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Notes to and Forming Part of the Consolidated Financial Report

Note

1

:

Summary of Significant Accounting Policies

Note

2

:

Expenses

Note

3

:

Income

Note

4

:

Financial Assets

Note

5

:

Non-financial assets

Note

6

:

Liabilities

Note

7

:

Reserves

Note

8

:

Cash Flow Reconciliation

Note

9

:

Directors' Remuneration

Note

10

:

Related Party Disclosures

Note

11

:

Key Management Personnel

Note

12

:

Members' Funds

Note

13

:

Remuneration of Auditors

Note

14

:

Commitments

Note

15

:

Financial Instruments

Note

16

:

Contingent Liabilities and Contingent Assets

Note

17

:

Aggregate Assets and Liabilities

Note

18

:

Parent Entity Information

Note

19

:

Additional Company Information

Note 1 : Summary of Significant Accounting Policies

1.1 Objective of the Sports Foundation

The objective of the Sports Foundation is to raise money for the development of sport in Australia.

The Sports Foundation was established by Section 10 of the Australian Sports Commission Act 1989.

1.2 Basis of Preparation of the Financial Report

The Sports Foundation is a Commonwealth company as defined in the Public Governance, Performance and Accountability Act 2013 and is subject to the Corporations Act 2001.

The consolidated financial report represents those of the Sports Foundation and controlled entities (the “consolidated entities” or “Group”).

This consolidated financial report is a General Purpose Financial Report prepared in accordance with the Corporations Act 2001 and the Australian Accounting Standards and Interpretations of the Australian Accounting Standards Board. The Sports Foundation is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. Material accounting policies adopted in the preparation of this consolidated financial report are presented below and have been consistently applied unless stated otherwise.

This financial report also complies with the Australian Equivalents to International Financial Reporting Standards (AIFRS) as issued by the Australian Accounting Standards Board and Interpretations.

The consolidated financial report has been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. These accounting policies have been consistently applied and are consistent with those of the previous year. The consolidated financial report is presented in Australian dollars and values and rounded to the nearest dollar.

Unless alternative treatment is specifically required by an accounting standard, assets and liabilities are recognised in the Consolidated Statement of Financial Position when, and only when, it is probable that future economic benefits will flow to the Foundation or a future sacrifice of economic benefits will be required, and the amounts of the assets or liabilities can be reliably measured. Assets and liabilities that are unrecognised are reported in the Commitments or the Contingencies note. Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Consolidated Statement of Comprehensive Income when, and only when, the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

The consolidated financial report was authorised by the Directors of the Sports Foundation on 13 November 2019.

Basis of consolidation

The consolidated financial report incorporates the assets, liabilities and results of all entities controlled by the Sports Foundation as at 30 June 2019.

Controlled entities are all entities (including structured entities) over which the parent entity has control. Control is established when the parent entity is exposed to or has rights to variable returns from its involvement with the Group and has the ability to affect those returns through its power to direct the relevant activities of the Group. Controlled entities are fully consolidated from the date on which control is transferred to the parent entity. They are deconsolidated from the date that control ceases.

Inter-entity transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.

The Australian Sports Foundation Limited is the parent entity of ASF Community Sports Fund Pty Ltd and the ultimate controlling entity of Australian Sports Foundation Charitable Trust Fund. The purpose of incorporation of ASF Community Sports Fund Pty Ltd was to act as the Corporate Trustee for the Australian Sports Foundation Charitable Trust Fund (ASF Charitable Fund). The Australian Sports Foundation Limited being the sole shareholder of ASF Community Sports Fund Pty Ltd appoints the directors of the Corporate Trustee.

1.3 New accounting standards

The Group has adopted all of the new or amended Accounting standards and interpretations issued by the Australian Accounting Standard Board (AASB) that are mandatory for the current reporting period.

No accounting standards have been adopted earlier than the application date as stated in the standard.

The Group applied AASB 9 Financial instruments (as revised in July 2014) and the related consequential amendments to other AASBs from 1 July 2018. The adoption of AASB 9 has resulted in the reclassification of financial assets and financial liabilities as outlined in the following table but has not resulted in any impacts on the financial position or comprehensive income of the Group in the current or previous years.

The new accounting policies adopted in relation to the classification and measurements of financial instruments are provided in Note 1.9 to the consolidated financial report.

