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RFCS NSW SOUTHERN REGION

ANNUAL REPORT 2020-21



Contents Acknowledgements 4 Chair report

5

Our board

6

Our organisation

7

Executive Officers report

8

Our year in review

10

Our people

12

Our small business program

23

Case Studies

28

Financials 32


Acknowledgements The Rural Financial Counselling Service, NSW – Southern Region recognises the following organisations for their support: For funding The Australian Government and The Department of Agriculture, Water and Environment The NSW Department of Primary Industries and the NSW Rural Assistance Authority For referrals and promotion of RFCS Department of Human Services & Services Australia Department of Community Services Local Land Services (LLS) The Rotary Clubs of Hall and Gerringong Mansfield Drought Support The Country Women’s Association of NSW, Mildura - Millewa Group The Country Women’s Association of NSW, Monaro Group Primary Health Networks Southern Region Business Enterprise Centre Local Governments Rural Women’s Network The Salvation Army Lions Australia


Chairs Report In the last financial year we have:

Secured a new 3 year funding contract for our existing service area from the Federal Government (National Recovery and Resilience Agency)

Secured a contract for an additional service area, being the NSW Central Region service area

Continued providing financial counselling to small businesses in rural and regional NSW under a pilot project from the Federal Government

Welcomed two new members to the board, now totalling 7. A warm welcome to Fiona Jolly and Anita Kemp

Moved from being an incorporated association to a company limited by guarantee

NEW CONTRACT We submitted a response to the government’s call for tender late in 2020 and the result was announced at the end of the third quarter, which left less time than had been planned to reestablish our existing service area and absorb the new service area of the NSW Central Region service. However, our executive team had plans in waiting and were able to push the ‘green button’ on the appropriate plan. To their credit, the transition to the new company has gone with few hiccups, given we have a vastly enlarged service area covering both rural and small business financial counselling. They are to be congratulated. Our service area will now extend from Tibooburra in the north-west of the state to Eden in the southeast, from the border of SA to the coast south of Sydney – in other words 78% of NSW. SMALL BUSINESS FINANCIAL COUNSELLING This pilot project has been of great benefit to many small businesses in rural and regional NSW, as they struggle with the economic downturn brought on by drought, bushfires, floods, and COVID-19. The original concept was to extend the same services we provide to farmers, but to those small businesses in rural and regional towns that are also feeling the pinch, and this has worked very well as evidenced by the REWiRE program results and testimonials we have received from relieved clients. We never fail to remind stakeholders that what constitutes a small business (less than 20 employees) might well be a small business in a metropolitan context, but in rural and regional areas may well be the largest employer in town. The knock-on effect of business failures in these small towns can be large in terms of economy, employment, service availability, confidence, and wellbeing. Our Business Coaches, who live in these communities, help their communities survive and put plans in place to thrive in these challenging times. NEW BOARD MEMBERS We welcome Anita Kemp (Wagga Wagga) and Fiona Jolly (Queanbeyan) to our board. Our board members are chosen to help us maintain a matrix of skills and a geographic representation across our area. Our board members serve for three terms of three years each plus one year, making ten years in all. This refreshes the board and their skills over time, keeping the RFCS ready to meet the challenges of a changing business, social and agricultural landscape. THE NRRA The National Recovery and Resilience Agency under the Hon. Shane Stone has been established to help communities recover from natural disasters such as drought, bushfires, and COVID-19. More importantly perhaps, one of its aims is to help build resilience and preparedness across our rural and regional communities. The 10 Rural Financial Counselling Service regions nationally, will report to the NRRA as the agency delivering RFCS funding from 1 July 2021. ANNUAL REPORT | PAGE 5


Our Board The RFCS NSW Southern Region has transitioned from an incorporated association to a company governed by limited liability. Our board members are chosen to help us maintain a matrix of skills and a geographic representation across our area.

NR

NR

NR

NR

NR

NR

NR

27/11/20

NR

• • • • • • •

• • • • • •

Attended

NR

John MacArthur

• • • • • • •

Eligible

Anita Kemp

Laureta Wallace

• • • •

27/05/21

NR

Brian McCleary

• • • •

16/03/21

Fiona Jolly

Paul Sullivan

• • • • •

12/02/21

• • • • •

David Needham

30/10/20

28/08/20

• • • • •

BOARD

25/09/20

31/07/20

(From left to right - Paul Sullivan, Laureta Wallace, David Needham, Brian McCleary, Fiona Wade and John MacArthur)

8

6

8

8

8

8

8

8

8

7

3

3

3

3


Our Organisation EXECUTIVE OFFICER David Galloway

MANAGEMENT TEAM RFC COORDINATOR David Brown

RFC COORDINATOR Georgie Garland

RFC COORDINATOR Carl Scroope

HR MANAGER Emma Smithson

BUSINESS MANAGER Adrian Le Mottee

MARKETING MANAGER Rebecca Peel

SMALL BUSINESS COORDINATOR Prue Hulm

FINANCIAL COUNSELLORS BURONGA Graeme Witte

DENILIQUIN Tony Flett

GRIFFITH Sarah Diggelmann

ALBURY Graham Christie

YASS Fiona Taylor

HUSKISSON Steve Jarick

COOMA Louise Fletcher

HAY Terry Inglis

HILLSTON Linda McLean

COLEAMBALLY Airlie Hoskins

BEGA Peter Muirhead

YOUNG Elke Cleverdon

TEMORA Kevin McCrum

WAGGA Bill Schulz

CROOKWELL Richard Dowsett

BEGA Kyle Shook

ULLADULLA Joel Fletcher

CROOKWELL Kerry Connor

DENILIQUIN Rowena Jackson

WAGGA Jessica Keemink

SMALL BUSINESS COACHES & ANALYSTS MERIMBULA Simone Eyles

BEGA Rhys Treloar

WAGGA Brad Ristivojevic

WAGGA Renee Goring

TUMUT Lauren Eccleston

CROOKWELL Kelly Churchill

WAGGA Riley Byrnes

LEETON Madison Dux

LEETON Court SayerRoberts

SUPPORT STAFF COOMA Maggie Constance

BURONGA Nick Carroll

COOMA Kiarna Nikora

COOMA Emily Rowson

WAGGA Stephanie Plane

BEGA Janet Menefy

WAGGA Monique Gaskin

ANNUAL REPORT | PAGE 7


Executive Officer Report The 2021 financial year was again a challenging year for the service. Our management team had to balance their focus on the internal requirements and workload needed to submit a tender for the 2024 RFCS Program as well as the external component of providing continued support to clients in need. A year on from the bushfires and drought saw a lot of farmers move through the recovery phase and begin to look at building their preparedness. However, there was also a group of farmers that hadn’t recovered well from the disasters, either mentally or financially. As a result, we saw an increase in complex case numbers from previous years as these people reached breaking point mentally or financiers began to set timeframes for financial improvement.

Key challenges Increase in complex cases A large number of farmers that hadn’t recovered well from the bushfires or drought engaged with the service during the year. The situation these farmers found themselves in was very complex and required significant assistance from our Counsellors. These complex cases are characterised by farmers that are difficult to engage or motivate, relationship breakdowns or financial pressures. We take complex cases seriously in the association and appoint a secondary counsellor to assist the primary counsellor as well as increasing oversight from our Team Leaders.

Staffing As we get closer to the end of a Deed of Grant the uncertainty of ongoing employment causes staff to evaluate their employment. This challenge becomes even greater the closer you get to the end of the grant period without receiving any notice. Unfortunately during this period it is not uncommon to lose staff which creates additional challenges of managing workloads, finding a replacement and re-establishing relationships.


Drivers of demand RIC Loan - end of interest free period

Mouse Plague

The end of the interest free period on RIC loans in The mouse plague has created demand for the service September 2020 saw an incredible spike in demand for as people have either sought assistance in completing the service. Farmers that had been putting off applying the financial analysis on selling grain or hay prior to for RIC loans engaged with the service to seek assistance mouse damage, or have sought assistance accessing government support programs once the mouse damage has been incurred.

