Grand Pacific Health Limited€¦ · Cert IV Occupational Health and Safety Cert IV Front Line...

Grand Pacific Health LimitedABN 49 062 587 071

Financial Statements

For the Year Ended 30 June 2017

Grand Pacific Health Limited

ABN 49 062 587 071

Contents


Page

Financial Statements

Directors' Report 1

Auditor's Independence Declaration 6

Financial Report

Statement of Profit or Loss and Other Comprehensive Income 7

Balance Sheet 8

Statement of Changes in Equity 9

Statement of Cash Flows 10

Notes to the Financial Statements 11

Directors' Declaration 26

Independent Audit Report 27


ABN 49 062 587 071

Directors' Report

30 June 2017

The directors present their report on Grand Pacific Health Limited for the financial year ended 30 June 2017.

Information on directors

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

J Keast

Qualifications BComm, CPA, MBA, GAICD

Experience Management consultant; NFP Training Services Manager;

former Director of Governance & Business Planning,

Commonwealth Department of Human Services; former

Director of Governance, Risk Management and Internal Audit,

Child Support Agency.

Special responsibilities Deputy Chair

Chair, Finance, Audit & Risk Management Committee

Nominations and Evaluation Committee

D Fornasier (Resigned 22 September 2016)

Qualifications BN, RN, CDE

Experience Diabetes Educator and Nurse Practitioner (endorsed); Clinical

experience in remote rural medicine, intensive care, diabetes

and primary care.

Special responsibilities Governance and Policy Committee

D Fuller

Qualifications B. Ed., M.A, MAICD., MIAM

Experience CEO WEA Illawarra, Chairman Community Colleges

Australia

Special responsibilities Chair of the Board

Chair, Nomina ons and Evalua on Commi ee

K Manderson

Qualifications B Med Sc. MBBS (Hons), MPH, DAvMed, FRACGP, FACAsM,

GAICD

Experience Senior Lecturer University of Wollongong; Senior Aviation

Medical Officer Navy Reserve; President, Australasian Society

of Aerospace Medicine and Director, Australasian College of

Aerospace Medicine, General Practitioner

Special responsibilities Chair, Governance and Policy Committee

1.


ABN 49 062 587 071

Directors' Report

30 June 2017

Information on directors (Continued)

B Thomson (Resigned 22 September 2016)

Qualifications MBBS (Hons), FACRRM, FARGP, FRACGP, DRANZCOG (Adv),

MAICD

Experience Clinical Associate Professor University of Wollongong; Director

Coast City Country GP Training; Member Shoalhaven Clinical

Council and NSW AMA Council; General Practitioner

Special responsibilities Finance, Audit & Risk Management Committee

B Smith

Qualifications Diploma Project Management

Cert IV Occupational Health and Safety

Cert IV Front Line Management

Cert IV Assessment and Workplace Training

Diploma, Aboriginal Health Worker

Completed the National Indigenous Leadership Program

Member Australian Institute of Company Directors MAICD

Experience Chairperson/Director Aboriginal Legal Service (NSW/ACT);

Compliance Manager, Dale & Hitchcock Civil Engineering and

Landscaping. Member of the Safety Institute of Australia.

Former Chairperson, Katungul Aboriginal Medical Service;

former Deputy Chairperson, Southern New South Wales

Medicare Local; former Australian Institute of Aboriginal &

Torres Strait Islander Studies, Ethics Committee Member

Special responsibilities Governance and Policy Committee

F Quinlan

Qualifications BA, B.Th.

Experience CEO Mental Health Australia; former Executive Director

Catholic Social Services Australia; former CIO Australian

Medical Association & Australasian Medical Publishing

Company; former Guest Lecturer ANU Master of Public Policy

program; Chair, Primary Health Network Advisory Panel;

Member, National Disability and Carer Advisory Council;

Member, Australian National Advisory Council on Alcohol and

Drugs (ANACAD)

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

stated.

2.


ABN 49 062 587 071

Directors' Report

30 June 2017

Review of operations

The operating surplus of the Company for the year was $504,118 (2016: $743,035). The company is exempt

from income tax.

Vision

Grand Pacific Health Limited's vision is for all Australians to be as healthy as possible and enjoy contributing

lives.

Mission

Grand Pacific Health Limited will improve assess to high quality community based health and support services

in rural and regional areas that will assist people in the management of the physical and mental health.

