annual report 2013 - badu islandbadu island foundation ltd annual report 2013 . 3 welcome to the...

Annual Report

2013

Badu Island Foundation Ltd

2

Contents

Chairman’s Address

Chief Executives Report Page 3

Directors and Executive Profile Page 4,5

Organisational Structure Page 5

Business Operations Page 6,7,8

Directors Report Page 9,10

Financial Statements Pages 11—21

Chairman’s Address

This financial year 2012-

2013, is the second year

BIF has been in full con-

trol of all the enterprises

divested from Torres

Strait Island Regional and

it has been the toughest

year for the company to date, forcing us to re-

structure and look at the businesses from a dif-

ferent angle.

The overall economic climate in the outer Torres

Strait has been very slow and this has impacted

on the company greatly challenging the board to

look at the company operations very closely and

make critical decisions. The challenges ahead

will challenge the board in its decision making

and I encourage the future board to understand

business and make decisions in the best interest

of the company.

Quarrying is an important operation for the

company and its performance affects the overall

performance of the company. This year has been

the perfect example where sales were below ex-

pectation. This raises an important question,

company life after quarry closure. We know that

there will be a time when quarry will close possi-

bly within 20yrs depending on demand.

The company continues to strive to look at ave-

nues to create jobs and improve the service de-

livery of our existing businesses. In saying that,

the company needs to create a replacement en-

terprise/s soon for Badu to be fully autonomous.

I believe there are opportunities out there and

our location is the ideal location for these opportu-

nities. The challenge to grasp these opportunities is

neither with the government nor organisations that

are out there but are with the Badu people. Think

positively and make informed decisions is what we

must do to grasp these opportunities.

The company’s objective has always been to create

jobs and services on the island and it continues to

strive to achieve these by working closing with Mu-

ra Badulgal Corporation, Torres Strait Regional

Authority and Torres Strait Island Regional Coun-

cil and community organisations through Inter-

agency Committee. We need to understand that

the opportunities we are creating are for our chil-

dren and the future so they don’t feel the isolation

like our fathers and now we experience today. I

have every faith that economic conditions in the

Torres Strait will improve next year and the com-

pany will be in better position this time next year.

However, between now and then are many chal-

lenges but nothing is impossible.

Lastly, I thank the CEO Peter Gadsby and all his

staff, our business advisor Mr Gordon Longland,

Auditor Peter McGrath and all the board, Directors

Mr Peo Ahmat Chair Mura Badulgal Corporation

RNTBC, Ms Wariba Seriat, Mr Troy Laza and Mr

James Yorkston who have made time available for

the very important board meetings.

Ngai nithamuniyahgarbalbami ah iudikaimelmaba-kalumak mina ngalpunika ah ngalpun-kazikainangalpangadhapaliminngalpunrangadhwara AGM-ka. Koeyma Esso

Manuel Nomoa, Chair

Head Office:

Room 6 Badu Business Centre

199 Nona Street, PO Box 198 BADU ISLAND QLD 4875

Badu Island Foundation Ltd Annual Report 2013

3

Welcome to the 2013

annual meeting being the

third reporting year of the

company’s operations.

The company has suffered

a poor trading result for

2013, recording a loss of

($227,613). A sum of $183,054 for depreciation

has been recorded in the accounts. Full financial

statements appear in the second part of this An-

nual Report.

The loss reflects significant expenditure at our

quarry business, addressing equipment and plant

repairs, extraction of quarry material and compli-

ance with safety inspection notices. Anticipated

quarry orders to outer islands during the second

half of the year fell well below expectation, and

the resulting loss of sales had the quarry record a

loss of $120,000.

The Badu Caltex Service Station, and Badu Hotel

achieved modest results whilst the Tama Mudh

Motel performed well with its limited capacity.

Highlights during the year:-

• A grant from Torres Strait Regional Au-

thority (Economic Development) to take a

concept plan of extending the Tama Mudh

Motel to a 25 room facility with additional

infrastructure for a guest reception/

managers quarters and meeting room. This

design and cost estimate has been complet-

ed with the next step to fund the project.

(Several other projects were planned but

relied on grant funding, these applications

were not approved so further projects will

be shelved until funds can be sourced).

