yc 2009 consolidated accounts

Youthconnections.com.au ABN 29 131 297 213

Financial Report

For The Financial Year Ended 31 December, 2009

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Financial Report

For The Financial Year Ended 31 December 2009

Page Number Director’s Report ................................................................................................ 3 Auditor’s Independence Declaration ................................................................... 6 Income Statement .............................................................................................. 7 Balance Sheet .................................................................................................... 8 Statement of Changes In Members’ Funds ....................................................... 9 Cash Flow Statement........................................................................................ 10 Notes to the Financial Statements ................................................................... 11 Directors Declaration ........................................................................................ 20 Independent Audit Report ................................................................................ 21 Additional Financial Information........................................................................ 23

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Director’s Report

Your directors present this report on the company for the financial year ended 31 December, 2009. Directors The names of each person who has been a director during the year and to the date of this report are: David Fraser Abrahams David Ella Shane Gray Richard Arthur Cooke Patrick James Lewis Niel Richard Jacobsen Directors have been in office since the incorporation of the company to the date of this report unless otherwise stated. Company Secretary Richard Cooke was appointed company secretary in March 2009. Principal Activities The principal activities of the company during the financial year were:-

to provide pathways to secondary education and facilitate job placement programmes on the Central Coast through various Government subsidised projects.

Operating Result The operating profit for the company amounted to $17,517. The company is exempt from income tax. Dividends Under the company’s constitution no dividend can be paid. Review of Operations During the financial year the company continued its activities. The results of these activities were an improvement on the previous year due to the company undertaking a review of all program budgets and actively monitoring all programs. .

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Director’s Report

After Balance Date Events No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of the operations, or the state of affairs of the company in future financial years Future Developments The company expects to significantly reduce expenditure whilst maintaining its current level of service. Environmental Issues The company’s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a state or territory. Information on Directors David F Abrahams Chairman, appointed to the board in March 2003. Attended 4 of 5 meetings held. David Ella Deputy Chairman, appointed to the board in November 2008. Attended 3 of the 4 meetings held. Shane Gray Director, appointed to the board in November 2008. Attended 3 of the 5 meetings held. Richard A Cooke Treasurer/ Secretary, appointed to the board in March 2003. Attended 4 of the 5 meetings held.

Patrick J Lewis Director, appointed to the board in May 1999. Attended 4 of the 5 meetings held. Niel R Jacobsen Director, appointed to the board in February 2005. Attended 2 of the 5 meetings held.

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Director’s Report Indemnifying Officers or Auditor No indemnities have been given or insurance premiums paid during or since the end of the financial year for any person who is or has been an officer or auditor of the company. Proceedings on Behalf of the Company No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the entity for all or any part of those proceedings. The company was not a party to any such proceedings during the year Auditor’s Independence Declaration The lead auditor’s independence declaration for the year ended 31 December 2009 has been received and can be found on page 6 of the annual report. Signed in accordance with a resolution of the Board of Directors. Director Director Tuggerah, 2010

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Auditor’s Independence Declaration Under Section 307C of the Corporations

Act 2001 to the Directors of Youthconnections.com.au I declare that, to the best of my knowledge and belief, during the year ended 31 December 2009 there have been: (i) no contraventions of the auditor independence requirements as set out in the

Corporations Act 2001 in relation to the audit; and (ii) no contraventions of any applicable code of professional conduct in relation t to the audit. FORTUNITY ASSURANCE T R Davidson Partner 155 The Entrance Road ERINA NSW 2250 Dated:

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Income Statement

For The Year Ended 31 December 2009

Note 2009 2008 $ $

Revenues from ordinary activities 3 2,096,871 1,955,843 Employee benefits expense (1,203,402) (1,471,795) Depreciation expenses (30,475) (11,083) Finance costs (2,215) - Other expenses from ordinary activities (843,262) (407,567) _________ _________ Surplus/ (Deficit) from ordinary activities 17,517 65,397 _________ _________

The accompanying notes form part of these financial statements.

