YMCA SERVICES
Annual Report 2019
Y Services exists solely to support its member associations with collective purchasing, merchandising and sourcing expertise, as the National Services Provider for the Y Movement in Australia. Y Services and Y Australia work collaboratively to achieve the strategic ambitions agreed to by the Y Movement as two separate legal entities.
Y Merchandise We are now positioning ourselves at the forefront of innovation and excellence, driving us to ensure that best practice builds our Y brand, purchasing better quality and ethically sourced products at reasonable prices, with all profits continuing to remain within the Y.
National Safeguarding Unit We strive to ensure all children and young people are safe and feel safe, valued, heard and respected at the Y, in their families and their communities. A young person can only be inspired if they feel safe.
Procurement Procurement includes capacity building, innovation and excellence, reputation and brand building, value adding with access to higher quality services, risk reduction, as well as aggregated scale purchasing efficiencies that secures good value and releases funds back to Ys.
Support Services We also continue to explore Support Services and the mutual benefits that can be realised by Ys continuing to work in collaboration.
We believe in the power of inspired young people
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Y Services / Annual Report 2019
CONTENTS 05 07 08 10 11 12
Messages from our Chair and CEO
Board of Directors
The Journey of Y Services
Current Shareholdings
Sales Performance
Financial Report
Y Services / Annual Report 2019
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Y MILLION MOMENTS “The Y in Australia is grateful to Y Services for its continued support of our national campaign A Million Moments, which is our national storytelling campaign to hero the everyday moments of inspiration that happen every day at every Y across Australia. With Y Services’ generous support, we’re on target to reach 2.4 million Australians over 12 months, and share 30 moments of inspiration in multiple forms – video, social media posts, and articles – all featured on our campaign site at www.millionmoments.org.au. The beautiful resources we have developed are all available for all our YMCAs to use, too, helping us present a consistent story across the nation. In almost every story you’ll see the Y brand proudly being worn by our people and participants. That’s thanks to Y Services, too.”
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Y Services / Annual Report 2019
Melinda Crole, National CEO, Y Australia
MESSAGES FROM OUR CHAIR Y Services was established by the YMCA Movement after deciding that “by collectively working together we’re all going to benefit”. It was always the intent that the business would continue to evolve and explore new opportunities to unlock the potential of our national movement. At the 2018 AGM our name changed from YMCA E-Store to YMCA Services to reflect our repurposed strategy and broader service offering. This year we consolidated and restructured our Merchandising business unit, established our National Safeguarding unit, commenced the rollout of our Procurement program and explored the opportunities of Support Services coming under the Y Services banner; moving forward as a national service provider for all Ys in Australia. We welcomed our new CEO, Glyn Davies to lead the team and business during this important and challenging period. Glyn joined us from YMCA Whittlesea, bringing a proven track record and experience from within the Y and in private business. It has been an interesting and demanding year for Glyn and his team navigating the significant changes associated with the establishment of the new Y Services and delivering on its potential. A lot has been learned, progress has been made and momentum is gaining. Notwithstanding the changes and challenges, Y Services’ focus is always to support, act on behalf of and work in collaboration with Associations; to listen to what is wanted and needed; and deliver tangible results that benefit the Movement. We are doing things differently with Y Merchandise, positioning ourselves at the forefront of innovation and excellence driving us to ensure that best practices build our Y brands, purchasing better quality and ethically sourced products at reasonable prices, with all profits continuing to remain within the Y. Our new highly skilled and experienced National Safeguarding Unit is committed to supporting the Y’s efforts to ensure all children and young people are safe, to ensure we remain vigilant in our commitment to ensure all children and young people are safe and thrive. Our Procurement program’s underlying benefits go beyond just aggregated purchasing and savings. The true list of benefits is long and include capacity building, innovation, safeguarding, reputation, brand building, higher quality and risk reduction. Against this backdrop of change, I am pleased to report that our FY2019 Revenue was $3,612,441 up from $3,264,587 in FY2018. Our FY2019 Operating Profit (Total Comprehensive Income) was $93,732, which was down from $165,582 in FY2018, predominantly due to one off employee expenses and a reduced number of Y centres purchasing merchandise. I would like to acknowledge the contribution of my fellow directors, Donna McMaster who led the transition from E-Store, Peter Malone, Melinda Crole, Sheila McHale and Lisa Giacomelli during this period of significant change, effectively governing a start-up business. They serve with passion and dedication with the success of the Movement at heart. I would also like to acknowledge and thank directors who retired during the year; Edmund Wong, for his 5 years of service, and Stephen Ellich. I would also like to acknowledge the significant effort and contribution of the executive team led by Glyn.