• Successfully applied for a loan facility for

working capital in the quarry operation, no

draw down had occurred to the reporting

date.

• Extracting approximately 11,500m3 of ma-

terial at the quarry for crushing.

• Developed a Traffic Management Plan for a

safer access to the quarry site, including

installation of a culvert and roadway to en-

able product to be delivered to the wharf

hardstand area without the need to access

the public road way.

• Establish the Sea Swift freight agency for

Badu.

The year has proved difficult, especially as the full

cost of running the various businesses are being

recognized in a true commercial sense as they no

longer have supportive recurrent government

funding grants (as was the case while these enter-

prises were administered by the former Badu Is-

land council and more recently by Torres Strait

Island Regional council) following divestment to

our company in June 2011.

The year ahead will be equally difficult but we

anticipate costs to repairs and maintenance of

plant and equipment will level off and the expan-

sion works at the quarry will bring financial re-

ward with large product orders returning much

needed revenue to the company.

In conclusion, I would like to acknowledge the

invaluable assistance from your Chairman, Ma-

nuel Nomoa, fellow directors, managers and staff

for their contribution.

Peter Gadsby, ceo


Chief Executive Officers Report

Badu Quarry - working in partnership with Sea Swift for temporary barge ramp modifications to unload

the tug barge “Cronus” of the new childcare centre prefabricated buildings, November 2012

4


...about Badu Island Foundation

Directors and Executive Profile

Manual Nomoa, 49 Chairman

Chairman since incorporation 29th January 2008, former Badu

Island Councillor. Mr Nomoa was also appointed as Business

Manager for the company in November 2011 to overseer the

running of our current businesses and develop new business

opportunities.

Peo Ahmat, 46 Mura Badulgal (Torres Strait Islander) Corpora-

tion RNTBC

The BIF constitution requires the current Chair of Mura Badul-

gal to hold an automatic seat on the Board. A Memorandum of

Understanding between the two entities enforces the working

relationship between the two organisation and separation of

responsibilities to each.

Troy Laza, 35 Honorary Treasurer

Troy was first appointed a director on 23rd September 2010.

After 4 years as senior ranger for Badu, Troy is a Ranger Super-

visor where his role now is supervision and implementation of

projects for Merian gesep a gur keparem le rangers, rangers

Murray Island group.

Wariba Seriat, 31 Non Executive Director

Wariba was first elected to the board on 16th November 2011.

Wariba is manager “Strait Start” child early learning centre, lo-

cated at the Tagai Badu campus.

James Yorkston, 49 Vice chairman

James was first elected to the board at the 2012 AGM and also

holds a board position with Mura Badulgal (TSI) Corporation

RNTBC.

James is a plumber contracted to Torres Strait Island Regional

Council.

5

Organisation Structure


Chief Executive

Officer

Peter Gadsby

Quarry

Quarry Leading

Hand

Missipele Nona

Quarry Assistant

John wosomo

Tama Mudh Motel

Motel Supervisor

Eddie Nona

Caltex Badu Service Station

Service Station

Manager

David Nona

Badu Hotel

Hotel Manager

Shelita Nona

Duty Manager

Daniel Nona

Casual Staff

Bar/Cleaning

Freight Agency

Freight/General

Hand

Stephen Buia

Business Manager

Manuel NomoaAdmin Assistant

Christine Yorkston

Trainee Bookkeeper

Danielle Morseu


Directors and Executive Profile continued

Peter Gadsby, 60 Chief Executive Officer from April 2010

Prior to coming to Badu, Peter worked extensively for local gov-

ernments in remote indigenous councils and rural shires in

North West and Far North Queensland.

Holding the dual role as Executive Officer for Mura Badulgal

(PBC) under the Memorandum of Understanding between the

Badu PBC and BIF makes for a busy office.

