Australian Breastfeeding Association · This plan links activities and services to strategic...

Australian Breastfeeding Association

ABN 64 005 081 523

Financial report for the financial year ended 30 June 2016


Contents

Annual financial report

for the financial year ended 30 June 2016

Page

Directors’ report 1

Auditor’s independence declaration 4

Independent audit report 5

Directors’ declaration 7

Statement of profit or loss and other comprehensive income 8

Statement of financial position 9

Statement of changes in equity 10

Statement of cash flows 11

Notes to the financial statements 12


Directors’ report

1

Directors’ report

The Directors of Australian Breastfeeding Association submit herewith the annual financial report of the company

for the financial year ended 30 June 2016. The Directors report as follows:

Company Objectives and Strategy The Australian Breastfeeding Association is a voluntary organisation established for charitable purposes, originating

in 1964 as the Nursing Mothers’ Association. The Association is a company limited by guarantee. The replaceable

rules in the Corporations Act do not apply to the Association. ABA is a registered training organisation.

Our Vision

Breastfeeding is recognised as important by all Australians and is culturally normal.

Our Mission

As Australia’s leading authority on breastfeeding, we support, educate and advocate for a breastfeeding inclusive

society.

Key Result Areas:

Breastfeeding support

Organisational viability

Training, education and resources

Advocacy

Public awareness and profile

Governance and organisational development

Principal activities All activities undertaken by the Association are determined by the objectives, priorities and measurable outcomes

identified in the 2013-2016 Strategic Plan and are fitting with the objects of the Association.

Principal activities are determined in accordance with the strategic priorities, identified for each Key Result Area and

include

Group meetings – planned, coordinated and facilitated by trained volunteers

Breastfeeding Helpline – 24 hour mum-to-mum assistance and support for breastfeeding mothers

Community Education - hospital visits, school visits, educational sessions

Breastfeeding Education Classes – evidence-based information for mums and dads to be

Training and Education for Health Professionals, including national Health Professional Seminar Series

Nationally recognised training for ABA volunteers

Breast pump hire

Local events such as feed and change tents

Breastfeeding Friendly Workplace


Directors’ report

2

Measurement of Performance The Board of Directors and Chief Executive Officer monitor progress toward achieving the Association’s objectives

through reporting to an Operational Plan. This plan links activities and services to strategic priorities and desired

outcomes of each Key Result Area and is reviewed at quarterly Board meetings.

Company Financial Performance During Year The profit of the consolidated entity for the 2016 financial year was $113,138 (2015: loss of $715,507). This result

takes into account the operations of the company (the Association National Head Office and its Branches) and

Mothers Direct Pty Ltd (“the Consolidated Entity” or “the group”). Mothers Direct was closed during the 2014/15

financial year and is expected to be formally wound up in the 2016/17 financial year.

Members of the Board The names of the Directors in office at any time during or since the year end, with particulars of the qualifications,

experience and special responsibilities of each Director, are:

Director Qualifications and experience Special responsibilities

Rachel Fuller IBCLC, Cert IV TAE, Cert IV Breastfeeding

Education (Counselling), Cert IV Breastfeeding

Education (Community), Cert III Advertising

Studies (Media)

President

Susan Day AdvDip Management, IBCLC,

Diploma of Breastfeeding Management,

Cert IV TAE Cert IV Breastfeeding Education

(Counselling), Cert IV Breastfeeding Education

(Community)

Vice President

Deborah Holtham MBA (Tech Mgt), BEng (Elec)

Robyn Hamilton MAppSc (Library&Info Mgt), GradDipLibSc, BA

(Hons) Musicology, Cert IV AWT, Cert IV

Breastfeeding Education (Counselling), CertIV

Breastfeeding Education (Community)

Honorary Secretary from

27 November 2015

Sarah Lowndes (re-appointed 28/5/16)

BEc, MArts (Public Policy and Management),

GAICD

Honorary Treasurer

Alicia O’Donoghue (resigned effective 20/4/16)

