KIDS HOPE AUS Annual Report 2014/15

KIDS HOPE AUS Ltd

Annual Report 2015

Hope in the life of every child

Our Vision Hope in the life of every child

Our Mission KIDS HOPE AUS is a Christian ministry which

partners with churches and schools to positively

change the lives of vulnerable children through

consistent mentoring relationships.

Our Values Christian In alignment with our Christian faith, KIDS HOPE

AUS works in local communities, to bring hope

and positive transformation to the lives of

vulnerable young children.

Children Children are our focus, because we believe that

every child matters; that every child has the right

to be valued and respected; and every child

should feel supported in reaching their full

potential.

Partnerships We know that the best outcomes for children are

achieved through building strong partnerships,

in strong communities. Establishing vibrant

partnerships between schools, churches and

parents, for the wellbeing of vulnerable children,

is central to the work of KIDS HOPE AUS.

Church KIDS HOPE AUS seeks to assist churches to reach

out to their local communities, by equipping,

resourcing and supporting the development of

an effective and successful mentoring program,

in their local school.

Commitment We value commitment and faithfulness in the

relationships that we build with children,

because we know that they build strong

foundations of trust, and have positive impacts

on children’s lives.


A message from the Chair

This has been a significant year in the history of

KIDS HOPE AUS. We have transitioned to an

independent organisation; moved to our new

office space and we continue to see the program

grow steadily. I am extremely proud of the KIDS

HOPE AUS staff who have handled these changes

with grace, while maintaining our vision to grow

and develop this program to positively impact

children across the country. The conferences

and training offered to our volunteers have

achieved excellent feedback and are a testament

to the hard work of our staff team.

Our Board meets regularly and is passionate

about ensuring the future of KIDS HOPE AUS.

Each member brings skill and commitment to

their role and we continue to build on the eleven

years of the KIDS HOPE AUS journey. Fundraising

for program growth is challenging and will

require ongoing effort to develop a strong

financial base to grow the program.

What began eleven years ago as a small pilot

program within the wider work of World Vision

Australia, is now a fully functioning independent

entity reaching 327 schools and churches across

the country. This is a significant achievement

and the mentoring does change children’s

lives. The relationships developed between local

churches and schools are of great benefit to

both. These transformational relationships

happen because mentors meet faithfully each

week with a child. The voluntary hours of service

given by mentors make an enormous impact and

we are thankful for each one.

We are also thankful for the outstanding

leadership of our Founder and retiring Chief

Executive Officer, Marylin Leermakers, over these

past eleven years. Marylin had the vision to

establish KIDS HOPE AUS and has guided and

directed its growth during this period. Her

achievements have seen the program flourish

and she has been a role model to many.

Working with Marylin has been a delight and we

wish her well in her retirement. KIDS HOPE AUS

owes her a debt of gratitude for her faithful and

loving service and in recognition of this Marylin

will be formally acknowledged as “Founder and

Patron” of KIDS HOPE AUS in her retirement.

We are excited about our future and pray that

the program will continue to be a blessing to

many in the years ahead.

Susan Bazzana

Chair, KIDS HOPE AUS


A message from the CEO

This year has been one of transition and

establishment. After 10 years within World Vision

Australia, KIDS HOPE AUS began operating as an

independent charity from October 1 2014.

It has been an exciting year, not without its

challenges, but with many positive outcomes to

celebrate.

37 new programs have been added.

We have developed strategies to increase

program retention and program support.

We are proud to report that 3,300

vulnerable children in 327 schools are

experiencing the power of one-to-one

mentoring.

More than $2,800,000 worth of volunteer

hours were invested into the lives of

vulnerable children in the last year.

A review of the training has taken place

and plans are well on the way towards

the release of new training resources in

2016.

New promotional materials, with our new

branding, have been developed.

And finally

After 11 operational years of KIDS HOPE AUS

(and almost 2 years of preparation before that) it

is time for me to retire from the CEO role.

I leave the CEO role looking back with deep

gratitude for the opportunity I have had to

develop this amazing ministry. I am thankful too

for all that has been achieved by our dedicated

coordinators and mentors - and the children!

As the Founder of KIDS HOPE AUS and with the

same passion for this ministry that birthed it,

I look forward with great hope and joy towards a

future where thousands of children’s lives will

continue to be transformed by the power of one-

to-one mentoring.

Marylin Leermakers


Our Board of Directors

Chair – Susan Bazzana

John Altmann

Sarah Cleaves

Stephen Larmar

Bob Mitchell

Dean of New College

Village, University of

New South Wales.