Key Performance Indictor

2020 FY

2021 FY

Movement

Web traffic

8,194

11,297

+3,103

1800 phone calls

1,379

1,138

-241

Portal contacts

4,767

5,190

+ 423

Individuals assisted

3,045

2,437

-608

New

266

217

-49

Exited

484

217

-267

growth in land prices, leading to

Active

246

247

+1

improved financial positions for many

Improved business or financial position

156

95

-61

Voluntary sale

9

15

+6

Performance

Key Performance Area

We saw a decrease in demand during

Brand awareness

the 2021 FY compared to the prior year, primarily due to the abnormally high demand experienced in the

Contacts

2020 FY because of the bushfires. In addition, we also saw a significant improvement in seasonal conditions, high commodity prices and consistent

farmers. Key highlights to the right

Clients

Client Outcomes

Emerging key risks

Monitoring delivery

We review the Association’s risk management plan every Board meeting. Throughout the 2021 FY we were monitoring the following key risks:

The Board receives an Operational report every Board meeting that includes reporting against each of the following key result areas:

• Staff wellbeing and competency • COVID-19 and associated risks • Continuity of service / counsellor turnover

• Deed compliance • Operational performance • Risk

Allocating resources to priority areas To ensure resources are appropriately allocated to priority areas, the Board reviews the following at a Local Government Area (LGA) level:

Annually

Quarterly or after a significant change event

Bi-monthly

The Board reviews key industry data for each LGA, including but not limited to: i. ABARES regional reports ii. Total agricultural businesses by turnover by employee number iii. FHA recipients

The Executive Officer presents our staffing structure and LGA data taking into account: i. Land area ii. Number of Ag businesses / FTE iii. NSW DPI Drought rating iv. Government assistance measures

The Board monitors service demand using the following metrics: i. Website visits ii. 1800 phone calls iii. Number of new contacts (Portal) iv. RFC Tasks (Portal) v. Farm Financial Assessments (for FHA) vi. Client flow (New, Active and Exiting clients) vii. Farm Debt Mediations viii. Stock Welfare Panels ANNUAL REPORT | PAGE 9


Our year in review “Without help & support from RFCS more particularly our Counsellor, who my wife calls our saviour, I doubt that I would still be in business today, that is not an exaggeration”. RFCS NSW-SR Client, 2021 Annual Survey

At last, the rains came. And continued to come. With Mother Nature never content to let our farmers experience a ‘normal’ season, 2020-21 again saw the extremities of nature being inflicted upon our rural and regional communities, from ongoing drought to floods, the COVID-19 pandemic to mouse plagues. RFCS NSW-SR continues to provide critical and irreplaceable services to primary producers, experiencing or at risk of experiencing, financial hardship. At the service level in 2020-21 we have worked diligently to ensure we have a consistent and structured process to best support our clients. “Worst recorded rainfall in the history of our operation and the first ever recorded fire to impact our property from 5 generations of records. Followed up by no less then 4 significant flood events. Our Counsellor has been there as an ear and has provided me with the confidence to keep fighting. Believe me there has been numerous times I have wanted to end it all. As a consequence of his unwavering support we are back finally on our feet with a firm plan moving forward”. RFCS NSW-SR Client, 2021 Annual Survey

While 86.9% of NSW remained in drought at 1 July 2020 (NSW Drought Indicator), by February 2021 this number had decreased to just 6% of NSW classified as in continued or strengthening drought conditions (NSW Drought CDI). Record commodity prices and yields saw a welcome return to the black for the profits of many of our farmers after years of ongoing drought and losses. The improved seasonal conditions were reflected in a decrease of 20% in the number of individuals assisted by RFCS NSW-SR in FY 2021. Our RFCs have continued to work closely with drought affected clients, in particular in the south-east and south-west of the State. With some lenders no longer willing or able to extend credit or terms, a number of these clients are now regarded as complex cases with an increase in Farm Debt Mediation cases for our service, as well as an increase in the number of farmers being transferred to asset management. In both these instances our RFCs provide invaluable assistance, first and foremost to the client but also as an independent liaison to the lender involved, often resulting in far improved outcomes for both farmer and lender. “RFCS has benefited us in lots of ways – it’s been fantastic to have someone that has helped us improve our financial literacy and financial management of our business. It’s great to have someone to talk through issues with our business that understands where we are at.” RFCS NSW-SR Client, 2021 Annual Survey

For clients who have experienced a turnaround in seasons and profitability, our RFCs are now assisting them to face their future; whether it be financial self-sufficiency through improved business management practices, succession to the next generation through our extended network of professional support, or dignified industry exit off the back of record land prices. 2021 FY saw a 66% increase in voluntary farms sales on the previous 12 months.


“We have benefited from the RFCS since the Black summer bushfires through a grant and a loan”. RFCS NSW-SR Client, 2021 Annual Survey

With recovery from 19/20 bushfires ongoing, RFCS NSW-SR worked closely with other agencies including the NSW RAA to provide one-on-one assistance to 1087 primary producers across 12 fireaffected local government areas (LGAs). Our recognised expertise in the delivery of assistance saw the service critically involved in the review and refinement of the bushfire recovery program guidelines. This also provided us with the opportunity to internally develop and implement a centralised process for supporting new assistance programs, enabling us to more efficiently and effectively support our clients to access these supports. “Physical and emotional support from somebody who understands the reality of farm life and the challenges associated”. RFCS NSW-SR Client, 2021 Annual Survey

As part of our successful tender for the delivery of the 2024 Rural Financial Counselling Service Program, we have expanded our case management process to encompass a holistic view of each farming business when they reach out for assistance. This is based on our knowledge and understanding that the cause of financial hardship is not always adverse seasonal conditions or lack of income – for example, family breakdown or severe mental distress. Using our extensive network of professional supports, we can refer our clients to the appropriate services for additional support while we work with them to address their financial hardship. “Given more confidence in business, relieved stress levels as I can discuss matters and be referred on where needed. Given direction to business. To be met on farm makes a huge difference and be available on phone. It’s just magic as I have no one else to turn to”. RFCS NSW-SR Client, 2021 Annual Survey

RFCS NSW-SR’s primary goal continues to be to help regional and rural businesses succeed through the provision of unbiased and independent financial counselling. While we support business owners across all facets of their business, our expertise is within financial counselling. We use our specific skills to support our clients in building their financial knowledge and understanding their financial position; all within a a safe and confidential environment. We endeavour to provide the basic financial management tools to ensure our clients are better equipped to handle change and the possible challenges that may arise.

ANNUAL REPORT | PAGE 11


updating %

Our small business program Small businesses in our region entered the financial year with significant uncertainty. Positive news of easing restrictions in NSW was soon tempered by concerns of the impact of the end of JobKeeper, scheduled for late September; and a lockdown in Victoria that extending from 8 July for 111 days. The landscape continued to evolve with a July 2020 announcement of the extension of JobKeeper to March 2021 and the extension of bushfire support programs provided by the Rural Assistance Authority to December 2020. We closed the year with a return to limited support available for small businesses.

Yes 14%

14% 62%

24%

The need for additional rural and regional small business support led to the REWiRE team growing from two to five business coaches in August 2020, following an extension of funding in June 2020 for our program to support businesses impacted by COVID-19 and Bushfires. Our additional team members were hired in the Snowy Valleys and South Coast, regions heavily impacted from the Black Summer Bushfires and the loss of tourism due to COVID-19. The demand for our service was highlighted with an average of 14 new clients per month onboarded during the period or July 2020 to March 2021. In April 2021 the program moved into a wind down phase until the announcement of a six-month extension in the Federal budget on 11 May 2021. During the program period to 30 June 2021 we have assisted 148 small businesses. Within this number, 75 were unique business types with a predominant concentration of businesses within the retail trade (25%) and accommodation and food service (24%) industries. The most common business type were cafes and restaurants, comprising 11% of total clients. 91% of our clients experienced a decrease in customers or sales and 82% of our clients reported being in hardship for longer than 6 months at the time of entering our program. Nearly 75% of clients reported they were not making a profit. The impact of this is significant when considered with the limited practice of our clients of drawing a regular and appropriate wage from their business. We have identified a gap in service delivery experience by our clients when they begin to experience financial hardship: they may be ineligible for other programs, receive less support from their professional advisors due to limited capacity to pay or do not fit within the objectives or service areas of existing government funded services. No 62%

No business plan Yes, but needs updating Yes

We have found that our clients are seeking assistance with a wide range of business issues and have often not received the required support to effectively establish their business, from initial budgets and forecasts, systems, processes and strategy; in addition to developing and reviewing a business plan. 86% of clients did not have a current business plan. This has resulted in many businesses having difficulty with identifying options available to improve or change their position when facing setbacks such as lockdowns or reduced demand. Having a clear understanding of their business model, long term goals, knowing and understanding their financial position as well as the key drivers affecting their cash flow; otherwise forming the basis of our service delivery model to enable informed and proactive decision making.


