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4 March 2016

TOWNSVILLE

GRAMMAR SCHOOL Opening doors since 1888

The Honourable Kate Jones MP, Minister for Education and Minister for Tourism and Major Events, PO Box 15033 CITY EAST Q 4002

Dear Minister

I am pleased to present the Annual Report 2015 for Townsville Grammar School.

I certify that this Annual Report complies with: • The prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009, and • The detailed requirements set out in the Annual report requirements for Queensland Government agencies.

A checklist outlining the annual reporting requirements can be accessed at www.tgs.qld.edu.au.

Yours sincerely

J.~:! Secretary to the Board of Trustees OfTownsville Grammar School

Years 7-12 45 Paxton Street NORTH WARD QLD 4810 Ph (07) 4722 4900

Pre-Prep-Year 6 1 Brazier Drive ANNANDALE QLD 4814 Ph (07) 4725 3588

An International Baccalaureate · www.tgs.qld.edu.au ~~~o;'~o 'c.o•

World School \ I ·"

BOARD OF TRUSTEES

OF THE

TOWNSVILLE GRAMMAR SCHOOL

ANNUAL REPORT

To THE

MINISTER FOR EDUCATION AND MINISTER FOR TOURISM AND MAJOR EVENTS

FOR THE PERIOD

1 JANUARY 20 1 5 To 31 DECEMBER 20 1 5

@(Townsville Grammar School) 2015

PUBLIC AVAILABILITY OF REPORT

LEGISLATIVE BASIS

MINISTER RESPONSIBLE FOR ADMINISTRATION OF LEGISLATION

PRINCIPAL PLACE OF BUSINESS

STATUTORY FUNCTIONS

STATUTORY POWERS

CONTROLLED ENTITIES

EXTERNAL SCRUTINY

STRATEGIC PLAN

REVIEW OF STRATEGIC GOALS

KEY PERFORMANCE INDICATORS

CHAIRMAN'S REPORT

TABLE OF CONTENTS

REVIEW OF OPERATIONS- PRINCIPAL'S REPORT

SERVICES PROVIDED

STAFF INFORMATION

LIST OF SENIOR OFFICERS

PROFESSIONAL DEVELOPMENT PROGRAMMES

PERFORMANCE MANAGEMENT SYSTEMS

RISK MANAGEMENT

SPECIAL INTEREST GROUPS

INFORMATION SYSTEMS AND RECORDKEEPING

PUBLIC SECTOR ETHICS

OPEN DATA

FORWARD PLANS

FINANCIAL STATEMENTS (appended)

GLOSSARY

ORGANISATION CHART

STATISTICAL INFORMATION

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PUBLIC AVAILABILITY OF REPORT This report is available to the public on request at the School's Administration Office or www.tgs.qld.edu.au/about us/Annual Report 2015. Enquiries should be directed to: Greg Walsh, Board Secretary, telephone 0747224931, Facsimile 47224994 or [email protected]. ISSN 1837-8544

LEGISLATIVE BASIS The Board of Trustees of the Townsville Grammar School is constituted under the Grammar Schools Act 1975 and is a Statutory Authority as prescribed by the Financial Accountability Act 2009 and is subject to audit by the Auditor-General.

MINISTER RESPONSIBLE FOR ADMINISTRATION OF LEGISLATION The Minister for Education and Minister for Tourism and Major Events is responsible for the administration of the Grammar Schools Act 1975.

PRINCIPAL PLACE OF BUSINESS 45 Paxton Street, Townsville Old 4810 is the main campus address of the School. The Junior School campus is located at 1 Brazier Drive Annandale Old 4814.

STATUTORY FUNCTIONS The Board held nine (9) general meetings during 2015.

The functions of the Board of Trustees of the Townsville Grammar School are:-(a) to supervise, maintain and control the conduct of the school for which the board is constituted;

(b) to erect, alter, add to, purchase or sell buildings used or to be used for or in connection with the

school;

(c) to effect general improvements to the premises used or to be used for or in connection with the

school;

(d) to provide in the school courses of instruction;

(e) to make rules with respect to:

(i) fees and charges to be paid in relation to students enrolled or to be enrolled at the school;

and

(ii) the management and control of the school; and

(iii) the discipline and conduct of students enrolled at the school.

STATUTORY POWERS The Board shall have and may exercise and perform such powers and functions as are conferred or imposed upon it by or under the Grammar Schools Act 1975.

(a) The power to establish trust funds and to accept gifts and the like subject to conditions.

(b) The power to establish investment common funds.

(c) Appointment of employees.

(d) Superannuation scheme.

1) The Board may -

a) establish or amend superannuation Schemes; or

b) join in establishing or amending superannuation schemes; or

c) take part in superannuation schemes.

2) The auditor-general may audit the schemes.

3) Subsection (2) is subject to the Auditor-General Act 2009.

(e) The power to enter into financial arrangements.

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CONTROLLED ENTITY The Board of Trustees of the Townsville Grammar School administer a Building Fund established in accordance with "The Charitable Funds Act 1958". The fund is audited by the Queensland Audit Office. The financial details are included in the attached statements. The fund is the "Townsville Grammar School Building Fund". The purpose of the fund is to provide for the acquisition, construction or maintenance of the School buildings.

EXTERNAL SCRUTINY The Board of Trustees is responsible for the preparation and fair presentation of the financial report in accordance with prescribed accounting requirements identified in the Financial and Performance Management Standard 2009. In accordance with this, general purpose financial statements pursuant to section 62(1) of the Financial Accountability Act 2009 are prepared. The financial statements are subject to annual audit under the Auditor-General Act 2009.

STRATEGIC PLAN 2009 - 2015

Mission Statement

To provide a best practice, independent school environment within which students enjoy mutual respect, a sense of pride and can achieve their personal best in academic, cultural and sporting endeavours.

Vision

To grow Townsville Grammar School to maintain pre-eminence in North Queensland.

Critical Success Factors

• Leadership of the Principal;

• Quality and commitment of all staff;

• High expectations of student achievement and behaviour;

• Strategically focused Board with a strong relationship with the Principal;

• Sound financial base.

Enrolments

• Junior School to be 4 streams P- 6 by 2015;

• Townsville Grammar School will pursue a consolidation model of enrolment growth in the current economic circumstances but then pursue a more aggressive model as conditions improve.

• Develop the North Shore Junior Campus. Pre-Prep and Pre-Kindy to be constructed in 2014 for opening in 2015 and stage 1 of the Prep- 6 campus constructed in 2015 for opening in 2016.

Educational Offering

• Establish appropriate schooling structures and programmes which maximise student potential within a single School framework:

- P-6 Junior School -Annandale Campus - 7-9 Middle School - North Ward Campus - 10-12 Senior School- North Ward Campus

• Develop best practice program delivery -teaching, learning and caring;

• Maximise OP outcomes for all eligible students;

• Provide a best practice co-curricular program staffed primarily by TGS personnel.

Boarding

• Build on our strength as the pre-eminent co-educational boarding School in North Queensland;

• Boarding facilities are sustainable over the next 4 years (2009- 2013) given the School's preference to retain a model of "excess demand for boarding".

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• Attract and retain quality boarding staff.

Staff Development

• Ensure competitive and attractive remuneration for all staff;

• Provide attractive professional development opportunities;

• Further develop staff facilities and working conditions;

• Optimise the efficiency and effectiveness of the Senior Management team.

Marketing and communications

• Strengthen links with alumni to ensure an ongoing base of support for the School's future;

• Build stronger relationships with the local, national and international School community;

• Maintain the opportunity for parents and friends of the School to interact as a positive School community.

Property, facilities and resources

• Prepare a master plan for physical facilities;

Governance and management

• Manage the succession of membership of the Board to ensure enhanced effectiveness and a continued strategic focus;

• Provide ongoing governance training to the Board within the School.

Funding the Vision

• Establish and resource a TGS Foundation to underpin fundraising and the future development of the School;

• Prepare a financial plan for the life of this strategic plan.

The Values of Townsville Grammar School • Personal best - a commitment to personal best achievement by students in all their endeavours;

• Best practice - a commitment to organisational critical reflection and incremental improvement;

• Mutual respect- a commitment to ensuring that everyone is valued and a School ethos where there is:

- Respect for self - Respect for each other - Respect between staff and students - Respect for the fabric, ethos, history and facilities of the School.

• Shared leadership- everybody in the School from Board to staff to students accepts responsibility for maintaining the values and standards of the School;

• Responsive to our community- an ongoing commitment to listen, to discuss and to take action in the best interests of the whole School;

• Staff are valued as an integral component of the ongoing success of the School.

REVIEW OF STRATEGIC GOALS );;> In September 2005 the Board engaged a consultant to facilitate a workshop to review progress on the Strategic Plan to date.

It was agreed that 6 priorities will be the focus of the School's strategic thrust over the medium to long term: • A building programme to cope with expanded enrolments at the North Ward and Annandale campuses; • A focus on attracting, developing and retaining high calibre teaching staff; • Adoption of a growth model which could include development of a third campus in a new growth area of Townsville; • A strategy for the boarding element of the School's offering and operations;

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• Continued focus on improving academic outcomes; • A more structured approach to maintaining contact and fostering relations with alumni.

Further, it was agreed that tasks previously identified in the Strategic Plan that are yet to be completed will receive greater priority.

These priorities remain the focus of the Board of Trustees. >- In March 2007 a Strategic Capital Developments Timeline for the period 2007-2014 was developed as a charter for future capital works.

>- A Building sub-committee met on a monthly basis to ensure strategic developments identified in the strategic plan progressed as planned.

>- The School's Music Centre was expanded with the addition of a GLA and the facade modernized.

>- The development of the School's third campus at North Shore was progressed with completion of an Early Education Centre in January. Planning approval for stage 2 of the campus- a prep to year 3-continued during 2016. All approval matters were resolved late 2015 and construction commenced in January 2016. The School will be operational from January 2017.

