilities relate to income taxes levied bythe same taxation authority on either the same taxable entity or different taxable entities which intend either tosettle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilitiessimultaneously in each future period in which significant amounts of deferred tax liabilities or assets areexpected to be settled or recovered.

Current and deferred tax is recognised as income or an expense and included in profit or loss for the periodexcept where the tax arises from a transaction which is recognised in other comprehensive income or equity, inwhich case the tax is recognised in other comprehensive income or equity respectively.

(j) Revenue and other income

Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economicbenefits associated with the transaction will flow to the entity and specific criteria relating to the type of revenueas noted below, has been satisfied.



i) Investment income

Investment income is recognised as it is earned.

(ii) Service Revenue12

Page 278




Service revenue is recognised in the accounting period in which the services are rendered. For fixed priceservice contracts, revenue is recognised under the percentage of completion method, based on the actualservice provided as a proportion of the total services to be provided. Product revenue is recognised at the timeof practical completion of the product to the contracted specifications and acceptance by the customer

(k) Goods and Services Tax (GST)





(l) Foreign currency transactions and balances


The functional currency of each of the Group's entities is measured using the currency of the primary economicenvironment in which that entity operates. The consolidated financial statements are presented in Australiandollars which is the parent entity's functional and presentation currency.


Foreign currency transactions are recorded at the spot rate on the date of the transaction.

At the end of the reporting period:

Foreign currency monetary items are translated using the closing rate;

Non-monetary items that are measured at historical cost are translated using the exchange rate at thedate of the transaction; and

Non-monetary items that are measured at fair value are translated using the rate at the date when fairvalue was determined.

Exchange differences arising on the settlement of monetary items or on translating monetary items at ratesdifferent from those at which they were translated on initial recognition or in prior reporting periods arerecognised through profit or loss, except where they relate to an item of other comprehensive income orwhether they are deferred in equity as qualifying hedges.

(m) Adoption of new and revised accounting standards

During the current year, the Group adopted all of the new and revised Australian Accounting Standards andInterpretations applicable to its operations which became mandatory.

The adoption of these Standards has impacted the recognition, measurement and disclosure of certaintransactions. Certain new accounting standards and interpretations have been published that are notmandatory for the 31 December 2014 reporting period. The Company did not early adopt any new accountingstandards that are not yet effective. The Company has assessed the impact of the new standards andinterpretations on issue but not effective and considers the impact to be insignificant.

(n) Trade and other payables

Trade and other payables are recognised at amortised cost. Trade payables and other accounts payable arerecognised when the economic entity becomes obliged to make future payments resulting from the purchase ofgoods and services.

13

Page 279




(o) Trade and other receivables

Receivables are recognised initially at fair value usually based on transaction costs or face value subsequent tomeasurement at amortised cost using the effective interest method less an allowance for impairment ofreceivables. Trade receivables are carried at amounts due. Bad debts are written off during the year in whichthey are identified and provision for impairment of trade receivables is created based on a review of alloutstanding amounts periodically or at 31 December.

(p) Employee entitlements

Provision is made for the company's liability for employee entitlements arising from services rendered byemployees to the reporting date. The balances of these provisions as at the end of the financial year havebeen categorised for Statement of Financial Position purposes as either current liabilities or non-currentliabilities. Employee entitlements for accrued annual leave and long service leave are accrued annually usingthe nominal basis of measurement being remuneration rates that the Company expects to pay as at eachreporting date and does not discount cash flows to their present value because the difference between the twomethods of calculation is not material. The Company contributes to a defined contribution superannuation fundon behalf of its employees as required by law and contributions are charged as expenses when incurred.Superannuation expense is calculated as a percentage of the employees' salary, per the SuperannuationGurantee Levy. During the year ended 31 December 2014, no employee benefit were paid as the companydoen not employee any staff.

(q) Related party disclosure

Where the term “related parties” is used in the financial report, it refers to:

Entities which, at any time during the year, exercised control or significant influence over the Group or weresubject to control or significant influence by the Group. This includes:

- associated companies;

- directors;

- spouses and other close members of the families of the directors; individuals or close members of thefamilies or such individuals who have significant influence or close members of the families of such individualswho have significant influence or control over the company through holding an ownership interest.

(r) Impairment of assets

At each reporting date, the entity reviews the carrying amount of its tangible and intangible assets to determinewhether there is any indication that those assets have suffered an impairment loss. If any such indicationexists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss(if any)..

(s) Acquisition of assets

Assets acquired are recorded at the cost of acquisition being the purchase consideration determined as at thedate of acquisition plus costs incidental to the acquisition. Group policy is to capitalise Assets with a value inexcess of $5,000.The carrying value of the plant and equipment are measured at depreciated historic cost.There is no substantive difference between the fair value and the carrying value of these assets, and historicalcost is a surrogate for fair value due to the short lived nature of the asset.

14

Page 280



2 Expenses

The result for the year includes the following specific expenses:

Consolidated Parent

2014

$'000

2013$'000

2014

$'000

2013$'000

Employee benefit expenses:

Salaries and wages - 51 - -

Superannuation - 5 - -

Other employment expenses - 9 - -

Total Employee benefit expenses - 65 - -Other expenses

- Audit fees 10 10 - -

- Accounting fees 11 13 - -

- Other expense 1 17 - -

- Depreciation 2 7 - -

- Legal fees 22 - - -

Total expenses 46 47 - -


Consolidated Parent

2014

$'000

2013$'000

2014

$'000

2013$'000

Short-term bank deposits 3 2 - -

Cash and cash equivalents 70 7 - -

Total cash and cash equivalents 73 9 - -

Reconciliation of cash

The above figure is reconciled to cash at the end of the financial year as shown in the statement of cash flows asfollows:

Consolidated Parent

2014

$'000

2013$'000

2014

$'000

2013$'000

Cash and cash equivalents 73 9 - -

Balance as per statement of cash flows 73 9 - -

15

Page 281




Consolidated Parent

2014

$'000

2013$'000

2014

$'000

2013$'000

CURRENTTrade receivables 88 274 - -

88 274 - -Other receivables 11 - - -Accrued income 24 35 - -

Total trade and other receivables 123 309 - -

Related party is Access Macquarie Limited.

No trade receivables are considered impaired.


(a) Movements in carrying amounts of property, plant and equipment

Movement in the carrying amounts for each class of property, plant and equipment between the beginning and theend of the current financial year:

Parent

Plant andEquipment

$'000

Total

$'000


Balance at the beginning of year - -

Additions - -

Depreciation charge - -

Closing net book amount - -

At 31 December 2014

Cost - -

Accumulated depreciation - -

Net book amount - -

Parent

Plant andEquipment

$'000

Total

$'000


Balance at the beginning of year - -Additions - -Depreciation charge - -

Closing net book amount - -

16

Page 282



5 Plant and equipment continued

(a) Movements in carrying amounts of property, plant and equipment continued

Parent

Plant andEquipment

$'000

Total

$'000

At 31 December 2013

Cost - -Accumulated depreciation - -

Net book amount - -

Consolidated

Plant andEquipment

$'000

Total

$'000


Balance at the beginning of the year 3 3

Additions - -

Depreciation charge (2) (2)


At 31 December 2014

Cost 44 44

Accumulated Depreciation (43) (43)

Net book amount 1 1

Consolidated

Plant andEquipment

$'000

Total

$'000


Balance at the beginning of the year 10 10Additions - -Depreciation charge (7) (7)


At 31 December 2013

Cost 44 44Accumulated Depreciation (41) (41)

Net book amount 3 3

17

Page 283




Consolidated Parent

2014

$'000

2013$'000

2014

$'000

2013$'000

CURRENTTrade payables 28 134 - -Accrued expense 10 5 - -GST Payables 9 26 - -Intercompany - 19 - -

Total Trade and other payables 47 184 - -


7 Retained Earnings

Consolidated Parent

2014

$'000

2013$'000

2014

$'000

2013$'000

Retained earnings at the beginning of thefinancial year 130 113 - -Net profit (loss) for the year 27 17 - -

Retained earnings at end of thefinancial year 157 130 - -

(a) Share holding

Risk Frontiers Group Pty Ltd owned 100% of share holding in Risk Frontiers Flood (Australia) Pty Ltd in 2014 and2013.One fully paid share of was issued on incorporation of the Company.