BBus, BCmn, MMktg, MBA

Louise Pennisi (elected 27/11/15)

LLB/BA (Italian & Japanese) LLM TEP GAICD,

GIA (Cert)

Nanette Shone (term ended 27/11/ 15)

Cert IV Breastfeeding Education (Counselling),

Cert IV Breastfeeding Education (Community)

Hononary Secretary from

29 November 2014 to 27

November 2015

Leanne Taylor (re-elected 27/11/15)

BA, Dip Ed, Grad Dip Psych, Post-grad Dip

Psych, Cert IV TAE, Cert IV Breastfeeding

Education (Counselling), Cert IV Breastfeeding

Education (Community)

Cate Uhe (elected 27/11/15)

BSc(Hons), Grad Dip Ed, Dip Business

Management, Dip Breastfeeding Management,

Cert IV TAE, Cert IV Breastfeeding Education

(counselling and community)

Scott Williams (re-appointed 28/5/16)

Exec MBA, Masters Advanced Practice Nursing,

BA Paediatric Nursing, GAICD


Directors’ report

3

Directors’ Meetings

The names of the Directors in office at any time during or since the end of the year and the number of meetings

attended by each Director were:

Directors Eligible to Attend Attended

S Day 7 7

R Fuller 7 7

R Hamilton 7 7

D Holtham 7 6

S Lowndes 7 7

A O’Donoghue (resigned effective 20 April 2016) 6 3

N Shone (term ended 27 November 2015) 2 2

L Pennisi (term commenced 27 November 2015) 5 5

L Taylor 7 5

C Uhe (term commenced 27 November 2015) 5 5

S Williams 7 6

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

Membership

The Company has only 1 class of membership and on wind up each member must contribute $20 amounting to a

total contribution by members of $39,220.

Auditors’ Independence Declaration

A copy of the Auditors’ Independence Declaration as required under section 60-40 of the Australian Charities and

Not-for-profits Commission Act 2012 is set out on page 4.

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

Rachel Fuller

President

Sarah Lowndes

Treasurer

Melbourne, 24th

of October 2016


Directors’ declaration

7

DECLARATION BY DIRECTORS

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

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

statements.

The directors of the company declare that:

1. The financial statements, comprising the statement of profit or loss and other comprehensive income,

statement of financial position, statement of cash flows, statement of changes in equity, and accompanying

notes of the consolidated entity, are in accordance with the Australian Charities and Not-for-profits

Commission Act 2012 and:

(a) comply with Accounting Standards as described in Note 1 to the financial statements and the

Australian Charities and Not-for-profits Commission Regulation 2013; and

(b) give a true and fair view of the consolidated entity’s financial position as at 30 June 2016 and of its

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

Note 1 to the financial statements.

2. In the directors’ opinion, there are reasonable grounds to believe that the company will be able to pay its debts

as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of

the directors by:

Rachel Fuller

President

Sarah Lowndes

Director

Dated the 24th

of October 2016

Melbourne


Statement of profit or loss and other comprehensive income

8

Statement of profit or loss and other comprehensive income

for the financial year ended 30 June 2016

Note Consolidated

2016

$

2015

$

Revenue from continuing operations 2(a)

3,541,589 3,892,902

Cost of sales (181,264) (57,369)

Employee expenses (1,426,595) (1,385,103)

Depreciation and amortisation expense (72,042) (86,219)

Occupancy expenses (122,137) (127,295)

Other expenses 2(b) (1,639,374) (2,660,168)

Profit/(Loss) before income tax 100,177 (423,252)

Income tax expense 1(f) - -

Profit /(Loss) from continuing operations 100,177 (423,252)

Profit/(Loss) from discontinued operations 2(c) 12,961 (292,255)

Profit/(Loss) for the year 113,138 (715,507)

Other comprehensive income - -

Total comprehensive income/(loss) 113,138 (715,507)

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

accompanying notes.