In relation to the impairment of financial assets, AASB 9 requires an expected credit loss model as opposed to an incurred credit loss model under AASB 139. The expected credit loss model requires the Group to account for expected credit losses and changes in those expected credit losses at each reporting date to reflect changes in credit risk since initial recognition.

The following table represents the classification and measurement of financial assets and financial liabilities under AASB 9 and AASB 139 at the date of initial application, 1 July 2018.

Original

measurement category under

New

measurement category under

Original carrying amount under

AASB 139

Adjustment recognised under

AASB 9

New carrying amount under

AASB 9

AASB 139

AASB 9

$

$

$

Cash and cash equivalents

Loans and receivables

Financial assets at amortised cost

23,064,614

-

23,064,614

Trade and other

receivables

Loans and receivables

Financial assets at amortised cost

832,490

-

832,490

Payables

Financial liabilities at amortised cost

Financial liabilities at amortised cost

19,394,700

-

19,394,700

Future Australian Accounting Standard Requirements

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective and have not been adopted by the Group for the annual reporting period ended 30 June 2019 are as follows:

AASB 15 Revenue from Contracts with Customers

This standard is applicable to annual reporting periods beginning on or after 1 January 2019. The standard provides a single standard for revenue recognition. The core principle of the standard is that an entity will recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard will require: contracts (either written, verbal or implied) to be identified, together with the separate performance obligations within the contract; determine the transaction price, adjusted for the time value of money excluding credit risk; allocation of the transaction price to the separate performance obligations on a basis of relative stand-alone selling price of each distinct good or service, or estimation approach if no distinct observable prices exist; and recognition of revenue when each performance obligation is satisfied. Credit risk will be presented separately as an expense rather than adjusted to revenue. For goods, the performance obligation would be satisfied when the customer obtains control

of the goods. For services, the performance obligation is satisfied when the service has been provided, typically for promises to transfer services to customers. For performance obligations satisfied over time, an entity would select an appropriate measure of progress to determine how much revenue should be recognised as the performance obligation is satisfied. Contracts with customers will be presented in an entity’s statement of financial position as a contract liability, a contract asset, or a receivable, depending on the relationship between the entity’s performance and the customer’s payment. Sufficient quantitative

and qualitative disclosure is required to enable users to understand the contracts with customers; the significant judgments made in applying the guidance to those contracts; and any assets recognised from the costs to obtain or fulfil a contract with a customer. The Group will adopt this standard from 1 July 2019 and has assessed that there will be no material impact upon adopting the standard.

AASB 1058 Income of Not-for-Profit Entities

This standard is applicable to annual reporting periods beginning on or after 1 January 2019 and is applies to transactions that do not arise from enforceable contracts with customers involving performance obligations

The significant accounting requirements of AASB 1058 are as follows:

  • Income arising from an excess of the initial carrying amount of an asset over the related contributions by owners, increases in liabilities, decreases in assets and revenue should be immediately recognised in profit or loss. For this purpose, the assets, liabilities and revenue are to be measured in accordance with other applicable Standards.
  • Liabilities should be recognised for the excess of the initial carrying amount of a financial asset (received in a transfer to enable the entity to acquire or construct a recognisable non-financial asset that is to be controlled by the entity) over any related amounts recognised in accordance with the applicable Standards. The liabilities must be amortised to profit or loss as income when the entity satisfies its obligations under the transfer.

A not-for-profit entity may elect to recognise volunteer services or a class of volunteer services as an accounting policy choice if the fair value of those services can be measured reliably, whether or not the services would have been purchased if they had not been donated. Recognised volunteer services should be measured at fair value and any excess over the related amounts (such as contributions by owners or revenue) immediately recognised as income in profit or loss.

The transitional provisions of this Standard permit an entity to either: restate the contracts that existed in each prior period presented in accordance with AASB 108 (subject to certain practical expedients); or recognise the cumulative effect of retrospective application to incomplete contracts on the date of

initial application. For this purpose, a completed contract is a contract or transaction for which the entity has recognised all of the income in accordance with AASB 1004 Contributions. The Group will adopt this standard from 1 July 2019 and has assessed that there will be no material impact upon adopting the standard.

