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Youth Connections, Long Jetty


CONTENTS OVERVIEW Our Values..............................................................................................................................................................1 Our Impact............................................................................................................................................................. 5 CEO Report........................................................................................................................................................... 7 Chairperson’s Report..................................................................................................................................10 Central Coast Youth Charity Gala Ball 2017.............................................................................11 OUR HOMES Kariong....................................................................................................................................................................13 Governor General Visit Green Central 2017............................................................................14 Broadmeadow..................................................................................................................................................15 Long Jetty.............................................................................................................................................................17 Wyong.....................................................................................................................................................................18 OUR SERVICES EDUCATION SERVICES NG Central School....................................................................................................................................... 23 Premier’s Youth Initiative (PYI)........................................................................................................... 24 Links to Learning........................................................................................................................................... 25 TRAINING SERVICES Work Placement........................................................................................................................................... 27 YC Media..............................................................................................................................................................29 YC Industry Link (RTO)...............................................................................................................................31 EMPLOYMENT SERVICES Trade Staff Australia.................................................................................................................................... 33 The Skills Generator................................................................................................................................... 35 DISABILITY SERVICES Youth Connections & NDIS.................................................................................................................. 37 Youth Connections Green Central.................................................................................................39 Youth Connections Wyong..................................................................................................................40 Youth Connections Long Jetty..........................................................................................................41 Youth Connections Broadmeadow.............................................................................................. 42 OUR STAKEHOLDERS Our Governance............................................................................................................................................ 44 Our Board............................................................................................................................................................ 45 Our Executives................................................................................................................................................ 47 Our Staff................................................................................................................................................................49 Staff Testimonials...........................................................................................................................................51 Our Supporters............................................................................................................................................... 53 Financials............................................................................................................................................................. 54 FINANCIAL REPORT Director’s Report............................................................................................................................................58 Auditor’s Independence Declaration......................................................................................... 60 Statement of Comprehensive Income.......................................................................................61 Statement of Financial Position........................................................................................................62 Statement of Changes In Members’ Funds..........................................................................63 Statement of Cash Flows......................................................................................................................64 Notes to the Financial Statements................................................................................................65 Directors Declaration.................................................................................................................................76 Independent Audit Report.................................................................................................................... 77 Report prepared by Erin McDonald and Bianca Hennessy. Photos provided by Nicole Yardley. Contributions by YC Group Staff & Volunteers.


Youth Connections, Broadmeadow

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YOU CAN


Building a better future, one person at a time

EMPATHY We care about each and every life we touch, about our communities, and each other.

INCLUSIVENESS We value and include everyone, regardless of their circumstances - those who need help, and those who want to help. We work with others to achieve our goals, and we value collaboration over competition.

GOOD JUDGEMENT We conduct our business with commercial and social acumen, aware that we are part of a broader picture. We are methodical and objective in our decision making, balancing our vision against the need to protect and strengthen the health of our organisation.

FLEXIBILITY We are flexible in our thinking, our ideas, and our operations. We look for innovative solutions to achieve our vision. We adapt to our changing environment and we adapt our solutions and approach to each and every person we help.

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YOU CAN build a better future.

YOU CAN make a positive impact.

YOU CAN contribute to your community socially, economically and civically.

TRADITIONAL OWNERS ACKNOWLEDGEMENT YC Group would like to take this opportunity to Acknowledge the Darkinjung people who are the Traditional Custodians of this Land. We pay our respect to these lands that provide for us. We acknowledge and pay respect to the Aboriginal people who have gone before us and recognise their contribution to our people and community.

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Our impact Individuals Assisted

6,332 Revenue Source Revenue source Revenue source 22%

Governm

22%

Social En 78%

Government funded Government funde Social Enterprise Social Enterprise

78% Government Funding Chart Title

Chart Title 38%

F

S

62%

38%

Federal Federal State State

62%

Revenue per service $3,000,000

$2,620,848

$2,500,000

$2,190,852

$2,000,000 $1,500,000

$1,095,169

$1,000,000

$984,232

$500,000 $-

$27,940 Employment

Disability

Educa@on

Training

6 Social Enterprise


CEO REPORT Claudia Devlin CEO It’s always rewarding to recap the year’s work. YC Group continues to maintain an unwavering focus on our vision and a commitment to deliver our services in an empathetic, inclusive, flexible and person centred manner. 2017/18 was the second year of our three year strategic plan. We are proudly on target to achieve all the goals. I thank the dedicated and hardworking operational teams for successfully delivering their annual plans through great skill, experience and enormous hearts. Our strategic plan has five pillars. All pillars revolve around responding to this fast-changing sector by becoming more effective and efficient. Achieving long-term financial sustainability is essential to ensure that we remain relevant and can continue to deliver impact for the community.

external advice for the improvement of our financial reporting and KPIs. The advice was adopted and has led to increased transparency and timeliness of the financials. 2. We sought a stronger Human Resources solution. We engaged an outsourced specialist provider to ensure our Fair Work compliance and employee management was effectively in place.

At the core of all we do as an organisation are the staff. We made it a priority to focus on staff development. On average 6% of total staff undertook training. The budget for FY19 is 20% which we are well on our way of achieving. It is our vision to equip and empower staff to be the best of themselves personally and professionally.

Pillar 2 – Continuous improvement to services for greater impact

The YC Group commitment to the people we work with is YOU CAN build a better future. YOU CAN make a positive impact

Pillar 1 – Building strong foundations The Board has focused on strengthening its governance of the group by - Continuing to build a skills-based Board - Enhancing Board meeting processes - Reviewing the effectiveness of the committees for improved effectiveness - Building an effective governance structure to guide organisational behaviour as well as improved information flow for decision making Risk mitigation remains a crucial Board priority. There were 2 7 main focuses in this regard for the year 1. A decision was made to engage professional

As part of that commitment we are constantly seeking new ways to improve our services. During the year we have done this through a number of ways including 1. Securing suitable sites to deliver a greater number of projects a. We moved out of Lakehaven into a larger site in Wyong with an ability to service a greater number of participants across more services b. Green Central at Kariong has been secured for another long term tenancy period 2. Reviewing current services in terms of participant feedback in order to better meet expectations. As a result of the consultation had, new services and business models are in development phase to be launched in 2019 3. Maximising the utilisation of IT infrastructure to deliver efficient, optimal services


CEO REPORT During the year we graciously and proudly served 6,428 participants. Some of the positive impacts that we have made include - 11% of Work for the Dole participants secured employment - 15% of apprentices completed their trade. 3% dis continued with their apprenticeship - 87% of Work placement students were matched to an employer. 100% of placements were offered to the schools within the region - Ngaruki Gulgul Student attendance rate was 53% which was a 13% increase from the same time last year - 93% of Abilities participants have met their NDIS goals during the year.

Pillar 3 – Strengthening financial viability and sustainability

The 3 year strategic plan was founded on financially strengthening in order to enable growth of the capacity of the organisation. We focused heavily on strengthening the Balance Sheet. - Equity improved between FY16 to FY18 by 46% - Current Ratio between FY16 to FY18 improved by 32% - The return on government spending financially improved 16% in the last financial year alone. Cost to deliver services went from $1279pp on average across all the programs to $1076pp. These figures were achieved through first, tighter financial management encompassing improvements to systems and processes. Second, stricter operational control from promise/quote to delivery to collection. Financial sustainability together with investing in the right systems, all staff development and continuous improvement plans, place the organisation in a strong position to deliver against strategy and align to our values.

Pillar 4 – Engaging with community for greater social benefit

It was a wonderful year of community engagement for the group. It allowed us to share our stories, successes and challenges. During 2017 YC was the contracted provider for the Youth Frontiers youth volunteer mentoring program on the Central Coast. This was in partnership with the YWCA and facilitated across all four Local Government Area’s. The end of program showcase was held at Mingara on the 25th of October 2017. It was a successful event with many of our local Members of Parliament, the Hon. Ray Williams Minister for Multiculturalism and Minister for Disability Services plus many attendees present. On Saturday 18th of November, 2017, the first Central Coast Youth Charity Gala Ball was held at Gosford RSL. Organised

by the Rotary Club of Umina Beach, the event was held to raise much needed funds to support youth development and empowerment at YC Group. On the 22nd of November 2017 we hosted a visit from the Governor-General, His Excellency the Honourable Sir Peter Cosgrove and Lady Cosgrove. YC Group was chosen by the Governor-General and Lady Cosgrove as the organisation to represent youth services on the Central Coast. During the Governor-General’s visit, staff and students were able to showcase 7 different service divisions of our organisation. On Wednesday the 20th of December 2017, YC Group at Green Central Kariong, was host to Lucy Wicks MP, Federal Member for Robertson. One of the most important subjects discussed was the employment opportunities available for people living with a disability or with complex barriers to employment. On the 7th of February 2018 the Tiny Homes Foundation revealed the completion of its pilot tiny homes project in an open day ceremony. Our subsidiary The Skills Generator is a foundational partner of the project. We placed over 50 Work for the Dole participants during the construction phase. The Workplace Learning Network, of which YC is a member together with 14 other organisations, was established in May 2018. The main goals of the incorporated network is to provide the power of a state-wide organisation that is experienced and professional. The Premier’s Youth Initiative program of which Samaritans is a lead agency was launched during 2017. It is expected that it will go a significant way to providing vital after care support to young people leaving out-of-home care who are likely to be homeless or at risk of homelessness on exit from care. The role of YC is to deliver education and/or employment mentoring and service to the young people in the program.

