queen victoria home...- 10 - the queen victoria home inc. balance sheet as at 30 june 2014 notes...

Queen Victoria Home ABN 55 721 195 489

Financial Statements

For the Year Ended 30 June 2014

- 3 -

THE QUEEN VICTORIA HOME INC.

Statement by Members of the Board In the opinion of the Board of The Queen Victoria Home Incorporated we state that:

(a) The accompanying financial statements and notes of The Queen Victoria Home Inc:

(i) give a true and fair view of the Home’s financial position as at 30 June 2014 and of its performance for the year ended on that date;

(ii) are prepared in accordance with the Associations Incorporation Act (Tas)

and comply with Accounting Standards; and

(b) At the date of this statement there are reasonable grounds to believe that The Queen Victoria Home Incorporated will be able to pay its debts as and when they become due and payable.

- 9 -


STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2014

Notes 2014

$ 2013

$

REVENUE 2 10,589,891 9,729,646

Fair Value Adjustment of Investment Property 2 (1,139,189) (73,659)

Depreciation and Amortisation Expense 3 (349,992) (335,644)

Interest Expense 3 (16,301) (7,357)

Salaries and Employee Benefits Expense 3 (7,400,742) (7,104,548)

Consumables Used 3 (745,269) (712,982)

Other Expenses 3 (1,593,363) (1,454,747)

SURPLUS/(DEFICIT) FOR THE PERIOD (654,965) 40,709

OTHER COMPREHENSIVE INCOME - -

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

(654,965) 40,709

The accompanying notes form part of these accounts

- 10 -


BALANCE SHEET

AS AT 30 JUNE 2014

Notes 2014

$ 2013

$ CURRENT ASSETS

Cash 16(b) 2,612,030 2,357,965

Receivables 4 246,422 179,428

Inventories 5 20,357 16,299

Investment Property 8 103,036 1,723

Other 6 163,534 106,273

TOTAL CURRENT ASSETS 3,145,379 2,661,688

NON-CURRENT ASSETS

Property, Plant & Equipment 7 11,064,294 12,663,949

Investment Property 8 14,066,200 10,928,400

TOTAL NON-CURRENT ASSETS 25,130,494 23,592,349

TOTAL ASSETS 28,275,873 26,254,037

CURRENT LIABILITIES

Payables 9 658,675 714,517

Provisions 10 1,004,169 1,034,156

Other 11 2,376,101 1,944,340

TOTAL CURRENT LIABILITIES 4,038,945 3,693,013

NON-CURRENT LIABILITIES

Provisions 12 241,140 229,223

Other 13 14,466,717 12,146,265

TOTAL NON-CURRENT LIABILITIES 14,707,857 12,375,488

TOTAL LIABILITIES 18,746,802 16,068,501

NET ASSETS 9,529,071 10,185,536

EQUITY

Reserves 15 1,683,411 2,722,747

Retained Surpluses 15 7,845,660 7,462,789

TOTAL EQUITY 9,529,071 10,185,536


- 11 -


STATEMENT OF CHANGES IN EQUITY


2014

$ 2013

$

RETAINED SURPLUSES

Opening Balance 7,462,789 7,434,259

Add Current Year Surplus/(Deficit) (654,965) 40,709

Add Transfer from Capital Subsidies Reserve 1,048,759 -

Less Transfer to QVH Research and Scholarship Fund (Notional Interest)

(10,923)

(12,179)

Total Retained Surpluses 7,845,660 7,462,789

QUEEN VICTORIA HOME RESEARCH AND SCHOLARSHIP FUND

Opening Balance 270,129 258,700

Scholarships Paid (1,500) (750)