AASB 16 Leases

This standard is applicable to annual reporting periods beginning on or after 1 January 2019. The standard replaces AASB 117 ‘Leases’ and for lessees will eliminate the classifications of operating leases and finance leases. Subject to exceptions, a ‘right-of-use’ asset will be capitalised in the statement of financial position, measured at the present value of the unavoidable future lease payments to be made over the lease term. The exceptions relate to short-term leases of 12 months or less and leases of low-value assets (such as personal computers and small office furniture) where an accounting policy choice exists whereby either

a ‘right-of-use’ asset is recognised or lease payments are expensed to profit or loss as incurred. A liability corresponding to the capitalised lease will also be recognised, adjusted for lease prepayments, lease incentives received, initial direct costs incurred and an estimate of any future restoration, removal or dismantling costs. Straight-line operating lease expense recognition will be replaced with a depreciation charge for the leased asset (included in operating costs) and an interest expense on the recognised lease liability (included in finance costs). In the earlier periods of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under AASB 117. For classification within the statement of cash flows, the lease payments will be separated into both a principal (financing activities) and interest (either operating or financing activities) component. For lessor accounting, the standard does not substantially change how a lessor accounts for leases. The Group will adopt this standard from 1

July 2019 and has assessed that there will be no material impact upon adoption of the standard.

1.4 Significant accounting and judgement estimates

In the process of applying the accounting policies listed in the note, no judgements have been made that have a significant impact on the amounts recorded in the consolidated financial report.

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

1.5 Revenue

Interest revenue is recognised using the effective interest method as set out in AASB 9 Financial Instruments: Recognition and Measurement.

Revenue arising from the contribution of assets in the form of donations and grants to the Group is recognised when:

  • the Group obtains control of the contribution or has the right to receive the contribution unconditionally;
  • it is probable that the economic benefits comprising the contribution will flow to the Group;
  • the amount of the contribution can be reliably measured.

The Group receives donations from individual and corporate philanthropists and distributions from ancillary funds. These donations create the funding pool for the Group to make discretionary grants to eligible organisations in respect of sporting projects. Donation revenue is recognised when the Group receives the transfer of funds from the donor.

The Group retains a small percentage of donations to cover administrative overheads. The amounts retained are recognised immediately on receipt of the donation.

1.6 Employee Benefits

Liabilities for short-term employee benefits (as defined in AASB 119 Employee Benefits) and termination benefits expected within twelve months of the end of the reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Leave

The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Group is estimated to be less than the annual entitlement for sick leave. The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the Group’s employer superannuation contribution rates to the extent that the leave is unlikely to be taken during service rather than paid out on termination. The liability for long service leave has been determined based on the present value of future payments discounted using market yields at the end of the reporting period of government bonds with terms and currencies that match, as closely as possible, the estimated future cash outflows.

Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.

Separation and redundancy

A liability is recognised for separation or redundancy benefit payments. The Group recognises a liability for termination when it has developed a detailed formal plan for the terminations or when an offer is made to an employee and is accepted.

1.7 Grants

The Group makes grant payments to registered sporting, community, educational and other eligible organisations, and athletes to facilitate the development of sport in Australia. Grants are made at the discretion of the Group and only after meeting criteria set out in its guidelines. Unissued Grants related to the current financial year are recognised as a liability in Note 6C at 30 June 2019.

1.8 Cash

Cash and cash equivalents includes cash on hand and deposits held at call with a bank or financial institution that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. Cash is recognised at its nominal amount.

1.9 Financial instruments

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions to the instrument. For financial assets, this is the date that the Group commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).

Financial instruments (except for trade receivables) are initially measured at fair value plus transaction costs, except where the instrument is classified “at fair value through profit or loss”, in which case transaction costs are expensed to profit or loss immediately. In most circumstances trade receivables are initially measured at the transaction price.

Classification and subsequent measurement

Financial instruments are subsequently measured at either fair value or amortised cost using the effective interest rate method. The subsequent measurement depends on the classification of the financial instrument as described below.

Fair value represents the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.

The effective interest method is used to allocate interest income or interest expense over the relevant period.

Financial assets

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

Financial assets that meet the following conditions are subsequently measured at amortised cost:

  • the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
  • the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets that meet the following conditions are subsequently measured at fair value through other comprehensive income (FVTOCI):

  • the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets; and
  • the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

By default, all other financial assets are subsequently measured at fair value through profit or loss (FVTPL).

