GENERAL PURPOSE FINANCIAL REPORT FOR THE YEAR ENDED …

GENERAL PURPOSE FINANCIAL REPORT

FOR THE YEAR ENDED 30 JUNE 2020

ACN 001 157 688

ABN 93 001 157 688

Attended Held Attended Held

R. Young 8 9 1 2

I. Bowen 6 9

J. Bilboe 3 9

S. Dawson 9 9

P. Donaldson 8 9 1 2

G. Parrish 9 9 2 2

S. Minutillo 8 9 2 2

C. Burrows 9 9 2 2

P. McClure 6 9

General Meetings Audit & Risk Committee

GREENACRES DISABILITY SERVICES

DIRECTORS' REPORT

Your directors present their report on Greenacres Disability Services (A Company Limited by Guarantee) (hereafter referred to as "the Company") for

the financial year ended 30 June 2020.

DIRECTORS IN OFFICE:

The following persons were directors and officers of the Company at any time during or since the end of the year. Unless otherwise stated, the Director

was in office for the whole of the financial year and up to the date of this report.

Greg Parrish – Chairperson (2020) and Company Secretary

Member of the Audit and Risk Committee 2020; Member of the Property and Investment Committee 2020; Chairperson of the Audit and Risk

Committee 2019; Appointed to Greenacres Board May 2013.

Chief Operations Manager for the Catholic Diocese of Wollongong; Graduate Member of the Australian Institute of Company Directors.

Stephen Dawson – Deputy Chairperson (2020)

Chairperson of the Property and Investment Committee 2020; Member of the NDIS Safeguards Committee 2020. Appointed to Greenacres Board May

2008.

Principal, Dawson Lawyers and Wollongong Conveyancing Services; Director Illawarra Diggers, Aged and Community Care Limited.

Richard Young (Director)

Member of the Property and Investment Committee 2020; Ex Officio of the Audit and Risk Committee 2019; Acting Chairperson 2019. Appointed to

Greenacres Board in August 1992. Life Member

Retired Property Consultant, Fellow of the Australian Property Institute (Retired); Chairman of Wollongong Ex Services Club.

Trish Donaldson (Director)

Chair from November 2019 to July 2020. Retired Manager, Community Services. Appointed to Greenacres Board in October 2009.

Retired Manager, Community Housing and Disability Support Services.

Isla Bowen (Director)

Member of the NDIS Safeguards Committee 2020; Appointed to Greenacres Board April 1993. Life Member.

Vice President of the University of Wollongong Social Club.

Chris Burrows (Director)

Member of the Audit and Risk Committee 2020; Member of the Governance Committee 2020. Member of the Audit and Risk Committee 2019.

Appointed to Greenacres Board as an Alternate Director June 2016. Appointed as a Director February 2018.

Manager, People and Culture CEnet; Member of the Australian Institute of Company Directors; Member of the Australian Computer Society; Member

of the Australian Human Resources Institute.

Sonia Minutillo (Director)

Chairperson of the Audit and Risk Committee 2020; Member of the Audit and Risk Committee 2019. Appointed to Greenacres Board June 2016. Director, Investigation and Reporting – Information and Privacy Commission NSW

Patricia McClure (Director)

Chairperson Governance Committee 2020; Appointed to Greenacres Board as a Director October 2019. Appointed as an Alternate Director November 2018. Former Chair Carers NSW, Former Director Interchange Illawarra.Director Rural and Regional Planning & Development, Transport for NSW; Director RDA Illawarra.

John Bilboe (Alternate Director)

Past Director 1975 – 1986; President of Greenacres 1986 – 1990; Reappointed to Greenacres Board in 2003; Appointed to Greenacres Board as an

Alternate Director November 2018 and retired in 2019. Life Member.

DIRECTORS' MEETINGS

Nine General meetings of Directors & six sub-committee meetings were held during the year. Attendance by Directors was as follows:

2

DIRECTORS' REPORT

Attended Held Attended Held Attended Held

R. Young 2 2

I. Bowen

J. Bilboe

S. Dawson 2 2

T. Donaldson 2 2

G. Parrish 2 2

S. Minutillo

C. Burrows 2 2

T. McClure 2 2

SIGNIFICANT CHANGE IN STATE OF AFFAIRS

BUSINESS OBJECTIVE, VISION AND PURPOSE

Our Vision

We Imagine: Every person with a disability creating their own positive future.

Our Purpose

We Will: Support people with disability to transform their ideas and goals into experiences and achievements.

We Believe

We Believe In: Fairness - Integrity - Respect – Empathy

PRINCIPAL ACTIVITIES

Australian Disability Enterprises (ADEs) providing meaningful work in a supported employment environment;

Vocational and life skills training for school students through Kickstart for Life;

Employment supports (SLES) for school leavers through Kickstart Careers;

Capacity building and social supports for supported employees through Enterprise Social;

Provision of retirement programs.

MEMBERSHIP

PERFORMANCE MEASURES

STRATEGIES

As per the 2020/21 Strategic Plan the Company has set the following strategic goals:

OUR BUSINESS

To be a sustainable, quality focused, and values driven organisation, which is responsive to the needs and goals of people with

disability.

OUR ENVIRONMENT

OUR PEOPLE

OUR CUSTOMERS

To deliver outstanding services that meet our customers' needs and do this in an innovative, flexible and responsive way.

Community Life and Leisure programs including core and capacity building supports, and short term accommodation through CLL;

The experienced and caring team of the Company are passionate about supporting people with disability to live a life of inclusion, friendship and fun.

To have a values driven workforce that is aligned to our vision, agree to our purpose and who are responsive to the changes that are necessary to

transition to the NDIS.

In the opinion of the Directors, there were no significant changes in the state of affairs of the Company that occurred during the financial year under

review not otherwise disclosed in the financial statements.

Governance Committee

The overarching Organisational Business Objective is to be an efficient, effective and adaptive organisation which is responsive to the needs and goals

of people with disabilities.

During the year the Risk and Audit sub-committee had two meetings which are included in the above.

The principal activity of the Company continues to be the provision of services to people with disabilities. The Company's main activities and

achievements during the financial year were as follows:

The Company is incorporated under the Corporations Act 2001 and is a Company Limited by Guarantee. If the Company is wound up, the constitution

states that each member is required to contribute a maximum of $20 each towards meeting any outstanding obligations of the Company. At 30 June

2020 the number of members was 15, however as the membership year is from January to December membership numbers as at today are 58. The

total amount that members of the Company are liable to contribute if the Company is wound up is $1,160.


