Swimming Australia Limited and controlled entities

Swimming Australia Limited and controlled entities

ABN 14 109 333 628

Financial Statements 30 June 2020

Swimming Australia Limited and controlled entities Financial Statement

30 June 2020 Contents Page

Directors' report 1

Financial statements 14

Directors' declaration 44

Independent auditor's report to the members 45

1

Swimming Australia Limited and controlled entities Directors' report

30 June 2020

Your Directors present their report on the consolidated entity (referred to hereafter as the group) consisting of Swimming Australia Limited and the entities it controlled at the end of, or during, the year ended 30 June 2020. Directors The following persons were directors of Swimming Australia Limited and controlled entities during the financial year and up to the date of this report, unless specifically noted otherwise: Mr John Bertrand AO Mr Daniel Burger (Resigned 31 October 2019) Ms Abi Cleland Mr Bruce Havilah Mr Graeme Johnson Ms Nicole Livingstone OAM Mrs Tracy Stockwell OAM Mr Andrew Baildon Mr Kieren Perkins OAM At balance date, there was a appointed director vacancy, that was subsequently filled in July 2020 with the appointment of Ms Melissa Fein. Chief Executive Officer (CEO) Ms Leigh Russell held the position of CEO during the financial year. Principal activities The consolidated group comprises of Swimming Australia Limited (Parent Entity), Swimming Australia Foundation Limited, The Swimming Foundation and Swimming Australia Property Trust. The principal activities of Swimming Australia Limited were to: - Promote and encourage participation in swimming activities; - Promote unity among Australian Swimming organisations; - Make Australia the leader in world swimming; - Promote swimming as a spectator sport; - Ensure that the sport is kept free of performing enhancing drugs; - Administer the sport for the benefit of all participants; - Act in all matters of an Australian nature regarding swimming; and - Development of a best practice Safe Sport Framework.

The principal activity of the Swimming Foundation is to act as an investment vehicle for Swimming Australia Limited. The principal activity of the Swimming Australia Property Trust was to hold proceeds from the sale of an investment property. The Trustees are considering the future activities of the Trust. The principal activity of Swimming Australia Foundation Limited is to act as the trustee company for the Swimming Foundation and the Swimming Australia Property Trust. There was no significant change in the nature of the activity of the group during the year.

2


30 June 2020 (continued)

Review of operations

In 2019-20 Swimming Australia has invested in key strategic programs and projects that have included the High Performance Olympic campaign and investment in pathways to encourage the next wave of talent in our sport. We also continued investment in the iSwim and website digital products together with the ongoing implementation and enhancement of our membership system Swim Central. Another key strategy was the continued support of coaching development through the new coaching accreditation program and the investment in the swimming community through the Move IT AUS Community Swimming Grants Program.

As the COVID-19 pandemic unfolded an immediate reprioritisation was required to support our athletes whilst they were restricted in their daily performance environment and, in collaboration with our Member Organisations, support our swimming community though the development of national guidelines for restarting club environments.

COVID-19

The outbreak of COVID-19 and the subsequent containment measures imposed by the Australian and other state/territory governments, as well as the travel restrictions imposed by Australia and other countries in early 2020, have caused considerable disruption to business and economic activity. Swimming Australia has not been exempt from this disruption which impacted the staging of national events in April and June, restriction on access to pools and the flow on effects to the daily performance environment and corporate operations. These impacts became evident in March 2020 and were continuing to have a material effect on Swimming Australia’s operations at 30 June 2020.

At a time when the sporting industry, and indeed all industries, are navigating out of the COVID-19 crisis we have a unique opportunity to critically evaluate our sport and set our course for a sustainable future. The Board and Executive team will continue to be focused on business continuity planning post June 30 2020 and make necessary revisions to strategy and budget to reimagine our sport to build the ‘new normal’ and deliver further cost saving efficiencies in a commercial landscape that will undoubtedly be significantly different.

High Performance

Athletes attended four international events during the year: The FINA World Championships in South Korea for the Olympic team, the Paralympic team attended World Championships in England and the Junior team visited Hungary for the FINA Junior World Championships, along with the World University Games in Italy.

In addition to attending these events, the Olympic team attended national and international camps and competitions, provided coaching assistance and invested in daily performance initiatives in our high performance centers. The impact of COVID-19 will see any cancelled international competitions move future financial years and any carry forward will be targeted to cover these additional international competition costs.

Following the 2019-20 year a High Performance surplus remained due to the impact of COVID-19 and the cancelling of competition and Olympic preparation, leading into the Olympic year in 2020-21, a carry forward of revenue will be acquitted and agreed with Sport Australia.

3



Review of operations (continued)

Commercial

Our marketing focus was on our Greatness Starts Somewhere campaign and this continued into early 2020, promoting the athlete stories and their journeys but also inspiring stories within our community.

With the impact of COVID-19 affecting our ability to physically deliver event activation assets, the commercial and communications team were able to pivot to a digital focus to provide value to partners. This included innovations such as our Australian Dolphins and Coaches engaging directly with the community during lockdowns.

Sport Sustainability and Growth

The first full year of new coaching accreditation program was delivered in 2019-20, which incorporates Performance Level (previously Gold) and Advanced Level (previously Silver) coaching courses, as well as continued Development level.

Another highlight for Sport Sustainability and Growth was the successful obtainment and delivery of a $750k Sport Australia Move IT AUS / Community Swimming Grants program partnering with local deliverers to provide swimming opportunities for at-risk communities.

Development also commenced for the important complementing sub-strategies to the new National Strategic Plan – Enrich and Inspire: Towards 2032, that was launched in September 2019, across all of coaching development, the development of technical officials, and enhanced diversity & inclusion of the sport.

4



Parent entity three-year summary of financial performance

2018 2019 2020

Income Grants 11,623,207 14,268,501 14,424,676 Sponsorship 10,717,079 10,354,638 5,859,797 Event income 1,136,540 1,801,109 147,335 Affiliation fees 1,126,667 1,198,863 1,042,593 Other 1,914,192 1,086,586 2,159,292 Total income 26,517,685 28,709,697 693,63323, Expenditure High Performance 11,045,123 13,025,733 13,077,094 Sport, Sustainability and Growth 4,072,255 3,045,551 3,375,202 Events 2,794,647 2,847,032 1,318,014 Commercial* 3,816,460 4,436,700 1,937,094 IT 1,468,391 1,389,353 1,009,752 Corporate** 2,637,439 3,163,854 2,492,257 Total expenditure 25,834,315 27,908,223 23,209,413

Net result 683,370 801,474 424,280

Impairment loss (145,400) - (539,346)

Net result, including Impairment loss 537,970 801,474 (115,066)

* inclusive of Corporate, Fan Engagement and Media costs

** inclusive of People & Culture, Finance and Executive costs

The following paragraphs provide additional commentary on significant movements in revenue and expenditure across the three-year comparison period.

Revenue

Revenue from grants comprises the annual funding for the High Performance and Participation & Sport Development program streams together with additional grants and a range of strategic project funding grants. Grants received from Sports Australia during 2018-19 and 2019-20 were slightly up on previous years grants received; notably receipt of a High Performance Infrastructure Technology grant of $850,000 in 2019-20. A carry forward of High Performance surplus funds at 30 June 2020 (these funds mostly due to be expended as we head towards, and participate in, the rescheduled Tokyo 2021 Olympics) will be acquitted and agreed with Sport Australia.

Sponsorship revenue declined slightly in the 2018-19 financial year due to the Optus partnership ending in May 2019 ($4.2m of this sponsorship revenue was included in 2018-19, leading to the resultant significant revenue decrease in 2019-20). A new partnership with leading wealth management company MLC was announced in July 2020; this three year partnership designed to support young Australia swimmers as the exclusive partner of our National Flippers program. New commercial revenue targets, including new revenue streams, are being explored for the future financial years.

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Parent entity three-year summary of financial performance (continued)

Event income was up significantly in 2018-19 due to the securing of tourism sponsor for our Australian Championships. The impact of COVID-19 however had a significant detrimental impact on Event income in 2019-20 with the cancellation of three national Events during the financial year: the 2020 Hancock Prospecting Australian Age Championships and 2020 Hancock Prospecting Australian Swimming Championships (both were set to be staged in Perth in April 2020) together with the 2020 Hancock Prospecting Australian Swimming Trials (to be hosted in Adelaide in June 2020). The impact of cancelling these events led to the reduction in event income which were offset by corresponding expense savings due to not hosting these events.