Add Transfer from Retained Profits (Notional Interest) 10,923 12,179

Total Queen Victoria Home Research Fund 279,552 270,129

CAPITAL SUBSIDIES RESERVE


Less Transfer to Retained Surpluses (1,048,759) -

Total Capital Subsidies Reserve - 1,048,759

OTHER RESERVES 1,403,859 2,452,618

TOTAL RESERVES 1,683,411 2,722,747


- 12 -


STATEMENT OF CASH FLOWS


Note 2014

$ 2013

$ CASH FLOW FROM OPERATING ACTIVITIES

Receipts from Residents 2,922,297 2,818,045

Receipts from Government Subsidies 5,642,591 5,176,403

Receipts from Donations/Fundraising 69,624 25,490

Receipts from Retention Fees 343,963 316,988

Receipts from Grant Funding Bodies 90,595 4,075

Receipts from Other Activities 1,348,169 1,156,209

Interest Received 111,668 252,502

Interest Paid (12,481) (8,107)

Payments to Suppliers and Employees (9,888,273) (9,174,688)

NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES

16(a) 628,153 566,917

CASH FLOW FROM INVESTING ACTIVITIES

Receipts from Resident Capital Contributions 2,828,692 335,625

Purchase Investment Property (2,449,557) (153,659)

Purchase Property, Plant & Equipment (679,081) (1,986,399)

NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES

(299,946) (1,804,433)

CASH FLOW FROM FINANCING ACTIVITIES

Net Resident Bonds Increase/(Decrease) (74,142) (477,343)

NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES

(74,142) (477,343)

NET INCREASE (DECREASE) IN CASH HELD 254,065 (1,714,859)

Add Opening Cash Brought Forward 2,357,965 4,072,824

CLOSING CASH CARRIED FORWARD 16(b) 2,612,030 2,357,965


- 13 -


NOTES TO AND FORMING PART OF THE ACCOUNTS


1. SUMMARY OF ACCOUNTING POLICIES

Basis of accounting The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards. Other mandatory professional reporting requirements have also been complied with including the Associations Incorporations Act (Tas). The association is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards.

The financial statements, except for cash flow information, 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. The amounts presented in the financial statements have been rounded off to the nearest dollar unless stated otherwise.

(a) Statement of Compliance:

The financial report complies with Australian Accounting Standards and International Financial Reporting Standards.

(b) Inventories: Inventories are valued at the lower of cost and net realisable value.

(c) Income Tax:

The Home is deemed exempt from income tax on its profits. (d) Impairment of Non-Financial Assets

At each reporting date, the Home assesses whether there is any indication that an asset may be impaired. Where an indicator of impairment exists, the Home makes an estimate of recoverable amount. Where the carrying amount of an asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount.

Recoverable amount is the greater of fair value less costs to sell and value in use. It is determined on an individual asset basis, unless the asset's value in use cannot be estimated to be close to its fair value less costs to sell and it does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Where the future economic benefits of the asset are not primarily dependent upon the asset’s ability to generate net cash inflows and when the entity would, if deprived of the asset, replace its remaining future economic benefits, value in use is determined as the depreciated replacement cost of an asset.

- 14 -




1. SUMMARY OF ACCOUNTING POLICIES (Cont’d) (e) Property, Plant and Equipment:

Cost and Valuation:

All items of property, plant and equipment, including land and buildings are measured at cost. Depreciation:

Depreciation is provided on property, plant and equipment, including freehold buildings, but excluding land. Depreciation is calculated so as to write off the net cost to the Home of each asset during its expected economic life. Depreciation is provided on a straight-line basis for all classes for which depreciation is charged.

Work in progress remains undepreciated until such time as the project has been fully completed when it is allocated to an appropriate cost account and depreciated accordingly.

Major depreciation periods are: - Buildings 50 years - Motor Vehicles 5 years - Furniture & Fittings 10 years - Plant & Equipment 10 years - Computer Equipment 3 years

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

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are recognised in profit or loss when the item is derecognised.

(f) Investment Properties: Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition investment buildings are stated at fair value. Gains or losses arising from changes in fair value of investment buildings are included in profit and loss in the year in which they arise.

Independent valuations are performed with sufficient regularity to ensure that the carrying amount of property and investment buildings does not differ materially from the asset’s fair value at balance sheet date.

(g) Revenue recognition: Revenue is recognised to the extent that it is probable that the economic benefits will flow to the entity and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised: Government Subsidies: Control of the right to receive the subsidy in accordance with any attached conditions.

