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Australian Breastfeeding Association
ABN 64 005 081 523
Financial report for the financial year ended 30 June 2016
Australian Breastfeeding Association
Contents
Annual financial report
for the financial year ended 30 June 2016
Page
Directors’ report 1
Auditor’s independence declaration 4
Independent audit report 5
Directors’ declaration 7
Statement of profit or loss and other comprehensive income 8
Statement of financial position 9
Statement of changes in equity 10
Statement of cash flows 11
Notes to the financial statements 12
Australian Breastfeeding Association
Directors’ report
1
Directors’ report
The Directors of Australian Breastfeeding Association submit herewith the annual financial report of the company
for the financial year ended 30 June 2016. The Directors report as follows:
Company Objectives and Strategy The Australian Breastfeeding Association is a voluntary organisation established for charitable purposes, originating
in 1964 as the Nursing Mothers’ Association. The Association is a company limited by guarantee. The replaceable
rules in the Corporations Act do not apply to the Association. ABA is a registered training organisation.
Our Vision
Breastfeeding is recognised as important by all Australians and is culturally normal.
Our Mission
As Australia’s leading authority on breastfeeding, we support, educate and advocate for a breastfeeding inclusive
society.
Key Result Areas:
Breastfeeding support
Organisational viability
Training, education and resources
Advocacy
Public awareness and profile
Governance and organisational development
Principal activities All activities undertaken by the Association are determined by the objectives, priorities and measurable outcomes
identified in the 2013-2016 Strategic Plan and are fitting with the objects of the Association.
Principal activities are determined in accordance with the strategic priorities, identified for each Key Result Area and
include
Group meetings – planned, coordinated and facilitated by trained volunteers
Breastfeeding Helpline – 24 hour mum-to-mum assistance and support for breastfeeding mothers
Community Education - hospital visits, school visits, educational sessions
Breastfeeding Education Classes – evidence-based information for mums and dads to be
Training and Education for Health Professionals, including national Health Professional Seminar Series
Nationally recognised training for ABA volunteers
Breast pump hire
Local events such as feed and change tents
Breastfeeding Friendly Workplace
Australian Breastfeeding Association
Directors’ report
2
Measurement of Performance The Board of Directors and Chief Executive Officer monitor progress toward achieving the Association’s objectives
through reporting to an Operational Plan. This plan links activities and services to strategic priorities and desired
outcomes of each Key Result Area and is reviewed at quarterly Board meetings.
Company Financial Performance During Year The profit of the consolidated entity for the 2016 financial year was $113,138 (2015: loss of $715,507). This result
takes into account the operations of the company (the Association National Head Office and its Branches) and
Mothers Direct Pty Ltd (“the Consolidated Entity” or “the group”). Mothers Direct was closed during the 2014/15
financial year and is expected to be formally wound up in the 2016/17 financial year.
Members of the Board The names of the Directors in office at any time during or since the year end, with particulars of the qualifications,
experience and special responsibilities of each Director, are:
Director Qualifications and experience Special responsibilities
Rachel Fuller IBCLC, Cert IV TAE, Cert IV Breastfeeding
Education (Counselling), Cert IV Breastfeeding
Education (Community), Cert III Advertising
Studies (Media)
President
Susan Day AdvDip Management, IBCLC,
Diploma of Breastfeeding Management,
Cert IV TAE Cert IV Breastfeeding Education
(Counselling), Cert IV Breastfeeding Education
(Community)
Vice President
Deborah Holtham MBA (Tech Mgt), BEng (Elec)
Robyn Hamilton MAppSc (Library&Info Mgt), GradDipLibSc, BA
(Hons) Musicology, Cert IV AWT, Cert IV
Breastfeeding Education (Counselling), CertIV
Breastfeeding Education (Community)
Honorary Secretary from
27 November 2015
Sarah Lowndes (re-appointed 28/5/16)
BEc, MArts (Public Policy and Management),
GAICD
Honorary Treasurer
Alicia O’Donoghue (resigned effective 20/4/16)
BBus, BCmn, MMktg, MBA
Louise Pennisi (elected 27/11/15)
LLB/BA (Italian & Japanese) LLM TEP GAICD,
GIA (Cert)
Nanette Shone (term ended 27/11/ 15)
Cert IV Breastfeeding Education (Counselling),
Cert IV Breastfeeding Education (Community)
Hononary Secretary from
29 November 2014 to 27
November 2015
Leanne Taylor (re-elected 27/11/15)
BA, Dip Ed, Grad Dip Psych, Post-grad Dip