Pillar 5 – Actively seeking growth opportunities

We continue to invest heavily in the provision of NDIS services. This is in part due to the continuing changes and challenges of the industry. However it is equally due to the desire to improve our services in alignment with feedback and the needs of the participants of which we serve. During the year i. We trialled our first Australian Disability Enterprise. The service was the provision of an On Demand workforce for local farms. ii. We continued to look for areas where there is a market gap in service delivery. 2 new areas have been targeted and are in research phase. Our Registered Training Organisation is also a focus for immediate development. We spent the later part of the year discussing the avenues to develop a sustainable operating model. 8


CEO REPORT CONTINUED The Governor General visit, November 2017

Lucy Wicks MP visits Green Central, December 2017

It has been a privilege to serve in this role again this year. I would like to thank all Board members for their invaluable counsel, support and commitment. I would especially like to thank Pat Lewis as he resigns from his role on the Board for over two decades of service to the organisation. Pat’s dedication to the vision and work of YC is extraordinary and admirable. The YC that exists today is a great deal because of the leadership and contribution made by Pat. I would also like to specially thank Marj Kong who also resigned from the Board this year. Marj was much more than a Director. She was a mentor, an advisor, an advocate, a friend. Her heart and passion for the young people we serve continues on in the framework and culture she helped form. We are grateful for both their unwavering commitment and wish them well into the future. My heartfelt thanks go to the team of amazing staff and volunteers to which are the heartbeat of the organisation. I look forward to 2019 with excitement and confidence in the future of both the organisation and the work we do for the people and communities we serve.

Claudia Devlin CEO of YC Group

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CHAIRPERSONS REPORT Pat Lewis Board Chair

Quickly the end of another year approaches and we wonder where all of the time has gone. So busy have our magnificent staff been in caring for our range of young people on a daily basis, and achieving great outcomes, that the days fly by at a very rapid rate. The year has seen a significant growth in our Abilities programs through the NDIS. We have increased the number of sites from which we work across the Coast and also the number of young people we serve and the range of activities they enjoy. These activities include after school programs and school holiday recreational visits, all of which serve to increase the circle of friends each person has but also to develop vital life skills which will serve them well unto the future. We are so fortunate to have such caring staff who make these goals a reality every day. Our Years 9 to 12 school, Ngaruki Gulgul, has continued to power forward with the young people we educate gradually overcoming their barriers to continuing at school and achieving outcomes they had given up on achieving long ago. It is just wonderful to see the changes occurring in these young people every day through the positive and trusting relationships which have developed between them and the teachers and classroom support workers who work with them. Just recently we had nine students graduate from our Year 12 class with a range of vocational certificates, with several of these now studying to sit some HSC exams. Thank you so much to our Principal, Andrea Cingi, and her wonderful staff for bringing out these achievements in their charges. Through their hard work and achievement since it’s inception, the staff of the school have now brought it to the stage where it can grow independently of YC Group and will become entirely independent from the beginning of 2019. It will however remain co-located with YCG serving the joint mission of building a better future one person at a time. It is pleasing to see that following a slowing of activity this year, our Registered Training Organisation (RTO), and our

Group Training Company (GTO) have plans for expansion in 2019 allowing an increase in the vocational training aspect of our work, and so increasing the chances of our young people to move from our programs to employment. Our Work for the Dole (WFD) programs still continue to provide meaningful and stimulating projects for their participants, again increasing their employment prospects. For those young people who are successfully accessing their education in mainstream schools, our Structured Workplace Learning (SWL) team has continued to find workplace opportunities for them to practice their skills, learn new ones, and be accredited for the competencies they have achieved. This year this dedicated team has placed approximately 5,000 students with employers, including our own YC Media with it’s expert leader, Nicole Yardley – what an achievement! Applying the required governance of the organisation, our Board of volunteer Directors has met regularly throughout the year with our CEO, Claudia Devlin, developing strategy, guiding progress, and providing their individual experiences and skills where required. This year we have gained two new Directors in Peter Alward and Kevin Spiteri who have both brought exceptional skills to the group and have been very active in support of the organisation. Unfortunately we also lost two wonderful Directors. Our long term Secretary, Marj Kong, very reluctantly left the Board to provide family support, while Elizabeth Spooner left because of changes in her employment. I would like to sincerely thank all of our Directors for their commitment to the young people we serve and for the expertise and support they have brought to our deliberation and decision making. In endorsing this Annual Report and Financial Statement, I would like to commend and thank our CEO, Claudia Devlin, and all of her staff for their commitment and passion in their work with our young people and the love and support they give to them. Pat Lewis Board Chair

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2017 CENTRAL COAST YOUTH CHARITY GALA BALL

On Saturday the 18th of November, 2017, the first Central Coast Youth Charity Gala Ball was held at Gosford RSL.

Organised by the Rotary Club of Umina Beach, the event was held to raise much needed funds to support youth development and empowerment at YC Group. The night was a great success. Due to the generous support of guests, sponsors and businesses, over $30,000 was raised. This incredible amount will help YC Group to continue helping individuals, families and communities to successfully transition through education and training, gain meaningful employment and access social support. The theme for the Central Coast Youth Charity Gala Ball was “Enchanted Forest�, featuring greenery and fairy lights, flowers, angel wings, and hues of green and purple. At the core of the Enchanted Forest theme was the butterfly. The CEO Claudia Devlin chose to focus on the butterfly as it reflects the journey of most of our lives. Often we see only what is right in front of us, the beauty, the success or the achievement. However we rarely take the time to look at the journey involved to get to that point. Life is hard, it navigates us through tough times. It is through those hard, difficult times that we grow. It is this growth that is the real beauty. The night was about honouring that journey and being proud of it. Performances on the night showcased the talents of our young people. They included singers Ben Peterson and Taylah Harrington, dancer Summer Harper, Jaymie Haskell and Caitlin Hosking from Arthur Murray Castle Hill Dance School and drumming by The Rhythm Hut, A huge thank you to our sponsors; Jayden Delbridge, New Leaf Dental JC Entertainment, CTQ, Coast Academy Music Peninsula Village, Tonkin Drysdale, Stevens Group, Bee Free and Nutmeg Cakes & Cookies, who helped to make the event a success.

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OUR HOMES We operate out of many temporary sites throughout the year. Our permanent homes are 5 and they include:

BROADMEADOW 49 Broadmeadow Rd Broadmeadow NSW 2292

LAKE HAVEN Bannister Avenue Lake Haven, NSW 2263 Closed June 2018

WYONG 65 Howarth Street Wyong NSW 2259 Opened June 2018

WEST GOSFORD 10 Dignity Cres, West Gosford NSW 2250

LONG JETTY 4/314-316 The Entrance Rd Long Jetty NSW 2261

KARIONG Gate 1, Kangoo Rd Kariong NSW 2250

KARIONG - GREEN CENTRAL Green Central is YC Group’s main home; it delivers apprenticeship, training and employment opportunities to young people in trades including construction, electro-technology, horticulture, plumbing and conservation and land management. 13

Currently operating from Green Central: • YC Media • NDIS provision of services • Hair Salon • Coolomon Cafe • Horticulture House, Community Permaculture & Veggie Garden


The Governor-General and Lady Cosgrove visit Green Central Wednesday the 22nd of November 2017 saw a very special visitor come to YC Group. YC Group has been established for over 21 years now and in that time many amazing things have happened; the events of Wednesday are no exception. We had the honour of hosting a visit from the Governor-General, His Excellency the Honourable Sir Peter Cosgrove and Lady Cosgrove. YC Group was chosen by the Governor-General and Lady Cosgrove as the organisation to represent youth services on the Central Coast. During the Governor-General’s visit, staff and students were able to showcase 7 parts of our organisation including the NG Central School, YC Industry Link premises including the hair salon and auto workshop, our sustainable garden, the cultural walk and the education centre. A stand out of the day was the visit through the sustainable garden. Our Horticulture Trainer Ian explained about the mini ecosystem contained within the garden, fascinating all our guests. Sir Peter Cosgrove was even persuaded enough by the marvelous garden to try a ripe, home-grown plum from our tree. The visit ended with a Q&A session in the Education Centre where the students and staff were given some excellent advice and words of wisdom from the Governor-General. It was a great pleasure listening to an individual that exudes the best qualities; talent, knowledge, inspiration and determination. It was an honour to host Sir Peter Cosgrove and Lady Cosgrove and a privilege to share the stories from students and staff of YC Group with them.