OUR CEO It’s with great pleasure that I provide this leadership message on the management of Y Services over the past 12 months. I was excited to be appointed as CEO in January 2019, taking over from Mark Sargent, our former CEO, whom we farewelled at our 2018 AGM and thanked for his significant contribution of 14 years of service. Over the 2018/2019 financial year, E-Store has undergone a number of changes with a refreshed Board and new staffing teams. We are now Y Services, with expanded service offerings in Merchandising, Safeguarding and Procurement and have commenced investigations into the provision of Support Services. It has been a year of change, challenges and rewards with foundations being laid for new and innovative ways of working as a collective of YMCAs. We are driven by the opportunity to work with all Ys to improve the outcomes we can achieve by aggregating the investments we make in goods and services. Our achievements during the second half of the year include: • the recruitment of excellent people in our core services areas to lead and implement new services; • investment into our back office to re-align how we deliver and communicate to the movement; • reduction of our operating costs through relocating our offices and warehouse; and • continuing to work with Y Australia to further improve efficiencies, including sharing Governance, Project Management Office (PMO), Communications and Executive Assistance resources. As the Movement continues to explore its relevance in today’s communities, as a customer facing social enterprise, we will continue to work with Ys across Australia, as the Y’s national service provider. We will assist in unlocking our true potential and ensure the products and services we provide are relevant, good value, ethically sourced and highly desirable. We remain committed to listening and working alongside all YMCAs across Australia now and into the future as we build and reimagine how we work together. We look forward to a successful future, working together as one Y. I would like to thank many leaders around the Movement for their shared commitment and willingness to work in partnership and our shared goal of improving and strengthening the Y. I also gratefully acknowledge and thank our Board and staff for the incredible amount of work and commitment they continue to demonstrate in supporting the work we do at Y Services. I remain very proud and humbled by the work of our people who build and strengthen our Ys by assisting our Associations to deliver products and services to our customers every day. The work our team does is often not seen, but I’d like them to know it is genuinely appreciated by me and those they support and serve.
Glyn Davies, CEO Y Services
Y Services will continue to help drive building a strong Y brand and the benefits of aggregated scale through our Procurement program. We will support and lead the Movement’s commitment to safeguarding children and young people. We will continue to explore the delivery of Support Services benefits. Above all, we are your Y Services, your national service provider, committed to supporting Ys in Australia to focus on their core purpose - “We believe in the power of inspired young people’.
Richard Nedov, Chair, Y Services
Y Services / Annual Report 2019
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Y SERVICES DONATES Each year along side volunteers from YMCA Victoria and the YMCA Disability Services staff, Recwest hosts the annual All Abilities Basketball Day, an event highlighting the excellent ongoing improvements in the Recwest teams abilities. It is also a wonderful opportunity for the staff from the Vic State Office to create friendships, teach, encourage and engage with the players. Y Services was happy to support this great cause by donating YMCA sports bags to all participants. “When the State Office staff handed out the sports bags at the end of the game, the smiles and gratitude from the Recwest players were wonderful and truly rewarding.� - Leeann de Vissor, Vic State Office Finance Team.
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Y Services / Annual Report 2019
BOARD OF DIRECTORS MR. RICHARD NEDOV, CHAIR Richard is an experienced Senior Executive and Director in infrastructure/resources/services and government with a proven track record in business turnaround roles, business improvement, project and business governance and driving operational and cultural change. Currently a Non-Executive Director and leading a Strategic, Leadership Consulting Practice with strong operational focus, and Advisory and Interim Executive business. Richard provides executive support in business turn around; acquisitions and divestment; governance; commercial management; leadership, mentoring, diversity and inclusion. Working in Government, Utilities and Infrastructure. Richard is currently Chair YMCA Services, Non-Executive Director YMCA Australia, Chair Active Group of Companies, and Director of Ducit Management. He is also a keen mentor both with Sydney University and “Rare Birds”.