The Company made a profit of $1,437,414 compared to the loss of $(475,485) as at 30 June 2019. The current year has seen the continued additional

costs required to operate within the NDIS environment, coupled with a challenging trading environment for our Disability Enterprises.

Property & Investment Com. NDIS Safeguards Committee

3

INNOVATION AND GROWTH

AFTER BALANCE DATE EVENTS

DIVIDENDS

PROCEEDINGS ON BEHALF OF THE COMPANY

INDEMNIFYING OFFICERS OR AUDITORS

During the financial year the Company has agreed to pay insurance premiums as follows:

AUDITOR'S INDEPENDENCE DECLARATION

Director

Wollongong, NSW

14 October 2020

On 11 March 2020, the World Health Organisation (“WHO”) declared the Coronavirus disease 2019 ("COVID-19") a pandemic. The pandemic has

adversely affected the global economy, including an increase in unemployment, decrease in consumer demand, interruptions in supply chains, and

tight liquidity and credit conditions. Consequently, governments around the world have announced monetary and fiscal stimulus packages to minimise

the adverse economic impact. However, the COVID-19 situation is still evolving, and its full economic impact remains uncertain.

The Company implemented Government Guidelines across the business to protect staff and reduce risk of infection. Staffing levels were reviewed and

staff redeployed to areas of highest demand and encouraged staff to take leave. The Company worked with customers and suppliers to understand

their changed requirements and made the necessary changes to meet them. The Company also applied successfully for JobKeeper and additional

grants to provide financial support.

Although the COVID-19 situation has created economic uncertainty, the directors believe the Company will be able to continue as a going concern.

Being limited by guarantee, the Company does not pay dividends.

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

The Company has paid premiums to insure each of the current directors and certain senior executives against liabilities for cost and expenses incurred

by them in defending legal proceedings arising from their conduct while acting in their capacity as officers of the Company, other than where the liability

arises out of conduct involving a lack of good faith. The directors have not included details of the liabilities covered or the amount of the premium paid

in respect of the directors' and officers' liability and legal expenses insurance contracts, as such disclosure is prohibited under the terms of the

contract.

To consolidate and position the Company as an experienced provider of disability services under the NDIS and develop niche markets (including new

services) to meet emerging demand.

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

No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the Company is a

party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings.


DIRECTORS' REPORT

The lead auditor's independence declaration for the year ended 30 June 2020 has been received and can be found on page 5 of the directors' report.

After balance date, the Company entered into a contract to sell the property located at Fisher Street, Oak Flats and to purchase a property located in

Green Street, Warrawong.

A return to pre-Covid-19 service provision has been planned taking into consideration good social distancing and hygiene protocols. As an example,

services such as transport provision are still being limited to protect both staff and particpants. The Company's Covid-19 response plan is reviewed

weekly by management to ensure all are kept safe.

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Director

Wollongong, NSW

14 October 2020

AUDITOR'S INDEPENDENCE DECLARATION

TO THE DIRECTORS OF GREENACRES DISABILITY SERVICES

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

I declare that, to the best of my knowledge and beliefs, during the year ended 30 June 2020 there have been:

(i) no contraventions of the auditor independence requirements as set out in Division 60 of the Australian Charities and Not-for-profits Commission Act 2012, in

relation to the audit; and

Ben Fock

Registered Company Auditor Wollongong, NSW

15 October 2020

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2020 2019

Note $ $

Revenue 2 20,576,072 17,153,985

Other revenues 2 998,224 765,976

Total Revenue 21,574,296 17,919,961

Cost of goods sold in supported employment facilities (861,307) (618,173)

Depreciation 3 (755,135) (597,988)

Employee benefits expense 3 (15,988,985) (14,734,900)

Fundraising expenses 18 (37,526) (91,895)

Motor vehicle expenses (400,788) (483,547)

Other expenses 3 (2,072,201) (1,748,242)

Rent expenses (18,313) (120,702)

Finance costs (12,321) -

Total Expenses (20,146,576) (18,395,447)

Profit/(loss) before Income Tax 1,427,720 (475,486)

Income tax expenses - -

Profit/(loss) after Income Tax Attributable to Members 1,427,720 (475,486)

Other Comprehensive Income

Items that will not be classified subsequently to Profit/(loss)

Net gain on revaluation of non-current assets - -

Items that may be classified subsequently to Profit/(loss) - -

Other comprehensive income for the year - -

Total Comprehensive Income Attributable To Members 1,427,720 (475,486)

The accompanying notes form part of these financial statements

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME


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2020 2019

Assets Note $ $

Current Assets

Cash and cash equivalent 4 8,443,839 6,758,966

Trade & other Receivables 5 2,370,091 827,362

Inventory 6 247,474 76,255

Other assets 7 132,291 139,083

Total Current Assets 11,193,695 7,801,665

Non Current Assets

Property, plant and equipment 8 17,043,189 17,335,237

Right of use assets 164,196 -

Total Non Current Assets 17,207,385 17,335,237

Total Assets 28,401,080 25,136,902

Liabilities

Current Liabilities

Trade and other payables 10 2,824,260 1,042,481

Provisions 11 1,851,763 1,926,634

Income in advance 12 360,781 360,781

Lease Liability 13 108,966 -

Total Current Liabilities 5,145,770 3,329,897

Non Current Liabilities

Provisions 11 195,387 232,910

Lease Liability 13 58,106 -

Total Non Current Liabilities 253,493 232,910

Total Liabilities 5,399,263 3,562,806

Net Assets 23,001,817 21,574,096

Equity

Asset revaluation reserve 5,859,706 5,859,706

Retained earnings 17,142,111 15,714,389

Total Equity 23,001,817 21,574,096



STATEMENT OF FINANCIAL POSITION

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Note Retained Revaluation Total

$ $ $

Balance at 1 July 2018 16,189,877 5,859,706 22,049,583

Comprehensive Income

Profit/(loss) attributed to the entity (475,486) - (475,486)

Other comprehensive income for the year - - -

Net gain (loss) on revaluation of non-current assets - - -

Balance at 30 June 2019 15,714,391 5,859,706 21,574,097

Balance at 1 July 2019 15,714,391 5,859,706 21,574,097

Comprehensive Income

Profit/(loss) attributed to the entity 1,427,720 - 1,427,720

Other comprehensive income for the year - - -

Net gain (loss) on revaluation of non-current assets - - -

Balance at 30 June 2020 17,142,111 5,859,706 23,001,817

Revaluation Surplus



STATEMENT OF CHANGES IN EQUITY

The revaluation surplus records the revaluations of non-current assets. This surplus relates to the revaluation of land and buildings.