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Balance Sheet

as at 31 December 2009

Note 2009 2008 $ $ Current Assets Cash and cash equivalents 5 193,414 255,755 Receivables 6 30,608 200,986 Prepayments 3,401 - _________ _________ Total Current Assets 227,423 456,741 _________ _________ Non-Current Assets Property, plant & equipment 7 206,093 42,824 _________ _________ Total Non-Current Assets 206,093 42,824 _________ _________ Total Assets 433,516 499,565 _________ _________ Current Liabilities Payables 8 40,995 247,156 Provisions 10 53,156 - Hire purchase 9 44,838 - _________ _________ Total Current Liabilities 138,989 247,156 _________ _________ Non-Current Liabilities Provisions 10 24,601 - _________ _________ Total Non-Current Liabilities 24,601 - _________ _________ Total Liabilities 163,590 247,156 _________ _________ Net Assets 269,926 252,409 _________ _________ Members’ Funds Retained profits 269,926 252,409 _________ _________ Total Members’ Funds 269,926 252,409 _________ _________


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Statement of Changes In Members’ Fund For The Year Ended 31 December 2009

Retained Total Earnings $ $ Balance 1 January 2007 106,778 106,778 Surplus for year 80,234 80,234 _________ _________ Balance 31 December 2007 187,012 187,012 Surplus for year 65,397 65,397 _________ _________ Balance 31 December 2008 252,409 252,409 Surplus for year 17,517 17,517 ________ ________ Balance 31 December 2009 269,926 269,926 ________ _________


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Cash Flow Statement for the

Year Ended 31 December 2009

Note 2009 2008 $ $ Cash Flow from Operating Activities Receipts from customers, grants 2,095,910 1,954,370 Payments to suppliers and employees (2,010,306) (1,954,149) Interest received 961 1,473 _________ _________ Net cash used by operating activities 11 86,565 1,694 _________ _________ Cash Flow from Investing Activities Proceeds from sale of property, plant and equipment - - Payment for property, plant and equipment (193,744) (33,823) _________ _________ Net cash used in investing activities (193,744) (33,823) _________ _________ Cash Flow from Financing Activities Borrowings proceeds 62,083 - Repayment of borrowings (17,245) - ________ ________ 44,838 - ________ ________ Net increase/ (decrease) in cash held (62,341) (32,129) Cash at beginning of year 255,755 287,884 _________ _________ Cash at the End of Financial Year 193,414 255,755 _________ _________

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Notes To The Financial Statements


Note 1. Statement Of Significant Accounting Policies

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. The financial report is for Youthconnections.com.au as an individual entity, incorporated and domiciled in Australia. Youthconnections.com.au is a company limited by guarantee. The following is a summary of the material accounting policies adopted by the Company in the preparation of the financial report.

(a) Income Tax The Company is exempt from income tax.

(b) Plant and Equipment Plant and equipment are measured on the cost basis.

(c) Depreciation The depreciable amount of all fixed assets are depreciated on a straight line basis over the useful lives of the assets to the association commencing from the time the asset is held ready for use. The depreciation rates used for each class of depreciable asset are: Class of Asset Depreciation Rate Leasehold improvements 20% Motor Vehicle 20% Plant and Equipment 30% Furniture and fittings 20%

(d) Employee Entitlements Provision is made for the organisation’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for their benefits.

(e) Comparative Figures Comparative figures are, where appropriate, reclassified so as to be comparable with the figures presented for the current financial year.

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Note 2. Financial Risk Management Financial Risk Management Policies The Company’s financial instruments consist mainly of deposits with banks, accounts receivable and payable, and hire purchase agreements. The Company does not have derivative instruments at 31 December 2009. (i) Treasury Risk Management

The Board of Directors meet on a regular basis to analyse financial risk exposure. The committee’s overall risk management strategy seeks to assist the Company whilst minimising potential adverse effects on financial performance.

(ii) Financial risk Exposure and Management

The main risks the Company is exposed to through its financial instruments are interest rate risk and liquidity risk. Interest Rate Risk Interest rate risk is managed with a mixture of fixed and floating rate debt. Foreign Currency Risk The Company is not exposed to fluctuations in foreign currencies.

Liquidity Risk

The Company manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are maintained.