MS. LISA GIACOMELLI Lisa has over 25 years’ experience in the human services sector with extensive experience in Senior Leadership roles in strategy and operations in a broad range of commercial and community business lines. Much of Lisa’s experience was gained in the government sector where she was known for innovation and commercial implementation in local government over a career spanning 15 years. Lisa assumed the role of Chief Operating Officer of YMCA NSW in October 2018 after a successful tenure as Chief Risk Officer. As COO, she leads service delivery, health and safety, quality and assurance, product development, growth and customer experience, innovation and project delivery. Key experiences in Lisa’s time at YMCA NSW include developing and implementing the organisation’s risk management framework, leading an uncompromising culture of child safety, championing a multifaceted growth agenda and driving operational excellence.
MR. PETER MALONE Peter Malone has served the YMCA at local, National and International levels in varying key roles throughout his engagement. Peter is the current Chair of the Constitution Committee of APAY, current Chair of the Licensing and Member Development Sub-committee and is a member of the International Committee. Peter recently retired as a long term Director with YMCA of Bendigo and YMCA Australia. Peter commenced his involvement with the Y as a board Director many years ago going on to serve the organization as an interim CEO. Peter brings to the table significant skills in organizational development, project management, correctional behaviour as well as an extensive knowledge of the brand and associated intellectual property.
Photos: (L) Y Services Board, missing Sheila McHale, and (R) Y Services Board with Y Australia and Senior Executives.
MS. MELINDA CROLE Melinda is the National CEO of the YMCA in Australia appointed in November 2016, after over 10 years serving the YMCA. Prior to being appointed National CEO, she was Executive Manager, Licensing and Development for YMCA Australia. Throughout her career, Melinda has had the opportunity to work across many general areas of operational and strategic management including direct business planning, human resource management, financial management and risk management in a national not-for-profit/ community environment. Melinda serves on several NFP boards and her formal qualifications include a Bachelor of Science (Biotechnology), Graduate Certificate in Management, a Diploma of Social Science and is a graduate and member of the Australian Institute of Company Directors.
MS. SHEILA MCHALE Sheila is an experienced Non-Executive Director and former Chief Executive Officer with demonstrated expertise working across numerous spheres of industry including the community, government and political spheres. Sheila is a strategic thinker, and strong leader, with substantial experience and skills in governance, crisis management, and strategy. Formerly a State Minister in the WA Parliament. Sheila is Chairman, WA Return, Recycle, Renew Ltd, Vice Chair, YMCA WA, Member of the Botanic Gardens and Parks Authority, State Councillor, Governance Institute of Australia WA, NonExecutive Director Y Services (Melbourne). Sheila graduated with honours from Nottingham University (UK) and has a Post Graduate Diploma from Curtin University of Technology. She is also a fellow of the Australian Institute of Management WA, fellow of the Governance Institute of Australia, and graduate of the Australian Institute of Company Directors.
MS. DONNA MCMASTER Donna has extensive experience in senior executive and strategic roles within public & private retail companies. These include Coles Myer, Lend Lease and SAVERS Australia Pty Ltd where she served as Managing Director. Her broad commercial experience includes strategic planning, product development, brand acquisitions, merchandise planning & production, marketing, retail and human resource management, leasing and property development. Donna serves on multiple Boards and is currently a Non-Executive Director of Gale Pacific Ltd; the Deputy Chair & Non-Executive Director of YMCA Services Pty Ltd as well as Chair of the Governance & HR Committee and a Non Executive Director of Dandenong Market Pty Ltd. She was previously Chair of a School Education Board for 5 years. Donna is an inaugural winner of the Telstra Business Women of the Year Award (private sector). She has an Executive MBA and has completed Strategic Planning and Retail Leadership programs at Monash and Deakin Universities and is a Graduate & current Member of the Australian Institute of Company Directors.
Y Services / Annual Report 2019
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THE JOURNEY OF Y SERVICES When the Movement decided that “by collectively working together - we’re all going to benefit” that’s when Y Services was established. Following the November 2018 AGM, E-store was repurposed to Y Services, with the consolidation of Y Merchandise, the newly established National Safeguarding Unit, Procurement and Support Services coming under the Y Services banner. Y Services is led by the highly skilled Y Services Board, and a team of subject matter experts and includes multiple working groups from across the Movement. Y Services was founded by Ys in Australia - for Ys in Australia. Our journey is about uncovering the best ways to mobilise resources, to enable Ys across Australia to explore innovative opportunities for future expansion. We act on behalf of our Y members to benefit our Y members.