Lawyer, Anglican

minister, social

entrepreneur

Manager Baya Gawiy

Children & Family

Centre, WA

Senior Lecturer at Griffith

University, School of

Humanities, QLD

Lawyer, Anglican minister,

CEO Anglican Overseas

Aid


Our Partners

KIDS HOPE USA continues to license KIDS

HOPE AUS to use the KIDS HOPE model in

Australia. We are thankful for the great

support and spirit of generous collaboration

over the last 11 years.

With the nurture and support of World

Vision, KIDS HOPE AUS has grown to

become Australia’s largest mentoring

program. KIDS HOPE AUS and World Vision

Australia continue to have a strong

partnership.

World Vision endorses, supports and

promotes KIDS HOPE AUS as a highly

successful and professional mentoring

model. World Vision CEO, Tim Costello is the

patron of KIDS HOPE AUS

KIDS MATTER and KIDS HOPE AUS share the

objective of improved quality of life, mental

health and wellbeing outcomes for

individuals and families.

‘Alone we can do so little; together we

can do so much.’

Helen Keller


Our Year in Numbers 340 church/school partnerships

16 coordinator training sessions

3400 children mentored

140,000 mentor hours

2,800,000 worth of mentor time


Rachel’s Story Last year, Rachel

gave a speech in

front of a large

group of students,

parents and

teachers at her

school’s valedictory

dinner.

The valedictory

speech was just one

of several speeches Rachel has given in her role

as school captain at Oxley

College. Rachel has come a long way from her

early days in primary school, when she was a

quiet, timid child in need of some individual

attention. At that time, KIDS HOPE AUS stepped

in, providing a mentor for her.

Rachel started school before she was five, and

her mother became concerned about her social

readiness. “She cried almost every day for the

first term of prep,” she said. “It was awful.” Rachel

was matched with Margaret who became a

significant adult friend. Rachel remembers the

hour with Margaret as being the highlight of her

week. “I’m really thankful that Margaret was so

dedicated to spending time with me,” Rachel

said. “Even now she still keeps in touch with me.

She always used to tell me she was really proud

of me – it meant a lot to me.”

Rachel has

certainly gone on

to conquer her

shyness... she

has many friends

and her role as

school captain at

Oxley College

was both voted

on by her peers

and endorsed by

the teachers and

principal. She

plans an arts/law

double degree,

and her ultimate

aim is to use her qualifications to help

others. That’s quite a goal for a girl who

was once too shy to speak to anyone at

school!

KIDS HOPE AUS changes lives…. And that’s no small change!


What we do…

KIDS HOPE AUS builds caring relationships – one

hour, one child, one church, one school.

The aim of KIDS HOPE AUS is to provide care and

support for vulnerable Australian children,

through caring, long term mentoring

relationships. These relationships support

children’s emotional, social and academic

development, thereby enhancing their capacity

to learn and giving them hope for a brighter

future.

KIDS HOPE AUS is built on a partnership model –

whereby a local church and local school partner

to deliver KIDS HOPE AUS mentoring to students

needing additional support. Strong partnerships

contribute to the development of more resilient

children and communities.

And why we do it… Family violence

In 2012-13, there were over 184,000 children

suspected of being harmed or at risk of neglect

or abuse. More than 53,000 notifications were

substantiated and there are over 40,500 children

in out of home care.

Kids Helpline

Over 20,000 calls last year were made by children

aged 5 – 12 years. The top concerns were:

mental health

family relationships

emotional wellbeing

suicide-related

friends/peer relationships

self-injury/self-harm

child abuse (family violence)

bullying

education

www.actagainstviolence.org


ARACY Report on the Wellbeing of Young

Australians 2013: http://www.aracy.org.au/documents/item/126

• Conflict with family members is a strong

concern for nearly 1/4 of young people.

• More than one in 10 parents use harsh

parenting practices with 4-5 year olds

• The number of children in care is rising.

• Significant numbers of Australian families

and children live in poverty without

access to the material basics.

• Sole parents have the highest rates of

deprivation at twice the national average.

• The percentage of young children in

jobless families is increasing.

• More than a million Australians on low

incomes are experiencing housing stress.

• Children and youth who are homeless

experience significant negative social and

health consequences including disrupted

schooling, high rates of mental health

When there is no intervention for vulnerable

children, they are likely to display:

• chronic behaviour problems

• social withdrawal

• peer and teacher rejection

• poor academic achievement

• chronic absenteeism

All of which are predictors of school failure,

delinquency and dropout.