8


2020 2019

Note $ $

CASH FLOW FROM OPERATING ACTIVITIES

Receipts from customers & government departments 19,340,133 17,030,656

Payments to suppliers & employees (17,880,396) (17,644,950)

Fund raising receipts 341,558 447,393

Interest received 74,200 115,362

Other sources 282,468 174,764

Finance costs (12,321) -

Net cash provided by/(used in) operating activities 15b 2,145,642 123,223

CASH FLOW FROM INVESTING ACTIVITIES

Payment for property, plant & equipment 8 (335,991) (658,350)

Proceeds from sale of property, plant & equipment - 37,000

Net cash provided by/(used in) investing activities (335,991) (621,350)

CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from borrowing - -

Payment of borrowing (124,777) -

Net cash provided by/(used in) financing activities (124,777) -

Net increase/(decrease) in cash held 1,684,874 (498,126)

Cash at the beginning of the financial year 6,758,965 7,257,091

Cash at the end of the financial year 4 8,443,839 6,758,965



STATEMENT OF CASH FLOWS

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Basis of Preparation:

Accounting Policies

a. Income Tax

c. Revenue

In the current year

Operating Grants, Donations, Bequests and Fees for Service

- identifies each performance obligation relating to the amount received;

- recognises a contract liability for its obligations under the agreement ; and

- recognises revenue as it satisfies its performance obligations.

Where the contract is not enforceable or does not have sufficiently specific performance obligations, the Company:

Capital Grant

The Company recognises income in profit or loss when or as it satisfies its obligations under terms of the grant.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

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 cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are

disclosed as operating cash flows.

- recognises income immediately in profit or loss as the difference between the initial carrying amount of the asset and the related amount.

If a contract liability is recognised as a related amount above, the Company recognises income in profit or loss when or as it satisfies its obligations

under the contract.

When the Company receives a capital grant, it recognises a liability for the excess of the initial carrying amount of the financial asset received over any

related amounts (being contributions by owners, lease liability, financial instruments, provisions, revenue or contract liability arising from a contract with

a customer) recognised under other Australian Accounting Standards.

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

reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are

presented below and have been consistently applied unless stated otherwise.

The financial report has been prepared on an accruals basis and is based on historic costs modified by the revaluation of selected non-current assets

for which the fair value basis of accounting has been applied. All amounts are stated in Australian Dollars and have been rounded to the nearest dollar.

The financial statements were authorised for issue on 14 October 2020 by the Directors of the Company.

The Company has applied AASB 15: Revenue from Contracts with Customers (AASB 15) and AASB 1058: Income of Not-for-Profit Entities (AASB

1058) using the cumulative effective method of initially applying AASB 15 and AASB 1058 as an adjustment to the opening balance of equity at 1 July

2019. Therefore, the comparative information has not been restated and continues to be presented under AASB 118: Revenue and AASB 1004:

Contributions. The details of accounting policies under AASB 118 and AASB 1004 are disclosed separately since they are different from those under

AASB 15 and AASB 1058.

When the Company receives operating grant revenue, donations or bequests and fees for service, it assesses whether the contract is enforceable and

has sufficiently specific performance obligations in accordance with AASB 15. When both these conditions are satisfied, the Company:

- recognises the asset received in accordance with the recognition requirements of other applicable accounting standards (for example, AASB 9.

AASB 16, AASB 116 and AASB 138);

- recognises related amounts (being contributions by owners, lease liability, financial instruments, provisions, revenue or contract liability arising from a

contract with a customer);

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Greenacres Disability Services applies Australian Accounting Standards – Reduced Disclosure Requirements as set out in AASB 1053: Application of

Tiers of Australian Accounting Standards and AASB 2010-2.

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

Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB) and the Australian Charities and Not-for-profits Commission

Act 2012 (ACNC). The Company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards.

The Company has been endorsed by the Australian Taxation Office as a Public Benevolent Institution. No provision for income tax has been raised as

the Company is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.


b. Good and Services Tax

The financial report is for Greenacres Disability Services as an individual Company, incorporated and domiciled in Australia.

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Interest Income

Interest income is recognised using the effective interest method.

In the comparative period

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

d. Cash and Cash Equivalent

e. Trade and Other Receivables

f. Inventories

g. Property Plant and Equipment

Property

All land and buildings held at 30 June 2020 were valued by external valuers as at 30 June 2017.

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 Statement of Financial Position as a liability until the service has been

delivered to the contributor, otherwise the grant is recognised as income on receipt.

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

of three months or less.

Freehold land and buildings are shown at their fair value based on periodic but at least every 5 years, valuations by external independent valuers, less

subsequent depreciation for buildings.


Interest income is recognised when it is earned.

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

impairment losses.

Grant revenue is recognised in the profit and loss when the Company 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.

Fundraising and donation revenue is recognised in the year of receipt or when associated with an event in period the event occurs.

Decreases that offset previous increases of the same classes of assets are charged against fair value reserves directly in equity, all other decreases

are charged to the statement of comprehensive income. Each year the difference between depreciation based on the revalued carrying amount of the

asset charged to the statement of comprehensive income and depreciation based on the asset’s original cost is transferred from the revaluation

reserve to retained earnings.

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

the revalued amount of the asset.

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

date it is acquired.

At 30 June 2020 the directors reviewed the key assumptions made by the valuers at 30 June 2017. They have concluded that these assumptions

remain materially unchanged and are satisfied that the carrying value does not exceed the recoverable amount of land and buildings at 30 June 2020.

Inventories are measured at the lower of cost and net realisable value.


Revenue from the sales of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyers and can

be reliably measured. Risk and rewards are considered passed to the buyers at the time of delivery of the goods to the customer.

Trade receivables generally have 30 day terms and are recognised and carried at original invoice amount, less an allowance for any uncollectible

amounts. Collectability of trade receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible are written off when identified.

An allowance for impairment is raised when there is objective evidence that collection of the full amount is no longer probable.

Fees for services are recognised when the delivery of the service on which they are based has been completely delivered.

Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation reserve in equity.

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Plant and Equipment

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

Depreciation

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

Class of Fixed Assets

Buildings 2.5%

Plant and Equipment 10-33%

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

h. Impairment of Assets

i. Leases

The Company as lessee

- fixed lease payments less any lease incentives;

- variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;

- the amount expected to be payable by the lessee under residual value guarantees;

- lease payments under extension options if lessee is reasonably certain to exercise the options; and

- payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

At inception of a contract, the Company assesses if the contract contains or is a lease. If there is a lease present, a right-of-use asset and a

corresponding lease liability are recognised by the Company where the Company is a lessee. However, all contracts that are classified as short-term

leases (lease with remaining lease term of 12 months or less) and leases of low value assets are recognised as an operating expense on a straight-line

basis over the term of the lease.