KEY PERFORMANCE INDICATORS

Enrolments 2015 2014 2013 2012 2011

SECONDARY 863 789 766 806 836

PRIMARY 511 625 693 656 599

TOTAL 1374 1414 1459 1462 1435

BOARDING 153 142 148 146 145

The increase in enrolments over the last five years indicates the school is meeting its strategic goals: • Developing a best practice program delivery in teaching learning and caring. • Providing a best practice co-curricular program. • Building on the schools position, as the pre-eminent boarding school in North Queensland.

Operating Efficiency 2015 2014 2013 2012 2011

Total I nco me $ 30,653,080 $ 29,929,561 $ 28,880,642 $27,214,301 $27,528,208 Operating Surplus before Depreciation and Interest expense $4,620,375 $5,167,682 $ 4,888,791 $4,989,924 $6,791,819

Student Numbers 1374 1414 1459 1462 1435

Operating Efficiency 15% 17% 17% 18% 25%

Per Student $3363 $3655 $3351 $3413 $4733

Operating efficiency is measured as the surplus from every dollar of gross revenue. Benchmark suggested by Somerset Education for similar schools (based on year ending 31 December 2014 data) is 10.5%.

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Debt per Student 2015 2014 2013 2012 2011

Borrowings at end of Financial year $19,008,301 $13,206,697 $14,422,244 $14,260,171 $15,498,506

Student Numbers 1374 1414 1459 1462 1435

Debt per student $13,834 $9,340 $9,885 $9,754 $10,800

REVIEW OF OPERATIONS- PROGRESS TOWARDS GOAL ACHIEVEMENTS CHAIRMAN'S REPORT

This year, Australia celebrated the 1 OOth anniversary of the Gallipoli campaign. The celebration honoured the sacrifice and courage of Australian and New Zealand servicemen in that campaign in the First World War. In our School Anzac ceremony this year, a new memorial was unveiled, marking the sacrifice of former students and staff members of Townsville Grammar School in that conflict.

This year is also the anniversary, the 111th, of School House on the North Ward campus. The present building replaced the original School House that was destroyed in Cyclone Leonta in 1903. The School House conservation and restoration project has been proceeding since 2013. The first part of the project was to repair and restore the external brickwork, which now looks stunning.

The north fac;ade, Stage 1 of a 4 stage process, (facing the Rheuben Science block) has been refurbished this year, in a way consistent with conservation principles: replacement of the upper verandah,roofing, guttering and downpipes, the window and door components, the timber decking and support columns. Original timbers have been re-used where possible, with aged timbers used where necessary.

Stages 2 and 3 are to commence shortly: the external facades of the western and eastern facades of the building, including the re-construction of a verandah to the eastern facade and the completion of verandah refurbishment to the western facade. Planning for a disabled access lift to the southern fac;ade and the re-configuration and refurbishment of the interior of the building -the latter to provide for new facilities for students, staff, Past Grammarians and the larger School Community- will follow after the four external stages are completed.

A further exciting project has also been commenced, albeit later than we had planned, but for reasons beyond the control of the Board. Stage 1 of the North Shore Junior School, the Early Learning Centre, opened earlier this year. Stage 2, the construction of the first buildings, associated infrastructure and environmental surroundings of the Years 1 to 6 of the Junior School, has commenced.

This project will provide to the expanding communities of the North Shore development and other 'north of the Bohle' residential areas and environs a Grammar School facility as part of their community. The project will proceed over the next few years. Students are being enrolled and will use the Annandale facilities and progressively the North Shore facilities as that project is opened.

The proximity of the North Shore Town development has influenced the design of the campus: as the project proceeds, there will be a 'streetscape' between two lines of buildings that complements the similar environment in the Town. That streetscape will have covered roofs and landscaping that changes aesthetically as the further stages of the project are completed and the streetscape developed further. It is an exciting design concept.

This has been a busy year for members of the Board of Trustees and the Principal, who individually and collectively have diligently attended to the governance and operation, respectively, of our School. In September the Minister for Education reappointed six of the seven members and appointed a new seventh member, to the Board of Trustees. I welcome the reappointment of the Deputy Chairman, Mr John Johnson, Mrs Debra Rains, Mr Bob Mackay, Ms Alison Johnson, Mr Grant Bell and the appointment of Professor Chris Cocklin who, with me, embark on a further term of four years as

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Trustees. As you may recall, Mr Bell, Professor Cocklin and I were re-elected to the new Board late last year.

Mrs Karen Blomberg has retired as a member of the Board after several years of outstanding service to the School. She continued as a Trustee following the announcement of her retirement, pending the Ministerial appointments recently made. I thank her again for her continuing contribution.

I acknowledge the support of all of the Members of the Board and of the Board Secretary, Mr Greg Walsh during my Chairmanship this year and their valuable contributions to the governance of the school.

Mr Fairley's continued stewardship of the operations of the School, now extended over three campus locations, has been exemplary and his principalship and the support of the Senior Management team has again ensued the ongoing success of the School.

The valued staff of the School make an enormous contribution to our outstanding educational,sporting, cultural and community achievements and, on behalf of the Board of Trustees, I acknowledge such contribution.

Finally, our departing Year 12 students have completed their school student experience and now embark on further studies or careers as young adults. Their Grammar School education has prepared them well for those futures and the Board of Trustees wishes them every success.

Judge Stuart Durward SC Chairman, Board of Trustees

REVIEW OF OPERATIONS- Principal's report In 2015, the School community has been witness to many extraordinary and confronting world events. We have been shocked and saddened by natural disasters, the international tidal wave of economic and political refugees, the tragic collateral damage of horrendous national conflict, the senseless suffering brought about by militant extremists and mass shootings. Understanding these ongoing problems is particularly confronting for the young. Developing solutions is incredibly difficult, but the one thing we know is that children and young people world-wide, irrespective of race, religion or quality of life, all deserve the opportunity to be educated and attend school whenever and wherever they can. The terrorist attacks on places of learning are especially heartbreaking because education is not simply a preparation for life; it goes to the heart of being human.

The gift of education does not happen by accident, and nor do outstanding student achievements. Our families make enormous personal sacrifices to ensure that their children have access to the benefits of a Grammar education. In times of economic hardship and heart-breaking drought, we pay tribute to our parent community and their amazing children. We also pay tribute to our incredibly dedicated and hardworking staff. It is their enthusiasm for the crucial role they play in preparing our girls and boys for a world beyond our gates, that is truly special.

At Grammar, senior students have a choice of two pre-tertiary pathways; the Queensland Curriculum and Assessment Authority (QCAA) - Overall Position (OP) system or the International Baccalaureate Organisation (lBO)- IB Diploma programme. We are delighted that the Queensland Minister for Education, the Hon Kate Jones MP, has announced a new senior assessment model for Queensland commencing in 2018. This year's Year 8 cohort will be the first to complete Year 12 under the new system that will bring Queensland into line with other states. This new system will include, in part, an overdue return to external examinations and the retirement of the Queensland Core Skills Test and the Overall Position (OP); the latter being replaced by an Australian Tertiary Admissions Rank (ATAR) for tertiary entrance purposes. Grammar will be particularly well prepared for any such change, given the experience of our teachers involved in the IB Diploma programme. We also believe that there will be an increase in the number of students who will opt for the IB Diploma option, when both systems are assessed in similar ways, taking away a perceived barrier to entry, for some.

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In 2014, the School's OP and IB results were very pleasing. In combining the results of both pathways, 13 students gained the equivalent of an OP1 or OP2 result. Dux of School, Eliza Croft (12/2014) was one of only 25 students in Australia to be awarded a prestigious Tuckwell Scholarship from the Australian National University. Proxime Accessit, Katelinel Moores (12/2014) was announced as an Australian Student Prize-winner, placing her in the top 500 students in Australia. Katelinel is the 31st Past Grammarian to receive this prestigious accolade, since the introduction of the award in 1991.

Each year The Australian newspaper publishes a list of high performing schools based on NAPLAN results from the previous year. Their Your School report listed the 'top 50' schools for Queensland and, once again, Townsville Grammar School featured prominently. Based on Year 7-9 NAPLAN results, TGS was ranked 13th in Queensland in 2014 and was the 3rd highest ranked Grammar school, behind BGS and BGGS.

As a school, we remain fully supportive of this national testing programme because we believe that the results provide insightful feedback on performance and enable a meaningful response for ongoing improvement. We believe that this challenge also applies more broadly for Queensland as a state provider of education within Australia. Obviously, there is so much more to a quality education than Literacy and Numeracy test results but, without these building blocks being given accountability, the balance of what schools can achieve can be easily compromised.

Illustrating the School's commitment to embedding technology across the curriculum, nearly 400 new computers, Interactive White Boards, printers and document readers were made available during the course of the year. In general, these devices replace existing hardware to ensure state of the art resources and maintain a student to computer ratio, of at least, 1:1. As part of our Bring Your Own Device (BYOD) model of technology at North Ward, an increasing number of students now access their own devices in classrooms (and in boarding) and can utilise a secure storage facility on campus, on a needs basis. The BYOD model of accessing technology, coupled with a highly effective wireless network, reflects a contemporary model of ICT, as evidenced in all tertiary institutions.

The uptake of Moodie, our Learning Management System (LMS) continues to grow and expand and supports our commitment to anywhere, anytime learning. One of the biggest benefits of Moodie is that students can now access homework, course materials or submit assignments, any time of day. Moodie will remain as the School's dedicated LMS, with the planned introduction of a new School administration system (TASS), in 2016.

Pastoral Care and opportunities for the development of student leadership remain at the forefront of our day to day work with students. Each of the Junior, Middle and Senior sub-schools continue to develop initiatives that embed Positive Education, in an age-appropriate manner. Parents were also treated to a Positive Education Information Evening in February and other schools regularly seek our guidance in implementing Positive Education programmes.

As part of our e-Safety Awareness Week, the School sponsored Mr Brett Lee, founder of Internet Education and Safety Services (I NESS), to present to students on both campuses. Mr Lee conducted separate sessions with Year 3-5, 7-9 and 10-12 students and, given his experience as an undercover police officer, focused on internet safety and child exploitation risks.