REWiRE access reasons The impacts of COVID-19 and bushfires were identified as the cause of hardship for 90% of our clients. We have found these economy-wide events have exacerbated underlying weaknesses within many businesses. An advantage of our service delivery model is the application of financial counselling case management methodologies with the experience of our business coaches to provide tailored support for clients to develop and implement their recovery plans. Which of the following best describe your reasons for accessing the help of RFCS? Improve Profitability

Improve business planning skills

Improve financial management skills

Minimise future losses

Better understand financial position

Access assistance

Better prepared for future shocks

Help to pay expenses

Referred

Wanting to retire

0

“I have more freedom, less stress and loads more confidence in my business…” ”My whole journey with the REWiRE Project has been amazing, well above my expectations. Through my business coach Court SayerRoberts, my business, and I have been saved.”

25

50

75

100

We have helped our clients understand their current financial position by completing a financial review of their business which is supported by benchmarking where suitable comparatives are available. This knowledge has empowered many of our clients to make positive changes to their business such as their cost structure, adjusting margins, products, marketing channels, opening hours to staffing and even expansion. Upon entry to the program, clients are requested to identify what activities they believe they could change to improve or recover their businesses financial situation. The most common activities identified as areas where improvement was needed were: promotion and marketing (61%) in addition to managing day-to-day finances and forecasting cash flow (53%). Professional Services Fund A unique feature of the program is the inclusion of a Professional Services Fund for advice, services and activities directly related to business recovery and the longterm viability of the small business. At 30 June 2021 we had utilised $324,067.23 (exclusive of GST) or 98.95% of our funding to support our clients achieve identified objectives. Consistent with the needs identified by our clients noted above, a primary focus was on strategic marketing (56%) to address improvements in sales channels through diversification of the business by moving online or improving engagement through improved capability in utilising social media. A further 32% was utilised for training and specialist financial advice to assist with our core objective of assisting business owners to understand their financial position. The Professional Services Fund was supplemented by a contribution of $80,000 from Snowy Monaro Regional Council obtained through the work of Cooma based RFC, Louise Fletcher. This provides a wider range of support to businesses within the Snowy Monaro Regional Council local government area. Whilst the professional services fund has facilitated the ability for our coaches to collaborate with other professionals, we have also received significant appreciation for our ability to guide our clients through the challenging economic environment. ANNUAL REPORT | PAGE 13


Our people

EXECUTIVE OFFICER

BUSINESS MANAGER

David Galloway Location: Wagga

Adrian Le Mottee Location: Cooma

MARKETING & COMMUNICATIONS MANAGER Rebecca Peel Location: Wagga

David grew up in Wagga Wagga in regional New South Wales and is passionate about regional Australia and regional business. As a Chartered Accountant, he spent his early working period in Melbourne working with business owners on taxation and business services, succession planning and retirement planning providing advice and guidance. More recently, he has been in Executive Management roles within the Human Services industry, supporting regional and rural Australia. Currently he is the Executive Officer of the Rural Financial Counselling Service NSW, Southern Region overseeing a team of 38 staff. This includes rolling out a new Small Business Pilot Program (REWiRE), which taps into his interest in helping business owners be successful.

Adrian has been with RFCS for over 5 years, however he boasts 50+ years working and living in rural Australian communities - yep, he’s an old bloke! His impressive experience includes 10 years as administrator of Australia’s highest township (Cabramurra), 27 years with QLD electricity industry, including 15 years as Commercial Systems Controller at QLD’s largest power station complex and 10 years as leader of the emergency response team. He has 18 years voluntary service with QLD Ambulance and 12 years on State Ambulance Advisory Council (incl 2 terms as Chairman). Adrian also ran his own business (High Country Rescue and First Aid) for several years, providing industrial emergency services to power stations, mines, chemical plants etc.

Rebecca has been with RFCS for 2.5 years and continues her mission to reach as many producers who need a hand as she can, whilst presenting a professional and consistent message that speaks to our communities. Rebecca comes from Cootamundra in Southern NSW, from a farming background, and has also worked in the agriculture industry as a young adult. She has a BA in Graphic Design from Charles Sturt University and Certificate in Brand Management from Melbourne University. She is currently undertaking her Graduate Certificate in Marketing. Rebecca has over 12 years experience in marketing and design and brings her commitment to rural Australia and it’s landholders into her work.


COUNSELLOR COORDINATOR

COUNSELLOR COORDINATOR

COUNSELLOR COORDINATOR

David Brown Location: Wagga

Georgie Garland Location: Wagga

Carl Scroope Location: Wagga

David Brown joined Rural Financial Counselling Service NSW, Southern Region in July 2019. David is a Counsellor Coordinator, overseeing the operational activities of the western region between Narrandera and Wentworth. David has worked on-farm and as a farm business consultant. David has experience with planning farm production systems and planning and implementing farm economic strategies.

Georgie is passionate about the important role our rural and regional communities play from both an economic and social perspective, and believes the support provided through RFCS, NSW-SR to our farm businesses is integral to the ability of these communities to survive, recover and prosper into the future. Having relocated with her family to Wagga Wagga from Broome, WA in 2019, Georgie is excited to be working with RFCS, NSW-SR in her role as Counsellor Coordinator. Georgie has worked across a range of agribusinesses including ag industry lobby association, time as a Rural Financial Counsellor, agribusiness banking, small business owner, running her family farm and contracting business and even a stint fronting a ‘paddock to plate’ butchers shop!

Carl after a 30+ year career in agribusiness banking joined RFCS NSW-SR and worked for the service as a Rural Financial Counsellor for a period of eight years before leaving to pursue other interests for 5 years. Carl has utilised his vast experience to do locum work for RFCS NSW-SR from 2018 until the 2019 Bushfires, when he commenced with RFCS full-time as a Counsellor Coordinator working with our eastern region RFCs. Carl grew up on the far North coast of NSW on a dairy farm that later became a sugar and beef cattle enterprise. He completed his school education in Canberra, then worked extensively in rural NSW as a branch and risk manager for CBA. Outside of work Carl is a keen golfer and likes to spoil his new grandaughter. ANNUAL REPORT | PAGE 15


In Wentworth, Balranald, Carrathool & Hay shires

RURAL FINANCIAL COUNSELLOR

RURAL FINANCIAL COUNSELLOR

RURAL FINANCIAL COUNSELLOR

Graeme Witte Location: Buronga

Terry Inglis Location: Hay

Linda McLean Location: Hillston

Born and raised in the Sunraysia area, Graeme comes from a background in banking spanning the last thirty years. Originally raised on a dried fruit and citrus farm in the district, Graeme has worked predominately in the Ag sector of banking during his career. Having spent many years working with farmers during good times and drought, it was an easy choice to move from banking to Rural Financial Counselling in April 2018. Graeme’s strong background in banking and finance means that he can assist you in looking at the numbers behind your business and help guide you through the often complicated assistance applications.

Terry grew up in rural South Australia in a productive mixed farming area south of Adelaide. Two primary schools, one high school and three universities later, Terry completed several Vocational Education qualifications and a professional course in Mediation and Conciliation. Terry has worked in senior roles at a state and Federal level in farming organisations. Since moving to the Riverina Terry has lived in and near Coleambally and worked in a senior managerial role at Coleambally Irrigation CoOperative Limited and then as a Mobile Business Advisor in the western Riverina covering the City of Griffith and, the Shires of Hay, Leeton, Narrandera, Carrathool, and Murrumbidgee Council areas.

Linda lives on a sheep grazing property near Hillston. She has qualifications in business and accounting, has attained her Diploma of Community Services (Financial Counselling) and has completed a Statement of Attainment under the Financial Counselling Association NSW. Linda brings a wealth of knowledge and experience to the role of Rural Financial Counsellor. She has also worked for a large mixed agriculture firm and as part of a farming family, and has the knowledge and insight to help local farmers. Linda covers the areas of Hillston, Lake Cargelligo, Ivanhoe and surrounding districts and welcomes you to visit her office or arrange an appointment to meet with you on farm.


In Edward River, & Murray River

RURAL FINANCIAL COUNSELLOR

RURAL FINANCIAL COUNSELLOR

Tony Flett Location: Deniliquin

Rowena Jackson Location: Deniliquin

Tony comes from a dairy background where he and his family milked up to 500 cows across a number of properties around Cobram and Strathmerton. Having 5 children whilst being on the farm allowed Tony and his family to have plenty of quality time together, but after 23 years it was time to try something new. After looking for where life might take him that was different to what he had been doing, but still firmly rooted in agriculture, an opportunity came up to work with RFCS NSW-SR. Tony’s strong ag and business background and having an Advanced Diploma in Agriculture and a Bachelor of Business made the move to RFCS a logical transition.

Rowena and her partner run a mixed farming business west of Deniliquin. The operation includes both broadacre and irrigated cereal cropping, as well as sheep and cattle production. Rowena holds a Bachelor of Business and a Masters of Business Administration (MBA). She has a strong background in business and finance having run her own printing and publishing company for 10 years. More recently she was a Business Advisor for BEC Business Advice (Deniliquin) for 3 years, before joining the RFCS NSW Southern Region. She has a strong sense of community having been on many boards and committees around Victoria and NSW, currently holding the position of Chair of South West Arts.