6

Business Operations



Badu Hotel

2013

$

Sales 868,787

Other Income 64,173

932,960

Cost of Goods Sold

Opening stock 14,336

Purchases 679,973

Freight 86,018

682,347

Gross Profit 250,613

Expenses

Deprecia7on 18,307

Repairs & Maintenance 5,946

Employee Costs 202,404

Other 65,491

292,148

Net Profit (Loss) (41,535)

Less closing stocks 97,980

Badu Hotel main bar

Badu Caltex Service

Sta-on 2013

$

Sales 772,627

Grant Funding forward 19,090

791,717

Cost of Goods Sold

Opening stock 41,109

Purchases 515,050

Freight 171,347


681,389


Less Expenses

Deprecia7on 17,309

Repairs & Upgrade works 24,570


Other 20,446

132,088

Net Profit (Loss) (21,760) Transferring a fuel delivery to bulk tanks

David Nona

Service Station

Manager

Shelita Nona

Badu Hotel Manager

2012

$

812,282

60,907

873,188

64,653

536,983

79,159

14,336

565,825

307,363

29,317

11,475

185,944

42,208

268,943

38,420

2012

$

745,969

19,090

765,059

76,224

487,717

143,849

41,109

596,451

168,608

17,677

163,109

54,672

28,732

264,190

(95,582)

7


Badu Quarry

2013

$

Sales 494,226


776,226

Less Cost of Goods Sold

Add Opening stock 82,280

Purchases/Blas7ng 214,989

Freight 173,742


111,130


Less Expenses

Deprecia7on 51,335


Employee/Contactors 234,416

Other 193,081

569,240

Net Profit (Loss) 95,856

Badu Nursery 2013

$

Sales 4,724

Other Income


7,990

Less Cost of Goods Sold

Add Opening stock 1,772

Purchases

Closing stocks 1,470

302

Gross Profit 7,688

Less Expenses

Deprecia7on 35,558

Repairs & Maintenance


Other 9,347

107,276


Crushing Badu Quarry

2012

$

904,108

291,100

1,195,208

113,064

114,464

173,984

82,280

257,664

937,544

32,493

62,649

101,432

78,367

274,941

662,603


2012

$

11,736

25,372

33,863

70,971

8,231

251

1,772

6,208

64,763

34,314

31,215

77,543

11,470

154,542

(89,779)

Nursery Shade house

Business Operations continued

At the writing of this report the company re-

grettably announced the closure of the nurse-

ry/ landscaping business in a company re-

structure to reduce trading losses.

Bulk bags of pre-mix aggregate

awaiting shipment

8



Tama Mudh Motel

2013

$

Sales 108,245


110,864

Expenses

Deprecia7on 13,181



Other 26,900

97,440


Tama Mudh Motel

Cargo day—freight handling

Eddie Nona

Manager

2012

$

103,112

28,000

141,112

12,780

13,318

61,320

19,149

106,567

34,545

Badu Sea Swi2 Freight

Agency 2013

$

Sales 63,024

63,024

Less Expenses

Deprecia7on 1,849


Other 4,733

23,992


2012

$

18,622

18,622

0

6,131

0

6,131

12,491

Badu Business Centre 2013

$

Rents 33,275

Grant Funding forward

33,275

Less Expenses

Deprecia7on 34,475


Employee/Contractors 4,508

Other 16,661

77,215


2012

$

39,766

16,364

56,130

4,870

434

13,235

49,989

11,141

26,450

Badu Business Centre

Business Operations continued

9


Your directors present their report on the company for the financial year ended 30 June 2013.

1. General Information a. Directors

The names of the directors in office at any time during, or since the end of, the year are:

Manual Nomoa (Appointed: 29th January 2008)

Peo Ahmat (Reappointed: 24th February 2011)

Troy Paiwan Laza (Appointed: 23rd September 2010)

Wariba Danagai Seriat (Appointed:16th November 2011)

James Karim Yorkston (Appointed: 30th November 2012)

b. Principal Activities

The principle activities of Badu Island Foundation Ltd during the financial year were the operation of the following listed business and activities to raise funds for the benefit and welfare for the Community of Badu Island:

Badu Hotel

Badu Quarry

Badu Caltex Service Station

Tama Mudh Motel

Badu Nursery & Landscaping

Seaswift Freight Agency

Management of commercial premises known as the Badu Business Centre.

This is the second full year of operation for the above businesses with the exception of the Badu Hotel which operations were taken over in January 2010.

