financial report Saving lives through first aid
St John Ambulance Australia (NSW)
St John Ambulance Australia (NSW) and controlled entity ABN 84 001 738 370 Financial Report For the year ended 31 December 20
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ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370
TABLE OF CONTENTS
Directors’ Report .................................................................................................................. 1 Statement of Financial Position ............................................................................................ 8 Statement of Profit or Loss and Other Comprehensive Income ............................................. 9 Statement of Changes in Equity ......................................................................................... 10 Statement of Cash Flows ................................................................................................... 11 Notes to the Financial Statements ...................................................................................... 12 Directors’ Declaration ......................................................................................................... 32 Directors’ Declaration Under the Charitable Fundraising Act ............................................... 33 Auditor’s Independence Declaration ................................................................................... 34 Independent Auditor’s Report ............................................................................................. 35
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 DIRECTORS’ REPORT
The Directors present their financial report for St John Ambulance Australia (NSW) (“the Company” or “St John”) and its controlled entity, which are together referred to in this report as (“the Group”), for the year ended 31 December 2020. The Company is an entity limited by guarantee with no share capital under the provisions of the Australian Charities and Not-for-profits Commission Act 2012. Our Mission Our mission is to save lives and build community resilience. For over 135 years, St John has been a visible and reassuring presence throughout communities across NSW. Through fires, floods, and pandemics, we have stepped forward to provide safety and aid to people who need it most. We believe that every Australian should have access to responsive healthcare and wellbeing support when and where they need it. Everything St John does is ultimately directed towards our mission and supporting the communities of NSW. Strength in Adversity It is an understatement to say that 2020 was a year we never expected. We endured natural disasters which ravaged communities, and a global pandemic that impacted many areas of our lives. 2020 tested our resolve, our willingness to change, and reshaped how we live and work. As an organisation, there was a lot we learnt from the challenges we experienced. We learnt that our strength lay in our people and their commitment to St John. We learnt that our organisation’s values mattered more than ever as we explored how we could best support our communities. We learnt that we could be agile and transform to meet the needs of our stakeholders. While 2020 was fraught with uncertainty and instability, St John continued to prove that we could, and would, rise to meet the challenge. x
Supporting bushfire affected communities
Through the state’s worst bushfire season on record, more than 402 skilled St John volunteers were deployed, providing a total of 23,506 hours of state-wide critical emergency support in 33 evacuation centres, four staging areas, three fire base camps and both the RFS Emergency Operations and Police Information centre. Our members supported communities in hard hit regions including Batemans Bay, Bega, Wagga Wagga, Cooma, Kempsey, Grafton and Glen Innes, providing essential medical support at evacuation centres that were visited by up to 4,000 evacuees. x
Supporting the NSW Health COVID-19 response
St John partnered with NSW Health throughout the COVID-19 pandemic, providing medical and logistical support at quarantine hotels, COVID testing clinics and transport hubs across the state. Our members stepped forward when they were needed to help support the NSW community through the COVID-19 crisis. During 2020 St John members provided 75,897 hours of frontline COVID-19 support to NSW Health completing 9,579 shifts and supporting the testing and screening of an estimated 2,394,750 NSW residents at over 67 locations across the state.
1
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 DIRECTORS’ REPORT (continued)
The COVID pandemic impacted the employment of a significant number of people across the country. St John onboarded more than 400 additional staff in 2020 to assist with our COVID-19 deployment including a significant number of St John volunteer members whose ordinary employment was impacted by the pandemic and over 200 former QANTAS staff whose industry was hit particularly hard by COVID-19. In 2021 we continue to support NSW communities on the road to recovery out of the pandemic. Agility & Responsiveness 2020 was a challenging year for our traditional operating business, the pandemic and Government public health measures significantly impacted our traditional income streams with lockdowns and social distancing regulations resulting in material declines in our first aid training and event health services businesses. Throughout 2020 we have continually adapted and transformed our programs to ensure they continue to meet the needs our stakeholders. x
Training & Education
COVID-19 significantly impacted the way we delivered first aid training. We introduced rapid changes to ensure we could continue providing accredited training to essential frontline workers who required a current first aid certificate. Our training operations developed a range of strategies including smaller class sizes, strict social distancing, efficient assessment methods, and online training modules. x Mental Health We continued developing our mental health offering with a virtual option introduced in 2020, ensuring our training could be accessed throughout COVID-19. It has proven to be a long-term solution allowing us to provide mental health training to remote or rural communities, organisations who operate across multiple sites, and people who prefer to learn in an online setting. x Community Education As part our mission to educate the wider community, we released a series of free online first aid resources. More than 2,500 people received access to our 30-minute online modules – Infection Control, Mental Health & Working from Home. We also launched a series of weekly first aid conversation via Facebook live. These sessions were hosted by a first aid trainer or topic expert and covered defibrillators, asthma, CPR, first aid for children and babies, and how to choose the right first aid kit. More than 188,000 people watched, shared, or engaged with the series over 6 months. x
Mental Health Training for NSW Firefighters
In June 2020, St John partnered with the NSW Rural Fire Service Association (RFSA) to offer mental health first aid to over 1,000 NSW volunteer firefighters. The St John mental health course taught volunteer firefighters essential skills to recognise a range of mental health issues and the confidence to help their colleagues, family and friends. x
Event Health Services
With events in 2020 predominately cancelled, we shifted our focus towards reinvesting in our organisation. Our Divisions responded quickly to the restraints COVID-19 placed on St John by adapting to online training, deploying rapidly to support NSW Health and by supporting the community in new ways. By expanding on our capabilities, fleet, and equipment, our Divisions will be better able to support communities across NSW.