Statement of financial position

9

Statement of financial position

as at 30 June 2016

Note Consolidated

30 June

2016

$

30 June

2015

$

Current assets

Cash and cash equivalents 14(a) 1,707,525 2,017,549

Trade and other receivables 4 76,356 83,200

Inventories 5 77,097 98,115

Other 6 28,607 26,843

Total current assets 1,889,585 2,225,707

Non-current assets

Intangible assets 7 71,065 98,774

Plant and equipment 8 65,138 67,068

Total non-current assets 136,203 165,842

Total assets 2,025,788 2,391,549

Current liabilities

Trade and other payables 9 216,964 361,794

Provisions 10 240,971 223,512

Other 11 588,615 886,691

Total current liabilities 1,046,550 1,471,997

Non-current liabilities

Provisions 12 305,740 360,281

Other

Total non-current liabilities

13

57,681 56,592

363,421 416,873

Total liabilities 1,409,971 1,888,870

Net assets 615,817 502,679

Equity

Retained earnings 615,817 502,679

Total equity 615,817 502,679

The above statement of financial position should be read in conjunction with the accompanying notes.


Statement of changes in equity

10

Statement of changes in equity

for the year ended 30 June 2016

Consolidated

Retained

Earnings

Total Equity

$ $

Balance at 30 June 2014 1,218,186 1,218,186

Total comprehensive loss for the year (715,507) (715,507)

Balance at 30 June 2015 502,679 502,679

Total comprehensive profit for the year 113,138 113,138

Balance at 30 June 2016 615,817 615,817

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


Statement of cash flows

11

Statement of cash flows

for the year ended 30 June 2016 Note Consolidated

2016

$

2015

$

Cash flows from operating activities

Receipts from members and customers 1,719,787 2,659,502

Grant receipts 1,496,225 1,669,604

Interest received 20,338 31,314

Receipts from other sources 26,487 322,930

Payments to suppliers and employees (3,536,686) (4,977,993)

Net cash provided by/(used in) operating activities 14(b) (273,849) (294,643)

Cash flows from investing activities

Payment for intangible assets (6,180) -

Payment for plant and equipment - (14,563)

Proceeds from disposal of plant and equipment (36,223) 645

Net cash used in investing activities (42,403) (13,918)

Cash flows from financing activities

Change in group closures 6,228 8,445

Net cash used in financing activities 6,228 8,445

Net increase/ (decrease) in cash and cash equivalents (310,024) (300,116)

Cash and cash equivalents at the beginning of the financial

year 2,017,549 2,317,665

Cash and cash equivalents at the end of the financial year 14(a) 1,707,525 2,017,549

The above statement of cash flows should be read in conjunction with the accompanying notes.


Notes to the financial statements

12

Notes to the financial statements for the financial year

ended 30 June 2016

1. Summary of significant accounting policies

Financial reporting framework

The consolidated entity is not a reporting entity because in the opinion of the directors there are unlikely to

exist users of the financial report who are unable to command the preparation of reports tailored so as to satisfy

specifically all of their information needs. Accordingly, this ‘special purpose financial report’ has been

prepared to satisfy the directors’ reporting requirements under the Australian Charities and Not-for-profits

Commission Act 2012.

The Association is a company limited by guarantee, incorporated and domiciled in Australia.

The financial statements were authorised for issue on 24 October 2016, by the directors of the company.

Statement of compliance

The financial statements have been prepared in accordance with the Australian Charities and Not-for-profits

Commission Act 2012 and the requirements of the following Australian Accounting Standards:

AASB 101: Presentation of Financial Statements

AASB 107: Statement of Cash Flows

AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors

AASB 110: Events after the Reporting Period

AASB 1048: Interpretation of Standards

AASB 1054: Australian Additional Disclosures

No other Australian Accounting Standards or Australian Accounting Interpretations have been applied.

Basis of preparation

The financial statements have been prepared on the basis of historical cost. Cost is based on the fair values of

the consideration given in exchange for assets. Unless otherwise indicated, all amounts are presented in

Australian dollars.

In the application of the group’s accounting policies management is required to make judgments, estimates and

assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The

estimates and associated assumptions are based on historical experience and various other factors that are

believed to be reasonable under the circumstance, the results of which form the basis of making the judgments.