(Converse & Lignugaris Kraft, 2009

Why Australian kids need mentoring

http://www.aracy.org.au/documents/item/126


Stories from Schools

‘As his teachers, we realise Camille is a far more

challenging and a less appreciative participant

compared to other mentees. However, this

demonstrates the great need she has to be part

of the mentor program. Alan, we believe you

have developed a wonderful rapport with her

and a relationship that has gone through the test

of time. Most teachers and classmates change

after a year, but you have remained a constant

throughout her school life.’

‘[Our School] was one of the first schools to

have access to the KIDS HOPE AUS program

thanks to the dedication and commitment of

the [local church]. I thank them for providing

such positive adult role models for students

who need what they provide.’

‘You honestly wouldn't believe the impact Kids

Hope mentors have on our kids - the teachers

often talk about them ... it's a pity I don't record

all the things I hear because everyone here is

very passionate about Kids Hope & the

difference it makes to our kids. In this morning's

staff meeting we were talking about our school

and how much student welfare we do ... your

mentors are such a big part of what makes our

school just awesome. After hearing the very sad

news about Phil Hughes (cricketer) I have been

thinking about what is really important &

thought you should all know how important Kids

Hope is!’


Stories from Churches

‘I think what’s happening through our

KIDS HOPE AUS program excites me

more than almost any other

outreach/community connection

opportunity we have. An amazing

relationship of trust, respect and

support has developed between the

school and the church, and there

have been some wonderful

relationship breakthroughs with our

KIDS HOPE families. The mother of

one of our kids is seriously ill with

cancer, and our mentor, who is an

older lady, has become a

grandmotherly figure in the family.

She has taken them on several family

outings, even hiring a wheelchair to

take the family to the zoo…’

Pastor, Geelong

Each church in our community has

partnered with a school to run a KIDS

HOPE AUS mentoring program. We

are proud to have a whole community

approach to helping these kids.’

(Pastor, Adelaide).


KIDS HOPE AUS Staff Team

10 Year Anniversary Celebration

Me and my mentor – Sam, aged 6

KIDS HOPE AUS Finance Report For more information

Call 03 9780 4823

Email [email protected]

www.kidshopeaus.org.au

Celebrating 10 years of KIDS HOPE AUS

KIDS HOPE AUS LTD

ABN 66 167 768 158

Financial Report

30 June 2015

www.kidshopeaus.org.au

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Kids Hope Aus Ltd

ABN 66 167 768 158

Financial Report 30 June 2015

CONTENTS

DIRECTORS’ REPORT ............................................................................................................................... 3

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME .......................................... 9

STATEMENT OF FINANCIAL POSITION ................................................................................................. 10

STATEMENT OF CHANGES IN EQUITY .................................................................................................. 11

STATEMENT OF CASH FLOWS .............................................................................................................. 12

NOTES TO THE FINANCIAL STATEMENTS ............................................................................................. 13

DIRECTORS’ DECLARATION .................................................................................................................. 23

AUDITOR’S REPORT .............................................................................................................................. 24

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Kids Hope Aus Ltd

ABN 66 167 768 158


DIRECTORS’ REPORT

The directors present their report together with the financial statements of Kids Hope Aus Ltd (the

Company) for the period 29 January 2014 to 30 June 2015 and the auditor’s report thereon.

1. Directors The directors of the Company at any time during or since the end of the period are.

Sue Bazzana Experience & Qualification • Dean of New College Village, University of NSW. Previously Head of Church Partnerships -

World Vision Australia. • Masters of Management – University NSW

Graduate Diploma Christian Studies –Ridley College,

Graduate Diploma Communication & PR - Queensland University of Technology,

Bachelor of Arts Humanities – Griffith University.

Date joined: 29 January 2014 Status: Current member

Bob Mitchell

Experience & Qualification

• CEO, Anglican Overseas Aid. Previously Executive roles at World Vision Australia.

