SPASA WA Annual Report 2022

2022 CORPORATE PARTNERS

2022 INDUSTRY PARTNERS

Committee and Portfolios

Committee Report

President's Report

Detailed Income & Expenditure Statement

Statement of Financial Position

Statement of Changes in Equity

Notes to the Financial Statements Statement by Members of the Committee

Independent Auditor's Report to Members

Detailed Profit and Loss Statement

Statement of Financial Position

Statement of Changes in Equity

Notes to the Financial Statements

Statement by Members of the Committee

Statement by the Auditor

SWIMMING POOL AND SPA ASSOCIATION OF WESTERN AUSTRALIA

SWIMMING POOLANDSPA ASSOCIATION

COMMITTEE AND PORTFOLIOS

Liz Hollingdale- President

Terry Sampson- Vice President

Courtney Bishop- Treasurer ( Resigned January 2023)

Mark Harper Immediate Past President

Lynley Papineu- Committee Member

Ernie Bevilaqua- Committee Member

Linda Taylor - Committee Member

Ryan McGowan - Committee Member

David Spencer- Committee Member

Matthew Stone- Committee Member

PRESIDENTS

Richard Norrish

Ernie Bevilaqua

Christ Hirst

Linda Taylor

Mark Harper

P r e s i d e n t ' s R e p o r t

I t i s w i t h n o s m a l l m e a s u r e o f e m o t i o n t h a t I w r i t e t h i s , t h e f i n a l P r e s i d e n t ’ s R e p o r t f o r S P A S A W A H o w e v e r , t h e d e c i s i o n t o a m a l g a m a t e w i t h S P A S A i s n o t “ t h e e n d o f t h e r o a d ” b u t s i m p l y t h e n e x t s t e p i n t h e j o u r n e y T h e d e c i s i o n b y t h e S P A S A W A C o m m i t t e e t o r e c o m m e n d a m a l g a m a t i o n t o m e m b e r s w a s n o t t a k e n l i g h t l y a n d w a s u n d e r p i n n e d b y a s t r o n g d e s i r e t o a c t i n t h e b e s t i n t e r e s t s o f t h e s w i m m i n g p o o l a n d s p a i n d u s t r y h e r e i n W A A f t e r s e v e r a l y e a r s o f c o - o p e r a t i o n a n d c o l l a b o r a t i o n w i t h S P A S A , i t w a s a g r e e d t h a t a m a l g a m a t i o n w a s t h e b e s t w a y f o r w a r d T h e s a y i n g “ e v e r y c h a l l e n g e r e p r e s e n t s a n o p p o r t u n i t y ” m a y b e a w e l l - w o r n c l i c h é , b u t r e m a i n s a p t i n t h i s c o n t e x t . A s t h e i n d u s t r y i n W A e m e r g e s f r o m a p e r i o d o f h e i g h t e n e d a c t i v i t y f u e l l e d b y g o v e r n m e n t s t i m u l u s , s e v e r a l b i g c h a l l e n g e s a r e l o o m i n g – a n d i t r e m a i n s t o b e s e e n i f t h e s i z e o f t h e c h a l l e n g e i s p r o p o r t i o n a l t o t h e m a g n i t u d e o f t h e o p p o r t u n i t y I t w i l l b e u p t o W A S P A S A m e m b e r s t o a d a p t t o c h a n g i n g c i r c u m s t a n c e s a n d d r i v e i n d u s t r y i m p r o v e m e n t s a n d h o p e f u l l y , t h e n a t i o n a l b o d y c a n a s s i s t a n d s u p p o r t t h i s f u t u r e j o u r n e y W A S P A S A m e m b e r s c a n c e r t a i n l y t a k e p r i d e i n t h e j o u r n e y s o f a r a n d i t w o u l d n o t h a v e b e e n p o s s i b l e w i t h o u t t h e c o n t r i b u t i o n o f i n d i v i d u a l s w h o h a v e g i v e n s i g n i f i c a n t t i m e a n d e n e r g y o v e r m a n y y e a r s a s m e m b e r s o f t h e S P A S A W A C o m m i t t e e . T h e r e i s n o r e m u n e r a t i o n f o r C o m m i t t e e M e m b e r s , a n d p r e c i o u s l i t t l e r e c o g n i t i o n – s o i n t h i s f i n a l P r e s i d e n t ’ s r e p o r t I e x t e n d a h e a r t f e l t “ t h a n k y o u ” t o a l l m e m b e r o f t h e S P A S A W A C o m m i t t e e o v e r t h e p a s t 2 6 y e a r s . S p e c i a l t h a n k s t o T o n y S i n a g r a , L i n d a T a y l o r , M a r k H a r p e r , E r n i e B e v i l a q u a a n d C o u r t n e y B i s h o p , f o r e a c h o f w h o m 2 0 2 2 - 2 3 m a r k s t h e c l o s e o f t h e i r p e r s o n a l S P A S A W A c h a p t e r S e v e r a l c u r r e n t S P A S A W A C o m m i t t e e m e m b e r s , R y a n M c G o w a n D a v i d S p e n c e r , M a t t S t o n e a n d m y s e l f h a v e a g r e e d t o c o n t i n u e t o s u p p o r t t h e i n d u s t r y b y b e c o m i n g m e m b e r s o f t h e n e w W A R e g i o n a l A d v i s o r y C o m m i t t e e a n d L y n l e y P a p i n e a u w i l l c o n t i n u e a s t h e v o i c e o f W A o n t h e S P A S A B o a r d , a s w e l l a s c h a i r i n g t h e b o a r d o f t h e n e w T r u s t e e o f t h e C o m p l e t i o n G u a r a n t e e T r u s t T h a n k s a r e a l s o d u e t o t h e i n c r e d i b l y h a r d w o r k i n g s t a f f – S a d i e S t e v e n s o n a n d R e b e c c a S m i t h – w h o h a v e e s s e n t i a l l y b e e n d o i n g t w o j o b s o v e r t h e p a s t f e w m o n t h s a s S P A S A W A t r a n s i t i o n s i n t o t h e a m a l g a m a t i o n T h e r e h a v e b e e n a s i g n i f i c a n t n u m b e r o f t a s k s t o b e d o n e t o a c h i e v e t h e a m a l g a m a t i o n a n d i t h a s l a r g e l y f a l l e n t o S a d i e a n d R e b e c c a t o a c c o m p l i s h t h e s e t a s k s – i n a d d i t i o n t o n e w r o l e s w i t h S P A S A A s m a n y o f y o u w o u l d b e a w a r e , S a d i e i s a l s o p r e p a r i n g f o r a n e v e n m o r e s i g n i f i c a n t r o l e a s p a r e n t , a n d w e w i s h h e r a l l t h e v e r y b e s t T h a n k y o u a l s o t o M a n d y S t o r e y , w h o h a d b e e n t h e f r i e n d l y f a c e o f S P A S A W A f o r m a n y y e a r s a n d t h o u g h t s h e w a s r e t i r i n g a t t h e e n d o f J u n e l a s t y e a r , b u t h a s u s e d h e r w e a l t h o f S P A S A W A k n o w l e d g e t o h e l p o u t i n v a r i o u s w a y s o v e r t h e p a s t f e w m o n t h s

