FINANCIAL STATEMENTS FOR 2002

2002 2001 $ $ (c) Asset Revaluation

Reserve

Balance at 1 January 10,744,580 2,236,291 Revaluation Increment Nil 8,508,289 ___________ ___________ Balance 31 December 10,744,580 10,744,580 ___________ ___________

(d) Residents’

Assistance Reserve 16,067 15,927 Donations 1,060 140 ___________ ___________ 17,127 16,067 ___________ ___________ 11,829,447 11,796,716 ___________ ___________

9. STATEMENT OF CASHFLOWS (a) Cashflows from operating activities

Members’ subscriptions 52,218 65,392 Accommodation & meals 620,771 554,225 Donations & other income 32,798 97,830 ___________ ___________ Payments to suppliers & employees (739,432) (722,727) ___________ ___________ Net cash used in Operating activities (33,645) (5,280) ___________ ___________

Cashflows from investing activities

Property rentals 150,962 210,939 Proceeds on sale of Property 5,150,000 Nil Funds expended on structure contributions (162,000) Nil Funds expended on re-development (125,611) (239,674) Funds expended on asset purchases (4,638) (85,465) Interest on property investment accounts 28,271 2,176 Payments relating to property investments (8,138) (7,342) ___________ ___________ Net cash provided by investing activities 5,028,846 359,982 ___________ ___________

Cashflows from financing activities

Repayment of borrowings Nil (309,142) Net funds provided by financing activities Nil (309,142) ___________ ___________

Net increase in cash held 4,995,201 45,560 Cash at the beginning of the financial year 217,398 171,838 Cash at the end of the financial year 5,212,599 217,398 ___________ ___________

2002 2001 $ $

(b) Reconciliation of net cash provided by operating activities to operating surplus after abnormal items

Operating surplus after abnormal items 184,010 161,951 Depreciation of non current assets 16,556 50,382

Changes in net assets and liabilities

Increase/(Decrease) in provision for employee entitlements 9,156 5,363 Decrease(Increase) in receivables, prepayments and inventory (65,134) 207,107 Increase/(Decrease) in other creditors & borrowings (17,802) (273,753) Decrease/(Increase) in non-current assets 4,868,415 (105,490) Net Increase Cash Held 4,995,201 45,560 ___________ ___________

10. SHARE CAPITAL

The Association has no share capital. The Association was incorporated under the provisions of the Associations Incorporation Act on 12 June 1991.

11. RETAINED FUNDS

Retained funds at 1 January 83,166 (54,432) Add Net Surplus for year 184,010 161,951 Less Interest to Graduate House Extension Reserve (25,180) (23,798) Less Donations transferred to other Reserves (7,551) (555) ___________ ___________ Retained Funds at 31 December 234,445 83,166 ___________ ___________

12. The Graduate House Extension Reserve includes an amount of $86,094 constituting donations made in 1993 to 1995 to the Graduate Union Building Appeal and an amount refunded by the University of Melbourne in 1995 for general building or maintenance purposes. An appeal was made in 1980 for funds to redevelop a building (which was subsequently demolished) to provide additional low-cost student accommodation.

Present Council is of the view that Council will seek appropriate legal advice and court approval before applying the funds from the appeal in 1980/81 and accumulated interest, towards any re-development project incorporating the provision of residential accommodation for Graduates.

13. Subject to clarification by the Supreme Court of Victoria of the matters referred to in Note 12, The Graduate Union of the University of Melbourne Inc was not a trustee of any trust as at 31 December 2002.