ANNUAL REPORT | PAGE 17


In Griffith, Leeton, Carrathool & Murrumbidegee Shires

RURAL FINANCIAL COUNSELLOR

RURAL FINANCIAL COUNSELLOR

Sarah Diggelmann Location: Griffith

Airlie Hoskins Location: Coleambally

Sarah has grown up on a mixed dryland farming operation at Lake Cargelligo NSW. Sarah has come from a strong finance background with her last 15 years working her way up through the ranks of the some of the major banks in the Riverina. Sarah has a thorough understanding of credit analysis, preparation of loan submissions and strong relationship management skills. Sarah is covering the Griffith and Leeton areas. She has a strong passion for agriculture and places farmers front of mind to ensure they are receiving the best outcome.

Airlie has grown up on a sheep and cattle property at Goulburn, NSW, and currently lives on an irrigated cropping farm at Carrathool. She has qualifications in Economics and Accounting, and prior work experience in Agri-banking and farm business analysis. Airlie is covering the Coleambally area, which extends out to Carrathool, Jerilderie and Morundah. She has a passion for agriculture and helping people on the land, and can assist you with farm budgeting, business planning and understanding agri – finance.


ANNUAL REPORT | PAGE 19


In Lockhart, Greater Hume, Wagga & Albury shires

RURAL FINANCIAL COUNSELLOR

RURAL FINANCIAL COUNSELLOR

BUSINESS ANALYST

Graham Christie Location: Albury

Bill Schulz Location: Wagga

Riley Byrnes Location: Wagga

Graham has a balanced understanding of agriculture at all levels – as a former lecturer on farm management at the University of Melbourne and with hands on experience running mixed, irrigation and livestock farms in western Victoria and the Riverina. He relates well to farmers as he knows what it is like dealing with the day-to-day issues. Graham knows the importance of financial analysis, budgeting and planning, and he delivers these services to farming families to help them identify the best path for their future. He has worked with the Service since October 2007 and holds a Diploma of Agricultural Science, a Graduate Diploma in Agribusiness and has also attained the Diploma of Community Service (Financial Counselling).

Bill has been heavily involved in agri-business management in Southern NSW since moving from a family farm and the South Australia ag industry in 1994. Bill studied Agriculture at Urrbrae Agricultural High School and then completed a Graduate Diploma in Agribusiness through Monash University. Bill is well versed in agricultural systems & financial disciplines which gives him good working knowledge as a Rural Financial Counsellor. A real passion of Bill’s is assisting with demystifying the process of selling a farm and that it can be a positive step. Bill enjoys assisting within the community, running his farm & spending time with his family.

Riley grew up on a mixed farm at Hay in the Riverina, consisting of sheep, cattle and irrigation on the lower Murumbidgee River. This is where Riley’s passion for agriculture developed, which led him to attend CSU Wagga where he furthered his business and agricultural skills to assist farmers. Riley is active in the community being a member of his local Rural Fire Brigade and volunteering out of his region when needed. Riley loves playing footy on weekends for his beloved Wagga Ag Club and you’ll find him on the barbeque after the game. Riley is a Business Analyst in the Snowy Valley’s region and hopes to bring his fresh perspective and insight into the region to assist producers understand their financial position and develop skills on the way.


In Coolamom, Young, Junee & Cootamundra/Gundagai shires

RURAL FINANCIAL COUNSELLOR

RURAL FINANCIAL COUNSELLOR

RURAL FINANCIAL COUNSELLOR

Kevin McCrum Location: Ganmain & Wagga

Jessica Keemink Location: Wagga

Elke Cleverdon Location: Young

Kevin has strong links to the rural sector. He was born and raised on a farm at Weethalle, then attended Yanco Agricultural High School before going on to study veterinary science at university. After working as a vet for three years both here and overseas, he returned to the family farm – a dry area, mixed cereals / grazing property at Weethalle where he worked and raised his family for 23 years. Kevin has a Diploma of Community Services Financial Counselling Having experienced the challenges of drought, fluctuating commodity prices and natural disasters and lived in a farming community, he is ready to assist the farmers of the South-East Riverina with their financial counselling needs and to plan for a bright future.

Jess has been with RFCS NSWSR since February 2020 and hit the ground running as the first point of contact after the 2019/20 bushfires. Jess has 10 years experience within the Financial Planning sector and holds a Bachelor of Commerce and a Diploma of Financial Counselling. She has held roles as a Paraplanner, Insurance Specialist and as an Associate Advisor. In her spare time, she plays netball and is a keen umpire, all while running after a gorgeous two year old. Jessica grew up on a mixed farming enterprise near Uranquinty. She is a horse lover, competing in a variety of competitions. Jessica understands the devastation drought can have on family finances and wellbeing. Her past experiences give her a the determination to help farming families in need.

Elke Cleverdon is an experienced RFC servicing primarily the Hilltops Council area. Elke and her husband own and operate a broadacre grain & beef farming enterprise in Harden, NSW. She has an understanding of the challenges faced by rural communities, farmers and their families. Elke knows very well that weather extremes and volatile markets affect us all. After 25 years working in accounting, finance and 16 years of which was in banking, Elke understands the position of a business from a financial and banking perspective. Her experience as a Fellow CPA and finance executive was gained working with small and medium enterprises. Elke also has a Masters in Business Administration (MBA) and sits on a number of local and regional boards. ANNUAL REPORT | PAGE 21


In Upper Lachlan, Yass Valley shires

RURAL FINANCIAL COUNSELLOR

RURAL FINANCIAL COUNSELLOR

BUSINESS ANALYST

Fiona Taylor Location: Crookwell and Yass

Kerry Connor Location: Crookwell

Kelly Churchill Location: Crookwell

Fiona is an experienced Rural Financial Counsellor, working in the RFCS Northern region, Central Region and also Southern Queensland. She also has experience with various agricultural based companies. Fiona’s qualifications include a Business Degree (USQ), Diploma in Community Services (Financial Counselling) and Certificate IV in Training and Assessment. In 2016 she was a finalist in NSW-ACT AgriFutures Rural Women’s Award for her project ‘Next Rural Generation’. Prior to 2000 her family were farming their property in Zimbabwe. Fiona has previously owned a small property near Narrabri where she ran in partnership a Stud Dorper sheep flock and cropping. She has moved to Yass so she can be near her family and looks forward to helping farming families.

Kerry Connor grew up on a merino sheep stud and cattle property near Bathurst NSW. With her husband, they run a sheep and beef property at Taralga NSW and Kerry’s husband also has a shearing contract business with her father in-law. Kerry has a Bachelor of Agriculture (Business Management) from Charles Sturt University and has worked previously in Agribusiness Banking and Livestock Animal Health. She brings a wealth of experience and diversity with her to RFCS NSW-SR and has first-hand experience with the unique challenges that present themselves to rural and regional producers. Kerry’s region covers Upper Lachlan Shire.

Kelly has been with RFCS NSW-SR for a total of eight years- 7.5 in a support role and now has moved into a Business Analyst role in Crookwell over the last 18 months. Kelly has assisted many Counsellors with transactional work and helped in the preparation of cashflows and other client work. Kelly is adept at liasing with other organisations and professional services to assist clients. Kelly comes from a banking background with 12 years of experience with a major bank. She worked there in a client facing role in several Rural Branches. Outside of work, Kelly is a Mum of two Kids who are 13 & 10 and is kept busy running around activities, volunteering and running the school uniform shop.


In Wingecarribee, Goulburn Mulwaree, Shoalhaven, Queanbeyan Palerang & Kiama shires

RURAL FINANCIAL COUNSELLOR

RURAL FINANCIAL COUNSELLOR

RURAL FINANCIAL COUNSELLOR

Richard Dowsett Location: Goulburn

Steve Jarick Location: Huskisson

Joel Fletcher Location: Ulladulla

Richard joined the RFCS after completing his degree in Agricultural Economics (USYD). Richard has worked in the USA & UK developing skills in dairying, confinement feeding, cropping and fodder harvesting. In Australia, Richard has worked managing corporate & large broadacre farming enterprises in NSW & QLD where the use of financial analysis, cash flow budgeting & capital gain initiatives have played an important part of the day to day activities of modern farming. For a number of years, Richard also worked in agribusiness for a major bank. Combining his knowledge of working on-farm with his background in agribusiness, Richard utilises these skills to help RFCS clients move forward and create sustainable enterprises.

