Author: Shamim Islam

Australian Network on Disability Limited
ACN 605 683 369
Contents
For the Period Ended 30 June 2019

Australian Network on Disability Limited 
ACN 605 683 369
Director's Report
30 June 2019

Australian Network on Disability Limited 
ACN 605 683 369
Director's Report
30 June 2019
Principal activities (cont'd)

Australian Network on Disability Limited 
ACN 605 683 369
Director's Report
30 June 2019
Information on directors (cont'd)

Australian Network on Disability Limited 
ACN 605 683 369
Director's Report
30 June 2019
Future Developments and results

Australian Network on Disability
ACN 605 683 369
Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 30 June 2019

Australian Network on Disability
ACN 605 683 369
Statement of Financial Position
30 June 2019

Australian Network on Disability
ACN 605 683 369
Statement of Changes in Equity
For the Year Ended 30 June 2019

Australian Network on Disability
ACN 605 683 369
Statement of Cash Flows
For the Year Ended 30 June 2019

Australian Network on Disability
ACN 605 683 369
Notes to the Financial Statements
For the Year Ended 30 June 2019

Australian Network on Disability
ACN 605 683 369
Notes to the Financial Statements
For the Year Ended 30 June 2019

2	Summary of Significant Accounting Policies (cont'd)

Australian Network on Disability
ACN 605 683 369
Notes to the Financial Statements
For the Year Ended 30 June 2019

2	Summary of Significant Accounting Policies (cont'd)
(e)	Leases

Australian Network on Disability
ACN 605 683 369
Notes to the Financial Statements
For the Year Ended 30 June 2019

2	Summary of Significant Accounting Policies (cont'd)
(i)	Impairment of non‑financial assets (cont'd)

Australian Network on Disability
ACN 605 683 369
Notes to the Financial Statements
For the Year Ended 30 June 2019

2	Summary of Significant Accounting Policies (cont'd)
(m)	New Accounting Standards and Interpretations in future periods (cont'd)

Australian Network on Disability Limited
ACN 605 683 369
Director's Declaration

Australian Network on Disability Limited
ACN 605 683 369

Financial Statements

For the Year Ended 30 June 2019

| Page
Financial Statements |
Director's Report | 1
Auditor's Independence Declaration under the Australian Charities and Not-for-profit Commission Act 2012 | 8
Statement of Profit or Loss and Other Comprehensive Income | 9
Statement of Financial Position | 10
Statement of Changes in Equity | 11
Statement of Cash Flows | 12
Notes to the Financial Statements | 13
Director's Declaration | 24
Independent Audit Report | 25

The directors present their report on Australian Network on Disability Limited 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:
Names | Position | Date First Appointed | Re‑Appointed/Resigned | Period of Service as a Director (years)
Peter Wilson AM | AND Chairman | May 2015 | | 4 years
Richard Barnett | | December 2008 | Retired effective 21 November 2019 | 11 years
Belinda Curtis | | February 2002 | Re-Appointed 22 November 2018 | 17 years
Kevin Figueiredo | | December 2006 | Re-Appointed 22 November 2018 | 13 years
Samantha Palmer | | November 2010 | Re-Appointed 30 November 2017 | 7 years
Donna Purcell | | November 2014 | Re-appointed 30 November 2017 | 5 years
Rania Saab | | November 2012 | Re-appointed 30 November 2017 | 7 years
David Davies | AND Company Secretary | November 2010 | Re-Appointed 23 November 2016 | 9 years
Bronwyn Grantham | AND Treasurer | December 2012 | Re-Appointed 23 November 2016 | 7 years
Rosie McArdle | | November 2015 (casual appointment) | Re-Appointed 23 November 2016 | 4 years
Stephanie Gunn | | November 2015 | Resigned August 2019 | 4 years
Travis Tyler | | November 2016 | | 3 years
Scott Orpin | | January 2018 | Resigned 22 November 2018 | 10 months
Ainsley Barahona Santos | | November 2018 | | 7 months
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
Principal activities
The principal purpose of the Company is to lead the change into a positive employment environment for people with disability by changing perceptions of employers and encouraging their good corporate citizenship. The Company’s objectives are to do this by:
•	advancing the equitable inclusion of people with disability in all aspects of business to create a disability confident Australia 
•	promoting employment of people with disability
•	raising public awareness of the positive attributes of people with disability
•	facilitating internships and mentoring programs to connect students with disability to employers
•	raising awareness of the profile of people with disability as competent employees
Strategy for achieving the Company’s objectives
To achieve these objectives, the Company adopted the following strategies: 
•	Grow engagement to achieve sustainable change within the Company’s member organisations through influencing senior leaders and disability champions
•	Support members to use the Company’s Access and Inclusion Index as a management tool to measure and plan their disability capability and maturity
•	Ensure our expert knowledge is current, tailored and well communicated through our learning solutions and online platforms
•	Harness the employer voice to provide system solutions which improve policy and practice 
•	Design purposeful services, programs and projects that create impact and break new ground 
•	Ensure good governance, sustainability and accountability to achieve our purpose 
Information on directors
The names of each person who has been a director during the year and to the date of this report, and/or was a member of the committee in the association previously, are:

Peter Wilson AM

AND Chairman
Peter is Chair of the Australian Human Resource Institute Limited and CPA Australia Limited. He was appointed Chair of the Australian Network on Disability in May 2015.

He is immediate past Chair of Yarra Valley Water, and the Immediate past President of the World Federation of People Management Associations (WFPMA).

Peter is currently a Director of Vision Super. He led the Business Council’s program to mentor senior executive women and is Adjunct Professor in Management at the Monash Business School in Melbourne. He is also Chair of the Advisory Council of the Victorian Institute of Strategic Economic Studies at Victoria University, and an accredited PhD Supervisor at the Latrobe Business School, Latrobe University. He authored the book Make Mentoring Work in 2012 & 2015, and delivered the 2014 Kingsley Laffer Oration at Sydney University, and the inaugural Prescott Family Oration at Monash University in 2016.

Peter held senior executive appointments at ANZ, Amcor and the Federal Treasury, CEO of the Energy 21 Group, and also a range of senior board directorships.

Richard Barnett

Richard is National Client Solutions Director for Hays, Australia’s leading recruitment organisation.

He has over 20 years of experience in senior roles for some of Australia’s largest recruitment companies, overseeing the placement of tens of thousands of people into new roles.

Richard has been on the AND board since 2008 and has been actively involved in marketing AND's services to many new organisations, lobbying Government on recruitment issues and in helping develop AND’s ‘Disability Confident Recruiter’ program.

Richard received the prestigious ITCRA ‘Social Responsibility’ award for 2016 in recognition of his work with AND.

Richard retired from the Board effective 21 November 2019. AND acknowledges his services as a Director of the Board and thanks him for his contribution.

Belinda Curtis

Belinda has 25 years’ experience in a range of HR and Organisational Development roles in FMCG, Aviation and Financial Services.

Currently People and Performance Director at Tip Top (a division of George Weston Foods), Belinda has held senior HR roles at Qantas, Commonwealth Bank and AMP. While at AMP, she led the development of the Work, Family and Diversity strategies and currently leads Diversity & Inclusion for George Weston Foods.

Belinda has also held leadership roles in EEO and diversity professional networks and began her career as an occupational therapist with the Commonwealth Rehabilitation Service providing workplace rehabilitation programs that supported ongoing employment for people incapacitated by significant workplace injuries.

Kevin Figueiredo

Kevin is the General Manager Safety, Health and Wellbeing for the Woolworths Group where he is responsible for the safety of 200,000 team members and over 23 million customers each week. He has served on the AND board since 2006. 

Kevin previously worked for Westpac as the Head of Health, Safety and Wellbeing and in various safety roles at Goodman Fielder.

He has a Bachelor’s in Chemistry, a Masters in Safety and is a Graduate of the Australian Institute of Company Directors.

Samantha Palmer

Samantha is the ABS’s Diversity & Inclusion Champion and GM of People Capability and Communication.

In 2016 she was made a National Fellow of the Institute of Public Administration Australia, in part for her contribution to advancing diversity. In 2013 she received the inaugural AHRI Diversity Champion (HR) Award and was named an AFR/Westpac Woman of Influence.

Her work in Disability led the Commonwealth Health Department to win the Inaugural APS Diversity Council’s Disability Employment Award.

Samantha is National and State Board member of Institute of Public Administration, and a public sector reference panel member of AHRI.

Donna Purcell

Donna works at Commonwealth Bank in the Customer and Community Advocacy Team. Her role includes developing and leading CBA’s Accessibility and Inclusion Plan and providing advice to increase access and inclusion for customers and employees who have a disability. She also chairs the Enable Employee Network.

In recognition of her work in the disability sector, Donna has been recruited to participate in community projects including NSW TAFE Disability Services Review and the National Willing to Work Inquiry conducted by the Australian Human Rights Commission.

She is also a Director on the Board of Northcott Society and a certified Access Consultant.

