Australian Fodder Industry Association Limited · Have an administrative capability to support this expanded operation. ... WHK Western Victoria Audit Partnership John A Findlay Principal

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Australian Fodder Industry Association Limited

ABN 12 131 678 727

Financial Report for the Year Ended 30 June 2013

DIRECTORS’ REPORT

Your directors present this report on the entity for the financial year ended 30 June 2013.

Principal Activities

The principal activity of the entity during the financial year was:

Represent the fodder industry as a peak body in Australia;

Encourage the reinvestment of funds towards research and development in the fodder industry;

Further the accuracy and precision of meaningful performance criteria of fodder;

Facilitate industry networking within all sectors of the food chain; and

Undertake internal review, including staff and strategic plan.

No significant changes in the nature of the entity’s activity occurred during the financial year.

Directors

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

Directors Name Special

Responsibilities

Period as

Director

Qualifications and Experience

O’SULLIVAN, Jarrod Michael

Chairman Appointed 29/07/2009

Bachelor of Geomatic Engineering Family business of hay contracting and production established for 30 years; actively involved for the last 10 years

McCORMACK, Peter Desmond

Director Appointed 29/07/2009

25 years experience in agricultural research, particularly dryland agriculture. 5 years experience in commercialization and commercial marketing within Government

GILLETT, Peter John Bernard


Muresk Diploma of Agriculture (MDA). Farming for 40 Years. Hay Processing and Exporting for 22 Years.

DONNAN, Raymond William

Treasurer Appointed 29/07/2009

35 years involvement in the rural sector, which includes dairy farming, grain grower, 25 years contracting, transporting and marketing of fodder. Chairman AFIA Fodder Care. Board Member of Providing All Living Supports (PALS) Inc (disability services).

MAKIN, Andrew James

Secretary/Public Officer

Appointed 11/08/10

20 years work history involved with all aspect of fodder conservation, particularly silage.

McRAE, Francis James


Bachelor of Rural Science (Hons)-University of New England. Graduate Certificate in Marketing-Charles Sturt University. 29 years with NSW DPI as an Extension Agronomist and Technical Specialist Cereals. 1 year Product Development Manager pastures and forage crops Auswest Seeds. 40 years experience with dryland cropping, lamb and beef production. Director Bathurst and Orange Harness Racing Clubs. Treasurer Grasslands Society of NSW.

COLLINS, Patricia Ann

Vice-Chairman Appointed 10/08/11

10 years in Local Government, 7 years as Mayor of the Clifton Shire, member of the East Downs Regional Organisation of Councils. Currently Deputy Chairman of the Darling Downs Moreton Rabbit Board and a State Government Commissioner for Local Government Boundary Reviews.

FRENCH, Douglas Arthur


State Chairman of the Agricultural Contractors of Tasmania. Chairman of his local Landcare group and Chair of a group of 12 farmers who own and manage a 900


ABN 12 131 678 727

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DIRECTORS’ REPORT

megalitre dam.

SATCHELL, Andrew William


Owns and manages a contracting business offering a full suite of agricultural services. Founding Chair of the South West Prime Lamb Group and the Southern Australia Lamb Producers Co-op.

Meetings of Directors

During the financial year, 4 meetings of directors were held. Attendances by each director were as follows:

Directors Meetings

Eligible to attend Number attended

McCORMACK, Peter Desmond 4 4

GILLETT, Peter John Bernard 4 4

DONNAN, Raymond William 4 3

O’SULLIVAN, Jarrod Michael 4 4

McRAE, Francis James 4 1

MAKIN, Andrew James 4 4

COLLINS, Patricia Ann 4 3

FRENCH, Douglas Arthur 4 4

SATCHELL, Andrew William 4 2

Short Term Objectives of the Company

The company has identified the following short term objectives:

Generate funds that allow AFIA to consolidate its core business and allow it to expand

operations into other important areas.

Develop AFIA’s administrative capability to support expanding operations and meet statutory

requirements.

Develop a suite of communication tools to maximise information flow to targeted

stakeholders.

Build a representation competency within AFIA to increase effective dialogue with key

external stakeholder groups.

Increase AFIA membership and retain existing members.

The company has adopted the following strategies for achievement of these short term objectives:

Set and achieve targets for payment of debtors and creditors, budget variances and active

management cash flow.

Complete and distribute monthly reports by key staff; Executive Officer, Industry

Development Manager and Office / Event Manager.

Provide timely delivery of annual financial statements to the auditor to enable timely delivery

to ASIC and for presentation at the AGM.