Psych, Cert IV TAE, Cert IV Breastfeeding
Education (Counselling), Cert IV Breastfeeding
Education (Community)
Cate Uhe (elected 27/11/15)
BSc(Hons), Grad Dip Ed, Dip Business
Management, Dip Breastfeeding Management,
Cert IV TAE, Cert IV Breastfeeding Education
(counselling and community)
Scott Williams (re-appointed 28/5/16)
Exec MBA, Masters Advanced Practice Nursing,
BA Paediatric Nursing, GAICD
Australian Breastfeeding Association
Directors’ report
3
Directors’ Meetings
The names of the Directors in office at any time during or since the end of the year and the number of meetings
attended by each Director were:
Directors Eligible to Attend Attended
S Day 7 7
R Fuller 7 7
R Hamilton 7 7
D Holtham 7 6
S Lowndes 7 7
A O’Donoghue (resigned effective 20 April 2016) 6 3
N Shone (term ended 27 November 2015) 2 2
L Pennisi (term commenced 27 November 2015) 5 5
L Taylor 7 5
C Uhe (term commenced 27 November 2015) 5 5
S Williams 7 6
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
Membership
The Company has only 1 class of membership and on wind up each member must contribute $20 amounting to a
total contribution by members of $39,220.
Auditors’ Independence Declaration
A copy of the Auditors’ Independence Declaration as required under section 60-40 of the Australian Charities and
Not-for-profits Commission Act 2012 is set out on page 4.
Signed in accordance with a resolution of the Board of Directors.
Rachel Fuller
President
Sarah Lowndes
Treasurer
Melbourne, 24th
of October 2016
Australian Breastfeeding Association
Directors’ declaration
7
DECLARATION BY DIRECTORS
The directors have determined that the company is not a reporting entity and that these special purpose financial
statements should be prepared in accordance with the accounting policies described in Note 1 to the financial
statements.
The directors of the company declare that:
1. The financial statements, comprising the statement of profit or loss and other comprehensive income,
statement of financial position, statement of cash flows, statement of changes in equity, and accompanying
notes of the consolidated entity, are in accordance with the Australian Charities and Not-for-profits
Commission Act 2012 and:
(a) comply with Accounting Standards as described in Note 1 to the financial statements and the
Australian Charities and Not-for-profits Commission Regulation 2013; and
(b) give a true and fair view of the consolidated entity’s financial position as at 30 June 2016 and of its
performance for the year ended on that date in accordance with the accounting policies described in
Note 1 to the financial statements.
2. In the directors’ opinion, there are reasonable grounds to believe that the company will be able to pay its debts
as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of
the directors by:
Rachel Fuller
President
Sarah Lowndes
Director
Dated the 24th
of October 2016
Melbourne
Australian Breastfeeding Association
Statement of profit or loss and other comprehensive income
8
Statement of profit or loss and other comprehensive income
for the financial year ended 30 June 2016
Note Consolidated
2016
$
2015
$
Revenue from continuing operations 2(a)
3,541,589 3,892,902
Cost of sales (181,264) (57,369)
Employee expenses (1,426,595) (1,385,103)
Depreciation and amortisation expense (72,042) (86,219)
Occupancy expenses (122,137) (127,295)
Other expenses 2(b) (1,639,374) (2,660,168)
Profit/(Loss) before income tax 100,177 (423,252)
Income tax expense 1(f) - -
Profit /(Loss) from continuing operations 100,177 (423,252)
Profit/(Loss) from discontinued operations 2(c) 12,961 (292,255)
Profit/(Loss) for the year 113,138 (715,507)
Other comprehensive income - -
Total comprehensive income/(loss) 113,138 (715,507)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
Australian Breastfeeding Association
Statement of financial position
9
Statement of financial position
as at 30 June 2016
Note Consolidated
30 June
2016
$
30 June
2015
$
Current assets
Cash and cash equivalents 14(a) 1,707,525 2,017,549
Trade and other receivables 4 76,356 83,200
Inventories 5 77,097 98,115
Other 6 28,607 26,843
Total current assets 1,889,585 2,225,707
Non-current assets
Intangible assets 7 71,065 98,774
Plant and equipment 8 65,138 67,068
Total non-current assets 136,203 165,842
Total assets 2,025,788 2,391,549
Current liabilities
Trade and other payables 9 216,964 361,794
Provisions 10 240,971 223,512
Other 11 588,615 886,691
Total current liabilities 1,046,550 1,471,997
Non-current liabilities
Provisions 12 305,740 360,281
Other
Total non-current liabilities
13
57,681 56,592
363,421 416,873
Total liabilities 1,409,971 1,888,870
Net assets 615,817 502,679
Equity
Retained earnings 615,817 502,679
Total equity 615,817 502,679
The above statement of financial position should be read in conjunction with the accompanying notes.