Working as one Y Collectively we are stronger. As the Y Movement continues to explore its relevance in today’s society, as a customer facing social enterprise, we will continue to work in collaboration with Ys across Australia to unlock our true potential and ensure the products and services we provide are relevant and highly desirable.
Y Merchandise We are now doing things differently with Y Merchandise, positioning ourselves at the forefront of innovation and excellence,
National Safeguarding Unit Our National Safeguarding Unit is committed to supporting the Movement to ensure all children and young people are safe, by doing work no one Y can do on its own - such as developing shared policies, training,
driving us to ensure that
research and resources and providing
best practice builds our
high quality advice to ensure we remain
Y brand, purchasing better quality and ethically sourced products at reasonable prices, with all profits continuing to remain within the Y.
uncompromising in our commitment to ensure all children and young people are safe – and thrive. An inspired young person grows most easily from the foundations of a safe childhood. We strive to ensure all children and young people are safe and feel safe, valued, heard and respected at the Y, in their families and their communities. A young person can only feel inspired if they are safe.
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Y Services / Annual Report 2019
(L) Y Services staff at Essendon Fields, and (R) Y Services – Merchandising staff at the Boronia warehouse.
Support Services
Procurement
Y Services works together with member Ys - to benefit Ys across Australia. Together, we’re exploring opportunities to enhance evolutionary pathways for ‘support services’ and developing key priorities that underpin a support services function.
The value proposition of Procurement is best practice, capacity building, risk reduction, reputation protection, access to higher quality services, and aggregating and scaling that secures good value and releases funds back to Member Associations through purchasing scale and efficiencies.
Future Focus The future is looking bright for Ys in Australia, as we continue to collaborate together and enjoy collective benefits that go beyond financial benefits, including safeguarding children best practice, capacity building, good value, quality ethically sources products and brand protection. The Y believes in the power of inspired young people. Y Services / Annual Report 2019
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Y 175 POLOS This August over 3,000 YMCA delegates and volunteers from over 100 countries gathered in London to celebrate a significant milestone for the Y - the 175th birthday global gathering Y175. Y Services were proud to get involved by providing custom polos and pins for the event. “The shirts looked amazing and everyone loved theirs, without fail. The indigenous theme was so popular that several people requested if they could buy one and many countries wanted to swap with us!” - Melinda Crole, National CEO, Y Australia The artwork was designed and donated by an inspiring young indigenous artist in QLD Chern’ee Sutton.
CURRENT SHAREHOLDINGS
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The National Council of Young Men’s Christian Associations of Australia
1914
The State Council of Young Men’s Christian Associations of Queensland
75
The Young Men’s Christian Association of Ballarat
225
The Young Men’s Christian Association of Brisbane
640
The Young Men’s Christian Association of Canberra Inc
100
The Young Men’s Christian Association of Geelong Inc
10
The Young Men’s Christian Association of Hobart Inc
10
The Young Men’s Christian Association of Inner North East Adelaide Inc
10
The Young Men’s Christian Association of Northern Territory Ltd
80
The Young Men’s Christian Association of Sydney Inc
230
The Young Men’s Christian Association of Victoria Inc
500
The Young Men’s Christian Association of Western Australia Inc
200
The Young Men’s Christian Association of Whittlesea Inc
63
The Young Men’s Christian Association of South Australia Inc
78
Total
4135
Y Services / Annual Report 2019
56%
SALES PERFORMANCE
44%
YMCA BRANDS* VS PARTNER BRANDS
TOTAL SALES
$2,910,098
*Sale of YMCA Brands vs Partner Brands sold at Y Centres
ANCILLARY
APPAREL
CUSTOMISED
MERCHANDISE
$48,245
$123,387
$270,713
$148,665
PARTNER BRANDS
SPORTING GOODS
UNIFORM
$1,290,416
$90,267
$331,137
$607,269 Y Services / Annual Report 2019
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FINANCIAL REPORT DIRECTOR’S REPORT
The directors present their report together with the financial statements for YMCA Services Pty Ltd for the financial year ended 30 June 2019. DIRECTORS The names of the directors in office at any time during or since the end of the year are: Richard Nedov ( Chair )
Donna McMaster
Edmund Wong – Resigned Aug 19
Celia Ruane – Resigned Oct 18
Melinda Crole
Peter Malone
Shona Eland – Resigned Nov 18
Lisa Giacomelli
