Camberwell Grammar School Foundation Financial Statements 2023

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

The Camberwell Grammar School Foundation Limited

ACN: 006 703 171

Responsible Persons' Report

31 December 2023

Your responsible persons present their report on The Camberwell Grammar School Foundation Limited for the financial year ended 31 December 2023

Information on responsible persons

The names,qualifications, experience and special responsibilities of each person who has been a responsible person during the year and to the date of this report are:

Mr Jack Wegman

Elected May 2005 Qualifications BA, Dip. Psych, Company Director

Mr Gavin Lee Powell

Elected April 2010 Qualifications BComm, CA, FCIS, MSAA

Mr Robert Mark Scheiber

Elected March 2013 Qualifications B. Bus (Acc), CAANZ, MBA, MTax, CTA

Mr David Antony Haintz, AM

Elected May 2021 Qualifications CFP, FFPA, B. Ed, Dip FP, FAICD

Ms Lyndal Barrington

Elected August 2016 Qualifications Practice Manager

Responsible persons have been in office since the start of the financial year to the date of this report unless otherwise stated.

Principal activities

The principal activities of The Camberwell Grammar School Foundation Limited (the 'Foundation') during the year were to:

 through its own initiatives and those of the Camberwell Grammar School (the 'School') and the broader School community, drive and support fundraising initiatives for the benefit of the School;

 support the ‘friend raising’ initiatives within the broader School community;

 apply funds raised by the Company in the best interests of the School; and

 act as fiduciary custodian of funds previously raised and not yet applied.

Members' guarantee

The Camberwell Grammar School Foundation Limited is a company limited by guarantee. In the event of, and for the purpose of, winding up of the Foundation, the amount capable of being called up from each member and any person or association who ceased to be a member in the year prior to the winding up, is limited to $5.

The Camberwell Grammar School Foundation Limited

ACN: 006 703 171

Responsible Persons' Report

31 December 2023

Operating results

The total comprehensive income of the Foundation amounted to $ 1,397,593 (2022: $7,257,136).

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 Foundation, the results of those operations or the state of affairs of the Foundation in future financial years.

Auditor's independence declaration

The auditor's independence declaration in accordance with section 60-40 of the Australian Charities and Not-for-profits Commission Act 2012, for the year ended 31 December 2023 has been received and can be found in this financial report.

Signed in accordance with a resolution of the Board:

Responsible person: .......................................................... Mr David Antony Haintz, AM

Dated 14 February 2024

Responsible person: ........................................................... Mr Gavin Lee Powell

The Camberw ell Grammar School Foundation Limited

ACN: 006 703 171

Auditor's Independence Declaration under section 60-40 of the Australian Charities and Not-for-profits Commission Act 2012 to the Board of The Camberw ell Grammar School Foundation Limited

I declare that, to the best of my knowledge and belief, during the year ended 31 December 2023, there have been:

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

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

R A LANE Director

14 February 2024

50 Camberwell Road HAW THORN EAST VIC

ACCRU MELBOURNE (AUDIT) PTY LTD

Statement of Comprehensive Income

For the Year Ended 31 December 2023

7,257,136

Statement of Financial Position

As At 31 December 2023

Statement of Changes in Members' Funds

For the Year Ended 31 December 2023

2023

The accompanying notes form part of these financial statements.

Statement of Cash Flows

For the Year Ended 31 December 2023

The Camberwell Grammar School Foundation Limited

ACN: 006 703 171

Notes to the Financial Statements

For the Year Ended 31 December 2023

The financial statements are for The Camberwell Grammar School Foundation Limited (the Foundation) as a not-for-profit individual entity, incorporated and domiciled in Australia. The Foundation is a company limited by guarantee.

1 Summary of Significant Accounting Policies

(a) Basis of preparation

The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards - Simplified Disclosures and the Australian Charities and Not-for-profits Commission Act 2012

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated.

The financial statements have been prepared on an accruals basis and are based on historical costs modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

(b) Income tax

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

(c) Revenue and other income

Revenue is recognised on a basis that reflects the transfer of promised goods or services at an amount that reflects the consideration the Foundation expects to receive in exchange for those goods or services. Revenue is recognised by applying the five-step model specified under AASB 15 Revenue from Contracts with Customers

Donations and bequests are recognised as revenue when the right to receive the donation or bequest has been established.