F i n a l l y , t h a n k Y O U , t h e m e m b e r s o f S P A S A W A w h o a r e n o w W A m e m b e r s o f S P A S A , f o r y o u r e n g a g e m e n t a n d c o n t r i b u t i o n t o o u r v i b r a n t a n d p r o s p e r o u s s w i m m i n g p o o l a n d s p a i n d u s t r y h e r e i n W e s t e r n A u s t r a l i a . T h e c h a l l e n g e ( a n d , i t g o e s w i t h o u t s a y i n g , t h e o p p o r t u n i t y ) i s t o e n s u r e y o u e a c h e n g a g e w i t h t h e n e w a m a l g a m a t e d b o d y a n d c o n t i n u e t h e j o u r n e y T h e f u t u r e o f t h e i n d u s t r y d e p e n d s o n y o u !

l i z a b e t h H o l l i n g d a l e - P r e s i d e n t

THE SWIMMING POOL AND SPA ASSOCIATION OF WESTERN AUSTRALIA INC

C o m m i t t e e R e p o r t

P r i n c i p a l A c t i v i t i e s T h e p r i n c i p a l a c t i v i t i e s o f t h e a s s o c i a t i o n d u r i n g t h e f i n a n c i a l y e a r w e r e : t o p r o m o t e t h e s w i m m i n g p o o l a n d s p a i n d u s t r i e s , a s s o c i a t e d i n d u s t r i e s a n d a c t i v i t i e s ; t o f u r t h e r s t a n d a r d s , g o o d w i l l , e t h i c s , r e p u t a t i o n a n d d e v e l o p m e n t o f t h e i n d u s t r y S i g n i f i c a n t C h a n g e s N o s i g n i f i c a n t c h a n g e i n t h e n a t u r e o f t h e s e a c t i v i t i e s o c c u r r e d d u r i n g t h e y e a r .