Donna is passionate about creating a community where everyone is included and treated with dignity and respect.

Rania Saab

Rania is a solicitor with Legal Aid NSW. She is deaf and advocates for equal access to justice. She believes that we are all different, irrespective of our abilities, and would like to live in a society where everyone is included and has equal access to society, entertainment, education and employment.

Rania is an Ambassador for the Catherine Sullivan Centre. Previously, Rania was a mentor for Hear For You and was a Director with Deafness Forum of Australia.

David Davies

AND Company Secretary
David is a partner at Thomson Geer. He has more than 18 years’ experience acting for private sector and government clients in workplace relations matters, including unfair dismissals, industrial disputes, discrimination law and workplace agreements.

A significant area of David’s practice is bullying, harassment and discrimination. He is an expert advocate and regularly appears as counsel before the Australian and NSW Industrial Relations Commissions.

David also presents at industry seminars and provides training to private and public sector clients and has previously lectured in employment relations at UTS and Western Sydney University.

Bronwyn Grantham

AND Treasurer
Bronwyn is the IBM Financial Controller of Australia and New Zealand.

At the core of what Bronwyn enjoys is bringing businesses, individuals and teams together to find mutually beneficial solutions and outcomes. Her passion for working with diverse clients and teams started with the various professional contract roles in and around London and furthered with an extensive pricing career at IBM. Through the pricing roles Bronwyn helped IBM and its customers financially structure services contracts in Australia, UK, US and other EU countries resulting in significant signings of large outsourcing contracts and multi country deals. Other recent roles include Software Group Financial Controller, Business Controls and Risk Manager, Controller/CFO of Global Business Services Division.

Rosie McArdle

Rosie is Executive Director, Human Resources and Risk, of Compass Group (Australia) Pty Ltd.

With more than 25 years’ experience in human resources, industrial relations and health and safety, Rosie had a long career with BlueScope Steel, BHP and Arrium where she held a number of both IR specialist and HR strategic roles before joining Compass Group.

She has a keen interest in building diverse organisation cultures based on care and respect which drive outstanding and sustainable business outcomes. This is evident at Compass where the diversity model delivers significant benefit to its current and future employees, its customers, clients and accordingly, shareholders.

Stephanie Gunn

Stephanie was the General Manager, Critical Service Issues, at the National Disability Insurance Agency which is responsible for the implementation of the National Disability Insurance Scheme. Currently, she is the Chief Executive Officer at Gateways Support Services.

Stephanie brings many years’ experience as a senior officer within the Commonwealth. She has a passion to enhance equity in society and generate economic returns for the community and has contributed to these goals through a range of program, policy and direct service delivery roles.

Stephanie resigned from the Board in August 2019. AND acknowledges her services as a Director of the Board and thanks her for her contribution.

Travis Tyler | With two decades of retail banking experience and previously held senior positions at Westpac and St.George Bank, Travis Tyler leads the product and marketing function at 86 400, a new bank designed to serve customers every second of every day.  Working with a world class technology team, Travis aims to reinvent banking and make simple access to digital banking a reality for all customers.
Scott Orpin | Scott resigned from the Board in November 2018. AND acknowledges his services as a Director of the Board and thanks him for his contribution.

Ainsley Barahona Santos

Ainsley is a senior HR executive bringing experience across commercial, non-profit and government sectors. As General Manager HR Partnering she leads the people strategies and HR partnering for icare, a NSW social insurer.

Ainsley is an experienced Director on for-purpose Boards. She is currently a Director of Brisbane Women’s Club and Vice President of the charitable organisation Ship for World Youth Australia. She was formerly Chair and Company Secretary of the Australian Association of Graduate Employers, and a Director of the Enterprise Network for Young Australians and the Global Society Foundation.

She holds Masters degrees in Coaching Psychology and International Relations and Bachelor of Arts in Communication.

Review of operations
The surplus of the Company after providing for income tax amounted to $338,923 (2018: $403,190).