2. Business Review

a. Distribution of Profits

No distributions were paid or declared during the financial year.

b. Operating Results

The Net Loss for the year of Badu Island Foundation Ltd after providing for income tax amounted to $227,613.

c. Review of Operations

A review of the operations of the company during the financial year and the results of those operations show the company continued to engage in its various trading activities, the results of which are disclosed in the attached financial statements.


ACN129 423 310

Directors Report

30 June 2013

10


3. Other Items

a. Auditors’ Independence Declaration

A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 is set out at page 3.

b. Significant Changes in State of Affairs

The only significant change in the nature of the company’s activities that occurred during the financial year was that the Company expanded its quarry business.

c. Significant Event

Except as noted above there was no significant event effecting the Company operations.

d. Environmental Issues

The company’s operations are not regulated by any significant environmental regulation under a law of the Commonwealth of a State or Territory.

4. Indemnifying Officers

During or since the end of the financial year the company has entered into an agreement to Indemnify Directors and Officers and has agreed to pay insurance premiums thereon.

5. Options

No options over issued shares or interest in the company were granted during or since the end of the financial year and there were no options outstanding at the date of this report. Signed in accordance with a resolution of the Board of Directors:

Dated: 9th September 2013


ACN129 423 310

Directors Report

30 June 2013

11

FINANCIAL STATEMENTS

CASH FLOW STATEMENT

FOR THE YEAR ENDED 30 JUNE 2013

Note 2013 2012

$ $

Cash Flows from Operating Activities

Receipts From Customers 2,765,817 2,746,648

Dividends Received - -

Interest Received 3,803 -

Payments to Suppliers and Employees (3,318,030) (2,236,101)

Interest Paid - -

Net Cash Provided by / (Used in) Operating Activities: 21 548,410 510,547

Cash Flows From Investing Activities

Proceeds from Sale of Property, Plant & Equipment - -

Acquisitions of Property, Plant & Equipment (26,167) (198,340)

Net Cash Provided by (Used In) Investing Activities: (26,167) (198,340)

Cash Flows from Financing Activities

Loan Proceeds - -

Loan Repaid - -

Net Cash Provided by Financing Activities - -

Net Increase (decrease) in Cash: (26,167) 312,207

Cash at Beginning of Year 756,279 444,072

Cash at End of Year 9 730,112 756,279


STATEMENT OF FINANCIAL PERFORMANCE


Note 2013 2012

$ $

Revenue 2 2,410,728 2,655,236

Cost of sales 3 1,480,779 1,662,601

Gross Profit 929,948 992,635

Other revenues 4 417,975 282,882

Total income 1,347,924 1,275,518

Administration expenses 5 (658,818) (402,475)

Depreciation expense 6 (183,054) (134,819)

Employee Costs 7 (693,529) (642,651)

Other Expenses 8 (32,093) (20,267)

Profit (loss) before income tax expense (219,570) 75,305

Income tax expense - -

Profit from operations (219,570) 75,305

12


STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2013

Note 2013 2012

$ $

CURRENT ASSETS

Cash assets 9 181,702 756,279

Receivables 10 148,808 207,891

Stock on Hand 11 505,448 144,827

TOTAL CURRENT ASSETS 835,957 1,108,997

NON-CURRENT ASSETS

Property Plant & Equipment 12 4,110,238 4,267,124

TOTAL NON-CURRENT ASSETS 4,110,238 4,267,124

TOTAL ASSETS 4,946,195 5,376,121

CURRENT LIABILITIES

Trade and other payables 13 417,865 616,030

Interest Bearing Liabilities - -

TOTAL CURRENT LIABILITIES 417,865 616,030

NON-CURRENT LIABILITIES

Trade and other payables 14 23,287 35,479

TOTAL NON-CURRENT LIABILITIES 23,287 35,479

TOTAL LIABILITIES 441,153 651,509

NET ASSETS 4,505,042 4,724,612

EQUITY

Issued capital 16 - -

Asset Revaluation Reserve 17 4,232,207 4,232,207

Retained Earnings 18 272,835 492,405

TOTAL EQUITY 4,505,042 4,724,612

13


STATEMENT OF CHANGES IN EQUITY


Issued Capital

Ordinary

Asset

Retained Revaluation

2011-2012 year Note Earnings Reserve Total

$ $ $ $

Balance at 1 July 2011 - 417,100 3,026,146

3,443,246

Profit attributable to members - 75,305 -

75,305

Transfers to and from

reserves

- Asset Revaluation Reserve 18

- - 1,206,061

1,206,061

Sub-total - 492,405 4,232,207

4,724,612

Dividends paid or provided for

- - - -

Balance at 30 June 2012

- 492,405 4,232,207

4,724,612

2012-2013 year

Balance at 1 July 2012 492,405 4,232,207

4,724,612

Profit (Loss) attributable to

members - (219,570) -

(219,570)