Sheila McHale
Stephen Ellich – Resigned Apr 19
Michelle Shepherd – Resigned Nov 18
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. REVIEW OF OPERATIONS The profit of the company for the financial year amounted to $93,732 (2018 - $165,582). SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS On the 23rd October 2018 the Company changed its name to YMCA Services Pty Ltd to better reflect the change of its structure to include commencement of a National Procurement business unit in January 2019, and future development of a National Safeguarding Unit and potential future Shared Services Unit. PRINCIPAL ACTIVITIES The Company added to its role as the merchandising arm of YMCA Associations, with the addition of the National Procurement operation in January 2019, followed by development work on a National Safeguarding Unit and Shared Services Unit. EVENTS SUBSEQUENT TO THE END OF THE REPORTING PERIOD No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Company, the results of those operations, or the state of affairs of the company in future financial years. LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS The introduction of the National Procurement Unit, is being followed by the commencement of the National Safeguarding Unit in the first Quarter of 2019/20, with further investigation of potential development opportunities in the ‘Shared Services’ area. It is not expected that these new business units will have a material impact on the 2019/20 financial result of the Company. DIVIDEND The Company Directors elected to not declare a Dividend to Shareholders during the period 01 July 2018 to 30 June 2019. AUDITOR’S INDEPENDENCE DECLARATION A copy of the auditor’s independence declaration is set out on page 13. This Directors’ Report is signed in accordance with a resolution of the Board of Directors:
Director Richard Nedov Dated this 24th day of October 2019.
12
FINANCIAL REPORT AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 & THE AUSTRALIAN CHARITIES AND NOT-FOR-PROFIT COMMISSION ACT 2012
TO THE DIRECTORS OF YMCA SERVICES PTY LTD As lead auditor of YMCA Services Pty Ltd for the year ended 30 June 2019, I declare that, to the best of my knowledge and belief, there have been: (1)
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
(2)
no contraventions of any applicable code of professional conduct in relation to the audit.
BDO East Coast Partnerships Chartered Accountants
RICHARD DEAN Partner Dated this 24th day of October 2019.
DIRECTORS’ DECLARATION FOR THE YEAR ENDED 30 JUNE 2019 In accordance with a resolution of the directors of YMCA Services Pty Ltd, the directors have determined that the company is not a reporting entity and that this special purpose financial report should be prepared in accordance with the accounting policies described in Note 1 to the financial statements. The directors of the company declare that: 1.
The financial statements and notes, as set out on pages 6 to 17 are in accordance with the Australian Charities and Not for Profit Commission Act 2012 and: a. comply with Australian Accounting Standards; and
b.
2.
In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.
give a true and fair view of the company’s financial position as at 30 June 2019 and of its performance for the year ended on that date in accordance with the accounting policies described in Note 1 to the financial statements.
Director Richard Nedov Dated this 24th day of October 2019.
13
STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 30 JUNE 2019 Notes
2019 $
2018 $
2
3,612,441
3,264,587
Employee benefits expense
(868,644)
(558,586)
Freight & cartage
(51,592)
(70,092)
Depreciation and amortisation expenses
(7,783)
(8,686)
Auditor’s remuneration
(13,700)
(7,650)
Net fair value movement for financial assets held for trading
(7,893)
(12,654)
(2,569,097)
(2,441,337)
93,732
165,582
Other Comprehensive Income
-
-
Total Comprehensive Income
93,732
165,582
Notes
2019 $
2018 $
Cash and cash equivalents
6
469,574
493,997
Trade and other receivables
7
2,575,131
314,873
Inventories
8
577,346
747,156
Financial assets held for trading
9
-
388,086
1,396
2,063
3,623,447
1,946,175
45,551
32,480
45,551
32,480
3,668,998
1,978,655
Revenue
Other Expenses Profits from Operations
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019
ASSETS CURRENT ASSETS
Prepayments TOTAL CURRENT ASSETS NON-CURRENT ASSETS Plant and equipment
10
TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and other payables
11
1,858,022
318,872
Provisions
12
74,104
35,962
1,932,126
354,834
46,103
26,784
46,103
26,784
TOTAL LIABILITIES
1,978,229
381,618
NET ASSETS
1,690,769
1,597,037
314,500
314,500
Retained Earnings
1,376,269
1,282,537
TOTAL EQUITY
1,690,769
1,597,037
TOTAL CURRENT LIABILITES Provisions
12
TOTAL NON CURRENT LIABILITIES
EQUITY Issued Capital
14
13
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2019 Note
Issued
Retained
Capital
Earnings
Total
Ordinary $
$
$
314,500
1,200,116
1,514,616
Profit attributable to members
-