• Bachelor of Laws Queensland University of Technology

Master of Philosophy (By research in Public Policy), Griffith University

Graduate Diploma in Taxation University of Central Queensland

Master of Theological Studies Flinders University

Graduate Diploma in Theology Brisbane College of Theology

Doctor of Philosophy University of Divinity

Date joined: 10 June 2015 Status: Current member

Stephen Larmar


• Senior Lecturer with the School of Human Services and Social Work, Griffith University • Bachelor of Arts (Fine Art) Queensland University of Technology • Graduate Diploma Education Med (Counselling) • PhD (Psychology) Griffith University

Date joined: 12 February 2014 Status: Current member

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Kids Hope Aus Ltd

ABN 66 167 768 158


DIRECTORS’ REPORT (Continued)

Marylin Leermakers


• Bachelor of Arts (Education) Deakin University

• 15 years Primary School Teacher

• Diploma Community Services (TAFE)

22 years Community Development and National Program Management

Date joined: 29 January 2014 Status: Current CEO

Sarah Cleaves


Manager, Baya Gawly Children & Families Centre, Director –Koru Consulting.

• Grad Dip Bus Admin Business Administration – Southern Cross University

• Master or International Relations – Bond University

• Bachelor of Arts (International Studies & European Studies) – Bond University

Date joined: 23/04/2014 Status: Current member

Glenn Scott


Director & Founder - Platform Advisors Pty Ltd, Director, Anglican Overseas Aid

• Bachelor of Commerce, University of Melbourne • Public Practice License, CPA

Date joined: 6 February 2014 Status: Resigned:10 February 2015

John Altmann


Commercial lawyer, Anglican minister and social entrepreneur.

Director - Platform Legal Pty Ltd, Director - Altmann Legal, Director -Barefoot Power Pty Ltd.

• BA/LLB(Hons), Law, Japanese & Philosophy – University of Melbourne • Bachelor of Theology - Ridley College Melbourne

Date joined: 7 April 2014 Status: Current member

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Kids Hope Aus Ltd

ABN 66 167 768 158


DIRECTORS’ REPORT (Continued) 2. Director’s meetings

The number of director’s meetings and number of meetings attended by each of the directors of the Company during the period are:

Director Board Meetings A B Sue Bazzana 5 5 Bob Mitchell 1 1 Steve Larmar 5 5 Marylin Leermakers 5 5 Sarah Cleaves 5 5 Glenn Scott 1 2 John Altmann 5 5

A – Number of meetings attended B – Number of meetings held during the time the director held office during the period

3. Principal activities

The Principal Purpose for which the Company is established is to operate as a tax-deductible public benevolent institution pursuant to item 4.1.1 of section 30-45 of the Income Tax Assessment Act 1997 (Cth), and, in particular, to make provision for the direct relief and alleviation of poverty and disadvantage for children experiencing suffering and distress due to isolation, homelessness, financial and family crises.

The Company supports vulnerable children from disadvantaged backgrounds by providing screened and trained mentors to help meet social/emotional and academic needs of children referred by teachers to the program. The Company facilitates the development of church/school partnerships and provides comprehensive screening, training and program management resources for partner churches to implement the program in schools.

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Kids Hope Aus Ltd

ABN 66 167 768 158



4. Objectives and strategies

To ensure our success, the Company focuses on four strategic pillars:

A. Programs: Our commitment to children

• Develop and implement a national growth strategy to increase the number of children supported by trained mentors. (Growth of current programs)

• Conduct a feasibility study to ascertain and consider new opportunities for services and/or products into new markets

• Undertake a review of the Kids Hope Aus’ training strategy to ensure it is effective and relevant.

• Implement a process to effectively monitor and evaluate the Kids Hope mentoring program.

B. Operations: Our base for long-term success

• Implement relevant Human Resources Management systems and establish payroll procedures.

• Develop and implement a volunteer strategy designed to meet the needs both the strategic plan and the organisation.

• Design a staff resourcing strategy to meet the demands of the strategic plan

• Identify required non-financial resources to support the program and engage suitable service providers where appropriate.

• Review the transition plan to ensure all necessary actions are completed during the separation from World Vision Australia.

• Complete a detailed risk assessment and implement mitigation strategies to address identified risks.

• Design and implement governance policies as appropriate

• Complete a board skills audit to inform future board recruitment and succession planning.

• Implement procedures in relation to the operations of the Board

C. Stakeholders: Our relationship with supporters

• Complete a style guide and ‘Key Messaging Framework’ to ensure consistency in messaging, communications and branding.

• Undertake a detailed marketing strategy designed to identify required resources to effectively market the Company

• Sign a memorandum of understanding with World Vision Australia and implement a strategy to ensure the terms of the MoU are fulfilled.

• Design and implement a strategy for collaboration and liaison with Kids Hope USA. • Undertake a review of relationships with churches and implement strategies to

enhance those relationships • Undertake a review of relationships with schools and implement strategies to

enhance those relationships • Review strategies to support churches in maintenance and growth of the Company’s

program. • Review and improve systems to better support schools in partnering with the

Company’s program.