Initially, the lease liability is measured at the present value of the lease payments still to be paid at commencement date. The lease payments are

discounted at the interest rate implicit in the lease. If this rate cannot be readily determined, the Company uses the incremental borrowing rate.

Lease payments included in the measurement of the lease liability are as follows:

The right-of-use assets comprise the initial measurement of the corresponding lease liability as mentioned above, any lease payments made at or

before the commencement date as well as any initial direct costs. The subsequent measurement of the right-of-use assets is at cost less accumulated

depreciation and impairment losses.

Right-of-use assets are depreciated over the lease term or useful life of the underlying asset whichever is the shortest. Where a lease transfers

ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company anticipates to exercise a purchase option, the specific

asset is depreciated over the useful life of the underlying asset.

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

loss. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.

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.

Where it is not possible to estimate the recoverable amount of an asset's class, the Company estimates the recoverable amount of the cash-

generating unit to which the class of assets belong unless the asset is carried at a revalued amount in accordance with another standard (eg, in

accordance with revaluation model in AASB116).

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

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

impairment. In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written

At the end of each reporting period, the Company reviews the carrying values of its tangible and intangible assets to determine whether there is any

indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair

value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable

amount is expensed to the profit or 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

Company 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.


Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.


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Concessionary Leases

The Company as Lessor

Rental income received from operating leases is recognised on a straight-line basis over the term of the specific lease.

Rental income due under finance leases are recognised as receivables at the amount of the Company's net investment in the leases.

k. Comparative Figures

l. Economic Dependence

m. Financial Instruments

Initial recognition and measurement

Initial direct costs incurred in entering into an operating lease (for example legal costs, cost to setup) are included in the carrying amount of the leased

asset and recognised as an expense on a straight-line basis over the lease term.

When a contract is determined to include lease and non-lease components, the Company uses the relative stand-alone price to allocate the

consideration under the contract to the lease and non-lease components.

The Company's obligations for short-term employee benefits such as wages, salaries and sick leave are recognised as a part of current trade and

other payables in the statement of financial position.

j. Provisions and Employee Benefits

Short-term employee benefits

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

For leases that have significantly below-market terms and conditions principally to enable the Company to further its objectives (commonly known as

peppercorn/concessionary leases), the Company has adopted the temporary relief under AASB 2018-8 and measures the right of use assets at cost

on initial recognition.

The Company leases some rooms in their building to external parties. Upon entering into each contract as a lessor, the Company assesses if the

lease is a finance or operating lease. The contract is classified as a finance lease when the terms of the lease transfer substantially all the risks and

rewards of ownership to the lessee. All other leases not within this definition are classified as operating leases.

The Company classifies employees' long service leave and annual leave entitlements as other long-term employee benefits as they are not expected to

be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service. Provision is made for

the Company's obligation for other long-term employee benefits, which are measured at the present value of the expected future payments to be made

to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures, and are

discounted at rates determined by reference to market yields at the end of the reporting period on government bonds that have maturity dates that

approximate the terms of the obligations. Upon the remeasurement of obligations for other long-term employee benefits, the net change in the

obligation is recognised in profit or loss classified under employee benefits expense.

The Company's obligations for long-term employee benefits are presented as non-current liabilities in its statement of financial position, except where

the Company does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which case the

obligations are presented as current liabilities.

Where required by Accounting Standards, comparative figures have been adjusted to conform with changes in presentation for the current financial

year.

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 (i.e. trade date accounting is

adopted). Financial instruments( except for trade receivables) are initially measured at fair value plus transaction costs except where the instrument is

classified ‘at fair value through profit or loss’ in which case transaction costs are expensed to profit or loss immediately.

Other long-term employee benefits

The Company transitioned from Dependency on the Government for its funding to individual client arrangements. Under the National Disability

Insurance Scheme the Company sells its services to its individual Clients however, the majority of these Clients are now funded themselves by the

Government. In essence we are now in an environment whereby the Company is not directly dependent on the Government but that dependency still

exists. At the date of this report, the Board of Directors has no reason to believe the Government will not continue to fund the Company's Clients.

Provision is made for the Company's obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination

benefits) that are expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related

service, including wages, salaries and sick leave. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid

when the obligation is settled.

Trade receivables are initially measured at the transaction price.



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Classification and subsequent measurement

n. Critical Accounting Estimates and Judgements

Key Estimates

Impairment

Valuation of Freehold Land and Buildings

Key Judgements

(i) Provision for impairment of receivables

(ii) Performance obligations under AASB 15

(iii) Lease term and Option to Extend under AASB 16

Included in the provision for impairment of receivables at the end of the reporting period are amounts receivable from debtors for services provided

amounting to $42,579. The Company does not believe these amounts will be paid and therefore a provision for impairment has been made.

To identify a performance obligation under AASB 15, the promise must be sufficiently specific to be able to determine when the obligation is satisfied.

Management exercises judgement to determine whether the promise is sufficiently specific by taking into account any conditions specified in the

arrangement, explicit or implicit, regarding the promised goods or services. In making this assessment, management includes the nature/ type, cost/

value, quantity and the period of transfer related to the goods or services promised.

The lease term is defined as the non-cancellable period of a lease together with both periods covered by an option to extend the lease if the lessee is

reasonably certain to exercise that option; and also periods covered by an option to terminate the lease if the lessee is reasonably certain not to

exercise that option. The options that are reasonably going to be exercised is a key management judgement that the Company will make. The

Company determines the likeliness to exercise the options on a lease-by-lease basis looking at various factors such as which assets are strategic and

which are key to future strategy of the Company.

Employee Benefits

For the purpose of measurement, AASB 119: Employee Benefits defines obligations for short-term employee benefits as obligations expected to be

settled wholly before 12 months after the end of the annual reporting period in which the employees render the related services. As the Company

expects that most employees will not use all of their annual leave entitlements in the same year in which they are earned or during the 12-month period

that follows, the directors believe that obligations for annual leave entitlements satisfy the definition of other long-term employee benefits and therefore,

are required to be measured at the present value of the expected future payments to be made to employees.

The Company's financial assets of cash and cash equivalents, trade and sundry debtors are measured at the amount expected to be received.

