australian sports foundation charitable fund...in my opinion, the financial report of australian...

Australian Sports Foundation Charitable Fund ABN: 97 179 064 897 Financial Statements For the Period Ended 30 June 2019

GPO Box 707 CANBERRA ACT 2601 19 National Circuit BARTON ACT

Phone (02) 6203 7300 Fax (02) 6203 7777

Mark Stockwell Chairman, Board of Directors PO Box 176 BELCONNEN ACT 2616 AUSTRALIAN SPORTS FOUNDATION CHARITABLE FUND FINANCIAL REPORT 2018-19 AUDITOR’S INDEPENDENCE DECLARATION In relation to my audit of the financial report of the Australian Sports Foundation Charitable Fund for the period ended 30 June 2019, to the best of my knowledge and belief, there have been:

(i) no contraventions of the auditor independence requirements of the Australian Charities and Not-for-profits Commission Act 2012; and

(ii) no contravention of any applicable code of professional conduct.

Australian National Audit Office

Josephine Bushell Senior Director Delegate of the Auditor-General Canberra

GPO Box 707 CANBERRA ACT 2601 19 National Circuit BARTON ACT Phone (02) 6203 7300 Fax (02) 6203 7777

INDEPENDENT AUDITOR’S REPORT

To the members of Australian Sports Foundation Charitable Fund Opinion In my opinion, the financial report of Australian Sports Foundation Charitable Fund (‘the Trust’) for the year ended 30 June 2019 is 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 Trust’s financial position as at 30 June 2019 and of its performance for the period then ended; and

(b) complying with Australian Accounting Standards to the extend described in Note 1 and Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013.

The financial report of the Trust, which I have audited, comprises the following statements as at 30 June 2019 and for the year then ended:

• Statement of Comprehensive Income; • Statement of Financial Position; • Statement of Changes in Equity; • Statement of Cash Flows; • Notes to the financial statements, comprising a Summary of Significant Accounting Policies and

other explanatory information; and • Trustees’ Declaration.

Basis for opinion I conducted my audit in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report. I am independent of the Trust in accordance with the auditor independence requirements of the Australian Charities and Not-for-profits Commission Act 2012 and the relevant ethical requirements for financial report audits conducted by the Auditor-General and his delegates. These include the relevant independence requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) to the extent that they are not in conflict with the Auditor-General Act 1997. I have also fulfilled my other responsibilities in accordance with the Code. I confirm that the independence declaration required by the Australian Charities and Not-for-profits Commission Act 2012, which has been given to the directors of the Trustee, would be in the same terms if given to the directors of the Trustee as at the time of this auditor’s report.

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

Emphasis of matter – basis of accounting I draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the directors’ of the Trustee financial reporting responsibilities under the Australian Charities and Not-for-profits Commission Act 2012. As a result, the financial report may not be suitable for another purpose. My opinion is not modified in respect of this matter.

Directors’ responsibility for the financial report The directors of the Trustee are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Australian Charities and Not-for-profits Commission Act 2012 and for such internal control the directors of the Trustee determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors of the Trustee are responsible for assessing the ability of the Trust 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 of the Trustee either intend to liquidate the Trust or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial report My objective is to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian National Audit Office 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 National Audit Office Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors of the Trustee.

• Conclude on the appropriateness of the directors’ of the Trustee 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 Trust’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Trust 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.

I communicate with the directors of the Trustee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. Australian National Audit Office

Josephine Bushell Senior Director Delegate of the Auditor-General

Canberra

18 November 2019

Australian Sports Foundation Charitable Fund ABN: 97 179 064 897

Contents For the Period Ended 30 June 2019

Page

Financial Statements Statement of Comprehensive Income 1 Statement of Financial Position 2 Statement of Changes in Equity 3 Statement of Cash Flows 4 Notes to the Financial Statements 5 Trustees’ Declaration 10


Statement of Comprehensive Income For the Period Ended 30 June 2019

1

Note

2019 $

Revenue 2 53,503

Expenses 3 (141,760)

Surplus / (deficit) for the period

(88,257)

Other comprehensive income for the period -

Total comprehensive income for the period (88,257)

The above statement should be read in conjunction with the accompanying notes


Statement of Financial Position As At 30 June 2019

2

Note 2019

$ ASSETS CURRENT ASSETS Cash and cash equivalents 4

38 GST receivable 3,040 TOTAL CURRENT ASSETS

3,078 NON-CURRENT ASSETS

Intangible assets 5 80,000

TOTAL NON-CURRENT ASSETS 80,000

TOTAL ASSETS 83,078

LIABILITIES NON-CURRENT LIABILITIES

Intercompany payable 6 171,335 TOTAL NON-CURRENT LIABILITIES

171,335 TOTAL LIABILITIES

171,335 NET LIABILITIES

(88,257)