retained earnings - -


reserves

- Asset Revaluation Reserve 18

- - - -

Sub-total - 272,835 4,232,207

4,505,042

Dividends paid or provided for

- - - -

Balance at 30 June 2013

- 272,835 4,232,207 4,505,042

14


NOTES TO THE FINANCIAL STATEMENTS


Note 1 - Statement of Significant Accounting Policies

The significant policies that have been adopted in the preparation of this financial report are:

a) Basis of Preparation

The Company is not a reporting entity because there are no users dependent on general purpose

financial reports.

This is a special purpose financial report that has been prepared by Badu Island Foundation Ltd for the

sole purpose of satisfying the requirements of the directors and members.

As such, the financial report may not comply with all International Financial Reporting Standards

The financial report has been prepared in accordance with the requirements of the following

Australian Accounting Standards:

AASB 1031 Materiality

AASB 101 Presentation of Financial Statements

AASB 107 Cash Flow Statements

AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors

AASB 110 Events after the Balance Sheet Date

AASB 1048 Interpretation and Application of Standards

The accounting policies adopted are considered appropriate to meet the needs of the members.

The financial report has been prepared on an accruals basis and the basis of historical cost except for the

revaluation of certain non-current assets.

The financial report is for the entity Badu Island Foundation Ltd as an individual entity. The Badu Island

Foundation Ltd is a company limited by guarantee, incorporated and domiciled in Australia.

The following specific accounting policies, which are consistent with the previous period

unless otherwise stated, have been adopted in the preparation of this report:

b) Property Plant & Equipment

The company has adopted AASB116 for Property Plant & Equipment in the

preparation of the financial statements for the year ended 30 June 2013.

c) Income Tax

The company is, by virtue of Section 50-25 5.1 (Income Tax Assessment Act 1997)

exempt from the liability to pay company income tax.

d) Property, Plant and Equipment

Property, Plant and Equipment are brought to account at cost or Director's value, less where

applicable, any accumulated depreciation or impairment losses. The carrying amount of property,

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

amount from those assets. The expected net cash flows have not been discounted to present values in

determining recoverable amount.

15


e) 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.

f) Revenue Recognition

Sales revenue is recognised when control has passed to the buyer.

g) Cash

For the statement of cash flows, cash includes cash on hand net of bank overdrafts.

h) Investments

Valuation of investments is determined by multiplying the number of shares held by the market price

of each share at balance date. Increments or decrements are included in the revenue statement.

Note 1 - Statement of Significant Accounting Policies continued

Acquisitions of assets

Acquisitions of assets are initially recorded at cost. Cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition, including freight in, architect's fees and engineer-ing design fees and all other establishment costs.

Valuation

All buildings and improvements and major plant were valued as at 30 June 2012 by Asset Advance, Mr Neil Teves AAPI, Certified Practising Valuer qld Registration No. 382.

Other plant and equipment is at the Directors' valuation or measured at cost.

Non-current physical assets measured at fair value are re-valued where required so that the carrying amount of each class of asset does not materially differ from its fair value at the reporting date.

Any revaluation increment or decrement arising on the revaluation of an asset has been credited to the asset revaluation reserve.

Depreciation

Land is not depreciated as it has an unlimited useful life. Depreciation on other property, plant and equipment is calculated so as to write-off the net cost or re-valued amount of each depreciable asset, less its estimated residual value, progressively over its estimated useful life to the company.

Assets are depreciated from the date of acquisition or, in respect of internally constructed assets, from the time an asset is completed and ready for use.