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Kids Hope Aus Ltd

ABN 66 167 768 158



D. Finances: Our sustainable approach to the future

• Complete operational and capital budgets, together with cash-flow projections for 2015, 2016 and 2017

• Appoint professional advisors, including Accountants and Auditors • Prepare and implement a detailed fundraising strategy to ensure the ongoing

sustainability and growth of the organisation.

5. Performance measurement

The Company’s strategic Plan includes a table of objectives, strategies, actions,

accountabilities and measures to ensure that each objective with its aligned activities is

completed.

6. Member’s guarantee The Company is a company limited by guarantee. If the Company is wound up, the Constitution state that each member is required to contribute a maximum of $10 each towards meeting any outstanding obligation of the Company. At 30 June 2015, the total amount that members of the company are liable to contribute if the company is wound up is $60.00

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Kids Hope Aus Ltd

ABN 66 167 768 158


STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30 JUNE 2015

Note 2015

$

Revenue 2

444,304

Employee benefits expense (292,600)

Depreciation and amortisation expenses (576)

Rental expense

(11,514)

Training expense (11,984)

Audit, legal and consultancy expense (11,104)

Administration expense (16,242)

Fundraising expense (42,214)

Other expenses (28,788)

Surplus before income tax

29,282

Income tax expense 1g

-

Surplus for the period

29,282

Other comprehensive income: Total other comprehensive income for the period

-

Total comprehensive income for the period

29,282

The accompanying notes form part of these financial statements.

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Kids Hope Aus Ltd

ABN 66 167 768 158


STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2015

Note 2015

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 3

161,084

Trade and other receivables 4

5,780

Prepayments 1,875

TOTAL CURRENT ASSETS

168,739

NON-CURRENT ASSETS

Plant and equipment 5

7,122

TOTAL NON-CURRENT ASSETS

7,122

TOTAL ASSETS

175,861

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 6

37,588

Provisions 7 69,679

Income in advance 39,312

TOTAL CURRENT LIABILITIES

146,579

NON-CURRENT LIABILITIES

TOTAL NON-CURRENT LIABILITIES -

TOTAL LIABILITIES

146,579

NET ASSETS

29,282

EQUITY

Accumulated surplus 29,282

TOTAL EQUITY

29,282


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Kids Hope Aus Ltd

ABN 66 167 768 158


STATEMENT OF CHANGES IN EQUITY


Accumulated Surplus

Total

$

$

Balance at 29 January 2014

- -

Comprehensive income

Surplus for the period

29,282 29,282

Total comprehensive income for the period attributable to the member of the Company

29,282 29,282

Balance at 30 June 2015 29,282 29,282


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Kids Hope Aus Ltd

ABN 66 167 768 158


STATEMENT OF CASH FLOWS


Note 2015

$

Cash flows from operating activities

Cash receipts from donations 65,793 Cash receipts from church affiliates 154,791

Cash receipts from grants

6,000

Cash receipts from partner contribution 240,000

Cash receipts from training fees 14,781

Interest received 1,810

Cash paid to employees and suppliers

(314,393)

Net cash provided by operating activities 168,782

Cash flows from investing activities

Acquisitions of plant and equipment (7,698)

Net cash used in investing activities (7,698)

Net increase in cash and cash equivalents 161,084

Cash and cash equivalents at beginning of period

-

Cash and cash equivalents at end of period 3

161,084


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Kids Hope Aus Ltd

ABN 66 167 768 158


NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2015

Grants A number of the Company programs are supported by grants received. If conditions are attached to a grant which must be satisfied before the Company is eligible to receive the contribution, recognition of the grant as revenue is deferred until those conditions are satisfied. Where a grant is received on the condition that specified services are delivered, to the grantor, this is considered a reciprocal transaction. Revenue is recognised as services are performed and at year-end until the service is delivered. Revenue from a non-reciprocal grant that is not subject to conditions is recognised when the Company obtains control of the funds, economic benefits are probable and the amount can be measured reliably. Where a grant may be required to be repaid if certain conditions are not satisfied, a liability is recognised at year end to the extent that conditions remain unsatisfied. Where the Company receives a non-reciprocal contribution of an asset from a government or other party for no or nominal consideration, the asset is recognised at fair value and a corresponding amount of revenue is recognised. Donations Donations collected, including cash and goods for resale, are recognised as revenue when the Company gains control, economic benefits are probable and the amount of the donation can be measured reliably. Interest income Interest income is recognised on an accrual basis using the effective interest method.