Guiding Principles

Grand Pacific Health Limited's 'way of doing business' is guided by a set of principles. These principles apply to

the whole of business including, service design, service delivery, quality frameworks, governance, pursuit of

growth opportunities, collaboration, internal processes and culture. These principles are:

The people we support have input into what we do together;

Healthy communities support healthy lives;

We make a positive difference;

We work locally to deliver better health outcomes;

We are bold and try new things;

We look after our team; and

We are here for the long term.

Principal activities

The principal activities of Grand Pacific Health Limited during the financial year were those of a non profit

health promotion and community services organisation, offering a diverse range of primary health care

services.

This range of activities include the delivery of mental health services, preventative health services, health

promotion, aboriginal health services, chronic disease management and coordination services as well as

psychosocial support services.

Grand Pacific Health Limited also operates two purpose built integrated primary care clinics in the Shellharbour

and Shoalhaven municipalities. These clinics provide a full suite of team based primary care involving General

Practioners, Nurses, Exercise Physiologists, Psychologists, Dieticians and Physiotherapists.

3.


ABN 49 062 587 071

Directors' Report

30 June 2017

Principal activities (Continued)

No significant changes in the nature of the Company's activity occurred during the financial year.

Members guarantee

Grand Pacific Health Limited is a company limited by guarantee. In the event of, and for the purpose of winding

up of the company, the amount capable of being called up from each members and any person or association

who ceased to be a member in the year prior to the winding up, is limited to $5, subject to the provisions of

the company's constitution.

At 30 June 2017 the collective liability of members was $ 2,805 (2016: $ 2,800).

Future developments and results

Likely developments in the operations of the Company and the expected results of those operations in future

financial years have not been included in this report as the inclusion of such information is likely to result in

unreasonable prejudice to the Company.

4.


ABN 49 062 587 071

Directors' Report

30 June 2017

Meetings of directors

During the financial year, 21 meetings of directors (including committees of directors) were held. Attendances

by each director during the year were as follows:

Directors'

Meetings

Finance, Audit and

Risk Management

Committee

Governance &

Policy Committee

Nominations

Committee

Number

eligible to

attend

Number

attended

Number

eligible to

attend

Number

attended

Number

eligible to

attend

Number

attended

Number

eligible to

attend

Number

attended

D Fornasier 2 2 1 1

D Fuller 7 7 7 7 1 1

J Keast 7 7 7 7 1 1

K Manderson 7 7 6 4

B Thomson 2 2

F Quinlan 7 6

B Smith 7 6 5 4

Auditor's independence declaration

The lead auditor's independence declaration in accordance with section 60 40 of the Australian Charities and

Not for Profits Commission Act 2012, for the year ended 30 June 2017 has been received and can be found on

page 6 of the financial report.

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

...............................................................

Jodi Keast

Director

................................................................

Bunja Smith

Director

Dated 20 September 2017

5.

Auditor's Independence Declaration under Section 60 40 of the Australian Charities

and Not for Profits Commission Act 2012 to the Directors of Grand Pacific Health

Limited

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2017, there have been:

(i) no contraventions of the auditor independence requirements as set out in the Australian Charities

and Not for Profits Commission Act 2012 in relation to the audit; and

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

Daley & Co

Chartered Accountants

Stephen Milgate

Partner

20 September 2017

Wollongong

Liability limited by a Scheme approved under Professional Standards Legislation

6.


ABN 49 062 587 071

Statement of Profit or Loss and Other Comprehensive Income


Note

2017

$

2016

$

Operating grants 15,221,297 15,890,421

Capital grants 326,131 243,205

Rendering of services 3,465,120 3,721,840

Sale of goods 85,857 257,717

Donations and gifts 25,258 11,388

Other income 2 880,973 1,214,424

20,004,636 21,338,995

Employee benefits expense (11,848,727) (11,832,331)

Clinical service delivery (3,990,449) (4,835,173)

Occupancy expenses (1,285,370) (1,080,623)

Information, communications and technology expense (657,981) (1,076,595)

Depreciation and amortisation expense 6 (405,841) (384,115)

Cost of sales (81,098) (193,502)

Other expenses (1,231,052) (1,193,621)

(19,500,518) (20,595,960)

Result for the year 504,118 743,035

Other comprehensive income for the year

Total comprehensive income for the year 504,118 743,035

The accompanying notes form part of these financial statements.

7.