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Broadmeadow Workshop

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BROADMEADOW

Broadmeadow officially opened its doors in July 2017. It marked our first home in the Newcastle/Hunter region and was a major step forward in our breadth of NDIS service offerings. The site is built to transition participants from after school programs to training and life skill development to pre-employment to employment opportunities. This is consistent with our vision for all our people, that we equip people with the skills and support they need to make empowered choices and live a life they are proud of.

SITE FACILITIES

SKILLS FOR LIFE

Full kitchen Training rooms Recreation area Gaming facilities Employment workshop

Social Skills: Ÿ Create friendships Ÿ Relationship building Ÿ Positive interactivity Ÿ Conversational interaction Ÿ Volunteer Work Ÿ Mentorship

PROGRAMS OFFERED STEP Skool’s Out Holiday Program Skool’s Out After School Care Out ‘N’ About Individual Engagement

Technological Skills: ŸBuilding computer skills ŸInteracting confidently with technology

Cooking Skills: Ÿ Food handling skills Ÿ Food safety courses Ÿ Hospitality skills Ÿ Following recipes

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LONG JETTY

Long Jetty is our most tailored site on the Central Coast, specialising in offering Multimedia Sessions. An incredibly popular program run at Long Jetty is known as “Media Mondays”; where participants gain computer skills, photography skills, learn game development, video editing, 3D & Stop Motion Animation, and YouTube Channel Development.

SITE FACILITIES

SKILLS FOR LIFE

Media equipment Kitchen Lounge Gaming area

Social Skills: Ÿ Create friendships Ÿ Relationship building Ÿ Positive interactivity Ÿ Conversational interaction Ÿ Travel training Ÿ Volunteer Work Ÿ Independent Living Skills Ÿ Shopping and Budgeting Ÿ Mentorship Ÿ L’s Driver’s Test Classes

PROGRAMS OFFERED STEP Skool’s Out Holiday Program Skool’s Out After School Care Out ‘N’ About Individual Engagement

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Technological Skills: ŸBuilding computer skills ŸPhotography ŸGame Development ŸVideo Editing 3D & Stop Motion Animation Youtube Channel Development

Cooking Skills: Food handling skills Food safety courses Hospitality skills ŸFollowing recipes


WYONG

Opening its doors in June 2018, Wyong marks our fourth Abilities site post the closure of Lake Haven. Wyong provides participants with a tailored facility and a fun, safe and welcoming environment. Services include after-school care and school holiday programs for school aged participants, as well as programs focused on helping participants gain the skills needed to find employment. Wyong also caters to post-school aged participants providing community based social activities.

SITE FACILITIES Kitchen Gaming Short term accommodation Training Rooms Outdoor area Laundry Gardens

PROGRAMS OFFERED STEP Skool’s Out Holiday Program Skool’s Out After School Care Out ‘N’ About Individual Engagement

SKILLS FOR LIFE Social Skills: Ÿ Create friendships Ÿ Relationship building Ÿ Positive interactivity Ÿ Conversational interaction Ÿ Volunteer Work Ÿ Mentorship

Technological Skills: ŸBuilding computer skills ŸInteracting confidently with technology

Cooking Skills: Ÿ Food handling skills Ÿ Food safety courses Ÿ Hospitality skills Ÿ Following recipes

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EDUCATION SERVICES NG CENTRAL SCHOOL

Ngaruki Gulgul (NG Central School) is a dynamic, enterprise learning environment for young people. Ngaruki Gulgul was founded with a clear central philosophy in mind; that young people have the ability to become positively motivated and fully integrated citizens of our community through practical work and problem-solving, performed side by side with vocational institution. In 2017 a major change took place in an effort to solidify the NGC foundations and flourish independently; the incorporation of Ngaruki Gulgul Limited and creation of a self-determining, school governing body was established.

Highlights of 2017-2018

Hair Salon, Green Central

NG School Testimonial - Barbara Skrinjaric Barbara came to NG Central School part way through 2017. She found in mainstream schooling she wasn’t motivated to attend and didn’t enjoy where she was, but she still had the passion to continue learning. Barbara took the important steps to change the direction of her future and enrolled at NGC as a year 11 student. Straight away Barbara began her Certificate 3 in Salon Assistance through our on-site Registered Training Organisation YCIL. She felt that she was learning a useful trade and retail and customer service skills at the same time. “The best thing about the Salon Assistance course is learning the skills to help me find a job afterwards, and getting to work hands on”, Barbara told us. Her goal after completing the course is to find work in the hair and makeup industry.

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Besides her salon course, she says the highlight of her 2017 school year at NGC was hanging out with friends and having fun at activities such as Aqua Splash for school sport. Her favourite subject was science, saying “I really enjoyed science last year, I really got science and understood it”.


PREMIER’S YOUTH INITIATIVE (PYI)

8 participants The Premier’s Youth Initiative (PYI) is a pilot program designed to support young people aged 16-17 who are leaving Out of Home Care (OOHC) and who are vulnerable to homelessness to live independently.

PARTNERS

Youthconnections.com.au is delivering the education and employment component of the program on the Central Coast. PYI is a partnership with Samaritans, Path 2 Change and My Foundations Youth Housing. Young people are provided with a combination of personal advice, education and employment mentoring, transitional accommodation and support to secure long-term accommodation.

“The PYI program aims to support vulnerable young people at risk of homelessness, generally those leaving Out Of Home Care, to develop independent living skills. As the PYI Education and Employment Mentor on the Central Coast, I have been given the incredible opportunity to make a substantial and lasting positive impact on young people’s futures.

- Michael Maiden

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Green Central, Kariong


LINKS TO LEARNING The Links to Learning Community Grants program provides funding to non- profit organisations to meet the key objectives of Connect, Engage, Learn, Plan and Transition through the delivery of relevant, dynamic and individualised programs to Year 6 – 11 students in NSW Government schools who are disengaged from mainstream education and/or at risk of leaving school early. Youthconnections.com.au has been a successful provider of five programs, in partnership with Department of Education schools in the Newcastle and Central Coast Regions. During 2018 we ran 5 Links to Learning projects. They were:

• Try a Trade at Green Central supporting Erina High School and Narara Valley • • • •

High School CALM and connected at Northlakes High School Ready 4 Success at Hunter River High School Skill Build at Hunter River High School Jumpstart at Swansea High School

Pictured left and below are L2L students with their certificates and completed construction of sandstone seating.

108 students enrolled

108 graduates

22 Aboriginal students

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TRAINING SERVICES Training WORK PLACEMENT

Work placement is a mandatory HSC requirement for students studying ICF VET Courses at school and TVET Courses at TAFE NSW Colleges. Students complete a total of 70 hours over 2 years with a host employer in their chosen vocation. The Work placement team of 8 dedicated staff members connect with Host employers and coordinate over 4,000 placements each year for students from 39 High Schools and TAFE NSW (7 Campuses) in our Service Region of the Central Coast and Northern Sydney/Hills area. Our supportive Host employers provide a hands-on Work placement to the students, which develops both the student’s industry competencies and employability skills. The Work Placement Coordination Program is funded by the NSW Department of Education, Catholic Schools NSW and the Association of Independent Schools of NSW. Work Placement Student Numbers by Industry

Metals & Engineering 183

Primary Industries 133

Automo&ve 51 Retail 245

IDT-Includes Digital Anima&on/Web Design & SoLware 238

Work Placement students numbers by industry:

Business Services 439

Construc&on 954

Hospitality 1665

Electrotechnology 62 Entertainment 327 Financial Services 14

Tourism & Events 161

In 2017 the Workplace Learning Network was formed with Youth Connections as a proud member. The Workplace Learning Network is an association of 16 organisations, with a business model that focuses on the youth of NSW. The Network members through the delivery of Work Placement Coordination Services, have delivered a variety of programs and services to schools, Industry and communities in their regions.

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The Network’s aim is to provide students with opportunities to learn by “doing” in real world contexts. Network members are passionate about providing opportunities for students to obtain the skills and workplace learning experiences they require to make sound personal, educational and vocational choices to ensure they have the best chance of thriving in the workplace of the future.


4,472 work placements coordinated during financial year

2,090 active

220 Aboriginal

employers

students placed

Host Employer Testimonial: “North Construction & Building has worked closely with Youth Connections for many years to help students gain valuable on-the-job experience learning what a typical day in the construction industry could look like. I have witnessed through my interactions with the team at Youth Connections, in particular Ashley McGeorge, of their ongoing passion, commitment and perseverance in seeking out work placements for students across the Central Coast. We look forward to continuing to work with the team at Youth Connections.� Nicole Redmond Corporate Services Manager at North Construction & Building

1st year construction apprentices

Building Cadets at Newcastle Light Rail Project

Highlight on Construction: Students studying Construction for their HSC are to complete a 70 hour Work Placement with an employer. In total, 954 placements were organised this year in Construction. Through study and placement, students gain their White Card, obtain industry related skills and on completion, are equipped with employment skills that could gain them apprenticeships or traineeships. Youth Connections would like to thank a number of Construction Host Employers who have made the last year so successful:

Thank you to Xcalaba Building Services, at Saratoga, who has been hosting students since 2015. Recently a student gained an apprenticeship with Xcalaba Building Services, and they are always on the lookout for more work experience students to employ. Thank you to Norwest Building Services, at Kenthurst, has hosted 26 students this financial year, taking 2 students per placement, and multiple previous students are still employed, including one who 24 hopes in the future he will take the reigns of the company.