O p e r a t i n g R e s u l t T h e s u r p l u s / ( d e f i c i t ) f r o m o r d i n a r y a c t i v i t i e s a m o u n t e d t o Y e a r e n d e d 2 0 2 2 Y e a r e n d e d 2 0 2

S i g n e d i n a c c o r d a n c e w i t h a r e s o l u t i o n o f t h e M e m b e r s o f t h e C o m m i t t e e o n :

E l i z a b e t h H o l l i n g d a l e - P r e s i d e n t

THE SWIMMING POOL AND SPA ASSOCIATION OF WESTERN AUSTRALIA INC

The accompanying notes form part of these financial statements

THE SWIMMING POOL AND SPA ASSOCIATION OF WESTERN AUSTRALIA INC

STATEMENT CHANGES IN EQUITY

The accompanying notes form part of these financial statements

THE SWIMMING POOL AND SPA ASSOCIATION OF WESTERN AUSTRALIA INC

STATEMENT OF FINANCIAL POSITION

THE SWIMMING POOL AND SPA ASSOCIATION OF WESTERN AUSTRALIA INC

STATEMENT OF FINANCIAL POSITION

NOTES TO THE FINANCIAL STATEMENTS

Note 1: Summary of Significant Accounting Policies

Basis of Preparation

This financial report is a special purpose financial report prepared in order to satisfy the financial reporting requirements of the Associations Incorporations Act 2015 (WA) In the opinion of the committee the association is not a reporting entity because it is not reasonable to expect the existence of users who rely on the association’s general purpose financial statements for information useful to them for making and evaluation decisions about the allocation of resources

The financial report has been prepared in accordance with the Associations Incorporations Act 2015 (WA), the basis of accounting specified by all Australian Accounting Standards and Interpretations, and the disclosure requirements of Accounting Standards AASB 101: Presentation of Financial Statements, AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors, AASB 1031: Materiality and AASB 1054: Australian Additional Disclosures

The association has concluded that the requirements set out in AASB 10 and AASB 128 are not applicable as the initial assessment on its interests in other entities indicated that it does not have any subsidiaries, associates or joint ventures Hence, the financial statements comply with all the recognition and measurement requirements in Australian Accounting Standards The association has not assessed whether these special purpose financial statements comply with all the recognition and measurement requirements in Australian Accounting Standards.

The financial report has been prepared on an accrual basis and is based on historical costs and does not take into account changing money values or, except where specifically stated, current valuations of non-current assets

The association is exempt from Income Tax

The following significant accounting policies, which are consistent with the previous period unless otherwise stated, have been adopted in the preparation of this financial report

(a) Accounts Receivables and Other Debtors

Accounts receivable and other debtors include amounts due from members as well as amounts receivable from donors Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets All other receivables are classified as non-current assets

(b) Property, Plant and Equipment (PPE)

Leasehold improvements and office equipment are carried at cost less, where applicable, any accumulated depreciation The depreciable amount of all PPE is depreciated over the useful lives of the assets to the association commencing from the time the asset is held ready for use

Leasehold improvements are amortised over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements

(c) Impairment of Assets

At the end of each reporting period, the entity reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less cost to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset's carrying value over its recoverable amount is expensed to the income statement

Intangibles

Goodwill - Swimming Pool & Spa EXPO

Goodwill is recorded at the amount by which the purchase price for a business combination exceeds the fair value attributed to the interest in the net fair value of identifiable assets, liabilities and contingent liabilities acquired at date of acquisition Goodwill is amortised over 20 years on a straight line basis

(e) 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 have been measured at the amounts expected to be paid when the liability is settled

(f) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, and other short-term highly liquid investments with original maturities of three months or less

(g) Revenue and Other Income

Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed For this purpose, deferred consideration is not discounted to present values when recognising revenue