165,582
165,582
Other comprehensive income
-
-
-
(83,161)
(83,161)
314,500
1,282,537
1,597,037
Profit attributable to members
-
93,732
93,732
Other comprehensive income
-
-
-
-
(83,161)
(83,161)
314,500
1,376,269
1,690,769
Balance at 1 July 2017
Transactions with owners in their capacity as owners Dividends paid or provided for Balance at 30 June 2018
Transactions with owners in their capacity as owners Dividends paid or provided for Balance at 30 June 2019
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2019 Notes
2019 $
2018 $
Receipts from customers
2,303,246
3,338,023
Payments to suppliers and employees
(2,694,397)
(3,349,714)
(391,151)
(11,691)
(20,854)
(3,726)
-
(388,086)
Redemption of financial assets
387,582
-
Net cash provided by /(used in) in investing activities
366,728
(391,812)
Dividend Paid
-
(83,161)
Net cash used in financing activities
-
(83,161)
Net decrease in cash held
(24,423)
(486,664)
Cash at beginning of financial year
493,997
980,661
469,574
493,997
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash used in operating activities
15
CASH FLOWS FROM INVESTING ACTIVITIES Payment for plant and equipment Investment in financial assets
CASH FLOWS FROM FINANCING ACTIVITIES
Cash at end of financial year
6
15
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES YMCA Services Pty Ltd is a company limited by shares, incorporated and domiciled in Australia. Basis of Preparation The directors have prepared the financial statements on the basis that the company is a non-reporting entity because there are no users dependent on general purpose financial statements. The financial statements are therefore special purpose financial statements that have been prepared in order to meet the requirements of the Australian Charities and Not for Profit Commission Act 2012. The company is a not- for-profit entity for financial reporting purposes under Australian Accounting Standards. The financial statements have been prepared in accordance with the mandatory Australian Accounting Standards applicable to entities reporting under the Australian Charities and Not for Profit Commission Act 2012 and the significant accounting policies disclosed below, which the directors have determined are appropriate to meet the needs of members. Such accounting policies are consistent with the previous period unless stated otherwise. The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs unless otherwise stated in the notes. The amounts presented in the financial statements have been rounded to the nearest dollar. The financial statements were authorised for issue on the 24th day of October 2019 by the directors of the company. New or amended Accounting Standards and interpretations adopted. The company has adopted all of the new or amended accounting standards and interpretations that are mandatory for the current period. AASB 9 Financial Instruments and its consequential amendments This standard introduces new classification and measurement models for financial assets, using a single approach to determine whether a financial asset is measured at amortised cost or fair value. Financial assets will either be measured at amortised cost, fair value through other comprehensive income (FVTOCI) or fair value through profit or loss (FVTPL). The entity has financial assets classified as held for trading and reclassify these into the fair value through profit or loss category. The adoption of the standard on 1 July 2018 has had no impact on the measurement or recognition of the company’s financial assets or liabilities. Accounting Policies a.
b.
c.
d.
Income Tax The company was granted endorsement of a Charitable Institution to Income Tax Exempt Status effective from 1 July 2005 by the Australian Taxation Office on 18 November 2011. Consequently, income tax expense is not applicable. Inventories Inventories are measured at the lower of cost and net realisable value. Costs are assigned on the basis of weighted average costs. Plant and Equipment Each class of plant & equipment is carried at cost less, where applicable, any accumulated depreciation. The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. Depreciation The depreciable amount of all fixed assets is depreciated on a straight line basis over their useful lives to the entity commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. Plant and equipment is depreciated at rates between 7.4% - 37.5%. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.
16
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 e.
Impairment of Assets At each reporting date, the entity reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over it recoverable amount is expensed to the income statement.
f.
Employee Benefits Provision is made for the company’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 those benefits.
g.
Provisions Provisions are recognised when the company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will results and that outflow can be reliably measured.
h.