- 15 -




1. SUMMARY OF ACCOUNTING POLICIES (Cont’d)

(g) Revenue Recognition: (cont’d)

Resident Fees: Control of the right to receive the fees.

Interest: Interest received is recognised as it accrues, using the effective interest rate method.

(h) Capital Subsidies Reserve:

Under the terms and conditions of Upgrading Grants, for a set period dependent on the amount of monies received, the Minister retains the right to recover the grant (or an amount “equivalent in value”) in the event of the Home ceasing to be an eligible organisation or any non-compliance with grant terms and conditions. In addition, the written consent of the Minister must be obtained in any dealings with title. These grants have been classified as equity in the Balance Sheet. Clarification was received from the Federal Government that the claw back period in relation to the upgrading grants has ceased. At 30 June 2014, the Capital Subsidies Reserve was transferred to Retained Surpluses.

(i) Provision for Employee Entitlements:

Provision is made for employee entitlement benefits accumulated as a result of employees rendering services up to the reporting date. Provision is made in respect of the Home’s liability for annual leave, long service leave and sick leave based on remuneration rates which are expected to be paid when the liability is settled.

Provision for sick leave has been made in recognition of the Home’s exposure to payments in respect of cumulative sick leave entitlements arising from prior years of service. Provision for sick leave has been made on the basis of two months of the average sick leave taken during the financial year.

All liabilities arising in respect of wages and salaries, annual leave, sick leave, long service leave and any other employee entitlements expected to be settled within 12 months are measured at their nominal amounts. All other employee benefit liabilities are measured at the present value of the estimated future cash outflow to be made in respect of services provided by employees up to reporting date.

(j) Cash:

Cash on hand and in banks and short term deposits are stated at nominal value.

For the purpose of the Statement of Cash Flows, cash includes cash on hand, deposits held at-call with banks, other short-term highly liquid investments with original maturity of three months or less.

(k) Investments:

Investments are shown at cost. Interest is recognised as income when it is earned.

- 16 -





(l) Financial Instruments:

Receivables: Receivables are carried at nominal amounts due. Receivables are expensed when collection of the amount owing is not probable. Resident Fees are billed on 30 day terms. Trade Creditors and Other: Liabilities for trade creditors and other amounts are carried at cost which is the fair value of the consideration to be paid in the future for goods and services received, whether or not billed to the Home. Trade liabilities are normally settled on 30 day terms.

Investments: Investments are carried at nominal amounts. Interest is taken up as income on an accrual basis.

Entry Contributions: Incoming Entry and Capital Contributions and Accommodation Bonds are carried at nominal amounts. Retention Fees are taken up as income on an accrual basis. Interest is charged and calculated on outstanding accommodation bond balances.

Loans: All loans are measured at the principal amount. Borrowing costs that are directly attributable to the construction of building facilities of the Home have been capitalised as part of the cost of the asset. All other interest is charged as an expense as it accrues.

(m) Exempt Deposit Building Fund:

The Exempt deposit fund was established in the financial year ended 30 June 2004 with Ministerial approval. Deposits made by residents into the fund may allow residents to improve their pension entitlements and/or to reduce or avoid income tested fees. The interest earned on the deposit must be spent by the Home for capital works or other capital items associated with the provision of aged care. The deposits are invested in secure, low-risk investments and must be repaid to the resident on 7 day terms.

From 1 January 2010 deposits into exempt deposit building funds were no longer exempt from the deeming provisions of the Social Securities Act, meaning there is no benefit to placing money within this fund, as such it is unlikely that any deposits will be received after this date. All existing deposits will remain exempt.

(n) Borrowing Costs:

Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

- 17 -





(o) 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 balance sheet.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers.

(p) Critical Accounting Estimates and Judgements:

The Board evaluates estimates and judgements incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Home.

Key Estimates

i. Impairment

The assets of the association are assessed for impairment when events or changes in circumstances indicate that the assets’ carrying values may not be recoverable.