Operate according to the constitution and follow the Policy and Procedures manual.

Achieve the targeted cost recovery from advertising in newsletters, achieve targeted

publication and distribution targets of the end of each quarter, publish the newsletter under

the maximum content set, establish a seminar program to attract the targeted minimum

people per year, seek advertising revenue for website, achieve a targeted profit on the

National Fodder Conference, provide timely delivery of hay market reports to Dairy Australia.

Develop the contacts database.

Gain recognition of fodder issues within government Committees and organisations, maintain


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DIRECTORS’ REPORT

active involvement in National Transport reform, maintain a proficiency program for fodder

labs and achieve fully funded ring test program.

Achieve targeted membership renewals including exporter renewals, retain existing level of

sponsors, update Fodder Care, gain Fodder Care recognition in fodder supply chain and with

livestock peak bodies.

Renew and implement the strategic plan.

Long Term Objectives of the Company

The company has identified the following long term objectives:

Expand operations into other important areas that will benefit its members.

Have an administrative capability to support this expanded operation.

Deliver a clear message to targeted stakeholders and industry through a suite of

communication tools.

Have staff with a high degree of competency in communicating with key external

stakeholders.

The company has adopted the following strategies for achievement of these long term objectives:

Complete and distribute financial reports with a set number of working days from end of

month, provide timely delivery of annual financial statements to the auditor to enable timely

delivery to ASIC and for presentation at the AGM and have executive officer send monthly

activity report to board members within a specified period.

Achieve the targeted cost recovery from advertising in newsletters, achieve targeted

publication and distribution targets of the end of each quarter, publish the newsletter under

the maximum content set, establish a seminar program to attract the targeted minimum

people per year, increase website hits by the targeted minimum each year and achieve

targeted profit on conference.

Renew and implement the strategic plan.

Complete and distribute financial reports with a set number of working days from end of

month, provide timely delivery of annual financial statements to the auditor to enable timely

delivery to ASIC and for presentation at the AGM and have executive officer send monthly

activity report to board members within a specified period.

Performance Measurement

The company uses the following key performance indicators to measure performance:

Creditor and Debtor payments

Cash Flow reporting

Annual Budget

Communications sent out on schedule, in particular the newsletter

Monthly reports from Key Staff: Executive Officer, Industry Development Manager, Office/

Events Manager

Membership renewal targets


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Membership Details

The company is incorporated as a company limited by guarantee that requires the members of the

company to contribute $10 per member towards the company liabilities on the winding up of the company.

Membership Class Number of Members Individual Members

Contributions on Winding Up

of the Company

Total Members

Contribution on Winding

Up of the Company

Ordinary 340 $10 $3,400

Auditor’s Independence Declaration

A copy of the auditor’s independence declaration as required under section 370C of the Corporations Act

2001 is set out at page 5.

Signed in accordance with a resolution of the Board of Directors.

Directors: …………………………………………………… …………………………………………………

McCORMACK, Peter Desmond O’SULLIVAN, Jarrod Michael

Dated this: 18th

day of July 2013


ABN 12 131 678 727

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AUDITOR’S INDEPENDENCE DECLARATION

UNDER S 307C OF THE CORPORATIONS ACT 2001

TO THE DIRECTORS OF AUSTRALIAN FODDER INDUSTRY ASSOCIATION LIMITED

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2013 there

have been:

i. no contraventions of the auditor independence requirements as set out in the Corporations

Act 2001 in relation to the audit; and

ii. no contraventions of any applicable code of professional conduct in relation to the audit.

WHK Western Victoria Audit Partnership

John A Findlay

Principal – Audit & Assurance

Dated this: 18th day of July 2013


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STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2013

Note 2013 2012

$ $

Revenue 2 479,086 599,897

Other income 2 75,079 87,224

Conferences (118,547) (140,412)

Depreciation (2,598) (2,256)

Legal, audit and consultancy (56,722) (13,165)

Newsletters and calendars (46,346) (37,125)

Projects (27,127) (10,859)

Tours & seminars (24,720) (89,696)

Other expenses (367,154) (375,980)

Profit / (Loss) before income tax (89,049) 17,628

Income tax expense - -

Total comprehensive income attributable to members of the entity (89,049) 17,628

The accompanying notes form part of these financial statements.