2
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 DIRECTORS’ REPORT (continued) x
First Aid in Schools
Our First Aid in Schools program equips children in primary school (7-12 years old) with vital lifesaving skills. In 2020 we developed a series of first aid videos aimed at teaching children how to manage first aid situations including asthma, minor burns, an unconscious person, and an allergic reaction. These videos will be launched to NSW schools in 2021. x
Youth Programs
We provide fun, safe and supportive opportunities for young people to develop their skills, engage in the provision of community first aid services, and earn proficiency badges and awards. In 2020 our Youth Programs shifted online allowing our Cadets to continue their learning, friendships and skills development.
Diversification We continue to focus on increasing diversification across our income streams and our fundraising channels. 2020 has highlighted how unforeseen events such as the sudden emergence of COVID-19 can significantly disrupt the financial performance of our traditional operations. During 2020 our deliberate approach to diversification has delivered a number of new income streams. x
Corporate Health Services
In 2020, we expanded our corporate health service offering to meet the needs of NSW workplaces during COVID-19. We introduced a range of specialised programs in workplace health and medical needs including temperature screening programs, workplace assessment programs and COVID-19 incident response plans. x
Onsite Health Care Professionals
In early 2020, St John successfully won a competitive tender to provide paramedic services at key stations across the Sydney Trains network during peak commute times. This ensures that any customers who fall ill or sustain an injury are provided with high quality primary care when it is needed and minimises any delays across the network. x
Charitable Art Union
St John launched our first charitable art union “Cash that Counts” in October 2020 to raise much needed funding for operational assets to support communities across NSW. We look forward to developing this additional fundraising channel in the future, please see cashthatcounts.com.au for further details. Our diversification program has minimised the financial impact of COVID-19 on our organisation in 2020 despite the many challenges, we will continue to look for further diversification opportunities in what will be another challenging year ahead.
Financial Strength. Given the significant challenges presented by natural disasters and COVID-19, it is very pleasing to report that we have been able to achieve a surplus of $4.41 million for 2020, following on from the 2019 surplus of $306 thousand. This exceptional performance is a validation of the effort of every member of our organisation through what has been one of the most challenging years in recent history.
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ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 DIRECTORS’ REPORT (continued)
The surplus generated in 2020 will be reinvested into our organisation to deliver our social purpose. We recognise that our people (staff and volunteers) are our most important asset and investing in the training and development of them will be critical to our future success, we are also committed to investing in upgrading our operational fleet, equipment and systems to ensure St John remains a capable and reliable partner supporting NSW communities in times of crisis. We are committed to ensuring the long-term sustainability of St John and will continue to explore ways that we can grow and diversify our income streams.
Thank you To all of our stakeholders, we thank you for your continued support of St John in 2020. To our staff and volunteers whose dedication has helped keep communities right across NSW safe in 2020, we are incredibly proud of the work that you do, thank you for your passion, service and commitment. To our donors and supporters, we are honoured by your generosity. Your donations, grants and bequests directly support our community programs and volunteers, saving lives in communities across the state. To our corporate partners, your support enables us to fulfil our goal of saving lives and building community resilience. Every time you commit to working with St John to train staff in first aid, install a St John workplace first aid kit, buy a defibrillator, engage St John corporate health services, make St John products available for sale or support a St John division with goods or services, you help to deliver a greater impact to the NSW community. Directors Details The Directors of the Company at any time during or since the end of the year are: Name and qualifications
Board & Committee Membership
Sean McGuinness BCom (Fin/Acc), FCA, GAICD
Independent Non-Executive Director
Experience
Chair of the Board of Directors Member of the Honours and Awards Committee Member of the Audit, Risk & Investment Committee from February 2020
Sue Campbell-Lloyd AM AM, RN, CStJ
Independent Non-Executive Director
Chair of the Honours & Awards Committee
4
C-Suite executive with extensive listed and private company experience in Australia, Europe, United States and Asia, specialising in the areas of risk management, governance, M+A and finance strategy. Fellow of the Institute of Chartered Accountants Australia. Graduate of the Australian Institute of Company Directors. Director of St John Ambulance Australia. Experienced Non-Executive Director & Chairman - committed to supporting profit for purpose organisations. Extensive experience in public health policy and program management at state and national level, including the promotion and implementation of nationwide immunisation programs, HR, governance and risk management. Retired.
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 Name and qualifications
Board & Committee Membership
Associate Professor Jason Bendall OStJ BMedSc(Hons) MBBS MM(ClinEpi) PhD FANZCA FPA FANZCP GAICD
Commissioner and Director
Experience
Member of the Honours & Awards Committee Chair of the People, Clinical and Governance Committee
Scott McDonald BA, LLB, FAICD
Independent Non-Executive Director
Deputy Chair of the Board of Directors
Member of the Audit, Risk & Investment Committee
Joanne Muller BSc, DipEd, LLB
Independent Non-Executive Director (Resigned 31/01/2021) Member of the People & Governance Committee
Member of the Honours & Awards Committee
5
Specialist Anaesthetist. Prehospital and Retrieval Medicine. Emergency Medical Services & Paramedicine. First aid and resuscitation. Health Service Management. Volunteer management. Participates in teaching, departmental committees and research. Certified intensive care paramedic and an Adjunct Associate Professor in Paramedicine at Charles Sturt University and University of Sunshine Coast. Deputy Director of Training for St John Ambulance Australia. Deputy Chair of the Medical Advisory Panel. Represents St John on the Australian Resuscitation Council. Deputy Convenor (First Aid subcommittee) for the Australian & New Zealand Committee on Resuscitation. Legal Practitioner. Senior Member, NSW Civil & Administrative Tribunal, Consumer & Commercial Division. Facilitator, Australian Institute of Company Directors, Company Directors’ Course. Fellow, Australian Institute of Company Directors. Lead partner in the pro-bono practice and successfully run appeals involving human rights to the High Court of Australia. Legal Practitioner. Legal Member - Nursing and Midwifery Council of NSW. Director - Girl Guides NSW ACT NT. Child Safe Review Girl Guides Australia. Chair - Southern Metropolitan Cemeteries New South Wales. Member - Fundraising and Development Committee of the Board of Trustees Royal Academy of Dance – London. Occasional Lecturer - Macquarie University (Chiropractic). Guest Lecturer – University of New South Wales (Optometry). Member – Radiation Advisory Committee of NSW. Member - Curriculum Advisory Committee – RANZCR.
