Amana Living Financial Report 2014-15

FINANCIAL REPORT 2014/2015 mm

Financials OVERVIEW Amana Living has a culture of looking for better ways to do things. This has paid off in a surplus this year of $6.5 million, which will be invested in enriching the lives of residents and clients, funding our strategic projects and minimising the cost of borrowings.

Government subsidies are our main source of income and rose 19% this year, reflecting growth in demand for home care services, the higher care needs of residents and the new transition care service that commenced in July 2014. These gains were balanced by rising staff costs (11%) to meet the increased demand.

Increased cash holdings resulted from sale of units at Amana Living Treendale, operational efficiencies and legislative changes that enable us to receive higher entry payments for top-level residential care centres.

Amana Living is now in a very strong financial position, with reduced debt. The most significant liabilities are refundable accommodation deposits and resident entry contributions.

Financials

1

Financials WHAT WE EARN AND SPEND

What we earned 9% 4%

Government subsidies Rent, fees and charges Income of a capital nature

19%

Other income

67%

What we spent 11% Employee benefits

8%

Catering and food supplies

5%

Maintenance and repairs Expenses related to assets

6%

Other expenses

71%

2

Financials

WHAT WE OWN AND OWE

What we own 3% 0% 6%

6% 10%

Cash and deposits Debtors Financial assets Property, plant and equipment Investment property Other assets

76%

What we owe 24%

Trade and other payables

6%

7%

1%

Provisions Borrowings Resident accommodation bonds

9%

Resident entry contributions Other liabilities

53%

Financials

3

Financials FINANCIAL REPORTS Deloitte Touche Tohmatsu ABN 74 490 121 060 Woodside Plaza Level 14 240 St Georges Terrace Perth WA 6000 GPO Box A46 Perth WA 6837 Australia

Report of the Independent Auditor on the Summary Financial Statements to the Members of Amana Living Incorporated

Tel: +61 8 9365 7000 Fax: +61 8 9365 7001 www.deloitte.com.au

The accompanying summary financial statements prepared by Amana Living Incorporated, which comprises Deloitte Touche Tohmatsu the summary balance sheet as at 30 June 2015 and the summary statement profit or loss and ABNof 74 490 121 060 other comprehensive income for the year then ended, is derived from the audited general purpose financial Woodside Plaza report of Amana Living Incorporated (the Association) and special purpose financial report of Amana Level 14 Living Anglican Foundation Incorporated (the Subsidiary) for the year ended June 2015. We 240 St30 Georges Terrace expressed an unmodified audit opinion on the Association’s financial report Perth in WA our6000 report dated 23 GPO Box A46 September 2015 and a qualified audit opinion on the Subsidiary’s financial report in our report dated 23 Perth WA 6837 Australia September 2015.

Tel: Fax:

+61 8 9365 7000 +61 8 9365 7001

The summary financial statements do not contain all the disclosures required by the Australian www.deloitte.com.au

Accounting Standards the extent described in Note 1 of the financial Report of theto Independent Auditor on report of the Association and the Subsidiary. Reading the summary financial statements, therefore, is not a substitute for reading the the Statements to the auditedSummary financial reports ofFinancial the Association and the Subsidiary.

Members Amana Living Incorporated Board of Directors’of Responsibility for the Summary Financial Statements The Board of Directors are responsible for the preparation of the summary financial statements in The accompanying financialinstatements

by Amana Living Incorporated, which comprises accordance with thesummary basis described the note toprepared the summary financial statements. the summary balance sheet as at 30 June 2015 and the summary statement of profit or loss and other comprehensive income for the year then ended, is derived from the audited general purpose financial Auditor’s Responsibility report of Amana Living Incorporated (the Association) and special purpose financial report of Amana Living Anglican Foundation Incorporated (the on Subsidiary) for thefinancial year ended 30 June 2015.

Our responsibility is to express an opinion the summary statements based on We our expressed unmodified audit opinion on the with Association’s financialASA report our report dated 23 procedures,an which were conducted in accordance Auditing Standard 810inEngagements to Report September 2015 and a Statements. qualified audit opinion on the Subsidiary’s financial report in our report dated 23 on Summary Financial September 2015.