18

Page 284




The Group’s principal financial instruments are outlined below. These financial instruments arise directly from theGroup’s operations or are required to finance the Group’s operations. The Group does not enter into or tradefinancial instruments, including derivative financial instruments, for speculative purposes.

The Group’s main risks arising from financial instruments are outlined below, together with the Group’s objectives,policies and processes for measuring and managing risk. Further quantitative and qualitative disclosures areincluded throughout this financial report.

The Group’s Board has overall responsibility for the establishment and oversight of risk management and reviewsand agrees policies for managing each of these risks. Risk management policies are established to identify andanalyse the risks faced by the Group, to set risk limits and controls and to monitor risks.

The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in theaccounting policies to these financial statements, are as follows:

Consolidated Parent

2014

$'000

2013$'000

2014

$'000

2013$'000

Financial Assets

Cash and cash equivalents 73 9 - -Trade and other receivables 123 298 - -

Total financial assets 196 307 - -


Trade and other payables 39 158 - -

Total financial liabilities 39 158 - -

Liquidity risk

Liquidity risk arises from the Group’s management of working capital and the finance charges and principalrepayments on its debt instruments. It is the risk that the Group will encounter difficulty in meeting its financialobligations as they fall due.

The Group’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when theybecome due. The Group maintains cash and marketable securities to meet its liquidity requirements for up to 30-dayperiods. Funding for long-term liquidity needs is additionally secured by an adequate amount of committed creditfacilities and the ability to sell long-term financial assets.

The Group manages its liquidity needs by carefully monitoring scheduled debt servicing payments for long-termfinancial liabilities as well as cash-out flows due in day-to-day business.

Liquidity needs are monitored in various time bands, on a day-to-day and week-to-week basis, as well as on thebasis of a rolling 30-day projection. Long-term liquidity needs for a 180-day and a 360-day period are identifiedmonthly.

At the reporting date, these reports indicate that the Group expected to have sufficient liquid resources to meet itsobligations under all reasonably expected circumstances and will not need to draw down any of the financingfacilities.

19

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The Group‘s liabilities have contractual maturities which are summarised below:

Consolidated Less than 1 year 1 to 5 years

More than 5

years Total

2014

$'000

2013

$'000

2014

$'000

2013

$'000

2014

$'000

2013

$'000

2014

$'000

2013

$'000

Trade payables 39 158 - - - - 39 158

Total 39 158 - - - - 39 158

Market risk

Most of the Group transactions are carried out in Australian Dollars. Market risk is the risk that the fair value or futurecash flows of a financial instrument will fluctuate because of changes in market prices. The Group is not exposed tomarket risk. The Group has no exposure to foreign currency risk and does not enter into commodity contracts. TheGroup has no investments in listed equity securities and as such is not exposed to price risk.

The effect on profit and equity due to a reasonably possible change in risk variable is outlined in the informationbelow, for interest rate risk. A reasonably possible change in risk variable has been determined after taking intoaccount the economic environment in which the Group operates and the time frame for the assessment (i.e. until theend of the next annual reporting period). The sensitivity analysis is based on risk exposures in existence at thebalance sheet date. The analysis assumes that all other variables remain constant.

Interest rate risk

A reasonably possible change of +/- 1% is used, consistent with current trends in interest rates. The basis will bereviewed annually and amended where there is a structural change in the level of interest rate volatility. The Group’sexposure to interest rate risk is set out below. The following sensitivity analysis is based on the interest rate riskexposures in existence at the end of the reporting period.

Consolidated 2014 2013+(1)% -1% +(1)% -1%

Financial assets

Cash and cash equivalents 1 (1) - - Net results - - - - Equity 2 (2) 1 (1)Trade and other receivables - - - -


Trade and other payables - - - -

Credit risk

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in a financial lossto the Group.

Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks andfinancial institutions, as well as credit exposure to wholesale and retail customers, including outstanding receivablesand committed transactions.

The Group has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk offinancial loss from defaults. The utilisation of credit limits by customers is regularly monitored by line management.Customers who subsequently fail to meet their credit terms are required to make purchases on a prepayment basis

20

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Credit risk continueduntil creditworthiness can be re-established.

Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas.Ongoing credit evaluation is performed on the financial condition of accounts receivable.

The Board receives monthly reports summarising the turnover, trade receivables balance and aging profile of eachof the key customers individually and the Group's other customers analysed by industry sector as well as a list ofcustomers currently transacting on a prepayment basis or who have balances in excess of their credit limits.

The Group is not materially exposed to concentrations of credit risk to a single receivable or group receivables underfinancial instruments entered into by the Group.

Based on past experience, debtors that are not past due and not less than three months past due are not consideredimpaired. There are no debtors which are currently not past due or considered impaired whose terms have beennegotiated. Management considers that all the financial assets that are not impaired for each of the reporting datesunder review are of good credit quality.


(days overdue)

Gross

amount

$'000

Past due

and

impaired

$'000

< 30

$'000

31-60

$'000

61-90

$'000

> 90

$'000

Within

initial

trade

terms

$'000

Consolidated

2014


Total 123 - - - - - 123

2013


Total 274 - - - - - 274


The fair value of financial instruments traded in active markets is based on quoted market prices at the balancesheet date. The fair value of financial instruments that are not traded in an active market is determined usingvaluation techniques. The Group uses a variety of methods and makes assumptions that are based on marketconditions existing at each balance sheet date.The carrying value less impairment provision of trade receivables andpayables is a reasonable approximation of their fair values due to the short-term nature of trade receivables.

Fair value hierarchy

The fair value of financial instruments carried at fair value have been classified using a fair value hierarchy thatreflects the significance of the inputs used in making the measurements.The levels of the hierarchy are as follows:

Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2 – inputs other than quoted prices included within Level 1 that are observable for the asset or liability,either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).