Steve was born in Wagga and grew up on a farm at Mangoplah and in Victoria. Due to difficult seasons and significant fluctuations in commodity prices, Steve decided it was time to look at alternative occupations. He chose accounting, and after completing a Degree in Commerce he became a CPA. With farming in his blood, Steve specialised in the business analysis of individual clients during his time working, over many years, for a Rural Bank in Tasmania. Clients were spread across the dairy, grazing, vegetable growing, aquaculture, fishing and forestry industries. A RFCS position was an ideal match for Steve’s personal objective of assisting rural business people make the most of their circumstances, as are his qualifications and experience.

Joel has a strong background in financial advice, with 15 years providing advice in the public and private sector as both a Director and as an employee. This experience has enabled Joel to develop the skills to provide sound financial counsel, along with the ability to effectively liaise and advocate for his clients with banks, accountants and government departments. As a local, Joel understands the needs of the area and has witnessed the strains events such as drought, bushfire and flood can have on primary producers. Joel has degree qualifications in both Financial Advice and Psychology. Born and Raised in Kangaroo Valley, Joel has settled in Croobyar on the South Coast with his wife and two daughters.

ANNUAL REPORT | PAGE 23


In Snowy Monaro, Eurobodalla & Bega Valley shires

RURAL FINANCIAL COUNSELLOR

RURAL FINANCIAL COUNSELLOR

RURAL FINANCIAL COUNSELLOR

Pete Muirhead Location: Bega

Louise Fletcher Location: Cooma

Kyle Shook Location: Bega

Peter initially joined the service in September 2007. He brought with him significant knowledge of various agricultural industries through over 25 years experience in the finance industry as a Risk Executive and also managing his own farming operation for over 20 years. Peter has a strong financial background with a Master’s Degree in Accounting and Finance (UTS Sydney) and recently commenced a Diploma in Agriculture. He has also attained a Diploma in Community Services. Peter left the service in 2010 but returned in 2013 stating that he missed assisting people within the agriculture industry and providing the best options for their future.

Louise grew up on her family’s sheep and cattle property on the Monaro and has recently returned to the region as a Business Analyst after completing a Bachelor of Agricultural Science degree in Wagga. Louise has a strong passion and background for agriculture and helping rural communities. She is a registered wool classer and has worked on farms and in shearing sheds all over Australia and even spent five months working in the Falkland Islands.

Kyle grew up in rural Virginia in the United States before moving to Australia in 2008. He joins RFCS with considerable experience in the Financial Services sector and more recently, as a Management Accountant in the Bega Valley. Kyle holds a Degree in Finance and has attained the Certified Practising Accountant (CPA) Designation. Kyle understands the importance of agriculture in our society and is eager to apply his financial management expertise to the industry. He has a strong interest in local food supply and volunteers with local community organisations. He is currently developing a small property for food production while balancing his family life with two young children.


REWiRE For small businesses

PROGRAM COORDINATOR

Prue Hulm Location: Wagga Prue has over 10 years experience in the Financial Services Sector having worked for the Commonwealth Bank in both the Retail Banking Services and Regional & Agribusiness Banking divisions. Prue has extensive knowledge and experience working with SME’s and regional businesses conducting financial analytics, risk modelling & forecasting, deal structuring, family succession and impaired asset portfolio management. Prior to her current role with Rural Financial Counselling Service as a Program Coordinator, she worked as a Rural Financial Counsellor servicing clients across the Riverina that were experiencing financial hardship.

The REWiRE project is a Federally funded program, to provide FREE one-on-one coaching to support small business owners that need a helping hand. We have a diverse range of business coaches from various industries with specialised skill sets such as chartered accountancy, strategic marketing, communications and business operations to support our clients with the various challenges they may be facing as a result of drought, bushfires and now COVID-19. Our clients also have access to $5000.00 per business to get third party advice and or training.* *Subject to guidelines, fund availability and approval

ANNUAL REPORT | PAGE 25


REWiRE

BUSINESS COACH

BUSINESS COACH

BUSINESS ANALYST

Simone Eyles Location: Bega/Merimbula

Rhys Treloar Location: Bega/Snowy Monaro

Renee Goring Location: Wagga Wagga

A creative entrepreneur, Simone is the co-founder of 365cupsan order ahead App with clients all across Australia and New Zealand. Simone has a degree in Graphic Design and before small business, spent 10 years working in advertising and PR with boutique agencies and state and federal government, from Wagga Wagga to Perth and even a stint in Alice Springs. Simone is excited to share her expertise and business acumen. With a passion for business and technology as well as the region, it seemed an organic step to move into the role of Business Coaching where Simone can support local business during these challenging times. Simone has a gift of showing people how to make technology work for them, demystifying jargon and taking challenges and turning them into practical steps to work through.

Rhys has spent the last 8 years working in the Tourism Industry predominately for Flight Centre Travel Group, Travelbound and more recently as the Regional Manager for World Challenge Expeditions/Travelbound. Rhys has been fortunate that his various roles have allowed him to travel around the world of and he actually lived in Dubai for 4 years. Rhys’s key strengths are strategic planning, business development, product development, managing financial performance, sales and marketing. Rhys has completed a Bachelor of Communications (Public Relations) through the University of Canberra, Cert IV in Tourism and also has a Diploma in Management.

Renee joins us in Wagga Wagga as a Business Analyst. Renee has worked extensively in the finance/banking industry for the past 10 years, specialising in customer service and HR while coaching and leading a team of 10 staff. Renee spends her time outside of work raising a busy young family of two boys and a baby girl with her husband Garret. Renee is looking forward to assisting our small business customers in rebuilding after a year of drought, fire and COVID and helping them set and achieve their goals.


BUSINESS ANALYST

BUSINESS COACH

BUSINESS COACH

Madison Dux Location: Leeton

Court Sayer-Roberts Location: Leeton

Brad Ristivojevic Location: Wagga Wagga

Madison is based in our Leeton office after moving from the Gold Coast, where she had worked at an Insurance Underwriter. Along with her 10 years of experience working as a data processor, she is also a successful harness racing trainer and driver in her spare time. Madison has extensive experience in data processing, office administration, customer service and front of house management. Madison has a Bachelor of Commerce majoring in Accounting and has also completed the Tier 2 in General Insurance accreditation. Combining Madison’s education and skills she has the experience and a can-do attitude to help assist with the success of the REWiRE Project. Madison is excited to give back to her community.

Court has over 17 years experience in operations management in the food manufacturing industry within New Zealand and Australia. He began his career in hospitality as a Chef, and with further study in Hospitality Management, moved into FMCG operations, overseeing the production and launch of major food brands and products. In 2004, Court relocated to Leeton in the NSW Riverina, bringing his operations management expertise to SunRice for many years. Court has experienced firsthand the challenges that rural businesses face, having been through drought periods himself with both SunRice and his own businesses in Leeton, which includes small business consulting, and owner/operator of a café and catering business.

Brad started in small business as a teenager in his parent’s newsagency which operated in Wagga for over 25 years. He went on to study Economics and Commerce at ANU in Canberra and has been a Chartered Accountant for over 12 years with a mid-tier and big 4 accounting firm. Brad’s experience includes working with businesses in financial hardship in restructuring, recovery and advisory engagements including business health checks and reviews for business owners, government departments and banks in a wide variety of industries. After noticing a lack of assistance available for small businesses in financial hardship while working as an accountant in the insolvency industry, the opportunity to help these small businesses was a strong motivator for Brad to join RFCS. ANNUAL REPORT | PAGE 27


Case Study- Rural Financial Counselling Clients D & E own and operate a mixed farming enterprise and a rural fencing business in the Riverina region. With both businesses being run as separate entities, clients have struggled with the financial management of two businesses. Drought and a high level of borrowings with second-tier lenders at high interest rates has led to the client suffering severe mental distress and resulted in an inability to make decisions. Clients have historically struggled to stay on top of the financial management of their businesses and very much operated in a day-to-day way, often ignoring bills they were unable to pay or avoiding completing financial reporting obligations due to unpaid invoices.