Opinion The summary financial statements do not contain all the disclosures required by the Australian In our opinion, the summary statementsinderived financial the Association Accounting Standards to thefinancial extent described Note 1from of the the audited financial report report of theofAssociation and and Subsidiary. the Subsidiary for thethe year ended 30financial June 2015 are consistent, in all material audited the Reading summary statements, therefore, is not a respects, substitutewith forthose reading the financial reports, in accordance with the basis described in note to the summary financial statements. audited financial reports of the Association and the Subsidiary.

Basis of and Restrictionforonthe Distribution and Use Statements Board of Accounting Directors’ Responsibility Summary Financial Without ourare opinion, we draw attention to the “The Board of Directors’ Responsibility for The Boardmodifying of Directors responsible for the preparation of the summary financial statements in the Summary Financial above which states that statements. the summary financial statements accordance with the basisStatements” described inparagraph the note to the summary financial have been prepared in accordance with the basis described in note to the summary financial statements.

The summary financial statements have been prepared to assist Amana Living Incorporated to Auditor’s Responsibility meet the financial reporting requirements of the Association.

Our responsibility is tofinancial expressstatements an opinion on bethe summary financial statements based on our As a result, the summary may not suitable for another purpose.

Our report is intended procedures, which were conducted accordance with Auditing Standard 810 Engagements to Report solely for the Members of Amanain Living Incorporated and should notASA be distributed to or used by on Summary Financial Statements. parties other than the Members of Amana Living Incorporated.

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Touche Tohmatsu Limited Opinion

In our opinion, the summary financial statements derived from the audited financial report of the Association and the Subsidiary for the year ended 30 June 2015 are consistent, in all material respects, with those audited financial reports, in accordance with the basis described in note to the summary financial statements.

DELOITTE TOUCHE TOHMATSU

Basis of Accounting and Restriction on Distribution and Use Without modifying our opinion, we draw attention to the “The Board of Directors’ Responsibility for the Summary Financial Statements” paragraph above which states that the summary financial statements have Peter been Rupp prepared in accordance with the basis described in note to the summary financial statements.

The summary financial statements have been prepared to assist Amana Living Incorporated to Partner meet the reporting requirements of the Association.

Charteredfinancial Accountants Perth, 25 September 2015

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Touche Tohmatsu Limited

7 4

Financials

SUMMARY OF CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015 2015 $’000s

2014

Consolidated

ALI

ALAF

Consolidated

ALI

ALAF

99,244

99,147

97

86,860

86,644

216

1,639

1,600

39

2,015

1,975

40

716

716

-

324

316

8

101,599

101,463

136

89,199

88,935

264

Income Revenue Investment revenue Other gain and losses Revenue from ordinary activities Expenditure Employee benefits

67,103

67,103

-

60,148

60,148

-

Catering and food supplies

5,319

5,319

-

5,340

5,340

-

Maintenance and repairs

4,982

4,982

-

4,520

4,520

-

Depreciation

7,432

7,432

-

6,857

6,857

-

Other expenses from ordinary activities

10,244

10,021

223

9,341

9,147

194

Expenses from ordinary activities

95,080

94,857

223

86,206

86,012

194

Profit/(loss) from ordinary activities

6,519

6,606

(87)

2,993

2,923

70

Total profit/(loss) for the year

6,519

6,606

(87)

2,993

2,923

70

(133)

(133)

-

832

832

-

Other comprehensive income Net value gain on available-for-sale financial assets Transfer from specific purpose donation Total comprehensive income for the year

(1)

(1)

-

-

-

-

6,385

6,472

(87)

3,825

3,755

70

SUMMARY OF CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015 2015 $’000s

2014

Consolidated

ALI

ALAF

Consolidated

ALI

ALAF

31,272

30,097

1,299

22,449

21,187

1,462

Non-current assets

155,607

155,607

-

150,058

150,058

-

Total assets

186,879

185,704

1,299

172,507

171,245

1,462

95,379

95,439

124

86,557

86,617

200

93

93

-

455

455

-

Total liabilities

95,472

95,532

124

87,012

87,072

200

Net assets

91,407

90,172

1,175

85,495

84,173

1,262

Total accumulated funds

91,407

90,172

1,175

85,495

84,173

1,262

Current assets

Current liabilities Non-current liabilities

Financials

5

Amana Living Corporate Office 541 Hay Street, Subiaco WA 6008 PO Box 933, Subiaco WA 6904 Tel: 1300 26 26 26 Fax: (08) 9388 3142 Website: www.amanaliving.com.au ABN 45 582 438 433