As students progress through the School, the opportunity for leadership roles changes, reflecting the age and maturity of the boys and girls involved.

Outdoor and Adventure Education at Grammar is embedded within pastoral, boarding, curriculum and co-curricular programmes and includes activities such as Year Level Camps (Years 3-8), the wonderfully inclusive Melior Exi programme (Year 6), the annual Year 11 and 12 IB Retreat, Boarding House Retreats, and the Duke of Edinburgh programme. The Melior Exi programme is based on the community service and adventure principles of the Duke of Edinburgh scheme but adjusted for the age of students.

Within the Duke of Edinburgh programme, students demonstrate a commitment to fitness and physical recreation, new skill development, community service and outdoor adventure. Practice and test

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expeditions were conducted at various times throughout the year, enabling students to explore such places as Puzzle Creek, Running River Gorge, Paluma Dam and the rainforests of Mt Spec National Park.

Music, Drama and Sport are the main avenues for student involvement in the co-curricular life of the School, but other important and well supported activities include: Debating, Public Speaking, Chess, Opti-MINDS, Readers Cup, the Dance Troupe, Art Clubs and the Cooking Club at North Ward

Music is a vital thread in the School's community fabric, from weekly Assemblies and special ceremonial occasions, to showcase concerts, soirees, eisteddfod competitions and service engagements in the broader Townsville community.

As part of its ongoing support for the Arts at Grammar, the Board of Trustees committed a further $650,000 in 2015 for the development of the North Ward Music Centre. Included in the refurbishment and extension of these facilities, the project included a new space for teaching, rehearsal and performance, enhanced disability access, a music library, updated technology and aesthetic improvements and landscaping.

The growing quality and breadth of Music in the Junior School has been particularly apparent in 2015. The instrumental and choral ensembles have demonstrated that they are of the highest standard, and the Curriculum Music classes continue to foster musicianship. Over 200 instrumental lessons take place each week, and these lessons give students the skills for ensemble membership. Each Junior School ensemble has the opportunity to perform at least once a term.

Townsville Grammar School's established collaboration with the Australian Festival of Chamber Music has been commended in Federal Parliament in a Senate Estimates Committee hearing. The School is a substantial supporter of the Festival, hosting the Winterschool and sponsoring the Winterschool Director, Ms Michele Walsh.

The Middle School Choir, Grammar Mezzo, won the Junior Secondary Choral Championship, and each section of that event. The School is delighted in the clean sweep of 1st Prize Trophies won by the Junior School Instrumental Ensembles. Other Grammar ensembles to win 1st prizes in an Eisteddfod included the Girls Vocal Ensemble and the Girls Vocal Octet, Bella.

The quality of Drama performances and the number of students who study Drama is a pivotal feature of the profile of the School. The new Performing Arts Complex continues to be extensively used, both during and after school hours, and the number of boys and girls who audition for events often exceeds our capacity to be fully inclusive. Not surprisingly, NIDA returned to the School in September to run their very successful Acting workshops in our exceptional Performing Arts facilities.

This year has seen the formation of our Grammar Toastmasters Gavel Club at the North Ward Campus. This registered club aims to provide students with an opportunity to enhance their public speaking skills.

2015 has been a busy and successful year for debating with 8 teams involved in the Townsville secondary schools competition. In the Senior competition, Grammar teams finished 1st and 2nd and in the Year 7/8 competition, one of our Year 8 teams featured in the Grand Final.

Grammar has had a proud association with Opti-MINDS for a period of 24 years. This year the School was represented by 5 teams and the Grammar Team 4, progressed through to the State finals, in Brisbane. Chess activity continues to thrive on both campuses. Primary and secondary teams represented the School at three Townsville District lnterschool Chess Gardiner tournaments held in February, May and August and we were fortunate to have a team from each campus qualify for the State Finals in Brisbane.

The Cultural Awards Evening has become a showcase event for celebrating the Arts at Grammar and this year's 16th annual ceremony proved to be a community highlight. The presentations and cocktail function provided an opportunity to acknowledge high achieving Music, Drama, Dance, Visual Art, Debating and Public Speaking students from Years 5 to 12. Not surprisingly, after the success of the

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School Production and Eisteddfod performances, there were many deserving award recipients. Approximately 300 students received Cultural Awards.

Sport is an integral part of co-curricular life at Townsville Grammar School and sporting tours within Australia and overseas continue to provide opportunities for broader experiences for Junior, Middle and Senior School students.

In Club Netball, the School had 24 teams in the Townsville City Netball Competition, including 18 teams in competitive divisions and 6 teams in the NetSetGo programme. At the end of the minor round, 7 of the 18 eligible teams qualified for semi- finals. Ultimately, 6 Grammar teams progressed through to Grand Finals.

In Club Rugby, the School fielded 12 teams with 196 registered players in the Townsville and District Rugby Union Competition. Grammar is the only school in this competition and fielded a team in every age group, from Under 8 through to Under 17, finishing a credible 3rd overall in the Junior Club Competition. Our most successful team this year was the Under 13s who reached the Grand Final of their competition, with the 1st XV and U10 Black teams also making it through to the elimination semifinal stage.

The Grammar Rowing Team of 51 athletes excelled in 2015, culminating in a successful All Schools Head of the River Regatta in August, followed by our best ever Queensland Schools Championships in Bundaberg in late September.

Throughout 2015, there have been many interschool sporting highlights. The Junior School Swim Team won their lnterschool Swimming Carnival and the Girls' Swim Team finished 1st at the TSSS Swimming Carnival, with the Boys' Team finishing in 2nd place. TGS enjoyed success at the TSSS Cross Country Carnival, with both the boys' and girls' teams finishing in the top three places. Rounding out the TSSS carnivals, the Girls' Athletics Team finished in 1st place and the Boys Team finished in 2nd place.

Boarding continues to play an integral part in the life of the School, as it has done for generations of rural Queenslanders since our residential doors opened for boy boarders on 16th April, 1888. The decision to provide accommodation for girl boarders in 1994 has proven to be one of the most positive decisions made in our history, particularly given our longevity as a co-educational school, dating back to the entry of Mary Foley and Letitia Crowder in 1893. It is most appropriate that two of our girls' boarding Houses are named in honour of Foley and Crowder.

International boarding students, initially from PNG as part of the Australian Government's Foreign Aid programme in the 1970s, have also been an important part of the School's growing cultural diversity. Over the last 10 years, the School has built a small but loyal market in Hong Kong, with approximately 20 Hong Kong and Chinese students now a vital part of our cultural richness in boarding.

Nevertheless, the vast majority of our boarders hail from the western reaches of country Queensland. The past few years have not been easy for our families on the land and the unrelenting drought has taken its toll on families, a number of whom have more than one child with us in boarding and are second or third generation Past Grammarians. It is only their strength of character and remarkable resilience in adversity that has helped many of our boarder families through these tough times. We are pleased to note that at the recent Isolated Children's and Parents' Association (I CPA) Conference held in Cloncurry, the Minister for Education, the Hon Kate Jones MP, announced a 5% increase in the Living Away from Home Allowance (LAFHAS) for 2016. As a School, we are also committed to providing as much financial support as we can, in these difficult economic times, for all.

The School's ongoing commitment to worthy causes has continued in 2015 with the Interact Club and other community service groups supporting a wide variety of charities.

The Interact Club conducted its annual Food Appeal from Prep to Year 12, where non-perishable food items were collected and redistributed to needy locals by Food Relief NQ. Proceeds from Interact fundraising activities also resulted in donations being directed to the Nepal Earthquake victims, through the International Red Cross Appeal.

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In association with the Townsville Zonta Club, members of Interact prepared birthing kits which are delivered to birthing attendants to help the safe and healthy delivery of newborns in third- world countries. These birthing kits are a very tangible way for Club members to assist those less fortunate than themselves.

The Music Faculty continued to support its designated charity, Musicians without Borders from donations received at music soirees and Showcase evenings. The funds raised are used to support projects that use music for healing and reconciliation, in areas torn by war and conflict.

Jillian's Day continues to be well supported within the School. The strong Sun-Smart message to students, coupled with a free dress day raises awareness of the prevention of skin cancer and provides a generous donation to the Queensland Cancer Council.

Operation Christmas Child, organised through Samaritan's Purse, allows students in Form Classes to donate gifts for children in need. The boxes of gifts are distributed to over 130 countries, all over the world.

Students in Year 10 Form classes were involved in a Community Service Day in 2015. Each Form class planned their project in the lead-up to the day and students had the opportunity to spend time volunteering their time in the community. The projects included visiting RSL Aged Care, working with Landcare Australia, volunteering at Townsville Foster and Rehoming Animals, organising and delivering gifts for Ronald McDonald House families, raising money for the Townsville Hospital Foundation and visiting the hospital to see how the funds were used.

Over 130 parents and students gathered on Muller Oval for the Middle School Movie Night. The Year 9 Citizenship Committee was instrumental in selling tickets and food on the night and all proceeds raised from this event went to support Headspace. The Year 9 Citizenship Committee also gave their time to visit the residents of the RSL Aged Care facility, during the year.

The Year 9 Environment Committee held cake stalls to raise funds for the Reef HQ Turtle Hospital and also participated in the National Tree Day event helping to plant native trees as part of a habitat rehabilitation project.

Community Service has been embraced by students on both our Annandale and North Shore campuses. Community service activities included a visit to Villa Vincent Nursing Home and Pirate Day Friday, raising funds for Childhood Brain Cancer Research. A toothbrush and medical supplies drive was held to benefit YWAM and fundraising also helped support the Vanuatu Cyclone Appeal. The Proceeds from the annual disco and Funky Hair day were used to support the Tsion Mariam School in Ethiopia.

The Board of Trustees continues to invest significantly in improving the physical facilities of the School, for both current and future generations of students. This process of development, renewal, refurbishment and restoration ensures that the founding vision that brought a Grammar education to North Queensland in the 19th century remains at the forefront of governance, in the 21st century.