ABN 49 062 587 071

Balance Sheet

As at 30 June 2017

Note

2017

$

2016

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 4 6,661,654 5,758,891

Trade and other receivables 5 785,845 806,583

TOTAL CURRENT ASSETS 7,447,499 6,565,474

NON CURRENT ASSETS

Trade and other receivables 5 950,000 975,000

Property, plant and equipment 6 9,868,614 8,940,013

TOTAL NON CURRENT ASSETS 10,818,614 9,915,013

TOTAL ASSETS 18,266,113 16,480,487

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 7 4,029,085 3,261,775

Employee benefits 8 790,561 777,229

TOTAL CURRENT LIABILITIES 4,819,646 4,039,004

NON CURRENT LIABILITIES

Trade and other payables 7 9,206,154 8,658,014

Employee benefits 8 301,884 349,158

TOTAL NON CURRENT LIABILITIES 9,508,038 9,007,172

TOTAL LIABILITIES 14,327,684 13,046,176

NET ASSETS 3,938,429 3,434,311

EQUITY

Reserves 116,638 127,929

Retained earnings 3,821,791 3,306,382

TOTAL EQUITY 3,938,429 3,434,311


8.


ABN 49 062 587 071

Statement of Changes in Equity


General fund

$

Donations

reserve

$

Total

$

Balance at 1 July 2016 3,306,382 127,929 3,434,311


Transfer to/(from) donations reserve 11,291 (11,291)

Balance at 30 June 2017 3,821,791 116,638 3,938,429

General fund

$

Donations

reserve

$

Total

$

Balance at 1 July 2015 2,563,347 127,929 2,691,276


Balance at 30 June 2016 3,306,382 127,929 3,434,311


9


ABN 49 062 587 071

Statement of Cash Flows


Note

2017

$

2016

$

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from:

Receipts from customers and funding bodies 22,551,490 21,917,644

Interest received 126,412 101,270

Payments to suppliers and employees (20,408,857) (21,778,675)

Net cash provided by/(used in) operating activities 2,269,045 240,239

CASH FLOWS FROM INVESTING ACTIVITIES:

(1,334,442) (682,599)

(31,840) (15,704)

Net cash used by investing activities (1,366,282) (698,303)

CASH FLOWS FROM FINANCING ACTIVITIES:

Net cash used by financing activities

Net increase/(decrease) in cash and cash equivalents held 902,763 (458,064)

Cash and cash equivalents at beginning of year 5,758,891 6,216,955

Cash and cash equivalents at end of financial year 4 6,661,654 5,758,891


10.


ABN 49 062 587 071

Notes to the Financial Statements


The financial report covers Grand Pacific Health Limited as an individual entity. Grand Pacific Health Limited is

a not for profit Company limited by guarantee, incorporated and domiciled in Australia.

The functional and presentation currency of Grand Pacific Health Limited is Australian dollars.

Comparatives are consistent with prior years, unless otherwise stated.

1 Basis of Preparation

The financial statements are general purpose financial statements that have been prepared in accordance

with the Australian Accounting Standards Reduced Disclosure Requirements and the Australian Charities

and Not for Profits Commission Act 2012.

The financial statements have been prepared on an accruals basis and are based on historical costs

modified, where applicable, by the measurement at fair value of selected non current assets, financial

assets and financial liabilities.

Significant accounting policies adopted in the preparation of these financial statements are presented in

Note 17 and are consistent with prior reporting periods unless otherwise stated.

2 Other income

2017

$

2016

$

Rental income 353,739 382,754

Interest income 126,412 101,270

Corporate services income 346,411 603,565

Other income 54,411 126,835

880,973 1,214,424

11.


ABN 49 062 587 071



3 Result for the Year

The result for the year includes the following expenses:

2017

$

2016

$

Superannuation contributions 976,415 1,011,411

Rental expense on operating leases

minimum lease payments 853,272 609,008

4 Cash and cash equivalents

Cash on hand 2,000 2,100

Cash at bank 6,659,654 5,756,791

6,661,654 5,758,891

5 Trade and other receivables

Current

Trade receivables 729,724 437,602

Provision for impairment (16,353) (11,607)

713,371 425,995

Prepayments 24,680 364,634

Other receivables 47,794 15,954

785,845 806,583

12.