Key Judgements

i. Employee Benefits

As the association expects that all of its employees would use all of their annual leave entitlements earned during a reporting period before 12 months after the end of the reporting period, the Board considers that obligations for annual leave entitlements satisfy the definition of short-term employee benefits and, therefore, can be measured at the (undiscounted) amounts expected to be paid to employees when the obligations are settled.

(q) Comparatives:

Where applicable, prior year comparatives have been changed to be consistent with allocations of the current year.

(r) New Accounting Standards for Application in Future Periods:

Australian Accounting Standards that have recently been issued or amended but are not yet mandatory, have not been early adopted by the company for the annual reporting period ended 30 June 2014. The company has not yet assessed the impact of these new or amended Accounting Standards or Interpretations.

- 18 -




Notes 2014

$ 2013

$

2. REVENUE FROM ORDINARY ACTIVITIES

(a) Revenues from ordinary activities

Revenue from operating activities

Government Subsidies and Conditional Payments 5,606,760 5,179,463

Resident Fees 2,971,096 2,841,246

Meals 59,145 53,662

Special Catering 3,017 2,183

Day Therapy 4,136 4,075

Care Coordination 74,168 -

Therapy Service Programs 18,558 20,270

Retention fees - Accommodation Bonds (Low Care) 65,208 79,994

Retention fees - Entry Contributions (Independent Living) 278,755 236,994

Daily Accommodation Charge 724,586 649,579

Accommodation Supplements 298,931 321,167

Total revenues from operating activities 10,104,360 9,388,633

Revenue from non-operating activities

Art Group Income 5,080 4,310

Kiosk 8,252 9,550

Training 160,840 53,602

Teaching Aged Care Facility 17,250 27,160

Sundry 77,765 10,108

Rent 39,962 33,229

Gain/(Loss) from Disposal of Assets (3,545) (29,579)

Donations and Bequests 52,551 8,582

Fundraising 16,851 16,908

Interest - Investments 68,083 142,459

Interest - Exempt Deposit Fund 8,211 10,140

Interest - Accommodation Bonds 34,231 54,544

Total revenues from non-operating activities 485,531 341,013

Total revenues from ordinary activities 10,589,891 9,729,646

- 19 -




Notes 2014

$ 2013

$ 2. REVENUE FROM ORDINARY ACTIVITIES

(b) Specific Items

Profit includes the following specific revenues whose disclosure is relevant in explaining the financial performance of the entity:

Donations, Bequests and Fundraising 69,402 25,490

(c) Fair Value Adjustment

Fair value adjustment reflects the fair value movement of self-care units deemed investment properties:

Victoria Mews

Fair Value Adjustment 8,089 (70,049)

Victoria Court

Fair Value Adjustment (75,000) (3,610)

Victoria Esplanade Fair Value Adjustment

(1,173,591)

-

Quarry Court Land

Fair Value Adjustment 101,313 -

Total fair value adjustment (1,139,189) (73,659)