Training YC MEDIA

YC Media is YC Group’s onsite media hub, hosting work placement students across the Central Coast. Each week, talented Entertainment and IT students utilise our film, photography and radio studio. Students produce radio shows in partnership with local station CoastFM, giving them the opportunity to create music, record covers and voice, shoot incredible unique content, and most importantly gain employability skills in a supported environment that replicates industry standards and expectations.

Pictured to the right are students from Terrigal High School who, during their placement, got to meet with Coast Fm 963″s Station Manager Pete Little and station volunteers to explore their interests in radio, learning from his expertise and talent and given an opportunity to improvise conversational pieces and receive feedback.

YC Media hosted a total of 25

174 students this year


Coast FM Studio

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Cafe, Green Central

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YC INDUSTRY LINK (RTO) YC Industry Link continued training students this year in our simulated workplace environments located at Green Central, Kariong. The qualifications delivered included:

• Cert II Hospitality • Cert II Horticulture • Cert II Salon Assistance • Cert II in Skills for Work and Vocational Pathways Hospitality have been serving up some delicious meals to staff and students, Horticulture have been busy keeping our gardens tidy while learning about the Aboriginal culture in the area and Salon Assistance have been providing services to customers such as Liesel Tesch, Member for Gosford. In November of 2017, when YC Group was host to his Excellency the Honourable Sir Peter Cosgrove and Lady Cosgrove, Rochelle, a NGC student completing her Cert 2 in Salon Assistance, was presented with her certificate by the Governor-General himself.

5 qualifications attained in financial year

5 courses delivered

3 job outcomes 28


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EMPLOYMENT SERVICES TRADE STAFF AUSTRALIA

Trade Staff Australia is our registered Group Training Organisation. We are invested in the professional development, personal wellbeing and success of every apprentice, with best-practice trade education as our top priority. Trade Staff Australia also offers employers a responsive, streamlined service to ensure their experience of hosting an apprentice is simplified, secure and supported.

Success story: Liam Hoffmannbeck Liam recently left school, knowing he wanted to become a bricklayer like his father Steve. Liams hard work and determination landed him in an apprenticeship working on the same site as his Dad. Liam is a first year apprentice brick/block layer working with Fugen Masonry at the Westfield Kotara construction site. Liam said “I have always wanted to work in the construction industry and especially a bricklayer and when the opportunity came up with Trade Staff I jumped at it! Trade Staff and especially Paul Rockley have been very helpful with getting me signed up and fitted out and I hope to be involved in the construction industry for a long time.�

2 ACT apprentices 14 NSW apprentices 1 ACT apprentice hosts 5 NSW apprentice hosts

2 NSW SBATS

2 NSW labour hire

5 NSW completions

1 NSW labour hosts 30


THE SKILLS GENERATOR

The vision of The Skills Generator is to provide partnered solutions for • Flexible formal and informal training programs • Employment program delivery The

aim is to develop inspire, equip jobseekers for employment and further training

During the year we have co-located services with Tiny Homes Foundation and Construction Trade Qualifications on the site at Gosford. Together we are witnessing real change and strong outcomes for the people we serve. Our relationships with the Job Active providers continues to strengthen. We work collaboratively together to ensure that job readiness outcomes are optimal and job placement possible. These partners include: Joblink. Max Employment, Salvation Army Employment Plus , Ability Options and Employment Services Group.

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Work for the Dole project at St Ives, Sydney. The St Ives Showground Regeneration project was a partnership between the Skills Generator, Max Employment and Ku-ring-gai Council to refresh and replace the native garden areas, re-mulch existing gardens, build and repair pathways around the showground and repair wildflower gardens. The participants, led by supervisor Cameron Hamoni, learnt skills such as path construction, how to identify native plants, build new garden beds, paint fences and seating around the site, mulch application, and planting of new plants.

18 WFD projects

934 WFD participants

87 employment outcomes 32


DISABILITY SERVICES YOUTH CONNECTIONS

The programs delivered by Youth Connections specialise in work readiness, before/after school care and weekend activities that offer practical tools to develop social, communication and independent skills. We see the unique talents, capabilities and potential of every young person we serve. Everything we do is designed to develop independence, life skills, work-readiness and social networks. Our staff are passionate about creating purposeful futures for young people and advocating for them and their families with respect, integrity and support. We are committed to providing flexible and responsive services tailored to individual needs, interests, lifestyle choices and social networks. YC is proud to have four sites operating across the Central Coast and Hunter region; Kariong, Long Jetty, Broadmeadow and Wyong. The closure of our LakeGender Distribu-on haven site in June 2018 made way for the opening of Youth Connections Wyong. Gender distribution

Female 30%

Male 70%

Breakdown of Par-cipant Age Breakdown of participant age 300

256

250 200 150 100

83

50 0 33

0-16

16-25

5

0

1

0

26-35

36-45

46-55

56+


NDIS Statistics

Total client service per site

Total Client Services Per Site 790

Total ParAcipants

162

Wyong

69

Long Je<y

273

Green Central

286

Broadmeadow 0

100

200

300

400

500

600

700

800

900

Primary Disability type distribution

Primary Disability Type Distribu1on

Physical 2% Anxiety 2%

ADHD 1%

Other 14% Intellectual Disability 28%

Learning Disability 4% Down Syndrome 4% Cerebral Palsy 4% Aspergers Syndrome 6%

Moderate Au5sm 10%

Mild Au5sm 25%

34


Youth Connections - Green Central

Y

O

services provided

KA

NG O O RD

PA

participants in total

MW

A ST H W Y

135 273

IC CIF

CENTRAL C

GREEN CENTRAL

Green Central

Success story: Rhys, who has been studying Work Skills with trainer Bruno while at Youth Connections, also has a casual job at his local McDonalds restaurant. Rhys has been there for between 2-3 years, working only 1-2 shifts per week. Under Bruno, Rhys developed his cooking and work skills with the goal of increasing his working hours. When he felt prepared and confident, Rhys approached his manager and asked for a permanent part-time position, which he was successful in gaining! Rhys says it was his increased confidence gained through undergoing his Work Skills training and his hard work and determination that gave him the upper-edge to be successful in gaining this part-time role. One day he hopes to be a manager at the same McDonalds store.

36 skools out after school program

27 community participation weekend program

39 coordination of supports participants

37 school holiday program

35 35

Next Step program/ Transition to Work

54 Individual Support

29 Transcendence Program

12

Aboriginal participants


Youth Connections - Wyong

PACIFIC HWY

WYONG

83

participants in total

ST ROSE

162

T RTH S

H OWA

HOWARTH ST

services provided

Wyong

The Wyong site, opened in June 2018, can be easily spotted from the street by its 5 metre long sign out the front.

22 community participation

38 Individual

weekend program

Support

42 skools out after school program

21 Next Step program/ Transition to Work

32 school holiday program

5 Aboriginal participants

36


Youth Connections - Long Jetty

N

TR AL

CO AS T

participants in total

CE

services provided

PACIF IC

ST

BANK LN

Long Jetty

HW

42 69

Y

LONG JETTY

Success story: Jessy has been at Youth Connections for around 12 months, participating in both the after-school and school-holidays programs. Jessy says the best thing about Youth Connections is getting to meet Rono, the Long Jetty site Program Manager. He also loves all of the outdoor active activities he gets to do, like bush walking and fishing. Recently, Jessy has been spending his time in the Long Jetty programs practicing hard to get his Learners license. He finally sat his test and passed with 100%, so look out for Jessy on the roads soon.

17 skools out after school

6 coordination of supports

program

participants

13 Out N About Community participation

17 school holiday program

7-12 Out N About Friday Evening Social Program 37

4 individual support

8 skools out weekend program

3 Aboriginal participants


Youth Connections - Broadmeadow

TU

RTO N

participants in total

services provided

G R IF

FITH S

RD

BOR EAS RD

BROA DME

RD

127 286

ADOW RD

BROADMEADOW

Broadmeadow

Success story: Jessica is 18 years of age and has been with Youth Connections since 2014. Youth Connections have supported Jessica through her schooling, work experience and work place communication. At school Jessica is completing her HSC this year, her favourite subject is Hospitality where she has accomplished excellent results. Jessica was successful in a work trial and has gained an apprenticeship in Commercial Cookery starting when year 12 is complete. Jessica also achieved her license Ps this year, which will make a big difference for Jessica and her family driving to work. Jessica has achieved many milestones with YCB attending short term holidays to Tasmania, Dubbo and Port Macquarie where friendships were made and life skills developed. Jessica ultimate goal is to complete her apprenticeship, drive safely on the road without being lost, and continue to develop skills as a young woman and enjoy lifeâ&#x20AC;&#x2122;s journey.