Affiliation fees comprise both aquatic sport affiliations and membership payments; with the impact of COVID-19 seeing Governments around Australia imposing restrictions on access to pools to limit the spread of the virus, thereby seeing fee income down in 2019-20 compared to prior years.

Other income comprises contributions by The Swimming Australia Foundation, recoveries from swimmers and States, coaching revenue, bank interest, with 2019-20 seeing receipt of COVID-19 related Government stimulus packages. Other income has increased in 2019-20 partly due to an additional contribution from High Performance funding towards substantiated operating expenditure of the wider business.

Expenditure Annual operating expenditure for the High Performance programs continues to reflect an upward trend in the investment across the three years.

The 2017-18 costs for High Performance were lower due to the Commonwealth Games for both the Olympic and Paralympic teams being hosted domestically on the Gold Coast. These costs increased in 2018-19 mainly due to increased Olympic and Paralympic program spend during this period supported by the increase in grant revenue. Notably costs were significantly down in 2019-20 because of COVID-19 and the restrictions on both domestic and international travel commencing in April 2020; being partially offset by the operating expenditure contribution from High Performance to the wider swimming business.

Swimming Australia also continues its increased investment in its next generation of swimmers and coaches through the Pathway program which increased talent ID, training camps and competition exposure. Those camps and competitions impacted by COVID-19 will be rescheduled to occur during 2020-21 financial year as we lead into the Tokyo 2021 Olympics.

Sport Sustainability and Growth expenditure increases in 2017-18 included the introduction and development of the Junior Dolphins program (this program was targeted at the growth of junior participation through a non-competitive environment). The decrease in spend in 2018-19 is reflective of program reductions (including Junior Dolphins) and program removals (including indigenous and inclusion programs). Also noting expenditure on the development of advanced coaching programs was finalised in 2017-18. Increased expenses occurred in 2019-20 due to the ‘Move IT AUS’ program for a community swimming grants scheme rolled out during the financial year, following securing of substantial funding from Sport Australia during 2018-19.

Event expenditure for the current 2019-20 financial year decreased due to the previously mentioned cancellation of the three national events due to COVID-19 restrictions. There is continued focus on scenario planning for future event delivery to adapt to the changing landscape of national and state restrictions.

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Commercial expenditure across the reporting period is reflective of sponsorship partner acquisition and servicing costs. Swimming Australia invested significantly in improving digital capability in 2017-18 when Australia Swims was introduced to increase participation in swimming; with it continuing in 2018-19 leading to further development of digital assets thereby increased costs for the commercial business unit being offset by contacted innovation funding from the Optus Partnership which ended in May 2019.

Technology continues to be an area for focus for Swimming Australia with multiple strategic business initiatives continuing across the three-year period. In 2019-20 our IT department remodeled its way of working; ensuring the highest value items were worked on first. This saw the continued investment in Swim Central (our membership, events, and results system) with further development, enhancements and significant upgrades occurring on the product since its inception (in March 2019). Associated IT expenditure costs for both iSwim (launched in 2018-19, to engage recreational swimmers of all ages) and Swim Central are now treated as intangible assets on our Balance Sheet; being amortised over their estimated useful lives.

Corporate expenditure has remained flat across the three-year comparison period with increased costs in 2018-19 mainly related to increased legal expenditure together with the timing and restructuring in key management personnel, including expansion of the funded Athlete, Wellbeing and Engagement role. In 2019-20 a decrease in expenses occurred mainly due to the staffing and employment impacts (including minimal movement in key management personnel), with resultant expenditure savings due to impacts of COVID-19; which saw employees either stood-down or working reduced hours during the last quarter of 2020. Pleasingly as we enter the new 2020-21 financial year all employees have returned in their full capacity.

Impairment Loss

An impairment loss of $539k was recorded in 2019-20 to recognise the movement in the net assets of The Swimming Australia Foundation following the impact of COVID-19 on the investment markets. An impairment loss of $145k was recorded in 2017-18.

Significant changes in the state of affairs There were no other significant changes in the state of affairs of the group during the year. Matters subsequent to the end of the financial year As previously mentioned, the outbreak of COVID-19 and the subsequent containment measures imposed by the Australian and other state/territory governments, as well as the travel restrictions imposed by Australia and other countries in early 2020, have caused considerable disruption to business and economic activity. Accordingly, Swimming Australia Limited have considered the balance sheet and financial effects of COVID-19 with these initial impacts reflected in the financial statements as at 30 June 2020.

As the situation remains fluid and continues to escalate (due to the evolving and constant changes in government policy and evolving business and customer reactions thereto) as at the date the financial statements are authorised for issue, the directors of Swimming Australia Limited have duly considered the financial effects of COVID-19 on the financial report and reasonably estimated for future financial periods. However, the directors consider the general economic impacts arising from COVID-19 are expected to have a negative impact on revenue due to the potential further cancellation of events, corporate partner impacts, decreased membership capitation and refinement of programs also. Swimming Australia Limited is also reviewing all programs and expenditure and registering for government stimulus measures as applicable. The economic effects arising from the

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COVID-19 outbreak have the potential to materially affect the results of the entity for the full financial year ended 30 June 2021; and the financial years thereafter.

Likely developments and expected results of operations The group expects to maintain the present status and level of operations and hence there are no likely developments in the group's operations. Environmental regulation The group is not affected by any significant environmental regulation in respect of its operations.

Information on directors Mr John Bertrand AO Director and President

Qualifications Bachelor of Engineering (Hons) Monash University Master of Science Massachusetts Institute of Technology (Boston) Honorary Doctorate, Victoria University 2013 Experience and expertise President Swimming Australia since 2013. Olympics: Bronze ’76 Montreal, 4th ’72 Munich, Olympic Finn class. Five America’s Cup campaigns (1970, 1974, 1980, 1983 and 1995). Both competing and

management. Skipper, team captain: 1983 Australia II America’s Cup winner. Dual Olympian – Munich 1972, Montreal 1976 (Bronze medalist). Legend of the Sport Australia Hall of Fame, America’s Cup Hall of Fame, Olympic Finn class

Hall of Fame. Chairman: The Prime Minister’s Alannah and Madeline Children’s Foundation (2001 to 2015) Chairman: The Sport Australia Hall of Fame (2005 to current). Melbournian of the Year, 2008 for community leadership. Monash University Distinguished Alumni Lifetime Achievement Award, 2011. Vice Chancellor Professorial Fellow, Monash University. Leadership and creation of high

performance team, since 2013. Honorary Doctorate, Victoria University, 2013. Over a 30-year business career established businesses in the marine industry, property

development and digital media industries. 1985 Order of Australia award AM: in recognition of services to yachting. 2016 Queens birthday Order of Australia award AO: In recognition of services to children’s

welfare, higher education, mentoring of young people and sporting administration, in particular sailing and swimming.

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Information on directors (continued)

Mr Daniel Burger Director (Resigned 31 October 2019) Qualifications B.Arch. (Melb), Grad. Dip. Proj. Man. (VUT), RAIA Experience and expertise Director, Debuilt Property Pty Ltd (Current) Director, Gresham Property Funds Management Ltd (2006–2013) Managing Director, Escor Property Pty Ltd (Ridge Corp Pty Ltd) (1996-2005) Former President, Swimming Victoria Inc. Former Committee, Melbourne Vicentre Swimming Club Inc

Ms Abi Cleland Director Qualifications BA (Monash University), BCom (Monash University), MBA (Melbourne University), GAICD

Experience and expertise Managing Director Absolute Partners Non-Executive Director Coles Supermarkets Australia Pty Ltd Non-Executive Director Orora Ltd Non-Executive Director Computershare Ltd Non-Executive Director Sydney Airports Ltd Prior Appointments: Strategy, M&A, digital and operational senior executive roles at ANZ, IPL, 333

Management and Caltex

Special responsibilities Chair of the Audit, Risk & Integrity Committee

Mr Bruce Havilah Director Qualifications Legal: SAB (Dip Law at Sydney Uni & Uni of WA) Admitted to Supreme Court WA (1995), Bar in NSW (1995) and High Court of Australia (1995)

Experience and expertise Principal, Havilah Legal (1997 to present) President of Swimming WA 2003 to 2005 Commercial & Litigation Lawyer Work in area of NFP’s legal advice guiding NFP’s through steps to establish Good Governance