Financial assets at fair value through profit or loss

Financial Liabilities

Financial assets are classified at "fair value through profit or loss" when they are held for trading for the purpose of short term profit making, derivatives

not held for hedging purposes, or when they are designated as such to avoid accounting mismatch or to enable performance evaluation where a

Company of financial assets is managed by key personnel on a fair value basis in accordance with documented risk management and investment

strategy. Such assets are subsequently measured at fair value with changes in carrying amount included in profit or loss.

The Company does not recognise a loss allowance for expected credit losses on trade receivables as they believe the balance is recoverable. In the

instance where an allowance was necessary, the Company would use the general approach to impairment as applicable under AASB 9.

Under the general approach, at each reporting period, the Company would assess whether the financial instruments are credit impaired and if:

- the credit risk of the financial instrument increased significantly since initial recognition, the Company measures the loss allowance of the financial

instrument at an amount equal to the lifetime expected credit losses; and

- there was no significant increase in credit risk since initial recognition, the Company measures the loss allowance of the financial instrument at an

amount equal to 12-months expected credit losses.

The freehold land and buildings were independently valued at 30 June 2017 by Opteon (South East Regional NSW) Pty Ltd. The valuation was based

on fair value. The critical assumptions adopted in determining the valuation included the location of the land and buildings, the current demand for land

and buildings in the area and recent sales data for similar properties. The valuation resulted in a revaluation increment of $2,086,343 being recognised

in the revaluation surplus for the year ended 30 June 2017. At 30 June 2020, the directors have performed a directors’ valuation on the freehold land

and buildings. The directors have reviewed the key assumptions adopted by the valuers in 2017 and do not believe there has been a significant change

in the assumptions at 30 June 2020. The directors therefore believe the carrying amount of the land & building correctly reflects the fair value less cost

to sell at 30 June 2020.

Impairment of Trade Receivables

The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current

information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally

and within the Company.


Financial liabilities are subsequently measured at amortised cost or fair value through profit or loss. The Company's only financial liabilities are trade

and other payables. They are recognised at the amount payable.

Financial Assets

14


o. Fair Value of Assets and Liabilities

Initial application of AASB 15 and AASB 1058

Initial application of AASB 16

The following practical expedients have been used by the Company in applying AASB 16 for the first time:

- the use of hindsight to determine lease terms on contracts that have options to extend or terminate;

- not applying AASB 16 to leases previously not identified as containing a lease under AASB 117 and Interpretation 4.

The AASB has issued a number of new and amended Accounting Standards that have mandatory application dates for future reporting periods, some

of which are relevant to the Company. The Company has decided not to early adopt any of the new and amended pronouncements.

The Company has adopted AASB 16 Leases retrospectively with the cumulative effect of initially applying AASB 16 recognised at 1 July 2019. In

accordance with AASB 16, the comparatives for the 2019 reporting period have not been restated.

The Company has applied AASB 15: Revenue from Contracts with Customers and AASB 1058: Income of Not-for-Profit Entities using the cumulative

effective method of initially applying AASB 15 and AASB 1058 as an adjustment to the opening balance of equity at 1 July 2019. Therefore, the

comparative information has not been restated and continues to be presented under AASB 118: Revenue and AASB 1004: Contributions.


“Fair value” is the price the Company would receive to sell an asset or would have to pay to transfer a liability in an orderly (ie unforced) transaction

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

The Company measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending on the requirements of

the applicable Accounting Standard.

The Company has recognised a lease liability and right-of-use asset for all leases (with the exception of short-term and low value leases) recognised

as operating leases under AASB 117 Leases where the Company is the lessee. The lease liabilities are measured at the present value of the

remaining lease payments. The Company's incremental borrowing rate as at 1 July 2019 was used to discount the lease payments.

The right-of-use assets for equipment were measured at its carrying amount as if AASB 16: Leases had been applied since the commencement date,

but discounted using the Company’s incremental borrowing rate per lease term as at 1 July 2019.

- applying AASB 16 to leases previously identified as leases under AASB 117: Leases and Interpretation 4: Determining whether an arrangement

contains a lease without reassessing whether they are, or contain, a lease at the date of initial application; and

- leases that have a remaining lease term of less than 12 months as at 1 July 2019 have been accounted for in the same way as short-term leases;

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

market values may be made having regard to the characteristics of the specific asset or liability. The fair values of assets and liabilities that are not

traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the

use of observable market data.

To the extent possible, market information is extracted from the principal market for the asset or liability (ie the market with the greatest volume and

level of activity for the asset or liability). In the absence of such a market, market information is extracted from the most advantageous market available

to the entity at the end of the reporting period (ie the market that maximises the receipts from the sale of the asset or minimises the payments made to

transfer the liability, after taking into account transaction costs and transport costs).

(p) New and Amended Accounting Policies Adopted by the Company

15


Note 2020 2019

$ $

Government Funding received

Department of Social Security (DSS) 49,192 94,703

0 284,542

Department of Health (DOH) 256,803 357,321

National Disability Insurance Scheme (NDIS) 14,140,531 14,324,171

Government Stimulus 3,683,200 -

Other 697 9,690

Total 18,130,423 15,070,427

Fundraising

Raffle 18 61,827 147,303

Other fundraising activities 18 279,731 300,090

Total 341,558 447,393

Other revenues

Interest received 74,200 115,362

Revenue from other sources 282,467 174,764

Gain on sale of non current assets - 28,457

Total 356,667 318,583

Bequest 300,000 -

Transaction price allocated to the remaining performance obligation

Remuneration and employee benefits

Wages - Staff 13,014,369 12,991,487

Wages - Supported Employees 2,957,151 1,725,200

Staff training 17,464 18,213

Total 15,988,984 14,734,900

Depreciation of non current assets

Plant and equipment 8 181,182 142,796

Buildings 8 269,127 271,734

Motor vehicles 8 177,172 183,458

Right of use assets 9 127,654

755,135 597,988

Other expenses includes

Audit and other services (ISO and Finance) 62,222 25,304

Doubtful debts expense 40,278 47,694

Loss on sale of non current assets 557 -

IT Leasing and support 637,807 539,707

Communication costs 89,339 112,440

Insurance 133,381 138,436

Consulting 40,822 -

All other expenses 1,067,795 884,661

Total Other Expenses 2,072,201 1,748,242

Current

Cash on hand 7,350 7,300

Company current accounts 5,665,348 1,550,434

Company short term investment accounts 2,771,141 5,201,232

8,443,839 6,758,966

NOTE 2: REVENUE AND OTHER INCOME

The grant revenue expected to be recognised for the year ended 30 June 2021 is $1,459,175 and relates to the performance obligations that are

unsatisfied or partially unsatisfied at the time of reporting.