7 skools out after school

32 next step program

program

8 coordination of supports participants

38 school holiday program

18 transition support

24 individual Support

30 Out N About community participation

14 Aboriginal participants 38


39


OUR STAKEHOLDERS

Training

OUR GOVERNANCE

The Board of Directors is responsible for directing YC Group’s activities towards achieving our vision and fulfilling our mission while living the core values. The 8 independent, non-executive members serve on a voluntary basis without remuneration. The Board is responsible for approving YC Group’s strategic direction, monitoring its implementation and fulfilling stakeholders’ expectations. It is accountable for YC Group’s overall performance, compliance with relevant laws, codes of conduct and ethical standards and for the oversight of its risk management. The Board appoints Committees to assist in the discharge of its obligations, consider issues referred and delegated by the Board and make recommendations. The Board also appoints the Chief Executive Officer and delegates the operational management of YC Group to her with the powers, authorities and delegations determined by the Board.

The Committees in operation are 1. Finance Committee 2. Risk and Audit Committee 3. Strategic Sub Committee

The Board during the financial year consisted of Pat Lewis Ali Akbarian Karen Ridge Marj Kong Michael Blanchfield Elizabeth Spooner Kevin Spiteri Peter Alward

Chair Director Treasurer Former Secretary (resigned May 2018) Director Director Director Director

40


OUR BOARD

PAT LEWIS – Board Chair Pat is a former secondary school principal and teacher with more than 40 years experience. Throughout his career, Pat was involved in Vocational Education and Training (VET) in schools and at District and Regional levels. Pat has strong ties with Rotary and has extensive networks on the Central Coast. He believes very strongly in the potential of all young people and is passionate about providing opportunities and encouragement to them, especially those who have not had their learning needs met by the traditional school system.

ALI AKBARIAN – Director Ali is Managing Director of a nationally leading Road Safety consultancy firm specialising in safety for disabled and child occupants. Through this role he has developed extensive experience in assisting those in need and experiencing disadvantage. He holds an MBA specialising in Technology Management and is highly skilled in Strategic Business Management and Analysis. He brings to the Board a hands-on small business acumen, identi es and clearly articulates important issues, and possesses a collaborative approach to problem solving.

KAREN RIDGE – Treasurer Karen is a Chartered Accountant operating an Accounting Practice located at Erina. Karen provides technical advice in relation to Taxation, Self-Managed Superannuation and Financial Planning. Karen’s strengths are in providing specific advice, advanced strategies and in communicating effectively with clients. Karen continues to maintain professional education in a variety of interesting topics and prides herself on providing quality services and acts with utmost commitment and dedication. Karen is passionate about learning and continual education and is honoured to be associated with the Finance Function of the YC Organisation.

MARJ KONG - Former Board Secretary

41

Marj is a former secondary school principal with 35 years experience in adolescent education and a career long commitment to vocational learning, the successful transition of young people from school to work and further study, and innovative programs to support student and teacher wellbeing. She is passionate about creating viable future options for young people, meeting their needs and aspirations, and empowering them to explore opportunities to grow and clarify their direction in life with the support of mentor programs and relevant practical experiences. She currently works as a consultant supporting Principals and their executive teams engaged in school development projects.


MICHAEL BLANCHFLOWER â&#x20AC;&#x201C; Director Michael is a successful entrepreneur and business owner with extensive experience in the banking and financial services industry. After living in Sydney his entire life, Michael and his wife Katie moved to the Central Coast three years ago after the sale of his professional services business. Currently, Michael owns and operates Central Coast Mountain Bike Tours and serves as a director and committee member of YC Group.

ELIZABETH SPOONER â&#x20AC;&#x201C; Director Elizabeth has extensive experience in human resources and corporate governance. She is currently the Human Resources Advisor and Employee Relations Officer at Healthdirect Australia. She received her Bachelor of Business Administration and Bachelor of Arts, Human Resources and Commercial Law from Macquarie University in 2014, and last year she completed her Graduate Diploma of Applied Corporate Governance through the Governance Institute of Australia. Her strengths lie in employee relations, change management and business analysis.

KEVIN SPITERI - Director Kevin is an experienced Marketing and Business Development professional. He is the Managing Director of Menace Group, a boutique Marketing, Digital and Social Media service on the Central Coast, servicing national and international clients. Kevin is also known as one of the leading experts in Digital and Social Media in Australia, and more recently as an Author, Entrepreneur and Startup Investor. Kevin has a proven track record of over 17 years industry experience. We welcome Kevin to the YC Group Board of Directors in 2018.

PETER ALWARD - Director Peter Alward is the creator of Courageous Visions, a website for the development of vision statements, created for people with hopes and dreams and who want a real purpose for their life. For over 40 years Peter has been managing, coaching, leading and mentoring individuals. Prior to that Peter has worked in executive and senior management roles in various organisations including Woolworths Supermarkets, Byvan, the Sydney Harbour Foreshore Authority and The Salvation Army. We welcome Peter Alward to the YC Group Board of Directors in 2018.

42


OUR EXECUTIVES CLAUDIA DEVLIN - Chief Executive Officer With a 24 year career in the commercial arena and 5 years in the Not for Profit sector, Claudia brings exceptional business acumen and management to YC Group. She completed an MBA specialising in international law in 2015 at Deakin University and has Bachelor’s Degrees specialising in accounting and economics. She is currently doing her law degree. Before assuming the CEO position in 2016, Claudia held the roles of Chief of Operations and Finance for 14 months and Chief Financial Officer for 2 years. She has been responsible for an organisational restructure to ensure sustainability across all divisions, stimulating revenue growth and reducing dependence on government funding through social enterprise investment. Claudia is a member of CPA Australia and the Australian Institute of Company directors. She is the Treasurer of Prison Fellowship Australia and volunteers with St Vinnie’s Sydney Night Patrol which feeds the homeless. She is passionate about delivering social impact outcomes alongside improving business performance.

ANDREA CINGI - Executive Manager, Education & Training Andrea has extensive experience across corporate and not-for-profit sectors, in Australia and internationally. For eight years prior to joining YC GROUP, she was the CEO of TLK Community College and represented the Central Coast, Newcastle and Hunter regions on the Community Colleges Australia Peak Body. Andrea joined YC in 2011 and successfully led the National Partnership Broker, Youth Connections, Links to Learning and growing disability programs. She also founded and is the Principal of our alternative independent school Ngaruki Gulgul and manages our Registered Training Organisation, YC Industry Link.

LAYO ADEBAYO - Executive Manager, Finance Before coming to Australia in 2012, Layo worked with multinational banks in Treasury Management and Trade Finance and Services roles for 6 years. Once here, he worked with Stanley and Williamson Chartered Accountants from 2013 - 2015 after studying at Macquarie Graduate School of Management, where he completed his internship with Pfizer. He joined YC Group as an Accountant for The Skills Generator and Trade Staff Australia in September 2015 and was appointed Executive manager, Finance in January 2017. He works closely with the social enterprise business areas of the group, overseeing pricing of services, cash flow management and business process improvement. He is a member of CAANZ, fellow of ACCA, UK and an alumnus of University of East London.

PAUL ROCKLEY - Executive Manager, Employment Paul joins the Executive Management team in 2018 as the Executive Management of Employment. Paul’s qualifications include a Diploma in Business Management and Certificate III in Workplace Health and Safety. Paul’s career began as a Welder and he successfully operated his own fabrication construction business throughout the Newcastle and Hunter regions for over 15 years. Paul’s previous roles include the State Operations Manager for Bluescope Steel, before he began his journey with YC Group in 2014 as a Supervisor with The Skills Generator. 43


Green Central, Kariong

44


OUR STAFF

Our staff are one of our greatest strengths, bringing compassion and skill to YC’s work.

The demography of our staff is We aim to build an organisation that is known for being a great place to work; one that is dynamic, positive, productive and high performing. In order to achieve this, the Board and Executive team have identified that a People and Culture Strategy is to be developed during the next financial year. Such a strategy will be founded in achieving the following

45

1. a.

Creating meaningful reasons to join and stay This applies to staff and volunteers. We rec ognise that our volunteers are a necessary part of support running through the organisa tion. We value their commitment to our work and their tireless service across the business.

2. a. 3. a.

Growing and developing leaders We aim to drive leadership excellence and capability, united towards a common purpose Inspiring and growing our people We aim to create a learning culture that prioritises our people’s development and career aspirations

4. Bringing forward fresh and diverse perspec tives a. YC believes in the power of diverse teams, and sees diversity as a key to innovation. The YC consumer base is diverse, and so the employee base must also be diverse in order to provide a better focus on that consumer. 5. a. 6.