EQUITY

Accumulated losses (88,257)

TOTAL EQUITY (88,257) The above statement should be read in conjunction with the accompanying notes


Statement of Changes in Equity For the Period Ended 30 June 2019

3

2019

Accumulated losses

$ Total equity

$

Balance at the beginning of the period - -

Surplus / (deficit) for the period (88,257) (88,257)

Balance at 30 June 2019 (88,257) (88,257)


Australian Sports Foundation Charitable Fund

ABN: 97 179 064 897

Statement of Cash Flows

For the Period Ended 30 June 2019

4

Note

2019

$

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from donations 53,500

Donations paid (53,865)

Interest 3

Net cash provided by/(used in) operating activities (362)

CASH FLOWS FROM FINANCING ACTIVITIES:

Borrowings from parent entity 400

Net cash provided by/(used in) financing activities 400

Net increase/(decrease) in cash and cash equivalents held 38

Cash and cash equivalents at beginning of period -

Cash and cash equivalents at end of financial period 4 38



Notes to the Financial Statements For the Period Ended 30 June 2019

5

1 Summary of Significant Accounting Policies

Basis of Preparation

Australian Sports Foundation Charitable Fund (the ASF Charitable Fund) is a not-for-profit entity for the purpose of preparing the financial statements. The directors of the trustee company have prepared the financial statements on the basis that the ASF Charitable Fund is a non-reporting entity because there are no users dependent on general purpose financial statements. The financial statements are therefore special purpose financial statements that have been prepared in order to comply with the requirements of the trust deed.

The ASF Charitable Fund was established by the trust deed dated 4 July 2017 and was deemed to be operating from the date deductible gift recipient (DGR) status was granted from 1 July 2018. The period covered by the financial statements is therefore from 1 July 2018 to 30 June 2019.

The financial statements have been prepared in accordance with the Australian Charities and Not-for-profits Commission Act 2012, the recognition and measurement requirements specified by the Australian Accounting Standards and Interpretations and the disclosure requirements of AASB 101 Presentation of Financial Statements, AASB 107 Statement of Cash Flows, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, AASB 1048 Interpretation of Standards and AASB 1054 Australian Additional Disclosures and the significant accounting policies disclosed below, which the directors of the trustee have determined are appropriate to meet the purposes of preparation.

The financial statements, except for cash flow information, have been prepared on an accrual basis and are based on historical costs unless otherwise stated in the notes. The amounts presented in the financial statements have been rounded to the nearest dollar.

The financial statements were authorised for issue on the date of signing the attached Trustees’ Declaration.

Going Concern

The financial statements have been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and discharge of liabilities in the normal course of business.

As disclosed in the financial statements, the ASF Charitable Fund incurred a deficit of $88,257 and had net cash outflows from operating activities of $362 for the period ended 30 June 2019. As at that date the ASF Charitable Fund had net liabilities of $88,257.

The Directors believe that it is reasonably foreseeable that the ASF Charitable Fund will continue as a going concern and that it is appropriate to adopt the going concern basis in the preparation of the financial report after consideration of the following factors:

1. Monies lent by ASF to ASF Charitable Fund to assist with its operating expenses are not repayable until such time that the ASF Board deem ASF Charitable Fund is in a sufficient financial position to make repayments: and no earlier than 12 months from the date of that resolution; and

2. ASF will provide ongoing financial support to ASF Charitable Fund until such time as it is financially self-sustaining.

Accounting Policies

(a) New, Revised or Amended Accounting Standards Adopted

During the year the ASF Charitable Fund adopted all of the recognition and measurement requirements of new,revised or amended accounting standards issued by the Australian Accounting Standards Board that were mandatory.The introduction of the new and revised standards has not had any impact during the period on the statement offinancial position or statement of profit or loss and other comprehensive income of the ASF Charitable Fund.

(b) Income Tax

The income of the ASF Charitable Fund is exempt from income tax under Division 50 of the Income Tax AssessmentAct 1997.



6

1 Summary of Significant Accounting Policies (continued)

(c) Revenue Recognition Revenue arising from the contribution of assets in the form of donations and grants to the ASF Charitable Fund is recognised when: • the ASF Charitable Fund obtains control of the contribution or has the right to receive the contribution unconditionally; • it is probable that the economic benefits comprising the contribution will flow to the ASF Charitable Fund; • the amount of the contribution can be reliably measured.