Interest revenue is recognised when it becomes receivable on a proportional basis taking into account the interest rates applicable to the financial assets.

Dividend revenue is recognised when the right to receive a dividend has been established.

Other revenue is recognised when the right to receive the revenue has been established.

All revenue is stated net of the amount of goods and services tax (GST).

Notes to the Financial Statements

For the Year Ended 31 December 2023

1 Summary of Significant Accounting Policies

(d) Financial instruments

Financial instruments are recognised initially on the date that the Foundation becomes party to the contractual provisions of the instrument.

On initial recognition, all financial instruments are measured at fair value plus transaction costs (except for instruments measured at fair value through profit or loss where transaction costs are expensed as incurred).

Financial assets

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

Classification

On initial recognition, the Foundation classifies its financial assets into the following categories, those measured at:

 amortised cost

 fair value through other comprehensive income - equity instrument (FVOCI - equity)

Financial assets are not reclassified subsequent to their initial recognition unless the Foundation changes its business model for managing financial assets.

Amortised cost

Assets measured at amortised cost are financial assets where:

 the business model is to hold assets to collect contractual cash flows; and

 the contractual terms give rise on specified dates to cash flows are solely payments of principal and interest on the principal amount outstanding.

The Foundation's financial assets measured at amortised cost comprise trade and other receivables and cash and cash equivalents in the statement of financial position

Subsequent to initial recognition, these assets are carried at amortised cost using the effective interest rate method less provision for impairment.

Interest income and impairment are recognised in profit or loss. Gain or loss on derecognition is recognised in profit or loss.

Fair value through other comprehensive income

Equity instruments

The Foundation has a number of strategic investments in listed entities over which are they do not have significant influence nor control. The Foundation has made an irrevocable election to classify these equity investments as fair value through other comprehensive income as they are not held for trading purposes.

Notes to the Financial Statements

For the Year Ended 31 December 2023

1 Summary of Significant Accounting Policies

(d) Financial instruments

Financial assets

These investments are carried at fair value with changes in fair value recognised in other comprehensive income (financial asset reserve). On disposal any balance in the financial asset reserve is transferred to retained earnings and is not reclassified to profit or loss.

Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI.

Impairment of financial assets

Impairment of financial assets is recognised on an expected credit loss (ECL) basis for the following assets:

 financial assets measured at amortised cost

 debt investments measured at FVOCI

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Foundation considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Foundation's historical experience and informed credit assessment and including forward looking information.

The Foundation uses the presumption that an asset which is more than 30 days past due has seen a significant increase in credit risk.

Trade receivables and contract assets

Impairment of trade receivables and contract assets have been determined using the simplified approach in AASB 9 which uses an estimation of lifetime expected credit losses. The Foundation has determined the probability of non-payment of the receivable and contract asset and multiplied this by the amount of the expected loss arising from default.

The amount of the impairment is recorded in a separate allowance account with the loss being recognised in finance expense. Once the receivable is determined to be uncollectable then the gross carrying amount is written off against the associated allowance.

Financial liabilities

The Foundation measures all financial liabilities initially at fair value less transaction costs, subsequently financial liabilities are measured at amortised cost using the effective interest rate method.

The financial liabilities of the Foundation comprise trade payables, bank and other loans and finance lease liabilities.

(e) Comparative figures

The comparative figures have been adjusted for the recognition of the Building Fund within the Foundation's financial statements.

Notes to the Financial Statements

For the Year Ended 31 December 2023

3 Cash and Cash Equivalents

4

6 Property, Plant and Equipment

7

Notes to the Financial Statements

For the Year Ended 31 December 2023

8 Cash Flow Information

Reconciliation of net surplus to net cash provided by operating activities: Net surplus for the year 632,189 8,634,979

Non-cash flows in surplus:

- investment income received via dividend reinvestment plans (DRPs) (61,864) (124,047) - donations received in kind - (3,112,350)

Changes in assets and liabilities:

- (increase)/decrease in trade and other receivables 4,071,965 (4,038,763) - increase/(decrease) in trade and other payables 69,526 1,585 Cashflow from operations 4,711,816 1,361,404

9 Financial Risk Management

The Foundation's financial instruments consist mainly of deposits with banks, term deposits, managed listed investments, accounts receivable and payable. The Foundation does not invest in derivative financial instruments.