Creating a climate to make a difference We support a creative climate that inspires staff and motivates them to make a difference Building adaptability and agility to respond to the changing world.

It is through our people that we will deliver on our service promises of: • person-centred services • local solutions • advancing quality • safety and innovation


Position

Gender Perm Temp FT PT Casual

47% 53% 19% 27% 54%

YC Group employs

85 staff members

38 F 47 M

Age Under 25

35+

17

48

25-34

20

46


Testimonial by Michael Maiden After two separate careers in banking and hospitality management I came to Youth Connections in September 2017 as part of Centrelink’s Work For The Dole program. Initially I worked in reception and assisted with other duties, such as maintenance and minor auditing tasks. After my involvement in Work For The Dole finished, I was offered casual work in a wider range of roles. In June of this year Andrea Cingi offered me the opportunity to work with the Premier’s Youth Initiative, a pilot program in which Youth Connections is a partner organisation. The role began as casual, but quickly developed into a Full Time position. The program aims to support vulnerable young people at risk of homelessness, generally those leaving Out Of Home Care, to develop independent living skills. As the PYI Education and Employment Mentor on the Central Coast, I have been given the incredible opportunity to make a substantial and lasting positive impact on young people’s futures. I consider myself lucky to have worked with some exceptional teams and people in my career. I can say with complete confidence that the Youth Connections team and the environment across the organisation is the finest I have ever encountered. Without exception the entire team is caring, warm, genuine, and has a true desire to inspire the young people we work with.

Regards, Michael Maiden Education and Employment Mentor Premier’s Youth Initiative 21/09/2018

47


Testimonial by Tanya McGranger I began my employment at Youth Connections in March 2017, initially as a casual Receptionist. In July 2017, I was offered full time employment in the Work Placement team as the coordinator for our Sydney Region on behalf of the Department of Education, TAFE NSW, Catholic and Independent schools. My role allows me to work closely with schools, TAFEâ&#x20AC;&#x2122;s, employers and the local community in the Northern/Hills District. The relationships I build with all stakeholders involved enables me to offer valuable and fulfilling Work Placement opportunities to students studying a vocational subject for their HSC. It has been very rewarding knowing I am helping young people gain the confidence and experience they require to excel in the workforce. I am very grateful to work for an organisation that supports the lives of so many young people across New South Wales. The staff have been a pleasure to work with, not only in the Work Placement team, but in every division under the YC Group umbrella.

Kind Regards, Tanya McGranger Work Placement Coordinator 12/10/2018

48


OUR SUPPORTERS PARTNERS

Volunteers Thank you to all the volunteers throughout this year that have contributed to the success of YC Group. “I am studying a Diploma of Community Services – Case Management and chose to do my student placement with Youth Connections – NGC, as it offered me a greater understanding of youths – especially within an education system structured around the needs of each individual student. Since being here, working with all these incredible young people, I am continuously learning and building on my skills, such as: my patience, tolerance, listening and understanding.” Felicity Sando Volunteer

49

Café 125

hours


FINANCIALS YC GROUP FY18 STATISTICS

Revenue by region 7%

Central Coast Other 93%

Central

93%

Coast

Work Placement $761,424 Links to Learning $295,673 NDIS Kariong $1,701,138 Youth Frontiers $47,592 Youth Mentoring $100,923 ATF $27,940 NGC $799,496 WFD $1,142,604 GTO $1,478,244 Other

$74,293

Other

7%

NDIS Newcastle

$489,714

$6,919,041

50


51


FINANCIALS

YC Group Australia Limited ACN 612 836 567 And Controlled Entities Financial Report For The Year Ended 30 June 2018

52


YC Group Australia Limited ACN 612 836 567 and Controlled Entities Financial Report For The Year Ended 30 June 2018 Page Number Director’s Report .......................................................................................................... 3

Auditor’s Independence Declaration.............................................................................. 5

Statement of Comprehensive Income .......................................................................... 6

Statement of Financial Position ..................................................................................... 7

Statement of Changes In Members’ Funds .................................................................. 8

Statement of Cash Flows .............................................................................................. 9

Notes to the Financial Statements .............................................................................. 10

Directors Declaration .................................................................................................. 21

Independent Audit Report .......................................................................................... 22

2 53


YC Group Australia Limited ACN 612 836 567 and Controlled Entities Director’s Report Your directors present their report on the YC Group Australia Limited and its controlled entities for the year ended 30 June 2018. Directors The following persons were directors of the company during the whole of the financial year and up to the date of this report, unless otherwise stated: Name

Qualifications and Period of Directorship

Ali Akbarian Patrick Lewis Karen Ridge Elizabeth Spooner Timothy Michael Blanchflower Peter Alward Kevin Spiteri

Chair Secretary (Resigned 30 November 2018) Director Director (Resigned 22 July 2018) Director Director (Appointed May 2018) Director (Appointed May 2018)

The company is a company limited by guarantee. If the company is wound up, the constitution states that each member is required to contribute a maximum of $5.00 each towards meeting any outstanding obligations of the company. Principal Activities The principal activities of the company during the year were to achieve the vision for the people we serve as well as deliver the strategic plan. Its main service groupings are: Education Training Employment Disability services Social enterprise These services are achieved through the subsidiary entities. There were no significant changes in the nature of these activities during the year. Short-term and Long-term Objectives Short-term The short-term objectives are to • • •

Work with our project partners in developing better project performance and evidence based outcomes Ensure that all funded programs deliver their goals within the contracted period of time Commit to continually improving our service delivery

3 54


YC Group Australia Limited ACN 612 836 567 and Controlled Entities Directors Report Long-term Long-term objectives are to • • • •

Have less dependence on government funding Have a strong asset portfolio including ownership of land Be an effective provider of services to government with measurable and transparent outcomes for each program funded Be a voice for the youth of the regions we operate in, in order to positively impact future generations of people facing vulnerabilities

Strategies adopted to meet objectives The strategy adopted to meet objectives is establishing partnerships with key stakeholders to ensure we achieve our long term and short term objectives. Operating Result The operating profit of the company amounted to $21,542 (2017: Profit $766 732). The company is exempt from income tax. Proceeds on Behalf of the Company No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purposes of taking responsibility on behalf of the entity for all or any part of those proceedings. Auditor’s Independence Declaration A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out in page 5. The director’s report is signed in accordance with a resolution of the directors.

Director

Director

Dated:

4 55


YC Group Australia Limited ACN 612 836 567 and Controlled Entities Auditorâ&#x20AC;&#x2122;s Independence Declaration to the Directors of YC Group Australia Limited and Controlled Entities I declare that, to the best of my knowledge and belief, during the financial year ended 30 June 2018, there have been: (i)

no contraventions of the auditor independence requirements as set out in 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 audit.

the

FORTUNITY ASSURANCE

T R Davidson Partner 155 The Entrance Road ERINA NSW 2250 Dated:

5 56


YC Group Australia Limited ACN 612 836 567 and Controlled Entities Statement of Comprehensive Income For The Year Ended 30 June 2018 Consolidated Group Note Revenues Employee benefits expense Depreciation expenses Finance costs Rental expenses Other expenses from ordinary activities

2

Profit before income tax Income tax expense

3

Total comprehensive income for the year

2018 $ 6,919,041 (4,570,361) (264,095) (5,177) (89,227)

9,923,959 (5,330,403) (291,784) (26,816) (45,429)

(1,968,639) _________ 21,542 __________

(3,462,795) _________ 766,732 _________

21,542 _________

766,732 _________

The accompanying notes form part of these financial statements.

6 57

2017 $


YC Group Australia Limited ACN 612 836 567 and Controlled Entities Statement of Financial Position As At 30 June 2018 Consolidated Group

Assets Current Assets Cash and cash equivalents Trade and other receivables Prepayments

Note

2018 $

2017 $

4 5

63,513 968,134 120,612 _________ 1,152,259 _________

268,156 880,468 131,478 _________ 1,280,102 _________

6 7

2,786,038 48,537 _________ 2,834,575 _________

2,893,481 17,911 _________ 2,911,392 _________

3,986,834 _________

4,191,494 _________

8 9 10

651,106 172,269 29,238 457,562 _________ 1,310,175 _________

558,612 180,027 181,256 468,677 _________ 1,388,572 _________

9 10

80,733 82,393 _________ 163,126 _________

80,582 76,312 154,043 _________ 310,937 _________

1,473,301 _________ 2,513,533 _________

1,699,509 _________ 2,491,991 _________

(143,467) 2,657,000 _________ 2,513,533 _________

(165,009) 2,657,000 _________ 2,491,991 _________

Total Current Assets Non-Current Assets Property, plant & equipment Intangible assets Total Non-Current Assets Total Assets Liabilities Current Liabilities Trade and other payables Employee benefits Borrowings Funding in advance Total Current Liabilities Non-Current Liabilities Employee benefits Borrowings Other Liabilities Total Non-Current Liabilities Total Liabilities Net Assets Membersâ&#x20AC;&#x2122; Funds Retained deficit Asset revaluation reserve Total Membersâ&#x20AC;&#x2122; Funds

The accompanying notes form part of these financial statements.