In the last 12 months, approximately $2,290,000 has been expended on infrastructure development and capital works, i.e. a remarkable $21.8m over the last 5 years. In 2015, this has included: completion and successful opening of the North Shore Early Education Centre and preparatory works on the next phase of development (estimated $1.3m); Music Centre expansion and refurbishment ($650,000); School House heritage restoration ($250,000), Spencer Hopkins Building air-conditioning upgrade ($122,000); Technology upgrades ($300,000), new motor vehicle for Boarding and Health Centre ($30,000), replacement bus ($396,000), painting ($80,000), upgraded lighting ($34,000) and enhanced property security.

Grammar has been generously assisted in 2015 by the ongoing support from the Black and Gold parents, the TGS Parents Network and the Past Grammarians Association. Funds raised by the Black and Gold supporters continue to enhance the Arts at Grammar, this year contributing $16,000 towards upgraded lighting in the Performing Arts Space.

Page 10

Following the significant financial support allocated for play equipment at Annandale in 2014, the Parents Network contributed $20,000 towards a wonderful new cricket net facility at North Ward in 2015. The old cricket nets on the Landsborough Street boundary were removed due to safety reasons and the new facility is now secure and a much appreciated amenity, particularly for boarders at weekends.

The School hosted the annual Grammar@Home reunion weekend in August. Approximately 90 Past Grammarians from 1965-2005 attended the morning tea and tour, with over 120 attending the formal Reunion Dinner held at the Brewery. A number of other less formal Past Grammarian gatherings were enjoyed around the precincts of Townsville at this time.

The School acknowledges the generous support of the Past Grammarians Association in co-funding the Gallipoli memorial, unveiled in April. Following, meticulous research by the School archivist, this memorial, featuring a specially commissioned bronze sculpture of an original Light Horseman's slouch hat, now occupies a revered place in the Quadrangle and records the names of the 28 Past Grammarians who served at Gallipoli, including the six who lost their lives at ANZAC Cove: D.N. MacGregor (25/4/1915), J.F. Walsh (28/4/1915), H.D. Foot (01/5/1915), H.W. Tillidge (7/8/1915), J.l. Smith (8/8/1915) and A.M. Foot (22/11/1915). To complement this Quadrangle memorial, 6 trees have been planted at the northern end of Muller Oval, each tree ceremonially planted by a year group from Years 7-12, with each tree having a memorial plaque linked to one of our Gallipoli fallen. The Past Grammarians Association has also sourced a section of original Lone Pine from a seed brought back to Australia after the war, and this timber will form the basis of an Honour Board, initially placed in the Centenary Gymnasium but ultimately destined for School House, where each of the Gallipoli Grammarians would have attended classes.

Importantly, our Junior School students were also involved in commemorating the 1 OOth anniversary of the Gallipoli landing and given the opportunity to embrace this important aspect of Australian and School history. All Annandale staff and students joined together for a special aerial photograph and the Campus has now established its own memorial plaque and garden setting, in the shadow of the flag poles.

The ongoing support of School sponsors and a significant number of families who make contributions to the School's Building Fund are gratefully acknowledged. These tax-deductible donations are particularly important for the School's ongoing infrastructure development. In 2016, these funds will be instrumental in facilitating the ongoing restoration of heritage listed School House, as the project moves from the northern elevation and works its way around the western side of the building. The beauty of the old structure is now starting to emerge, particularly with the removal of scaffolding from the front of the building. The restoration works are a tedious process and, in many ways, an ongoing voyage of discovery for the builders and architects.

Our Trustees give enormous voluntary time and expertise to the School and the challenges, particularly in dealing with master planning, risk management, budgets and project approvals remain ever-present. This report provides the appropriate opportunity to acknowledge and express gratitude to the Chairman of the Board of Trustees, Judge Stuart Durward, Deputy Chairman, Mr John Johnson and Trustees, Mrs Karen Blomberg (retired), Mrs Debbie Rains, Ms Alison Johnson, Mr Bob McKay, Mr Grant Bell and Prof Chris Cocklin.

RICHARD FAIRLEY PRINCIPAL

SERVICES PROVIDED:

2015 Middle Years

The Middle Years Curriculum, Years 7 to 9, was organised around the Key Learning Areas. At Townsville Grammar School students study a core curriculum across these years electing a specific Modern Language option or Literacy Support. In 2015 four language choices were offered to students: Indonesian, Japanese, French and Italian. Students requiring literacy support were withdrawn from Modern Language classes to receive specialised support. A wide reading programme across Years 7-9

Page 11

also provided an avenue for slower readers to receive additional support. Art and Design & Technology were studied on a semester rotation. Music was integrated into Year 7 curriculum for two periods per cycle, but the subject is an elective option for Years 8 and 9, occurring when wide reading is scheduled.

Subjects offered include:

Science Humanities/History & Geography Physical Education 2 x Modern Languages*: Japanese, French, Italian, Indonesian, or Literacy Support Art* I Design & Technology* Music Performing Arts Wide Readin *Six months rotation

2015 Senior School

Science History Geography Health and Physical Education Art* I Design & Technology* Modern Language: Japanese, French, Italian, Indonesian, or Literacy Support Performing Arts I.T. Foundations Music or Wide Read in

Science History Geography Health and Physical Education Art* I Design & Technology* Modern Language: Japanese, French, Indonesian, Italian or Literacy Support Performing Arts I.T. Foundations Music or Wide Readin

In 2015, Year 10 students studied 7 subjects while students in Years 11 and 12 studied 6 subjects. In Year 10 three subjects were core: English or English Literature; Mathematics and Science. Students then elected at least one option from 4 subjects, with at least (1) option from:

• Modern Languages -Indonesian, Japanese, French, Italian • Drama • ESL • History • Geography • Literacy Support* (only if previously received support) • Philosophy

The other subject options for students to select from included: • Music • Technology Studies • Business Studies • Graphics • Information Technology • Physical Education • Hospitality • Art

Years 11 & 12 Curriculum The curriculum provision was flexible and allowed a student to be directed towards entry into the Faculties of Universities in Australia and into the Schools of all Institutes of Technology and Advanced Education, the Agriculture Colleges, the Rural Training Schools, and the professions, trades and occupations in general. In 2015 the School continued the International Baccalaureate Diploma, an internationally recognised tertiary preparation programme. Specific vocational subjects were offered at Years 11 and 12 and the School continues to promote students' participation in School-based apprenticeships and traineeships to provide preparation for employment in the competitive labour market that faces schoolleavers today.

STAFF INFORMATION During 2015 the School employed 211.2 FTE employees, 105 teaching staff and 108.1 ancillary staff members and had a Permanent Separation Rate of 19%. Employment flexibility is accommodated to the extent that it can however the School environment is structured and inflexible. The School seeks to attract and retain staff by being the pre-eminent School in North Queensland.

Page 12

Number of FTE Staff

Teaching Staff Senior Junior

Non-Teaching Staff Boarding Staff

Total Staff

LIST OF SENIOR OFFICERS

Principal

Deputy Principal (Operations)

Director of Boarding & I. B. Co-ordinator

Head of Junior School

Head of Middle School

Head of Senior School

Director of Enrolments and Marketing

Business Manager & Secretary to the Board of Trustees

65.4 35.2 100.6

88.6 22.0

211.2

Mr R.W. Fairley B.Econ., Dip. Ed., Grad. Dip. Ed. Admin., Grad. Dip. Currie. Leadership, MACE, FAIM, MAICD

MrS. Morris M.Ed., M.App.Sc., M.Mus.St., B.Mus., Grad.Dip.Ed.

Mr C. Wilson H.Dip.Ed.,B.Comm.,M.Bus.Leadership, Cert.Residential Care Mr N. Nethery B.Ed., Dip. Teach, Grad.Cert.Ed.

Mr D. Terblanche B.Ed.

Mrs S.Ahern Dip Teach, Grad Cert.Ed. (Middle Sch.)

Mrs K Scott B.A., Dip.Ed.

Mr G. Walsh B.Comm., MBA, Grad. Dip. CSP, Assoc. Dip. Civil Eng., CPA, AGIA

PROFESSIONAL DEVELOPMENT PROGRAMMES The on-going professional development of the staff at Townsville Grammar School is actively encouraged through subject faculties, and is co-ordinated by the Deputy Principal (Curriculum). The School has a significant Professional Development budget to provide opportunities for staff to attend professional development programmes and for professional development on designated student-free days throughout the year.

During 2015 staff attended various professional development activities, receiving professional development funding when required. Each semester a professional development newsletter is prepared and published to all staff and the Trustees. Each staff member is required to prepare a precis of the professional development and the outcomes gained.

PERFORMANCE MANAGEMENT SYSTEMS Financial and Administration System The School administration system is provided by a software package known as PCSCHOOL, this package is provided and maintained by ComAssist Solutions, a Queensland based company.

The package is a complete school performance management system covering student and family

Page 13

administration, curriculum, timetable and financials. The financial module is a completely interfaced accounting package that enables the school executive team to manage the school efficiently and produce timely and accurate monthly reports to the Board of Trustees. The systems in place allow the Board to monitor the school's financial and operational performance in accordance with the Financial and Performance Management Standard 2009. The School keeps full and accurate records of its activities.

Benchmarking Each year the national body of the Association of School Bursars and Administrators (ASBA) commissions Somerset Education to conduct an Independent Schools Financial Survey. Schools participating in the survey are provided with a report by Somerset Education which provides financial benchmarks for the School.

The School participated in the survey during 2015 with respect to the 2014 financial data.

The Board considered the report provided by Somerset Education comparing the School's performance against schools of similar SES both within the State and nationally. As the School's 2014 performance was within the recommended guidelines no remedial action was taken. Key benchmarks were incorporated into the 2016 budget for the Board's consideration.

Board Reporting The Board of Trustees is provided with detailed financial and operational reports on a monthly basis.

The Operational Report is in the form of a report from the Principal that covers strategic matters such as staffing and enrolments as well as day-to-day activities.