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2009 2008 $ $ Note 3. Revenue Operating activities Funding received 1,992,399 1,843,424 Rebates and recoveries 22,927 33,063 Donations 7,069 36,037 Other funding 70,525 12,862 Other income 2,990 2,330 _________ _________ 2,095,910 1,927,716 _________ _________ Non-operating activities Interest received 961 1,473 _________ _________ Total Revenue 2,096,871 1,929,189 _________ _________ Note 4. Profit from Ordinary Activities Profit from ordinary activities has been determined after: (a) Expenses Borrowing costs 2,215 - Depreciation 30,475 11,083 Remuneration of auditor - audit services 13,400 9,407 _________ _________ Note 5. Cash Assets

Cash on hand 1,802 - Cash at bank 191,612 255,755 _________ _________ 193,414 255,755 _________ _________

Note 6. Receivables

Trade debtors 29,416 199,795 Bonds 1,192 - _________ _________ 30,608 199,795

_________ _________

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For The Financial Year Ended 31 December 2009 2009 2008 $ $ Note 7. Property, Plant & Equipment

Leasehold improvements – at cost 35,912 - Less accumulated depreciation (88) - _________ _________ 35,824 - _________ _________ Plant and equipment – at cost 174,087 74,974 Less accumulated depreciation (69,289) (47,792) _________ _________ 104,798 27,182 _________ _________ Motor vehicle – at cost 76,128 17,409

Less accumulated depreciation (10,657) (1,767) _________ _________ 65,471 15,642 _________ _________

206,093 42,824 _________ _________ Note 8. Payables Trade creditors and accruals 38,942 227,880 GST payable 2,053 19,276

_________ _________ 40,995 247,156

_________ _________ Note 9. Interest Bearing Liabilities Hire purchase 44,838 -

_________ _________ 44,838 -

_________ _________

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For The Financial Year Ended 31 December 2009 2009 2008 $ $ Note 10. Provisions Current Employee Entitlements

Annual leave 53,156 - Long service leave - - _________ _________ 53,156 -

_________ _________ Non-Current Employee Entitlements

Annual leave 9,585 - Long service leave 15,016 - _________ _________ 24,601 -

_________ _________

Note 11. Cash Flow Statement (a) Reconciliation of Cash For the purposes of statement of cash flows, cash includes cash on hand and in banks and investments in money market instruments, net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the balance sheet as follows: Cash on hand 1,802 - Cash at bank 191,612 255,755

_________ _________ 193,414 255,755 _________ _________

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For The Financial Year Ended 31 December 2009 2009 2008 $ $ (b) Reconciliation of net cash provided by operating activities to operating profit after income tax. Operating loss after taxation 17,517 65,397 Non-cash flows in profit from ordinary activities Depreciation and amortisation of non-current assets 30,475 11,083 Changes in net assets and liabilities Receivables 170,378 (196,422) Prepayments (3,401) - Trade creditors and accruals (206,161) 92,627 Provisions 77,757 29,009 _ Net cash used in operating activities 86,565 1,694 _ Note 12. Remuneration of Directors The names of the directors who have held Office during the financial year are:- D F Abrahams D Ella S Gray R A Cooke P J Lewis N R Jacobsen _ Income paid or payable to all Directors - - - _

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For The Financial Year Ended 31 December 2009 2009 2008 $ $ Note 13. Financial Instruments

Credit risk Exposure to credit risk

The carrying amount of the Company’s financial assets represent the maximum credit exposure. The company’s maximum exposure to credit risk at the reporting date was:

Receivables 30,608 200,986 Cash and cash equivalents 193,414 255,755 _________ 224,022 456,741 _

None of the Company’s receivables are past due. Based on historic information the Company believes that no impairment allowance is necessary in respect of receivables not past due.

Liquidity risk

The following are the contractual maturities of financial liabilities, including estimated interest payments.

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For The Financial Year Ended 31 December 2009 2009 2008 $ $ Note 14. Financial Instruments (cont’d)


Carrying

Amount Contractual Cash Flows

1 year 2-5 Years

31 December 2009

Financial Liabilities

Bank overdraft - - - - Hire purchase (44,838) (44,838) (44,838) - (44,838) (44,838) (44,838) - 31 December 2008

Financial Liabilities

Bank overdraft - - - - Hire purchase - - - - - - - -

Interest Rate Risk Profile

At the reporting date the interest rate profile of the Company’s interest-bearing instruments was:

Carrying Amount 2009 2008 Fixed rate instruments Financial liabilities 44,838 - _________ _________ Variable rate instruments Financial liabilities - - _________ _________ Fair value sensitivity analysis for fixed rate instruments.