The depreciable amounts of all fixed assets including buildings but excluding freehold land, are

depreciated on a diminishing value basis or prime cost basis over their estimated useful lives

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

Ranges of useful lives of each separate class of asset are disclosed in Note 12.

between the carrying amount of the asset at the time of the disposal and the proceeds of disposal and

is included in the operating profit of the Company in the year of disposal.

The gain or loss on disposal of all fixed assets including re-valued assets is determined as the difference

16


Note 1 - Statement of Significant Accounting Policies (Continued)

i) Goods and Services Tax

Goods and services tax is not included in revenue and expenses but is included in receivables, payables, and

receipts and payments to customers.

j) Impairment of Assets

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

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

the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in

use, is compared to the asset's carrying value. Any excess of the asset's carrying value over its recoverable

amount is expensed to the income statement.

k)

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

employees to balance date. Provisions were recognised for both Long Service and Annual Leave.

Employee Benefits

2013 2012

$ $

Note 2 - Revenue

Sales 2,410,728 2,655,236

2,410,728 2,655,236

Note 3 - Cost of sales

Opening Stock 144,827 273,072

Purchases 1,403,455 1,137,365

Freight 437,945 396,991

Closing Stock (505,448) (144,827)

1,480,779 1,662,601

Note 4 - Other Revenues

Grant Funding 374,873 171,456

CDEP Wage Reimbursement - 89,436

Miscellaneous Income 39,300 20,494

Sale of Assets - 1,495

417,975 282,882

Note 5 - Administration Expenses

Accounting Fees 1,000 1,500

Audit Fees 11,000 11,350

Auspice Payments 36,114 20,000

Advertising 1,227 32

Bad Debts (7,126) 14,415

Bank Charges 5,229 3,945

Computer Expenses 1,458 9,133

Consultancy 107,776 31,416

Electricity and Gas 43,024 44,117

Freight (Non-Stock) 49,294 33,070

Insurance 31,589 27,596

Internet and Web 1,706 1,674

Landscaping & Gardens 3,978 8,783

17


Note 5 - Administration Expenses (Continued) 2013 2012

$ $

Motor Vehicle Expenses 86,599 28,810

Mura Badulgal Office Expenses - 7,446

Postage 367 512

Printing and Office Supplies 5,787 4,209

Registrations & Licenses 10,979 11,880

Repairs and Maintenance - Buildings 38,481 35,570

Repairs and Maintenance - Plant and Equipment 107,799 80,453

Telephone and Fax 18,348 10,531

Water Usage 17,288 -

402,475 402,475

Note 6 - Depreciation Expense

Buildings 122,425 96,072

Motor Vehicles 25,482 23,089

Plant and Equipment 32,934 13,468

Furniture and Fittings 2,213 2,190

183,054 134,819

Note 7 - Employee Costs

Staff Amenities & Uniforms 952 2,279

Staff Training 783 2,588

Superannuation 55,557 50,788

Wages and Salaries 636,237 586,996

693,529 642,651

Note 8 - Other Expenses

Other Expenses 32,093 20,267

32,093 20,267

Note 9 - Cash Assets

Cash at Bank - Cheque Account 60,077 347,102

Cash at Bank - Grants Account 42,736 377,089

Cash Float 4,600 10,600

ATM Safe Float 67,087 14,318

Cashcard ATM 1,740 7,170

181,702 756,279

Note 10 - Receivables

Deposits Paid 2,000 2,000

Trade Debtors 154,468 198,917

Less Provision for Bad Debts (5,660) (12,746)

Prepaid Insurance - 19,720

148,808 207,891

Rates & Service Charges 30,150 -

Travel and Accommodation 21,093 16,033

Cash at Bank - Investment Account 5,461 -

Note 11 - Stock on Hand

Stocks on Hand - at Cost

Hotel 87,440 14,336

Quarry 359,881 82,280

Service Station 46,117 41,109

Nursery 1,470 1,772

Power Cards 10,540 5,330

505,488 144,827

18

Note 12 - Property, Plant and Equipment

(a) Year Ended 30 June 2013

Buildings and Improvements

Motor Vehicles

Plant and Equipment

Furniture and Fittings

Total

Basis of measurement

Revaluation & Cost

Revaluation Revaluation & Cost

Revaluation & Cost

Asset Values 2013 2013 2013 2013 2013

Balance at beginning of financial year 5,409,420 155,184 286,148 15,720 5,866,472