21

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9 Income Tax Expense

(a) The major components of tax expense (income) comprise:

Consolidated Parent

2014

$'000

2013$'000

2014

$'000

2013$'000

Current tax (benefit)/ expense

Adjustment for current tax of prior periods - 18 - -

Deferred Tax (14) - - -

Current Tax - (5) - -

(14) 13 - -

Deferred income tax (revenue) expenseincluded in income tax comprises:

Decrease /(increase )in deferred tax asset (7) - - -(Decrease)/increase in deferred taxliabilities (7) - - -

(14) - - -

(b) Reconciliation of income tax to primae facia tax payable

Consolidated Parent

2014

$'000

2013$'000

2014

$'000

2013$'000

Profit from continuing opeartions 13 30 - -

Income Tax at Australian tax rate -30% 4 9 - -

Add- Non -deductible expenses - 4 - -- Under -provision for income tax in prior period (18) - - -

- Income Tax Expense (14) 13 - -

22

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10 Tax

Recognised deferred tax assets and liabilities

Opening

Balance

$'000

Charged to

Income

$'000

Charged

directly to

Equity

$'000

Carried

Forward

losses

$'000

Prior year

adjustments

$'000

Closing

Balance

$'000

Consolidated

Deferred tax assets

Fair value gain adjustments 10 (10) - - - -Deferred tax assets attributable totax losses 3 (3) - - - -Other deferred tax - UD2 53 (53) - - - -

Balance at 31 December 2013 66 (66) - - - -

Accruals - 1 - - 2 3

Carried Forward losses - - - (5) 9 4

Balance at 31 December 2014- 1 - (5) 11 7

Opening

Balance

$'000

Charged to

Income

$'000

Charged

directly to

Equity

$'000

Changes in

Tax Rate

$'000

Prior year

adjustments

$'000

Closing

Balance

$'000

Consolidated

Deferred tax liability

Other 39 (32) - - - 7

Balance at 31 December 2013 39 (32) - - - 7

Other 7 - - - (7) -

Balance at 31 December 20147 - - - (7) -

23

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10 Tax continued

(i) Deferred Tax Liabilities

Consolidated Parent

2014

$'000

2013$'000

2014

$'000

2013$'000

The balance comprises temporarydifferences attributable to:

Prepaid Insurance - - - -

Accrued Income - 7 - -

Total deferred tax liabilities - 7 - -Set-off of deferred tax liabilitiespursuant to set-off provisions - - - -

Net deferred tax liabilities - 7 - -

Deferred tax liabilities to be settledafter more than 12 months - - - -

Total deferred tax liabilities - 7 - -

(ii) Deferred Tax Assets

Consolidated Parent

2014

$'000

2013$'000

2014

$'000

2013$'000

The balance comprises temporarydifferences attributable to:

Accrued Expenses 3 - - -

Total Deferred tax assets 3 - - -

Set-off of deferred tax assetspursuant to set-off provisions: - - - -

Carried forward losses 4 - - -

Net deferred tax assets 7 - - -

Deferred tax assets to berecovered within 12 months - - - -

(b) Unrecognised deferred tax assets

Deferred tax assets have not been recognised in respect of the following:

Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxableprofit will be available against which the Group can utilise the benefits therein.

24

Page 290




Key management personnel remuneration included within employee expenses for the year is shown below:

2014

$'000

2013$'000

Short-term employee benefits - -

Total compensation paid to key management personnel - -

Other key management personnel transactions



Consolidated Parent

2014

$

2013$

2014

$

2013$

Remuneration of the auditor of the parententity, NSW audit office, for:- Audit of Financial statements 10,545 10,545 4,545 4,545

Total remuneration paid to auditors 10,545 10,545 4,545 4,545

13 Superannuation Plans

There were no contributions to defined benefit superannuation plans as at 31st December 2014.

14 Financial facilities

There were no standby arrangements with banks to provide funds and support facilities.

15 Contingencies

In the opinion of the Directors, the Group did not have any contingencies at 31 December 2014.

(2013: None).

16 Related Parties

The group's main related parties as follows:


The ultimate parent entity, which exercises control over the Group, is Macquarie University. The consolidatedfinancial statements include the financial statements of Risk Frontiers Group Pty Ltd and its subsidiary Risk FrontiersFlood (Australia ) Pty Ltd. Risk Frontiers Flood (Australia) Pty Ltd is incorporated in Australia. Risk Frontiers GroupPty Ltd has 100 per cent of the equity in Risk Frontiers Flood (Australia )Pty Ltd. The cost of this investment was $1.


Names of Directors who have held office during the financial year are,

Peter Dodd

James Piper

Kevin John McAneney

Peter Cheesman

25

Page 291



(b) Key management personnel continued


(c) Other related parties

Access Macquarie Limited is a related party. In 2013 Delphine McAneney was an employee of Risk Frontiers Flood(Australia) Pty Ltd and received total remuneration of 58,000 for the year ended 31st December 2013. JohnMcAneney and Delphine McAneney are employees of Access Macquarie Limited and receive salaries for theirservices to that company in 2014 and Delphine McAneney is paid $26,854 for her services by Access MacquarieLtd.


Purchases Sales Receivables Payables

2014

Access Macquarie Limited 618 - - -

- - - -

2013

Access Macquarie Limited 679 - - -

- - - -



Consolidated Parent

2014

$'000

2013$'000

2014

$'000

2013$'000

Profit/(Loss) for the year 27 17 - -Non-cash flows in profit:

- depreciation 2 7 - -Changes in assets and liabilities:

- (increase)/decrease in trade andother receivables 186 (47) - - - increase/(decrease) in trade andother payables (137) 9 - - - increase/(decrease) in deferred taxbalances (14) 35 - - - increase/(decrease) in provisions - (24) - -

Cash flow from operating activities64 (3) - -


No matters or circumstances have arisen since the end of the financial year which significantly affected or couldsignificantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group infuture financial years.

26

Page 292



19 Company Details

The registered office of the company is:Risk Frontiers Group Pty Limited03 Innovation RoadMacquarie University NSW 2109

The principal places of business are:Room 817,Building E7AMacquarie UniversityNSW2109

Risk Frontiers Group Pty Limited is a for-profit private company limited by shares, domiciled in Australia and 100%owned by Macquarie University.

27

Page 293

Page 294

Page 295

Page 296

U@MQ LimitedABN 27 125 926 169



Page 297



Page

Financial StatementsDirectors' Report 1Auditors Independence Declaration under Section 307C of the Corporations Act 2001 5Statement of Profit or Loss and Other Comprehensive Income 6Statement of Financial Position 7Statement of Changes in Equity 8Statement of Cash Flows 9Notes to the Financial Statements 10Directors' Declaration 35Independent Auditor's Report 36

Page 298



The directors present their report on U@MQ Limited for the financial year ended 31 December 2014.

Directors

The names and particulars of each person who has been a Director during the financial year and to the date of thisreport are:Deidre Anderson (Chair)

Qualifications BA (VU), MA (VU), PD SSci (LTU).Experience Deidre Anderson joined Macquarie University in 2001 as the Chief

Executive of Sport and Recreation. In 2007 she was appointed to theposition of Chief Executive Officer of U@MQ Limited, the newly createdstudent services entity. Since September 2009 Deidre has been in the roleof Executive Director, Campus Experience and was appointed to the role ofDeputy Vice Chancellor, Students and Registrar in August 2011.