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STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2013

Note 2013 2012

$ $

ASSETS

CURRENT ASSETS

Cash and cash equivalents 3 94,388 184,725

Trade and other receivables 4 48,018 49,159

Other assets 5 26,186 31,134

TOTAL CURRENT ASSETS 168,592 265,018

NON-CURRENT ASSETS

Property, plant and equipment 6 9,267 9,247

TOTAL NON-CURRENT ASSETS 9,267 9,247

TOTAL ASSETS 177,859 274,265

CURRENT LIABILITIES

Other payables 7 27,601 25,714

Provisions 8 7,239 -

Other liabilities 9 126,500 142,983

TOTAL CURRENT LIABILITIES 161,340 168,697

NON-CURRENT LIABILITIES - -

TOTAL NON-CURRENT LIABILITIES - -

TOTAL LIABILITIES 161,340 168,697

NET ASSETS 16,519 105,568

EQUITY

Retained Earnings/( Accumulated Losses) 15(b) (5,374) 83,675

Reserves 15 21,893 21,893

TOTAL EQUITY 16,519 105,568



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STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2013

Retained

Earnings

Capital

Reserve Total

$ $ $

Balance at 1 July 2011 66,047 21,893 87,940

Profit attributable to the entity 17,628 - 17,628

Balance at 30 June 2012 83,675 21,893 105,568

Profit attributable to the entity (89,049) - (89,049)

Balance at 30 June 2013 (5,374) 21,893 16,519



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STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2013

Note 2013 2012

$ $

CASH FLOW FROM OPERATING ACTIVITIES

Receipts from customers 538,823 720,168

Payments to suppliers and employees (626,542) (710,023)

Net cash generated from operating activities 14(b) (87,719) 10,145

CASH FLOW FROM INVESTING ACTIVITIES

Payment for property, plant and equipment (2,618) (3,458)

Net cash used in investing activities (2,618) (3,458)

CASH FLOW FROM FINANCING ACTIVITIES - -

Net cash used in financing activities - -

Net increase in cash held (90,337) 6,887

Cash at beginning of the financial year 184,725 178,038

Cash at the end of the financial year 3 94,388 184,725



ABN 12 131 678 727

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

The financial report is for the Australian Fodder Industry Association Ltd as an individual entity,

incorporated and domiciled in Australia. The Australian Fodder Industry Association Ltd is a company

limited by guarantee.

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The directors have prepared the financial statements on the basis that the company is a non-reporting

entity because there are no users who are dependent on or benefit from its general purpose financial

statements. The financial statements are therefore special purpose financial statements that have been

prepared in order to meet the requirements of the Corporations Act 2001. The company is a not-for-profit

entity for financial reporting purposes under Australian Accounting Standards.

The financial statements have been prepared in accordance with the mandatory Australian Accounting

Standards applicable to entities reporting under the Corporations Act 2001 and the significant accounting

policies disclosed below, which the directors have determined are appropriate to meet the needs of

members. Such accounting policies are consistently applied unless stated otherwise.

The financial report has been prepared on an accruals basis and is based on historical costs unless

otherwise stated in the notes. The accounting policies that have been adopted in the preparation of the

financial statements are as follows:

Accounting Policies

a. Revenue

Revenue from the sale of goods is recognised upon the delivery of goods to customers.

Grant revenue is recognised in the income statement when the entity obtains control of the grant and

it is probable that the economic benefits gained from the grant will flow to the company and the

amount of the grant can be measured reliably.

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

contribution, the recognition of the grant as revenue will be deferred until those conditions are

satisfied.

When grant revenue is received whereby the company incurs an obligation to deliver economic value

directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is

recognised in the balance sheet as a liability until the service has been delivered to the contributor,

otherwise the grant is recognised as income on receipt.

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

assets is the rate inherent in the instrument.

Revenue from the rendering of a service is recognised upon the delivery of the service to the

customers.

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

b. Property, Plant and Equipment

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

applicable, accumulated depreciation and impairment losses.

Plant and Equipment

Plant and equipment are measured on the cost basis less depreciation and impairment losses.

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in

excess of the recoverable amount from these assets. The recoverable amount is assessed on the

basis of the expected net cash flows that will be received from the assets employment and

subsequent disposal. The expected net cash flows have been discounted to their present values in

determining recoverable amounts.


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Plant and equipment that have been contributed at no cost, or for nominal cost are valued and

recognised at the fair value of the asset at the date it is acquired.

Depreciation

The depreciable amount of all fixed assets including buildings and capitalised lease assets, but

excluding freehold land, is depreciated on a straight line basis over the asset’s useful life to the entity

commencing from the time the asset is held ready for use.