NOTE 3: EXPENSES

NOTE 4: CASH AND CASH EQUIVALENTS

Ageing, Disability and Home Care (ADHC), agency of NSW Department of

Family and Community Services

16


Note 2020 2019

$ $

Current

Trade debtors 851,585 662,649

Sundry debtors 1,561,085 226,994

Provision for Impairment (42,579) (62,281)

2,370,091 827,362

Expected Credit Loss Lifetime Credit: Impaired

Opening balance 62,281 27,664

Net measure of loss allowance 40,278 47,694

Amounts written off (59,980) (13,077)

Closing balance 30 June 2020 42,579 62,281

Current

Materials & stores 231,224 65,202

Work in progress 12,724 7,063

Finished goods 3,526 3,990

247,474 76,255

Current

Prepayments 132,291 139,083

132,291 139,083

Land and Buildings

Freehold land:

Directors valuation 7,355,000 7,355,000

Land at cost 1g - - Total Land 7,355,000 7,355,000

Buildings

Directors valuation 8,560,000 8,560,000

Buildings at cost 800,453 721,681

Less: accumulated depreciation (801,699) (532,572)

Total Buildings 8,558,754 8,749,109

Total Land and Buildings 15,913,754 16,104,109

Plant & Equipment

Plant & equipment at cost 1,395,564 2,472,180

Less: accumulated depreciation (801,699) (1,903,994)

Total Plant & Equipment 593,865 568,186

Motor Vehicles

Motor vehicles at cost 2,617,918 2,749,646

Less: accumulated depreciation (2,082,347) (2,086,704)

Total Motor Vehicles 535,571 662,942

Total Property, Plant and Equipment 17,043,190 17,335,237

NOTE 5: TRADE AND OTHER RECEIVABLES


NOTE 8: PROPERTY PLANT AND EQUIPMENT

The following table shows the movement in lifetime expected credit loss that has been recognised for trade and other receivables in accordance with

the general approach set out in AASB 9: Financial Instruments.

NOTE 6: INVENTORY

NOTE 7: OTHER ASSETS

17


Asset revaluations

Movements in Carrying Amounts

2019

Opening

Balance

$

Additions Disposals

(net)

Assets Written

Down Asset

Revaluation

Depreciation Closing

Balance

$

Buildings 8,931,981 88,862 - - - 271,734 8,749,109

Land 7,355,000 - - - - - 7,355,000

Plant and Equipment 391,082 319,899 - - - 142,796 568,185

Motor Vehicles 605,356 249,589 8,544 - - 183,458 662,943

Capital Works in progress - - - - - - -

Total 17,283,421 658,350 8,544 - - 597,988 17,335,237

2020

Opening

Balance

$

Additions Disposals

(net)

Assets Written

Down Asset

Revaluation

Depreciation Closing

Balance

$

Buildings 8,749,109 78,772 - - - 269,127 8,558,754

Land 7,355,000 - - - - - 7,355,000

Plant and Equipment 568,185 207,418 557 - - 181,182 593,864

Motor Vehicles 662,943 49,801 - - - 177,172 535,572

Capital Works in progress - - - - - - -

Total 17,335,237 335,991 557 - - 627,481 17,043,190

Note 2020 2019

$ $

Non- Current

Leased Building 291,850 -

Accumulated depreciation (127,654) -

164,196 -

i) AASB 16 related amounts recognised in the statement of profit or loss

Depreciation charge related to right-of-use assets 127,654

Interest expense on lease liabilities 12,321

Movements in Carrying Amounts

2020

Opening

Balance

$

Additions Disposals

(net)

Assets Written

Down Depreciation Closing

Balance

$

Buildings - 291,850 (127,654) 164,196

Total 291,850 (127,654) 164,196

NOTE 9: RIGHT OF USE ASSETS

The Company's lease portfolio includes leased buildings and equipment. These leases have an average lease term of 4.3 years. The option to extend

or terminate are contained in several of the property leases of the Company. These clauses provide the Company with opportunities to manage leases

in order to align with its strategies. All of the extension or termination options are only exercisable by the Company. The extension options or

termination options which were probable to be exercised have been included in the calculation of the Right of Use Asset.

The Company has concessionary leases with Wollongong City Council for the exclusive use of the car park and green spaces. The Company may not

use this space for any other purpose during the lease term without prior consent.. The lease payments are approx. $600 per annum. The Company is

dependent on these leases to further its objectives in this area. Without these concessionary leases, it would be unlikely for the Company to service

this area. More information on concessionary leases are available as described in Note 1 (i).


At 30 June 2020, the directors have performed a directors’ valuation on the freehold land and buildings. The directors have reviewed the key

assumptions adopted by the valuers in 2017 and do not believe there has been a significant change in the assumptions at 30 June 2020. The directors

therefore believe the carrying amount of the land correctly reflects the fair value less cost to sell at 30 June 2020. Refer to Note 24 for detailed

disclosures regarding the fair value measurement of the Company’s freehold land and buildings.

Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year:

18


Note 2020 2019

$ $

Current

Trade creditors 335,663 307,008

Other creditors and accruals 1,006,430 712,221

Income in advance/refundable - 23,252

Contract Liabilities 1,482,167 -

Total 2,824,260 1,042,481

Financial liabilities at amortised cost classified as trade and other payables

Trade and other payables

Total current 2,824,260 1,042,481

Total non-current - -

Financial liabilities as trade and other payables 23 2,824,260 1,042,481

Employee entitlements:

Current

Annual leave 787,550 951,302

Long service leave 1,064,213 975,332

Total Current 1,851,763 1,926,634

Non-current

Long service leave 195,387 232,910

Total Non-current 195,387 232,910

Total Provisions 2,047,150 2,159,544

Provision for Long Term Employee Benefits

Provision for employee benefits represents amounts accrued for annual leave and long service leave.

Non- Current

ADHC's Contribution to View St, Warilla 360,781 360,781

360,781 360,781

Current

Lease Liability 108,966 -

108,966 -

Non-current

Lease Liability 58,106 -

58,106 -

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

historical data. The measurement and recognition criteria for employee benefits have been discussed in Note 1(j).

NOTE 13: BORROWINGS

NOTE 10:TRADE PAYABLES

The current portion for this provision includes the total amount accrued for annual leave entitlements and the amounts accrued for long service leave

entitlements that have vested due to employees having completed the required period of service. Based on past experience, the Company does not

expect the full amount of annual leave or long service leave balances classified as current liabilities to be settled within the next 12 months. However,

these amounts must be classified as current liabilities since the Company does not have an unconditional right to defer the settlement of these

amounts in the event employees wish to use their leave entitlement.