Area of responsibility Chairman. Non executive.Period of directorship Commenced 28 June 2010

Denise Osmand

Qualifications BBus Kuring gai CAE, FCPA, JP.Experience Denise Osmand is retired from her former position as the Director, Financial

Services for Macquarie University in 2007.Area of responsibility Director. Non executive.Period of directorship Commenced 20 June 2007

Tim Sprague

Qualifications BSC (Syd), DipEd(Syd), MCom (UNSW), Registered Psychologist.Experience Tim Sprague joined Macquarie University in July 2004 as Director of Human

Resources and has since resigned from this position as at 22 July 2014.Area of responsibility Director. Non executive.Period of directorship Commenced 28 June 2010

Gemma Quinn

Qualifications BA LLB Macq.Experience Gemma Quinn has been the Student member of the University Council

since May 2012.Area of responsibility Director. Non executive.Period of directorship Commenced 22 June 2012

Josh Stinton

Qualifications M. Banking & Fin Reg., B. Int. Bus..Experience Josh Stinton is an Alumni of Macquarie University.Area of responsibility Director. Non executive.Period of directorship Commenced 13 July 2012

Michael Graham Wall

Qualifications BA LLB Macq.Experience Michael Wall is District Registrar (NSW & ACT) of Federal Court of

Australia. He is also an Alumni of Macquarie University.Area of responsibility Director. Non executive.Period of directorship Commenced 27 June 2014

1

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Company Secretary

Gregory Robert Tongue was appointed to the position of Company Secretary on 28 June 2010 and continues in officeat the date of this report.


Objectives of U@MQ Limited

The objectives of U@MQ Limited are to provide facilities for the members of the University community, including staffand students. Without limiting the generality of that objective, the objectives of U@MQ include:

(a) complement and support the academic activities of the University by providing products, services and facilities that:

(i) meet the social, cultural, sporting and recreational needs of the staff and students of the University;

(ii) promote, support and engage the interest and welfare of the University, its staff and students;

(iii) generally develop a sense of community among members of the University community;

(iv) promote the wellbeing of members of the University community; and

(b) make available sporting and recreational facilities to members of the University community, guests and visitors tothe University;

(c) provide food, beverage and retail services for members of the University community, guests and visitors to theUniversity;

(d) provide or support welfare services and such other services considered appropriate by Directors for members ofthe University community;

(e) provide facilities to the Council if needed;

(f) take over the funds, assets and liabilities of former student organisations on campus;

(g) operate a business to achieve these objects, provided that the operation of any new business not alreadyconducted by a former student organisation receives the prior written approval of the Council;

(h) secure the co operation of the University men and women and the University organisations and bodies in furtheringthe interests of the University,

(i) encourage the continuing involvement of graduates in the life of the University;

(j) provide personal and professional development opportunities to students and staff of the University;

(k) encourage the University Community to advance the University's interests; and

(l) any other activity incidental or necessary to achieve the abovementioned objects.

The strategies employed for achieving the objectives are as follows:

1. Develop and implement a sustainable plan for consulting and communicating with all students.

2. Create, engage and support the University community.

3. Organisational excellence.

4. Contribute to the University's reseach objectives.

5. Support PACE through collaborative involvement of student groups and community partners.


There were no significant changes in the nature of the Company's activities during the year.

During the year the principal continuing activities of U@MQ Limited were to provide products, services and facilities tothe members of the University community including staff and students that complement and support the academicactivities of the University. Those services and facilities include sporting and recreational facilities, food, beverage,retail services and childcare.

How the activities assisted in achieving U@MQ Limited's objectives

The activities directly support the objectives and strategies of the U@MQ constitution and strategic plan, and aremonitored and reviewed by the Board and management on an annual basis.

2

Page 300



How U@MQ Limited measures its performance

The performance of U@MQ Limited is measured against the strategic plan, business plan, operational plans andannual budget.

The company's operations are measured in terms of number of transactions per outlet, average outlet transactionsrevenue, sports membership numbers, child care utilisation rates, customer satisfaction rates, % of cost of goods, % ofwages and % of direct expenses against revenue.

Membership

Macquarie University is the sole member of U@MQ Limited.

Contribution of Member on winding up

The member undertakes to contribute to the property of U@MQ Limited if U@MQ Limited is wound up while they are amember, the amount is not to exceed $1.00.

Dividends

U@MQ Limited is a company limited by guarantee. Its constitution does not allow for the payment of any dividends.


The annual grant continues to be paid by Macquarie University. The company operations resulted in a loss for the yearof $43,272 (2013: $530,000 profit). The company is not taxable under Subdivision 50 B of Income Tax Assessment Act1997.

It should be noted that the Macquarie University grant to U@MQ Limited in 2014 was $3,613,000 (2013: $3,615,000).

Significant changes in the state of affairs

There were no significant changes in the Company's state of affairs during the financial year.


There has not been any matter or circumstance, other than that referred to in the financial statements or notes thereto,that has arisen since the end of the financial year, that has significantly affected, or may significantly affect, theoperations of the company, the results of the operation, or the state of affairs of the company in future financial years.


No information is included on the likely developments in the operations of the Company and the expected results ofthose operations in future financial years. No change is foreseen in the scope of Company's operation.


The directors are of the opinion that the Company has complied with all relevant environmental legislation, so far as itconcerns the operations of the entity. U@MQ Limited has adopted a sustainability policy to ensure the wise use ofresources within a framework in which social, environmental, economic and cultural factors are integrated.

Meetings of directors

During the financial year, 6 meetings of directors were held. Attendances by each director during the year were asfollows:

Directors'

Meetings

Number

eligible to

attend

Number

attended

Deidre Anderson (Chair) 6 3Denise Osmand 6 5Tim Sprague 6 6Gemma Quinn 6 6Josh Stinton 6 5Michael Graham Wall 3 2

3

Page 301

Page 302

Page 303



Note

2014

$'000

2013$'000


Sale of goods 2 8,477 7,571Services 2 16,185 15,668Grant 2 3,724 3,669Other income 2 3,323 3,231



Materials and consumables (4,488) (4,081)Employee benefits expense 3 (17,280) (16,017)Depreciation and amortisation expense 4 (931) (873)Occupancy expenses (1,644) (1,749)Cleaning (1,243) (1,204)Repairs and maintenance expenses (1,251) (1,101)Other operating expenses 5 (4,878) (4,531)Finance costs (37) (53)


Surplus for the year (43) 530Other comprehensive income for the year - -

Total comprehensive income for the year is

attributable to: Owner of U@MQ Limited (43) 530


6

Page 304


Statement of Financial PositionAs At 31 December 2014

Note

2014

$'000

2013$'000

ASSETS

Current assets

Cash and cash equivalents 6 8,316 8,673Trade and other receivables 7 1,164 651Inventories 8 487 624Total current assets

9,967 9,948

Non-current assets

Plant and equipment 9 2,026 2,571Intangible assets 10 245 147Total non-current assets

2,271 2,718Total assets

12,238 12,666

LIABILITIES

Current liabilities

Trade and other payables 11 2,052 2,185Borrowings 12 171 213Provisions 13 1,089 955Total current liabilities

3,312 3,353

Non-current liabilities

Borrowings 12 - 171Provisions 13 281 454Total non-current liabilities

281 625Total liabilities

3,593 3,978NET ASSETS

8,645 8,688

EQUITY

Reserves 260 260Accumulated funds 14 8,385 8,428TOTAL EQUITY

8,645 8,688


7

Page 305



2014

Note

Reserves

$'000

AccumulatedFunds

$'000

Total equity

$'000

Balance at 1 January 2014 260 8,428 8,688

Revaluation Surplus - - -

Total comprehensive income for the year - (43) (43)