Clients initially contact RFCS NSW to enquire about Farm Household Allowance during the drought. At the time of contact several facilities were outside of their terms with little to no income coming in. The RFC assisted the clients to apply for hardship terms for several of their facilities as well as accessing FHA to provide some financial support. As part of their activity supplement, clients engaged a farm consultant to assist them to develop of a farm plan; although the clients were enthusiastic about this, they found the resulting plan too complex and overwhelming to implement. In 2020 a new RFC contacted the clients as part of their introductory process. Clients were keen to engage with the service and explained they still had significant high-interest rate borrowings, had changed financial management software but were unsure how to use it, had changed accountant but were behind in their reporting; furthermore that they were generally struggling with their financial situation, resulting in a recurrence of serious mental distress. The RFC initially (with the client’s consent) arranged for a farm gate counsellor to make contact and provide support, beginning the process of reviewing the two clients’ financial situations. Working at the pace determined by the clients’ needs and abilities, the RFC provided support and guidance to allow an outstanding level of financial reporting to be attended to as an immediate need. Since this was achieved, the RFC has been able to work closely with the clients to identify other causes of financial stress in the business and begin to develop goals and strategies to address these. This has involved extensively analysing options avaialble to the clients, to ensure their financial understanding and knowledge is allowing them to make the best decisions for their businesses. The clients are continuing to work with the RFC and were delighted to discover recently that they no longer require Farm Household Allowance and have put in place plans to transition out of this support. Some other achievements the clients have made during their time working with RFCS NSW include: • financial reporting obligations up to date • a structured plan in place for ongoing reporting completion • recognition by clients of the impact their mental distress has on the financial management abilities • successfully switching financial management software, including utilising activity supplement to undertake comprehensive support training • restructured business entities into one partnership • successful refinance application to a Tier-1 lender with reduced interest rates and an increased working capital facility to reduce requirement to use personal credit card for business expenses • rolled existing credit card balance to new bank on 0% balance transfer • completed payments for a tractor loan at high rates and putting the available funds towards paying off the credit card debt • clients will be transitioning off FHA in August 2021 due to the turnaround in their financial situation!


"A fantastic sounding board and an absolute wealth of knowledge" RFCS NSW-SR Client, 2021 Annual Survey ANNUAL REPORT | PAGE 29


Case Study- Small Business Our client is a highly experienced and qualified chef who operated a successful café and catering business on the south coast on NSW. They commenced trading in 2018 and were employing 5 staff when the business was severely impacted by the Black Summer bushfires, causing a significant loss of income during the critical summer trading period.

The business reopened in early 2020 but was soon impacted by the COVID-19 restrictions introduced in March 2020. These external events severely impacted the financial position of the business, the wellbeing of the owner and the relationships with their support network, making recovery from these events very difficult. The events experienced by the business owner led to severe financial hardship and created the following challenges: • Break-down in the relationship with their accountant • the business owner was unable to pay outstanding invoices • the accountant used a different accounting system than the business owner, resulting in incomplete accounting records and high data transfer costs • Low levels of financial capability • the business owner was unable to understand the finance contracts entered into when establishing the business, including terms and conditions, payment obligation and appropriate contact points • as a result, severalof the finance contracts that were in default had been referred to recovery agents • Severe cash flow issues • due to the disruptions in trade, the business income had reduced significantly whilst the fixed costs remained • the creditors for the business included: family; Australian Taxation Office; employees; essential suppliers; and financiers.


Our initial priority was to develop a clear picture of the business’s financial position. This involved contacting their finance providers to obtain their contracts, payout figures, and bank records as well as gathering all other creditor information possible to provide insight into their reoccuring costs. We utilised this information to help our client understand their cost structure and develop a plan to prioritise their creditor payments. Before we could talk to the client about developing a business plan, we needed to resolve their financial situation. To do this our Financial Counsellor: • advocated and negotiated for our client with their insurer and finance companies to: • waiver the balance of a personal credit card used for business • have interest paused on two other credit cards • defer 6 months repayments on an equipment finance • waiver a portion of arrears and an interest reduction with a debt collection firm • waiver of arrears, return of rental equipment not required and, renegotiated payment terms on remaining equipment • a deed of settlement with a reduction in the balance owing on financed equipment. • increase in a business interruption insurance claim following our review of the assessor’s calculation. • referred the client to key specialists, including: • insolvency practitioner • mental health practitioner • new accountant • assisted in bringing statutory obligations up to date, including: • reconciliation of outstanding superannuation • business activity statement lodgements To improve our client’s understanding of the business’s financial performance, we prepared an analysis of its historical performance; including a break-even analysis, identified cost savings, utilised a cash flow forecast to budget creditor repayments and discussed key ratios required to be met for the business to be profitable. We also arranged for the client to complete training in cloud accounting systems, enabling them to complete their own bookwork and glean a more accurate picture of their business. Through regular meetings and coaching, we have assisted the business owner to embed changes in operational practices into the business and to prioritise book work and administrative tasks. Now that the client is in a stable position both financially and mentally, we are working together to identify long-term business goals and develop a business plan. We also aim to continue working with the client to improve their knowledge of the fundamental components of their business including key ratios, weekly obligations, and sales targets.

After working with the client, we have helped them achieve the following outcomes: • resolved immediate financial

issues

• increased the businesses

support network by linking them with a new accountant • improved the monthly revenue from $30,000 per month, pre bushfires to $55,060 in January 2021 • improved the business owner’s mental health and resilience, which is critical given the business is again facing pressure from COVID lockdowns • improved the business owner’s financial capability • improved the business owner’s wellbeing, putting them in a position to now consider the long-term future of the business and draft a business plan.

“Rhys! ... First of all thanks once again for the meeting last week. It was quite confronting, but really good to finally get my head around where I’m at. I feel confident that I can meet the targets... what you are doing, really is life changing for me.” ANNUAL REPORT | PAGE 31


Rural Financial Counselling Service, NSW Southern Region Inc. ABN: 24 641 712 065

Financial Statements For the Year Ended 30 June 2021


Rural Financial Counselling Service, NSW Southern Region Inc. ABN: 24 641 712 065

Contents

For the Year Ended 30 June 2021 Page Financial Statements

Statement of Profit or Loss and Other Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Notes to the Financial Statements Statement by Members of the Board Auditor's Independence Declaration Independent Audit Report Supplementary Information

2 3 4 5 6 15 16 17 19


Rural Financial Counselling Service, NSW Southern Region Inc. ABN: 24 641 712 065

Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 30 June 2021

2021 Revenue Finance income - interest on cash at bank Other income - gain on disposal of fixed assets Employee benefits expense Depreciation and amortisation expense Accommodation costs Governance expenses Marketing and promotion expenses Motor vehicle expenses Operations expenses Professional Services Fund expenditure Reporting expenses Travel expenses (Deficit) / Surplus before income tax Income tax expense

Note 4

2(a)

(Deficit) / Surplus from continuing operations Other comprehensive income for the year, net of tax Total comprehensive income for the year

The accompanying notes form part of these financial statements.

2020

$ 4,438,117 1,391 10,456 (3,324,059) (280,218) (340,129) (41,333) (177,137) (149,831) (196,054) (324,067) (269,463) (105,093)

$ 3,716,440 2,312 2,225 (1,948,656) (168,570) (216,608) (38,084) (96,167) (127,649) (163,515) (44,408) (61,346)

(757,420) -

855,974 -

(757,420)

855,974

(757,420)

855,974

2


Rural Financial Counselling Service, NSW Southern Region Inc. ABN: 24 641 712 065

Statement of Financial Position As At 30 June 2021

Note ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Other assets - prepayments

2021

2020

$

$

1,573,505 92,402 49,716

2,095,301 21,245 -

1,715,623

2,116,546

644,512

923,142

644,512

923,142

2,360,135

3,039,688

180,908 188,909 72,527

190,198 174,279 -

TOTAL CURRENT LIABILITIES

442,344

364,477

TOTAL LIABILITIES

442,344

364,477

1,917,791

2,675,211

503,307 1,414,484

596,591 2,078,620

1,917,791

2,675,211

5 6

TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment

7

TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and other payables Employee benefits Funding in advance

8 9

NET ASSETS

EQUITY Reserves Retained earnings TOTAL EQUITY

The accompanying notes form part of these financial statements.

3


Rural Financial Counselling Service, NSW Southern Region Inc. ABN: 24 641 712 065

Statement of Changes in Equity For the Year Ended 30 June 2021 2021

Balance at 1 July 2020

Retained Earnings

Reserve for Winding-Up

Total

$

$

$

Result for the year Transfers from retained earnings to reserve

2,078,620 (757,420) 93,284

596,591 (93,284)

2,675,211 (757,420) -

Balance at 30 June 2021

1,414,484

503,307

1,917,791

2020

Balance at 1 July 2019

Retained Earnings

Reserve for Winding-Up

Total

$

$

$

Result for the year Transfers from retained earnings to reserve

1,536,056 855,974 (313,410)

283,181 313,410

1,819,237 855,974 -

Balance at 30 June 2020

2,078,620

596,591

2,675,211

Reserve for Winding-Up The reserve is based upon estimated costs not included in liabilities in the financial statements if the Entity has to wind up if government funding were to cease after the current funding period ending 30 June 2021.

The accompanying notes form part of these financial statements.