Despite the above, the Group may make the following irrevocable elections/designation at initial recognition of a financial asset:

  • the Group may irrevocably elect to present subsequent changes in fair value of an equity instrument in other comprehensive income if certain criteria are met; and
  • the Group may irrevocably designate a financial asset that meets the amortised cost or FVTOCI criteria as measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch.

Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL.

Impairment of financial assets

The Group recognises a loss allowance for expected credit losses on financial assets that are measured at amortised cost or at FVTOCI. No impairment loss is recognised for investments in equity instruments. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial asset.

The Group recognises lifetime expected credit losses for trade receivables. The expected credit losses on these financial assets are estimated based on the Group’s historical credit loss experience adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the future direction of conditions at the reporting date, including time value of money where appropriate.

1.10 Acquisition of Assets

Assets are recorded at cost on acquisition. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus, transaction costs where appropriate. Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition.

1.11 Property, plant and equipment

Asset recognition threshold

Purchases of property, plant and equipment are recognised at cost in the Consolidated Statement of Financial Position, except for purchases costing less than $1,000 which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total or are purchases of computer equipment). The initial cost of an asset includes an estimate of the discounted fair value of dismantling and removing the item and restoring the site on which it is located.

Depreciation

Depreciable property, plant and equipment assets are written off to their estimated residual values over their estimated useful lives to the Foundation using, in all cases, the straight-line method of depreciation. Depreciation rates applying to each sub-class of depreciable asset are based on the following useful lives:

  • Computers 3 to 4 years
  • Furniture and Equipment 4 to 10 years.

Impairment

All assets were assessed for impairment at 30 June 2019 and none were found to be impaired.

1.12 Intangibles

The Group’s intangibles comprise purchased software and internally generated software for internal use. Purchase of intangibles are recognised at cost in the Consolidated Statement of Financial Position, except for purchases costing less than $1,000 which are expensed in the year of acquisition (other than when they form part of a group of similar items which are significant in total). These assets are carried at cost less accumulated amortisation and accumulated impairment losses. Intangibles are amortised on a straight- line basis over its anticipated useful life. The useful lives of the Group’s intangibles are 2 to 4 years.

1.13 Comparative figures

Comparative figures have been adjusted to conform to changes in presentation in the consolidated financial report where required.

1.14 Contingent Liabilities and Contingent Assets

Contingent liabilities and contingent assets are not recognised in the Consolidated Statement of Financial Position but are reported in the notes. They may arise from uncertainty as to the existence of an asset

or liability or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

1.15 Taxation

The Sports Foundation is a not-for-profit organisation and is exempt from income tax under Section 50–45 of the Income Tax Assessment Act 1997 and sub sections 51(1) of the Australian Sports Commission Act 1989.

The Sports Foundation is not exempt from Fringe Benefits Tax (FBT) and Goods and Services Tax (GST).

1.16 Leases

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are recognised as an expense on a straight-line basis over the lease term.

Note 2: Expenses

2019

2018

$

$

Note 2A: Employee Benefits

Salaries and related expenses

1,499,631

1,472,438

Total employee benefits

1,499,631

1,472,438

Note 2B: Suppliers

Goods and services

Provision of goods and services

627,861

695,450

Sundry expenses

2,736

8,684

Bank charges

79,673

58,456

Total supplier expenses

710,270

762,590

Note 2C: Depreciation and amortisation

Depreciation

Furniture and equipment

3,513

3,486

Computer hardware

6,944

13,818

Total depreciation

10,457

17,304

Amortisation

Intangibles - Computer software

7,303

8,408

Intangibles - Website development

82,673

103,222

Total amortisation

89,976

111,630

Total depreciation and amortisation

100,433

128,934

Note 3: Income

2019

2018

$

$

Own-Source Revenue

Note 3A: Sale of Goods and Rendering of Services

Net donations

39,872,935

42,433,367

Retained donations

2,177,446

2,299,265

Gross donations

42,050,381

44,732,632

Sponsorship

212,823

34,773

Grants

1,486,000

118,354

Total sale of goods and rendering of services

43,749,204

44,885,759

Note 3B: Interest

Deposits

65,694

46,965

Total interest

65,694

46,965

Note 4: Financial Assets

2019

2018

$

$

Note 4A: Cash and Cash Equivalents

Cash on hand or on deposit

18,203,393

23,064,614

Total cash and cash equivalents

18,203,393

23,064,614

Note 4B: Trade and Other Receivables

Goods and services in connection with

External parties

209,093

588,382

Total receivables for goods and services

209,093

588,382

Other receivables:

GST receivable from the Australian Taxation Office

457,387

244,108

Interest

9,399

2,545

Total other receivables

466,786

246,653

Total trade and other receivables (gross)

675,879

835,035

Receivables are expected to be recovered in:

No more than 12 months

675,879

835,035

More than 12 months

-

-

Total trade and other receivables (net)

675,879

835,035

Note 5: Non-Financial Assets

2019

2018

$

$

Note 5A: Property Plant & Equipment

Furniture, fittings, plant and equipment:

At fair value

23,766

23,766

Accumulated depreciation

(13,157)

(9,644)

Total furniture, fittings plant and equipment

10,609

14,122

Note 5B: Computer hardware

At fair value

59,385

50,058

Accumulated depreciation

(49,050)

(42,106)

Total computer hardware

10,335

7,952

Note 5C: Intangible assets

Software and website development:

At cost

630,031

508,430

Accumulated amortisation

(450,207)

(360,231)

Total software and website development

179,824

148,199

Note 5D: Reconciliation of the opening and closing balance of non-financial assets (2018/19)

Furniture, Fittings and Plant equipment

Computer Hardware

Intangible assets

Total

As at 1 July 2018

14,122

7,952

148,199

170,273

Additions

-

9,327

121,601

130,928

Depreciation/Amortisation

(3,513)

(6,944)

(89,976)

(100,433)

Closing balance 30 June 2019

10,609

10,335

179,824

200,768

Note 6: Liabilities

2019

2018

$

$

Note 6A: Supplier Payables

Trade creditors and accruals

73,509

77,407

73,509

77,407

Supplier payables expected to be settled within 12 months:

Related entities

-

-

External parties

73,509

77,407

Total supplier payables

73,509

77,407

Note 6B: Other Payables

Employee benefits payable

29,247

36,974

Total other payables

29,247

36,974

All payables are expected to be settled in no more than 12 months.

Note 6C: Grants payable

Grants payable

12,669,711

19,280,319

Total grant provision

12,669,711

19,280,319

All grants payable are expected to be settled within one month.

Note 6D: Employee Provisions

Leave

102,220

66,213

Total employee provisions

102,220

66,213

Employee provisions are expected to be settled

No more than 12 months

74,464

48,630

More than 12 months

27,756

17,583

Total employee provisions

102,220

66,213

Note 7: Reserves

2019

2018

$

$

Reserves:

As at start of reporting period

4,625,314

3,847,466

Retained surplus/(loss)

1,621,882

777,848

As at end of reporting period

6,247,196

4,625,314

Nature and purpose of reserves

The reserves represent monies available to fund the development of Sport in Australia after deducting administration costs.

Note 8: Cash Flow Reconciliation

2019

2018

$

$

Reconciliation of cash and cash equivalents as per Consolidated Statement of Financial Position to Consolidated Cash Flow Statement

Cash and cash equivalents as per:

Consolidated Cash Flow Statement

18,203,393

23,064,614

Consolidated Statement of Financial Position

18,203,392

23,064,614

Difference

-

-

Reconciliation of net cost of services to net cash from

operating activities:

Net (cost) of contribution by services

1,621,882

777,848

1,621,882

777,848

Adjustment for non cash items

Depreciation/Amortisation

100,433

128,934

Movements in assets/liabilities

(Increase) Decrease in net receivables

159,156

(164,488)

(Increase) Decrease in prepayments

(25,539)

4,235

Increase (Decrease) in supplier payables

(3,898)

(26,181)

Increase (Decrease) in other payables

(7,727)

(36,105)

Increase (Decrease) in grants payable

(6,610,608)

4,394,299

Increase in employee provision

36,007

4,073

Net cash from operating activities

(4,730,294)

5,082,615

Note 9: Directors Remuneration

2019

2018

The number of non-executive Directors of the Sports Foundation included in these figures are shown below in the relevant remuneration bands:

$1 to $29,999

3

2

Total

3

2

Total remuneration paid to Directors

$ 29,962

$ 36,814

There are no Executive Directors of the Sports Foundation.