Balance at 31 December 2014 260 8,385 8,645

2013

Note

Reserves

$'000

AccumulatedFunds

$'000

Total equity

$'000

Balance at 1 January 2013 260 7,898 8,158

Revaluation Surplus - - -

Total comprehensive income for the year - 530 530

Balance at 31 December 2013 260 8,428 8,688


8

Page 306



Note

2014

$'000

2013$'000

Cash flows from operating activities

Receipts from customers (inclusive of goods and services tax) 34,392 32,043Payments to suppliers and employees (inclusive of goods and services tax) (34,262) (31,044)Interest received 295 336Interest paid (23) (40)Net cash inflow from operating activities 21 402 1,295

Cash flows from investing activities

Proceeds from sale of plant and equipment 4 34Payments for plant and equipment (550) (694)Proceeds from sale of plant and equipment - -Net cash (outflow) from investing activities

(546) (660)

Cash flows from financing activities

Proceeds from borrowings - -Finance lease payments (213) (198)Net cash (outflow) from financing activities

(213) (198)

Net increase in cash and cash equivalents (357) 437Cash and cash equivalents at the beginning of the financial year 8,673 8,236Cash and cash equivalents at end of year 6 8,316 8,673


9

Page 307




(a) Basis of preparation

These general purpose financial statements have been prepared in accordance with Australian AccountingStandards, the Corporations Act 2001, Section 41B(1) of the Public Finance & Audit Act 1983, Public Financeand Audit Regulations 2010, other authoritative pronouncements of the Australian Accounting Standards Board,Division 60 of the Australian Charities and Not-for-profits Commission Act 2012, and Division 60 of theAustralian Charities and Not-for-profits Commission Regulation 2013.


The financial statements of U@MQ Limited comply with Australian Accounting Standards some of whichcontain requirements specific to not for profit entities that are inconsistent with International Financial ReportingStandards (IFRS) requirements.


These financial statements have been prepared under the historical cost convention, as modified by therevaluation of available for sale financial assets, financial assets and liabilities (including derivative instruments)at fair value through profit or loss, certain classes of property, plant and equipment and investment property.


(i) Critical accounting judgement






(b) New accounting standards and interpretations


(c) Income Tax Exemption

The Company is exempt from the payment of tax by virtue of section 50 B of the Income Tax Assessment Act1997. Accordingly, no provision for income tax liability or future income tax benefit has been included in theaccounts.


Revenue is recognised and measured at the fair value of the consideration received or receivable to the extentthat it is probable that the economic benefit will flow to the entity and the revenue can be reliably measured.

Macquarie University grant revenue is recognised monthly. Point of sales revenue is recognised upon receipt ofcash. Childcare fees are recognised upon an accruals basis. Rental income is recognised upon invoice or anaccruals basis. Functions revenue is recognised once the function has occurred. Other revenue is recognisedupon invoice or receipt of cash.

Interest revenue is recognised as interest revenue accrues using the effective interest method. This is a method10

Page 308




(d) Revenue recognition (continued)of calculating the amortised cost of a financial asset and allocating the interest income over the relevant periodusing the effective interest rate, which is the rate that exactly discounts estimated future cash receipts throughthe expected life of the financial asset to the net carrying amount of the financial asset.

(e) Government grants

U@MQ Limited accounts for the receipt of non taxable government grants as income rather than as deferredincome. As such, a temporary difference does not arise.

Income is measured at the fair value of the contributions received or receivable. Income arising from thecontribution of an asset to U@MQ Limited shall be recognised when, and only when, all the following conditionshave been satisfied:

- U@MQ Limited obtains controls of the contribution or the right to receive the contribution;

- it is probable that the economic benefits comprising the contribution will flow to U@MQ Limited; and

- the amount of the contribution can be measured reliably.


For statement of cash flows presentation purposes, cash and cash equivalents includes cash on hand, depositsheld at call with financial institutions, other short term, highly liquid investments with original maturities of threemonths or less that are readily convertible to known amounts of cash and which are subject to an insignificantrisk of changes in value.


Due to their short term nature, trade receivables are recognised and subsequently measured at original invoiceamount. The effect of not discounting receivables to amortised cost is immaterial.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectibleare written off. An impairment provision is recognised when there is objective evidence that U@MQ Limitedmay not be able to collect the receivable. Financial difficulties of the debtor and default payments areconsidered objective evidence of impairment. The amount of the impairment loss is the receivable carryingamount compared to the present value of estimated future cash flows, discounted at the effective interest rate.

(h) Inventories

Inventories are valued at the lower of cost and net realisable value. Costs, except for the retail shop, areassigned on weighted average basis, which approximately reflects actual cost. Retail shop costs are assignedon a first in first out basis.

(i) Trade and other payables


Trade and other payables are carried at original invoice cost and due to their short term nature, they are notdiscounted.

(j) Borrowing costs

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying assetare capitalised as part of the cost of that asset.

All other borrowing costs are recognised as an expense in the period in which they are incurred.

(k) Impairment of non-financial assets

As a not for profit entity with no cash generating units, U@MQ Limited is effectively exempted from AASB 136Impairment of Assets and Impairment testing. This is because AASB 136 modifies the recoverable amount testto the higher of fair value less costs to sell and depreciated replacement cost. This means that for an assetalready measured at fair value, impairment can only arise if selling costs are material. Selling costs areregarded as immaterial.

At each reporting date, U@MQ Limited reviews the carrying values of its assets to determine whether there is11

Page 309




(k) Impairment of non-financial assets (continued)any indication that those assets have been impaired. If such an indication exists, the recoverable amount of theasset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the asset'scarrying value. Any excess of the asset's carrying value over its recoverable amount is expensed.

Where it is not possible to estimate the recoverable amount of an individual asset, U@MQ Limited estimatesthe recoverable amount of the cash generating unit to which the asset belongs.

(l) Acquisition of assets

The purchase method of accounting is used to account for all acquisitions of assets (including businesscombinations) regardless of whether equity instruments or other assets are acquired. Cost is measured as thefair value of the assets given, shares issued or liabilities incurred or assumed at the date of exchange pluscosts directly attributable to the acquisition. Where equity instruments are issued in an acquisition, the value ofthe instruments is their published market price as at the date of exchange, unless, in rare circumstances, itcan be demonstrated that the published price at the date of exchange is an unreliable indicator of fair value,and that other evidence and valuation methods provide a more reliable measure of fair value. Transactioncosts arising on the issue of equity instruments are recognised directly in equity.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination aremeasured initially at their fair values at the acquisition date, irrespective of the extent of any minority interest.The excess of the cost of acquisition over the fair value of U@MQ Limited's share of the identifiable net assetsacquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of thesubsidiary acquired, the difference is recognised directly in the income statement, but only after areassessment of the identification and measurement of the net assets acquired.

Where an asset is acquired at no cost or for a nominal amount, the cost is its fair value as at the date ofacquisition. An asset costing less than the capitalisation threshold of $5,000 is not capitalised but expensed.

(m) Fair value measurements

The fair value of assets and liabilities must be measured for recognition and disclosure purposes.

Fair value measurement of non-financial assets is based on the highest and best use of the asset. Thecompany considers market participants use of, or purchase price of the asset, to use it in a manner that wouldbe highest and best use.