The non-current portion for this provision includes amounts accrued for long service leave entitlements that have not yet vested in relation to those

employees who have not yet completed the required period of service.

NOTE 11: PROVISIONS

NOTE 12: OTHER LIABILITIES

19


Note 2020 2019

$ $

Non-cancellable operating leases contracted for but not capitalised in the financial statements under AASB 117

- 78,423

- -

- -

- -

- 78,423

Finance Commitments

Minimum lease payments

not later than 12 months 114,542 -

later than 12 months but not later than 5 years 44,896 -

later than 5 years 6,150 -

Unexpired interest (8,212) - Minimum lease payments 157,376 -

a) Reconciliation of Cash

Cash at bank 8,436,489 6,751,666

Other cash 7,350 7,300

4 8,443,839 6,758,966

b ) Reconciliation of Cashflow from Operations with Profit/(loss) after Income Tax

Operating profit (loss) after income tax 1,427,720 (475,486)

(Profit) on sale of non current assets - (28,457)

Loss on sale of non-current assets 557 -

Interest charged on financing arrangements - -

Add non cash items

Depreciation 755,135 597,987

Net cash provided by / (used in) operating activities

before changes in assets and liabilities 2,183,412 94,044

Changes in assets and liabilities

(Increase) / decrease in inventories (171,219) 25,343

(Increase) / decrease in receivables (1,542,729) 213,526

(Increase) / decrease in other current assets 6,793 (22,057)

Increase / (decrease) in trade and other creditors 1,781,779 86,630

Increase / (decrease) in advance/refundable - (343,256)

Increase / (decrease) in provisions (112,393) 68,994

Net cash provided by / (used in) operating activities 2,145,643 123,223

NOTE 17: MEMBERS' GUARANTEE

Later than 2 years but not later than 5 years

There were no contingent liabilities or commitments as at 30th June 2020.

Later than 1 year but not later than 2 years

The property lease commitments are non-cancellable operating leases contracted for but not capitalised in the financial statements. Increase in lease

commitments may occur in line with CPI. During the year the Company renewed its lease for one premise for a further 5 years. The second lease was

extended for a single year.

Later than 5 years

The Company is incorporated under the Corporations Act 2001 and is a Company Limited by Guarantee. If the Company is wound up, the constitution

states that each member is required to contribute a maximum of $20 each towards meeting any outstanding obligations of the Company. At 30 June

2020 the number of members was 15.


Operating Lease Commitments:

Not later than 1 year

NOTE 16: CONTINGENT LIABILITIES AND ASSETS

NOTE 14: CAPITAL AND LEASING COMMITMENTS

NOTE 15: CASH FLOW INFORMATION

20


Note 2020 2019

$ $

NOTE 18: INFORMATION & DECLARATION TO BE FURNISHED UNDER THE 'CHARITABLE FUNDRAISING ACT 1991’

Raffle Income

Ticket sales 56,105 135,350

Donations 5,692 11,765

Others 30 188

Gross Income from Lucky Draws 61,827 147,303

Raffle Expenses

Wages - -

Prizes 18,900 42,103

Third party expenses 18,626 48,832

Other expenses - 960

Expenses from lucky draw 37,526 91,895

Net profit from lucky draw 24,301 55,407

Profit ratio from lucky draw 39% 38%

Fundraising Income from other sources

Donations 141,276 175,473

Membership 330 198

Payroll deductions 10 52

Annual Ball - 35,299

M2M 65,500 67,209

Proceed from other fundraising sources 72,614 21,859

Net proceeds from Fundraising 279,730 300,090

NOTE 19. KEY MANAGEMENT PERSONNEL

The key management personnel compensation included in "remuneration and employee benefits" (see note 3a) is as follows:

Short-term employee benefits 897,567 995,814

Post-employment benefits 85,120 94,602

Other long-term benefits 95,491 79,106

1,078,178 1,169,522

NOTE 20: RELATED PARTY TRANSACTIONS

NOTE 21: COMPANY DETAILS

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

Greenacres Disability Services

4 Ralph Black Drive

North Wollongong NSW 2500

Since the end of the previous financial year, no Director of the Company has received or become entitled to receive a benefit (other than a benefit

included in the aggregate amount of emoluments received or due and receivable by Directors shown in the accounts or received as the fixed salary of a

full time employee of the Company) by reason of a contract made by the Company or by a related body corporate with the Director or with a firm of

which they are a member, or a company in which they have a substantial financial interest other than noted in this report.

Details of Aggregate Gross Income and Expenses of Fundraising Appeals:

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

unless otherwise stated.

No Director has entered into a material contract with the Company since the end of the previous financial year and there were no material contracts

involving Director's interests subsisting at year end.

Under its Constitution, no director is entitled to receive remuneration, superannuation or any other form of benefit.


Key Management: is defined as those persons having authority and responsibility for planning, directing and control of the activities of the Company

directly or indirectly, including any director (whether executive or otherwise) of that Company.

21


NOTE 22. AFTER BALANCE DATE EVENTS

NOTE 23. FINANCIAL INSTRUMENTS

Note 2020 2019

Financial Assets $ $

Cash and cash equivalents 4 8,443,839 6,758,966

Receivables 5 2,370,091 827,362

Total Financial Assets 10,813,930 7,586,328

Financial Liabilities

Trade and other payables 10 2,824,260 1,019,229

Borrowings 13 167,072 -

Total Financial Liabilities 2,991,332 1,019,229

Financial Risk Management Policies

NOTE 24. FAIR VALUE

Recurring fair value measurements

Note 2020 2019

Property, plant and equipment $ $

Freehold land 8 ^ 7,355,000 7,355,000

Freehold buildings 8 ^ 8,558,754 8,749,109

15,913,754 16,104,109


After balance date, the Company entered into a contract to sell the property located at Fisher Street, Oak Flats and to purchase a property located in

Green Street, Warrawong.

On 11 March 2020, the World Health Organisation (“WHO”) declared the Coronavirus disease 2019 ("COVID-19") a pandemic. The pandemic has

adversely affected the global economy, including an increase in unemployment, decrease in consumer demand, interruptions in supply chains, and

tight liquidity and credit conditions. Consequently, governments around the world have announced monetary and fiscal stimulus packages to minimise

the adverse economic impact. However, the COVID-19 situation is still evolving, and its full economic impact remains uncertain.

Although the COVID-19 situation has created economic uncertainty, the directors believe the Company will be able to continue as a going concern.

*For investments in listed shares, the fair values have been determined based on closing quoted bid prices at the end of the reporting period.