(b) Plant and equipment

Plant and other equipment are initially recognised at acquisition cost or manufacturing cost, including any costs directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by the Company management. Plant and other equipment are subsequently measured using the cost model, cost less subsequent depreciation and impairment losses. Depreciation is recognised on a straight-line basis to write down the cost less estimated residual value of plant and other equipment. The following useful lives are applied:

- plant and equipment: 3-10 years

- computer hardware: 3-7 years

In the case of leasehold property, expected useful lives are determined by reference to comparable owned assets or over the term of the lease, if shorter. Material residual value estimates and estimates of useful life are updated as required, but at least annually. Gains or losses arising on the disposal of plant and equipment are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognised in profit or loss within other income or other expenses.

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Kids Hope Aus Ltd

ABN 66 167 768 158



(c) Leases

Operating leases Where the Company is a lessee, payments on operating lease agreements are recognised as an expense on a straight-line basis over the lease term. Associated costs, such as maintenance and insurance, are expensed as incurred.

(d)

Impairment of assets At the end of each reporting period, the entity assesses whether there is any indication that an asset may be impaired. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset being the higher of the asset’s fair value less costs to sell and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (eg in accordance with the revaluation model in AASB 116) Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard. Where it is not possible to estimate the recoverable amount of an individual asset, the entity estimates the recoverable amount of the cash-generating unit to which the asset belongs. Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.

(e)

Financial instruments Recognition, initial measurement and derecognition Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument, and are measured initially at fair value adjusted by transactions costs, except for those carried at fair value through profit or loss, which are initially measured at fair value. Subsequent measurement of financial assets and financial liabilities are described below. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.

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(f) Classification and subsequent measurement of financial assets

For the purpose of subsequent measurement, financial assets other than those designated and effective as hedging instruments are classified into the following categories upon initial recognition: - loans and receivables

- financial assets at Fair Value Through Profit Or Loss (‘FVTPL’)

- Held-To-Maturity (‘HTM’) investments;

- Available-For-Sale (‘AFS’) financial assets

The category determines subsequent measurement and whether any resulting income and expense is recognised in profit or loss or in other comprehensive income. All financial assets except for those at FVTPL are subject to review for impairment at least at each reporting date to identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Different criteria to determine impairment are applied for each category of financial assets, which are described below. All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs or finance income, except for impairment of trade receivables which is presented within other expenses. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial recognition, these are measured at amortised cost using the effective interest method, less provision for impairment. Discounting is omitted where the effect of discounting is immaterial. The Company’s cash and cash equivalents, trade and most other receivables fall into this category of financial instruments. Individually significant receivables are considered for impairment when they are past due or when other objective evidence is received that a specific counterparty will default. Receivables that are not considered to be individually impaired are reviewed for impairment in Company’s, which are determined by reference to the industry and region of a counterparty and other shared credit risk characteristics. The impairment loss estimate is then based on recent historical counterparty default rates for each identified group. Financial assets at FVTPL Financial assets at FVTPL include financial assets that are either classified as held for trading or that meet certain conditions and are designated at FVTPL upon initial recognition. Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair values of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists.

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HTM investments HTM investments are non-derivative financial assets with fixed or determinable payments and fixed maturity other than loans and receivables. Investments are classified as HTM if the Company has the intention and ability to hold them until maturity. The Company currently holds long term deposits designated into this category. HTM investments are measured subsequently at amortised cost using the effective interest method. If there is objective evidence that the investment is impaired, determined by reference to external credit ratings, the financial asset is measured at the present value of estimated future cash flows. Any changes to the carrying amount of the investment, including impairment losses, are recognised in profit or loss.