Likely developments in the operations of the Company and the expected results of those operations in future financial years have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the Company.
Members guarantee
Australian Network on Disability Limited is a company limited by guarantee. In the event of, and for the purpose of winding up of the Company, the amount capable of being called up from each members and any person or association who ceased to be a member in the year prior to the winding up, is limited to $10 for members, subject to the provisions of the Company's constitution.
Environmental matters
The Company's operations are not regulated by any significant environmental regulations under a law of the Commonwealth or of a state or territory.
Significant changes in state of affairs
There have been no significant changes in the state of affairs of entities in the Company during the year.
Events after the reporting date
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.
Meetings of directors
During the financial year, 5 (five) meetings were held following the adoption of the new Australian Network on Disability Constitution on May 2015. Attendances by each director during the year were as followings:
| Directors' Meetings as Corporation
| Number eligible to attend | Number attended
Peter Wilson AM | 5 | 4
Richard Barnett | 5 | 3
Belinda Curtis | 5 | 5
Kevin Figueiredo | 5 | 5
Samantha Palmer | 5 | 4
Donna Purcell | 5 | 3
Rania Saab | 5 | 3
David Davies | 5 | 4
Bronwyn Grantham | 5 | 5
Rosie McArdle | 5 | 3
Stephanie Gunn | 5 | 5
Travis Tyler | 5 | 5
Scott Orpin | 2 | 0
Ainsley Barahona Santos | 3 | 2

Indemnification and insurance of officers and auditors
No indemnities have been given or insurance premiums paid, during or since the end of the financial year, for any person who is or has been an officer or auditor of Australian Network on Disability Limited.
Proceedings on behalf of company

No person has applied for leave of court under Section 237 of the Corporations Act 2001 to bring proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings.
Auditor's independence declaration
The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, for the year ended 30 June 2019 has been received and can be found on page 8 of the financial report.
Signed in accordance with a resolution of the Board of Directors:

Director: ...............................................................
Peter Wilson AM

Director: ................................................................

Dated 

Australian Network on Disability Limited
ACN 605 683 369

Auditor's Independence Declaration under the Australian Charities and Not-for-profit Commission Act 2012 

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2019, there have been:

(i)	no contraventions of the auditor independence requirements as set out in the Australian Charities and Not-for-profit Commission Act 2012 in relation to the audit; and

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

PKF

Scott Tobutt 
Partner

XX October 2019 
Sydney, NSW 

| Note | 2019 $ | 2018 $
Revenue | 4 | 3,346,376 | 2,852,478
Other income | 4 | 31,311 | 18,940
Employee benefits expense | | (1,830,677) | (1,564,831)
Cost of sales | | (309,070) | (285,582)
Depreciation and amortisation expense | 5 | (132,802) | (61,488)
Marketing expenses | | (74,221) | (62,351)
Occupancy costs | 5 | (141,142) | (131,470)
Administrative expenses | | (550,852) | (362,164)
Finance costs | | - | (342)
Surplus before income tax | | 338,923 | 403,190
Income tax expense | | - | -
Surplus for the year | | 338,923 | 403,190
Other comprehensive income for the year | | - | -
Total comprehensive income for the year | | 338,923 | 403,190

| Note | 2019 $ | 2018 $
ASSETS | | |
CURRENT ASSETS | | |
Cash and cash equivalents | 6 | 1,489,550 | 1,435,550
Trade and other receivables | 7 | 2,174,642 | 1,743,220
Other assets | | 9,136 | 16,583
TOTAL CURRENT ASSETS | | 3,673,328 | 3,195,353
NON‑CURRENT ASSETS | | |
Trade and other receivables | 7 | 41,320 | 41,320
Property, plant and equipment | 8 | 27,278 | 139,958
Intangible assets | 9 | 24,767 | 44,889
TOTAL NON‑CURRENT ASSETS | | 93,365 | 226,167
TOTAL ASSETS | | 3,766,693 | 3,421,520
LIABILITIES | | |
CURRENT LIABILITIES | | |
Trade and other payables | 10 | 313,949 | 434,561
Short‑term provisions | 11 | 79,019 | 59,587
Other financial liabilities | 12 | 1,661,261 | 1,571,283
TOTAL CURRENT LIABILITIES | | 2,054,229 | 2,065,431
NON‑CURRENT LIABILITIES | | |
Employee benefits | | 25,563 | 8,111
TOTAL NON‑CURRENT LIABILITIES | | 25,563 | 8,111
TOTAL LIABILITIES | | 2,079,792 | 2,073,542
NET ASSETS | | 1,686,901 | 1,347,978

EQUITY | | |
Accumulated surplus | | 1,686,901 | 1,347,978
TOTAL EQUITY | | 1,686,901 | 1,347,978

2019 | | |
| | Accumulated surplus $ | Total $
Balance at 1 July 2018 | | 1,347,978 | 1,347,978
Surplus for the year | | 338,923 | 338,923
Balance at 30 June 2019 | | 1,686,901 | 1,686,901