Frameworks and Policies (particularly fiduciary obligations) Ongoing pro-bono advice to State Swimming bodies re Member Welfare matters and other

Constitutional issues (including Member Welfare investigations) NSW state swimming finalist swimmer 1971 and 1972 Member Sans Souci Swimming Club NSW 1967-1978 Member various swimming clubs in WA 2001 - present

Special responsibilities Member Audit, Risk & Integrity Committee

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Mr Graeme Johnson Director

Qualifications B Comm, M App Fin, FCA Experience and expertise Chief Financial Officer and Chief Operating Officer, Clayton Utz (2012 to present) Chief Financial Officer, Oaks Hotels and Resorts Limited (2009 to 2011) Chief Financial Officer, Macquarie Airports (2007 to 2008) Divisional Chief Financial Officer, Westpac (1995 to 2006) - BT Financial Group; Australian

Business and Consumer Banking; Westpac New Zealand Manager, KPMG Australia (1987 to 1995) Former President, Kawana Waters Swimming Club Former President, Northern Suburbs Swimming Association Former Director and Treasurer, The Humpty Dumpty Foundation Special responsibilities Chairman Swimming Australia Foundation Member, High Performance Committee

Ms Nicole Livingstone OAM Director

Experience and expertise Head of Women’s Football, AFL - current Television host and sports broadcaster 1993 to current Triple Olympic Swimmer - 1988, 1992, 1996 Olympic Games Olympic Silver & Dual Olympic Bronze Medalist Member of the Australian Swimming Team 1985 to 1996 Executive Board Member Australian Olympic Committee 2013 to 2017 Life Member Swimming Victoria, Melbourne Vicentre and Cheltenham Swimming Clubs Board member VicHealth (Victorian Health Promotion) 2011 to 2017 Member of the AOC Athlete’s commission 1992 to 2000 Co-Founder and Patron Ovarian Cancer Australia Medal of the Order of Australia 1997; Australian Sports Medal, 2000; Victorian Women’s

Honour Roll, 2006 International Olympic Committee (OBS) Television Commentator, 2012 Olympic Games, 2016

Olympic Games

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Mrs Tracy Stockwell OAM Director

Qualifications BJrnl, University of Florida, 1985 Experience and expertise Director, Stockwell, 1995 to current Director, Stockwell Foundation, 2000 to current Dual Olympic Swimmer - 1980, 1984 Triple Olympic Gold Medalist - 1984 Five-time World Champion Gold Medalist – 1978 Five World and 63 American Records United States Congressional Medal of Honour Member of United States National Team 1977 to 1984 Director, Queensland Academy of Sport – 2000 to 2012 (Chair 2007 to 2012) Founding Member and Board Member of Womensport Queensland Association (1993 to 2007) Director, Queensland Events Corporation (1999 to 2008) Executive Officer, Queensland Academy of Sport, 1992 to 1995

Special responsibilities Chair of the High Performance Committee Chair of the Technical Swimming Committee

Mr Andrew Baildon Director Qualifications Bachelor of Business, Communication (Marketing), Bond University, 1989 - 1995 (Foundation Student) Experience and expertise Managing Director, Baildon Group (encompassing 3 Superfish Swim Schools and 3 Jetts 24x7

Gyms) Developer, trainer and campaigner of Learn To Swim and Drowning Prevention programs,1996 -

current Queensland State Government’s Legacy for the Gold Coast Commonwealth Games Committee

Member (2018 - current) Australian Sports Foundation Board Member, 2018 (current) Board Member ASCTA, 2018 Awarded the Keys to The City of Brisbane with the Australian Commonwealth Games Team,

2018 Member of the Gold Coast 2018 Commonwealth Games bid team Member of the Goldoc Sport and Technical committee Chairman of the Goldoc Athletes Advisory Committee 2018 Gold Coast Commonwealth Games Australian Team Attache Commentator 2000 Olympic trials (Fox) and 2000 Olympic Games (Channel 7) Australian Sports Medal Recipient for ‘Service to Sport’, 2000 Double Olympic Swimmer – 1988 and 1992 Olympic Games

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Information on directors (continued) Mr Andrew Baildon Director Experience and expertise (continued) Commonwealth Games Medalist – Gold and Bronze 1994 (Victoria, Canada), and 4 x Gold and 1 x

Bronze 1990 (Auckland, New Zealand) Australian Swim Team member 1987 – 1995; Team Captain 1993, 1994

Mr Kieren Perkins OAM Director

Experience and expertise Executive, Personal Direct, Personal Bank NAB Triple Olympic Swimmer – 1992, 1996, 2000 Dual Olympic Gold and Silver medalist Post his athletic career Kieren was a Director of Performance Global Pty Ltd and former Partner

of RogenSi, a global consulting and training company Formerly served as a director of The Australian Sports Commission, the ANZCA Foundation, NFP

Online, and Starlight Children’s Foundation Board member of the Sport Australia Hall of Fame Awarded the Order of Australia Medal in 1992 for services to sport Young Australian of the Year, 1993 Honorary Doctor of Philosophy by Queensland University, 2001.

Company secretary The group secretary is Mr Tim Dempster, CPA.

Insurance of officers During the financial year, Swimming Australia Limited and controlled entities paid a premium of $22,839 (2019: $20,485) to insure the directors and secretary of the group. The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity as officers of the group, and any other payments arising from liabilities incurred by the officers in connection with such proceedings. This does not include such liabilities that arise from conduct involving a willful breach of duty by the officers or the improper use by the officers of their position or of information to gain advantage for themselves or someone else or to cause detriment to the group. It is not possible to apportion the premium between amounts relating to the insurance against legal costs and those relating to other liabilities.

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Meetings of directors The number of meetings of the Swimming Australia Limited board of directors held during the year ended 30 June 2020, and the numbers of meetings attended by each director were: Meetings of directors Attended Held Mr John Bertrand AO 9 9 Mr Daniel Burger 2 2 Ms Abi Cleland 9 9 Mr Bruce Havilah 8 9 Mr Graeme Johnson 9 9 Ms Nicole Livingstone OAM 8 9 Mrs Tracy Stockwell 9 9 Mr Andrew Baildon 9 9 Mr Kieren Perkins 9 9

Proceedings on behalf of the company No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the group, or to intervene in any proceedings to which the group is a party, for the purpose of taking responsibility on behalf of the group for all or part of those proceedings. No proceedings have been brought or intervened in on behalf of the group with leave of the Court under section 237 of the Corporations Act 2001.

Auditor's independence declaration A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 13.

Auditor PricewaterhouseCoopers continues in office in accordance with section 327 of the Corporations Act 2001. This report is made in accordance with a resolution of directors.

Mr John Bertrand AO Director

Melbourne 22 September 2020

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30 June 2020

Auditor’s Independence Declaration

As lead auditor for the audit of Swimming Australia Limited for the year ended 30 June 2020, I declare that to the best of my knowledge and belief, there have been:

1. no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

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

This declaration is in respect of Swimming Australia Limited and the entities it controlled during the period.

Katherine Ransom Melbourne

Partner 22 September 2020 PricewaterhouseCoopers

PricewaterhouseCoopers, ABN 52 780 433 757 2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, Melbourne VIC 3001 T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

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Swimming Australia Limited and controlled entities Financial Statements

30 June 2020

Contents

Page

Financial statements

Consolidated statement of profit or loss and other comprehensive income 15

Consolidated balance sheet 16

Consolidated statement of changes in equity 17

Consolidated statement of cash flows 18

Notes to the consolidated financial statements 19

Directors' declaration 44

Independent auditor's report to the members 45

These financial statements are the consolidated financial statements of the consolidated entity consisting of Swimming Australia Limited and its controlled entities. The financial statements are presented in the Australian currency. The group consists of Swimming Australia Limited – a company limited by guarantee, the Swimming Australia Foundation Limited, The Swimming Foundation and Swimming Australia Property Trust.

Its registered office and principal place of business is: Swimming Australia Limited Level 2 50 – 56 York Street South Melbourne, VIC 3205

A description of the nature of the consolidated entity's operations and its principal activities is included in the directors' report on page 1, which is not part of these financial statements. The financial statements were authorised for issue by the directors on 21 September 2020. The directors have the power to amend and reissue the financial statements.