The Directors of the Foundation during the financial year and up to

the date of this report were:

Mr Mark William Stockwell

Appointed

1 Jul 2014

Mr Joshua Maurice Liberman

Appointed

28 Jan 2015

Ms Samantha Elizabeth Anne Pearce

Appointed

13 Dec 2016

Ms Kimberley Brennan

Appointed

23 Oct 2018

Mr Andrew James Baildon

Appointed

23 Oct 2018

Ms Gail Louise Miller

Appointed

23 Oct 2018

Ms Sally May Carbon OAM

Resigned

31 Dec 2018

Mr Timothy Patrick Sheridan

Resigned

31 Dec 2018

Note 10: Related Party Transactions

Details of Directors’ remuneration are set out in Note 9. Apart from the details enclosed in this note, no Director has entered into a contract with the Group since the end of the previous
financial year and there are no contracts involving Director’s interest existing at year end.

Directors are required to register conflicts of interest and are not part of decisions of the Board where there is a real or perceived conflict of interest.

The Group did not receive resources free of charge from the Australian Sports Commission
in the 2018–19 or in the previous financial year.

The Sports Foundation had entered into a Facilities Agreement with the Australian Sports Commission (ASC) granting access for a fee to specified facilities and services including rent of premise. The Facilities Agreement was renewed in 2016–17 for 4 years and subject to early termination by the ASC with 60 days written notice.

Note 11: Key Management Personnel

2019
($)

2018
($)

Key Management Personnel Remuneration Expense for the Reporting Period

Short-term employee benefits:

Salary

601,340

734,085

Leave accrued

14,187

25,995

Performance bonuses

Total short-term employee benefits

615,527

760,080

Post-employment benefits:

Superannuation

54,448

66,831

Total post-employment benefits

54,448

66,831

Olther long-term employee benefits:

Long service leave

7,286

4,650

Total key management personnel remuneration expenses

677,261

831,561

For the year ended 30 June 2019 there were 11 people classified as key management personnel (2018:10).


This includes; Chief Executive officer, Financial Controller, National Sales & Partnership Director and the


eight Directors that held office during 2018-19.

Note 12: Members Funds

The Sports Foundation is incorporated under the Corporations Act 2001 and is a Public Company limited by guarantee. Every member undertakes to contribute to the property of the Sports Foundation in the event of winding up to an amount not exceeding $100.

The income and property of the company shall be applied solely towards the promotion of the objectives of the company and not for distribution in any way to the members of the company.

As at 30 June 2019 the Sports Foundation has 6 members (30 June 2018: 5 members).

Note 13: Remuneration of Auditors

2019

2018

$

$

Financial statement audit services provided to the Sports Foundation

31,400

15,500

No other services were provided by the Auditors of the Financial Report.

Note 14: Commitments

2019

2018

$

$

Non-cancellable operating lease commitments

- Not later than 1 year

21,479

21,690

- Later than 1 year, not later than 5 years

20,000

41,479

Minimum lease payments payable

41,479

63,169

The Sports Foundation has three operating leases being a photocopier (the lease of the photocopier expires on 10 March 2020) and a premises agreement with the ASC for accommodation (this expires on 30 June 2021).

Note 15: Financial Instruments

2019

2018

$

$

Note 15A: Categories of Financial Instruments

Financial Assets

Cash and receivables

Cash and cash equivalents

18,203,392

23,064,614

Trade and other receivables

675,879

832,490

Total cash and receivables

18,879,271

23,897,104

Total financial assets

18,879,271

23,897,104

Financial Liabilities

Financial liabilities measured at amortised cost

Trade creditors

73,509

77,407

Other payables

29,247

36,974

Grants payables

12,669,711

19,280,319

Total financial liabilities measured at amortised cost

12,772,467

19,394,700

Total financial liabilities

12,772,467

19,394,700

Note 15B: Net Gains or Losses on Financial Assets

Bank deposits

Interest revenue

65,694

44,420

Net gains on bank deposits

65,694

44,420

Net gains on financial assets

65,694

44,420

Note 15C: Fair Value of Financial Instruments

The fair value of all financial assets and liabilities of the Group approximates the carrying value. Financial assets and liabilities are disclosed in the Consolidated Statement of Financial Position and related notes.