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 Name and qualifications
Board & Committee Membership
Coretta Bessi BCom, MBA, GAICD
Independent Non-Executive Director
Honorary Treasurer
Chair of the Audit, Risk & Investment Committee
Experience Chief Procurement Officer with experience across public, private and listed organisations. Graduate of the Australian Institute of Company Directors. Lecturer University of Wollongong / Sydney Business School (Procurement / Negotiations).
Member of the People & Governance Committee Stephen Woodhill BA, MComm, FCCPA, AFAMI, MAICD, MPRIA, CPM
Independent Non-Executive Director (Appointed 10/12/2020) Member of the Honours & Awards Committee from December 2020
Mick Campbell BSc, GAICD
Ajoy Ghosh BEng, MEM, GAICD
Member of the People, Clinical & Governance Committee from December 2020 Independent Non-Executive Director (Appointed 10/12/2020)
Member of the Audit Risk and Investment Committee from December 2020
Independent Non-Executive Director (Resigned 10/04/2020)
6
Experienced Chief Executive Officer. Extensive experience in corporate governance, issues and crisis management, government relations, investor relations, corporate & social responsibility, media relations and internal communication. Leadership experience in Not for Profit industry association and advocacy groups.
Internationally experienced CIO / IT Director of 20 years. Specialises in technology transformations and turnarounds. Industry experience includes Higher Education, Healthcare, Professional Services, Technology and Finance. IT Governance, cyber security and computer forensics expert. Senior member of the Australian Computer Society and member of its Cyber Security technical advisory committee. Fellow of the Australian Information Security Association. Graduate of the Australian Institute of Company Directors.
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 Meetings of Directors The number of directors’ meetings (including meetings of committees of directors) and number of meetings attended by each of the directors of the Company during the financial year are: Board Meetings
Sean McGuinness Scott McDonald Jason Bendall Coretta Bessi Sue Campbell-Lloyd Ajoy Ghosh Joanne Muller Mick Campbell Stephen Woodhill
Eligible to Attend 9 9 9 9 9 3 9 -
Directors Sean McGuinness Scott McDonald Jason Bendall Coretta Bessi Sue Campbell-Lloyd Ajoy Ghosh Joanne Muller Mick Campbell Stephen Woodhill
People, Clinical & Governance Committee Eligible to Attended Attend 3 3 3 3 3 3 -
Directors
Attended 9 9 9 9 9 1 9 -
Audit Risk & Investment Committee Eligible to Attended Attend 4 4 5 4 5 5 2 1 -
Honours and Award Committee Eligible to Attended Attend 3 3 3 2 3 3 3 3 -
Pandemic Response Committee Eligible to Attended Attend 3 3 3 3 3 3 3 3 -
During the year a Pandemic Response Committee was formed by the board to monitor and respond to the rapidly changing environment resulting from the COVID-19 pandemic. Events subsequent to Balance Date In December 2020, Ms Joanne Muller notified the Company of her intention not to seek re-election as a Director of the Company when her current term ended on 31 January 2021. The Board wish to thank Ms Muller for her service as a Director and her contribution to St John. Other than the matters detailed above, no other matters or circumstances have arisen which have significantly affected, or may significantly affect, the operations of the Company, the results of those operations or affairs of the Company in future financial periods.
Sean McGuinness Chairman Sydney, NSW 25 March 2021
Coretta Bessi Director
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ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020
Note
2020 $’000
2019 $’000
ASSETS Current assets Cash and cash equivalents Trade and other receivables Inventories Other assets
7 8 9 11
12,118 1,291 2,219 409
2,930 1,294 771 613
16,037
5,608
22,982 2,552 371 3,143 722
22,207 2,080 222 4,243 215
Total non-current assets
29,770
28,967
TOTAL ASSETS
45,807
34,575
4,561 687 96 1,209 5,174
1,245 611 105 1,090 618
11,727
3,669
294 2,301 10
228 3,556 10
2,605
3,794
TOTAL LIABILITIES
14,332
7,463
NET ASSETS
31,475
27,112
30,581 894
26,169 943
31,475
27,112
Total current assets Non-current assets Financial assets Property, plant and equipment Intangible assets Right-of-use assets Other assets
10 12 13 14 11
LIABILITIES Current liabilities Trade and other payables Employee Entitlements Provisions Lease liabilities Other liabilities
15 17 18 19 20
Total current liabilities Non-current liabilities Employee Entitlements Lease liabilities Other liabilities
17 19 20
Total non-current liabilities
EQUITY Accumulated funds Reserves
26
TOTAL EQUITY
The above statement of financial position should be read in conjunction with the accompanying notes. 8
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2020
Note Revenue Product sales revenue Training course fees revenue Medical support services Event fees revenue Donations and bequests Government grants Other grants Other revenue
5 4
Total revenue Income Other income Gain on sale of property, plant & equipment
4
Total other income Expenses Administration expenses Contribution to St John Ambulance Australia (National Office) Depreciation and amortisation Distribution expenses Employee expenses Finance costs Marketing expenses Property expenditure Training expenses Transport expenses Volunteer service expenses Other expenses Total expenses Surplus (deficit) before income tax Income tax Surplus (deficit) for the year
6
6
2020 $’000
2019 $’000
14,174 6,387 4,133 735 554 6,932 39 1,267
9,866 8,558 2,307 326 743 1,505
34,221
23,305
2,125 -
3
2,125
3
(1,906) (406) (2,006) (7,964) (13,335) (162) (776) (689) (439) (561) (640) (3,050)
(1,785) (406) (2,065) (4,742) (8,833) (113) (700) (878) (674) (751) (603) (1,452)
(31,934)
(23,002)
4,412
306
-
-
4,412
306
Other comprehensive income (deficit): Items that will not be reclassified to profit or loss: Changes in the fair value of equity instruments
(49)
Total comprehensive income (deficit) for the year
4,363
1,478 1,784
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes. 9
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED 31 DECEMBER 2020 Fair Value through Other Comprehensive Income Reserve $’000
Accumulated Funds $’000
Total $’000
25,801
25,266
-
62
62
Comprehensive income Surplus (deficit) for the year Other comprehensive income (deficit)
1,478
306 -
306 1,478
Total comprehensive income (deficit) for the year
1,478
306
1,784
Balance at 31 December 2019
943
26,169
27,112
Balance at 1 January 2020
943
26,169
27,112
Comprehensive income Surplus (deficit) for the year Other comprehensive income (deficit)
(49)
4,412 -
4,412 (49)
Total comprehensive income (deficit) for the year
(49)
4,412
4,363
Balance at 31 December 2020
894
30,581
31,475
Balance at 1 January 2019
(535)
Adjustment on the adoption of AASB 16 Leases