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

15

Swimming Australia Limited and controlled entities Consolidated statement of profit or loss and other comprehensive income

For the year ended 30 June 2020

Consolidated entity Parent entity

Notes 2020

$

2019

$

2020

$

2019

$

Revenue 4 21,224,401 27,210,111 21,224,401 27,210,111

Other income 5 2,610,607 1,812,370 2,409,292 1,499,586

Total revenue 23,835,008 29,022,481 693,633,23 28,709,697

Expenses

Employee expenses 8,988,673 9,861,677 8,988,673 9,861,677

Depreciation expenses 559,795 255,886 559,795 255,886

Other expenses 878,996 1,720,251 701,193 1,673,632

Travel expenses 3,384,405 3,806,194 3,384,405 3,806,194

Swimmers/Coaches/Sport Science

expenses 3,568,369 2,593,482 3,568,369 2,593,482

Information Technology expenses 484,378 844,871 484,378 844,871

Outfitting expenses 362,520 525,622 362,520 525,622

Events expenses 558,218 1,548,614 558,218 1,548,614

Marketing/Media expenses 783,015 1,225,559 783,015 1,225,559

Commissions expenses - 250,000 - 250,000

Grants 1,577,741 2,447,642 1,577,741 2,447,642

External services 2,241,108 2,934,914 2,241,106 2,875,044

Impairment loss - - 539,346 -

Realised losses - 122,208 - -

Unrealised losses 547,223 28,385 - -

Total expenses 6 414,934,32 28,165,305 759,874,32 27,908,223

Surplus/(Deficit) for the year (99,433) 857,176 )066(115, 801,474

Other comprehensive income

Other comprehensive income - - - -

Total comprehensive income for the year

is attributable to the Members of

Swimming Australia Limited (99,433) 857,176 )066(115, 801,474

The above consolidated balance sheet should be read in conjunction with the accompanying notes.

16

Swimming Australia Limited and controlled entities Consolidated balance sheet

As at 30 June 2020 Consolidated entity Parent entity

Notes 2020

$ 2019

$ 2020

$ 2019

$

ASSETS

Current assets

Cash and cash equivalents 7 12,222,652 11,055,100 10,140,981 8,699,754

Receivables 8 1,056,895 3,639,042 2,253,695 4,052,042

Inventories 809,522 574,966 809,522 574,966

Other current assets 9 798,805 953,842 755,532 953,434

Total current assets 14,887,874 16,222,950 13,959,730 14,280,196

Non-current assets

Financial assets 10 9,828,274 9,756,057 - -

Property, plant and equipment 11 385,334 550,805 385,334 550,805

Leases 12 543,065 - 543,065 -

Intangibles 13 634,981 - 634,981 -

Investments 11 - - 11,690,754 11,690,754

14 - - 11,151,408 11,690,754

Total non-current assets 11,391,654 10,306,862 12,714,788 12,241,559

Total assets 26,279,528 26,529,812 26,674,518 26,521,755

LIABILITIES

Current liabilities

Trade and other payables 15 1,209,017 1,719,913 1,267,400 1,703,616

Employee entitlements 16 854,835 906,150 854,835 906,150

Income in advance 17 5,725,488 5,967,687 6,150,488 5,967,687

Lease liabilities 12 210,313 - 210,313 -

Total current liabilities 653,800,8 8,593,750 603,8348, 8,577,453

Non-current liabilities

Employee entitlements 16 221,898 161,686 221,898 161,686

Lease liabilities 12 520,936 - 520,936 -

Total non-current liabilities 742,834 161,686 742,834 161,686

Total liabilities 748,823,8 8,755,436 087,2529, 8,739,139

Net assets 17,456,041 17,774,376 17,448,648 17,782,616

EQUITY

Retained earnings 17,456,041 17,774,376 17,448,648 17,782,616

Total equity 17,456,041 17,774,376 17,448,648 17,782,616

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

17

Swimming Australia Limited and controlled entities Consolidated statement of changes in equity


Consolidated entity Retained earnings $

Total equity

$

Balance at 1 July 2018 16,917,200 16,917,200

Surplus for the year 857,176 857,176

Balance at 30 June 2019 17,774,376 17,774,376

Adjustment on adoption of AASB16 (2.2) (218,902) (218,902)

Amended Balance at 1 July 2019 17,555,474 17,555,474

Deficit for the year (99,433) (99,433)

Balance at 30 June 2020 7,456,0411 7,456,0411

Parent entity

Retained earnings

$

Total equity

$

Balance at 1 July 2018 16,981,142 16,981,142

Surplus for the year 801,474 801,474

Balance at 30 June 2019 82,61617,7 616,78217,

Adjustment on adoption of AASB16 (2.2) (218,902) (218,902)

Amended Balance at 1 July 2019 17,563,714 17,563,714

Deficit for the year (115,066) (115,066)

Balance at 30 June 2020 17,448,648 17,448,648

18

Swimming Australia Limited and controlled entities Consolidated statement of cash flows



Notes 2020

$ 2019

$ 2020

$ 2019

$

Cash flows from operating

activities

Receipts from customers (inc GST) 25,548,758 33,441,205 25,117,703 33,151,011 Payments to suppliers and employees (inc GST) (23,317,813) (31,101,675) (23,209,877) (30,459,644) Interest received 42,067 81,325 24,823 24,963 Interest paid (23,414) - (23,414) -

Net cash inflows from operating

activities 2,249,598 2,420,855 1,909,235 2,716,330

Cash flows from investing

activities

Payments for property, plant and equipment 11 (52,372) (144,875) (52,372) (144,875) Proceeds from the sale of property, plant and equipment - 4,047 - 4,047 Proceeds from the sale of investments 306,000 1,066,338 - - Payments for investments (920,038) (866,003) - -

Net cash inflow/(outflow) from

investing activities (666,410) 59,507 (52,372) (140,828)

Cash flows from financing

activities

Advance to Swimming WA (200,000) - (200,000) -

Advance to Swimmer Support Scheme - (2,000) - (2,000)

Repayment from Swimmer Support Scheme 2,000 2,194,637 2,000 2,194,637

Payments made to leases (principal repayments) (221,228) - (221,228) -

Net cash inflow/(outflow) from

financing activities (419,228) 2,192,637 (419,228) 2,192,637

Net increase/(decrease) in cash

and cash equivalents 1,163,960 4,762,999 1,437,635 4,768,139

Cash and cash equivalents at the beginning of the financial year 11,055,100 6,368,553 8,699,754 3,918,067

Effects of exchange rate changes on cash and cash equivalents 3,592 13,548 3,592 13,548

Cash and cash equivalents at end

of year 7 12,222,652 11,055,100 10,140,981 8,699,754

19

Swimming Australia Limited and controlled entities

Notes to the consolidated financial statements 30 June 2020

Contents of the notes to the consolidated financial statements

Page 1 Adoption of new and revised Accounting Standards 20

2 Summary of significant accounting policies 22

3 Critical accounting estimates and judgements 31

4 Revenue 32

5 Other income 32

6 Expenses 32

7 Cash and cash equivalents 33

8 Receivables 33

9 Other current assets 34

10 Financial assets 34

11 Property, plant and equipment 35

12 Leases 37

13 Intangibles 38

14 Investments 38

15 Trade and other payables 39

16 Employee entitlements 39

17 Income in advance 40

18 Remuneration of Auditors 40

19 Key management personnel disclosures 40

20 Contingencies 40

21 Commitments 41

22 Related party transactions 41

23 Members’ guarantee 41

24 Events occurring after balance date 41

25 Financial risk management 42

20

Swimming Australia Limited and controlled entities Notes to the consolidated financial statements


1 Adoption of new and revised Accounting Standards The Swimming Australia Limited group has applied the following standards and amendments for the first time for their annual reporting period commencing 1 July 2019:

• AASB 1058 Income for Not-for-Profit Entities • AASB 15 Revenue for Contracts with customers • AASB 16 Leases

The company had to change its accounting policies as a result of adopting these new standards. The company elected to adopt the new rules retrospectively but recognised the cumulative effect of initially applying the new standards on 1 July 2019.

Any new or amended Accounting Standards or interpretations that are not yet mandatory have not been early adopted.

1.1 AASB 1058 Income of Not-for-Profit Entities & AASB 15 Revenue from Contracts with Customers

In the current year, the group has applied AASB1058 Income of Non-Profit Entities and AASB 15 Revenue from Contracts with Customers which are effective for an annual period that begins on or after 1 July 2019.