2018 | | |
| | Accumulated surplus $ | Total $
Balance at 1 July 2017 | | 944,788 | 944,788
Surplus for the year | | 403,190 | 403,190
Balance at 30 June 2018 | | 1,347,978 | 1,347,978

| Note | 2019 $ | 2018 $
CASH FLOWS FROM OPERATING ACTIVITIES: | | |
Receipts from customers and sponsorships received | | 3,286,243 | 3,337,137
Payments to suppliers and employees | | (2,982,243) | (2,341,589)
Net cash provided by operating activities | | 304,000 | 995,548

CASH FLOWS FROM INVESTING ACTIVITIES: | | |
Acquisition of intangible assets | | - | (30,450)
Payment for term deposits | | (250,000) | (550,000)
Proceeds from leasehold improvements | | - | 5,849
Net cash used in investing activities | | (250,000) | (574,601)

Net increase in cash and cash equivalents held | | 54,000 | 420,947
Cash and cash equivalents at beginning of year | | 1,435,550 | 1,014,603
Cash and cash equivalents at end of financial year | 6 | 1,489,550 | 1,435,550

The financial report covers Australian Network on Disability Limited as an individual entity. Australian Network on Disability Limited is a not-for-profit Company limited by guarantee, incorporated and domiciled in Australia. 
1	Basis of Preparation
The 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-profit Commission Act 2012.
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. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated.
The financial statements have been prepared on an accruals basis and are based on historical costs modified, where applicable, by the measurement at fair value of selected non‑current assets, financial assets and financial liabilities.
Significant accounting policies adopted in the preparation of these financial statements are presented below and are consistent with prior reporting periods unless otherwise stated.
2	Summary of Significant Accounting Policies

(a)	Revenue and other income
Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the Company and specific criteria relating to the type of revenue as noted below, has been satisfied.
Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discounts and rebates.
All revenue is stated net of the amount of goods and services tax (GST). 
Rendering of services
Revenue in relation to rendering of services is recognised depending on whether the outcome of the services can be estimated reliably.  If the outcome can be estimated reliably then the stage of completion of the services is used to determine the appropriate level of revenue to be recognised in the period.
If the outcome cannot be reliably estimated, then revenue is recognised to the extent of expenses recognised that are recoverable. 
Other income
Other income is recognised on an accruals basis when the Company is entitled to it.

(a)	Revenue and other income (cont’d)
Subscriptions

Revenue from the provision of annual membership subscriptions is recognised on a straight line basis on the anniversary of the membership. 
(b)	Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, demand deposits and short‑term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
Bank overdrafts also form part of cash equivalents for the purpose of the statement of cash flows and are presented within current liabilities on the statement of financial position.
(c)	Employee benefits
Provision is made for the Company's liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be wholly settled within one year have been measured at the amounts expected to be paid when the liability is settled.
Employee benefits expected to be settled more than twelve months after the end of the reporting period have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements. Cashflows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cashflows. Changes in the measurement of the liability are recognised in profit or loss.
Employee benefits are presented as current liabilities in the statement of financial position if the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date regardless of the classification of the liability for measurement purposes under AASB 119.
(d)	Property, Plant and Equipment
Property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. 
The depreciable amount of all fixed assets is depreciated on a reducing balance basis over the assets useful life to the Company, commencing from the time the asset is ready for use, as follows:
Office Equipment | 2.5 ‑ 5 years
Leasehold Improvements | 5 years
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting 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. 

Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are charged as expenses on a straight‑line basis over the life of the lease term. 
Lease incentives under operating leases are recognised as a liability and amortised on a straight‑line basis over the life of the lease term.
(f)	Goods and Services Tax (GST)
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).
Receivables and payable are stated inclusive of GST.  
The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the statement of financial position.
Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.
(g)	Trade and other payables
The Company measure trade and other payables initially at fair value less transaction costs, subsequently measured at amortised cost using the effective interest rate method.
These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
(h)	Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for impairment. Trade receivables are generally due for settlement no more than 30 days from the date of recognition.
Impairment of trade receivables has been determined using the simplified approach in AASB 9 which uses an estimation of lifetime expected credit losses. The Company has determined the probability of non‑payment of the receivable and multiplied this by the amount of the expected loss arising from default.
The amount of the impairment (if any) is recorded in a separate allowance account with the loss being recognised in finance expense. Once the receivable is determined to be uncollectible then the gross carrying amount is written off against the associated allowance.
(i)	Impairment of non‑financial assets
At the end of each reporting period the Company determines whether there is an evidence of an impairment indicator for non‑financial assets.
Where this indicator exists and regardless for goodwill, indefinite life intangible assets and intangible assets not yet available for use, the recoverable amount of the asset is estimated.