^For freehold land and buildings, the fair values are based on a directors’ valuation taking into account an external independent valuation performed in

the previous year, which had used comparable market data for similar properties.

The Company's financial instruments consist mainly of deposits with banks, short-term investments, accounts receivable and accounts payable and

leases.

The Company implemented Government Guidelines across the business to protect staff and reduce risk of infection. Staffing levels were reviewed and

staff redeployed to areas of highest demand and encouraged staff to take leave. The Company worked with customers and suppliers to understand

their changed requirements and made the necessary changes to meet them. The Company also applied successfuly for JobKeeper and additional

grants to provide financial support.

Overall risk management strategies are developed in consultation with the Directors and are aimed at assisting the Company in meeting its financial

targets, whilst minimising potential adverse effects on financial performance. Risk management policies are reviewed on a regular basis. These include

credit risk policies and future cash flow requirements.

The Company has the following assets, as set out in the table below, that are measured at fair value on a recurring basis after their initial recognition.

The Company does not subsequently measure any liabilities at fair value on a recurring basis and has no assets or liabilities that are measured at fair

value on a non-recurring basis.

Refer to Note 24 for detailed disclosures regarding the fair value measurement of the Company’s financial assets and financial liabilities.

The carrying amounts for each category of financial instruments measured in accordance with AASB 9: Financial labilities as detailed in the accounting

policies to these financial statements, are as follows:

22

DIRECTORS' DECLARATION


The directors of the Company declare that:

(a) The financial statements and notes set out on pages 6 to 22 satisfy the requirements of the Australian Charities and

Not-for-profits Commission Act 2012 and;

(b) 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.

Signed in accordance with subsection 60.15(2) of the Australian Charities and Not-for-profits Commission Regulation 2013.


23

Director

Wollongong, NSW

14 October 2020

Director

Wollongong, NSW

14 October 2020


The committee members declare that;


NSW CHARITABLE FUNDRAISING ACT DECLARATION

a) The financial report gives a true and fair view of all income and expenditure of the Company with respect to fundraising activities for the year ended

30 June 2020;

c) The internal controls exercised by the Company are appropriate and effective in accounting for all income and expenditure applied by the Company

in its fundraising.

Signed in accordance with a resolution of the committee

b) The provisions of the Charitable Fundraising Act and Regulations and the conditions attached to the authority have been complied with for the year

ended 30 June 2020; and

24

Director

Wollongong, NSW

14 October 2020

Director

Wollongong, NSW

14 October 2020

INDEPENDENT AUDITOR’S REPORT

To the Members of Greenacres Disability Services,

Opinion

Basis for Opinion

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Emphasis of Matter - Current Uncertainties Arising from Coronavirus Disease 2019 ("COVID-19")

Information Other than the Financial Report and Auditor’s Report Thereon

Responsibilities of Management and Those Charged with Governance for the Financial Report

I have audited the financial report of Greenacres Disability Services (“the Entity”) which comprises the statement of financial position as at 30 June

2020, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes

to the financial statements, including a summary of significant accounting policies, and the declaration by those charged with governance.

In my opinion, the accompanying financial report of the Entity is in accordance with Division 60 of the Australian Charities and Not-for-profits

Commission Act 2012, including:

If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I

have nothing to report in this regard.

Management is responsible for the preparation of the financial report that gives a true and fair view in accordance with the Australian Accounting

Standards – Reduced Disclosure Requirements and the Australian Charities and Not-for-profits Commission Act 2012 and for such internal control as

management determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or

error.

a) giving a true and fair view of the Entity’s financial position as at 30 June 2020 and of its financial performance and cash flows for the year then

ended; and

b) complying with Australian Accounting Standards – Reduced Disclosure Requirements and Division 60 of the Australian Charities and Not-for-

profits Commission Regulation 2013 .

In connection with my audit of the financial report, my responsibility is to read the other information and, in doing so, consider whether the other

information is materially inconsistent with the financial report or my knowledge obtained in the audit or otherwise appears to be materially misstated.

I conducted my audit in accordance with Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s

Responsibilities for the Audit of the Financial Report section of my report. I am independent of the Entity in accordance with the auditor independence

requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (“the Code”) that

are relevant to my audit of the financial report in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code.

I confirm that the independence declaration required by Division 60 of the Australian Charities and Not-for-profits Commission Act 2012, which has

been given to those charged with governance, would be in the same terms if given as at the time of this auditor’s report.

Those charged with governance are responsible for the other information. The other information comprises the information included in the annual report

for the year ended 30 June 2020, but does not include the financial report and my auditor’s report thereon.

My opinion on the financial report does not cover the other information and accordingly I do not express any form of assurance conclusion thereon.

c) the financial report agrees to the underlying financial records of the Entity, that have been maintained, in all material respects, in accordance with

the Charitable Fundraising Act 1991 and its regulations for the year ended 30 June 2020; and

d) monies received by the Entity, as a result of fundraising appeals conducted during the year ended 30 June 2020, have been accounted for and

applied, in all material respects, in accordance with the Charitable Fundraising Act 1991 and its regulations.

I also draw attention to Note 22 of the financial report which describes the current uncertainties arising from the on-going situation associated with

COVID-19. My opinion is not modified in respect of this matter.

25

Those charged with governance are responsible for overseeing the Entity’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Report

Ben Fock

Registered Company Auditor Wollongong, NSW

15 October 2020

- evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the

management.

- evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents

the underlying transactions and events in a manner that achieves fair presentation.

- communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit

findings, including any significant deficiencies in internal control that I identify during my audit.

- provide those charged with governance with a statement that I have complied with relevant ethical requirements regarding independence, and to

communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related

safeguards.

In preparing the financial report, management is responsible for assessing the Entity’s ability to continue as a going concern, disclosing, as applicable,

matters related to going concern and using the going concern basis of accounting unless management either intend to liquidate the Entity or to cease

operations, or have no realistic alternative but to do so.

As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism

throughout the audit. I also:

- identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures

responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a

material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control.

- obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not

for the purpose of expressing an opinion on the effectiveness of the Entity’s internal control.

My objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to

fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that

an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can

arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of this financial report.

- conclude on the appropriateness of the management’s use of the going concern basis of accounting and, based on the audit evidence obtained,

whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity’s ability to continue as a going

concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial

report or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my

auditor’s report. However, future events or conditions may cause the Entity to cease to continue as a going concern.

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Documents

GENERAL PURPOSE FINANCIAL REPORT FOR THE YEAR ENDED …