Australian Breastfeeding Association
Statement of changes in equity
10
Statement of changes in equity
for the year ended 30 June 2016
Consolidated
Retained
Earnings
Total Equity
$ $
Balance at 30 June 2014 1,218,186 1,218,186
Total comprehensive loss for the year (715,507) (715,507)
Balance at 30 June 2015 502,679 502,679
Total comprehensive profit for the year 113,138 113,138
Balance at 30 June 2016 615,817 615,817
The above statement of changes in equity should be read in conjunction with the accompanying notes.
Australian Breastfeeding Association
Statement of cash flows
11
Statement of cash flows
for the year ended 30 June 2016 Note Consolidated
2016
$
2015
$
Cash flows from operating activities
Receipts from members and customers 1,719,787 2,659,502
Grant receipts 1,496,225 1,669,604
Interest received 20,338 31,314
Receipts from other sources 26,487 322,930
Payments to suppliers and employees (3,536,686) (4,977,993)
Net cash provided by/(used in) operating activities 14(b) (273,849) (294,643)
Cash flows from investing activities
Payment for intangible assets (6,180) -
Payment for plant and equipment - (14,563)
Proceeds from disposal of plant and equipment (36,223) 645
Net cash used in investing activities (42,403) (13,918)
Cash flows from financing activities
Change in group closures 6,228 8,445
Net cash used in financing activities 6,228 8,445
Net increase/ (decrease) in cash and cash equivalents (310,024) (300,116)
Cash and cash equivalents at the beginning of the financial
year 2,017,549 2,317,665
Cash and cash equivalents at the end of the financial year 14(a) 1,707,525 2,017,549
The above statement of cash flows should be read in conjunction with the accompanying notes.
Australian Breastfeeding Association
Notes to the financial statements
12
Notes to the financial statements for the financial year
ended 30 June 2016
1. Summary of significant accounting policies
Financial reporting framework
The consolidated entity is not a reporting entity because in the opinion of the directors there are unlikely to
exist users of the financial report who are unable to command the preparation of reports tailored so as to satisfy
specifically all of their information needs. Accordingly, this ‘special purpose financial report’ has been
prepared to satisfy the directors’ reporting requirements under the Australian Charities and Not-for-profits
Commission Act 2012.
The Association is a company limited by guarantee, incorporated and domiciled in Australia.
The financial statements were authorised for issue on 24 October 2016, by the directors of the company.
Statement of compliance
The financial statements have been prepared in accordance with the Australian Charities and Not-for-profits
Commission Act 2012 and the requirements of the following Australian Accounting Standards:
AASB 101: Presentation of Financial Statements
AASB 107: Statement of Cash Flows
AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors
AASB 110: Events after the Reporting Period
AASB 1048: Interpretation of Standards
AASB 1054: Australian Additional Disclosures
No other Australian Accounting Standards or Australian Accounting Interpretations have been applied.
Basis of preparation
The financial statements have been prepared on the basis of historical cost. Cost is based on the fair values of
the consideration given in exchange for assets. Unless otherwise indicated, all amounts are presented in
Australian dollars.