3. EXPENSES

Depreciation of non-current assets

Plant and Equipment 25,452 20,562

Furniture and Fittings 16,762 12,356

Buildings 253,692 263,696

Motor Vehicles 7,307 7,309

Computer Equipment 46,779 31,721

Total depreciation expenses 349,992 335,644

Interest expense

Interest Expense – Accommodation Bonds Refunded 10,392 7,357

Interest Expenses – Esplanade Development Loan 5,909 -

Total interest expense 16,301 7,357

Salaries and employee benefits

Salaries and Wages 5,774,766 5,585,251

Provision for Employee Leave Entitlements 976,334 896,400

Other Salary On-Costs 649,642 622,897

Total salaries and employee benefits expense 7,400,742 7,104,548

- 20 -




Notes 2014

$ 2013

$ 3. EXPENSES

Consumables

Catering 544,001 520,228

Incontinence 72,892 79,245

Other Care Expenses 128,376 113,509

Total Consumables Expense 745,269 712,982

Other Operating Expenses from Ordinary Activities

Workers Compensation 334,125 283,128

Administration 121,898 104,947

Contract Staff 90,100 97,306

Therapy 10,480 8,358

Laundry 3,427 949

General Overheads 106,702 172,771

Staff Training 89,973 68,596

Utilities 367,815 337,389

Cleaning 63,826 43,652

Chemicals 28,188 28,172

Motor Vehicle and Bus Expenses 12,679 14,903

Repairs & Maintenance 217,997 166,705

Volunteers Program 4,373 4,233

Gardens and Grounds 84,226 74,711

Waste Management 35,914 29,124

Resident Activities 3,025 2,677

Community Therapy Program 1,392 332

Kiosk 4,960 5,840

Rental - 741

Special Catering 12,263 10,213

Total Other Expenses from Ordinary Activities 1,593,363 1,454,747

- 21 -




Notes 2014 $

2013 $

4. RECEIVABLES (CURRENT)

Sundry Debtors & Accruals 4(a) 72,157 33,565

Residents Fees 150,747 103,510

Goods and Services Tax 23,518 42,353

246,422 179,428

(a) Terms & Conditions

Sundry debtors and other receivables are non- interest bearing and have repayment terms between 30 & 90 days.

5. INVENTORIES (CURRENT)

Kitchen Stock 15,188 13,061

Chemical Stock 2,086 1,186

Kiosk Stock 3,083 2,052

20,357 16,299

6. OTHER CURRENT ASSETS

Prepayments 163,534 103,773

Cash Clearing - 2,500

163,534 106,273

7. PROPERTY, PLANT AND EQUIPMENT

Freehold Land at cost

Milford Street 65,982 65,982

Total Land 7(a) 65,982 65,982

Buildings at cost

Milford Street 544,238 544,238

Milford Street – Improvements 11,836,939 11,804,148

Accumulated depreciation (3,717,314) (3,470,019)

8,663,863 8,878,367

8 Bay Road – Lindisfarne 492,854 492,854

14 Bay Road – Lindisfarne 466,961 466,961

187 East Derwent Hwy – Lindisfarne 316,479 316,479

53 Lincoln Street – Lindisfarne 349,065 -

Accumulated Depreciation (29,017) (22,620)

1,596,342 1,253,674

Total Buildings 7(a) 10,260,205 10,132,041

- 22 -




Notes 2014

$ 2013

$ 7. PROPERTY, PLANT & EQUIPMENT (Cont’d) Capital Work In Progress Work in Progress 7(a) 93,016 2,003,709

Total Land and Buildings 10,419,203 12,201,732

Plant and Equipment

At Cost - Milford Street 1,460,059 1,392,134

- Quarry Court 2,432 2,432

Accumulated Depreciation (1,147,599) (1,122,147)

7(a) 314,892 272,419

Furniture and Fittings:

At Cost - Milford Street 890,309 817,870

- Quarry Court 39,983 39,983


7(a) 182,037 126,360

Motor Vehicles and Buses

At Cost 175,032 175,032


7(a) 19,168 26,475

Computer Equipment

At Cost 776,352 637,543


7(a) 128,994 36,963

Total Property, Plant and Equipment 11,064,294 12,663,949

(a) Reconciliations

Reconciliations of the carrying amounts of freehold land, buildings, plant and equipment at the beginning and end of the current financial year.

Freehold Land

Carrying Amount at Beginning 65,982 65,982

Carrying Amount at End 65,982 65,982

- 23 -




Notes 2014

$ 2013

$ 7. PROPERTY, PLANT & EQUIPMENT (Cont’d)

Buildings

Carrying Amount at Beginning 10,132,041 10,424,009

Additions 381,856 879,776

Disposals - (908,048)

Depreciation Expense (253,692) (263,696)

10, 260,205 10,132,041

Capital Work In Progress

Carrying Amount at Beginning 2,003,709 78,300

Additions 18,051 1,055,409

Transfer to Investment Property (1,928,745) 870,000

93,015 2,003,709

Plant and equipment


Additions 67,925 29,874


314,892 272,419

Furniture and Fittings


Additions 72,439 15,684


182,037 126,360

Motor Vehicles



19,168 26,475

Computer Equipment


Additions 138,810 5,656


128,994 36,963

- 24 -




8. INVESTMENT PROPERTY

Investment properties are stated at fair value, which has been determined based on valuations performed by Saunders and Pitt as at 30 June 2014.