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

Class of Fixed Asset Depreciation Rate

Fixtures, furniture and fittings 10%

Computer equipment 25%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance

sheet date.

Asset classes carrying amount is written down immediately to its recoverable amount if the asset’s

carrying amount is greater than its estimated recoverable amount.

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

These gains or losses are included in the income statement. When revalued assets are sold, amounts

included in the revaluation reserve relating to that asset are transferred to retained earnings.

c. Leases

Lease payments for operating leases, where substantially all the risks and benefits remain with the

lessor, are charged as expenses on a straight-line basis over the lease term.

d. Financial Instruments

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the company becomes a party to the

contractual provisions to the instrument. For financial assets, this is equivalent to the date that the

company commits itself to either purchase or sell the asset (ie trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transactions costs except where the

instrument is classified ‘at fair value through profit or loss in which case transaction costs are

expensed to profit or loss immediately.

Classification and subsequent measurement

Finance instruments are subsequently measured at fair value, amortised cost using the effective

interest rate method or cost. Fair value represents the amount for which an asset could be exchanged

or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an

active market are used to determine fair value. In other circumstances, valuation techniques are

adopted.

(i) Financial assets at fair value through profit or loss

Financial assets are classified at ‘fair value through profit or loss’ when they are held for

trading for the purpose of short-term profit taking, or where they are derivatives not held for

hedging purposes, or when they are designated as such to avoid an accounting mismatch or

to enable performance evaluation where a group of financial assets is managed by key

management personnel on a fair value basis in accordance with a documented risk

management or investment strategy. Such assets are subsequently measured at fair value

with changes in carrying value being included in profit or loss.

(ii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments

that are not quoted in an active market and are subsequently measured at amortised cost.

(iii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and

fixed or determinable payments, and it is the entity’s intention to hold these investments to


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maturity. They are subsequently measured at amortised cost.

(iv) Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either not

capable of being classified into other categories of financial assets due to their nature, or they

are designated as such by management. They comprise investments in the equity of other

entities where there is neither a fixed maturity nor fixed or determinable payments.

(v) Financial liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured

at amortised cost.

Impairment

At each reporting period, the entity assesses whether there is objective evidence that a financial

instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged

decline in the value of the instrument is considered to determine whether an impairment has arisen.

Impairment losses are recognised in profit and loss.

Derecognition

Financial assets are derecognised where the contractual rights to receipt of cash flows expire or the

asset is transferred to another party whereby the entity no longer has any significant continuing

involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised

where the related obligations are discharged, cancelled or expired. The difference between the

carrying value of the financial liability, which is extinguished or transferred to another party and the fair

value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is

recognised in profit or loss.

e. Impairment of Assets

At each reporting period, the entity reviews the carrying values of its tangible and intangible assets to

determine whether there is any indication that those assets have been impaired. If such an indication

exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell

and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value

over its recoverable amount is expensed to profit and loss.

Where the future economic benefits of the asset are not primarily dependent upon the asset’s ability to

generate net cash inflows and when the entity would, if deprived of the asset, replace its remaining

future economic benefits, value in use is determined as the depreciated replacement cost of an asset.

Where it is not possible to estimate the recoverable amount of an assets class, the entity estimates

the recoverable amount of the cash-generating unit to which the class of assets belong.

Where an impairment loss on a revalued asset is identified, this is debited against the revaluation

surplus for that same class of asset.

f. Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at-call with banks, other short-term

highly liquid investments with original maturities of three months or less, and bank overdrafts.

g. Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount

of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the

GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense.

Receivables and payables in the Balance Sheet are shown inclusive of GST.

Cash flows are presented in the statement of cash flows on a gross basis, except for the GST

component of investing and financing activities, which are disclosed as operating cash flows.

h. Income Tax

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

50-1 of the Income Tax Assessment Act 1997. The exemption is applicable for the period 1 July 2008

to 30 June 2013.


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i. Trade and Other Payables

Trade and other payables represent the liability outstanding at the end of the reporting period for

goods and services received by the company during the reporting period which remain unpaid. The

balance is recognised as a current liability with the amount normally being paid within 30 days of

recognition of the liability.

j. Comparative Figures

Where required by Accounting Standards comparative figures have been adjusted to conform with

changes in presentation for the current financial year.

k. Critical Accounting Estimates and Judgments

The directors evaluate estimates and judgments incorporated into the financial report based on

historical knowledge and best available current information. Estimates assume a reasonable

expectation of future events and are based on current trends and economic data, obtained both

externally and within the company.

l. Key Estimates

Impairment

The company assesses impairment at the end of each reporting period by evaluation of conditions

and events specific to the company that may be indicative of impairment triggers.

m. Economic Dependence

Australian Fodder Industry Association Ltd is dependent on the continued members support,

membership and sponsorship for the majority of its revenue used to operate the business. At the date

of this report the Board of Directors has no reason to believe that they will not continue to support

Australian Fodder Industry Association Ltd.