The above statement of changes in equity should be read in conjunction with the accompanying notes. 10
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020 2020 $’000
2019 $’000
33,310 (29,229) 7,524 977 (162) 12
22,027 (22,104) 1,069 1,279 (113) 64
Net cash flows from operating activities
12,432
2,222
Cash flows from investing activities Purchase of property, plant and equipment and intangible assets Funds invested
(1,414) (663)
(754) (1,755)
Net cash flows from (used in) investing activities
(2,077)
(2,509)
Cash flows from financing activities Repayment of lease liabilities
(1,167)
(1,616)
Net cash flows from (used in) financing activities
(1,167)
(1,616)
Net increase (decrease) in cash and cash equivalents
9,188
(1,903)
Cash and cash equivalents at the beginning of the financial year
2,930
4,833
12,118
2,930
Note Cash flows from operating activities Receipts from customers Payments to suppliers and employees Donations and grants received Dividends received Interest paid Interest received
Cash and cash equivalents at the end of the financial year
7
.
The above statement of cash flows should be read in conjunction with the accompanying notes. 11
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
1.
GENERAL INFORMATION The financial report includes the consolidated financial statements and notes of St John Ambulance Australia (NSW) (“the Company”) and its controlled entity (“the Group”). The Company is registered as a Company limited by guarantee. The financial statements were approved by the Board of Directors on 25 March 2021.The directors have the power to amend and reissue the financial statements.
2.
BASIS OF PREPARATION
(a)
Statement of compliance The Company and its controlled entity apply Australian Accounting Standards- Reduced Disclosure Requirements as set out in AASB 1053: Application of Tiers of Australian Accounting Standards and AASB 2010-2: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements. These financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Australian Charities and Not-for-profits Commission Act 2012. The Company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions.
(b)
Basis of measurement 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 financial assets. Rounding of amounts The company has applied the relief available to it under ASIC Corporations (Rounding in Financial/Director’s reports) Instrument 2016/191 issued by the Australian Securities and Investment Commission relating to the “rounding off” of amounts in the financial statements. Accordingly, the amounts presented in the financial statements have been rounded to the nearest thousand dollars ($'000) unless otherwise stated.
(c)
Critical accounting estimates and judgements The Directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Group. Key estimates Impairment - general The Group assesses impairment at the end of each reporting period by evaluation of conditions and events specific to the Group that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions.
12
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)
2.
BASIS OF PREPARATION (CONTINUED)
(c)
Critical accounting estimates and judgements (continued) Estimation of useful lives of assets The estimation of the useful lives of assets has been based on historical experience as well as manufacturers' warranties (for plant and equipment) and turnover policies (for motor vehicles). In addition, the condition of the assets is assessed at least once per year and considered against the remaining useful life. Adjustments to useful lives are made when considered necessary. Revenue from contracts with customers involving sale of goods When recognising revenue in relation to the sale of goods to customers, the key performance obligation of the Group is considered to be the point of delivery of the goods to the customer, as this is deemed to be the time that the customer obtains control of the promised goods and therefore the benefits of unimpeded access. Lease term The lease term is a significant component in the measurement of both the right-of-use asset and lease liability. Judgement is exercised in determining whether there is reasonable certainty that an option to extend the lease or purchase the underlying asset will be exercised, or an option to terminate the lease will not be exercised, when ascertaining the periods to be included in the lease term. In determining the lease term, all facts and circumstances that create an economical incentive to exercise an extension option, or not to exercise a termination option, are considered at the lease commencement date. Factors considered may include the importance of the asset to the Group's operations; comparison of terms and conditions to prevailing market rates; incurrence of significant penalties; existence of significant leasehold improvements; and the costs and disruption to replace the asset. The Group reassesses whether it is reasonably certain to exercise an extension option, or not exercise a termination option, if there is a significant event or significant change in circumstances. Incremental borrowing rate Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is estimated to discount future lease payments to measure the present value of the lease liability at the lease commencement date. Such a rate is based on what the Group estimates it would have to pay a third party to borrow the funds necessary to obtain an asset of a similar value to the right-of-use asset, with similar terms, security and economic environment. Lease make good provision A provision has been made for the present value of anticipated costs for future restoration of leased premises. The provision includes future cost estimates associated with closure of the premises. The calculation of this provision requires assumptions such as application of closure dates and cost estimates. The provision recognised for each site is periodically reviewed and updated based on the facts and circumstances available at the time. Changes to the estimated future costs for sites are recognised in the statement of financial position by adjusting the asset and the provision. Reductions in the provision that exceed the carrying amount of the asset will be recognised in profit or loss. Allowance for expected credit losses The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based on the lifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an overall expected credit loss rate for each group. These assumptions include recent sales experience and historical collection rates. Provision for impairment of inventories The provision for impairment of inventories assessment requires a degree of estimation and judgement. The level of the provision is assessed by taking into account the recent sales experience, the ageing of inventories and other factors that affect inventory obsolescence. 13
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)
2.