Where assets do not operate independently of other assets, the recoverable amount of the relevant cash‑generating unit (CGU) is estimated.
The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal and the value in use.  Value in use is the present value of the future cash flows expected to be derived from an asset or cash‑generating unit.
Where the recoverable amount is less than the carrying amount, an impairment loss is recognised in profit or loss.
Reversal indicators are considered in subsequent periods for all assets which have suffered an impairment loss, except for goodwill.
(j)	Intangible assets
Software
Software has a finite life and is carried at cost less any accumulated amortisation and impairment losses. It has an estimated useful life of between one and three years.
Amortisation
Amortisation is recognised in profit or loss on a straight‑line basis over the estimated useful lives of intangible assets, from the date that they are available for use.
Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
(k)	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 result, and that outflow can be reliably measured. 
Provisions are measured at the present value of management's best estimate of the outflow required to settle the obligation at the end of the reporting period. The discount rate used is a pre‑tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the unwinding of the discount is taken to finance costs in the statement of profit or loss and other comprehensive income.

(l)	Adoption of new and revised accounting standards
The Company has adopted all of the new or amended Accounting Standards and Interpretations issues by the Australian Accounting Standards Board ("AASB") that are mandatory for the current reporting period.
AASB 9 Financial Instruments
The Company has adopted AASB 9 from 1 July 2018. The standard introduced new classification and measurement models for financial assets. A financial asset shall be measured at amortised cost if it is held within a business model whose objective is to hold assets in order to collect contractual cash flows which arise on specified dates and that are solely principal and interest. A debt investment shall be measured at fair value through other comprehensive income if it is held within a business model whose objective is to both hold assets in order to collect contractual cash flows which arise on specified dates that are solely principal and interest as well as selling the asset on the basis of its fair value. All other financial assets are classified and measured at fair value through profit or loss unless the entity makes an irrevocable election on initial recognition to present gains and losses on equity instruments (that are not held‑for‑trading or contingent consideration recognised in a business combination) in other comprehensive income ('OCI'). Despite these requirements, a financial asset may be irrevocably designated as measured at fair value through profit or loss to reduce the effect of, or eliminate, an accounting mismatch. For financial liabilities designated at fair value through profit or loss, the standard requires the portion of the change in fair value that relates to the entity's own credit risk to be presented in OCI (unless it would create an accounting mismatch). New simpler hedge accounting requirements are intended to more closely align the accounting treatment with the risk management activities of the entity. New impairment requirements use an 'expected credit loss' ('ECL') model to recognise an allowance. Impairment is measured using a 12‑month ECL method unless the credit risk on a financial instrument has increased significantly since initial recognition in which case the lifetime ECL method is adopted. For receivables, a simplified approach to measuring expected credit losses using a lifetime expected loss allowance is available.
The adoption of this standard did not have any effect on the financial performance or position of the Company.
(m)	New Accounting Standards and Interpretations in future periods
The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods. The Company has decided against early adoption of these Standards. The following summarises those future requirements, and their impact on the Company where the standard is relevant:
AASB 15 Revenue from Contracts with Customers (applicable from 1 January 2019)
AASB 15 replaces AASB 11 Construction Contracts, AASB 18 Revenue and related Interpretations. The core principle of AASB 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services.
An entity recognises revenue in accordance with that core principle by applying the following steps:
1. Identify the contract(s) with a customer
2. Identify the performance obligations in the contract
3. Determine the transaction price
4. Allocate the transaction price to the performance obligations in the contract
5. Recognise revenue when (or as) the entity satisfies a performance obligation