Actual results may differ from these estimates.

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

are recognised in the period in which the estimate is revised if the revision affects only that period, or in the

period of the revision and future periods if the revision affects both current and future periods.

Judgments made by management in the application of the group’s accounting policies that have significant

effects on the financial statements and estimates with a significant risk of material adjustments in the next year

are disclosed, where applicable, in the relevant notes to the financial statements.



13

1. Summary of accounting policies (cont’d)

Going concern

For the year ended 30 June 2016, the entity made an operating profit of $113,138 (2015: operating loss of

$715,507) and had negative operating cash flows of $273,849 (2015: negative operating cash flows of

$294,643). The entity has a current asset surplus of $843,035 (2015: surplus of $753,710). The Board of

Directors is of the opinion that due to the following factors:

An overall strong balance sheet position with net assets in 2016 being $615,817

A forecast surplus in 2017

The Association is a going concern and that these financial statements should be prepared on a going concern

basis.

The following significant accounting policies have been adopted in the preparation and presentation of the

financial report:

(a) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, and cash in banks.

(b) Employee benefits

Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and

long service leave when it is probable that settlement will be required and they are capable of being

measured reliably.

Provisions made in respect of employee benefits expected to be settled wholly within 12 months, are

measured at their nominal values using the remuneration rate expected to apply at the time of settlement.

Provisions made in respect of employee benefits which are not expected to be settled wholly within 12

months are measured as the present value of the estimated future cash outflows to be made by the group in

respect of services provided by employees up to reporting date.

(c) Loans and receivables

Trade receivables, loans, and other receivables are recorded at amortised cost less impairment.

(d) Goods and services tax

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:

i. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as

part of the cost of acquisition of an asset or as part of an item of expense; or

ii. for receivables and payables which are recognised inclusive of GST.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of

receivables or payables.

Cash flows are included in the statement of cash flows on a gross basis.



14


(e) Impairment of assets

At each reporting date, the consolidated entity reviews the carrying amounts of its assets to determine

whether there is any indication that those assets have suffered an impairment loss. If any such indication

exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment

loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use.

In respect of not-for-profit entities, where the future economic benefits of an asset are not primarily

dependent on the assets ability to generate net cash inflows and where the consolidated entity would, if

deprived of the asset, replace its remaining future economic benefits, value in use is determined as the

depreciable replacement cost of an asset less, where applicable, accumulated depreciation calculated on

the basis of such cost to reflect the already consumed or expired future economic benefits of the asset. The

current replacement cost of an asset is its cost measured by reference to the lowest cost at which the gross

future economic benefits of that asset could currently be obtained in the normal course of business.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount

of the asset is reduced to its recoverable amount. An impairment loss is recognised in profit or loss

immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the

revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does

not exceed the carrying amount that would have been determined had no impairment loss been recognised

for the asset in prior years. A reversal of an impairment loss is recognised in profit or loss immediately.

(f) Income tax

The Association and its controlled entity are exempt from income tax in accordance with Subdivision 50-

A (ITAA 1997).

(g) Inventories

Inventories are valued at the lower of cost and net realisable value. Costs are assigned to inventory on

hand by the method most appropriate to each particular class of inventory, with the majority being valued

on a first in first out basis. Net realisable value represents the estimated selling price and costs to be

incurred in marketing, selling and distribution.

(h) Leases

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

are charged as expenses in the periods in which they are incurred.

(i) Payables

Trade payables and other accounts payable are recognised when the consolidated entity becomes obliged

to make future payments resulting from the purchase of goods and services.

(j) Principles of Consolidation

The consolidated accounts comprise the accounts of the Association and its controlled entity. All inter-

entity balances and transactions have been eliminated.

Separate financial statements for Australian Breastfeeding Association as an individual entity are no

longer presented as a consequence of a change to the Corporations Act 2001, however, limited financial

information for Australian Breastfeeding Association as an individual entity is included in Note 20.