ABN 49 062 587 071



5 Trade and other receivables (Continued)

2017

$

2016

$

Non current

Prepayments 950,000 975,000

Reconciliation of changes in the provision for impairment of receivables is as follows:

Balance as at 1 July 11,607 1,353

Additional impairment loss recognised 4,746 10,254

Balance at end of the year 16,353 11,607

13.


ABN 49 062 587 071



6 Property, plant and equipment

2017

$

2016

$

Freehold land and buildings

At cost 9,378,587 9,302,539

Accumulated depreciation (643,264) (434,747)

Impairment (200,000) (200,000)

8,535,323 8,667,792

Furniture, fixtures and fittings

At cost 1,730,455 450,379


1,297,276 142,694

Motor vehicles

At cost 23,192 23,192


503

Office equipment

At cost 97,773 97,773


19,990 40,452

Computer equipment

At cost 136,436 136,436


5,350 10,289

Computer software

At cost 396,658 396,658


10,675 78,283

Total property, plant and equipment 9,868,614 8,940,013

14.

GrandPacificHealthLimited

ABN49062587071

Notesto

theFinancialStatements

FortheYearEnded30June2017

6Property,plantandequipment(Continued)

(a)

MovementsinCarryingAmounts

Mo

vem

en

tin

the

carr

yin

gam

ou

nts

for

each

class

of

pro

pert

y,p

lan

tan

deq

uip

men

tb

etw

een

the

begin

nin

gan

dth

een

do

fth

ecu

rren

tfi

nan

cialy

ear:

Freehold

Landand

Buildings

$

Furniture,

Fixturesand

Fittings

$

Motor

Vehicles

$

Office

Equipment

$

Computer

Equipment

$

Computer

Software

$

Total

$

Yearended30June2017

Bala

nce

at

the

begin

nin

go

fye

ar

8,667,792

142,694

503

40,452

10,289

78,283

8,940,013

Ad

dit

ion

s76,048

1,258,394

1,334,442

Dep

reci

ati

on

exp

en

se(208,517)

(103,812)

(503)

(20,462)

(4,939)

(67,608)

(405,841)

Balance

attheendoftheyear

8,535,323

1,297,276

19,990

5,350

10,675

9,868,614

15

.


ABN 49 062 587 071



7 Trade and other payables

2017

$

2016

$

CURRENT

Trade payables 190,769 437,611

Accruals 1,130,840 744,011

Deferred income 2,707,476 2,080,153

4,029,085 3,261,775

NON CURRENT

Deferred income 9,206,154 8,658,014

8 Employee Benefits

Current liabilities

Provision for employee benefits 790,561 777,229

Non current liabilities

Long service leave 301,884 349,158

9 Reserves

Donations Reserve

The Donations reserve was established in 2009 by a gift from the Glenn Tobin Memorial Fund to be used

for youth mental health.

10 Capital and Leasing Commitments

(a) Operating Leases

Minimum lease payments under non

cancellable operating leases:

not later than one year 601,534 505,955

between one year and five years 227,248 71,919

828,782 577,874

16.


ABN 49 062 587 071



10 Capital and Leasing Commitments (Continued)

(a) Operating Leases (Continued)

Operating leases have been taken out for land and buildings, and office equipment. These leases

have an average life of between three and five years with an option for a further three years

included in some contracts. There are no restrictions placed upon the lessee upon entering into

these leases.

11 Financial Risk Management

The main risk Grand Pacific Health Limited is exposed to through its financial instruments are market risk

consisting of interest rate risk.

The Company's financial instruments consist mainly of deposits with banks, accounts receivable and

payable, bank loans and leases.

The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in

the accounting policies to these financial statements, are as follows:

2017

$

2016

$

Financial Assets

Cash and cash equivalents 6,661,654 5,758,891

Loans and receivables 761,165 441,949

Total financial assets 7,422,819 6,200,840

Financial Liabilities

Financial liabilities at amortised cost

Trade and other payables 1,321,609 1,181,622

12 Key Management Personnel Disclosures

The total remuneration paid to key management personnel of the Company is $ 410,531

(2016: $ 382,363).

17.


ABN 49 062 587 071



13 Contingencies

The land and buildings owned by the Company relate to GP Super Clinics in Shellharbour and Nowra were

originally funded by a combination of capital grants from the Department of Health (DoH) and bank

borrowings. The bank borrowings have been subsequently repaid. Both contracts with DoH specify capital

grants must be repaid should the Company fail to comply with any of its obligations under the contract,

including using and running the property as a GP Super Clinic. If a GP Super Clinic is closed within twenty

years proportional repayment of the Grant would be required. As at 30 June 2017 the applicable

proportional repayment for the GP Super Clinic Shellharbour would be $1,744,625 (2016: $1,869,625) and

the GP Super Clinic Nowra would be $7,127,123 (2016: $7,540,342). The Company has no plans to close

either of the GP Super Clinics.