The valuation undertaken was based on a market value for the property having been developed to obtain maximum return to the Queen Victoria Home after taking into account the estimated costs of sale. It is supported by market evidence in which assets could be exchanged between a knowledgeable willing buyer and a knowledgeable willing seller in an arm’s length transaction at the date of valuation, in accordance with Australian Valuation Standards.

Notes 2014 $

2013 $

CURRENT:

Quarry Court

Opening Balance 1,723 1,723

Revaluation/(Devaluation) 101,313 -

Closing Balance per Valuation 103,036 1,723

Total Current Investment Property 103,036 1,723

NON-CURRENT:

Victoria Mews


Improvements 86,911 150,049

Revaluation/(Devaluation) 8,089 (70,049)

Closing Balance per Valuation 7,535,600 7,440,600

Victoria Court


Improvements - 3,610

Revaluation/(Devaluation) (75,000) (3,610)

Closing Balance per Valuation 3,412,800 3,487,800

Esplanade

Opening Balance - -

Transfer from Capital Works in Progress 1,928,745

Improvements 2,362,646 -

Revaluation/(Devaluation) (1,173,591) -

Closing Balance per Valuation 3,117,800 -

Total Non-Current Investment Property 14,066,200 10,928,400

- 25 -




Notes 2014

$ 2013

$

9. PAYABLES (CURRENT)

Trade Creditors 9(a) 177,851 205,916

Sundry Creditors and Accruals 9(a) 464,020 490,234

Residents Fees 16,804 18,367

658,675 714,517

(a) Terms & Conditions

(i) Trade creditors are non-interest bearing and are normally settled on 30 day terms

(ii) Other creditors are non-interest bearing

10. PROVISIONS (CURRENT)

Employee Entitlements

Annual Leave 574,540 561,431

Long Service Leave 374,456 432,267

Sick Leave 55,173 40,458

1,004,169 1,034,156

11. OTHER LIABILITIES (CURRENT)

Staff Funds 5,330 7,669

Accommodation Bonds 11(b) 688,300 745,200

Entry Contributions Held in Trust 11(a) 59,500 59,500

Capital Contributions - Independent Living 11(b) 1,398,300 907,300

Exempt Deposit Building Fund 1(l) 224,671 224,671

2,376,101 1,944,340

(a) Refunds are generally made from the proceeds of incoming Accommodation Bonds and Capital Contributions.

(b) Accommodation bonds and capital contributions are classified as current and non-current despite the home not having an unconditional right to defer settlement for greater than 12 months. The allocation of current and non-current is based on modeling the repayment history over the previous five years. This is deemed to be reflective of the expected repayment given the uncertainty regarding residents’ contractual relationships with the Home.

12. PROVISIONS (NON-CURRENT)

Employee Entitlements

Long Service Leave 241,140 229,223

241,140 229,223

13.OTHER LIABILITIES (NON -CURRENT)

Capital Contributions 11(b) 10,894,165 8,556,472

Accommodation Bonds 11(b) 3,572,552 3,589,793

14,466,717 12,146,265

14. INTANGIBLES

Bed Licenses

At Cost 315,253 315,253


- -

- 26 -




Notes 2014

$ 2013

$

15. RESERVES AND RETAINED SURPLUSES

Capital Funds Reserve 15(a) 515,911 515,911

General Reserve 15(b) 887,948 887,948

Queen Victoria Home Research and Scholarship Fund

15(c) 279,552 270,129

Capital Subsidies Reserve 15(d) - 1,048,759

1,683,411 2,722,747

Retained Surpluses 15(e) 7,845,660 7,462,789

(a) Capital Funds

(i) Nature and purpose of reserve

The capital profits reserve is used to accumulate realised capital profits.

(ii) Movements in reserve

Balance at beginning of year 515,911 515,911

Balance at end of year 515,911 515,911

(b) General


The general reserve contains amounts of retained profits that have been set aside by Directors for the purpose of funding specific projects that are announced from time to time.