The ASF Charitable Fund receives donations from individual and corporate philanthropists and distributions from ancillary funds. These donations create the funding pool for the ASF Charitable Fund to make discretionary grants to eligible organisations in respect of sporting projects. The ASF Charitable Fund retains a small percentage of donations to cover administrative overheads. The amounts retained are recognised immediately on receipt of the donation.

Interest revenue is recognised using the effective interest method as set out in AASB 9 Financial Instruments: Recognition and Measurement.

(d) Cash and Cash Equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less.

(e) Financial Liabilities

The Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (irrespective of having been invoiced).

(e) Intangibles

The ASF Charitable Fund’s intangibles comprise purchased software and internally generated software for internal use. Purchase of intangibles are recognised at cost in the Statement of Financial Position, except for purchases costing less than $1,000 which are expensed in the year of acquisition (other than when they form part of a group of similar items which are significant in total). These assets are carried at cost less accumulated amortisation and accumulated impairment losses. Intangibles are amortised on a straight-line basis over its anticipated useful life. The useful lives of the ASF Charitable Fund’s intangibles are 2 to 4 years.

(f) Impairment

All assets were assessed for impairment at 30 June 2019 and none were found to be impaired.

(g) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position. Cash flows are presented on a gross basis.



7

1 Summary of Significant Accounting Policies (continued)

(h) Grants Payable

The ASF Charitable Fund makes grant payments to registered sporting, community, educational and other eligible organisations, and athletes to facilitate the development of sport in Australia. Grants are made at the discretion of the ASF Charitable Fund and only after meeting criteria set out in its guidelines. Unissued Grants related to the current financial year are recognised as a liability at 30 June 2019.

Significant Accounting and Judgement Estimates

In the process of applying the accounting policies listed in the note, no judgements have been made that have a significant impact on the amounts recorded in the financial statements. No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

2 Revenue

2019

$

Donations received 50,825

ASF Retention 2,675

Interest received 3

53,503

3 Expenses

2019

$ Grants paid 50,825 Legal fees 57,836 Marketing expenses 9,426 Training expenses 16,900 Other expenses 6,773

141,760

4 Cash and Cash Equivalents

2019

$

Cash at bank 38



8

5 Intangible Assets

2019

$ Software Work in progress 80,000 80,000

Movements in carrying amounts

Movement in the carrying amounts for each class of intangible assets between the beginning and the end of the current period:

Software -Work in

progress $

Total $

Year ended 30 June 2019 Balance at the beginning of the period - - Additions 80,000 80,000 Disposals - - Amortisation - -

Balance at the end of the period

80,000 80,000

6 Intercompany payable

2019

$

Amounts payable to the parent entity 171,335

Financial support in the form of long-term funding from the parent entity (Australian Sports Foundation Limited) has been provided for the start-up phase of the ASF Charitable Fund. The intercompany payable is interest-free and a formalised resolution of the Australian Sports Foundation Limited Board is in place that provides discretion to forgive the loan at any point. Australian Sports Foundation Limited has resolved that the intercompany payable will not be called within the next twelve months of the date of this report. The intercompany payable had not been called at the date of these financial statements

7 Contingent Liabilities

The company had no contingent liabilities as at 30 June 2019.

8 Commitments

The company had no commitments for expenditure as at 30 June 2019.



9

9 Events after the reporting period

No matter or circumstance has arisen since 30 June 2019 that has significantly affected, or may significantly affect the company's operations, the results of those operations, or the company's state of affairs in future financial years.

10 Reconciliation of surplus after income tax to net cash from operating activities

2019 $

Deficit for the period (88,257)

Change in operating assets and liabilities: Increase in trade and other receivables (3,040) Increase in non-current assets (80,000) Increase in trade or other payables 170,935 Net cash from operating activities (362)


Trustees’ Declaration

10

The directors of the trustee company declare that:

1. The financial statements and notes, as set out on pages 1 to 9, are in accordance with the trust deed, and:

(a) comply with Division 60 of the Australian Charities and Not-for-profits Commission Act 2012 and AccountingPolicies as described in Note 1; and

(b) give a true and fair view of the ASF Charitable Fund’s financial position as at 30 June 2019 and of its performancefor the period ended on that date.

2. There are reasonable grounds to believe that the ASF Charitable Fund will be able to pay its debts as and when theybecome due and payable.

This declaration is made in accordance with a resolution of the directors.

Mark Stockwell Director

13 November 2019

Jodie Constable

australian sports foundation charitable fund...in my opinion, the financial report of australian...

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