The group has applied AASB 1058 and AASB 15 in accordance with the modified retrospective (cumulative catchup) method where the comparative figures are not restated. Instead, the company has recognised the cumulative effect of initially applying AASB 1058 and AASB 15 for the first time for the year ended 30 June 2020 against retained earnings as at 1 July 2019. The company has also elected to apply AASB 1058 and AASB 15 retrospectively only to contracts and transactions that are not ‘completed transactions’ as at 1 July 2019.

AASB 1058 clarifies and simplifies the income recognition requirements that apply to not-for-profit (NFP) entities, in conjunction with AASB 15. The new income recognition requirements shift the focus from a reciprocal/non-reciprocal focus to a basis of assessment that considers the enforceability of a contract and the specificity of performance obligations.

The core principle of the new income recognition requirements in AASB 1058 is when a NFP entity enters into transactions where the consideration to acquire an asset is significantly less than the fair value of the asset principally to enable the entity to further its objectives, the excess of the asset recognised (at fair value) over any ‘related amounts’ is recognised as income immediately.

An example of a ‘related amount’ is AASB 15 and in cases where there is an ‘enforceable’ contract with a customer with ‘specifically specific’ performance obligations, income is recognised when (or as) performance obligations are satisfied under AASB 15, as opposed to immediate income recognition under AASB 1058.

Under AASB 15, an entity recognises revenue when (or as) a performance obligation is satisfied, i.e. when ‘control’ of the goods or services underlying the particular performance obligation is transferred to the customer. ASSB 15 introduces a 5-step approach to revenue recognition, which is more prescriptive than AASB 118.

• Step 1: Identify the contract(s) with a customer. • Step 2: Identify the performance obligations in the contract. • Step 3: Determine the transaction price. • Step 4: Allocate the transaction price to the performance obligations in the contract. • Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation.

The adoption of AASB 15 and 1058 did not have a significant impact on the financial performance or position for the Swimming Australia Limited group for either the current or prior period. Therefore, there was no impact to the amounts recognised in the balance sheet at the date of initial application (1 July 2019).

The revised accounting policy in relation to the adoption of this standard as applied from 1 July 2019 are set out in Note 2(c).

21



1 Adoption of new and revised Accounting Standards (continued)

1.2 AASB 16 Leases

The company had to change its accounting policies as a result of adopting AASB 16. The company elected to adopt the new rules retrospectively but recognised the cumulative effect of initially applying the new standard on 1 July 2019. This is disclosed below. This note explains the impact of the adoption of AASB 16 Leases on the company’s financial statements. The company has adopted AASB 16 Leases retrospectively from 1 July 2019, but has not restated comparatives for the 2018 reporting year, as permitted under the specific transition provisions in the standard. The reclassifications and the adjustments arising from the new leasing rules are therefore recognised in the opening balance sheet on 1 July 2019. The new accounting policies are disclosed in Note 2(s). On adoption of AASB 16, the company recognised lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of AASB 117 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of 1 July 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on 1 July 2019 was 2.88%. The net impact on retained earnings on 1 July 2019 was a decrease of $218,902. (i) Practical expedients applied In applying AASB 16 for the first time, the company has used the following practical expedients permitted by the standard:

• applying a single discount rate to a portfolio of leases with reasonably similar characteristics;

• relying on previous assessments on whether leases are onerous as an alternative to performing an impairment review - there were no onerous contracts as at 1 July 2019;

• accounting for operating leases with a remaining lease term of less than 12 months as at 1 July 2019 as short-term leases;

• excluding initial direct costs for the measurement of the right-of-use asset at the date of initial application; and

• using hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

The company has also elected not to reassess whether a contract is, or contains a lease at the date of initial application. Instead, for contracts entered into before the transition date the company relied on its assessment made applying AASB 117 and Interpretation 4 Determining whether an Arrangement contains a Lease.

22



1 Adoption of new and revised Accounting Standards (continued)

1.2 AASB 16 Leases (continued)

(ii) Measurement of lease liabilities $ Operating lease commitments disclosed as at 30 June 2019 996,519

Discounted using the lessee’s incremental borrowing rate at the date of initial application 923,445

Add: Adjustments relating to changes in the rate affecting variable payments 5,619

Lease liability recognised as at 1 July 2019 $929,064

Of which are:

Current lease liabilities $197,815

Non-current lease liabilities $731,249

2 Summary of significant accounting policies The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial statements are for the consolidated entity consisting of Swimming Australia Limited and controlled entities.

(a) Basis of preparation

These general purpose financial statements have been prepared in accordance with applicable Australian Accounting Standards and interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001. Swimming Australia Limited and controlled entities is a not-for-profit entity for the purpose of preparing the financial statements. (i) Compliance with Australian Accounting Standards - Reduced Disclosure Requirements The consolidated financial statements of the Swimming Australia Limited and controlled entities group comply with Australian Accounting Standards - Reduced Disclosure Requirements as issued by the AASB.

23



2 Summary of significant accounting policies (continued)

(a) Basis of preparation (continued)

(ii) Historical cost convention

These financial statements have been prepared under the historical cost basis, except for available-for-sale financial assets and certain classes of property, plant and equipment, which are measured at fair value.

Some of the amounts reported for the previous period have been restated to enhance comparability between the current and previous period.

(iii) Reclassification of Financial Information Where necessary, comparative information has been reclassified to achieve consistency in disclosure with current financial year amounts and other disclosures. The impact of these classifications is not material, and has not resulted in any change to surplus/(deficit) or net assets.

(b) Principles of consolidation

Subsidiaries The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Swimming Australia Limited ('parent entity') as at 30 June 2020 and the results of all subsidiaries for the year then ended. Swimming Australia Limited and controlled entities together are referred to in this financial report as the group. Subsidiaries are all entities (including special purpose entities) over which the group has the power to govern the financial and operating policies, generally accompanying a shareholding of more than one-half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the group controls another entity.

Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary two ensure consistency with the policies adopted by the group.

(c) Revenue recognition

Policy for the period up to 30 June 2019

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

(i) Grant revenue Income from grants is recognised when the group obtains control over the contribution. These grants are non-reciprocal in nature and are recognised at the fair value on the date of acquisition.

24




(c) Revenue recognition (continued) (ii) Sponsorship Sponsorship revenue is recognised on a straight-line basis over the sponsorship contract period, unless the sponsorship is payable on achieving specified milestones, in which case revenue is recognised on the completion of contracted milestones.

(iii) Event revenue Events revenue is recognised at the time the event is held. Prepaid event entry fees, event sponsorship and ticket sales are recognised as income in advance until the event occurs.

(iv) Affiliation fees Affiliation fees received from registered club swimmers and are recognised on a cash basis.

(v) Other income Other income is recognised when the right to receive the revenue occurs.

Policy for the period as of 1 July 2019

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates and amounts collected on behalf of third parties. The group recognises revenue when under AASB 15 if there is an enforceable contract which sufficiently specifies promises. If this is not the case, the revenue is recognized as income immediately (AASB 1058).

Revenue is recognised for the major business activities as follows:

(i) Grant revenue Income from grants is recognised when performance obligations are satisfied.

(ii) Sponsorship Sponsorship revenue is recognised when performance obligations are satisfied. In general on a straight-line basis over the sponsorship contract period, unless the sponsorship is payable on achieving specified milestones, in which case revenue is recognised on the completion of contracted milestones.

(iii) Event revenue Events revenue is recognised when performance obligations are satisfied (at the time the event is held). Prepaid event entry fees, event sponsorship and ticket sales are recognised as income in advance until the event occurs.

(iv) Affiliation fees Affiliation fees received from registered club swimmers and are recognised on a cash basis.

(v) Other income The recognition of other income depends on the substance of the transaction. If there is performance obligations, income is recognized when performance obligations are satisfied. Otherwise, income is recognised on a cash basis.

25




(d) Income tax No provision for income tax has been raised as all entities in the group are exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

(e) Cash and cash equivalents For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.

(f) Receivables

Trade receivables are recognised initially at fair value less provision for impairment. Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off by reducing the carrying amount directly. An allowance account (provision for impairment of trade receivables) is used when there is objective evidence that the group may not be able to collect all amounts due. If collection of the amounts outstanding is expected in one year or less they are classified as current assets. If not, they are presented as non-current assets. Trade receivables are generally due for settlement within 30 days and therefore are all classified as current.