The Financial Report is provided by the Board Secretary and contains: • Statement of Financial Performance by month year to date; • Variance Analysis of actual revenues and costs against budget; • Cash Flow Projections; • Finance Report; • Property Report; • Debtors Report; • Statement of Financial Position at the month end; • Key Performance Indicators against benchmarks set by education specialists for comparable schools such as:

o Revenues per Student; o Net Operating Margins; o Staff Pupil Ratios; o Full Time Equivalent Staff Numbers; o Capital Debt per Student.

The Finance Committee of the Board meets prior to Board meetings to review the Financial Report. This committee consists of the Chairman of the Board of Trustees, a Trustee who is a chartered accountant, the Principal and the Board Secretary. A report from this meeting is included in Board papers distributed to the Board. The School does not have an audit committee as it is felt the Finance Committee provides adequate audit control. Finance Committee members attend the annual audit exit meeting.

A review of the school's systems for compliance with the Financial Management and Performance Standard 2009 is provided as part of the audit process carried out by the Queensland Audit Office.

RISK MANAGEMENT The School does not have in place a formal system for Risk Management however Townsville Grammar School, with other Grammar Schools, has produced a comprehensive Financial Management Practice Manual as required by S61 of the Financial Accountability Act 2009.This manual provides detailed policy guidelines by which the School can operate effectively while providing a high level of accountability. The Board regularly reviews reports against the stated Risk Management Manual and Guidelines.

In addition to the Grammar Schools' risk management manual, the School has prepared staff handbooks

Page 14

for both academic and non-academic staff. The handbook covers the following policy headings: administration, boarding, co-curriculum, curriculum, emergency procedures, excursions and camps, facilities and resources, medical, staff and students. The manual provides policies and procedures designed to minimize day-to-day risk.

SPECIAL INTEREST GROUPS/RELATED ENTITES The Townsville Grammar School Parents Network and Black & Gold Ladies maintained an active interest in the School and carried out a number of fund raising ventures during 2015.

INFORMATION SYSTEMS AND RECORDKEEPING The School makes full and accurate records of its activities. Recordkeeping is a systematic part of the School's activities and records are identified, captured and retained in an accessible and useable format. The School is working towards compliance with Information Standards IS31 and IS40.

PUBLIC SECTOR ETHICS ACT The Public Sector Ethics Act 1994 ('the Act') defines ethical principles, and obligations arising from those principles, that staff must observe.

The Townsville Grammar School's Code of Conduct is based on the principles underpinning the Code of Ethics for Queensland Teachers and is shaped around the four key ethical principles contained in the Act to guide ethical decision making and behaviour. The ethical principles are:

• integrity and impartiality • promoting the public good • commitment to the system of government • accountability and transparency.

All staff and students are bound by the statement of values of Townsville Grammar School that embrace personal best, best practice, mutual respect, shared leadership and responsive to community. The Board of Trustees is also bound by a code of conduct.

OPEN DATA Information regarding Consultancies and Overseas travel is published on the School's website and on the Open Data website www.qld.gov.au/data.

FORWARD PLANS FACILITIES AND INFRASTRUCTURE

• School House Refurbishment- Planning for the restoration of the heritage listed School House is under way. The building requires repairs to the existing verandahs and the Board is considering how the building can be used as a focal point of the School. During 2015 the School completed the northern elevation. Focus will now turn to the western elevation with repair of the verandahs, restoration of windows and doors and painting non-brick items in historic colours. • North Shore Campus -The School constructed an Early Education Centre on the site during 2014. Design development of stage 2 continued during 2015. The construction contracts were signed late December and constructed will begin January 2016 with completion projected in September.

SUMMARY OF FINANCIAL PERFORMANCE In 2015 Townsville Grammar School had a surplus from ordinary activities, after interest and depreciation of $2,167 ,640.This compares with a surplus of $2,663,230 for the previous year.

This result was achieved on revenues of $30.6 million, an increase on revenues of $29.9 million in 2014. The increase in revenue is attributable to increase student numbers and an annual increase in school fees.

The final cash position at the end of 2015 was $14.0 million in cash and investments.

A copy of the 2015 Annual Financial Statements of the Board in accordance with Section 62(1) of the Financial Accountability Act 2009 is appended.

Page 15

Debt and liquidity ratio graphs appear on page 21 of the report. GLOSSARY:

OP - Overall Position

TGS- Townsville Grammar School

IB- International Baccalaureate

BGS - Brisbane Grammar School

BGGS - Brisbane Girls Grammar School

NAPLAN - National Assessment Program Literacy and Numeracy

QCAA - Queensland Curriculum and Assessment Authority

Page 16

Board of Trustees TGS

I

School Principal

I

Business Dir. Deputy Deputy Head of Senior Head Head Director of Manager& Enrolments Principal Principal School & Middle lunior School Boarding &

Board & Operations Curriculum Positive School IB Coordinator Secretary Marketing Education CAS Coordinator

Lr-Director Director Director of

of of Teacher Assistant

Sport Music Performance Head

& Development Junior School

I Works School Assistant to

Heads of Faculty IT Year Year Pre-Prep OSHC incl

Manager Psychologist D.P. Head of Ed Support Manager level level Coordinator Coordinator Curriculum Head Library & lnfoServices Coordinators Coordinators

.....l Head of ICT & eTraining

Assistant Residential PAte Audio Visual _)-Business Services Principal Manager I-'

Manager Manager

Ass to Dir ToK of 1- Coordinator

Boarding

Assistant I I Finance toDir Academic Faculty Form Form Jnr I House Nurse in

Staff Enrolments & (including IB Faculty) Teachers Teachers Pre prep Parents Charge Publications Teachers

I l I l Front Office Operations library IT

Support Staff Officer Teacher Services Services Teacher Resident Nursing Maintenance Aides Aides Boarding Staff

& Cleaners Kitchen laundry Staff Staff Staff

Grounds Staff I

l Study

J Tutors

2015

KEY FINANCIAL DATA

DE BT

$20,000,000 -

$1 5,000,000 -- ,.-----

-

$10,000,000

$5,000,000

$0 2015 2014 2013 2012 2011

DEBT PER STUD E N T

$16,000 ,--------------------------------,

$14,000

$12 ,000

$1 0,000

$8,000 -

$6,000

$4,000

$2,000 -$0 _L_~--~-~~--~-~~L--~-~-L--~---~--L~

2015 2014 2013 2012 201 1

LIQUIDITY RATIO

2.00 1.80 1.60 1.40 -1.20 1.00 0.80 0.60 0.40 -0.20 0.00

2015 2014 2013 2012 2011

18


Financial Statements- 31 December 2015 ABN 21 565 628 438

Contents

Financial Report Statement of Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Notes to the Financial Statements Trustee Declaration

Independent Audit Report

Page 1 2 3 4 5 18 19

This financial report covers TOWNSVILLE GRAMMAR SCHOOL as an individual not for profit entity. The financial report is presented in the Australian currency.

The Townsville Grammar School is established under the provisions of the Grammar Schools Act 1975.

TOWNSVILLE GRAMMAR SCHOOL is a not for profit school domiciled in Queensland, Australia. Its principal place of business is:

TOWNSVILLE GRAMMAR SCHOOL 45 Paxton Street Nmth Ward QLD 4810

The financial repmt was authorised for issue by the Townsville Grammar School on 23 February 2016.

NOTE

REVENUE FROM CONTINUING OPERATIONS 2

Employee expenses 3 Supplies and services 3 Depreciation 6a Finance/borrowing costs 3 Other expenses 3

Operating result from continuing operations

Other comprehensive Income Increase in asset revaluation surplus 10

Total other comprehensive income

Total comprehensive income

The accompanying notes form part of these statements.

TOWNSVILLE GRAMMAR SCHOOL STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2015

2015 $

30,653,080

(18,588,782) (7,169,264) (1 ,506,386)

(946,349) (274,660)

2,167,640

528,085

528,085

2,695,725

QAO certified statements

2014 $

29,929,561

(17,666,023) (6,818,847) (1 ,548,090)

(956,362) (277,008)

2,663,230

1,552,835

1,552,835

4,216,065

ASSETS Current Assets Cash and cash equivalents Receivables Inventories Other Total Current Assets

Non-current assets Property, plant and equipment Total Non-Current Assets

TOTAL ASSETS

LIABILITIES Current Liabilities Payables Other financial liabilities Accrued employee benefits Total Current Liabilities

NON-CURRENT LIABILITIES Other financial liabilities Accrued employee benefits Total Non-Current Liabilities

TOTAL LIABILITIES

Net Assets

EQUITY

Reserves Retained surplus Total Equity

TOWNSVILLE GRAMMAR SCHOOL STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2015

Note 2015 2014 $ $

4 14,006,136 6,384,362 5 563,840 745,270

550,342 467,142 430,749 350,013

15,551,067 7,946,787

6 58,356,162 57,618,871 58,356,162 57,618,871

73,907,229 65,565,658

7 1,369,532 1,717,345 8 1,237,899 969,297 9 520,670 456,638

3,128,101 3,143,280

8 17,770,402 12,237,400 9 1,984,328 1,856,307

19,754,730 14,093,707

22,882,832 17,236,987

51,024,398 48,328,671

10 15,109,070 14,580,985 35,915,328 33,747,688 51,024,398 48,328,672


2

Balance as at 1 January 2014 Operating result from continuing operations Total other comprehensive income - Increase in Asset Revaluation Surplus Balance as at 31 December 2014

Balance as at 1 January 2015 Operating result from continuing operations Total other comprehensive income - Increase in Asset Revaluation Surplus Balance as at 31 December 2015

Retained Surpluses

$

31,084,457 2,663,230

33,747,688

33,747,688 2,167,640

35,915,328


TOWNSVILLE GRAMMAR SCHOOL STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2015

Asset Revaluation Surplus $

Total $

13,028,150

1,552,835 14,580,985

14,580,985

528,085 15,109,070

3

44,112,607 2,663,230

1,552,835 48,328,672

48,328,672 2,167,640

528,085 51,024,397

Cash flows from operating activities Receipts from school fees Receipts from government grants Receipts from other operating activities Payments to suppliers and employees

Interest received Interest paid Net cash inflow from operating activities

Cash flows from investing activities Payments for property, plant and equipment Net cash outflow from investing activities

Net Cash inflows/( outflows) from financing activities Proceeds from borrowing Loan repayments Net Cash inflows/( outflows) from financing activities

Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at end of financial year


NOTE

4

4

TOWNSVILLE GRAMMAR SCHOOL STATEMENT OF CASH FLOWS


2015 $

15,971,156 11,450,640 3,194,945

(26,485,326) 4,131,415

238,237 (833,890)

3,535,763

(1,715,593) (1,715,593)

6,800,000 (998,396)

5,801,604

7,621,774 6,384,362

14,006,136

2014 $

15,362,451 10,952,522

3,270,184. (24,591 ,288)

4,993,869 346,555

(843,931) 4,496,494

(7,501 ,537) (7,501 ,537)

(1,215,547) (1,215,547)

(4,220,589) 10,604,951 6,384,362

TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS


1. Summary of significant accounting policies

a) Basis of preparation The School has prepared these financial statements in compliance with the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009

These financial statements are general purpose financial statements, and have been prepared on an accrual basis in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and Interpretations. In addition, the financial statements comply with Queensland Treasury's Minimum Reporting Requirements for the year ending 31 December 2015, and other authoritative pronouncements.