The Company has undertaken a detailed assessment of the impact of AASB 15. Based on this assessment, it has concluded that there will be no material impact upon the adoption of this standard.
AASB 1058 Income for Not‑for‑Profit Entities (applicable from 1 January 2019)
AASB 1058 supersedes all the income recognition requirements relating to private sector NFP entities, and the majority of income recognition requirements relating to public sector NFP entities, previously in AASB 1004 Contribution. The timing of income recognition depends on whether such a transaction gives rise to a liability or other performance obligation (a promise to transfer a good or service), or a contribution by owners, related to an asset (such as cash or another asset) received by an entity.
AASB 1058 applies when a NFP entity receives volunteer services or enters into other transactions where the consideration to acquire an asset is significantly less than the fair value of the asset principally to enable the entity to further its objectives. In the latter case, the entity recognises and measures the asset at fair value in accordance with the applicable Australian Accounting Standard (e.g. AASB 116 Property, Plant and Equipment). 
Upon initial recognition of the asset, this Standard requires the entity to consider whether any other financial statement elements (called ‘related amounts’) should be recognised in accordance with the applicable Accounting Standard, such as:
(a) contributions by owners; 
(b) revenue, or a contract liability arising from a contract with a customer; 
(c) a lease liability; 
(d) a financial instrument; or 
(e) a provision. 
If the transaction is a transfer of a financial asset to enable an entity to acquire or construct a recognisable non‑financial asset to be controlled by the entity (i.e. an in‑substance acquisition of a non‑financial asset), the entity recognises a liability for the excess of the fair value of the transfer over any related amounts recognised. The entity recognises income as it satisfies its obligations under the transfer similarly to income recognition in relation to performance obligations under AASB 15. 
If the transaction does not enable an entity to acquire or construct a recognisable non‑financial asset to be controlled by the entity, then any excess of the initial carrying amount of the recognised asset over the related amounts is recognised as income.
The Company has undertaken a detailed assessment of the impact of AASB 1058. Based on this assessment, it has concluded that there will be no material impact upon the adoption of this standard as it does not deal with these types of transactions.

AASB 16 Leases (applicable from 1 January 2019)
AASB 16 provides a comprehensive model for the identification of lease arrangements and their treatment in the financial statements of both lessors and lessees. In respect of the lessee accounting, the standard introduces a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases with the lease term of more than 12 months, unless the underlying asset has a low value. At the commencement date of the lease, the lessee is required to recognise a right of use asset at cost, which consists of the amount of the initial measurement of the lease liability, plus any lease payments made to the lessor at or before the commencement date less any lease incentives received, the initial estimate of restoration costs and any initial direct costs incurred by the lessee. A lease liability is initially recognised at the present value of the lease payments that are not paid at that date. Subsequently, the right of use asset is measured at cost less any accumulated depreciation and any accumulated impairment losses and adjusted for any remeasurement of the lease liability. Lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payment made, and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in substance fixed lease payments. Depreciation and impairment expenses, if any, on the right of use asset will be charged to profit or loss following the requirements of AASB 116 Property, Plant and Equipment, while interest accrual on lease liability will be charged to profit or loss. AASB 16 will supersede the current lease standards including AASB 117 Leases and the related Interpretations when it becomes effective.
AASB 16 will affect primarily the accounting for the Company's operating leases. As at the reporting date, the Company had non‑cancellable operating leases for it's Sydney and Melbourne offices expiring during October 2019 and August 2022, respectively. The impact upon application of this standard will be assessed when the Company enters into new office lease arrangements for it's Sydney office. As for the Melbourne office, if AASB 16 is applied on 1 July 2019, this would result in an increase in the value of Fixed Assets of approximately $149,000, and the creation of a lease liability of an equivalent amount.
3	Critical Accounting Estimates and Judgments
The directors make estimates and judgements during the preparation of these financial statements regarding assumptions about current and future events affecting transactions and balances.
These estimates and judgements are based on the best information available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates.
There were no significant estimates and judgements made in preparing these financial statements.

4	Revenue and Other Income
| | 2019 $ | 2018 $
Sales revenue | | |
Provision of services | | 3,346,376 | 2,852,478
Other income | | |
Commissions | | |
Interest received | | 2,960 | 2,347
| | 28,351 | 16,593
| | 31,311 | 18,940
5	Result for the Year
The result for the year includes the following specific expenses:
Depreciation plant and equipment | | 112,680 | 34,821
Rental expense relating to operating leases | | 141,142 | 131,470
Amortisation expense | | 20,122 | 26,667
6	Cash and cash equivalents
Cash on hand | | 585 | 161
Cash at bank | | 1,488,965 | 1,435,389
| | 1,489,550 | 1,435,550
7	Trade and other receivables
CURRENT | | |
Trade receivables | | 959,027 | 785,126
Term deposits | | 1,200,000 | 950,000
Other receivables | | 15,615 | 8,094
| | 2,174,642 | 1,743,220
NON‑CURRENT | | |
Deposits | | 41,320 | 41,320

8	Property, plant and equipment
| 2019 $ | 2018 $
PLANT AND EQUIPMENT | |
Furniture, fixtures and fittings | |
At cost | 73,376 | 73,376
Accumulated depreciation | (66,108) | (46,633)
| 7,268 | 26,743
Leasehold Improvements | |
At cost | 137,328 | 137,328
Accumulated amortisation | (117,318) | (24,113)
Total leasehold improvements | 20,010 | 113,215
Total property, plant and equipment | 27,278 | 139,958