In the application of the group’s accounting policies management is required to make judgments, estimates and
assumptions about 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 that are
believed to be reasonable under the circumstance, the results of which form the basis of making the judgments.
Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised if the revision affects only that period, or in the
period of the revision and future periods if the revision affects both current and future periods.
Judgments made by management in the application of the group’s accounting policies that have significant
effects on the financial statements and estimates with a significant risk of material adjustments in the next year
are disclosed, where applicable, in the relevant notes to the financial statements.
Australian Breastfeeding Association
Notes to the financial statements
13
1. Summary of accounting policies (cont’d)
Going concern
For the year ended 30 June 2016, the entity made an operating profit of $113,138 (2015: operating loss of
$715,507) and had negative operating cash flows of $273,849 (2015: negative operating cash flows of
$294,643). The entity has a current asset surplus of $843,035 (2015: surplus of $753,710). The Board of
Directors is of the opinion that due to the following factors:
An overall strong balance sheet position with net assets in 2016 being $615,817
A forecast surplus in 2017
The Association is a going concern and that these financial statements should be prepared on a going concern
basis.
The following significant accounting policies have been adopted in the preparation and presentation of the
financial report:
(a) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, and cash in banks.
(b) Employee benefits
Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and
long service leave when it is probable that settlement will be required and they are capable of being
measured reliably.
Provisions made in respect of employee benefits expected to be settled wholly within 12 months, are
measured at their nominal values using the remuneration rate expected to apply at the time of settlement.
Provisions made in respect of employee benefits which are not expected to be settled wholly within 12
months are measured as the present value of the estimated future cash outflows to be made by the group in
respect of services provided by employees up to reporting date.
(c) Loans and receivables
Trade receivables, loans, and other receivables are recorded at amortised cost less impairment.
(d) Goods and services tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:
i. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as
part of the cost of acquisition of an asset or as part of an item of expense; or
ii. for receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables.
Cash flows are included in the statement of cash flows on a gross basis.
Australian Breastfeeding Association
Notes to the financial statements
14
1. Summary of accounting policies (cont’d)
(e) Impairment of assets
At each reporting date, the consolidated entity reviews the carrying amounts of its assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment
loss (if any).
Recoverable amount is the higher of fair value less costs to sell and value in use.
In respect of not-for-profit entities, where the future economic benefits of an asset are not primarily
dependent on the assets ability to generate net cash inflows and where the consolidated entity would, if
deprived of the asset, replace its remaining future economic benefits, value in use is determined as the
depreciable replacement cost of an asset less, where applicable, accumulated depreciation calculated on
the basis of such cost to reflect the already consumed or expired future economic benefits of the asset. The
current replacement cost of an asset is its cost measured by reference to the lowest cost at which the gross
future economic benefits of that asset could currently be obtained in the normal course of business.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount
of the asset is reduced to its recoverable amount. An impairment loss is recognised in profit or loss
immediately.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the
revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does
not exceed the carrying amount that would have been determined had no impairment loss been recognised
for the asset in prior years. A reversal of an impairment loss is recognised in profit or loss immediately.
(f) Income tax
The Association and its controlled entity are exempt from income tax in accordance with Subdivision 50-
A (ITAA 1997).
(g) Inventories
Inventories are valued at the lower of cost and net realisable value. Costs are assigned to inventory on
hand by the method most appropriate to each particular class of inventory, with the majority being valued
on a first in first out basis. Net realisable value represents the estimated selling price and costs to be
incurred in marketing, selling and distribution.
(h) Leases
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor,
are charged as expenses in the periods in which they are incurred.
(i) Payables
Trade payables and other accounts payable are recognised when the consolidated entity becomes obliged
to make future payments resulting from the purchase of goods and services.
(j) Principles of Consolidation
The consolidated accounts comprise the accounts of the Association and its controlled entity. All inter-
entity balances and transactions have been eliminated.
Separate financial statements for Australian Breastfeeding Association as an individual entity are no
longer presented as a consequence of a change to the Corporations Act 2001, however, limited financial
information for Australian Breastfeeding Association as an individual entity is included in Note 20.