Interest Income

Interest revenue is recognised using the effective interest rate method

(h) Leases- the Association as lesee

At inception of a contract, the association assesses if the contract contains or is a lease If there is a lease present, a right-of-use asset and a corresponding lease liability is recognised by the association where the association is a lessee However, all contracts that are classified as short-term leases (lease with remaining lease term of 12 months or less) and leases of low value assets are recognised as an operating expense on a straight-line basis over the term of the lease

(i) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO) Receivables and payables are stated inclusive of the amount of GST receivable or payable The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the assets and liabilities statement

(j) Trade and Other Payables

Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the association which remain unpaid at the end of the reporting period The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability

Note 2 : Subsequent Events

a) The Loan from the Guarantee Trust of $664,192 was repaid in full after the end of the year This included the loan amount of $512,000 and interested accumulated between 2017 and 2022 as a result of non-repayment

b) As of 1 January 2023, SPASA WA amalgamated with SPASA Australia All operating costs and revenues will be incurred by SPASA Australia Ltd from this date The formal voluntary cancellation of SPASA WA Inc has been lodged with the WA Government to be finalised in 2023 Thereafter, all remaining cash balances held by SPASA WA will be transferred to SPASA Australia

In accordance with a resolution of the committee of Swimming Pool & Spa Association Of Western Australia Incorporated, the members of the committee declare that the financial statements as set out in this report are:

1 present a true and fair view of the financial position of Swimming Pool & Spa Association Of Western Australia Incorporated as at 31 December 2022 and its performance for the year ended on that date in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) of the Australian Standards Board and the requirements of the Associations Incorporation Act 2015; and

2. at the date of this statement there are reasonable grounds to believe that Swimming Pool & Spa Association Of Western Australia Incorporated will be able to pay its debts as and when they fall due. This statement is signed for and on behalf of the committee by:

Liz Hollingdale

STATEMENT BY MEMBERS OF T H E C O M M I T T E E

INDEPDENDENT REPORT BY AUDITOR

Opinion

I have audited the financial report of Swimming Pool & Spa Association of WA Inc (the association), which comprises the Statement by Members of the Committee, the Income and Expenditure Statement, Balance Sheet as at 31 December 2022, a summary of significant accounting policies and the certification by members of the committee on the annual statements giving a true and fair view of the financial position and performance of the association. In my opinion, the accompanying financial report presents fairly, in all material respects, the financial position of the association as at 31 December 2022 and its financial performance for the year then ended in accordance with the accounting policies described in Note 1 to the financial statements and the requirements of the Associations Incorporation Act 2015 (WA).

Basis for Opinion

I conducted my audit in accordance with Australian Auditing Standards My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report I am independent of the association in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Australia. I have also fulfilled my ethical responsibilities in accordance with the Code.

Qualification

I was unable to verify the opening balances and comparative figures for the year ended 31 December 2021 as the association was not audited in that year Apart from this matter, I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

STATEMENT BY AUDITOR

Emphasis of Matter – Basis of Accounting

I draw attention to Note 1 to the financial report, which describes the basis of accounting The financial report has been prepared to assist the association to meet the requirements of Associations Incorporation Act 2015 (WA). As a result, the financial report may not be suitable for another purpose My opinion is not modified in respect of this matter

Responsibilities of the Committee for the Financial Report

The committee is responsible for the preparation and fair presentation of the financial report in accordance with the financial reporting requirements of the Associations Incorporation Act 2015 (WA) and for such internal control as the committee determines is necessary to enable the preparation and fair presentation of a financial report that is free from material misstatement,

whether due to fraud

or error.

In preparing the financial report, the committee is 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 committee either intends to liquidate the association or to cease operations, or has no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Report

My 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 my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the 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

this financial report

As part of an audit in accordance with Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit I 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 my 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.

STATEMENT BY AUDITOR

- 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 committee.