Movements in carrying amounts of property, plant and equipment
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year:
| Furniture, Fixtures and Fittings $ | Leasehold Improvements $ | Total $
Year ended 30 June 2019 | | |
Balance at the beginning of year | 26,743 | 113,215 | 139,958
Depreciation expense | (19,475) | (93,205) | (112,680)
Balance at the end of the year | 7,268 | 20,010 | 27,278

9	Intangible Assets
Computer software | |
Cost | 118,700 | 118,700
Accumulated amortisation and impairment | (93,933) | (73,811)
Net carrying value | 24,767 | 44,889
10	Trade and other payables
CURRENT | | |
Trade creditors and accruals | | 269,614 | 381,506
Payroll liabilities | | 44,335 | 53,055
| | 313,949 | 434,561
11	Provisions
CURRENT | |
Employee benefits | 79,019 | 59,587

12	Other Financial Liabilities
| | 2019 $ | 2018 $
CURRENT | | |
Deferred income | | 1,661,261 | 1,571,283
13	Capital and Leasing Commitments
Operating Leases
Minimum lease payments under non‑cancellable operating leases: | | |
‑ not later than one year | | 74,027 | 100,370
‑ between one year and five years | | 60,756 | 46,030
| | 134,783 | 146,400
14	Key Management Personnel Disclosures
The total remuneration paid to key management personnel of the Company is $479,442 (2018: $ 443,186).
15	Related Parties
Transactions with related parties
Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.
There were no transactions with related parties during the financial year.

16	Financial Risk Management
The main risks Australian Network on Disability Limited is exposed to through its financial instruments are credit risk, liquidity risk, and market risk consisting of interest rate risk.
The Company's financial instruments consist mainly of deposits with banks, and accounts receivable and payable.
The totals for each category of financial instruments, measured in accordance with AASB 9 as detailed in the accounting policies to these financial statements, are as follows:

| 2019 $ | 2018 $

Financial Assets: | |
Cash and cash equivalents | 1,489,550 | 1,435,550
Trade and other receivables | 2,174,642 | 1,743,220
Total Financial Assets | 3,664,192 | 3,178,770
Financial Liabilities: | |
Financial liabilities at amortised cost | |
Trade and other payables | 313,949 | 434,561
Other liabilities | 1,661,261 | 1,571,283
Total Financial Liabilities | 1,975,210 | 2,005,844
17	Events after 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.
18	Contingencies
In the opinion of the Directors, the Company did not have any contingencies at 30 June 2019 (30 June 2018: None).
19	Company Details
The registered office of and principal place of business of the Company is:
Australian Network on Disability
Level 3, 80 Clarence Street
Sydney NSW 2000

The directors have determined that the Company is not a reporting entity and that these special purpose financial statements should be prepared in accordance with the accounting policies described in Note 2 of the financial statements.
The directors of the Company declare that:

1. 	The financial statements and notes, as set out on pages 9 to 23, are in accordance with the Australian Charities and Not-for-profit Commission Act 2012 and:
(a)	comply with Australian Accounting Standards as stated in Note 2; and
(b)	give a true and fair view of the financial position as at 30 June 2019 and of the performance for the year ended on that date of the Company is in accordance with the accounting policies described in Note 2 of the financial statements.

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

Director ..................................................................
Peter Wilson AM

Director ..................................................................

Dated 

Independent Audit Report 
to the members of Australian Network on Disability Limited

Report on the Financial Report
Opinion

We have audited the accompanying financial report of Australian Network on Disability Limited (the Company), 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, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration. 

In our opinion, the financial report of Australian Network on Disability Limited is in accordance with the Australian Charities and Not-for-profit Commission Act 2012, including:

i)	Giving 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; and

ii)	Complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Australian Charities and Not-for-profit Commission Regulation 2013.
Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. Our responsibilities under those standards are further described in the Auditor’s Responsibility section of our report. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 
Independence

We are independent of the Company in accordance with the Australian Charities and Not-for-profit Commission Act 2012 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.
Directors’ Responsibilities for the Financial Report

The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Australian Charities and Not-for-profit Commission Act 2012 and for such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using a going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report

Our responsibility is to express an opinion on the financial report based on our audit. 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 and auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individual or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
Auditor’s Responsibilities for the Audit of the Financial Report (cont’d)

As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report.

The procedures selected depend on the auditor’s judgement, including assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. 

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report.

We conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

We evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion. 

We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 

The Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements. We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. 

From the matters communicated with the Directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

PKF

Scott Tobutt 
Partner

XX October 2019
Sydney, NSW

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