Australian Breastfeeding Association
Notes to the financial statements
15
1. Summary of accounting policies (cont’d)
(k) Plant and equipment
Plant and equipment is brought to account at cost less accumulated depreciation. The carrying amount of
plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable
amount from those assets. The depreciable amount of all fixed assets is depreciated over their useful lives
to the consolidated entity commencing from the time the asset is held ready for use.
The depreciation rates and methods used for each class of depreciable assets are:
Class of Fixed Asset Depreciation Rate and Method
Plant and Equipment 20%–40% Diminishing Value
(l) Intangible assets acquired separately
Intangible assets acquired separately are recorded at cost less accumulated amortisation and impairment.
Amortisation is charged on a straight-line basis over their estimated useful lives. Amortisation shall begin
when the assets are available for use; that is when they are in the condition of being capable of being
operated by management. The estimated useful life and amortisation method is reviewed at the end of
each annual reporting period, with any changes in these accounting estimates being accounted for on a
prospective basis. Amortisation is calculated on a straight-line basis over periods generally ranging from 3
to 5 years.
(m) Revenue recognition
Revenue from the sale of goods is recognised when the company has transferred to the buyer the
significant risks and rewards of ownership of the goods.
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on
the financial asset.
Dividend revenue is recognised when the right to receive a dividend has been established.
Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.
Revenue from members’ subscriptions is recognised on a time proportionate basis that takes into account
the period of the subscription.
Government grants are assistance by the government in the form of transfers of resources to the
consolidated entity in return for past or future compliance with certain conditions relating to its operating
activities. Government grants, when there is a non reciprocal transfer, are recognised as income when the
consolidated entity obtains control or the right to receive a contribution, it is probable that the economic
benefits comprising the contribution will flow to the group and the amount of the grant can be measured
reliably.
(n) Accounting Standards Issued Not Yet Effective
The following new accounting standards, amendments to standards and interpretations have been issued,
but are not mandatory for financial reporting years ended on 30 June 2016. They are expected to impact
the company in the period of initial application. The following is available for early adoption, but has not
been applied in preparing this financial report:
Australian Breastfeeding Association
Notes to the financial statements
16
1. Summary of accounting policies (cont’d)
(n) Accounting Standards Issued Not Yet Effective (cont’d)
Standards likely to have a financial impact
AASB
reference
Title and
Affected
Standard(s):
Nature of Change Application date: Impact on Initial
Application
AASB 9
(issued December
2010)
Financial
Instruments
AASB 9 introduces new requirements for
the classification and measurement of financial assets and liabilities.
These requirements improve and simplify
the approach for classification and measurement of financial assets compared
with the requirements of AASB 139. The
main changes are: a) Financial assets that are debt
instruments will be classified based on:
(i) the objective of the entity’s business
model for managing the financial assets;
and
(ii) the characteristics of the contractual cash flows.
b) Allows an irrevocable election on
initial recognition to present gains and losses on investments in equity
instruments that are not held for trading in
other comprehensive income (instead of in profit or loss). Dividends in respect of
these investments that are a return on
investment can be recognised in profit or loss and there is no impairment or
recycling on disposal of the instrument.
c) Introduces a ‘fair value through other comprehensive income’ measurement
category for particular simple debt
instruments.
d) Financial assets can be designated and
measured at fair value through profit or
loss at initial recognition if doing so eliminates or significantly reduces a
measurement or recognition inconsistency
that would arise from measuring assets or liabilities, or recognising the gains and
losses on them, on different bases.
e) Where the fair value option is used for financial liabilities the change in fair
value is to be accounted for as follows: - the change attributable to changes in
credit risk are presented in Other
Comprehensive Income (‘OCI’) - the remaining change is presented in
profit or loss
If this approach creates or enlarges an
accounting mismatch in the profit or loss,
the effect of the changes in credit risk are also presented in profit or loss.
Otherwise, the following requirements
have generally been carried forward unchanged from AASB 139 into AASB 9:
- classification and measurement of
financial liabilities; and - derecognition requirements for financial
assets and liabilities.
AASB 9 requirements regarding hedge accounting represent a substantial
overhaul of hedge accounting that enable
entities to better reflect their risk management activities in the financial
statements.
Furthermore, AASB 9 introduces a new impairment model based on expected
credit losses. This model makes use of
more forward-looking information and applies to all financial instruments that are
subject to impairment accounting.