Cash and Cash Equivalents Cash and cash equivalents includes 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. Financial instruments Initial recognition and measurement Financial assets are recognised when the entity becomes a party to the contractual provisions of the instrument. For financial assets, this is the equivalent to the date that the Company commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted). Financial instruments are initially measured at fair value plus transactions costs, except where the instrument is classified ‘at fair value through profit or loss’ in which case transaction costs are expensed to profit or loss immediately.
i.
Classification and subsequent measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest rate method, or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. The classification of financial instruments depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and at the end of each reporting period for held-to-maturity assets. The Company does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the requirements of accounting standards specifically applicable to financial instruments. (i) Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss are held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit. Fair value movements are recognised 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. Loans and receivables are included in current assets, except for those which are not expected to mature within 12 months after the end of the reporting year. Financial assets at amortised cost If there is objective evidence that an impairment loss on financial assets carried at amortised cost has been incurred, the amount of the loss is measured as the difference between the assets’ carrying amount and the present value of the estimated future cash flows discounted at the financial assets original effective interest rate.
17
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 j.
Revenue Revenue from the sale of goods is recognised upon the delivery of goods to customers. Procurement services revenue is recognised as the services are provided. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. Dividend revenue is recognised when the right to receive a dividend has been established.
k.
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. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST. Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.
l.
New Accounting Standards for Application in Future Periods Australian accounting standards and interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the company for the annual reporting period ended 30 June 2019. The company’s assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the company, are set out below. AASB 15 Revenue from Contracts with Customers Applicable to annual reporting periods beginning on or after 1 January 2018. As the Company currently recognises revenue for sale of goods to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, no change to revenue recognition will occur. It is anticipated that revenue from procurement services will continue to be recognised as the services are rendered. AASB 16 Leases This standard is applicable to annual reporting periods beginning on or after 1 January 2019. The standard replaces AASB 117 ‘Leases’ and for lessees will eliminate the classifications of operating leases and finance leases. The Company will adopt this standard from 1 July 2019 but the impact of its adoption is yet to be assessed.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 Note
2019 $
2018 $
- Sale of goods
2,911,137
3,034,620
- Procurement operations
502,999
-
- Interest received
1,869
3,020
- Dividends received
8,341
14,858
3,424,346
3,052,498
- Sponsorship & rebate income
188,095
212,089
Other Revenue
188,095
212,089
3,612,441
3,264,587
NOTE 2: REVENUE a. Sales Revenue:
Other Revenue
Total Revenue NOTE 3: RESULT FOR THE YEAR Included in the yearly results are; Expenses - Cost of sales
2,028,882
2,190,883
- Operating leases
89,714
74,263
- Contributions to defined Superannuation funds
67,149
56,946
-
12,654
- Net fair value movements for financial assets held for sale
NOTE 4: ECONOMIC DEPENDENCE YMCA Services Pty Ltd is dependent on YMCA Associations for the majority of its revenue used to operate the business.
NOTE 5: AUDITORS’ REMUNERATION Remuneration of the auditor - Auditing or reviewing the financial report
13,700
7,650
- Cash at bank and in hand
211,656
296,065
- Short-term bank deposits
257,918
197,932
469,574
493,997
Cash and cash equivalents
211,656
296,065
Short-term bank deposits
257,917
197,932
469,573
493,997
NOTE 6: CASH AND CASH EQUIVALENTS
Reconciliation of cash Cash at the end of the financial year as shown in the cash flow statement is reconciled to items in balance sheet as follows:
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 NOTE 7: TRADE AND OTHER RECEIVABLES
2019 $
2018 $
2,549,837
297,890
25,294
16,983
2,575,131
314,873
577,346
747,156
577,346
747,156
-
388,086
-
388,086
Plant & Equipment at cost
218,716
197,863
Accumulated depreciation
(173,165)
(165,383)
45,551
32,480
Opening Balance
32,480
37,440
Additions
20,854
3,726
Disposal
-
-
Depreciation expense
(7,783)
(8,686)
Closing Balance
45,551
32,480
205,811
255,723
1,602,398
25,544
CURRENT Trade Receivables Accrued Income
NOTE 8: INVENTORIES CURRENT - Finished goods at cost