Additions at Cost - - 24,672 1,495 26167

Disposals - - - - -

Balance at end of financial year 5,409,420 155,184 310,820 17,215 5,892,638

Accumulated Depreciation

Balance at beginning of financial year 1,549,520 27,772 17,113 4,943 1,599,348

Depreciation provided in period 122,425 25,482 32,934 2,213 183,054

Disposals - - - - -

Balance at end of financial year 1,671,945 53,255 50,046 7,156 1,782402

Total Written down value at period end 3,737,476 101,929 269,774 10,059 4,110,238

The Company has used the following rates of depreciation to measure the useful life of fixed assets

Buildings & Improvements Range 2% - 10% Prime cost method

Motor Vehicles 20% Deminishing value method

Plant & Equipment Range 10% - 33.3% Deminishing value method

Furnitues & Fittings 20% Deminishing value method

Items under $1000 are fully expensed in the year of purchase.

(b) Year Ended 30 June 2012

Buildings and Improvements

Motor Vehicles

Plant and Equipment

Furniture and Fittings

Total

Basis of measurement

Revaluation Revaluation Revaluation & Cost

Revaluation

Asset Values 2012 2012 2012 2012 2012

Balance at beginning of financial year 696,823 16,052 12,759 5,000 730,633

Additions at Cost 2,810 - 4,415 7,723 14,948

Disposals - - - - -

Revaluation by Directors 2,216,661 87,764 - - 2,304,424


Accumulated Depreciation

Balance at beginning of financial year 41,382 4,683 3,645 2,753 52,463

Depreciation provided in period 96,072 23,089 13,468 2,190 31,277

Disposals - - - - -

Revaluation adjustment: 1,412,066 - - - -


Total Written down value at period end 3,859,900 127,412 269,035 10,777 4,267,124


19


Notes to Financial Statements (Continued) 2013 2012

$ $

Note 13 - Current Liabilities: Trade and other payables

Trade Creditors 298,265 120,028

Visa Corporate Card 2,889 2,826

Goods and Services Tax Payable (4,034) 48,099

Employee Wages 1,085 605

PAYG Withholding 13,096 13,222

Provision for Annual Leave 21,385 32,776

Unspent Grant Funding 71,428 381,129

Accrued Charges 13,750 17,345

417,865 616,030

Note 14 - Non-Current Liabilities: Trade and other payables

Provision for Long Service Leave 23,287 35,479

23,287 35,479

Note 15 - Contingent Liabilities

There are no known contingent liabilities of a significant nature

at balance date.

Note 16 - Issued Capital

No Issued Capital as the Company is Limited by guarantee.

Note 17 - Asset Revaluation Reserve

Opening Asset Revaluation Reserve 4,232,207 3,026,146

Increments - 1,206,061

Decrements - -

Closing Asset Revaluation Reserve 4,232,207 4,232,207

Note 18 - Retained Earnings

Opening Retained Earnings 492,405 417,100

Increments (Decrements)

Net profit (loss) attributable to members of the company (219,570) 75,305

Closing Retained Earnings 272,835 492,405

Note 19 - Commitments

Except tied grant funding, there are no known commitments of a

significant nature at balance date.

Note 20 - Auditors' Remuneration

Amounts received or due and receivable by auditors for

Auditing Services 11,000 11,000

Other Services 1,000 1,500

Total 12,000 12,500

20

Badu Island Foundation Ltd Annual Report 2013 2013 2012

$ $

Note 22 - Directors' Remuneration

Income paid or payable or otherwise made available in respect of the financial year to each director of

the Badu Island Foundation Ltd directly or indirectly from the entity or any related entity.

Manual Nomoa - -

Peo Ahmat - -

Wariba Seriat - -

Troy Stow - -

James Yorkston - -

- -

Note 23 - Financial Instruments

(a) Terms, conditions and accounting policies.

The company's accounting policies, including the terms and conditions of each class of financial

asset, financial liability and equity instrument, both recognised and unrecognised at the balance

date, are as follows:

Trade Receivables and Payables - Carried at nominal amounts due less any provision for doubtful

debts.