15


(k) Plant and equipment

Plant and equipment is brought to account at cost less accumulated depreciation. The carrying amount of

plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable

amount from those assets. The depreciable amount of all fixed assets is depreciated over their useful lives

to the consolidated entity commencing from the time the asset is held ready for use.

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

Class of Fixed Asset Depreciation Rate and Method

Plant and Equipment 20%–40% Diminishing Value

(l) Intangible assets acquired separately

Intangible assets acquired separately are recorded at cost less accumulated amortisation and impairment.

Amortisation is charged on a straight-line basis over their estimated useful lives. Amortisation shall begin

when the assets are available for use; that is when they are in the condition of being capable of being

operated by management. The estimated useful life and amortisation method is reviewed at the end of

each annual reporting period, with any changes in these accounting estimates being accounted for on a

prospective basis. Amortisation is calculated on a straight-line basis over periods generally ranging from 3

to 5 years.

(m) Revenue recognition

Revenue from the sale of goods is recognised when the company has transferred to the buyer the

significant risks and rewards of ownership of the goods.

Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on

the financial asset.

Dividend revenue is recognised when the right to receive a dividend has been established.

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

Revenue from members’ subscriptions is recognised on a time proportionate basis that takes into account

the period of the subscription.

Government grants are assistance by the government in the form of transfers of resources to the

consolidated entity in return for past or future compliance with certain conditions relating to its operating

activities. Government grants, when there is a non reciprocal transfer, are recognised as income when the

consolidated entity obtains control or the right to receive a contribution, it is probable that the economic

benefits comprising the contribution will flow to the group and the amount of the grant can be measured

reliably.

(n) Accounting Standards Issued Not Yet Effective

The following new accounting standards, amendments to standards and interpretations have been issued,

but are not mandatory for financial reporting years ended on 30 June 2016. They are expected to impact

the company in the period of initial application. The following is available for early adoption, but has not

been applied in preparing this financial report:



16


(n) Accounting Standards Issued Not Yet Effective (cont’d)

Standards likely to have a financial impact

AASB

reference

Title and

Affected

Standard(s):

Nature of Change Application date: Impact on Initial

Application

AASB 9

(issued December

2010)

Financial

Instruments

AASB 9 introduces new requirements for

the classification and measurement of financial assets and liabilities.

These requirements improve and simplify

the approach for classification and measurement of financial assets compared

with the requirements of AASB 139. The

main changes are: a) Financial assets that are debt

instruments will be classified based on:

(i) the objective of the entity’s business

model for managing the financial assets;

and

(ii) the characteristics of the contractual cash flows.

b) Allows an irrevocable election on

initial recognition to present gains and losses on investments in equity

instruments that are not held for trading in

other comprehensive income (instead of in profit or loss). Dividends in respect of

these investments that are a return on

investment can be recognised in profit or loss and there is no impairment or

recycling on disposal of the instrument.

c) Introduces a ‘fair value through other comprehensive income’ measurement

category for particular simple debt

instruments.

d) Financial assets can be designated and

measured at fair value through profit or

loss at initial recognition if doing so eliminates or significantly reduces a

measurement or recognition inconsistency

that would arise from measuring assets or liabilities, or recognising the gains and

losses on them, on different bases.

e) Where the fair value option is used for financial liabilities the change in fair

value is to be accounted for as follows: - the change attributable to changes in

credit risk are presented in Other

Comprehensive Income (‘OCI’) - the remaining change is presented in

profit or loss

If this approach creates or enlarges an

accounting mismatch in the profit or loss,

the effect of the changes in credit risk are also presented in profit or loss.

Otherwise, the following requirements

have generally been carried forward unchanged from AASB 139 into AASB 9:

- classification and measurement of

financial liabilities; and - derecognition requirements for financial

assets and liabilities.

AASB 9 requirements regarding hedge accounting represent a substantial

overhaul of hedge accounting that enable

entities to better reflect their risk management activities in the financial

statements.