Balance at Beginning of Year 887,948 887,948

Balance at End of Year 887,948 887,948

(c) Queen Victoria Home Research and Scholarship Fund


The Queen Victoria Home Research and Scholarship Fund contains amounts of donations that have been set aside by Directors for the purpose of funding scholarships and research related to aged care.


Balance at Beginning of Year 270,129 258,700

Interest Paid Out (1,500) (750)

Add Transfer from Retained Surpluses (Notional Interest)

10,923 12,179

Balance at End of Year 279,552 270,129

- 27 -




(d) Capital Subsidies Reserve


Contains Grants provided by the Commonwealth for capital works. The amounts are recorded separately due to certain conditions attached to the grant funds. Notes 2014

$ 2013

$ (ii) Movements in reserve

Balance at Beginning of Year 1,048,759 1,048,759

Transfer to Retained Surpluses (1,048,759) -

Balance at End of Year - 1,048,759

(e) Retained Surpluses

Retained Surpluses at the Beginning of the Year 7,462,789 7,434,259

Net Surplus/(Deficit) Attributable to Members of the Queen Victoria Home Inc

(654,965) 40,709

Transfer to QVH Research and Scholarship Fund (Notional Interest)

(10,923) (12,179)

Transfer from Capital Subsidies Reserve 1,048,759 -

Balance at end of year 7,845,660 7,462,789

16. STATEMENT OF CASH FLOWS

(a) Reconciliation of net surplus/(deficit) to the net cash flows from operations

Net Surplus/(Deficit) (654,965) 40,709

Non-cash items

Depreciation of Non-Current Assets 349,992 335,643

Fair Value Adjustment - 73,659

Loss on Revaluation of Investment Properties 1,139,189 38,050

Changes in Assets and Liabilities:

(Increase)/decrease in Inventory (4,058) 1,558

(Increase)/decrease in Receivables (56,537) (35,712)

(Increase)/decrease in Prepayments (59,761) (15,215)

(Decrease)/increase in Trade and Other Creditors (67,141) 57,478

(Decrease)/increase in Other Current Liabilities (497) (150)

(Decrease)/increase in Provision for Annual Leave 13,109 40,587

(Decrease)/increase in Provision for Long Service Leave (45,894) 16,025

(Decrease)/increase in Sick Leave 14,716 14,285

Net cash flow from (used in) Operating Activities 628,153 566,917

(b) Reconciliation of cash

Cash balance comprises

Bank Account / (Overdraft) 2,678 3,881

CW Bank - Cheque A/c 1,148 1,611

Cash Management Account 146,900 260,987

Term Deposits 2,135,704 2,082,946

Cash on Hand 1,350 1,540

Cash Management CBA 324,250 7,000

Closing Cash Balance 2,612,030 2,357,965

- 28 -




2014

$

2013

$

17. AUDITORS REMUNERATION

Amounts paid or due and payable by The Queen Victoria Home Inc. for:-

- An audit or review of the financial report of the entity 13,800

16,400

- Other services in relation to the entity 1,110 1,380

14,910 17,780

18. CONTINGENT ASSETS AND LIABILITIES

No event has occurred during or since the financial year which requires the disclosure of a contingent asset or liability.

19. EXPENDITURE COMMITMENTS

Capital Expenditure Commitments

Queen Victoria Home did not have any contractual obligations at 30 June 2014.

20. RELATED PARTY DISCLOSURE

Directors

The directors of The Queen Victoria Home Inc during the financial year were:

K. Stewart Chairman

T. Ellis

M. Bratt

R. Morgan

A. Blee

T. Bailey

R. Webster P. Top J. Oakley

(a) M. Bratt received remuneration for his role as CEO of the Home and subsequently as a consultant for part of the financial year to February 2014 when he retired.

No remuneration was paid to any of the Board Members of The Queen Victoria Home Inc. in their capacity as Board Members.

(b) No related party transactions of any kind, including loans to or from directors, occurred during the 2014 financial year (2013: Nil).