BASIS OF PREPARATION (CONTINUED)
(d)
Comparatives Where required by Accounting Standards comparative figures have been adjusted to conform to changes in presentation for the current financial year. Where the Group has retrospectively applied an accounting policy, made a retrospective restatement or reclassified items in its financial statements, an additional statement of financial position as at the beginning of the earliest comparative period will be disclosed.
3.
SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
(a)
Principles of consolidation The consolidated financial statements comprise the financial statements of the Company and its controlled entity, together referred to in this report as the Group. Control exists where the Company is exposed, or has rights, to variable returns from its involvement with the controlled entity and has the ability to effect returns through it power over the controlled entity. A list of controlled entities is contained in Note 23 to the financial statements. All inter-Group balances and transactions between entities in the Group, including any unrealised profits or losses, have been eliminated on consolidation. Where controlled entities have entered or left the Group during the year, their operating results have been included from the date control was obtained or until the date control ceased. There are no outside interests in the equity or results of the controlled entities.
(b)
Income tax The Company and its controlled entity are exempt institutions from income tax under Division 50 of the Income Tax Assessment Act 1997. The Company has deductible gift recipient (DGR) status.
(c)
Goods and services tax (“GST”) Revenue, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers.
14
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(d)
Revenue recognition Amounts disclosed as revenue are net of returns, trade allowances and duties and taxes including goods and services tax (GST). Revenue is recognised for the major business activities as follows: Revenue from contracts with customers Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the Group: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised. Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are recognised as a refund liability. Other than grant and rental revenue, all revenue is recognised at a point in time when the goods are delivered or the courses/events have occurred. Sale of goods Revenue from the sale of goods is recognised at the point in time when the customer obtains control of the goods, which is generally at the time of delivery. Training courses and events Revenue from training courses and events is recognised at the point in time when the training course/event has occurred. Rendering of services Revenue from a contract to provide services is recognised over time as the services are rendered based on either a fixed price or an hourly rate. Interest revenue Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. Dividend and other investment revenue Dividends and other investment revenue are recognised when the right to receive payment is established. Donations and fundraising events The timing of the recognition of donations, grants and fundraising depends upon the point in time at which control of these monies is obtained. Control would normally occur upon the earlier of the receipt of the monies or notification that the monies have been secured.
15
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(d)
Revenue recognition (continued) Grants The Group's activities are supported by grants received from the federal and state governments, and other parties. If grants are received for specific purposes and are considered enforceable, grant revenue is recognised as a liability and revenue is recognised as services are performed. If grant revenue is not for specific purposes or enforceable, it is recognised on receipt. Contributions in kind Contributions in kind are recognised as income when control of the item of property, plant and equipment contributed passes to the Group at fair value at the date of the contribution. Volunteer services The Group has elected not to recognise volunteer services as either revenue or other form of contribution received. As such, any related consumption or capitalisation of such resources received is also not recognised.
(e)
Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position.
(f)
Inventories Inventories are measured at the lower of cost and net realisable value. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.
(g)
Trade receivables For all sources of recurrent income, trade receivables are recognised at cost value less provision for doubtful debts. The Group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Group applies the simplified approach permitted by AASB 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
(h)
Property, plant and equipment Recognition and measurement Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss. 16
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(h)
Property plant and equipment (continued) Subsequent costs Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. Property Land and buildings are carried at cost, less depreciation and impairment losses on buildings. The carrying amount of land and buildings is reviewed annually by the Directors to ensure that it is not in excess of the recoverable amount from those assets. Depreciation The depreciable amount of all property, plant and equipment including buildings, but excluding freehold land, is depreciated on a straight line basis over the asset’s useful life to the Group commencing from the time the asset is held ready for use. The depreciation useful life used for each class of depreciable assets is: Buildings Furniture and equipment Motor vehicles
20 – 30 years 5 – 15 years 5 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. 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. (i)
Impairment of assets Other than trade receivables (note 3(g)) assets that have an indefinite useful life which are not subject to amortisation are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). Impairment losses are reversed through profit or loss when there is an indication that the impairment loss may no longer exist and there has been a change in the estimate used to determine the recoverable amount.
(j)
Non-current assets held for sale and discontinued operations Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered probable. They are measured at the lower of their carrying amount and fair value less costs to sell.
17
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(k)
Lease liability A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred. Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
(l)
Right-of-use assets A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset. Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities. The estimated useful life used for each class of right-of-use assets is: Leases of land and buildings Leases of plant and equipment
3 – 5 years 3 – 5 years
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for shortterm leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred. (m)
Financial instruments Classification Upon adoption of AASB 9, the group classified its financial assets in the following measurement categories: those to be measured subsequently at fair value through other comprehensive income (“OCI”), and; those to be measured at amortised cost. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows.
18
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(m)
Financial instruments (continued) For assets measured at fair value, gains and losses are recorded in OCI. For investments in equity instruments that are not held for trading, the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (“FVOCI”). Recognition and derecognition Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. Measurement At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (“FVPL”), transaction costs that are directly attributable to the acquisition of the financial asset. The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be recognised in profit or loss as other income when the Group’s right to receive payments is established. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value. Impairment The Group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Group applies the simplified approach permitted by AASB 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
(n)
Intangible assets Software Software has a finite useful life and is carried at cost less accumulated amortisation and impairment losses. Amortisation is calculated using the straight-line method to allocate the cost of the software over its estimated useful life of between 3 and 5 years.