Furthermore, AASB 9 introduces a new impairment model based on expected

credit losses. This model makes use of

more forward-looking information and applies to all financial instruments that are

subject to impairment accounting.

Periods beginning on or

after 1 January 2018

Due to the fact that adoption is

only mandatory for the 30 June 2019 year end, the entity has not

yet made a full assessment of the

impact of these amendments.

However, based on the entity’s

preliminary assessment, the Standard is not expected to have

a material impact on the

transactions and balances

recognised in the financial

statements when it is first

adopted for the year ending 30 June 2019.



17


(n) Accounting Standards Issued Not Yet Effective (cont’d)

Standards likely to have a financial impact (cont’d)

AASB

referenc

e

Title and

Affected

Standard(s):

Nature of Change Application date: Impact on Initial

Application

AASB 15

Revenue from Contracts with

Customers

AASB 15 replaces AASB 118 Revenue, AASB 111 Construction Contracts and

some revenue-related Interpretations.

AASB15 establishes a new revenue recognition model that

basis for deciding whether revenue is to

be recognised over time or at a point in

time. AASB15 also

more detailed guidance on specific

topics (e.g., multiple element arrangements, variable pricing, rights of

return, warranties and licensing)

roves disclosures about revenue.

In May 2016, the AASB issued ED 260

Income of Not-for-Profit Entities, proposing to replace the income

recognition requirements of AASB 1004

Contributions and provide guidance to assist not-for-profit entities to apply the

principles of AASB 15. The ED is

expected to be released as a new Standard later in 2016.

1 January 2019

Due to the fact that adoption is only mandatory for the 30 June

2020 year end, the entity has not

yet made a full assessment of the impact of these

amendments.

However, based on the entity’s

preliminary assessment, the

Standard is not expected to have

a material impact on the transactions and balances

recognised in the financial

statements when it is first adopted for the year ending 30

June 2020.

AASB 16

Leases AASB 16 replaces AASB 117 Leases

and some lease-related Interpretations.

AASB 16 requires all leases to be

accounted for ‘on-balance sheet’ by

lessees, other than short-term and low

value asset leases. The new standard also provides new guidance on the

application of the definition of lease and

on sale and lease back accounting and requires new and different disclosures

about leases

1 January 2019 The entity is yet to undertake a

detailed assessment of the

impact of AASB 16. However,

based on the entiy’s preliminary

assessment, the likely impact on

the first time adoption of the Standard for the year ending 30

June 2020 includes:

• there will be a significant increase in lease assets and

financial liabilities recognised

on the balance sheet • the reported equity will reduce

as the carrying amount of lease

assets will reduce more quickly than the carrying amount of

lease liabilities

• operating cash outflows will be lower and financing cash

flows will be higher in the

statement of cash flows as

principal repayments on all

lease liabilities will now be

included in financing activities rather than operating activities.

(o) New and amended standards adopted by the group

None of the new standards and amendments to standards that are mandatory for the first time for the

financial year beginning 1 July 2015 materially affected any of the amounts recognised in the current period

or any prior period and are not likely to materially affect future periods.