14 Related Parties

(a) The Company's main related parties are as follows:

Key management personnel:

Any person(s) having authority and responsibility for planning, directing and controlling the

activities of the entity, directly or indirectly, including any director (whether executive or otherwise)

of that entity are considered key management personnel (KMP).

For details of remuneration disclosures relating to key management personnel, refer to Note 12:

Key Management Personnel Disclosures.

Other transactions with KMP and their related entities are shown below.

(b) Transactions with related parties

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

favourable than those available to other parties unless otherwise stated. No amounts are payable to

or receivable from directors or director related entities at the reporting date (2016: Nil).

2017

$

2016

$

After hours practice incentive

payments provided to director

related entities 12,632

18.


ABN 49 062 587 071



15 Events after the end of the Reporting Period

The financial report was authorised for issue on 20 September 2017 by the Board of Directors.

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

may significantly affect the operations of the Company, the results of those operations or the state of

affairs of the Company in future financial years.

16 Critical Accounting Estimates and Judgments

The directors make estimates and judgements during the preparation of these financial statements

regarding assumptions about current and future events affecting transactions and balances.

These estimates and judgements are based on the best information available at the time of preparing the

financial statements, however as additional information is known then the actual results may differ from

the estimates.

The significant estimates and judgements made have been described below.

Key estimates impairment of property, plant and equipment

The Company assesses impairment at the end of each reporting period by evaluating conditions specific to

the Company that may be indicative of impairment triggers.

Key estimates provisions

As described in the accounting policies, provisions are measured at management s best estimate of the

expenditure required to settle the obligation at the end of the reporting period. These estimates are made

taking into account a range of possible outcomes and will vary as further information is obtained.

Key estimates receivables

The receivables at reporting date have been reviewed to determine whether there is any objective

evidence that any of the receivables are impaired. An impairment provision is included for any receivable

where the entire balance is not considered collectible. The impairment provision is based on the best

information at the reporting date.

19.


ABN 49 062 587 071



17 Summary of Significant Accounting Policies

(a) Income Tax

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

(b) Leases

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

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

(c) Revenue and other income

Revenue is recognised when the amount of the revenue can be measured reliably, it is probable

that economic benefits associated with the transaction will flow to the Company and specific

criteria relating to the type of revenue as noted below, has been satisfied.

Revenue is measured at the fair value of the consideration received or receivable and is presented

net of returns, discounts and rebates.

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

Grant revenue

Government grants are recognised at fair value where there is reasonable assurance that the grant

will be received and all grant conditions will be met. Grants relating to expense items are recognised

as income over the periods necessary to match the grant to the costs they are compensating. Grants

relating to assets are credited to deferred income at fair value and are credited to income over the

expected useful life of the asset on a straight line basis.

Donations

Donations and bequests are recognised as revenue when received.

Rendering of services

Revenue in relation to rendering of services is recognised depending on whether the outcome of the

services can be estimated reliably. If the outcome can be estimated reliably then the stage of

completion of the services is used to determine the appropriate level of revenue to be recognised in

the period.

20.


ABN 49 062 587 071



17 Summary of Significant Accounting Policies (Continued)

(c) Revenue and other income (Continued)

Rendering of services (Continued)

If the outcome cannot be reliably estimated then revenue is recognised to the extent of expenses

recognised that are recoverable.

Rental income

Rental income is recognised on a straight line basis over a period of the lease term so as to reflect a

constant periodic rate of return on the net investment.

(d) Goods and services tax (GST)

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

except where the amount of GST incurred is not recoverable from the Australian Taxation Office

(ATO).

Receivables and payable are stated inclusive of GST.

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

payables in the balance sheet.

Cash flows in the statement of cash flows are included on a gross basis and the GST component of

cash flows arising from investing and financing activities which is recoverable from, or payable to,

the taxation authority is classified as operating cash flows.

(e) Property, plant and equipment

Each class of property, plant and equipment is carried at cost less, where applicable, any

accumulated depreciation and impairment.