The Company does not account for any fixed rate financial assets and liabilities at fair value through profit and loss. Therefore a change in interest rates at the reporting date would not affect profit or loss.

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For The Financial Year Ended 31 December 2009 Note 14. Financial Instruments (cont’d)


Fair values Fair values versus carrying amounts.

The fair values of financial assets and liabilities together with the carrying amounts shown in the balance sheet, are as follows:

2009 2008 Carrying

Amount Fair Value Carrying

Amount Fair Value

Receivables 30,608 30,608 200,986 200,986 Hire purchase (44,838) (44,838) - - Bank 193,414 193,414 255,755 255,755 Trade payables

(40,995) (40,995) (247,156) (247,156)

138,189 138,189 209,585 209,585

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Directors’ Declaration

The directors of Youthconnections.com.au declare that: 1. The financial statements and notes, as set out on pages 7 to 15 are in with

the Corporations Act 2001:

(a) comply with Accounting Standards and the Corporations Regulations 2001; and

(b) give a true and fair view of the financial position as at 30 June 2008

and of the performance for the year ended on that date. 2. In the directors’ opinion there are reasonable grounds to believe that the

company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors. Director Director Tuggerah:

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Report on the Financial Report We have audited the accompanying financial report of Youthconnections.com.au (the Company) comprises the balance sheet as at 31 December 2009 and the income statement, statement of recognised income and expenditure and cash flow statement for the year ended on that date, a summary of significant accounting policies and other explanatory notes and the directors’ declaration. Directors’ Responsibility for the Financial Report The directors of the company are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies and making accounting estimates, that are reasonable in the circumstances. Auditors Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001 and Australian professional ethical pronouncements.

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Audit Opinion In our opinion, the financial report of Youthconnections.com.au is in accordance with, the Corporations Act 2001, including:

(i) giving a true and fair view of the company’s financial position as at 30 June 2007 and of its performance for the year ended on that date; and

(ii) complying with Australian Accounting Standards (including the Australian

accounting Interpretations) and the Corporations Regulations 2001 and FORTUNITY ASSURANCE T R Davidson Partner 155 The Entrance Road Erina NSW 2250 Dated: , 2010

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Additional Financial Information

Consolidated Operating Statement For The Year Ended 31 December 2009

2009 2008 $ $ Income Funding received 1,992,399 1,843,424 Donations received 7,069 36,037 Membership fees 560 Other funding 25,000 12,862 Recoveries 22,927 22,626 Activities income 45,525 Rebates - 10,437 Other income 2,430 2,330 Interest received 961 1,473 ________ _________ 2,096,871 1,929,189 ________ _________ Expenses Accountancy fees 520 2,046 Activities and projects 11,610 23,440 Administration - 40,800 Auditors’ remuneration 13,400 9,407 Bank charges 1,679 260 Bad debts 148 - Cleaning 6,889 - Computer and IT costs 36,288 26,176 Communication costs 39,090 27,050 Consulting & contracting fees 471,196 1,887 Consumables 30,142 33,266 Depreciation 30,475 9,316 Electricity 9,182 5,003 Insurance 8,434 17,195 Interest 2,215 - Legal costs 1,499 4,539 Office & meeting expenses 8,470 9,119 Printing & stationery 6,923 581 Promotions & memberships 33,341 23,217 Rent 87,999 66,759 Repairs & maintenance 13,557 6,110 Salaries & wages 1,092,260 1,344,578 Salaries on costs 20,081 26,400 Set up costs 4,916 4,254 Subscriptions 3,672 2,590

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Additional Financial Information

Consolidated Operating Statement For The Year Ended 31 December 2009

2009 2008 $ $ Expenses (cont’d) Superannuation contributions 91,061 127,217 Travelling expenses 50,960 50,283 Postage 3,347 6,180 ________ _________ 2,079,354 1,863,792 ________ _________ Net Surplus/ (Deficit) for year 17,517 65,397 ________ _________

yc 2009 consolidated accounts

Documents

financial report

financial statements

page number directors

directors declaration

previous year

independent audit report

principal activities

companys operations