The carrying value less impairment provision of trade receivables and payables are assumed to approximatetheir fair values due to their short-term nature. The fair value of financial liabilities for disclosure purposes isestimated by discounting the future contractual cash flows at the current market interest rate that is available tothe company for similar financial instruments.

(n) Plant and Equipment

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

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of theasset and the net amount is restated to the revalued amount of the asset.

Plant and equipment are measured at historical cost basis less depreciation and impairment losses. Thecarrying amount of plant and equipment is reviewed annually to ensure it is not in excess of the recoverableamount from these assets.

The cost of fixed assets constructed within U@MQ Limited includes the cost of materials, direct labour,borrowing costs and an appropriate proportion of fixed and variable overheads. Subsequent costs are includedin the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable thatthe future economic benefits associated with the item will flow to the entitiy and the cost of the item can bemeasured reliably. All other repairs and maintenance are charged to profit and loss during the financial year inwhich they are incurred.

Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluationreserve in shareholder's equity. Decreases that offset previous increases of the same asset are chargedagainst fair value reserves directly in equity; all other decreases are charged to profit and loss. Each year thedifference between depreciation based on the revalued carrying amount of the asset charged to the profit andloss and depreciation based on the asset's original cost is transferred from the revaluation reserve to the

12

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(n) Plant and Equipment (continued)retained earnings.

Depreciation

The depreciable amount of all fixed assets including building and capitalised lease assets, but excludingfreehold land, is depreciated on a straight line basis over their useful lives to U@MQ Limited commencing fromthe time the asset is held ready for use.

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


Plant and Equipment 4-10 yearsFurniture, fittings and equipment 3-10 yearsMachinery and vehicles 6.66 yearsComputer Equipment 3.33 yearsAcademic Dress 5 yearsWorks of Art No depreciation

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amountis greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These areincluded in the statement of comprehensive income. When revalued assets are sold, amounts included in therevaluation reserve to the asset are transferred to retained earnings.

U@MQ engaged a valuer to do valuation of its Property, Plant and Equipments in January 2011.

The details of the valuer are:Phillip L Warren of Global Valuation Services Pty LtdCertified Practising ValuerRegistered Number 232

(o) Intangible Assets

Computer software

Computer software is recorded at cost. Computer software has a finite life and is carried at cost less anyaccumulated amortisation and impairment losses. It has an estimated useful life of between one and threeyears.

(p) Leases

Leases of plant and equipment where the Company, as lessee, has substantially all the risks and rewards ofownership are classified as finance leases (note 15). Finance leases are capitalised at the lease's inception atthe fair value of the leased property or, if lower, the present value of the minimum lease payments. Thecorresponding rental obligations, net of finance charges, are included in other short term and long termpayables. Each lease payment is allocated between the liability and finance cost. The finance cost is chargedto the statement of comprehensive income over the lease period so as to produce a constant periodic rate ofinterest on the remaining balance of the liability for each period.

The plant and equipment acquired under finance leases is depreciated over the asset's useful life or over theshorter of the asset's useful life and the lease term if there is no reasonable certainty that the Company willobtain ownership at the end of the lease term.

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Companyas lessee are classified as operating leases (note 15). Payments made under operating leases (net of anyincentives received from the lessor) are charged to the statement of comprehensive income on a straight linebasis over the period of the lease.

Lease income from operating leases where the Company is a lessor is recognised in income on a straight line

13

Page 311




(p) Leases (continued)basis over the lease term. The respective leased assets are included in the Statement of Financial Positionbased on their nature.

(q) Employee benefits

(i) Wages and salaries, annual leave

Liabilities for wages and salaries, including non monetory benefits and annual leave expected to besettled within 12 months after the end of the period are measured at the amounts expected to be paidwhen the liabilities are settled. Liabilities for non accumulating sick leave are recognised when the leaveis taken and measured at the rates paid or payable.

(ii) Long service leave

The liability for long service leave is recognised in the provision for employee benefits and measured asthe present value of expected future payments to be made in respect of services provided by employeesup to the end of the reporting period. Consideration is given to expected future wage and salary levels,experience of employee departures and periods of service. Expected future payments are discountedusing market yields at the end of the reporting period on national government bonds with terms tomaturity and currency that match, as closely as possible, the estimated future cash outflows.


All employees of the Company are entitled to benefits from the Company's superannuation plan onretirement, disability or death. The defined contribution section receives fixed contributions from theCompany and the Company's legal or constructive obligation is limited to these contributions.

Defined superannuation contributions are recognised as an expense as they become payable. Prepaidcontributions are recognised as an asset to the extent that a cash refund or a reduction in the futurepayments is available.

(iv) Termination benefits

Liabilities for termination benefits are recognised when a detailed plan for the terminations has beendeveloped and a valid expectation has been raised in those employees affected that the terminations willbe carried out. The liabilities for termination benefits are recognised in other creditors unless the amountor timing of the payments is uncertain, in which case they are recognised as a provision.

Liabilities for termination benefits expected to be settled within 12 months are measured at the amountsexpected to be paid when they are settled. Amounts expected to be settled more than 12 months fromthe reporting date are measured as the estimated cash outflows, discounted using market yields at thereporting date on national government bonds with terms to maturity and currency that match as closelyas possible, the estimated future cash outflows.

(r) Provisions

Provisions for legal claims, service warranties and make good obligations are recognised when the Companyhas a present legal or constructive obligation as a result of past events, it is probable that an outflow ofresources will be required to settle the obligation and the amount has been reliably estimated. Provisions arenot recognised for future operating losses.

Provisions are measured at the present value of management's best estimate of the expenditure required tosettle the present obligation at the reporting date. The discount rate used to determine the present valuereflects current market assessments of the time value of money and the risks specific to the liability.

(s) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurredis not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition ofthe asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount ofGST recoverable from, or payable to, the taxation authority is included with other receivables or payables in thestatement of financial position.

14

Page 312




(s) Goods and Services Tax (GST) (continued)


(t) Rounding of amounts


15

Page 313



2 Revenue


2014

$'000

2013$'000

Sale of goods

- Sale of goods 7,740 6,838- Sale of food and beverages 737 733

Total sale of goods 8,477 7,571

Services

- Services 697 737- Facilities Hire 426 362- Equipment Hire 648 455- Child care fees 4,274 4,141- Membership fees 7,758 7,580- Event fees 1,850 1,757- Sport programs fees 532 636

Total services 16,185 15,668

Grant 3,724 3,669

Other income

- Rents 1,996 1,977- Interest 305 334- Commissions 393 348- General 215 195- Sponsorships 126 76- Rental recoveries 11 26- Sydney Institute of Business and Technology fees 277 275

Total other income 3,323 3,231

16

Page 314



3 Employee benefits expense

2014

$'000

2013$'000

Salaries and contractors 15,358 14,309Workers compensation 87 76Superannuation 1,322 1,212Annual leave expense 55 48Long service leave expense (94) (59)Personnel services expenses 236 266Other employee expenses 316 165

Total employee benefits expense 17,280 16,017

4 Depreciation and amortisation expense

2014

$'000

2013$'000

Depreciation

Plant and equipment 432 370Plant and equipment under finance leases 170 171Furniture & Fittings 172 153Motor vehicles 14 22Computer Equipment 49 105Academic Dress 42 38