Under cost model, the asset is carried at its cost less any accumulated depreciation and any

impairment losses. Costs include purchase price, other directly attributable costs and the initial

estimate of the costs of dismantling and restoring the asset, where applicable.

Depreciation

Property, plant and equipment, excluding freehold land, is depreciated on a straight line basis over

the assets useful life to the Company, commencing when the asset is ready for use.

21.


ABN 49 062 587 071




(e) Property, plant and equipment (Continued)

The depreciation rates used for each class of depreciable asset are shown below:

Fixed asset class Depreciation rate

Buildings 2.5%

Furniture and Fittings 12.5% 25%

Motor Vehicles 20%

Office Equipment 20%

Computer Equipment 33%

Computer Software 33%

At the end of each annual reporting period, the depreciation method, useful life and residual value

of each asset is reviewed. Any revisions are accounted for prospectively as a change in estimate.

(f) Financial instruments

Financial instruments are recognised initially using trade date accounting, i.e. on the date that the

Company becomes party to the contractual provisions of the instrument.

On initial recognition, all financial instruments are measured at fair value plus transaction costs

(except for instruments measured at fair value through profit or loss where transaction costs are

expensed as incurred).

Financial Assets

Financial assets are divided into the following categories which are described in detail below:

loans and receivables;

financial assets at fair value through profit or loss; and

held to maturity investments.

Financial assets are assigned to the different categories on initial recognition, depending on the

characteristics of the instrument and its purpose. A financial instrument s category is relevant to the

way it is measured and whether any resulting income and expenses are recognised in profit or loss

or in other comprehensive income.

All income and expenses relating to financial assets are recognised in the statement of profit or loss

and other comprehensive income in the !finance income or !finance costs line item respectively.

22.


ABN 49 062 587 071




(f) Financial instruments (Continued)

Loans and receivables

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

are not quoted in an active market. They arise principally through the provision of goods and

services to customers but also incorporate other types of contractual monetary assets.

After initial recognition these are measured at amortised cost using the effective interest method,

less provision for impairment. Any change in their value is recognised in profit or loss.

The Company s trade and other receivables fall into this category of financial instruments.

Significant receivables are considered for impairment on an individual asset basis when they are

past due at the reporting date or when objective evidence is received that a specific counterparty

will default.

The amount of the impairment is the difference between the net carrying amount and the present

value of the future expected cash flows associated with the impaired receivable.

In some circumstances, the Company renegotiates repayment terms with customers which may

lead to changes in the timing of the payments, the Company does not necessarily consider the

balance to be impaired, however assessment is made on a case by case basis.

Held to maturity investments

Held to maturity investments are non derivative financial assets with fixed or determinable

payments and fixed maturity. Investments are classified as held to maturity if it is the intention of

the Company's management to hold them until maturity.

Held to maturity investments are subsequently measured at amortised cost using the effective

interest method, with revenue recognised on an effective yield basis. In addition, if there is

objective evidence that the investment has been impaired, the financial asset is measured at the

present value of estimated cash flows. Any changes to the carrying amount of the investment are

recognised in profit or loss.

Financial liabilities

Financial liabilities are classified as either financial liabilities !at fair value through profit or loss or

other financial liabilities depending on the purpose for which the liability was acquired.

23.


ABN 49 062 587 071




(f) Financial instruments (Continued)

The Company!s financial liabilities include borrowings, trade and other payables, which are

measured at amortised cost using the effective interest rate method.

Impairment of financial assets

At the end of the reporting period the Company assesses whether there is any objective evidence

that a financial asset or group of financial assets is impaired.

Financial assets at amortised cost

If there is objective evidence that an impairment loss on financial assets carried at amortised cost

has been incurred, the amount of the loss is measured as the difference between the asset s

carrying amount and the present value of the estimated future cash flows discounted at the

financial assets original effective interest rate.

Impairment on loans and receivables is reduced through the use of an allowance accounts, all other

impairment losses on financial assets at amortised cost are taken directly to the asset.

Subsequent recoveries of amounts previously written off are credited against other expenses in

profit or loss.

(g) Impairment of non financial assets

At the end of each reporting period the Company determines whether there is evidence of an

impairment indicator for non financial assets.

Where this indicator exists and regardless for indefinite life intangible assets and intangible assets

not yet available for use, the recoverable amount of the asset is estimated.

Where assets do not operate independently of other assets, the recoverable amount of the relevant

cash generating unit (CGU) is estimated.