18

Consolidated

2016

$

2015

$

2. Profit / (loss) from operations

(a) Other revenue

Subscriptions 666,643 773,739

Grants 1,741,813 1,655,078

Conference Liquid Gold - 576,502

Workshops and seminars offered outside ABA 233,767 229,692

ABA training, including branch conferences 155,115 136,155

Raffle 103,004 77,406

Endorsement, sponsorship and advertising 57,080 90,665

Donations 107,881 79,048

Breastfeeding Friendly Workplaces 117,904 39,751

Bank interest received/receivable 20,338 31,314

Equipment hire 49,724 42,275

Other 288,320 161,277

3,541,589 3,892,902

(b) Other expenses

Audits, financial governance & consulting fees 56,993 88,129

Statutory fees, trademarks and domain names - 10,962

Bad and doubtful debts expense (711) 2,430

Insurance 12,953 23,120

Sales advertising and marketing 1,514 5,552

Advocacy, public relations and promotion 8,352 16,617

Board expenses 30,562 26,937

Volunteer management teams expenses 5,116 5,140

Office administration and overheads 62,838 108,628

Information and communication technology 39,029 26,924

Registered Training Organisation expenses 20,412 22,367

Training ABA volunteers 429,620 249,553

ABA association services 7,939 4,168

Membership Services 103,237 146,341

Membership Offers & Promotions 48,015 50,251

BFW 26,041 20,044

BIR 25,289 28,495

Raffle expenses 59,724 57,804

Fundraising expenses 14,975 25,468

Workshops and seminars offered outside ABA 183,742 197,560

National Breastfeeding Helpline 429,928 448,437

Other funded project expenses 70,716 164,502

Equipment hire 3,090 -

Onerous lease - 413,768

National Conference - 516,971

1,639,374 2,660,168



19

Consolidated

2016 2015

$ $

(c) Loss from discontinued operations

Revenue 17,619 1,106,787

Less cost of goods sold (4,685) (807,550)

Employee benefits 761 (355,212)

Depreciation & Amortisation - (13,847)

Impairment - (51,312)

Occupancy costs - (56,026)

Other expenses (734) (115,095)

(292,255) 12,961

3. Remuneration of auditors

Auditor of the Head Office and Mothers Direct

Audit of the financial report 28,500 32,800

Audit of grant expenditure and raffle income 8,850 8,700

37,350 41,500

Auditor of the Branches

Audit of the financial report 16,000 16,000

Related practice of the auditor

Non-assurance services - FBT assistance - 5,173

4. Current trade and other receivables

Trade receivables 68,055 85,630

Allowance for doubtful debts - (2,430)

68,055 83,200

Other 8,301 -

76,356 83,200

5. Current inventories

Finished goods 77,097 101,515

Valuation provision - (3,400)

77,097 98,115

6. Other current assets

Prepayments 28,607 26,843

7. Intangible assets

Software Database:

At cost 287,432 281,252

Amortisation (216,367) (182,478)

71,065 98,774



20

Consolidated

2016 2015

$ $

7. Intangible assets (cont’d)

Website:

At cost - 49,487

Amortisation - (22,133)


- -

71,065 98,774

8. Plant and equipment

Plant and equipment:

At cost 491,699 510,993

Accumulated depreciation (426,561) (419,967)


65,138 67,068

9. Current trade and other payables

Trade payables 103,611 181,311

Goods and services tax (GST) payable 8,735 28,648

Other 104,618 151,835

216,964 361,794

10. Current provisions

Onerous Lease 57,500 57,500

Employee benefits 183,471 166,012

240,971 223,512

The provision for onerous contracts relates to the future net cash outflows expected to be incurred on the

remaining lease term of the Mothers Direct retail site, which was closed in April 2015. A provision was

recognised as the expected benefits to be derived from the contract are less than the unavoidable cost of

meeting the contract obligations. The Association is in the process of finding a new tenant for the Head

Office premises.

11. Other current liabilities

Deferred Government grants 125,481 371,069

Deferred income, subscriptions 370,455 398,848

Other income received in advance 92,679 116,774

588,615 886,691

12. Non-current provisions

Onerous Lease 297,595 356,267

Employee Provisions 8,145 4,014

305,740 360,281



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(b) Reconciliation of profit/(loss) for the period to net cash flows from operating activities

Profit/ (loss) for the year 113,138 (715,507)

Depreciation & amortisation 72,042 100,066

Impairment - 51,312

Inventories valuation (3,400) (4,252)

Bad and doubtful debts (2,430) (11,483)

Onerous lease - 413,768

Profit on disposal of assets - (1,114)

Changes in net assets and liabilities:

(Increase)/decrease in assets:

Current receivables 9,274 58,764

Current inventories 24,418 287,861

Other current assets (1,764) 432,816

Increase/(decrease) in liabilities:

Current payables (144,830) (459,666)

Current provisions 17,459 (91,592)

Other current liabilities (298,076) (359,630)

Non-current provisions (54,541) 4,014

Other non-current liabilities (5,139) -

Net cash inflow/(outflow) from operating activities (273,849) (294,643)

(c) There are no credit standby arrangements with banks.