Total depreciation 879 859

Amortisation

Computer software 52 14

Total amortisation 52 14


17

Page 315



5 Other expenses

2014

$'000

2013$'000

Professional services fees 227 223Printing and stationery 332 341Marketing 414 384Hire and lease 548 479Fees 338 294Travel 126 218Net loss on disposal of assets 69 58Other expenses 2,824 2,534

Total other expenses 4,878 4,531


2014

$'000

2013$'000

Cash at bank and in hand 1,016 1,673

Deposits at call 7,300 7,000

Total Cash and cash equivalents 8,316 8,673

Deposits at call have a term of 90 days or less and bear fixed interest with a weighted average of 3.56% (2013:3.83%)

(a) Reconciliation to cash at the end of the year


2014

$'000

2013$'000


18

Page 316




2014

$'000

2013$'000

Current

Trade receivables 290 173Provision for impairment (a) (5) -

Net trade receivables 285 173Related party receivable 503 176GST receivable 5 -Other receivable 128 78Prepayments 243 224

Total current trade and other receivables 1,164 651

(a) Impaired trade receivables

The ageing of these receivables is as follows:

2014

$'000

2013$'000

Considered impaired

1 to 3 months - -3 to 6 months - -Over 6 months 5 -

5 -

2014

$'000

2013$'000


Up to 3 months - -3 to 6 months 3 13Over 6 months - -

3 13

2014

$'000

2013$'000

Movements in the allowance for impairment of

receivables are as follows:

At 1 January - 2Provision for impairment recognised during the year 5 -Receivables written off during the year as uncollectible - (2)Unused amount reversed - -

At 31 December 5 -

19

Page 317



7 Trade and other receivables (continued)

(b) Fair value and credit risk

Due to the short term nature of these receivables, their carrying amount is assumed to approximate their fair value.

8 Inventories

2014

$'000

2013$'000

at cost 563 649allowance for impairment loss (76) (25)

Total inventories 487 624

20

Page 318

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Page 319

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22

Page 320



10 Intangible Assets

Computersoftware,

other

$'000

Developmentcosts

$'000

Total

$'000


Opening net book amount 147 - 147

Additions 150 - 150

Amortisation (52) - (52)

Closing net book amount 245 - 245

At 31 December 2014

Cost 311 - 311

Accumulated amortisation and impairment (66) - (66)


Computersoftware,

other

$'000

Developmentcosts

$'000

Total

$'000


Opening net book amount - - -Additions 161 - 161Amortisation (14) - (14)


At 31 December 2013

Cost 161 - 161Accumulated amortisation and impairment (14) - (14)


23

Page 321




2014

$'000

2013$'000

Current

Trade payables 409 417GST payable (Net) - 64Amount due to related parties 264 289Sundry accrual and other payables 1,379 1,339PAYG Withholding - 76


12 Borrowings

Note

2014

$'000

2013$'000

Current, secured liabilities

Lease liabilities 15 171 213

Total current borrowings 171 213

Note

2014

$'000

2013$'000

Non-current, secured liabilities

Lease liabilities 15 - 171

Total non-current borrowings - 171

Total borrowings 171 384

24

Page 322



13 Provisions

2014

$'000

2013$'000

Current provision expected to be settled within 12 months

Employee benefits - annual leave 531 501Employee benefits - long service leave 74 70

Subtotal 605 571

Current provisions expected to be settled after more than 12 months

Employee benefits - annual leave 290 265Employee benefits - long service leave 194 119

Subtotal 484 384

Total current provisions 1,089 955

2014

$'000

2013$'000

Non-current provisions

Employee benefits - long service leave 281 454



25

Page 323



14 Reserves and accumulated funds

(a) Reserves

2014

$'000

2013$'000

Asset revaluation reserve 260 260

Total reserves 260 260

Movements:

2014

$'000

2013$'000

Revaluation surplus - property, plan and equipment

Balance 1 January 260 260Revaluation - gross - -

Balance 31 December 260 260

(b) Accumulated funds

2014

$'000

2013$'000

Movements in accumulated funds were as follows:Balance 1 January 8,428 7,898Loss for the year (43) 530

Balance 31 December 8,385 8,428

26

Page 324



15 Commitments

(a) Finance Leases - Company as lessee

U@MQ Limited leases gymnasium equipment with a carrying amount of $226k (2013 $400k) under finance leasesexpiring within one year.

2014

$'000

2013$'000

Commitments in relation to finance leases are payable as follows:Within one year 177 236Later than one year but not later than five years - 177

Minimum lease payments177 413

Future finance charges (6) (29)

Recognised as a liability - see note 13171 384

The present value of finance lease liabilities is as follows:Within one year 171 213Later than one year but not later than five years - 171

Minimum lease payments 171 384

(b) Operating leases - Company as lessee

U@MQ Limited has entered into commercial leases on certain items of plant and equipment. These leases have anaverage life of two years with no renewal option included in the contracts. There are no restrictions placed uponU@MQ Limited by entering into these leases.

2014

$'000

2013$'000

Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:Within one year 12 14Later than one year but not later than five years 5 10

Total non-cancellable operating leases 17 24

(c) Capital commitments

Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows:

2014

$'000

2013$'000

Property, plan and equipment

Payable:Within one year 180 381

Total capital commitments 180 381

27

Page 325



16 Financial risk management

The Company's activities expose it to a variety of financial risks: market risk (including interest rate risk), credit riskand liquidity risk. The Company's overall risk management program focuses on the unpredictability of financialmarkets and seeks to minimise potential adverse effects on the financial performance of the Company. TheCompany uses different methods to measure different types of risk to which it is exposed. These methods includesensitivity analysis in the case of interest rate, foreign exchange and other price risks and aging analysis for creditrisk .

The Company holds the following financial instruments:2014

$'000

2013$'000

Financial assets

Cash and cash equivalents 8,316 8,673Trade and other receivables 916 427

Total Financial assets 9,232 9,100


Trade and other payables 1,936 1,947Borrowings 171 384

Total Financial liabilities 2,107 2,331

(a) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availabilityof funding through an adequate amount of committed credit facilities to meet obligations when due and close outmarket positions. At the reporting date the Company held deposits at call of $7.3M (2013: $7.0M) that are expectedto readily generate cash inflows for managing liquidity risk.

(b) Market risk

(i) Cash flow and fair value interest rate risk

The Company's main interest rate risk arises from long term borrowings. Borrowings issued at variable rates exposethe Company to cash flow interest rate risk. Borrowings issued at fixed rates expose the Company to fair valueinterest rate risk if the borrowings are carried at fair value. U@MQ Limited's policy is not to value its fixed rate, longterm borrowings at fair value.

As at the end of the reporting period, the Company has no variable rate borrowings.

(c) Credit risk

The credit risk on financial assets of the Company which have been recognised on the statement of financial positionis generally the carrying amount, net of provision for loss. Credit risk arises when there is the possibility of theCompany's debtors defaulting on their contractual obligations, resulting in financial loss to the Company. TheCompany does not have any significant exposure to any unrelated customer. Ongoing credit evaluation is performedregularly on the financial condition of U@MQ Limited's debtors.