NOTE 9: OTHER FINANCIAL ASSETS CURRENT ASSETS Financial assets at fair value through profit or loss
NOTE 10: PLANT & EQUIPMENT
NOTE 10a: MOVEMENTS IN CARRYING AMOUNTS Movement in the carrying amounts for each class of plant and equipment between the beginning and the end of the current financial year
NOTE 11: TRADE AND OTHER PAYABLES CURRENT Trade payables Sundry payables and accrued expenses Payroll expenses
49,813
37,605
1,858,022
318,872
74,104
35,962
46,103
26,784
314,500
314,500
NOTE 12: PROVISIONS CURRENT Employee benefits NON CURRENT Employee benefits NOTE 13: ISSUED CAPITAL 4,135 (2015: 4,135) fully paid ordinary shares
Ordinary shares participate in dividends and the proceeds on winding up of the entity in proportion to the number of shares held. At the shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 Note
2019 $
2018 $
- not later than 12 months
81,984
75,897
- between 12 months and five years
119,288
-
201,272
75,897
93,732
165,582
7,783
8,686
504
-
(2,251,947)
85,737
667
2,782
169,810
(167,460)
1,539,150
(102,496)
(Increase)/decrease in Accrued Income
(8,311)
2,657
Increase/(decrease) in provisions
57,461
(7,179)
(391,151)
(11,691)
NOTE 14: CAPITAL AND LEASING COMMITMENTS Operating Lease commitments Non-cancellable operating leases contracted for but not recognised in the financial statements: Payable - minimum lease payments:
NOTE 15: CASH FLOW INFORMATION Reconciliation of cash flow from Operations with Profit: Profit Non-cash flows in profit Depreciation Fair value loss on financial asset Changes in assets and liabilities (Increase)/decrease in trade and other receivables (Increase)/decrease in Prepayments (Increase)/decrease in inventories Increase/(decrease) in trade and other payables
NOTE 15: COMPANY DETAILS The registered office of the Company and the principal place of business is: Level 1, 3 Bristol Street, Essendon Fields Vic 3041
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INDEPENDENT AUDITOR’S REPORT To the members of YMCA Services Pty Ltd Report on the Audit of the Financial Report Opinion We have audited the financial report of YMCA Services Pty Ltd (the registered entity), which comprises the statement of financial position as at 30 June 2019, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial report, including a summary of significant accounting policies, and the directors’ declaration. In our opinion the accompanying financial report of YMCA Services Pty Ltd, is in accordance with Division 60 of the Australian Charities and Not-forprofits Commission Act 2012, including: (i) Giving a true and fair view of the registered entity’s financial position as at 30 June 2019 and of its financial performance for the year then ended; and (ii) Complying with Australian Accounting Standards – Reduced Disclosure Requirements and Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the registered entity in accordance with the auditor independence requirements of the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act) and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other information Those charged with governance are responsible for the other information. The other information obtained at the date of this auditor’s report is information included in the registered entity’s directors’ report, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of directors for the Financial Report The directors of the registered entity are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the ACNC Act, and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In preparing the financial report, directors are responsible for assessing the registered entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the registered entity or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the registered entity’s financial reporting process. Auditor’s responsibilities for the audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website (http:// www.auasb.gov.au/Home.aspx) at: http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf This description forms part of our auditor’s report. BDO East Coast Partnership
Richard Dean Partner Melbourne, 24 October 2019
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Tel: +61 3 9603 1700
Collins Square, Tower Four Level 18, 727 Collins Street Melbourne VIC 3008 GPO Box 5099 Melbourne VIC 3001 Australia
Fax: +61 3 9602 3870 www.bdo.com.au
The Directors YMCA E-Store Pty Ltd Unit 2 13-15 Hi Tech Court KILSYTH VIC 3137 22 October 2019 Dear Directors, NET ASSETS In accordance with your request, we provide the following details regarding the net assets per share of YMCA Services Pty Ltd as at 30 June 2019. The information has been based on the audited financial report of YMCA Services Pty Ltd for the financial year ended 30 June 2019. The audited net assets at 30 June 2019 Number of shares on issue as per ASIC records - Ordinary shares
$ 1,690,769
Net assets per share at 30 June 2019
4,135 $
408.89
This net asset balance does not include provision for dividends, the last dividend paid that has been reflected in the financial report was paid in July 2017. Yours Faithfully BDO East Coast Partnership
Richard Dean Partner BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.
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Y Services Pty Ltd. (03) 8799 0000
www.ymcagear.com.au
YMCAGearAU
ymca_gear
YMCA SERVICES
YMCAGear
Annual Report 2019