AFS financial assets AFS financial assets are non-derivative financial assets that are either designated to this category or do not qualify for inclusion in any of the other categories of financial assets. The Company’s AFS financial assets include listed securities. All AFS financial assets are measured at fair value. Gains and losses are recognised in other comprehensive income and reported within the AFS reserve within equity, except for impairment losses and foreign exchange differences on monetary assets, which are recognised in profit or loss. When the asset is disposed of or is determined to be impaired the cumulative gain or loss recognised in other comprehensive income is reclassified from the equity reserve to profit or loss and presented as a reclassification adjustment within other comprehensive income. Interest calculated using the effective interest method and dividends are recognised in profit or loss within ‘revenue’. Reversals of impairment losses for AFS debt securities are recognised in profit or loss if the reversal can be objectively related to an event occurring after the impairment loss was recognised. For AFS equity investments impairment reversals are not recognised in profit loss and any subsequent increase in fair value is recognised in other comprehensive income. Classification and subsequent measurement of financial liabilities The Company’s financial liabilities include borrowings and trade and other payable. Financial liabilities are measured subsequently at amortised cost using the effective interest method, except for financial liabilities held for trading or designated at FVTPL, that are carried subsequently at fair value with gains or losses recognised in profit or loss. All interest-related charges and, if applicable, changes in an instrument’s fair value that are reported in profit or loss are included within finance costs or finance income.

(g)

Income taxes

No provision for income tax has been raised as the Company is exempt from income tax under Div 50 of the Income Tax Assessment Act 1997.

(h) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

18

Kids Hope Aus Ltd

ABN 66 167 768 158


NOTES TO THE FINANCIAL STATEMENTS


(i) Post-employment benefits and short term employee benefits

The Company provides post-employment benefits through defined contribution plans. Defined contribution plans The Company pays fixed contributions into independent entities in relation to several state plans and insurance for individual employees. The Company has no legal or constructive obligations to pay contributions in addition to its fixed contributions, which are recognised as an expense in the period that relevant employee services are received. Short-term employee benefits Short-term employee benefits are current liabilities included in employee benefits, measured at the undiscounted amount that the Company expects to pay as a result of the unused entitlement. Annual leave is included in ‘other long-term benefit’ and discounted when calculating the leave liability as the Company does not expect all annual leave for all employees to be used wholly within twelve (12) months of the end of reporting period. Annual leave liability is still presented as current liability for presentation purposes under AASB 101 Presentation of Financial Statements.

(j) Provisions, contingent liabilities and contingent assets

Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provisions are discounted to their present values, where the time value of money is material. Any reimbursement that the Company can be virtually certain to collect from a third party with respect to the obligation is recognised as a separate asset. However, this asset may not exceed the amount of the related provision. No liability is recognised if an outflow of economic resources as a result of present obligation is not probable. Such situations are disclosed as contingent liabilities, unless the outflow of resources is remote in which case no liability is recognised.

(k) Income in advance

The liability for income in advance is the affiliation fees received in advance. The fees are usually provided or the conditions usually fulfilled within twelve (12) months of receipt. Where the amount received is in respect of fees to be provided over a period that exceeds twelve (12) months after the reporting date or the conditions will only be satisfied more than twelve (12) months after the reporting date, the liability is discounted and presented as non-current.

19

Kids Hope Aus Ltd

ABN 66 167 768 158




(l)

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 Tax 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 the expense. Receivables and payables in the statement of financial position are shown inclusive of GST.

(m)

Economic dependence

The Company is dependent upon the ongoing receipt of sponsorship from World Vision Australia and community and corporate donations to ensure the ongoing continuance of its programs. At the date of this report management has no reason to believe that this financial support will not continue.

(n)

Significant management judgement in applying accounting polices

When preparing the financial statements, management undertakes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses. Estimation uncertainty Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below. Actual results may be substantially different. Impairment In assessing impairment, management estimates the recoverable amount of each asset or cash-generating unit based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate.

(o)

Employee benefits

Short-term employee benefits Provision is made for the company’s obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service, including wages and salaries. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled. The company’s obligation for short-term employee benefits such as wages and salaries are recognised as a part of current trade and other payables in the statement of financial position.

20

Kids Hope Aus Ltd

ABN 66 167 768 158



FOR THE PERIOD ENDED 30 JUNE 2015 Other long-term employee benefits The company classifies employee’s ‘long service’ leave and annual leave entitlements as other long-term employee benefits as they are not expected to be settled wholly with 12 months after the end of the annual reporting period in which the employees render the related service. Provision us made for the company’s obligation for other long-term employee benefits, which are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures, and are discounted at rates determined by reference to market yields at the end of the reporting period on government bonds that have maturity dates that approximate the terms of the obligations. Upon measurement of obligations for other long-term employee benefits, the net change in the obligation is recognised in profit or loss classified under employee benefits expense. The company’s obligation for long-term employee benefits are presented as non-current liabilities in its statement of financial position, expect where the company does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which case the obligations are presented as current liabilities. Retirement benefit obligations Defined contribution superannuation benefits All employees of the company received defined contributions superannuation entitlements, for which the company pays the fixed superannuation guarantee contribution (currently 9.50% of the employee’s average ordinary salary) to the employee’s superannuation fund of choice. All contributions in respect of employee’s defined contribution entitlements are recognised as an expense when they become payable. The company’s obligation with respect to employee’s defined contribution entitlements is limited to its obligation for any unpaid superannuation guarantee contributions at the end of the reporting period. All obligations for unpaid superannuation guarantee contributions are measured at the (undiscounted) amounts expected to be paid when the obligation is settled and are presented as current liabilities in the company’s statement of financial position.