When assessing impairment, the group considers whether significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation exist, and default or delinquency in payments (more than 90 days overdue). The amount of the impairment allowance is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial. The amount of the impairment loss is recognised in the statement of profit or loss and other comprehensive income within other expenses. When a trade receivable for which an impairment allowance had been recognised becomes uncollectible in a subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against other expenses in statement of profit or loss and other comprehensive income.

(g) Inventories Inventories consists mainly of racing suits and clothing for sale or distribution to high performance athletes. Inventories are measured at the lower of cost or net realisable value. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale.

(h) Investments and other financial assets

Classification The group has classified its financial assets as fair value through profit or loss if they are acquired principally for the purpose of selling in the short term, i.e. held for trading. They are presented as current assets if they are expected to be sold within 12 months after the end of the reporting period; otherwise they are presented as non-current assets.

26



2 Summary of significant accounting policies (continued) (h) Investments and other financial assets (continued) Changes in fair values of financial assets at fair value through profit and loss are recorded in Note 4 Other income. Recognition and derecognition Financial assets are recognised on trade-date, the date on which the group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the group has transferred substantially all the risks and rewards of ownership.

Measurement Financial assets are subsequently carried at fair value with movements recognised through the profit or loss. Gains or losses arising from changes in the fair value are recognised as follows:

for financial assets at fair value through profit or loss – in profit or loss within other income or other expenses

for available-for-sale financial assets that are monetary securities denominated in a foreign currency – translation differences related to changes in the amortised cost of the security are recognised in profit or loss and other changes in the carrying amount are recognised in other comprehensive income

for other monetary and non-monetary securities classified as available-for-sale – in other comprehensive income.

Dividend income from financial assets at fair value through profit or loss is recognised in profit or loss as part of revenue from continuing operations when the Group's right to receive payments is established. Interest income from these financial assets is included in the net gains/(losses).

(i) Property, plant and equipment Property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Cost may also include transfers from equity of any gains or losses on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

27




(i) Property, plant and equipment (continued) Depreciation is calculated using the straight-line method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives. The depreciation rates used for each class of depreciable assets are: 2020 2019 - Furniture and fittings 2% - 33.33% 2% - 33.33% - Computer equipment 5% - 33.3% 5% - 33.3% - Software 10% - 33.3% 10% - 33.3%

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

An asset's 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 carrying amount. These are included in profit or loss. When revalued assets are sold, it is group policy to transfer any amounts included in other reserves in respect of those assets to retained earnings.

(j) Impairment of assets

Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value-in-use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units).

(k) Trade and other payables These amounts represent liabilities for goods and services provided to the group prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months from the reporting date. They are recognised initially at their fair value.

28




(l) Provisions Provisions for legal claims and make good obligations are recognised when the group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

(m) Employee entitlements

(i) Short-term obligations Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months after the end of the period in which the employees render the related service are recognised in respect of employee's services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liability for annual leave and accumulating sick leave is recognised in the provision for employee benefits. All other short-term employee benefit obligations are presented as payables.

(ii) Other long-term employee benefits obligations The liability for long service leave which is not expected to be settled within 12 months after the end of the period in which the employees render the related service is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the end of the reporting period on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

(n) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the consolidated balance sheet. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.

(o) Foreign currency transactions and balances Foreign currency transactions during the year are converted to Australian currency at the rates of exchange at the end of the financial year. Assets and liabilities held in foreign currency are converted to Australian currency at the year-end exchange rate. Gains and losses due to for foreign currency conversion are recognised through the profit and loss statement.

29




(p) Commitments Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed by way of a note (refer to Note 21 Commitments) at their nominal value.

(q) Contingencies Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note and, if quantifiable, are measured at nominal value.

(r) Intangible assets

Costs associated with maintaining software programs and apps are recognised as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products and apps controlled by the company are recognised as intangible assets where the following criteria are met:

• it is technically feasible to complete the software/app so that it will be available for use;

• management intends to complete the software/app and use or sell it;

• there is an ability to use or sell the software/app;

• it can be demonstrated how the software/app will generate probable future economic benefits;

• adequate technical, financial, and other resources to complete the development and to use or sell the software/app are available; and the expenditure attributable to the software during its development can be reliably measured.

Directly attributable costs that are capitalised as part of the software/app include employee costs and an appropriate portion of relevant overheads.

Capitalised development costs are recorded as intangible assets and amortised from the point at which the asset is ready for use.

The company amortises intangible assets with a limited useful life using the straight-line method over the following periods:

2020 2019 - App 20% - - Software 33.3% -

30



2 Summary of significant accounting policies (continued) (s) Leases

Policy applicable before 1 July 2019

Until 30 June 2019, leases in which a significant portion of the risks and rewards of ownership were not transferred to the company as lessees were classified as operating leases. Payments made under operating leases (not of any incentives received from the lessor) were charged to profit or loss on a straight-line basis over the period of the lease.

Policy applicable from 1 July 2019

At inception of a contract, the company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset, for a period of time, in exchange for consideration.

As a lessee

The company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability, adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to restore the underlying asset, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method over the shorter of the lease term and the estimated useful lives of the asset. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the company's incremental borrowing rate.

Lease payments included in the measurement of the lease liability comprise the following:

• fixed payments, including in-substance fixed payments; • variable lease payments that depend on an index or a rate, initially measured using the

index or rate as at the commencement date; • amounts expected to be payable under a residual value guarantee; and • the exercise price under a purchase option that the company is reasonably certain to

exercise, lease payments in an optional renewal period if the company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the company is reasonably certain not to terminate early.

The lease liability is measured at amortised cost using the effective interest method. It is re-measured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the company's estimate of the amount expected to be payable under a residual value guarantee, or if the company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is re-measured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

31



2 Summary of significant accounting policies (continued) (s) Leases (continued)

Short-term leases and leases of low-value assets

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of 12 months or less and leases of low-value assets. The company recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

3 Critical accounting estimates and judgements Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.

(a) Critical accounting estimates and assumptions

(i) Estimated impairment The group assesses impairment at each reporting date by evaluating conditions and events specific to the consolidated entity that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Fair value less costs to sell or current replacement cost calculations performed in assessing recoverable amounts incorporate a number of key estimates. (ii) Employee entitlements The group carries its liability for employee entitlements at discounted values and consideration of the probability of reaching an entitlement threshold. Management critically review the entitlements at the end of each reporting period and adjust, where necessary the present value discount factors when calculating the entitlements.

32



4 Revenue Consolidated entity Parent entity

2020

$ 2019

$ 2020

$ 2019

$ Australian Sports Commission grants 13,368,715 13,379,956 13,368,715 13,379,956 Corporate sponsorship 5,859,797 10,354,638 5,859,797 10,354,638 Australian Olympic Committee - 3,000 - 3,000 Commonwealth Games Australia 362,000 81,400 362,000 81,400 Affiliation fees 1,042,593 1,198,863 1,042,593 1,198,863 Australian Paralympic Committee grants 78,078 80,000 78,078 80,000 Event related revenue 147,335 1,801,109 147,335 1,801,109 Other grants 365,883 311,145 365,883 311,145

21,224,401 27,210,111 21,224,041 27,210,111

5 Other income Consolidated entity Parent entity

2020

$ 2019

$ 2020

$ 2019

$ Grants from The Swimming Foundation - - 250,000 413,000 Interest received 42,841 81,324 24,823 24,963 Recoveries 395,694 420,410 395,694 420,410 Foreign exchange gain 10,502 13,548 10,502 13,548 Other program income 1,730,829 626,113 1,728,273 626,113 Gain on sale of asset - 1,552 - 1,552 Investment returns - Dividends, distributions and realised gains 430,741 513,727 - - Unrealised gains - 155,696 - -

Total investment returns 430,741 669,423 - -

2,610,607 1,812,370 2,409,292 1,499,586

6 Expenses by function Consolidated entity Parent entity

2020

$ 2019

$ 2020

$ 2019

$ High Performance 12,951,422 13,025,733 13,077,094 13,025,733 Sport, Sustainability and Growth 3,375,202 3,045,551 3,375,202 3,045,551 Events 1,318,014 2,847,032 1,318,014 2,847,032 Commercial Operations 1,936,524 4,436,700 1,937,094 4,436,700 Information Technology 1,009,753 1,389,353 1,009,752 1,389,353 Executive, Finance and Human Resources 2,492,256 3,163,854 3,031,603 3,163,854 Unrealised losses 547,223 28,385 - - Realised losses - 122,208 - - Management fees 64,479 57,416 - - Other 239,568 49,072 - -