Note 15D: Credit Risk

The Group is exposed to minimal credit risk. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. The carrying amounts of financial assets represent the maximum credit exposure. The Group has assessed the risk of the default on payment and has allocated $Nil in 2019 (2018: $Nil) to an impairment loss. The Group has policies and procedures in place to manage its credit risk and holds no collateral to mitigate against credit risk.
The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.
The Group considers a financial asset to be in default when:-the borrower is unlikely to pay its credit obligations to the Group in full-the financial asset is more than 90 days past due.
At each reporting date, the Group assesses whether financial assets carried at amortised cost are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.
The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For individual customers, the Group has a policy of writing off the gross carrying amount when the financial asset is 180 days past due based on historical experience of recoveries of similar assets. For corporate customers, the Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.

Note 15E: Liquidity risk

The Sports Foundation’s financial liabilities are payables. The exposure to liquidity risk is based on the notion that the Sports Foundation will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to the internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations.

The table below reflects an undiscounted contractual maturity analysis for financial liabilities.

The cash flows realised from the financial assets reflect management’s expectations as to the timing of realisation. Actual timing may therefore differ from that disclosed. The timing of cash flows presented in the table to settle financial liabilities reflects the earliest contractual settlement dates.

Non-derivative financial liabilities and financial asset maturity analysis

Within 1 year

Total

2019

2018

2019

2018

$

$

$

$

Financial liabilities due for payments

Trade and other payables (excluding estimated annual leave)

12,772,467

19,394,700

12,772,467

19,394,700

Total expected outflows

12,772,467

19,394,700

12,772,467

19,394,700

Financial assets - cash flows realisable

Cash and cash equivalents

18,203,392

23,064,614

18,203,392

23,064,614

Trade and term receivables

218,492

590,927

218,492

590,927

Total anticipated inflows

18,421,884

23,655,541

18,421,884

23,655,541

Net (outflow)/inflow on financial instruments

5,649,417

4,260,841

5,649,417

4,260,841

The Sports Foundation has no derivative financial instruments in 2019 (2018:Nil)

Note 15F: Market risk

The Sports Foundation holds basic financial instruments that do not expose the organisation to certain market risks, such as ‘currency risk’ or ‘other price risk’.

Interest rate risk

The interest-bearing item on the Sports Foundation’s Statement of Financial Position is cash on deposit which is held in a bank account with a floating interest rate.

There are no interest-bearing liabilities on the Statement of Financial Position.

Note 16: Contingent Liabilities and Contingent Assets

There are no quantifiable, unquantifiable or remote contingencies identifiable for the 2017–18 financial year (2016–17; $Nil).

Note 17: Aggregate Assets and Liabilities

2019

2018

$

$

Assets are expected to be recovered in:

No more than 12 months

18,921,115

23,915,954

More than 12 months

200,768

170,273

Total assets

19,121,883

24,086,227

Liabilities are expected to be settled in:

No more than 12 months

12,846,931

19,443,330

More than 12 months

27,756

17,583

Total liabilities

12,874,687

19,460,913

Note 18: Parent Entity Information

Set out below is the supplementary information about the parent entity.

Statement of comprehensive income

2019

2018

$

$

Net contribution by services

1,709,708

777,848

Surplus/(loss) on continuing operations

1,709,708

777,848

Total comprehensive income/(loss) attributable to the Australian Government

1,709,708

777,848

Statement of financial position

2019

2018

$

$

Current assets

19,089,213

23,915,954

Non-current assets

120,768

170,273

Total assets

19,209,981

24,086,227

Current liabilities

12,846,931

19,443,330

Non-current liabilities

28,027

17,583

Total liabilities

12,874,958

19,460,913

Net Assets

6,335,023

4,625,314

Total Equity

6,335,023

4,625,314

Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity and its subsidiary are party to a deed of cross guarantee under which each
company guarantees the debts of the others.

Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2019 and 30 June 2018.

Capital commitments – Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2019 and 30 June 2018.

Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity,
as disclosed in note 1.

Note 19: Additional company Information


Australian Sports Foundation Limited is a public company limited by guarantee incorporated and
operating in Australia. It is a Deductible Gift Recipient.

Australian Sports Foundation Charitable Fund (ASFCF) is registered with the Australian Charities
and Not-for-profits Commission (ACNC) and is a Deductible Gift Recipient.

Registered name: Australian Sports Foundation Limited

ACN: 008 613 858

ABN: 27 008 613 858

Company Secretary: Ms Dhuse Manogram (resigned 24 July 2019); Mr Brett Cartwright (appointed 24 July 2019)

Registered Office:

Leverrier Street

Bruce ACT 2617

Principal place of business:

Leverrier Street

Bruce ACT 2617