(d) There were no non-cash financing or investing activities during the year.

(e) The following amounts of cash and cash equivalents are not immediately available to be utilised as

they are held as security by the bank for rental guarantee and credit card facilities:

Term deposits 59,000 59,000

12. Non-current provisions (cont’d)

The provision for onerous contracts relates to the future net cash outflows expected to be incurred on

the remaining lease term of the Mothers Direct retail site, which was closed in April 2015. A

provision was recognised as the expected benefits to be derived from the contract are less than the

unavoidable cost of meeting the contract obligations. The Association is in the process of finding a

new tenant for the Head Office premises.

Consolidated

2016 2015

$ $

13. Other non-current liabilities

Deferred income, subscriptions 43,008 48,147

Group closures 14,673 8,445

57,681 56,592

14. Notes to the statement of cash flows

(a) Reconciliation of cash

Cash on hand 535 594

Cash in banks 1,706,990 2,016,955

1,707,525 2,017,549



22

Consolidated

2016 2015

$ $

15. Commitments for expenditure

Non-cancellable operating lease payments

Future operating lease rentals of premises and photocopier

not provided for in the accounts, and payable:

Not longer than 1 year 80,420 109,575

Longer than 1 year not longer than 5 years 299,820 356,193

Longer than 5 years 204,631 176,941

584,871 642,709

16. Contingent Liabilities

Guarantees in respect of the company’s premises rental

agreement, secured by a term deposit – face value

55,000

55,000

17. Members’ Guarantee

The company is incorporated as a company limited by guarantee and not having share capital.

If the company is wound up, the Constitution states each member is required to contribute a maximum of

$20 towards meeting any outstanding obligations of the company. As at 30 June 2016 there were 1,961

members (2015: 2,522).

18. Subsequent Events

No subsequent events have occurred.

19. Additional company information

Australian Breastfeeding Association is a public company, incorporated and operating in Australia.

Registered office Principal place of business

1818 Malvern Road 1818 Malvern Road

Malvern East VIC 3145 Malvern East VIC 3145



23

20. Parent Entity Information

The following details information related to the parent entity, Australian Breastfeeding Association,

at 30 June 2016. The information presented here has been prepared using consistent accounting

policies as presented in Note 1.

2016

$

2015

$

Current assets 1,889,585 2,203,274

Non-current assets 149,304 176,942

Total assets 2,038,889 2,380,216

Current liabilities 1,046,557 1,449,724

Non-current liabilities 363,421 416,873

Total Liabilities 1,409,978 1,866,597

Retained earnings 628,911 513,619

Total equity 628,911 513,619

Profit / (loss) for the year 100,177 (594,809)

Other comprehensive income / (loss) for the year - -

Total comprehensive income / (loss) for the year 100,177 (594,809)

21. Related Party Information

(a) Parent entity

The parent entity within the group is Australian Breastfeeding Association, a company limited by

guarantee and domiciled in Australia.

(b) Subsidiaries

The consolidated financial statements incorporate the assets, liabilities and results of the following

subsidiary in accordance with the accounting policy described in note 1(j):

Name of entity Country of incorporation Class of shares Equity holding

2016 %

2015 %

Mothers Direct Pty Ltd Australia Ordinary 100 100

(c) Contribution to operating result

The profit of the consolidated entity for the 2016 financial year is $113,138 (2015: loss of $715,507). This

result takes into account the operations of the company (the association national head office and its

branches) and Mothers Direct Pty Ltd.



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21. Related Party Information (cont’d)

The contribution of the company (the association national head office and its branches) and its subsidiary

to the consolidated profit or loss for the year is:

Name of entity/business unit 2016

$

2015

$


National Head Office

(158,974)

(506,677)


Branches

259,151

83,425

Mothers Direct Pty Ltd 12,961 (292,255)

113,138 (715,507)

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