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NOTE 2: REVENUE AND OTHER INCOME

2013 2012

$ $

Revenue

— Sales of goods 377 114

— Membership subscriptions 148,910 140,974

— Sponsorship 118,455 115,575

— Conferences 159,667 197,343

— Tours & seminars 20,723 120,805

— Newsletters & calendars 30,954 25,086

479,086 599,897

Other revenue 75,079 87,224

Total Revenue 554,165 687,121

NOTE 3: CASH AND CASH EQUIVALENTS

2013 2012

$ $

CURRENT

Cash at bank 92,988 183,325

Other cash and cash equivalents 1,400 1,400

94,388 184,725

NOTE 4: TRADE AND OTHER RECEIVABLES

2013 2012

$ $

CURRENT

Trade receivables 48,018 49,159

48,018 49,159

NOTE 5: OTHER ASSETS

2013 2012

$ $

CURRENT

Prepayments 26,186 31,134

26,186 31,134


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NOTE 6: PROPERTY, PLANT AND EQUIPMENT

2013 2012

$ $

PLANT AND EQUIPMENT

Furniture, fixtures and fittings

At cost 6,240 6,240

Less accumulated depreciation (2,307) (1,683)

3,933 4,557

Computer & Office equipment

At cost 10,655 8,037

Less accumulated depreciation (5,321) (3,347)

5,334 4,690

Total property, plant and equipment 9,267 9,247

Movements in carrying amounts

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

beginning and the end of the current financial year:

Furniture,

Fixtures &

Fittings

Computer &

Office

Equipment

Total

$ $ $

2012

Balance at the beginning of the year 5,181 2,864 8,045

Additions at cost - 3,458 3,458

Depreciation expense (624) (1,632) (2,256)

Carrying amount at end of year 4,557 4,690 9,247

2013

Balance at the beginning of the year 4,557 4,690 9,247

Additions at cost - 2,618 2,618

Depreciation expense (624) (1,974) (2,598)

Carrying amount at end of year 3,933 5,334 9,267

NOTE 7: OTHER PAYABLES

2013 2012

$ $

CURRENT

Other payables – GST 16,407 20,722

Other payables 11,194 4,992

27,601 25,714


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NOTE 8: PROVISIONS

2013 2012

$ $

CURRENT

Provision for Annual Leave 7,239 -

TOTAL PROVISIONS 7,239 -

NOTE 9: OTHER LIABILITIES

2013 2012

$ $

CURRENT

Deferred income 126,500 142,983

TOTAL OTHER LIABILITIES 126,500 142,983

NOTE 10: CAPITAL AND LEASING COMMITMENTS

2013 2012

$ $

a. Finance Lease Commitments - -

b. Operating Lease Commitments

Non-cancellable operating leases contracted for but not

capitalised in the financial statements

Payable — minimum lease payments

— not later than 12 months 23,496 23,496

— later than 12 months but not later than 5 years 17,622 41,118

— greater than 5 years - -

41,118 64,614

The property lease commitments are non-cancellable operating leases contracted for but not

capitalised in the financial statements with a 3 year term. Lease expires 17/03/2015.

NOTE 11: CONTINGENT LIABILITIES AND ASSETS

2013 2012

$ $

Estimates of the potential financial effect of contingent liabilities that may

become payable: - -

NOTE 12: EVENTS AFTER THE BALANCE DATE

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

may significantly affect the operations of the company, the results of those operations or the state of affairs

of the company in future financial years.


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NOTE 13: RELATED PARTY TRANSACTIONS

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

than those available to other persons unless otherwise stated.