- Conclude on the appropriateness of the committee’s 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 I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my 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

I communicate with the committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Signed on 17 May 2023

Lesley R McKay CA

Registered Company Auditor 15567 East Perth WA 6004

SPASA WA COMPLETION

GUARANTEE TRUST

FOR THE YEAR ENDED 31 DECEMBER 2022

Detailed Income & Expenditure Statement

Detailed Statement of Financial Position

Notes to the Financial Statements Trustee’s Independent Auditor's Report Committee Report

DETAILED INCOME AND EXPENDITURE STATEMENT

STATEMENT OF FINANCIAL POSITION

STATEMENT OF CHANGES IN EQUITY

Note 1: Summary of Significant Accounting Policies

Basis of Preparation

T h e t r u s t e e h a s p r e p a r e d t h e f i n a n c i a l s t a t e m e n t s o f t h e t r u s t o n t h e b a s i s t h a t t h e t r u s t i s a n o n - r e p o r t i n g e n t i t y b e c a u s e t h e r e a r e n o u s e r s d e p e n d e n t o n g e n e r a l p u r p o s e f i n a n c i a l s t a t e m e n t s T h e f i n a n c i a l s t a t e m e n t s a r e t h e r e f o r e s p e c i a l p u r p o s e f i n a n c i a l s t a t e m e n t s t h a t h a v e b e e n p r e p a r e d i n o r d e r t o m e e t t h e r e q u i r e m e n t s o f t h e t r u s t d e e d , a n d t h e i n f o r m a t i o n n e e d s o f t h e b e n e f i c i a r i e s

T h e f i n a n c i a l s t a t e m e n t s h a v e b e e n p r e p a r e d i n a c c o r d a n c e w i t h t h e s i g n i f i c a n t a c c o u n t i n g p o l i c i e s d i s c l o s e d b e l o w , w h i c h t h e t r u s t e e h a s d e t e r m i n e d a r e a p p r o p r i a t e t o m e e t t h e p u r p o s e s o f p r e p a r a t i o n S u c h a c c o u n t i n g p o l i c i e s a r e c o n s i s t e n t w i t h t h e p r e v i o u s p e r i o d u n l e s s s t a t e d o t h e r w i s e . T h e f i n a n c i a l s t a t e m e n t s h a v e b e e n p r e p a r e d o n a n a c c r u a l b a s i s a n d a r e b a s e d o n h i s t o r i c a l c o s t s u n l e s s o t h e r w i s e s t a t e d i n t h e n o t e s T h e a c c o u n t i n g p o l i c i e s t h a t h a v e b e e n a d o p t e d i n t h e p r e p a r a t i o n o f t h e s t a t e m e n t s a r e a s f o l l o w s :

(a) Property, Plant and Equipment (PPE)

P r o p e r t y , p l a n t a n d e q u i p m e n t a r e c a r r i e d a t c o s t o r a t i n d e p e n d e n t o f t r u s t e e ' s v a l u a t i o n . A l l a s s e t s , e x c l u d i n g f r e e h o l d l a n d a n d b u i l d i n g s a r e d e p r e c i a t e d o v e r t h e u s e f u l l i v e s o f t h e a s s e t s t o t h e t r u s t I n c r e a s e s i n t h e c a r r y i n g a m o u n t a r i s i n g o n r e v a l u a t i o n o f l a n d a n d b u i l d i n g s a r e c r e d i t e d t o a r e v a l u a t i o n r e s e r v e i n s h a r e h o l d e r s ’ e q u i t y . D e c r e a s e s t h a t o f f s e t p r e v i o u s i n c r e a s e s o f t h e s a m e a s s e t a r e c h a r g e d a g a i n s t f a i r v a l u e r e s e r v e s d i r e c t l y i n e q u i t y ; a l l o t h e r d e c r e a s e s a r e c h a r g e d t o t h e i n c o m e s t a t e m e n t E a c h y e a r t h e d i f f e r e n c e b e t w e e n d e p r e c i a t i o n b a s e d o n t h e r e v a l u e d c a r r y i n g a m o u n t o f t h e a s s e t s c h a r g e d t o t h e i n c o m e s t a t e m e n t a n d d e p r e c i a t i o n b a s e d o n t h e a s s e t ’ s o r i g i n a l c o s t i s t r a n s f e r r e d f r o m t h e r e v a l u a t i o n r e s e r v e t o r e t a i n e d e a r n i n g s T h e c a r r y i n g a m o u n t o f p l a n t a n d e q u i p m e n t i s r e v i e w e d a n n u a l l y b y t h e t r u s t e e t o e n s u r e i t i s n o t i n e x c e s s o f t h e r e c o v e r a b l e a m o u n t f r o m t h e s e a s s e t s T h e r e c o v e r a b l e a m o u n t i s a s s e s s e d o n t h e b a s i s o f t h e e x p e c t e d n e t c a s h f l o w s t h a t w i l l b e r e c e i v e d f r o m t h e a s s e t ’ s e m p l o y m e n t a n d s u b s e q u e n t d i s p o s a l T h e e x p e c t e d n e t c a s h f l o w s h a v e n o t b e e n d i s c o u n t e d i n d e t e r m i n i n g r e c o v e r a b l e a m o u n t s S u b s e q u e n t c o s t s a r e i n c l u d e d i n t h e a s s e t ’ s c a r r y i n g a m o u n t o r r e c o g n i s e d a s a s e p a r a t e a s s e t , a s a p p r o p r i a t e , o n l y w h e n i t i s p r o b a b l e t h a t f u t u r e e c o n o m i c b e n e f i t s a s s o c i a t e d w i t h t h e i t e m w i l l f l o w t o t h e c o m p a n y a n d t h e c o s t o f t h e i t e m c a n b e m e a s u r e d r e l i a b l y A l l o t h e r r e p a i r s a n d m a i n t e n a n c e a r e r e c o g n i s e d a s e x p e n s e s i n p r o f i t o r l o s s d u r i n g t h e f i n a n c i a l p e r i o d i n w h i c h t h e y a r e i n c u r r e d