With respect to compliance with Australian Accounting Standards and Interpretations, the school has applied those requirements applicable to not-for-profit entities, as the school is a not-for-profit entity. Except where stated, the historical cost convention is used.

Amounts included in the financial statements are in Australian dollars and have been rounded to the nearest $1. As a result of roundings additions may not necessarily add due to the rounding to the nearest $1.

b) Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates and amounts collected on behalf of third parties. The school recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the school and specific criteria have been met for each of the school's activities as described below. Revenue is recognised for the major business activities as follows:

( 1) School fees are recognised upon enrolment of the student and the issuance of the school fees.

(2) Grants, contributions, donations and gifts that are non-reciprocal in nature are recognised as revenue in the year in which the school obtains control over them. Where grants are received that are reciprocal in nature, revenue is accrued over the term of the funding arrangements.

(3) Interest income is recognised when it is earned.

c) Cash and cash equivalents For the purposes of the Statement of Financial Position and the Statement of Cash Flows, cash and cash equivalents include all cash and cheques receipted but not banked at 31 December as well as deposit at call with financial institutions.

d) Trade receivables Trade debtors are recognised at the nominal amounts due at the time of sale or service delivery. Settlement of these amounts is required within 30 days from invoice date.

The collectability of receivables is assessed periodically with provision being made for impairment. All known bad debts were written-off as at 31 December.

Other debtors generally arise from transactions outside the usual operating activities of the school and are recognised at their assessed values. Terms are a maximum of three months, no interest is charged and no security is obtained.

e) Inventories Inventories held for sale are valued at the lower of cost and net realisable value. Cost is assigned on a weighted average basis and includes expenditure incurred in acquiring the inventories and bringing them to their existing condition.

5



Net realisable value is determined on the basis of the school's normal selling pattern. Expenses associated with marketing, selling and distribution are deducted to determine net realisable value.

f) Acquisition of assets Actual cost is used for the initial recording of all non-current physical asset acquisitions. Cost is determined as the value given as consideration plus costs incidental to the acquisition, including all other costs incurred in getting the assets ready for use, including architects' fees and engineering design fees. However, any training costs are expensed as incurred.

g) Property, Plant and Equipment Items of property, plant and equipment with a cost or other value equal to or in excess of the following thresholds are recognised for financial reporting purposes in the year of acquisition: Buildings $10,000 Land $1 Plant and Equipment $5,000 Other (including heritage & cultural) $5,000

Items of lesser value are expensed in the year of acquisition. Land Improvements undertaken by Townsville Grammar School are included in buildings.

h) Revaluations of Non-Current Physical Assets Land and buildings are shown at fair value in accordance with AASB 116 Property, Plant and Equipment, AASB13 Fair Value Measurement and Queensland Treasury's Non-Current Asset Policies for the Queensland Public Sector. These assets are reported at their revalued amounts, being fair value at the date of valuation, less any subsequent accumulated depreciation and impairment losses where applicable.

In respect of the abovementioned asset classes, the cost of items acquired during the financial year has been judged by management to materially represent their fair value at the end of the reporting period.

Plant and equipment is measured at cost in accordance with the Non-Current Asset Policies. The carrying amounts for plant and equipment at cost should not materially differ from their fair value.

Property, plant and equipment classes measured at fair value (refer above) are revalued on an annual basis undertaken by an independent professional valuer. For financial reporting purposes, the revaluation process - revaluation practices and procedures - is managed by the School. The School undertakes annual reviews of the revaluation practices (after each year's revaluation exercise), and reports to the Board of Trustees regarding the outcomes of, and recommendations arising from, each annual review.

If a particular asset class experiences significant and volatile changes in fair value, that class is subject to specific appraisal in the reporting period, where practicable, regardless of the timing of the last specific appraisal.

The fair values reported by the School are based on appropriate valuation techniques that maximise the use of available and relevant observable inputs and minimise the use of unobservable inputs (refer to Note 1 (i)).

Any revaluation increment arising on the revaluation of an asset is credited to the asset revaluation surplus of the appropriate class, except to the extent it reverses a revaluation decrement for the class previously recognised as an expense. A decrease in the carrying

6 QAO certified statements



amount on revaluation is charged as an expense, to the extent it exceeds the balance, if any, in the revaluation surplus relating to that asset class.

On revaluation:

• for assets revalued using a cost valuation approach (e.g. depreciated replacement cost)accumulated depreciation is adjusted to equal the difference between the gross amount and carrying amount, after taking into account accumulated impairment losses. This is generally referred to as the 'gross method'; and

• for assets revalued using a market or income-based valuation approach - accumulated depreciation and accumulated impairment losses are eliminated against the gross amount of the asset prior to restating for the revaluation. This is generally referred to as the 'net method'.

In previous years, o·ueensland Treasury's Non-Current Asset Policies for the Queensland Public Sector (NCAPs) mandated the gross method of revaluation for all revaluations. However, from 1 July 2014, the NCAPs now require either the gross or net method be used, according to the valuation approach adopted for individual assets (as explained above). In accordance with the above policies, this means a reported asset class may contain assets for which revaluations are accounted for using either method.

Materiality concepts according to the framework for preparation and presentation of financial statements are considered in determining whether the difference between the carrying amount and the fair value of an asset is material.

Separately identified components of assets are measured on the same basis as the assets to which they relate.

i) Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions (i.e. an exit price) regardless of whether that price is directly derived from observable inputs or estimated using another valuation technique.

Observable inputs are publicly available data that are relevant to the characteristics of the assets/liabilities being valued. Observable inputs used by the School include, but are not limited to, published sales data for land and general office buildings.

Unobservable inputs are data, assumptions and judgements that are not available publicly, but are relevant to the characteristics of the assets/liabilities being valued. Significant unobservable inputs used by the School include subjective adjustments made to observable data to take account of the characteristics of the School's assets/liabilities, internal record of recent construction costs (and/or estimates of such costs) for assets' characteristics/functionality, and assessments of physical condition and remaining useful life. Unobservable inputs are used to the extent that sufficient relevant and reliable observable inputs are not available for similar assets/liabilities.

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use.

j) Depreciation of Property, Plant and Equipment

Land is not depreciated as it has an unlimited useful life. QAO

certified statements

7



Property, plant and equipment is depreciated on a straight-line basis so as to allocate the net cost or revalued amount of each asset, less its estimated residual value, progressively over its estimated useful life to the school.

The estimation of the useful lives of assets is based on historical experience with similar assets as well as considerations such as manufacturers' warranties, asset turnover practices and the School's strategic asset plan. Reassessments of useful lives are undertaken annually by the School. Any consequential adjustments to remaining useful life estimates are implemented prospectively.

Where assets have separately identifiable components that are subject to regular replacement, these components are assigned useful lives distinct from the asset to which they relate and are depreciated accordingly.

Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful life of the asset to the school.

The depreciable amount of improvements to or on leasehold land is allocated progressively over the estimated useful lives of the improvements or the unexpired period of the lease, whichever is the shorter. The unexpired period of a lease includes any option period where exercise of the option is probable.

For each class of depreciable asset the following depreciation and amortisation rates are used: - Buildings 25- 40 years - Plant and equipment 4- 15 years

k) Impairment of Non-Current Assets All non-current physical assets are assessed for indicators of impairment on an annual basis.

I) Trade and other payables Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed purchase/contract price, gross of applicable trade and other discounts. Amounts owing are unsecured and are generally settled on 30 day terms.

m) Borrowings Borrowings are classified as current liabilities unless the school has an unconditional right to defer settlement of the liability for at least 12 months after the balance date.

n) Borrowing costs Finance costs are recognised as an expense in the period in which they are incurred.

Finance costs include: - Interest on bank overdrafts and short-term and long-term borrowings; - Finance lease charges; -Amortisation of discounts or premiums relating to borrowings; and -Ancillary administration charges.

o) Employee benefits i) Wages, Salaries and Sick Leave Wages and salaries due but unpaid at reporting date are recognised in the Statement of Financial Position at the nominal salary rates. Payroll tax and workers' compensation insurance are a consequence of employing employees, but are not counted in an employee's total remuneration package. They are not employee benefits and are recognized separately

8



as employee related expenses. Employer superannuation contributions, annual leave levies and long service leave levies are regarded as employee benefits.

Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised. As sick leave is non-vesting, an expense is recognised for this leave as it is taken.

ii) Long service leave The School recognises a liability for long service leave for employees from commencement of employment. The part of the liability that is expected to be payable within 12 months of the end of the reporting period is classified as a current liability and measured at its nominal amount. That part expected to be settled more than 12 months after the end of the reporting period is recognised as a non-current liability.