NOTE 14: CASH FLOW INFORMATION

Note 2013 2012

$ $

a. Reconciliation of Cash

Cash at bank 92,988 183,325

Other cash 1,400 1,400

4 94,388 184,725

b. Reconciliation of Cash flow from Operations with Profit

after Income Tax

Profit / (Loss) after income tax (89,049) 17,628

Non cash flows

Depreciation 2,598 2,256

Changes in assets and liabilities

(Increase)/decrease in trade and other receivables 1,141 16,039

Increase/(decrease) in trade and other payables 1,887 4,256

Increase/(decrease) in provision for annual leave 7,239 -

Increase/(decrease) in deferred income (16,483) (51,704)

(Increase)/decrease in prepayments 4,948 21,670

(87,719) 10,145

NOTE 15: RESERVES

a. Capital Reserve

The capital reserve records the assets transferred in from Australian Fodder Industry Association

Inc.

b. Retained Earnings

2013 2012

$ $

Balance at the beginning of the financial year 83,675 66,047

Profit / (Loss) attributable to the entity (89,049) 17,628

Balance at the end of the financial year (5,374) 83,675

NOTE 16: ENTITY DETAILS

The registered office of the entity and principal

place of business is:

Australian Fodder Industry Association Ltd

Suite 2, Level 4, 620 St Kilda Road

Melbourne VIC 3004


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DIRECTORS’ DECLARATION

The directors have determined that the company is not a reporting entity and that this special purpose

financial report should be prepared in accordance with the accounting policies described in Note 1 to the

financial statements.

The directors of the entity declare that:

1. The financial statements and notes, as set out on pages 1 to 18, are in accordance with the

Corporations Act 2001: and

a. comply with Australian Accounting Standards; and

b.

give a true and fair view of the financial position as at 30 June 2013 and of the performance

for the year ended on that date in accordance with the accounting policies described in Note

1 of 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.

Directors: ……………………………………………. ………………………………………………

McCORMACK, Peter Desmond O’SULLIVAN, Jarrod Michael

Dated this: 18th

day of July 2013


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INDEPENDENT AUDIT REPORT TO THE MEMBERS OF

AUSTRALIAN FODDER INDUSTRY ASSOCIATION LTD

We have audited the accompanying financial report of the Australian Fodder Industry Association

Ltd (the company), which comprises the statement of financial position as at 30 June 2013, the

statement of 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.

The Responsibility of the Directors for the Financial Report

The directors of the company are responsible for the preparation and fair presentation of the

financial report and have determined that the accounting policies as described in Note 1 to the

financial report are appropriate to meet the requirements of the Corporations Act 2001 and are

appropriate to meet the needs of the members. The directors’ responsibility also include such

internal control as the directors determine is necessary to enable the preparation of a financial

report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted

our audit in accordance with Australian Auditing Standards. Those standards require that we

comply with relevant ethical requirements relating to audit engagements and plan and perform the

audit to obtain reasonable assurance whether the financial report is free from material

misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and

disclosures in the financial report. The procedures selected depend on the auditor’s judgment,

including the assessment of the risks of material misstatement of the financial report, whether due

to fraud or error. In making those risk assessments, the auditor considers internal control relevant

to the entity’s preparation and fair presentation of the financial report 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 report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis

for our audit opinion.

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations

Act 2001. We confirm that the independence declaration required by the Corporations Act 2001,

which has been given to the directors of the Australian Fodder Industry Association Ltd, would be in

the same terms if provided to the directors as at the date of this auditor’s report.


ABN 12 131 678 727

Page 20 of 20

Auditor’s Qualification

As is common for organisations of this type, it is not practicable for Australian Fodder Industry Association

Ltd to maintain an effective system of internal control over conference project and seminar income until

their initial entry in the accounting records. Accordingly, our audit in relation to revenue was limited to

amounts recorded.

Auditor’s Opinion

In our opinion, subject to the effects of such adjustment, if any, as might have been determined to be

necessary had the limitations discussed in the qualification paragraph not existed, the financial report of

the Australian Fodder Industry Association Ltd is in accordance with the Corporations Act 2001, including:

a. giving a true and fair view of the company’s financial position as at 30 June 2013 and of its

performance for the year then ended on that date, and

b. complying with Australian Accounting Standards to the extent described in Note 1 and the

Corporations Regulations 2001.

Basis of Accounting

Without modifying our opinion, we draw attention to Note 1 to the financial report, which describes the

basis of accounting. The financial report has been prepared for the purpose of fulfilling the directors’

financial reporting responsibilities under the Corporations Act 2001. As a result, the financial report may

not be suitable for another purpose.

WHK Western Victoria Audit Partnership

John A Findlay

Principal – Audit & Assurance

Dated: 18 July 2013

Documents

Australian Fodder Industry Association Limited · Have an administrative capability to support this expanded operation. ... WHK Western Victoria Audit Partnership John A Findlay Principal