The main risks the Foundation is exposed to through its financial instruments are interest rate risk, liquidity risk, credit risk and price risk.

Interest rate risk

The Foundation's exposure to interest rate risk is the risk that a financial instruments value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on classes of financial assets and financial liabilities.

The responsible persons do not anticipate any dramatic fluctuation in interest rates that have material impact on the investment portfolio and hence the balances of financial assets on the statement of financial position as at the balance date.

Liquidity risk

The Foundation manages liquidity risk by monitoring forecast cash flows and ensuring that adequate cash on hand is maintained.

Price risk

Price risk relates to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in value of investments.

Such risk is managed through diversification of investments across industries and geographic locations.

Credit risk

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements.

The Camberwell Grammar School Foundation Limited

ACN: 006 703 171

Notes to the Financial Statements

For the Year Ended 31 December 2023

9 Financial Risk Management

The Foundation does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into.

The Foundation is not subject to any financial risks other than the ones listed above.

The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the statement of financial position and in the notes to the financial statements. 10 Auditors' Remuneration

11 Related Party Transactions

These parties are considered to be related parties to The Camberwell Grammar School Foundation:

- The Camberwell Grammar School - The Camberwell Grammar School Foundation Building Fund - The K.M. Slater Charitable Trust

Notes to the Financial Statements

For the Year Ended 31 December 2023

12 Company as trustee

(a) The K.M. Slater Charitable Trust

The Foundation acts as trustee of the K.M. Slater Charitable Trust

The Foundation was appointed the Trustee of The K.M. Slater Charitable Trust (the Trust). The purpose of the Trust is to provide education support to eligible school-age beneficiaries. Due to the special purpose nature of the trust, the financial information has been reported separately under this note.

As at the balance date, assets and liabilities, receipts and payments of the Trust which are not part of the Foundation's statement of comprehensive income and statement of financial position are detailed as below: Statement of assets and liabilities

The Camberwell Grammar School Foundation Limited

ACN: 006 703 171

Responsible Persons' Declaration

The responsible persons declare that:

1. The financial statements and notes, as set out on pages 4 to 14, are in accordance with the Australian Charities and Not-for-profits Commission Act 2012 and:

a. comply with Accounting Standards - Simplified Disclosures (including the Australian Accounting Interpretations); and

b. give a true and fair view of the financial position as at 31 December 2023 and of the performance for the year ended on that date of the Foundation

2. In the responsible persons' opinion, there are reasonable grounds to believe that the Foundation 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.

Responsible person

Dated 14 February 2024

Responsible person

Mr David Antony Haintz, AM

Mr Gavin Lee Powell

The Camberw ell Grammar School Foundation Limited Independent Audit Report to the members of The Camberw ell Grammar School Foundation Limited

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of The Camberwell Grammar School Foundation Limited (the Company), which comprises the statement of financial position as at 31 December 2023, the statement of comprehensive income, the statement of changes in members' funds and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the responsible persons' declaration

In our opinion, the accompanying financial report of the Company is in accordance with the Division 60 of the Australian Charities and Not-for-profits Commission Act 2012, including:

(i) giving a true and fair view of the Company's financial position as at 31 December 2023 and of its financial performance for the year ended; and

(ii) complying with Australian Accounting Standards - Simplified Disclosures (including the Australian Accounting Interpretations) and the Australian Charities and Not-for-profits Commission Regulation 2013

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of section 60-40 of the Australian Charities and Not-for-profits Commission Act 2012 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion

Information other than the Financial Report and Auditor's Report Thereon

The responsible persons are responsible for the other information. The other information comprises the information included in the responsible persons' report for the year ended 31 December 2023, but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Responsible Persons for the Financial Report

The responsible persons 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 - Simplified Disclosures (including the Australian Accounting Interpretations) and the Australian Charities and Not-for-profits Commission Act 2012 and for such internal control as the responsible persons determine 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.

In preparing the financial report, the responsible persons are responsible for assessing the school’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the responsible persons either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. W e also:

 Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

 Obtain an understanding of internal control relevant to the audit 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 school’s internal control.

 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the responsible persons.

 Conclude on the appropriateness of the responsible persons’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the school’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the school to cease to continue as a going concern.

 Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the responsible persons regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

R A LANE Director

14 February 2024