23,934,441 28,165,304 23,748,759 27,908,223

33



7

7 Cash and cash equivalents For the purposes of the statement of cash flows, cash and cash equivalents includes cash on hand and in banks and investments, net of outstanding bank overdrafts. Cash at bank earns interest at floating rates based on daily deposit rates. Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the group, and earn interest at the respective short-term deposit rates. Cash and cash equivalents at the end of the year are shown in the statement of cash flows can be reconciled to the related items in the statement of financial position as follows:


2020

$ 2019

$ 2020

$ 2019

$ Cash at bank 12,218,972 11,050,373 10,137,411 8,695,127 Cash on hand 3,680 4,727 3,570 4,627

12,222,652 11,055,100 10,140,981 8,699,754

8

Receivables


2020

$ 2019

$ 2020

$ 2019

$ Trade receivables 886,874 3,509,752 1,883,674 3,922,752 Hancock Prospecting Swimmer Support Scheme - 2,000 - 2,000 Other receivables 170,021 127,290 370,021 127,290

1,056,895 3,639,042 2,253,695 4,052,042

As at 30 June 2020, Other receivables in the Parent entity includes $200,000 relating to a loan made to Western Australian Swimming Association Inc. in May 2020, with repayment of all funds owing due in full on 15 May 2022. This $200,000 loan is underwritten by commitment from the Swimming Australia Property Trust.

Individual receivables which are known to be uncollectible are written off by reducing the carrying amount directly. The other receivables are assessed collectively to determine whether there is objective evidence that an impairment has been incurred but not yet identified. For these receivables the estimated impairment losses are recognised in a separate provision for impairment. The company considers that there is evidence of impairment if any of the following indicators are present:

significant financial difficulties of the debtor probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 60 days overdue).

Receivables for which an impairment provision was recognised are written off against the provision when there is no expectation of recovering additional cash.

Impairment losses are recognised in profit or loss within other expenses. Subsequent recoveries of amounts previously written off are credited against other expenses. No expected credit loss was identified but there was a specific provision for impairment in the amount of $275,000 recognised.

34



8

9

Other current assets Consolidated entity Parent entity

2020

$ 2019

$ 2020

$ 2019

$ Prepayments 531,671 637,090 489,172 637,090 Accrued income 267,134 316,752 266,360 316,344

798,805 953,842 755,532 953,434

10 Financial assets Consolidated entity 2020 2019

Current

$ Non-current

$ Current

$ Non-current

$ Fair value through profit and loss - 9,828,274 - 9,756,057

All fair value through profit and loss financial assets have been classified as non-current in 2020 to reflect management's intention to hold them for the medium to long term. These financial assets of The Swimming Foundation are presented as non-current assets unless they mature, or management intends to dispose of them within 12 months of the end of the reporting period. There is no fair value through profit and loss financial assets in the parent entity.

35



11 Property, plant and equipment

Consolidated entity Furniture and equipment

$

Computer equipment

$ Software

$

Works in progress

$ Total

$ Year ended 30 June 2019 Opening net book amount 445,782 64,193 149,093 5,242 664,310 Additions 21,861 123,015 - - 144,876 Transfers - 5,242 - (5,242) - Disposals - (2,495) - - (2,495) Depreciation charge (106,771) (68,820) (80,295) - (255,886) Closing net book amount 360,872 121,135 68,798 - 550,805

At 30 June 2019

Cost 1,288,272 382,192 522,708 - 2,193,172 Accumulated depreciation (927,400) (261,057) (453,910) - (1,642,367) Net book amount 360,872 121,135 68,798 - 550,805 Year ended 30 June 2020 Opening net book amount 360,872 121,135 68,798 - 550,805 Additions 9,043 43,329 - - 52,372 Depreciation charge (100,536) (67,237) (50,070) - (217,843)

Closing net book amount 269,379 97,226 18,728 - 385,334

At 30 June 2020

Cost 1,288,272 382,192 522,708 - 2,193,172 Accumulated depreciation (1,018,893) (284,966) (503,980) - (1,807,839)

Net book amount 269,379 97,226 18,728 - 385,334

36



11 Property, plant and equipment (continued)

Parent entity Furniture and equipment

$

Computer equipment

$ Software

$

Works in progress

$ Total

$ Year ended 30 June 2019 Opening net book amount 445,782 64,193 149,093 5,242 664,310 Additions 21,861 123,015 - - 144,876 Transfers - 5,242 - (5,242) - Disposals - (2,495) - - (2,495) Depreciation charge (106,771) (68,820) (80,295) - (255,886) Closing net book amount 445,782 121,135 68,798 5,242 550,805

At 30 June 2019

Cost 1,288,272 382,192 522,708 - 2,193,172 Accumulated depreciation (927,400) (261,057) (453,910) - (1,642,367) Net book amount 360,872 121,135 68,798 - 550,805 Year ended 30 June 2020 Opening net book amount 360,872 121,135 68,798 - 550,805 Additions 9,043 43,329 - - 52,372 Depreciation charge (100,537) (67,237) (50,070) - (217,843)

Closing net book amount 269,379 97,226 18,728 - 385,334

At 30 June 2020 Cost 1,288,272 382,192 522,708 - 2,193,172 Accumulated depreciation (1,018,893) (284,966) (503,980) - (1,807,839) Net book amount 269,379 97,226 18,728 - 385,334

37



2 12 Leases This note provides information for leases where the company is a lessee. Amounts recognised in balance sheet.

30 June

2020 1 July 2019

$ $

Right of use assets

Leased office space – Melbourne office

543,065

710,162

543,065 710,162

Additions to the right of use asset during the 2020 financial year were $0.

30 June

2020 1 July 2019

$ $

Lease liabilities

Current 210,313

197,815

Non-current 520,936 731,249

731,249 929,064

Amounts recognised in profit or loss 2020

$

Depreciation charges right of use assets 167,097

Interest on lease liabilities 23,414

Amounts recognised in the statement of cash flows

Total cash outflow for lease liability repayments and interest paid in 2020 was $221,228.

38



13 Intangibles

Consolidated & Parent entities

Software $

App $

Total $

Year ended 30 June 2020 Opening net book amount - - - Additions 713,176 96,660 809,736 Amortisation charge (142,635) (32,220) (174,855) Closing net book amount 570,541 64,440 634,981

At 30 June 2020 Cost 713,176 96,660 809,736 Accumulated amortisation (142,635) (142,635) (174,855) Net book amount 570,541 64,440 634,981

14 Investments Consolidated entity Parent entity

2020

$ 2019

$ 2020

$ 2019

$ Investment in The Swimming Foundation^ - - 9,099,269 9,638,615 Investment in Swimming Australia Property Trust - - 2,052,139 2,052,139 - - 11,151,408 11,690,754 ^ The value of the investment in the Swimming Foundation was written down by $539,346 to match the net assets of the Foundation.

Swimming Australia Limited has 100% control of both The Swimming Foundation Trust and the Swimming Australia Property Trust.

39



15 Trade and other payables Consolidated entity Parent entity

2020

$ 2019

$ 2020

$ 2019

$ Trade payables 498,263 478,853 498,263 469,002 Goods and services tax (GST) payable 357,285 326,860 357,285 330,266 Accruals 246,134 876,287 223,122 866,435 Other payables 188,335 37,913 188,730 37,913 1,290,017 1,719,913 1,267,400 1,703,616

16 Employee entitlements Consolidated entity Parent entity

2020

$ 2019

$ 2020

$ 2019

$ Current liabilities Annual leave 439,631 633,943 439,631 633,943 Long service leave 105,220 89,442 105,220 89,442 Accrued salaries and wages 309,984 182,765 309,984 182,765

854,835 906,150 854,835 906,150 Non-Current liabilities Long service leave 221,898 161,686 221,898 161,686 221,898 161,686 221,898 161,686

Total Employee Entitlements 1,076,733 1,067,836 1,076,733 1,067,836

The employee entitlement obligations cover the group’s liability for long service leave, annual leave and accrued salaries and wages. The current portion of this liability includes all of the accrued annual leave, the unconditional entitlements to long service leave where employees have completed the required period of service and also those where employees are entitled to pro-rate payments in certain circumstances. Accrued salaries and wages have also been classified as current liabilities.