- 29 -




21. SIGNIFICANT EVENTS AFTER BALANCE DATE There has been no matter or circumstance that has arisen since the end of the financial year that has significantly affected, or may significantly affect the Home's operations in future financial years, the results of those operations or the Home's state of affairs in future financial years.

22. SIGNICANT CHANGES IN THE STATE OF AFFAIRS During the year there were no significant changes in the state of affairs.

23. DESCRIPTION OF OPERATIONS The principal activities of the Home are to provide residential aged care, independent living support, and associated facilities for the benefit of the community.

24. REGISTERED OFFICE Milford Street Lindisfarne TAS

PO Box 20

Lindisfarne TAS 7015

- 30 -




25. SEGMENT REPORTING

INCOME STATEMENT

Residential Aged Care Independent Living Total as Reported in the Income Statement

2014 2013 2014 2013 2014 2013 $ $ $ $ $ $ Revenue Resident Fees 2,738,638 2,621,827 266,432 219,418 3,005,070 2,841,245 Government Subsidies

5,540,907

5,108,502

65,853

70,961

5,606,760

5,179,463

Other Income 1,556,309 1,404,831 421,752 304,102 1,978,061 1,708,933 Fair Value Adjustment

-

-

(1,139,189)

(73,659)

(1,139,189)

(73,659)

Total Revenue 9,835,854 9,135,160 (385,152) 520,822 9,450,702 9,655,982 Expenses Salaries and Employee Benefits

7,303,975

7,019,971

96,768

84,578

7,400,743

7,104,549

Depreciation 346,862 267,381 3,130 68,262 349,992 335,643 Other Expenses 2,251,234 2,097,256 103,697 77,825 2,354,931 2,175,081 Total Expenses 9,902,071 9,384,608 203,595 230,665 10,105,666 9,615,273 Net Surplus/ (Deficit)

(66,217) (249,448) (588,747) 290,157 (654,965) 40,709

BALANCE SHEET Assets Current Assets 1,545,690 999,345 1,496,653 1,660,621 3,042,343 2,659,966 Property, Plant and Equipment 11,015,840 12,548,916 14,217,690 11,045,155 25,233,530 23,594,071 Total Assets 12,561,530 13,548,261 15,714,343 12,705,776 28,275,873 26,254,037 Liabilities Current 2,573,838 2,457,083 1,465,107 1,157,754 4,038,945 3,614,837 Non-Current 3,811,173 4,127,627 10,896,684 8,326,037 14,707,857 12,453,664 Total Liabilities 6,385,011 6,584,710 12,361,791 9,483,791 18,746,802 16,068,501 Net Assets 6,176,519 6,963,551 3,352,552 3,221,985 9,529,071 10,185,536

- 31 -



FOR THE YEAR ENDED 30 JUNE 2014 26. FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES The main risks arising from the Home’s financial instruments are:

Interest Rate Risk

Credit Risk

Liquidity Risk (a) Credit Risk Credit risk is the risk of financial loss to the Home if a counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Home’s receivables from customers. Receivables balances are monitored on an ongoing basis with the result that the Home’s exposure to bad debts is not significant. The Home’s cash assets are invested with Approved Deposit-taking Institutions within Australia. The Home has no significant concentrations of credit risk. The Home’s maximum credit risk exposure at balance date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the balance sheet and notes to the financial statements. (b) Liquidity Risk Liquidity risk is the risk that the Home will not be able to meet its financial obligations as they fall due. The Home has limited exposure to liquidity risk and management policy is to maintain sufficient cash levels, with access to an overdraft facility, to be able to meet financial obligations without the use of borrowings. (c) Interest Rate Risk Interest rate risk is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates. The majority of the Home’s financial assets are held in interest bearing assets that are expected to mature within six months or in financial assets that reset to the prevalent market interest rate on a monthly or quarterly basis. As a result the Home is subject to limited exposure to interest rate risk due to fluctuations in the prevailing levels of market interest rates. An increase (decrease) in interest rates of 1% will have a corresponding effect on revenue of $26,120 (2013: $23,564).

queen victoria home...- 10 - the queen victoria home inc. balance sheet as at 30 june 2014 notes...

Documents