The non-current liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

iii) Key Management Personnel and Remuneration Key management personnel and remuneration disclosures are made in accordance with the section 5 of the Financial Reporting Requirements for Queensland Government Agencies issued by Queensland Treasury. Refer to Note 11 for the disclosures on key management personnel and remuneration.

iv) Remuneration of Board Members No Board Members received or were entitled to receive any fees or other benefits during the year.

v) Superannuation Contributions are made by the School to employee superannuation funds and are charged as expenses when incurred. The School contributes only to defined contribution superannuation funds.

p) 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. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables in the Statement of Financial Position are shown inclusive of GST.

Cash flows are presented in the Statement of Cash Flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

q) Income Tax No provision for income tax has been raised as the school is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.


9



r) Insurance

The school's non-current physical assets and other risks are insured through Aon Risk Services Australia Limited, with premiums being paid on a risk assessment basis. In addition, the school pays premiums to WorkCover Queensland in respect of its obligations for employee compensation.

s) Financiallnstruments Recognition Financial assets and financial liabilities are recognised in the Statement of Financial Position when the School becomes party to the contractual provisions of the financial instrument. Classification Financial instruments are classified and measured as follows:

Receivable- held at amortised cost Payables - held at amortised cost Borrowings- held at book value of the loan.

The carrying amounts of trade receivables and payables approximate their fair value. No financial assets and financial liabilities have been offset and presented on a net basis in the Statement of Financial Position.

The School does not enter into, or trade with, such instruments for speculative purposes, nor for hedging. The School also holds no financial assets classified at fair value through profit and loss.

t) Critical Accounting Estimates and Judgements The preparation of financial statements necessarily requires the determination and use of certain critical accounting estimates, assumptions, and management judgements that have the potential to cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Such estimates, judgements and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods as relevant.

Estimates and assumptions with the most significant effect on the financial statements are outlined in the following notes:

Valuation of Property, Plant and Equipment - Note 1 (h) - U); Depreciation - Note 1 U) and Note 6(a); Impairment- Note 1 (k); Receivables Impairment- Note 1 (d); Employee Entitlements - Note 1 ( o ), Note 9 and Note 11.

Key judgements: Provision for impairment Included in trade and other receivables at 31 December 2015 is an amount receivable for school fees from various parents of students during the current financial year amounting to $168,433. The debts are currently in the hands of an external debt collection agency and a provision for impairment has been made for $168,433 at 31 December 2015.

Valuation- Land and Buildings Land and building valuation methodologies are detailed in Note 6b.

w) Comparatives Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period.

10




x) New and Revised Accounting Standards The School did not voluntarily change any of its accounting policies during 2015. Australian Accounting Standard changes applicable for the first time as from 2015 that have had a significant impact on the School's financial statements are described below.

The following new and revised standards became potentially applicable to the School as from · reporting periods beginning on or after 1 January 2015:

The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the School.

The following Accounting Standards and Interpretations are most relevant to the School: • AASB 2014-1 Amendments to Australian Accounting Standards (Parts A to C)

The school is not permitted to early adopt a new or amended accounting standard ahead of the specified commencement date unless approval is obtained from the Treasury Department. Consequently, the school has not applied any Australian accounting standards and interpretations that have been issued but are not yet effective. The school will apply those standards and interpretations in accordance with their respective commencement dates.

All other Australian accounting standards and interpretations with future commencement dates are either not applicable to the school, or have no material impact on the School.

11

2. Revenue From continuing operations Education revenue Tuition Fees Boarding Fees Application Fees Surcharge Fees State Government Recurrent Grants State Government Endowment Grants Commonwealth Government Recurrent Grants General Purpose Levy Outside School Hours Care & PrePrep

Other revenue Capital Grants Interest Income - General Fund Interest Income- Cash Management Interest Income- Other Other revenue

3. EXPENSES Employee expenses Wages and salaries Employer superannuation contributions

Employee Related Expenses Worker's compensation premium Total

Supplies and Services Supplies and consumables Consultants and contractors Operating lease rentals Trading activities cost of sales School Transport Costs Other Total

Finance/Borrowing Costs Interest on QTC Borrowings Bank fees and charges

Other expenses Insurance premiums External audit fees* Total



2015 2014 $ $

13,004,306 12,970,936 2,461,774 2,077,061

114,360 124,480 246,959 265,158

2,859,162 2,617,340 18,200 18,200

8,573,277 8,316,982 524,930 506,813

1,842,820 1,295,278 29,645,789 28,192,247

33,674 620,265 89,338 95,132 90,759 174,091 58,141 77,332

735,380 770,495 30,653,080 29,929,563

16,747,028 15,936,907 1,795,759 1,680,736

18,542,787 17,617,643

45,994 48,378 18,588,781 17,666,021

4,559,396 3,887,170 1,378,431 1,584,359

93,465 127,513 465,692 503,887 302,141 357,647 370,139 358,271

7,169,264 6,818,847

833,890 843,931 112,459 112,431 946,349 956,362

238,460 242,508 36,200 34,500

274,660 277,008

*External audit fees- Total audit fees paid to the Queensland Audit Office relating to the 2015 financial statements are estimated to be $36,200 (2014: $34,500). There are no non-audit services included in this amount.

12 QAO

certified statements



4. Cash and cash equivalents

General Account Cash Management Account Endowment Fund Account Cash on Hand Building Fund Loan Fund Restricted use balances: Short term deposit Suncorp Interest bearing deposit Total cash assets

a) Reconciliation to cash at the end of the year

2015 $

1,743,874 8,908,323

221 '143 2,260

1,526,911 593

1,598,032 5,000

14,006,136

The above figures are reconciled to cash at the end of the financial year as shown in the statement of cash flows as follows:

Balance as above 14,006,136 Balance per statement of cash flows 14,006,136

b) Cash at bank The above balances are bearing interest rates between 1.84% and 2.84% (2014- 2.26% and 3.38%).

c) Restricted Use Accounts Not available for use

2014 $

1,165,528 2,020,770

217,001 2,260

1,396,983 593

1,576,227 5,000

6,384,362

6,384,362 6,384,362

Restricted use accounts (Short term deposit, CBA and Suncorp Interest Bearing Deposits) of $1,603,032 (2014- $1,581 ,227) represents monies that have been bequeathed to the school. The use of these funds is restricted to the terms and conditions established in the bursary agreements. The bursary agreements stipulate the school cannot use these funds in the normal course of their operating cycle.

These deposits are bearing interest rates between 0.15% and 3.07% (2014- 0.0% and 3.49%).

5. Receivables

Trade receivables less: Impairment of receivables.

Other receivables - Debtors

Movement in impairment for receivables

Balance at beginning of the year Increase/decrease in impairment recognised as an expense Balance at the end of the year

13

682,204 (168,433)

513,771 50,069

563,840

173,471 (5,038)

168,433

699,226 (173,471)

525,755 219,515 745,270

123,820 49,651

173,471

QAO ...._ certified statements

6. Property, plant and equipment BUILDINGS Buildings at Fair Value Less: Accumulated Depreciation Total Buildings

LAND Leasehold Land at Fair Value Freehold Land at Fair Value TOTAL LAND

PLANT & EQUIPMENT Plant and Equipment at Cost Less: Accumulated Depreciation Total Plant & Equipment

WORK IN PROGRESS At Cost Total Work in Progress

Total Property, Plant and Equipment

a) Property, Plant and Equipment Reconciliation

Basis of Measurement Carrying amount at 1 January 2015 Acquisitions Revaluation increments (Note 11) Transfer between classes Depreciation Carrying amount at 31 December 2015

b) Valuations of land and buildings



2015 2014 $ $

74,290,000 70,961,000 (24,300,000) (23,306,000) 49,990,000 47,655,000

1,900,000 1,890,000 5,650,000 5,500,000 7,550,000 7,390,000

3,397,474 3,290,860 {3,140,906) {3,064,050)

256,568 226,809

559,595 2,347,062 559,595 2,347,062

58,356,162 57,618,871

$ $ $

Leasehold Land Freehold Land Buildings Fair Value Fair Value Fair Value

1,890,000 5,500,000 47,655,000 39,599

10,000 150,000 368,085 3,340,908

(1 ,413,592) 1,900,000 5,650,000 49,990,000

$

P&E Cost

226,809 122,553

(92,794) 256,567

$

Work In Progress Cost 2,347,063 1,553,441

{3,340,908)

559,595

$

Total

57,618,871 1,715,593 528,085

(1 ,506,386) 58,356,162

Land and Buildings were independently valued by Mr G Pyman (Certified Practicing Valuer), International Valuation Consultants, a division of Aon Risk Services Australia Limited, in December 2015.

Land Leasehold Land

Freehold Land

Total Land

Buildings Depreciated Replacement Cost

Market Value

Total Buildings

1 ,900,000 Leasehold land is held under a Deed of Grant in Trust (DOGIT) providing the Trustees with exclusive use of that land but not its ownership. The ownership remains with the Crown. In accordance with Section 185(3) of the Land Act 1910 as amended by the Land Act 1962, the School has no power to sell or transfer the land. The land value has been determined after considering the impact of these restrictions and has been adjusted.

5,650,000 Freehold land has been valued at market valued taking zoning considerations and available sales

---==-=o::-evidence into account. 7,550,000

48,990,000 This category of buildings and site improvements are of a specialised operational nature and are rarely sold in the open market. They are consequently categorised as replacement cost based assets and their value has been derived by depreciating their replacement cost, taking into account their age, construction, condition and estimated residual life. The cost of items acquired during this financial year has been judged by management of the School to materially represent their fair value at the end of the reporting period.

1,000,000 Market value for this category of building is based on available sales evidence and subject to --.......,c:-:=-=o::-qualifications, assumptions and encumbrances contained therein.