The portion of current leave liabilities expected to be settled after 12 months are:

Parent Entity 2020 2019

Long service leave 105,220 89,442

Annual leave 35,172 145,401

Total 140,392 234,843

40



17 Income in advance Consolidated entity Parent entity

2020

$ 2019

$ 2020

$ 2019

$ Income in advance 5,725,488 5,967,687 6,150,488 5,967,687

18 Remuneration of Auditors Consolidated entity Parent entity

2020

$ 2019

$ 2020

$ 2019

$ Audit of the financial report 29,700 29,000 20,000 19,500 Assistance with the preparation of the new and revised Standards 3,500 - 3,500 - Total 33,200 29,000 23,500 19,500

19 Key management personnel disclosures

Key management personnel compensation

During the year, the group had 8 (2019:11) key management personnel (KMP); which included finalising of team restructures and positions. Total compensation to KMP are as follows:


2020

$ 2019

$ 2020

$ 2019

$ Short-term employee benefits 2,391,413 2,414,031 2,391,413 2,414,031 Post-employment benefits 146,488 166,558 146,488 166,558 Total remuneration due or receivable to KMP 2,537,901 2,580,589 2,537,901 2,580,589

20 Contingencies The group had no contingent assets or liabilities at 30 June 2020 (2019: nil).

41



21 Commitments Consolidated entity Parent entity

2020

$ 2019

$ 2020

$ 2019

$ Operating lease commitments Less than 1 year - 223,247 - 223,247 Longer than 1 year but less than 5 years - 773,272 - 773,272

Total - 996,519 - 996,519

No commitments in 2020 as AASB 16 has been applied for operating leases.

22 Related party transactions

(a) Transactions with other related parties

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other persons unless otherwise stated. A review of payments did not identify any payments to Director related companies.

23 Members' guarantee

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 $1.00 each towards meeting any outstanding obligations of the company. At 30 June 2020, the number of contributing members was 7 (2019: 7).

24 Events occurring after balance date The outbreak of COVID-19 and the subsequent containment measures imposed by the Australian and other state/territory governments, as well as the travel restrictions imposed by Australia and other countries in early 2020, have caused considerable disruption to business and economic activity. Accordingly, Swimming Australia Limited have considered the balance sheet and financial effects of COVID-19 with these initial impacts reflected in the financial statements as at 30 June 2020.

As the situation remains fluid and continues to escalate (due to the evolving and constant changes in government policy and evolving business and customer reactions thereto) as at the date the financial statements are authorised for issue, the directors of Swimming Australia Limited have duly considered the financial effects of COVID-19 on the financial report and reasonably estimated for future financial periods. However, the directors consider the general economic impacts arising from COVID-19 are expected to have a negative impact on revenue due to the potential further cancellation of events, corporate partner impacts, decreased membership capitation and refinement of programs also. Swimming Australia Limited is also reviewing all programs and expenditure and registering for government stimulus measures as applicable. The economic effects arising from the COVID-19 outbreak have the potential to materially affect the results of the entity for the full financial year ended 30 June 2021; and the financial years thereafter.

42



25 Financial risk management

This note explains the parent and consolidated entities exposure to financial risks and how these risks could affect the group’s future financial performance. Current year profit and loss information has been included where relevant to add further context. The consolidated entity’s financial instruments comprise: • cash and deposits; • term deposits; • receivables (excluding statutory receivables), • investments in equities; and • payables (excluding statutory payables).

The main financial risks include credit risk, liquidity risk, market risk comprising foreign currency risk and equity price risk.

(a) Credit Risk

Credit risk arises from the contractual financial assets, which comprise cash and cash equivalents, non-statutory receivables and available-for-sale contractual financial assets. The exposure to credit risk arises from the potential default of a counter party on their contractual obligations resulting in financial loss.

Provision of impairment for contractual financial assets is recognised when there is objective evidence that the debt will not be able to be collected. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days overdue.

Ageing of contractual receivables Consolidated Carrying amount 0-1 months 1-3 months Over 3 months 2020 886,874 330,543 286,052 270,279 2019 3,922,752 916,557 1,863,762 1,142,433

There are no material financial assets which are individually determined to be impaired.

(b) Liquidity risk

Liquidity risk is the risk that financial obligations would not be met as and when they fall due. Financial obligations are generally settled within the supplier’s due date. The maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the balance sheet. Liquidity risk is managed by:

• maintaining an adequate level of uncommitted funds that can be drawn at short notice to meet short-term obligations;

• holding cash, investments and other contractual financial assets that are readily tradeable in the financial markets; and

• careful maturity planning of financial obligations based on forecasts of future cash flows. The exposure to liquidity risk is deemed insignificant based on sufficient cash holdings and carefully planned budgets for the 2020-21 financial year. The following table discloses the contractual maturity analysis for financial liabilities. 2

Ageing of contractual payables Consolidated Carrying amount 0-1 month 1-3 months Over 3 months 2020 855,548 855,548 0 0 2019 1,215,201 1,070,959 101,416 42,826

43



25 Financial risk management (continued) (c) Market risk

The exposures to market risk are primarily through foreign currency risk, interest rate risk and equity price risks. Objectives, policies and processes are used to manage each of these risks and are detailed below.

Foreign currency risk

The consolidated entity is exposed to foreign currency risk mainly through overseas travel transactions and holdings of foreign currency in bank accounts. The exposure is minimal because of the relatively short timeframe between commitment and settlement.

The exposures are mainly against the US dollar (USD) and Euros (EUR). In prior financial years Swimming Australia Ltd purchased foreign currencies when the Australian Dollar was significantly favourable against the USD and EUR. In the current financial year Swimming Australia Ltd did not purchase foreign currencies, however received funds upon receipt of prize money which were later used to settle foreign purchases. Swimming Australia Ltd has no short-term plans to purchase further currencies other than for settlement of immediate invoices.

A gain on the exchange rate was recognised in the financial statements.

Interest rate risk

Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interest rates. Interest bearing financial instruments are measured at fair value, and therefore has no exposure to fair value interest rate risk.

Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Exposure to interest rate risk is minimised through holding cash and term deposits at floating rates.

The carrying amounts of financial assets that are exposed to interest rates are as set out in Note 7 to these financial statements.

Equity price risk

The exposure to equity price risk is through investments in listed and managed investment schemes. Such investments are allocated and traded to match the investment objectives appropriate to the Foundation. The Foundation has appointed the Escala Partners Ltd (Escala) to manage its investment portfolio in accordance with the investment objectives of the Foundation as approved by the Trustees. Escala on behalf of the Foundation closely monitors performance and manages the equity price risk through diversification of its investment portfolio.

44

Swimming Australia Limited and controlled entitiesDirectors' declaration

30 June 2020

In the directors' opinion:

(a) the financial statements and notes set out on pages 14 to 43 are in accordance with the Corporations Act 2001, including:

(i) complying with Accounting Standards - Reduced Disclosure Requirements, the Corporations Regulations 2001 and other mandatory professional reporting requirements, and

(ii) giving a true and fair view of the consolidated entity's financial position as at 30 June 2020 and of its performance for the year ended 30 June 2020, and

(b) there are reasonable grounds to believe that the group 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 directors.

Mr John Bertrand AODirector

Melbourne22 September 2020

PricewaterhouseCoopers, ABN 52 780 433 757 2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001 T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

Independent auditor’s report To the members of Swimming Australia Limited

Our opinion In our opinion:

The accompanying financial report of Swimming Australia Limited (the Company) and its controlled entities (together the Group) is in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the Group and Company’s financial position as at 30 June 2020 and of its financial performance for the year then ended

(b) complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Regulations 2001.

What we have audited The Group financial report comprises:

• the consolidated balance sheet as at 30 June 2020 • the consolidated statement of changes in equity for the year then ended • the consolidated statement of cash flows for the year then ended • the consolidated statement of profit or loss and other comprehensive income for the year then

ended • the notes to the consolidated financial statements, which include a summary of significant

accounting policies • the directors’ declaration.

Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our report.

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

Independence We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

46

Other information The directors are responsible for the other information. The other information comprises the information included in the Financial statements for the year ended 30 June 2020 for the year ended 30 June 2020, but does not include the financial report and our auditor’s report thereon.

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

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the directors for the financial report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

47

Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the 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 the financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar3.pdf. This description forms part of our auditor's report.

PricewaterhouseCoopers

Katherine Ransom Melbourne Partner 22 September 2020

http://www.auasb.gov.au/auditors_responsibilities/ar3.pdf

Documents

Swimming Australia Limited and controlled entities