7 58


YC Group Australia Limited ACN 612 836 567 and Controlled Entities Statement of Changes in Membersâ&#x20AC;&#x2122; Fund For The Year Ended 30 June 2018 Asset Revaluation Reserve $

Retained Deficit

Balance at 30 June 2016

2,657,000

(931,741)

1,725,259

Profit for the year

________ 2,657,000

766,732 ________ (165,009)

766,732 ________ 2,491,991

________ 2,657,000 ________

21,542 ________ (143,467) ________

21,542 ________ 2,513,533 ________

Balance at 30 June 2017 Profit for the year Balance at 30 June 2018

$

The accompanying notes form part of these financial statements.

8 59

Total $


YC Group Australia Limited ACN 612 836 567 and Controlled Entities Statement of Cash Flows For The Year Ended 30 June 2018 Consolidated Group Note

2018 $

2017 $

6,755,493 (6,453,372) 882 (5,177) _________ 297,826 _________

7,092,696 (7,213,294) 5,603 (24,563) _________ (139,558) _________

7,554 (162,335) (32,500) _________ (187,281) _________

10,760 (278,807) (9,091) _________ (277,138) _________

(199,969) 36,800 ________ (163,169) ________ (52,624) 115,898 _________ 63,274 _________

(71,089) 130,200 ________ 59,111 ________ (357,585) 473,463 _________ 115,898 _________

Cash Flow from Operating Activities Receipts from customers, grants Payments to suppliers and employees Interest received Interest Paid Net cash used in operating activities

11 (b)

Cash Flow from Investing Activities Proceeds from sale of property, plant and equipment Payment for property, plant and equipment Payment for intangible asset Net cash used in investing activities Cash Flow from Financing Activities Prepayment of borrowings Proceeds from borrowings

Net increase in cash held Cash at beginning of year Cash at the End of Financial Year

11(a)

The accompanying notes form part of these financial statements.

9 60


YC Group Australia Limited ACN 612 836 567 and Controlled Entities Notes To The Financial Statements For The Financial Year Ended 30 June 2018 Note 1. Statement of Significant Accounting Policies The consolidated financial statements and notes represent those of YC Group Australia Limited and controlled entities (the ‘consolidated group’ or ‘group’). YC Group Australia Limited is incorporated and domiciled in New South Wales, Australia. YC Group Australia Limited is a company limited by guarantee. Basis of Preparation These general purpose financial statements have been prepared in accordance with the Australian Charities and Not-for-profits Commission Act 2012 and the Australian Accounting Standards - Reduced Disclosure Requirements and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) and other law requirements. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated. The financial statements have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. (a)

Principles of Consolidation

The consolidated financial statements incorporated the assets, liabilities and results of entities controlled by YC Group Australia Limited at the end of the reporting period. A controlled entity is any entity over which Youthconnections.com.au has power to govern the financial and operating policies so as to obtain benefits from its activities. In preparing the consolidated financial statements, all intra-group balances and transactions between entities in the consolidated group have been eliminated in full on consolidation. A list of controlled entities is contained in Note 12 to the financial statements. (b)

Income Tax

The consolidated group is exempt from income tax. (c)

Property, Plant and Equipment

Each class of property, plant and equipments is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses. Increases in the carrying amount arising on revaluation of property are recognised in other comprehensive income and accumulated in the revaluation surplus in equity. Revaluation decreases that offset previous increases of the same class of assets shall be recognised in other comprehensive income under the heading of revaluation surplus. All other decreases are recognised in profit and loss.

10 61


YC Group Australia Limited ACN 612 836 567 and Controlled Entities Notes To The Financial Statements For The Financial Year Ended 30 June 2018 Note 1. Statement of Significant Accounting Policies (contâ&#x20AC;&#x2122;d) (d)

Depreciation

The depreciable amount of all fixed assets are depreciated on a straight line basis over the useful lives of the assets to the association commencing from the time the asset is held ready for use. As the revalued property are depreciated the difference between depreciation recognised in the Statement of Comprehensive Income, which is based on the revalued carrying amount of the asset, and the depreciation based on the assetâ&#x20AC;&#x2122;s original cost is transferred from the revaluation surplus to retained earnings. (d)

Depreciation

The depreciation rates used for each class of depreciable asset are: Class of Asset Leasehold improvements Motor Vehicle Plant and Equipment Furniture and fittings (e)

Depreciation Rate 20% 20-40% 30% 20%

Financial Instruments

Classification and Subsequent Measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest rate method, or cost. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. Amortised cost is calculated as the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method. The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying amount with a consequential recognition of an income or expense item in profit or loss. Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent armâ&#x20AC;&#x2122;s length transactions, reference to simular instruments and option pricing models.

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YC Group Australia Limited ACN 612 836 567 and Controlled Entities Notes To The Financial Statements For The Financial Year Ended 30 June 2018 Note 1. Statement of Significant Accounting Policies (cont’d) (i) Financial assets at fair value through profit or loss. Financial assets are classified at “fair value through profit or loss” when they are held for trading for the purpose of short term profit taking, derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying amount being included in profit or loss. (ii) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised. (iii) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the company’s intention to hold these investments to maturity. They are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised. (iv) Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either not capable of being classified into other categories of financial assets due to their nature or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments. They are subsequently measured at fair value with any re-measurements other than impairment losses and foreign exchange gains and losses recognised in other comprehensive income. When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other comprehensive income is reclassified into profit or loss. Available-for-sale financial assets are classified as non-current assets when they are expected to be sold after 12 months from the end of the reporting period. All other available for sale financial assets are classified as current assets.

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YC Group Australia Limited ACN 612 836 567 and Controlled Entities Notes To The Financial Statements For The Financial Year Ended 30 June 2018 Note 1. Statement of Significant Accounting Policies (cont’d) (e)

Financial Instruments (cont’d)

(v) Financial liabilities Non-derivative financial liabilities other than financial guarantees are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial liability is derecognised. Impairment At the end of each reporting period, the company assesses whether there is objective evidence that a financial asset has been impaired. A financial asset (or a group of financial assets) is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events (a “loss event”) having occurred, which as an impact on the estimated future cash flows of the financial asset(s). In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of the instrument is considered a loss event. Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit or loss at this point. In the case of financial assets carried at amortised cost, loss events may include: indications in debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter into bankruptcy or other financial reorganisation; and changes in arrears or economic conditions that collate with defaults. For financial assets carried at the amortised cost (including loans and receivables), a separate allowance account is used to reduce the carrying amount of the financial assets impaired by credit losses. After having undertaken all possible measures of recovery, if management establishes that the carrying amount cannot be recovered by any means, at that point the written-off of amounts are charged to the allowance account or the carrying amount of impaired financial assets is reduced directly if no impairment amount was previously recognised in the allowance accounts. When the term financial assets that would otherwise have been past due or impaired have been renegotiated, the company recognises the impairment for such financial assets taking into the account the original terms as if the terms have not been renegotiated so that the loss events that have occurred are duly considered.

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YC Group Australia Limited ACN 612 836 567 and Controlled Entities Notes To The Financial Statements For The Financial Year Ended 30 June 2018 Note 1. Statement of Significant Accounting Policies (cont’d) (e)

Financial Instruments (cont’d)

Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are discharged, cancelled or expired. The difference between the carrying amount of the financial liability, which is extinguished or transferred to another party, and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss. (f)

Impairment of Assets

At the end of each reporting period, the entity assesses whether there is any indication that an asset may be impaired. If such indication exists, an impairment test is carried out on the asset by comparing the recoverable amount if an asset, being the higher of the asset’s fair value less costs to sell and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit and loss, unless the asset is carried at a re-valued amount in accordance with another Standard (e.g. in accordance with the revaluation model in AASB 116). Any impairment or loss of a revalued asset is treated as a revaluation decrease in accordance with that other standard. Where it is not possible to estimate the recoverable amount of an individual asset, the entity estimates the recoverable amount of the cash-generating unit to which the asset belongs. Impairment testing is performed annually for goodwill and intangible assets with indefinite lives. (g)

Employee Entitlements

Provision is made for the group’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for their benefits. (h)

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 short-term borrowings in current liabilities on the statement of financial position.

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YC Group Australia Limited ACN 612 836 567 and Controlled Entities Notes To The Financial Statements For The Financial Year Ended 30 June 2018 Note 1. Statement of Significant Accounting Policies (contâ&#x20AC;&#x2122;d) (i)

Trade and Other Receivables

Trade and other receivables include amounts due from members as well as amounts receivable from customers for goods sold in 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 initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate method, less any provision for impairment. Refer to note 1(f) for further discussion on the determination of impairment losses. (j)

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 Tax Office (ATO). (k)

Trade and Other Payables

Trade and other payables represent the liabilities for goods and services received by the company during the reporting period that 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. (m)

Critical Accounting Estimates and Judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.