Periods beginning on or
after 1 January 2018
Due to the fact that adoption is
only mandatory for the 30 June 2019 year end, the entity has not
yet made a full assessment of the
impact of these amendments.
However, based on the entity’s
preliminary assessment, the Standard is not expected to have
a material impact on the
transactions and balances
recognised in the financial
statements when it is first
adopted for the year ending 30 June 2019.
Australian Breastfeeding Association
Notes to the financial statements
17
1. Summary of accounting policies (cont’d)
(n) Accounting Standards Issued Not Yet Effective (cont’d)
Standards likely to have a financial impact (cont’d)
AASB
referenc
e
Title and
Affected
Standard(s):
Nature of Change Application date: Impact on Initial
Application
AASB 15
Revenue from Contracts with
Customers
AASB 15 replaces AASB 118 Revenue, AASB 111 Construction Contracts and
some revenue-related Interpretations.
AASB15 establishes a new revenue recognition model that
basis for deciding whether revenue is to
be recognised over time or at a point in
time. AASB15 also
more detailed guidance on specific
topics (e.g., multiple element arrangements, variable pricing, rights of
return, warranties and licensing)
roves disclosures about revenue.
In May 2016, the AASB issued ED 260
Income of Not-for-Profit Entities, proposing to replace the income
recognition requirements of AASB 1004
Contributions and provide guidance to assist not-for-profit entities to apply the
principles of AASB 15. The ED is
expected to be released as a new Standard later in 2016.
1 January 2019
Due to the fact that adoption is only mandatory for the 30 June
2020 year end, the entity has not
yet made a full assessment of the impact of these
amendments.
However, based on the entity’s
preliminary assessment, the
Standard is not expected to have
a material impact on the transactions and balances
recognised in the financial
statements when it is first adopted for the year ending 30
June 2020.
AASB 16
Leases AASB 16 replaces AASB 117 Leases
and some lease-related Interpretations.
AASB 16 requires all leases to be
accounted for ‘on-balance sheet’ by
lessees, other than short-term and low
value asset leases. The new standard also provides new guidance on the
application of the definition of lease and
on sale and lease back accounting and requires new and different disclosures
about leases
1 January 2019 The entity is yet to undertake a
detailed assessment of the
impact of AASB 16. However,
based on the entiy’s preliminary
assessment, the likely impact on
the first time adoption of the Standard for the year ending 30
June 2020 includes:
• there will be a significant increase in lease assets and
financial liabilities recognised
on the balance sheet • the reported equity will reduce
as the carrying amount of lease
assets will reduce more quickly than the carrying amount of
lease liabilities
• operating cash outflows will be lower and financing cash
flows will be higher in the
statement of cash flows as
principal repayments on all
lease liabilities will now be
included in financing activities rather than operating activities.
(o) New and amended standards adopted by the group
None of the new standards and amendments to standards that are mandatory for the first time for the
financial year beginning 1 July 2015 materially affected any of the amounts recognised in the current period
or any prior period and are not likely to materially affect future periods.