b) Trade and Other Receivables

Trade and other receivables include amounts due from customers for goods sold and services performed in the ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets All other receivables are classified as non-current assets Trade and other receivables are recognised at the nominal transaction value without taking into account the time value of money.

c) Provisions

Provisions are recognised when the trust has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reasonably measured Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period.

(d) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts Bank overdrafts are shown within borrowings in current liabilities on the balance sheet

(e) Revenue and Other Income

Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed. For this purpose, deferred consideration is not discounted to present values when recognising revenue All revenue is stated net of the amount of goods and services tax (GST)

(

f) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST

Note 2: Events Subsequent to Reporting Date

A) Since the end of the financial year the loan to SPASA WA has been repaid in full

B) During the amalgamation process with SPASA Australia, it was discovered that a previous mortgage held with CBA was still listed on the Certificate of title for 5/44 Belmont Ave, Belmont Corrective measures have been taken to remove the interest of CBA from the Certificate of Title.

The trustee declares that the trust is not a reporting entity and that this special purpose financial report should be prepared in accordance with the accounting policies outlined in Note 1 to the financial statements.

The trustee declares that:

(i) the financial statements and notes, present fairly the trust's financial position as at 31 December 2022 and its performance for the year ended on that date in accordance with the accounting policies described in Note 1 to the financial statements; and

(ii) in the trustee's opinion there are reasonable grounds to believe that the trust will be able to pay its debts as and when they become due and payable

Signed in accordance with a resolution of the trustee by:

Scope

I have audited the financial report, being a special purpose financial report comprising the Incomed & Expenditure statement, Statement of Financial Position and Notes to the Financial Statements of The SPASA WA Completion Guarantee Trust for the year ended 31 December 2022 The trustees are responsible for the financial report and have determined that the accounting policies used and described in Note 1 to the financial statements, which form part of the financial report, are consistent with the financial reporting requirements of the trust and are appropriate to meet the needs of the trustees. I have conducted an independent audit of the financial report in order to express an opinion on it to the trustees. No opinion is expressed as to whether the accounting policies used are appropriate to the needs of the trustees

I disclaim any assumption of responsibility for any reliance on this report or on the financial report to which it relates to any person other than the trustees, or for any purpose other than that for which it was prepared. My audit has been conducted in accordance with Australian Auditing Standards. My procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statements, and the evaluation of significant accounting estimates These procedures have been undertaken to form an opinion as to whether, in all material respects, the financial report is presented fairly in accordance with the accounting policies described in Note 1 to the financial statements. These policies do not require the application of all Accounting Standards and other mandatory professional reporting requirements in Australia. The audit opinion expressed in this report has been formed on the above basis

Audit opinion - qualified

The trust was not audited for the year ended 31 December 2021 therefore I have been unable to form an opinion on the opening balances and comparative figures in this financial statement

Subject to the foregoing, in my opinion, the financial report presents fairly, in accordance with the accounting policies described in Note 1 to the financial statements, the financial position of The SPASA WA Completion Guarantee Trust as at 31 December 2022 and the results of its operations for the year then ended.

Signed on : 17 May 2023

Lesley R McKay CA

Registered Company Auditor

East Perth WA 6004

15567