49,990,000

14

----------QAO --certified statemems / _____ ,__,_,-r.---

7. Payables Trade Payables Fees in advance

8. Other Financial Liabilities Current Bank Loan Secured (Queensland Treasury Corporation)

Non-Current Bank Loan Secured (Queensland Treasury Corporation)



2015 $

847,700 521,833

1,369,532

1,237,899 1,237,899

17,770,402 17,770,402

2014 $ 1,152,801

564,544 1,717,345

969,297 969,297

12,237,400 12,237,400

Secured bank borrowings are through the Queensland Treasury Corporation (QTC) Australia and includes a 3 year, 6 year, 12 year and 15 year debt pool. Interest on the loans calculated based on the rate charged by QTC on the principal borrowings are from 3.63% to 7.21% fixed as at 31 December 2015. Expected final payment dates vary from 19 December 2020 to 26 September 2035.

9. Accrued Employee Benefits Current Long Service Leave Annual Leave

Non- Current Long Service Leave

10. Asset Revaluation Surplus by Class Movements Asset Revaluation Surplus by Class Balance 1 January 2015 Revaluation increments

Balance 31 December 2015

Balance 1 January 2014 Revaluation increments

Balance 31 December 2014

$ Land

3,642,331 160,000

3,802,331

3,572,331 70,000

3,642,331

$

300,000 220,670 520,670

1,984,328

Buildings 10,938,654

368,085

11,306,739

9,455,819 1,482,835

10,938,654

$

270,000 186,638 456,638

1,856,307

Total 14,580,985

528,085

15,109,070

13,028,150 1,552,835

14,580,985

The asset revaluation surplus represents the net effect of upwards and downwards revaluations of assets to fair value.

15

QAO --~, certified statement~___.. :

11. KEY EXECUTIVE REMUNERATION



The School has assessed the key executive management personnel positions in context of the School being constituted under the Grammar Schools Act 1975. Details of executive management personnel positions, responsibilities, appointment date and remuneration are detailed below. Further information on these positions can be found in the body of the Annual Report under the section relating to Governance.

Positions Responsibilities Contract classification and appointment Date appointed authority (current incumbents) to position

Trustee Elected Trustee 18 Nov 2010 Trustee To supervise, maintain and control the Elected Trustee 3 June 2005 Trustee conduct of the School. To make rules Elected Trustee 24 March 1995 Trustee with regards to the management and Government Appointed Trustee 14 March 2008 Trustee control of the School. Government Appointed Trustee 14 June 2012 Trustee Government Appointed Trustee 16 June 1996 Trustee Government Appointed rustee 3 June 2005 Principal The Principal is responsible for the Three year contract 1 January 1998

implemention of plans and strategies as approved by the Board of Trustees.

Deputy Principal- The Deputy Principal - Curriculum Permanent 1 January 1996 Curriculum supports the Principal in implementation (Resigned 3rd July 2015. Position not filled)

of plans and strategies as delegated by the Principal.

Deputy Principal- 1 he ueputy Pnnc1pa1 - operations Five year contract 1 January 2012 Operations supports the Principal in implementation

of plans and strategies as delegated by the Principal.

Business Manager! To ensure best practice deployment of Permanent 20 May 2004 Board Secretary the School's financial resources.

Director of Boarding 1 he u1rector t;oarmng assumes Two year contract 25 August 1997 responsibility for all matters relating to th emanagement and leadership of Boardino at the School.

The remuneration and other terms of employment for the key executive management personnel are specified in employment contracts. For the 2015 year, remuneration of key executive management personnel increases were based on performance assessments. The percentage increases are tied to the achievement of pre-determined individual performance targets.

Remuneration packages for key executive management personnel comprise the following components: Short term employee benefits which include:

o Base - consisting of base salary, allowances and leave entitlements paid and provided for the entire year or for that part of the year during which the employee occupied the specific position. Amounts disclosed equal the amount expensed in the Statement of Comprehensive Income.

o Non-monetary benefits -consisting of provision of remission for School fees and motor vehicles together with fringe benefits tax applicable to the benefit.

Lon~ term employee benefits include ion~ service leave accrued. Post employment benefits include superannuation contributions. Redundancy payments are not provided for within individual contracts employment. Contracts of employment provide only for notice periods or payment in lieu of notice on termination, regardless of the reason for termination. No performance bonuses were paid.

2015 Description Short Term Long Post Termination Total

Employee Benefits Term Employee Benefits Remuneration

Total aggregate Employee Benefits remuneration for Benefits

executive management Base Non-personnel positions Monetary noted above. Benefits

$'000 $'000 $'000 $'000 $'000 $'000 Trustees (7) - - - -

Principal 415 15 10 40 480 uepu y nnc1pa -

Curriculim 75 2 26 127 230 ueputy r>nnc1pa1 -

Operations 145 21 19 3 - 188 Business Manager/ 192 1 5 24 222

Board Secretarv Director of Boarding 128 21 3 16 168

2014 Description Short Term Long Post Termination Total

Employee Benefits Term Employee Benefits Remuneration

Total aggregate Employee Benefits remuneration for Benefits executive management Base Non-personnel positions Monetary noted above. Benefits

$'000 $'000 $'000 $'000 $'000 $'000 Trustees (7) - - - - - -

Principal 403 15 10 37 465 LJeputy Pnnc1pa1 -

Curriculim 144 4 18 166 uepu y nnc1pa -

Operations 130 18 3 17 168 Business Manager/ 177 10 4 23 214

Board Secretary Director of Boarding 119 32 3 15 169

16



13. COMMITMENTS

(a) Capital commitments

2015 $

Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows:

Payable within one year: North Shore Campus stage 2 Design & Technology GLA refurbishment Spencer Hopkins Air Conditioning North Shore Campus Stage 1

(b) Lease commitments: Operating Leases Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: Within one year Later than one year and not later than two years Later than two years and not later than five years Commitments not recognised in the financial statements

6,517,023 121,000

6,638,023

137,313 100,200 223,396 460,909

2014 $

122,210 270,450

392,660

71,049 43,066 31,257

145,372

Operating leases are entered into as a means of leasing motor vehicles for the operations of the school. Lease payments are generally fixed, but with inflation escalation clauses on which contingent rentals are determined.

14. Related party transactions The following Trustees held office during the Year Ended 31 December 2015. S.Durward, J.Johnson, K.Biomberg (retired 10 September 2015), D.Giudes, B.McKay, G.Bell, A.Johnson, C. Cocklin. All dealings with Trustees were within normal trading terms and conditions.

15. Events occurring after the balance sheet date No matter or circumstance has arisen since 31 December 2015 that has significantly affected, or may significantly affect the entity's operations, the results of those operations, or the entity's state of affairs in future financial years.

16. Boarders' Amenities accounts The school maintains an account for boarders' pocket money placed on deposit by parents. The balance of this account at 31 December 2015 is $76,897 and is not recognized as a cash asset by the School. Monies held in this account are for student's own use and any balances are refunded at completion of schooling.

17


STATEMENT BY


These general purpose financial statements have been prepared pursuant to section 62(1) of the Financial Accountability Act 2009 (the Act), relevant sections of the Financial and Performance Management Standard 2009, and other prescribed requirements.

In accordance with section 62(1)(b) of the Act we certify that in our opinion:

a) the prescribed requirements for establishing and keeping the accounts have been complied with in all material respects;

b) the statements have been drawn up to present a true and fair view, in accordance with

prescribed accounting standards, of the transactions of Townsville Grammar School for the financial year ended 31 December 2015 and of the financial position of the School at the end of that year; and

c) these assertions are based on an appropriate system of internal controls and risk management processes being effective, in all material respects, with respect to financial reporting throughout the reporting period.

STUART DURWARD CHAIRMAN

23/02/2016

18

G.ULsH SECRETARY

23/02/2016


INDEPENDENT AUDITOR'S REPORT

To the Board of Trustees of the Townsville Grammar School

Report on the Financial Report

I have audited the accompanying financial report of The Board of Trustees of the Townsville Grammar School, which comprises the statement of financial position as at 31 December 2015, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and certificates given by the Chairman and Secretary.

The Board's Responsibility for the Financial Report

The Board is responsible for the preparation of the financial report that gives a true and fair view in accordance with prescribed accounting requirements identified in the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009, including compliance with Australian Accounting Standards - Reduced Disclosure Requirements. The Board's responsibility also includes such internal control as the Board determines 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.

Auditor's Responsibility

My responsibility is to express an opinion on the financial report based on the audit. The audit was conducted in accordance with the Auditor-Genera/ of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. Those standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance about 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 assessments, the auditor considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view 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, other than in expressing an opinion on compliance with prescribed requirements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board, as well as evaluating the overall presentation of the financial report including any mandatory financial reporting requirements approved by the Treasurer for application in Queensland.

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

Independence

The Auditor-General Act 2009 promotes the independence of the Auditor-General and all authorised auditors. The Auditor-General is the auditor of all Queensland public sector entities and can be removed only by Parliament.

The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General's opinion are significant.

Opinion

In accordance with s.40 of the Auditor-Genera! Act 2009-

(a) I have received all the information and explanations which I have required; and

(b) in my opinion -

(i) the prescribed requirements in relation to the establishment and keeping of accounts have been complied with in all material respects; and

(ii) the financial report presents a true and fair view, in accordance with the prescribed accounting standards - Reduced Disclosure Requirements, of the transactions of the Board of Trustees of the Townsville Grammar School for the financial year 1 January 2015 to 31 December 2015 and of the financial position as at the end of that year.

Other Matters - Electronic Presentation of the Audited Financial Report

Those viewing an electronic presentation of these financial statements should note that audit does not provide assurance on the integrity of the .information presented electronically and does not provide an opinion on any information which may be hyperlinked to or from the financial statements. If users of the financial statements are concerned with the inherent risks arising from electronic presentation of information, they are advised to refer to the printed copy of the audited financial statements to confirm the accuracy of this electronically presented information.

* Lk M ~·:;;:~;:) J F WELSH FCPA ~-4Uo·- _--·ct./ as Delegate of the Auditor-General of Queensla~./

Queensland Audit Office Brisbane

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