4


Rural Financial Counselling Service, NSW Southern Region Inc. ABN: 24 641 712 065

Statement of Cash Flows

For the Year Ended 30 June 2021

Note CASH FLOWS FROM OPERATING ACTIVITIES: Grants and other receipts Payments to suppliers and employees Interest received Net cash provided by/(used in) operating activities

CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of plant and equipment Purchase of plant and equipment Net cash provided by/(used in) investing activities Net increase/(decrease) in cash and cash equivalents held Cash and cash equivalents at beginning of year Cash and cash equivalents at end of financial year

5

The accompanying notes form part of these financial statements.

2021

2020

$

$

4,721,433 (5,261,329) 1,391

4,065,867 (3,097,082) 2,312

(538,505)

971,097

99,794 (83,085)

29,466 (619,750)

16,709

(590,284)

(521,796) 2,095,301

380,813 1,714,488

1,573,505

2,095,301

5


Rural Financial Counselling Service, NSW Southern Region Inc. ABN: 24 641 712 065

Notes to the Financial Statements For the Year Ended 30 June 2021

The financial report covers Rural Financial Counselling Service, NSW Southern Region Inc. as an individual entity. Rural Financial Counselling Service, NSW Southern Region Inc. is a not-for-profit Association, registered and domiciled in Australia. The principal activities of the Association for the year ended 30 June 2021 were to provide rural financial counselling services. The functional and presentation currency of Rural Financial Counselling Service, NSW Southern Region Inc. is Australian dollars. The financial report was authorised for issue by the Directors on 24 September 2021. Comparatives are consistent with prior years, unless otherwise stated. 1

Basis of Preparation The financial statements are general purpose financial statements that have been prepared in accordance with the Australian Accounting Standards - Reduced Disclosure Requirements and the Australian Charities and Not-for-profits Commission Act 2012.

2

Summary of Significant Accounting Policies (a)

Income Tax The Association is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

(b)

Revenue and other income Revenue from contracts with customers The core principle of AASB 15 is that revenue is recognised on a basis that reflects the transfer of promised goods or services to customers at an amount that reflects the consideration the Association expects to receive in exchange for those goods or services. Revenue is recognised by applying a five-step model as follows: 1. Identify the contract with the customer 2. Identify the performance obligations 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations 5. Recognise revenue as and when control of the performance obligations is transferred Generally the timing of the payment for sale of goods and rendering of services corresponds closely to the timing of satisfaction of the performance obligations, however where there is a difference, it will result in the recognition of a receivable, contract asset or contract liability. None of the revenue streams of the Association have any significant financing terms as there is less than 12 months between receipt of funds and satisfaction of performance obligations.

6


Rural Financial Counselling Service, NSW Southern Region Inc. ABN: 24 641 712 065

Notes to the Financial Statements For the Year Ended 30 June 2021

2

Summary of Significant Accounting Policies (b)

Revenue and other income Grant revenue Government grants are recognised at fair value where there is reasonable assurance that the grant will be received and all grant conditions will be met. Grants relating to expense items are recognised as income over the periods necessary to match the grant to the costs they are compensating. Amounts arising from grants in the scope of AASB 1058 are recognised at the assets fair value when the asset is received. The company considers whether there are any related liability or equity items associated with the asset which are recognised in accordance with the relevant accounting standard. Once the assets and liabilities have been recognised then income is recognised for any remaining asset value at the time that the asset is received. Other income Other income is recognised on an accruals basis when the Association is entitled to it.

(c)

Goods and services tax (GST) Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of GST. Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

(d)

Property, plant and equipment Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment. Items of property, plant and equipment acquired for significantly less than fair value have been recorded at the acquisition date fair value. Where the cost model is used, the asset is carried at its cost less any accumulated depreciation and any impairment losses. Costs include purchase price, other directly attributable costs and the initial estimate of the costs of dismantling and restoring the asset, where applicable. Plant and equipment Plant and equipment are measured using the cost model. Depreciation Property, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the assets useful life to the Association, commencing when the asset is ready for use. The depreciation rates used for each class of depreciable asset are shown below: Fixed asset class Plant and Equipment Motor Vehicles

Depreciation rate 10% to 33% 20%

At the end of each annual reporting period, the depreciation method, useful life and residual value of each asset is reviewed. Any revisions are accounted for prospectively as a change in estimate. 7


Rural Financial Counselling Service, NSW Southern Region Inc. ABN: 24 641 712 065

Notes to the Financial Statements For the Year Ended 30 June 2021

2

Summary of Significant Accounting Policies (e)

Financial instruments Financial instruments are recognised initially on the date that the Association 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 The Association only holds financial assets categorised as at 'amortised cost'. Financial assets are not reclassified subsequent to their initial recognition unless the Association 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 Association'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 is recognised in profit or loss. Impairment of financial assets Impairment of financial assets is recognised on an expected credit loss (ECL) basis for financial assets measured at amortised cost. When determining whether the credit risk of a financial assets has increased significantly since initial recognition and when estimating ECL, the Association 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 Association's historical experience and informed credit assessment and including forward looking information.

8


Rural Financial Counselling Service, NSW Southern Region Inc. ABN: 24 641 712 065

Notes to the Financial Statements For the Year Ended 30 June 2021

2

Summary of Significant Accounting Policies (e)

Financial instruments Financial assets The Association uses the presumption that an asset which is more than 30 days past due has seen a significant increase in credit risk. The Association uses the presumption that a financial asset is in default when the other party is unlikely to pay its credit obligations to the Association in full, without recourse by the Association to actions such as realising security (if any is held). Credit losses are measured as the present value of the difference between the cash flows due to the Association in accordance with the contract and the cash flows expected to be received. This is applied using a probability weighted approach. Trade receivables Impairment of trade receivables have been determined using the simplified approach in AASB 9 which uses an estimation of lifetime expected credit losses. The Association has determined the probability of non-payment of the receivable 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. Where the Association renegotiates the terms of trade receivables due from certain customers, the new expected cash flows are discounted at the original effective interest rate and any resulting difference to the carrying value is recognised in profit or loss. Other financial assets measured at amortised cost Impairment of other financial assets measured at amortised cost are determined using the expected credit loss model in AASB 9. On initial recognition of the asset, an estimate of the expected credit losses for the next 12 months is recognised. Where the asset has experienced significant increase in credit risk then the lifetime losses are estimated and recognised. Financial liabilities The Association 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 Association comprise of trade payables.

(f)

Cash and cash equivalents Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

9


Rural Financial Counselling Service, NSW Southern Region Inc. ABN: 24 641 712 065

Notes to the Financial Statements For the Year Ended 30 June 2021

2

Summary of Significant Accounting Policies (g)

Leases At inception of a contract, the Association assesses whether a lease exists - i.e. does the contract convey the right to control the use of an identified asset for a period of time in exchange for consideration. This involves an assessment of whether: 

The contract involves the use of an identified asset - this may be explicitly or implicitly identified within the agreement. If the supplier has a substantive substitution right then there is no identified asset.

The Association has the right to obtain substantially all of the economic benefits from the use of the asset throughout the period of use.

The Association has the right to direct the use of the asset i.e. decision making rights in relation to changing how and for what purpose the asset is used.

Exceptions to lease accounting The Association has elected to apply the exceptions to lease accounting for both short-term leases (i.e. leases with a term of less than or equal to 12 months) and leases of low-value assets. The Association recognises the payments associated with these leases as an expense on a straight-line basis over the lease term. The Association leases a number of office premises which the lease expires before or prior to 30 June 2021 and are for immaterial amounts so have been accounted for using this exception to lease accounting. (h)

Employee benefits Provision is made for the Association's liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be wholly settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits expected to be settled more than one year after the end of the reporting period have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements. Cashflows are discounted using market yields on high quality corporate bond rates incorporating bonds rated AAA or AA by credit agencies, with terms to maturity that match the expected timing of cashflows. Changes in the measurement of the liability are recognised in profit or loss.

10


Rural Financial Counselling Service, NSW Southern Region Inc. ABN: 24 641 712 065

Notes to the Financial Statements For the Year Ended 30 June 2021

3

Critical Accounting Estimates and Judgments The Directors make estimates and judgements during the preparation of these financial statements regarding assumptions about current and future events affecting transactions and balances. These estimates and judgements are based on the best information available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates. The significant estimates and judgements made have been described below. Key estimates - receivables The receivables at reporting date have been reviewed to determine whether there is any objective evidence that any of the receivables are impaired. An impairment provision is included for any receivable where the entire balance is not considered collectible. The impairment provision is based on the best information at the reporting date.