(o)
Trade and other payables Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the Group during the reporting period, which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability. The carrying amount of trade and other payables is deemed to reflect fair value.
(p)
Revenue received in advance Revenue, other than government contract income, that is received before the service to which the payment relates has been provided is recorded as a liability until such time as the service has been provided, at which time it is recognised in profit or loss. 19
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(q)
Employee benefits Short-term employee benefits Provision is made for the Group's obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service, including wages, salaries, annual leave and long service leave. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled. The Company's obligations for short-term employee benefits such as wages and salaries are recognised as a part of current trade and other payables in the statement of financial position. Other long-term employee benefits The Group classifies employees' long service leave entitlements as other long-term employee benefits as they are not expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service. Provision is made for the Group's obligation for other long-term employee benefits, which are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures, and are discounted at rates determined by reference to market yields at the end of the reporting period on government bonds that have maturity dates that approximate the terms of the obligations. Upon the remeasurement of obligations for other long-term employee benefits, the net change in the obligation is recognised in profit or loss classified under employee benefits expense. The Company's obligations for long-term employee benefits are presented as non-current liabilities in its statement of financial position, except where the Company does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which case the obligations are presented as current liabilities. Retirement benefit obligations Superannuation contributions are made by the Group to employee superannuation funds and are charged as expenses when incurred.
(r)
Provisions Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period.
(s)
Borrowings Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the statement of profit or loss and other comprehensive income over the period of the borrowings using the effective interest method. Fees paid on the establishment of the loan facilities are recognised in profit or loss.
(t)
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 31 December 2020. The Company’s assessment of the impact of these new or amended Accounting Standards and Interpretations is that they will have no material impact on the financial statements of the Company. 20
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)
2020 $’000 4.
OTHER REVENUE AND INCOME Other revenue Rent received Dividends and distributions received Other operating revenue Interest revenue Revenue from sale of lottery tickets
5.
2019 $’000
1 977 251 12 26
2 1,061 378 64 -
Total other revenue
1,267
1,505
Other income JobKeeper ATO cashflow boost Net gain (loss) on disposal of property, plant and equipment
2,025 100 -
3
Total other income
2,125
3
Total other revenue and other income
3,392
1,508
392 50 48
294 64 -
490
358
6,286 79 55 -
97 60 118 62
6,420
337
22
48
6,932
743
GOVERNMENT REVENUE (INCLUDING GOVERNMENT GRANTS) Commonwealth Government Department of Infrastructure, Regional Development and Cities Department of Social Services Department of Health
State Government NSW Ministry of Health Communities & Justice South Eastern Sydney Local Health District Office of Emergency Management Department of Customer Service
Other Total Government Revenue
21
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)
2020 $’000 6.
EXPENSES
Depreciation: Buildings Furniture and equipment Motor vehicles Right-of-use assets Amortisation: Intangible assets
206 336 135 1,213
84 227 143 1,503
116
108
2,006
2,065
Finance costs: Interest expense – bank Interest expense – leases
3 159
5 108
Total finance costs
162
113
Cash at bank and on hand Short term bank deposits
12,118 -
1,530 1,400
Total cash and cash equivalents
12,118
2,930
Total depreciation and amortisation
7.
8.
9.
2019 $’000
CASH AND CASH EQUIVALENTS
TRADE AND OTHER RECEIVABLES Current Trade receivables Less: allowance for expected credit losses
1,468 (177)
1,440 (146)
Total current trade and other receivables
1,291
1,294
INVENTORIES Current Stock on hand Less: allowance for impairment
2,587 (368)
863 (92)
Total current inventories
2,219
771
22
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)
2020 $’000 10.
2019 $’000
FINANCIAL ASSETS
Non-current Term deposits
161
-
Financial assets at fair value through other comprehensive income Managed funds Australian listed securities
18,540 4,281
15,640 6,567
Total financial assets at fair value through other comprehensive income
22,821
22,207
Total non-current financial assets
22,982
22,207
Movements in carrying amount of managed funds and Australian listed securities Opening net carrying amount Additions (withdrawals) Fair value gain (loss) *
22,207 663 (49)
18,974 1,755 1,478
Closing net carrying amount
22,821
22,207
* Fair value gain (loss) represents the realised and unrealised net fair value adjustment to the carrying amount of the Group’s long term investment portfolio.
11.
OTHER ASSETS Current Accrued income Dividends receivable Prepayments Security bond
106 174 123 6
208 143 243 19
Total current other assets
409
613
Non-current Other assets
722
215
23
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED) 12.
PROPERTY, PLANT AND EQUIPMENT Furniture & Equipment $’000
Motor Vehicles $’000
Land $’000
Buildings & Improvements $’000
Cost Accumulated depreciation and impairment
65
2,840
-
(1,515)
Net carrying amount
65
1,325
888
274
2,552
65
2,388
7,462
3,311
13,226
-
(1,311)
(6,833)
(3,002)
(11,146)
Net carrying amount
65
1,077
629
309
2,080
Movements in carrying amounts Opening net carrying amount Additions Depreciation charge for the year
65 -
1,077 454 (206)
629 595 (336)
309 100 (135)
2,080 1,149 (677)
Closing net carrying amount
65
1,325
888
274
2,552
Total $’000
As at 31 December 2020
As at 31 December 2019 Cost Accumulated depreciation and impairment
8,058
3,410
14,373
(7,170)
(3,136)
(11,821)
Other buildings beneficially owned Other buildings beneficially owned by the Group and built on leased land, and with a book cost of $Nil (2019: $Nil) are: x x x x x x
Blacktown, Myrtle Street (Lot 31) Broadmeadow, 177 Tudor Street Brocklehurst, Cnr Wambianna Street & Newell Highway (garage owned) Clarendon (part of Hawkesbury Showground) Granville, 2B Diamond Avenue Warners Bay, 18 James Street (Lot 11) 2020 $’000
13.