21

Kids Hope Aus Ltd

ABN 66 167 768 158




2015

$

2.

REVENUE AND OTHER INCOME

Church affiliation fees 115,920

Interest received 1,810

Training fees 15,221

Partner contribution 240,000

Non-Government grants 6,000

Donations 65,353

444,304

3. CASH AND CASH EQUIVALENTS

Cash at bank

161,049

Petty cash 35

161,084

4.

TRADE AND OTHER RECEIVABLES

CURRENT

Accounts receivable 440

Goods & services tax 5,084

Wages overpaid 256

5,780

5. PLANT AND EQUIPMENT

Plant and equipment

7,698 Less accumulated depreciation (576)

Total plant and equipment 7,122

22

Kids Hope Aus Ltd

ABN 66 167 768 158




(a) Movements in carrying amounts for each class of plant and equipment Plant and

equipment $

Total $

Carrying amount at 29 January 2014 Additions 7,698 7,698 Depreciation expense (576) (576) Carrying amount at 30 June 2015 7,122 7,122

2015

6.

TRADE AND OTHER PAYABLES

$

CURRENT

Accounts payable 12,713

Superannuation payable 6,730

Withholding taxes payable 4,088

Other payables 14,057

37,588

7. PROVISIONS

2015 $ CURRENT Provisions for employee benefits: annual leave 33,544 Provisions for employee benefits: long service leave 36,135 69,679 NON-CURRENT Provisions for employee benefits: long service leave - - 69,679

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF KIDS HOPE AUS LTD.

Report on the Financial Report

We have audited the accompanying financial report of Kids Hope Aus Ltd. (the company), which comprises the statement of financial position as at 30 June 2015, the statement of profit or loss and comprehensive income, statement of changes in equity and statement of cash flows for the period then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Directors’ Responsibility for the Financial Report

The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Reduced Disclosure Requirements (including the Australian Accounting Interpretations) and the Australian Charities and Not-for-profits Commission Act 2012 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s 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. Those 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 judgment, 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. 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 Australian Charities and Not-for-profits Commission Act 2012.

accountants

60-64 Railway Road, Blackburn 3130PO Box 189, Blackburn 3130t: (03) 9878 1477 f: (03) 9894 [email protected]

ABN 84 164 947 290

Liability limited by a scheme approved under Professional Standards Legislation

Opinion

In our opinion the financial report of Kids Hope Aus Ltd. has been prepared in accordance with Division 60 of the Australian Charities and Not-for-profits Commission Act 2012, including:

a. giving a true and fair view of the company’s financial position as at 30 June 2015 and of its financial performance for the period ended on that date; and

b. complying with Australian Accounting Standards - Reduced Disclosure Requirements (including Australian Accounting Interpretations) and Division 60 of the Australian Charities and Not-for-profits Commission Regulations 2013.

Matthew Hung, CA rdl.accountants 22 December 2015 Blackburn, Victoria

AUDITOR’S INDEPENDENCE DECLARATION UNDER DIVISION 60 OF THE AUSTRALIAN CHARITIES AND NOT-FOR-PROFITS COMMISSION ACT 2012 TO THE DIRECTORS OF KIDS HOPE AUS LTD. I declare that, to the best of my knowledge and belief, during the year ended 30 June 2015 there have been:

i. no contraventions of the auditor independence requirements as set out in the Australian Charities and Not-for-profit Commission Act 2012 in relation to the audit; and

ii. no contraventions of any applicable code of professional conduct in relation to the audit.

Matthew Hung, CA rdl.accountants 17 December 2015 Blackburn, Victoria

accountants

60-64 Railway Road, Blackburn 3130PO Box 189, Blackburn 3130t: (03) 9878 1477 f: (03) 9894 [email protected]

ABN 84 164 947 290

Liability limited by a scheme approved under Professional Standards Legislation

Documents

KIDS HOPE AUS Annual Report 2014/15