4

Revenue and Other Income Revenue from continuing operations

Revenue from contracts with customers (AASB 15) - Australian Government core grant income - NSW state government funding - Disaster funding - Small Business Program - Core Funding - Other Revenue Revenue recognised on receipt (not enforceable or no sufficiently specific performance obligations - AASB 1058) - Member subscriptions - Donations received - ATO Cash Flow Boost income

5

2021

2020

$

$

1,380,590 2,099,155 892,773 10,599

1,452,486 480,000 1,179,577 541,091 9,041

4,383,117

3,662,195

5,000 50,000

45 4,200 50,000

55,000

54,245

Total Revenue

4,438,117

3,716,440

Cash and Cash Equivalents Bank balances

1,573,505

2,095,301

11


Rural Financial Counselling Service, NSW Southern Region Inc. ABN: 24 641 712 065

Notes to the Financial Statements For the Year Ended 30 June 2021

6

7

Trade and Other Receivables

2021

2020

$

$

CURRENT Trade receivables GST receivable Rental and utility bonds

78,183 264 13,955

Total current trade and other receivables

92,402

21,245

Plant and equipment At cost Accumulated depreciation

164,409 (93,920)

156,781 (89,448)

Total plant and equipment

70,489

67,333

Motor vehicles At cost Accumulated depreciation

1,037,008 (462,985)

1,103,554 (247,745)

Total motor vehicles

574,023

855,809

Total property, plant and equipment

644,512

923,142

11,598 9,647

Property, plant and equipment PLANT AND EQUIPMENT

(a)

Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Plant and Motor Equipment Vehicles Total $

$

$

Year ended 30 June 2021 Balance at the beginning of year Additions Disposals Depreciation expense

67,333 61,316 (12,259) (45,901)

855,809 21,769 (69,238) (234,317)

923,142 83,085 (81,497) (280,218)

Balance at the end of the year

70,489

574,023

644,512

12


Rural Financial Counselling Service, NSW Southern Region Inc. ABN: 24 641 712 065

Notes to the Financial Statements For the Year Ended 30 June 2021

8

Trade and Other Payables

Current Trade payables Payroll liabilities Credit cards

2021

2020

$

$

77,714 85,277 17,917

46,115 117,391 26,692

180,908

190,198

Trade and other payables are unsecured, non-interest bearing and are normally settled within 30 days. The carrying value of trade and other payables is considered a reasonable approximation of fair value due to the short-term nature of the balances. 9

Employee Benefits Current liabilities Provision for long service leave Provision for annual leave

10

72,128 116,780

67,286 106,993

188,908

174,279

Key Management Personnel Remuneration The key management personnel are the Board of Directors. The totals of remuneration paid to the key management personnel of Rural Financial Counselling Service, NSW Southern Region Inc. during the year are as follows: Short-term benefits

11

36,386

44,100

Contingencies In the opinion of the Directors, the Association did not have any contingencies at 30 June 2021 (30 June 2020: None). Under the terms of the main funding agreement with the Department, any unspent funding may be deducted from future payments by the Department or a remittance may be requested. The funding agreement ended on 30 June 2021 and it is not known as at the date of this report whether any funding unspent to 30 June 2021 will be required to be repaid or deducted from ongoing funding with the new entity (refer to Note 13 for new entity details).

13


Rural Financial Counselling Service, NSW Southern Region Inc. ABN: 24 641 712 065

Notes to the Financial Statements For the Year Ended 30 June 2021

12

Related Parties (a)

The Association's main related parties are as follows: Key management personnel - refer to Note 10. Other related parties include close family members of key management personnel and entities that are controlled or significantly influenced by those key management personnel or their close family members.

(b)

Transactions with related parties Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

13

Events after the end of the Reporting Period The financial report was authorised for issue on 24 September 2021 by the Directors. The Association's net assets and all operations have been transferred to a company limited by guarantee on 1 July 2021. As per the Associations Incorporation Act 2009, NSW Fair Trading has recommended this change of business structure as a result of the organisation’s recent increase in both assets and turnover. The company will continue to provide rural financial counselling services and is a registered charity with Public Benevolent Institution and Deductible Gift Recipient status.

14



Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 to the Responsible Persons of Rural Financial Counselling Service, NSW Southern Region Inc. I declare that, to the best of my knowledge and belief, during the year ended 30 June 2021, there have been: (i)

no contraventions of the auditor independence requirements as set out in section 60-40 of the Australian Charities and Not-for-profits Commission Act 2012 in relation to the audit; and

(ii)

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

KOTHES Chartered Accountants

Simon Byrne Partner Registered Company Auditor #153624 24 September 2021

16


Independent Audit Report to the members of Rural Financial Counselling Service, NSW Southern Region Inc. Report on the Audit of the Financial Report Opinion We have audited the financial report of Rural Financial Counselling Service, NSW Southern Region Inc., which comprises the statement of financial position as at 30 June 2021, the statement of profit or loss and other comprehensive income, the statement of changes in equity 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 statement by members of the board. In our opinion the financial report of Rural Financial Counselling Service, NSW Southern Region Inc. has been prepared in accordance with Division 60 of the Australian Charities and Not-for-profits Commission Act 2012, including: (i)

giving a true and fair view of the Association's financial position as at 30 June 2021 and of its financial performance for the year ended; and

(ii)

complying with Australian Accounting Standards - Reduced Disclosure Requirements and Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013.

Additionally, we have considered the terms of the funding agreements between the Association and the Australian Government and the Government of New South Wales under contracts to provide rural financial counselling services. In our opinion the Association has complied with the terms of the funding agreements and expended grant funds in the manner and to the extent recorded in these financial statements. 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 Association in accordance with the auditor independence requirements of the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act) and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (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. Responsibilities of Directors for the Financial Report The directors of the Association are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the ACNC Act, 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. In preparing the financial report, the directors are responsible for assessing the Association'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 directors either intends to liquidate the Association or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Association's financial reporting process.

17


Independent Audit Report to the members of Rural Financial Counselling Service, NSW Southern Region Inc. (Continued) 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. We 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 Association’s internal control.

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

Conclude on the appropriateness of the responsible entities’ 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 Association’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 Association 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 those charged with governance 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. KOTHES Chartered Accountants

Simon Byrne Partner Registered Company Auditor #153624 24 September 2021

18


Supplementary Information For the Year Ended 30 June 2021

The additional financial data presented on page 20 is in accordance with the books and records of the Association which have been subjected to the auditing procedures applied in our statutory audit of the Association for the year ended 30 June 2021. It will be appreciated that our statutory audit did not cover all details of the additional financial data. Accordingly, we do not express an opinion on such financial data and we give no warranty of accuracy or reliability in respect of the data provided. Neither the firm nor any member or employee of the firm undertakes responsibility in any way whatsoever to any person (other than Rural Financial Counselling Service, NSW Southern Region Inc.) in respect of such data, including any errors or omissions therein however caused.

KOTHES Chartered Accountants

Simon Byrne Partner Registered Company Auditor #153624 24 September 2021

19


Rural Financial Counselling Service, NSW Southern Region Inc. ABN: 24 641 712 065

Income and Expenditure Statement For the Year Ended 30 June 2021

2021

2020

$

$

Income Australian Government core grant income State Government Surplus on disposal of fixed assets Interest Income Disaster funding Small Business Program - Core Funding Member subscriptions Donations Other Revenue ATO Cash Flow Boost income

1,380,590 10,456 1,391 2,099,155 892,773 5,000 10,599 50,000

1,452,486 480,000 2,225 2,312 1,179,577 541,091 45 4,200 9,041 50,000

Total income

4,449,964

3,720,977

Less: Expenses Employee related expenses Vehicle costs Board costs Insurance Counsellor travel - counselling Executive officer costs Counsellor travel - not counselling Office accommodation Utilities Office - Postage, stationery etc. Communication Consultancy Information technology Accountancy and audit Bank charges Staff training Recruitment Promotions Professional Services Fund expenditure Staff amenities Reporting Publications and journals Clinical supervision Memberships Minor capital Legal costs Depreciation

3,290,205 155,869 56,636 6,886 76,019 1,293 6,704 230,720 17,174 23,797 108,781 196,028 40,651 33,337 300 87,191 34,540 181,318 324,067 13,919 8,479 9,166 18,640 856 4,526 64 280,218

1,947,113 129,486 31,503 12,968 24,547 9,500 4,196 166,102 12,371 23,355 40,186 11,100 24,873 29,170 2,922 85,653 16,261 96,167 6,113 2,319 4,613 166 14,922 827 168,570

Total Expenses

5,207,384

2,865,003

(Deficit) / Surplus before income tax

(757,420)

855,974

20


Phone 1800 319 458

2/37 Morgan Street Wagga Wagga NSW 2650

Website www.rfcsnsw.com.au

Email david@rfcsnsw.com.au


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