2019 $’000
INTANGIBLE ASSETS Software Movements in carrying amounts Opening net carrying amount Additions Amortisation Closing net carrying amount At the end of the financial year Cost Accumulated amortisation
222 265 (116)
308 22 (108)
371
222
952 (581)
Net carrying amount
371 24
1,648 (1,426) 222
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)
2020 $’000 14.
2019 $’000
RIGHT-OF-USE ASSETS Right-of-use Less: Accumulated depreciation
4,847 (1,704)
5,112 (869)
3,143
4,243
Additions to the right-of-use assets during the year were $Nil (2019: $3,337,126). The Group leases land and buildings for its offices and training facilities under agreements of between three to five years with, in some cases, options to extend. The leases have various escalation clauses. On renewal, the terms of the leases are renegotiated. The Group also leases plant and equipment under agreements of between three to five years. The Group leases office equipment under agreements of less than one year. These leases are either short-term or low-value, so have been expensed as incurred and not capitalised as right-of-use assets
15.
16.
TRADE AND OTHER PAYABLES Current Trade payables Other payables
2,791 1,770
648 597
Total current trade and other payables
4,561
1,245
BORROWINGS Financing facilities The Company has a bank overdraft facility of $2,000,000 (2019: $500,000) with a balance utilised at 31 December 2020 of $Nil (2019: $Nil) and a corporate business card facility of $300,000. Security The financing facilities are secured by a mortgage over the land and buildings at 9 St Johns Road, Blaxland NSW and a first registered charge over all of the assets of the Company.
25
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)
2020 $’000 17.
EMPLOYEE ENTITLEMENTS Current Annual leave Long service leave Other employee entitlements
524 163 -
398 193 20
687
611
294
228
96
105
Current Lease liabilities
1,209
1,090
Non-current Lease liabilities
2,301
3,556
287 4,887
320 298
5,174
618
10
10
Non-current Long service leave
18.
PROVISIONS Current Make good
19.
20.
2019 $’000
LEASE LIABILITIES
OTHER LIABILITIES Current Revenue received in advance – other Revenue received in advance - Government
Non-current Scholarship endowment – Lady Galleghan Trust
26
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)
21.
COMPANY INFORMATION The following information has been extracted from the books and records of the Company and has been prepared in accordance with Australian Accounting Standards. Statement of financial position 2020 $’000
2019 $’000
Assets Current assets Non-current assets
16,198 29,579
5,608 28,967
Total assets
45,777
34,575
Liabilities Current liabilities Non-current liabilities
11,727 2,575
3,669 3,794
Total liabilities
14,302
7,463
Net Assets
31,475
27,112
Equity Accumulated funds FVOCI reserve
30,581 894
26,169 943
Total equity
31,475
27,112
Statement of Profit or Loss and Other Comprehensive Income Total surplus (deficit) for the year Other comprehensive income (deficit)
4,412 (49)
306 1,478
Total comprehensive income (deficit)
4,363
1,784
Guarantees The Company has not entered into any guarantees, in the current or previous financial year, in relation to the debts of its controlled entity. Contractual Commitments The contractual commitments of the Company as at balance date are the same as those specified in Note 19.
22.
KEY MANAGEMENT PERSONNEL Remuneration of key management personnel (“KMP”) The aggregate amount of compensation paid to KMP during the year was:
27
1,431
1,319
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)
23.
CONTROLLED ENTITIES Domiciled
Controlled Entities Consolidated
24.
Percentage owned 2020 2019
Parent entity St John Ambulance Australia (NSW)
Australia
n/a
n/a
Controlled entity St John Ambulance Australia (NSW Trust) Limited
Australia
100%
100%
RELATED PARTY TRANSACTIONS Directors’ remuneration In accordance with the Company’s Constitution (Item 10.16), a Director is not to be paid fees for acting as such except payment or reimbursement of reasonable disbursements relating to the business and activities of the Company or reasonable fees for professional or technical services to the Company previously approved by the Board. Purchases of first aid kits totalling $1,787 (2019: $Nil) were made by Directors during the year on normal commercial terms. There were no other related party transactions during the year.
25.
ECONOMIC DEPENDENCY Certain community programs delivered by the Group are dependent on the ongoing receipt of financial assistance from State and Commonwealth governments. The Group’s COVID-19 Community Medical Support program is dependent on the ongoing receipt of financial assistance from the NSW Ministry of Health. The Group’s Norfolk Island Community First Response program is dependent on the ongoing receipt of financial assistance from the Commonwealth Department of Infrastructure, Regional Development and Cities.
26.
LIMITATION OF MEMBERS’ LIABILITY The Company is registered as a Company limited by guarantee, and in accordance with the Constitution the liability of members of the Company in the event of the Company being wound up would not exceed $1.00 per member. The number of members of St John Ambulance Australia (NSW) “the Organisation” at 31 December 2020 was 3,789 (2019: 3,490). At 31 December 2020, applications had been received and approved from 487 members (2019: 450) of the Organisation to become members of the Company.
28
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED) 27.
RESERVES Movement in the FVOCI reserve during the year is as follows: 2020 $’000
2019 $’000
Balance at beginning of year Changes in the fair value of equity instruments at FVOCI
943 (49)
(535) 1,478
Balance at end of the year
894
943
The Group has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. 28.