Maturities of financial liabilities

The tables below analyse the Company's financial liabilities into relevant maturity groupings as follows;


i) all non derivative financial liabilities, and


28

Page 326



16 Financial risk management (continued)

Contractual maturities of financial liabilities

Less than6 months

$'000

6 - 12months

$'000

Between 1and 2years

$'000

Between 2and 5years

$'000

Over 5years

$'000

Totalcontractualcash flows

$'000

CarryingAmount

$'000

2014

Non-derivatives

Trade payables 1,936 - - - - 1,936 1,936

Borrowings 118 59 - - - 177 171

Total non-derivatives 2,054 59 - - - 2,113 2,107

Less than6 months

$'000

6 - 12months

$'000

Between 1and 2years

$'000

Between 2and 5years

$'000

Over 5years

$'000

Totalcontractualcash flows

$'000

CarryingAmount

$'000

2013

Non-derivatives

Trade payables 1,947 - - - - 1,947 1,947

Borrowings 118 118 177 - - 413 384

Total non-derivatives 2,065 118 177 - - 2,360 2,331

29

Page 327




(d) Fair value measurements


U@MQ Limited has adopted the amendment to AASB 7 Financial Instruments: Disclosures which requiresdisclosure of fair value measurements by level of the following fair value measurement hierarchy:

(a) quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)

(b) inputs other than quoted prices included within level 1 that are observable for the asset or liability, eitherdirectly (as prices) or indirectly (derived from prices) (level 2), and

(c) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level3).

The following table presents the company’s assets and liabilities measured and recognised at fair value at 31December 2014.

Level 1

$'000

Level 2

$'000

Level 3

$'000

Total

$'000

As at 31 December 2014

Assets

Available-for-sale financial assetsOther (contingent consideration) - - - -

Total assets - - - -

Level 1

$'000

Level 2

$'000

Level 3

$'000

Total

$'000

As at 31 December 2013

Assets

Available-for-sale financial assetsOther (contingent consideration) - - - -

Total assets - - - -

30

Page 328




(e) Summarised sensitivity analysis

Summarised sensitivity analysis

The following table summarises the sensitivity of the Company's financial assets and financial liabilities to interestrate risk.

Carrying

amount -100bps +70bps

Equity

$'000

Profit

$'000

Equity

$'000

Profit

$'000

Equity

$'000

2014

Financial assets

Cash and cash equivalents 8,316 (83) (83) 58 58Trade and other receivable 916 - - - -

Total Increase/(decrease) in financial assets (83) (83) 58 58


Trade payables 1,936 - - - -Borrowings 171 2 2 (1) (1)

Total Increase/(decrease) in financialliabilities 2 2 (1) (1)

Total Increase/(decrease) (81) (81) 57 57

Carrying

amount -100bps +70bps

Equity

$'000

Profit

$'000

Equity

$'000

Profit

$'000

Equity

$'000

2013

Financial assets

Cash and cash equivalents 8,673 (87) (87) 61 61Trade and other receivable 427 - - - -

Total Increase/(decrease) in financial assets (87) (87) 61 61


Trade payables 1,947 - - - -Borrowings 384 4 4 (3) (3)

Total Increase/(decrease) in financialliabilities 4 4 (3) (3)

Total Increase/(decrease) (83) (83) 58 58

31

Page 329




(a) Directors

The following persons were directors of U@MQ Limited during the financial year:

(i) Chairman - non-executive

Deidre Anderson (Chair)

(ii) Non-executive directors

Denise Osmand

Tim Sprague

Gemma Quinn

Josh Stinton

Michael Graham Wall (appointed 27 June 2014)

(b) Other key management personnel

The following persons also had authority and responsibility for planning, directing and controlling the activities of theCompany, directly or indirectly, during the financial year:

Name Position Employer

Craig Oliver Chief Executive Officer Macquarie UniversityCindy Hoad General Manager - Sport & Recreation U@MQ LimitedNiels Pantenburg General Manager - Campus Services U@MQ LimitedRichard Luxford Head of Operations U@MQ Limited

(c) Key management personnel compensation2014

$'000

2013$'000

Short-term employee benefits 536 717Personnel services 236 230

Total key management personnel compensation 772 947

Short-term employee benefits include salary and superannuation.

Personnel services include payments to Macquarie University for those employees seconded to the Company, andinclude salary, superannuation and oncosts.


2014

$

2013$

Remuneration of the auditor of the Company, NSW Audit Office, for:

Audit of financial statement 45,500 45,150

Total remuneration for audit services 45,500 45,150

32

Page 330



19 Contingencies

Contingent liabilities represent items that are not recognised in the Statement of Financial Position because there issignificant uncertainty at 31 December 2014 as to the necessity for the Company to receive or make payments inrespect of them. The company continues to defend certain legal claims at balance date for damages that are notquantifiable.

20 Related party transactions

(a) Parent entities


(b) Transactions with related parties

There were no transactions between the Company and the Directors or with organisations with which the Directorsheld a substantial financial interest other than minor food and beverages at commercial rates.

The following transactions occurred with following related parties:

P&L transactions Balance Sheet

Revenue

$'000

Expenses

$'000

Receivable

$'000

Payable

$'000

Access Macquarie Ltd 113 - 8 -Macquarie University 6,715 1,452 493 264MGSM Limited 1 1 - -MUH Operations #2 Pty Ltd 4 - - -

Total 6,833 1,453 501 264

21 Reconciliation of Surplus / (Deficit) to net cash inflow from operating activities

2014

$'000

2013$'000

Surplus / (Deficit) for the year (43) 530Depreciation and amortisation 931 873Net loss on sale on non-current assets 62 58

Changes in operating assets and liabilitiesDecrease (increase) in trade debtors (513) 18Decrease (increase) in inventories 137 (117)Decrease (increase) in other operating assets - -(Decrease) increase in trade creditors (89) 15(Decrease) increase in other provisions (39) (82)

Net cash inflow (outflow) from operating activities446 1,295

22 Events occurring after the reporting period

There are no events after the balance sheet date of which the Directors are aware that will have a material effect onthe Company’s operations (2013: $nil).

33

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23 Statement of guarantee

The Company is incorporated in Australia under the Corporations Act 2001 and is limited by guarantee to theamount of $1.00 (2013:$1.00) by the sole member. In the event of winding up the surplus of all assets and liabilitiesmust not be distributed to the Member but must be distributed to an organisation approved by the University Councilwhich has similar objects to U@MQ Limited.

24 Administered Assets

2014

$'000

2013$'000

Cash at bank and on hand 286 464

The company administers, but does not control, certain activities on behalf of University based student and sportingclubs. It is accountable to those University based student and sporting clubs for the transactions relating to thoseadministered activities but does not have the discretion, for example, to deploy the resources for the achievement ofthe company’s own objectives.

25 Company Details

The registered office of the company is:U@MQ Limited1 Balaclava RoadMacquarie UniversityNorth Ryde NSW 2109

U@MQ Limited is a not-for-profit public company limited by guarantee, domiciled in Australia and wholly owned byMacquarie University.

END OF AUDITED FINANCIAL STATEMENT

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Balaclava Road, North Ryde, Sydney, AustraliaT: (02) 9850 7111, F: (02) 9850 7433Macquarie University mq.edu.au

CRICOS Provider 00002J

mq.edu.au

Documents

Annual Report 2014 - Parliament of New South Wales