Credit sales/purchases are on 30 day terms.

(b) Interest rate risk.

The company is not exposed to interest rate risks as at balance date

(c) Net fair values.

No exposure to risk as at balance date.

(d) Credit risk exposures.

The company has no exposure to credit risk at balance date in relation to each class of

recognised financial asset. The carrying amount of those assets is at historical cost.

Both assets and liabilities are stated at actual value.

Notes to Financial Statements continued

Note 21 - Reconciliation of Cash Flow from Operating Activities with Operating Profit after Income Tax

Operating Profit (219,570) 75,305

Non Cash Flows in Operating Profit :

Depreciation of Property, Plant and Equipment 183,054 134,819

Loss on Sale of Non-Current Assets - -

Change in market Value of Investments - -

Changes in Assets and Liabilities

Decrease (Increase) in Trade Debtors 59,083 (178,767)

Decrease (Increase) in Other Receivables - (12,701)

(Increase) / decrease in Accrued Income - -

(Increase) / decrease in Stock on Hand (306,621) 128,245

Increase (Decrease) in Unearned Revenue - -

Increase (Decrease) In Inputs Tax Liability (51,133) 45,020

Increase (Decrease) in Payables (134,640) 316,695

Increase (Decrease) in Provision - Other (23,583) 1,930

Net Cash Provided by / (used in) Operating Activities (548,410) 510,547

21

Notes to Financial Statements continued


Note 24 - Events after the Balance Sheet Date

Note 25 - Company Details

The Registered Office of the Company is:-

c/- Bottoms English Lawyers

Cairns QLD 4870

The principal place of business of the company is:

Badu Business Centre, RM 6

Badu Island QLD 4875

The principal activities of the company are to run the various enterprises on

Badu Island for the benefit and welfare of the community of Badu Island.

These enterprises include the Badu Island Hotel, Badu Quarry, Badu Caltex

Service Station, Tama Mudh Motel, Badu Nursery and Landscaping and

Seaswift Freight Agency.

There are no material adjusting events after the balance sheet date.

22

Independence

I am independent of the company, and have complied with the independence requirements of the Corpora-tions Act 2001. In addition to my audit of the financial report, I was engaged to undertake the services dis-closed in the notes to the financial statements. The provision of these services has not impaired our independ-ence.

Auditor’s Opinion In my opinion, the financial report of Badu Island Foundation Ltd is in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the company’s financial position as at 30 June 2013 and of its perfor-mance for the year ended on that date in accordance with the accounting policies described in Note 1; and

(b) complying with Accounting Standards in Australia to the extent described in Note 1 and complying with the Corporations Regulation 2001.

Dated 9th September 2013

Peter F. McGrath FNTAA,

Company Auditor

Registration No 6112

I have audited the accompanying financial report, being a special purpose financial report, of Badu Island

Foundation Ltd for the year ended 30 June 2013. The financial report comprises the statement of financial

performance, statement of financial position as at 30 June 2013, statement of changes in equity, cash flow

statement, summary of significant accounting policies and other explanatory notes and the directors’ declara-

tion for the year then ended

Directors’ Responsibility for the Financial Report

The directors of the company are responsible for the preparation and fair presentation of the financial report and have determined that the accounting policies described in Note 1 to the financial statements which form part of the financial report are appropriate to meet the financial reporting requirements of the Corporations Act 2001 and are appropriate to meet the needs of the members. The directors’ responsibility also includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and ap-plying appropriate accounting policies; and making accounting estimates that are reasonable in the circum-stances.

Auditor's Responsibility

My responsibility is to express an opinion on the financial report based on our audit. No opinion is expressed as to whether the accounting policies used, as described in Note 1, are appropriate to meet the needs of the members. I have conducted my audit in accordance with Auditing standards in Australia. Those standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk as-sessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

The financial report has been prepared for distribution to members for the purpose of fulfilling the directors’ financial reporting responsibilities under the Corporations Act 2001. I disclaim any assumption of responsibility for any reliance on this report or on the financial report to which it relates to any person other than the mem-bers, or for any purpose other than that for which it was prepared.

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

Independent Audit Report on the Financial Report to Members of Badu Island Foundation Ltd

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