The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal and

the value in use. Value in use is the present value of the future cash flows expected to be derived

from an asset or cash generating unit.

Where the recoverable amount is less than the carrying amount, an impairment loss is recognised in

profit or loss.

24.


ABN 49 062 587 071




(g) Impairment of non financial assets (Continued)

Reversal indicators are considered in subsequent periods for all assets which have suffered an

impairment loss.

(h) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short term investments

which are readily convertible to known amounts of cash and which are subject to an insignificant

risk of change in value.

(i) Employee benefits

Provision is made for the Company's liability for employee benefits arising from services rendered

by employees to the end of the reporting period. Employee benefits that are expected to be wholly

settled within one year have been measured at the amounts expected to be paid when the liability

is settled.

Employee benefits expected to be settled more than one year after the end of the reporting period

have been measured at the present value of the estimated future cash outflows to be made for

those benefits. In determining the liability, consideration is given to employee wage increases and

the probability that the employee may satisfy vesting requirements. Cashflows are discounted using

market yields on high quality corporate bond rates incorporating bonds rated AAA or AA by credit

agencies, with terms to maturity that match the expected timing of cashflows. Changes in the

measurement of the liability are recognised in profit or loss.

(j) Economic dependence

Grand Pacific Health Limited is dependent on direct and indirect funding from the Federal

Department of Health for the majority of its revenue used to operate the business. At the date of

this report the directors have no reason to believe the Federal Department of Health will not

continue to support Grand Pacific Health Limited.

(k) Early adoption of AASB 120

During the year ended 30 June 2016 the Company changed its accounting policy relating to the

recognition and measurement of government grants through the early adoption of AASB 120

Accounting for Government Grants and Disclosure of Government Assistance.

This policy continues to be adopted in this financial report.

25.


ABN 49 062 587 071

Directors' Declaration

The directors declare that in the directors' opinion:

there are reasonable grounds to believe that the company is able to pay all of its debts, as and when

they become due and payable; and

the financial statements and notes satisfy the requirements of the Australian Charities and Not for

profits Commission Act 2012.

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

Regulation 2013.

Jodi Keast

Director

Bunja Smith

Director

Dated 20 September 2017

26.

27

Independent Audit Report to the members of Grand Pacific Health Limited

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of Grand Pacific Health Limited, which comprises the balance sheet as at 30 June

2017, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of

cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting

policies, and the directors declaration.

In our opinion the financial report of Grand Pacific Health Limited has been prepared in accordance with Division 60 of the

Australian Charities and Not for profits Commission Act 2012, including:

(a) giving a true and fair view of the Company s financial position as at 30 June 2017 and of its financial performance

for the year then ended; and

(b) complying with Australian Accounting Standards and Division 60 of the Australian Charities and Not for profits

Commission Regulation 2013.

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 are

independent of the Company in accordance with the auditor independence requirements of the Australian Charities and

Not for profits Commission Act 2012 (ACNC Act) and the ethical requirements of the Accounting Professional and Ethical

Standards Board s APES 110 Code of Ethics for Professional Accountants (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.

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

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

The directors are responsible for the other information. The other information is the directors' report accompanying the

financial report.

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, 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.

28

Responsibilities of Directors for the Financial Report

The directors of the Company are responsible for the preparation and fair presentation of the financial report in accordance

with Australian Accounting Standards and the ACNC Act, and for such internal control as the directors determine is

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

error.

In preparing the financial report, the directors are responsible for assessing the Company s ability to continue as a going

concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless

the directors' either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

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 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.

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

professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design

and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate

to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher

than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,

or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the

Company's internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and

related disclosures made by the directors.

Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the

audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast

significant doubt on the Company s ability to continue as a going concern. If we conclude that a material uncertainty

exists, we are required to draw attention in our auditor s report to the related disclosures in the financial report or,

if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained

up to the date of our auditor s report. However, future events or conditions may cause the Company to cease to

continue as a going concern.

Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and

whether the financial report represents the underlying transactions and events in a manner that achieves fair

presentation.

29

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

the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our

audit.

Daley & Co

Chartered Accountants

Stephen Milgate

Partner

20 September 2017

Wollongong

Liability limited by a Scheme approved under Professional Standards Legislation.

Date post:	12-Aug-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

Grand Pacific Health Limited€¦ · Cert IV Occupational Health and Safety Cert IV Front Line...

Documents