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YC Group Australia Limited ACN 612 836 567 and Controlled Entities Notes To The Financial Statements For The Financial Year Ended 30 June 2018 Consolidated Group 2018 $

2017 $

6,602,969 18,000 29,634 19,482 248,074 _________ 6,918,159 _________

6,174,294 2,405,361 9,052 31,250 8,920 1,289,479 _________ 9,918,356 _________

882 _________ 6,919,041 _________

5,603 _________ 9,923,959 _________

5,177 264,098 _________

24,563 279,791 _________

2,916 60,597 _________ 63,513 _________

2,878 265,278 _________ 268,156 _________

Note 2. Revenue Operating activities Funding received Training revenue Incentives received Rebates and recoveries Donations Other income

Non-operating activities Interest received Total Revenue

Note 3. Profit from Ordinary Activities Profit from ordinary activities has been determined after: (a) Expenses Borrowing costs Depreciation

Note 4. Cash and Cash Equivalents Cash on hand Cash at bank

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YC Group Australia Limited ACN 612 836 567 and Controlled Entities Notes To The Financial Statements For The Financial Year Ended 30 June 2018 Consolidated Group 2018 $

2017 $

808,247 17,119 142,768 _________ 968,134 _________

815,168 20,679 35,341 9,280 _________ 880,468 _________

Leasehold improvements - at directors’ valuation (a) Leasehold improvements – at cost Less accumulated depreciation

2,657,000 308,432 (477,125) _________ 2,488,307 _________

2,657,000 259,291 (383,828) _________ 2,532,463 _________

Plant and equipment – at cost Less accumulated depreciation

696,053 (554,308) _________ 141,745 _________

744,610 (546,675) _________ 197,935 _________

Motor vehicle – at cost Less accumulated depreciation

446,778 (290,792) _________ 155,986 _________ 2,786,038 _________

398,610 (235,527) _________ 163,083 _________ 2,893,481 _________

Note 5. Trade and Other Receivables Trade debtors Bonds Other debtors Loan – Associated entities

Note 6. Property, Plant & Equipment

(a)

The leasehold improvements at Green Central, Kariong were valued by the directors on 30 June 2016.

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YC Group Australia Limited ACN 612 836 567 and Controlled Entities Notes To The Financial Statements For The Financial Year Ended 30 June 2018 Consolidated Group 2018 $

2017 $

Note 6. Property, Plant & Equipment (cont’d) Movements in Carrying Amounts Movement in the carrying amount for each class of property, plant and equipment between the beginning and the end of the current financial year.

Land Balance at beginning of year Additions Disposals/Transfers Depreciation expense Carrying amount at the end of the year

-

Leasehold Improvementat directors valuation 2,532,463 45,226 (89,382) 2,488,307

Plant & Equipment - at cost

Motor vehicleat cost

193,945 67,050 (9,829) (109,421)

167,073 50,059 (5,022) (56,124)

2,893,481 162,335 (14,851) (254,927)

141,745

155,986

2,786,038

Total

Note 7. Intangible assets RTO Intellectual property – at cost Less accumulated depreciation

Goodwill – at cost

22,115 (6,078) _________ 16,037 _________ 32,500 _________ 48,537 _________

22,115 (4,204) _________ 17,911 _________ _________ 17,911 _________

287,506 231,837 62,273 69,490 _________ 651,106 _________

186,270 159,059 213,283 _________ 558,612 _________

Note 8. Trade and Other Payables Trade payables Other payables and accruals GST payable Loan – Ngaruki Gulgul Limited

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YC Group Australia Limited ACN 612 836 567 and Controlled Entities Notes To The Financial Statements For The Financial Year Ended 30 June 2018 Consolidated Group 2018 $

2017 $

145,017 27,252 _________ 172,269 _________

152,552 27,475 _________ 180,027 _________

37,946 42,787 _________ 80,733 _________

57,798 22,784 _________ 80,582 _________

239 28,999 _________ 29,238 _________

152,258 28,998 _________ 181,256 _________

82,393 _________ 82,393 _________

76,312 _________ 76,312 _________

Note 9. Employee Benefits Current: Annual leave Long service leave

Non-Current: Annual leave Long service leave

Note 10. Borrowings Current: Bank overdraft Hire purchase liabilities

Non-Current: Hire purchase liabilities

Note 11. Cash Flow Statement (a)

Reconciliation of Cash

Cash at the end of the financial year as shown in the statements of cash flows is reconciled to items in the statements of financial position as follows. Cash on hand Cash at bank Bank overdrafts

2,916 60,597 (239) _________ 63,274 _________

Balance as per statement of cash flows

2,878 265,278 (152,258) _________ 115,898 _________

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YC Group Australia Limited ACN 612 836 567 and Controlled Entities Notes To The Financial Statements For The Financial Year Ended 30 June 2018 Consolidated Group 2018 $

2017 $

Note 11. Cash Flow Statement (contâ&#x20AC;&#x2122;d) (b) Reconciliation of net cash provided by operating activities to operating profit after income tax. Operating (loss) /profit for the year Non-cash flows in profit from ordinary activities Depreciation and amortisation Provision for doubtful debts Loss on disposal of property, plant and equipment Changes in net assets and liabilities: Trade and other receivables Prepayments Trade and other payables Employee benefits Funding in advance

21,542

766,732

264,098 75,000 -

277,249 2,295 53,633

(162,666) 10,866 92,494 7,607 (11,115)

Net cash used in operating activities

297,826 _________

(113,611) (82,658) (451,598) (67,980) (523,620) _ (139,558) _________

Note 12. Controlled Entities Controlled Entities Consolidated Subsidiaries of YC Group Australia Limited - YC Industry Link Pty Ltd - YG Enterprises Pty Ltd - Youthconnections.com.au - BISEE Pty Ltd - All Things Finance Pty Ltd - The Skills Generator Limited - Australian Landscapes Pty Ltd - Ngaruki Gulgul Limited (ceased to be a member of the group on 31 December 2017)

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YC Group Australia Limited ACN 612 836 567 and Controlled Entities Directors’ Declaration In accordance with a resolution of the directors of YC Group Australia Limited made pursuant to Section 60.15 of the Australian Charities and Not-for-profits Regulations 2013, the directors of the company declare that: 1.

2.

The financial statements and notes, as set out on pages 6 to 21 are in accordance with the Australian Charities and Not-for-profits Commission Act 2012: (a)

comply with Australian Accounting Standards – Reduced Disclosure Requirements; and

(b)

give a true and fair view of the financial position as at 30 June 2018 and of the performance for the year ended on that date.

In the directors’ opinion there are reasonable grounds to believe that the consolidated group will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Director

Director

Kariong:

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YC Group Australia Limited ACN 612 836 567 and Controlled Entities Independent Audit Report To The Members Of YC Group Australia Limited And Controlled Entities Report on the Financial Report Opinion We have audited the accompanying financial report of YC Group Australia Limited (the group), which comprises the statement of financial position as at 30 June 2018, statement of profit or loss & other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the committee Members’ declaration. In our opinion the financial report of YC Group Australia Limited is in accordance with the Australian Charities and Not-for-profits Commission Act 2012, including: (a)

giving a true and fair view of the Group's financial position as at 30 June 2018 and of its performance for the year ended on that date; and

(b)

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

Other Information The Directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2018, but does not include the financial report or our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears materially misstated. If, based on the work performed, we conclude that there is a material misstatement of this other information, we are required to report on this fact. We have nothing to report in this regard. Directors’ Responsibility for the Financial Report The Directors of the Group are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Australian Charities and Not-for-profits Commission Act 2012 and for such internal control as the committee members 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 Group’s ability to continue as a going concern, disclosing, as applicable matters related to going

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YC Group Australia Limited ACN 612 836 567 and Controlled Entities Independent Auditor’s Report to the Members of YC Group Australia Limited and Controlled Entities Directors’ Responsibility for the Financial Report (cont’d) concern and using the going concern basis of accounting unless the Directors either intends to liquidate or to cease operations, or has no realistic alternative but to do so. The Directors are responsible for overseeing the Group’s financial reporting process. Auditor's Responsibility 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 it 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 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 controls. •Obtain an understanding of internal controls relevant to the audit in order to design the audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. • Conclude on the appropriateness of the Group’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 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 or conditions may cause the entity 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 deficiencies

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YC Group Australia Limited ACN 612 836 567 and Controlled Entities Independent Auditorâ&#x20AC;&#x2122;s Report to the Members of YC Group Australia Limited and Controlled Entities Auditor's Responsibility for the Audit of the Financial Report Continued â&#x20AC;Ś in internal control that we identify during our audit. FORTUNITY ASSURANCE

T R Davidson Partner Registered Association Auditor No: 1177 155 The Entrance Road ERINA NSW Dated:

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CONTACT US 02 43 46 11 11 info@ycgroup.com.au www.ycgroup.com.au @ycgroupaustralia

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