Australian Breastfeeding Association
Notes to the financial statements
18
Consolidated
2016
$
2015
$
2. Profit / (loss) from operations
(a) Other revenue
Subscriptions 666,643 773,739
Grants 1,741,813 1,655,078
Conference Liquid Gold - 576,502
Workshops and seminars offered outside ABA 233,767 229,692
ABA training, including branch conferences 155,115 136,155
Raffle 103,004 77,406
Endorsement, sponsorship and advertising 57,080 90,665
Donations 107,881 79,048
Breastfeeding Friendly Workplaces 117,904 39,751
Bank interest received/receivable 20,338 31,314
Equipment hire 49,724 42,275
Other 288,320 161,277
3,541,589 3,892,902
(b) Other expenses
Audits, financial governance & consulting fees 56,993 88,129
Statutory fees, trademarks and domain names - 10,962
Bad and doubtful debts expense (711) 2,430
Insurance 12,953 23,120
Sales advertising and marketing 1,514 5,552
Advocacy, public relations and promotion 8,352 16,617
Board expenses 30,562 26,937
Volunteer management teams expenses 5,116 5,140
Office administration and overheads 62,838 108,628
Information and communication technology 39,029 26,924
Registered Training Organisation expenses 20,412 22,367
Training ABA volunteers 429,620 249,553
ABA association services 7,939 4,168
Membership Services 103,237 146,341
Membership Offers & Promotions 48,015 50,251
BFW 26,041 20,044
BIR 25,289 28,495
Raffle expenses 59,724 57,804
Fundraising expenses 14,975 25,468
Workshops and seminars offered outside ABA 183,742 197,560
National Breastfeeding Helpline 429,928 448,437
Other funded project expenses 70,716 164,502
Equipment hire 3,090 -
Onerous lease - 413,768
National Conference - 516,971
1,639,374 2,660,168
Australian Breastfeeding Association
Notes to the financial statements
19
Consolidated
2016 2015
$ $
(c) Loss from discontinued operations
Revenue 17,619 1,106,787
Less cost of goods sold (4,685) (807,550)
Employee benefits 761 (355,212)
Depreciation & Amortisation - (13,847)
Impairment - (51,312)
Occupancy costs - (56,026)
Other expenses (734) (115,095)
(292,255) 12,961
3. Remuneration of auditors
Auditor of the Head Office and Mothers Direct
Audit of the financial report 28,500 32,800
Audit of grant expenditure and raffle income 8,850 8,700
37,350 41,500
Auditor of the Branches
Audit of the financial report 16,000 16,000
Related practice of the auditor
Non-assurance services - FBT assistance - 5,173
4. Current trade and other receivables
Trade receivables 68,055 85,630
Allowance for doubtful debts - (2,430)
68,055 83,200
Other 8,301 -
76,356 83,200
5. Current inventories
Finished goods 77,097 101,515
Valuation provision - (3,400)
77,097 98,115
6. Other current assets
Prepayments 28,607 26,843
7. Intangible assets
Software Database:
At cost 287,432 281,252
Amortisation (216,367) (182,478)
71,065 98,774
Australian Breastfeeding Association
Notes to the financial statements
20
Consolidated
2016 2015
$ $
7. Intangible assets (cont’d)
Website:
At cost - 49,487
Amortisation - (22,133)
Impairment - (27,354)
- -
71,065 98,774
8. Plant and equipment
Plant and equipment:
At cost 491,699 510,993
Accumulated depreciation (426,561) (419,967)
Impairment - (23,958)
65,138 67,068
9. Current trade and other payables
Trade payables 103,611 181,311
Goods and services tax (GST) payable 8,735 28,648
Other 104,618 151,835
216,964 361,794
10. Current provisions
Onerous Lease 57,500 57,500
Employee benefits 183,471 166,012
240,971 223,512
The provision for onerous contracts relates to the future net cash outflows expected to be incurred on the
remaining lease term of the Mothers Direct retail site, which was closed in April 2015. A provision was
recognised as the expected benefits to be derived from the contract are less than the unavoidable cost of
meeting the contract obligations. The Association is in the process of finding a new tenant for the Head
Office premises.
11. Other current liabilities
Deferred Government grants 125,481 371,069
Deferred income, subscriptions 370,455 398,848
Other income received in advance 92,679 116,774
588,615 886,691
12. Non-current provisions
Onerous Lease 297,595 356,267
Employee Provisions 8,145 4,014
305,740 360,281
Australian Breastfeeding Association
Notes to the financial statements
21
(b) Reconciliation of profit/(loss) for the period to net cash flows from operating activities
Profit/ (loss) for the year 113,138 (715,507)
Depreciation & amortisation 72,042 100,066
Impairment - 51,312
Inventories valuation (3,400) (4,252)
Bad and doubtful debts (2,430) (11,483)
Onerous lease - 413,768
Profit on disposal of assets - (1,114)
Changes in net assets and liabilities:
(Increase)/decrease in assets:
Current receivables 9,274 58,764
Current inventories 24,418 287,861
Other current assets (1,764) 432,816
Increase/(decrease) in liabilities:
Current payables (144,830) (459,666)
Current provisions 17,459 (91,592)
Other current liabilities (298,076) (359,630)
Non-current provisions (54,541) 4,014
Other non-current liabilities (5,139) -
Net cash inflow/(outflow) from operating activities (273,849) (294,643)
(c) There are no credit standby arrangements with banks.