CHARITABLE FUNDRAISING ACTIVITIES Fundraising income and expenditure Gross proceeds from fundraising Donations Bequests Lottery
280 275 26
260 66 -
581
326
84 178
98 -
262
98
Net surplus from fundraising
319
228
Total cost of fundraising (A) Gross proceeds from fundraising (B) (A) divided by (B)
262 581 45%
98 326 30%
Net surplus from fundraising (A) Gross proceeds from fundraising (B) (A) divided by (B)
319 581 55%
229 326 70%
Expenditure from fundraising appeals Fundraising Lottery
Fundraising income activities Fundraising income activities carried out during the year were functions, appeals, charitable art unions, raffles and social fundraising activities. Expenditure of funds raised Surplus funds from fundraising are utilised in delivering on the mission of the Group to save lives and build community resilience The costs of fundraising during 2020 reflect the investment made in establishing the Groups fundraising capability, including the launch of the St John Charitable Art Union “Cash that Counts”. The Group has traditionally funded its community programs from the net surplus generated from our 29
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED) First Aid Sales and Training operations.
28.
CHARITABLE FUNDRAISING ACTIVITIES (CONTINUED) The surplus achieved from these operations and all of our commercial and fundraising activities goes directly to supporting our community programs, which include by way of example, free First Aid training for school students, youth development programs, leadership and personal development programs for our volunteers and providing crucial first responder and community health services supporting communities across NSW.
29.
IMPACT OF COVID-19 On 11 March 2020, the World Health Organisation (“WHO”) declared the Coronavirus disease 2019 (COVID-19) a pandemic. The pandemic has adversely affected the global economy, including an increase in unemployment, a reduction in consumer demand, the implementation of significant public health measures including lockdowns, restrictions on gatherings and social distancing measures and interruptions to supply chains. The COVID-19 situation is still evolving, and its full economic impact remains uncertain. The pandemic has impacted the Group’s operations with Government mandated lockdowns, restrictions on mass gatherings and social distancing measures resulting in significant disruption to the Group’s commercial First Aid Training and Event Health Services businesses, this disruption is ongoing and is expected to continue negatively impact both the revenue and margins of these operations. As a result of the disruption to the Group’s commercial First Aid Training and Event Health Services business the Group was eligible for the Federal Government JobKeeper payment scheme and Cashflow Boost stimulus measures from April to September 2020. The Group does not anticipate it will be eligible for government stimulus programs after September 2020. Throughout 2020 the pandemic resulted in an increase in demand for the Group’s Corporate Health Services, including the provision of personal protective equipment (PPE), workplace temperature screening services, workplace assessment and COVID-19 incident response planning. As the health situation improves and government public health measures ease demand for these services is forecast to decline. The Group is currently providing community medical services to support the NSW Health COVID-19 public health response, including the provision of screening and testing services at quarantine hotels, transport hubs and COVID testing clinics across NSW, the provision of these services is expected to continue to positively impact the Group’s revenue. The Group has implemented prudent expense control measures in response to the pandemic. The extent of the impact of COVID-19 on the Group’s future financial performance and position is dependent of several variables including the duration of the pandemic, success of the vaccination program and the extent of impact of the shift to remote working on the Group’s First Aid Product Sales and Training operations, the impact of these variable cannot be reasonably estimated given the continuing degree of uncertainty in the current climate. While the COVID-19 situation continues to create economic uncertainty, the directors consider that the Group will be able to continue as a going concern as it is has net assets at 31 December 2020 of $31.475m and cash balances and financial investments that can readily converted into cash of $35.1m.
30
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)
30.
EVENTS OCCURING AFTER THE REPORTING DATE, INCLUDING IMPACT ON GOING CONCERN In December 2020, Ms Joanne Muller notified the Company of her intention not to seek re-election as a Director of the Company when her current term ended on 31 January 2021. The Board thanks Ms Muller for her service as a Director and her contribution to the Company. Other than the matters detailed above, no other matters or circumstances have arisen which have significantly affected, or may significantly affect, the operations of the Company, the results of those operations or affairs of the Company in future financial periods.
31
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 DIRECTORS’ DECLARATION
The Directors of St John Ambulance Australia (NSW) declare that, in the Directors’ opinion: 1.
2.
The financial statements, which comprises the statement of financial position as at 31 December 2020, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, a summary of significant accounting policies and other explanatory notes are in accordance with the Australian Charities and Not-for-profits Commission Act 2012 and: (a)
Comply with Australian Accounting Standards – Reduced Disclosure requirements; and
(b)
Give a true and fair view of the Group’s financial position as at 31 December 2020 and of its performance for the year ended on that date.
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
This declaration is made in accordance with subsection 60.15(2) of the Australian Charities and Not-for-profits Commission Regulation 2013.
Sean McGuinness Chairman
Coretta Bessi Director
Sydney, NSW 25 March 2021
32
ST JOHN AMBULANCE AUSTRALIA (NSW) AND CONTROLLED ENTITY ABN 84 001 738 370 DIRECTORS’ DECLARATION UNDER THE CHARITABLE FUNDRAISING ACT
In the opinion of the Directors of St John Ambulance Australia (NSW): (i)
The financial statements and notes thereto give a true and fair view of all income and expenditure with respect to fundraising appeals conducted by the organisation for the year ended 31 December 2020; and
(ii)
The statement of financial position as at 31 December 2020 give a true and fair view of the state of affairs of the Group with respect to fundraising appeals conducted by the organisation; and
(iii)
The provisions of the Charitable Fundraising Act 1991, the regulations under that Act, and the conditions attached to the authority to fundraise have been complied with by the organisation; and
(iv)
The internal controls exercised by the Group are appropriate and effective in accounting for all income received and applied by the organisation from any of its fundraising appeals.
This declaration is made in accordance with a resolution of the Board of Directors.
Sean McGuinness Chairman
Coretta Bessi Director
Sydney, Syd Sy dn ney ey, NSW NSW NS XX XX Month Mo on ntth h 2021 20 2 021
33
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www.stjohnnsw.com.au
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