(d) There were no non-cash financing or investing activities during the year.
(e) The following amounts of cash and cash equivalents are not immediately available to be utilised as
they are held as security by the bank for rental guarantee and credit card facilities:
Term deposits 59,000 59,000
12. Non-current provisions (cont’d)
The provision for onerous contracts relates to the future net cash outflows expected to be incurred on
the remaining lease term of the Mothers Direct retail site, which was closed in April 2015. A
provision was recognised as the expected benefits to be derived from the contract are less than the
unavoidable cost of meeting the contract obligations. The Association is in the process of finding a
new tenant for the Head Office premises.
Consolidated
2016 2015
$ $
13. Other non-current liabilities
Deferred income, subscriptions 43,008 48,147
Group closures 14,673 8,445
57,681 56,592
14. Notes to the statement of cash flows
(a) Reconciliation of cash
Cash on hand 535 594
Cash in banks 1,706,990 2,016,955
1,707,525 2,017,549
Australian Breastfeeding Association
Notes to the financial statements
22
Consolidated
2016 2015
$ $
15. Commitments for expenditure
Non-cancellable operating lease payments
Future operating lease rentals of premises and photocopier
not provided for in the accounts, and payable:
Not longer than 1 year 80,420 109,575
Longer than 1 year not longer than 5 years 299,820 356,193
Longer than 5 years 204,631 176,941
584,871 642,709
16. Contingent Liabilities
Guarantees in respect of the company’s premises rental
agreement, secured by a term deposit – face value
55,000
55,000
17. Members’ Guarantee
The company is incorporated as a company limited by guarantee and not having share capital.
If the company is wound up, the Constitution states each member is required to contribute a maximum of
$20 towards meeting any outstanding obligations of the company. As at 30 June 2016 there were 1,961
members (2015: 2,522).
18. Subsequent Events
No subsequent events have occurred.
19. Additional company information
Australian Breastfeeding Association is a public company, incorporated and operating in Australia.
Registered office Principal place of business
1818 Malvern Road 1818 Malvern Road
Malvern East VIC 3145 Malvern East VIC 3145
Australian Breastfeeding Association
Notes to the financial statements
23
20. Parent Entity Information
The following details information related to the parent entity, Australian Breastfeeding Association,
at 30 June 2016. The information presented here has been prepared using consistent accounting
policies as presented in Note 1.
2016
$
2015
$
Current assets 1,889,585 2,203,274
Non-current assets 149,304 176,942
Total assets 2,038,889 2,380,216
Current liabilities 1,046,557 1,449,724
Non-current liabilities 363,421 416,873
Total Liabilities 1,409,978 1,866,597
Retained earnings 628,911 513,619
Total equity 628,911 513,619
Profit / (loss) for the year 100,177 (594,809)
Other comprehensive income / (loss) for the year - -
Total comprehensive income / (loss) for the year 100,177 (594,809)
21. Related Party Information
(a) Parent entity
The parent entity within the group is Australian Breastfeeding Association, a company limited by
guarantee and domiciled in Australia.
(b) Subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following
subsidiary in accordance with the accounting policy described in note 1(j):
Name of entity Country of incorporation Class of shares Equity holding
2016 %
2015 %
Mothers Direct Pty Ltd Australia Ordinary 100 100
(c) Contribution to operating result
The profit of the consolidated entity for the 2016 financial year is $113,138 (2015: loss of $715,507). This
result takes into account the operations of the company (the association national head office and its
branches) and Mothers Direct Pty Ltd.
Australian Breastfeeding Association
Notes to the financial statements
24
21. Related Party Information (cont’d)
The contribution of the company (the association national head office and its branches) and its subsidiary
to the consolidated profit or loss for the year is:
Name of entity/business unit 2016
$
2015
$
Australian Breastfeeding Association
National Head Office
(158,974)
(506,677)
Australian Breastfeeding Association
Branches
259,151
83,425
Mothers Direct Pty Ltd 12,961 (292,255)
113,138 (715,507)