Annual Report 11-12 - Fitzroy Legal Service

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Financial Reports Income Statement for the Year Ended 30 June 2012 Service Practice Publications Projects Total 2011 $ $ $ $ $ $ Income Miscellaneous grants - - - 292,856 292,856 418,916 Practice income - 196,943 - - 196,943 139,450 Sales FLS Law Handbook current edition - - 79,178 - 79,178 87,476 Sales FLS publication including previous LHB - - 4,329 - 4,329 4,480 editions Sales other publications - - 5,848 - 5,848 4,917 Postage recovered - - 8,988 - 8,988 5,692 Australian government grant - VLA 173,520 - - - 173,520 170,622 State government grant - VLA 372,340 - - - 372,340 366,420 Advanced Grant brought forward - VLA 67,701 - - 67,701 (34,527) Bank interest received 8,289 - 19,915 - 28,204 30,387 Membership - - 2,477 - 2,477 2,336 Donations, Copyrights - 1,812 294 - 2,106 6,397 Other income 4,655 24,953 - - 29,608 19,241 Total Income 626,505 223,708 121,029 292,856 1,264,098 1,221,807 Fitzroy Legal Service (Non-Reporting) Inc. ABN: 46 187 177 143 Reg no. A0002808B Balance Sheet as at 30 June 2012 Service & Practice Publications Total 2012 Total 2011 $ $ $ $ CURRENT ASSETS Cash/Cheques on hand 14,428 600 15,028 433 Operating Bank Accounts 30,085 11,529 41,614 156,570 Investment accounts 147,868 394,969 542,837 516,121 Debtors 9,023 2,943 11,966 20,734 Other Receivable 1,439 1,196 2,635 - Provision for doubtful debts (500) (1,000) (1,500) (1,500) Prepayments 1,995 - 1,995 3,679 Inventories - 4,677 4,677 3,469 Total Current Assets 204,338 414,914 619,252 699,506 NON-CURRENT ASSETS Office furniture and equipment 83,641 5,120 88,761 86,897 Less: accumulated depreciation (69,751) (4,957) (74,708) (62,481) Total Non-Current Assets 13,890 163 14,053 24,416 Less Publications Cost of Sales Production costs - - 21,081 - 21,081 23,649 Purchase of other publications - - 4,235 - 4,235 3,459 Total Publications Cost of Sales - - 25,316 - 25,316 27,108 Gross Surplus (after cost of sales) 626,505 223,708 95,713 292,856 1,238,782 1,194,699 Expenses Salaries 458,163 145,532 25,299 234,683 863,677 835,114 Superannuation 39,625 12,471 2,165 19,346 73,607 72,983 Other employment oncosts 29,952 6,523 76 2,538 39,089 33,905 Staff training/Conference 7,497 1,856 - 9,471 18,824 17,355 Staff recruitment 1,377 1,035 - 560 2,972 6,242 Rent 35,687 10,767 - 13,377 59,831 52,914 Other premises costs 7,006 3,053 - 11,288 21,347 20,090 Repairs and maintenance 7,882 2,302 - - 10,184 5,179 Insurance 1,553 437 - 437 2,427 2,373 Communications 12,275 4,167 - 8,050 24,492 24,972 Library resources and subscriptions 16,748 3,275 - 650 20,673 20,743 Office overheads 4,875 1,886 3,011 6,974 16,746 15,700 Depreciation 2,578 164 - 9,486 12,228 14,087 Minor equipment purchases 3,357 988 - 2,739 7,084 1,505 Finance, audit and accounting fees 1,771 1,186 - 486 3,443 3,420 Travel 974 2,923 - 1,757 5,654 1,305 Programming and planning 3,910 53 - 2,800 6,763 2,288 Marketing expenses - - 2,566 6,516 9,082 27,760 Distribution expenses - postage and couriers - - 5,155 - 5,155 6,292 Law Handbook on-line support/maintenance - - 3,310 8,481 11,791 33,547 Drug Users' Service Directory on-line - - 5,476 - 5,476 4,000 maintenance Other expenses - - 6,589 1,268 7,857 2,336 Client disbursements/Contractors 308 2,132 - 24,252 26,692 55,451 Bad Debts - 1,600 962 - 2,562 1,107 Stock loss/obsolete - - 677 - 677 362 Supervision - - - 21,156 21,156 10,500 Total Expenses 635,538 202,350 55,286 386,315 1,279,489 1,271,530 Net Surplus /(Deficit) (9,033) 21,358 40,427 (93,459) (40,707) (76,831) Transfer to projects 93,459 93,459 49,271 Total Changes in Equity (9,033) 21,358 40,427 - 52,752 (27,560) Balance of Equity at Beginning of Year 34,769 35,678 292,267 - 362,714 390,274 Balance of Equity at End of Year 25,736 57,036 332,694 - 415,466 362,714 The accompanying notes form part of this financial report. CURRENT LIABILITIES Trade creditors and accruals 31,525 4,567 36,092 36,238 Provision for annual leave 53,908 2,647 56,555 66,267 Provision for long service leave 55,705 - 55,705 22,509 Provision for audit fees 3,000 - 3,000 3,000 Taxes payable 2,173 - 2,173 7,721 VLA Allowable Surplus - - - 67,700 Unexpended project funds (10,855) 75,169 64,314 157,773 Total Current Liabilities 135,456 82,383 217,839 361,208 Net assets 82,772 332,694 415,466 362,714 MEMBERS’ FUND Accumulated funds prior year 70,447 292,267 362,714 390,274 Legal service (9,033) - (9,033) (61,907) Practice 21,358 - 21,358 (28,602) Publications - 40,427 40,427 62,949 Total Members' Fund 82,772 332,694 415,466 362,714 The accompanying notes form part of this financial report. Project Funds Summary for the Year Ended 30 June 2012 Project name Balance at 30 June 2011 Income Expenditure Balance at 30 June 2012 $ $ $ $ Rooming House Project 1,149 - 1,149 - VLF - Activist Guide 761 2,000 2,761 - Update Julian Gardner - Travelling 335 - 335 - Assistance Drug Outreach solicitor 2,156 70,349 73,070 (565) City of Yarra - volunteer 25,005 26,256 55,648 (4,387) co-ordination Justice for all 32 413 (1,053) 1,498 Legal Traineeship (6,907) 53,182 46,275 - 2010/2011 Legal Traineeship 17,727 31,762 (14,035) 2011/2012 LSB Law Handbook 100,102 - 100,102 - Online DOJ Law Handbook 20,112 - 20,112 - Online City of Yarra - Human (96) - (96) - Rights DOJ Law Handbook 110,000 47,760 62,240 Online (new) Law Handbook Online 12,929 - 12,929 Sponsorship/Donation VLA Capital Grant - Phone 7,990 - 6,050 1,940 & Printer (Depreciation) DHS Capital Grant - 7,133 - 2,440 4,693 Carpet (Deprecitaion) Total 157,772 292,856 386,315 64,313 6 The accompanying notes form part of this financial report.
Legal Service for the Year Ended 30 June 2012 Notes To The Financial Statements For The Year Ended 30 June 2012 2012 CLC 2012 NJC Total 2011 $ $ $ $ Income Australian government grant 173,520 - 173,520 170,622 State government grant 229,556 142,784 372,340 361,005 Other grants (including in-kind) - - - 5,415 Bank interest 8,289 - 8,289 9,604 Service Generated Income 200 4,455 4,655 - Allowable Surplus b/f 30,495 37,206 67,701 (34,527) Total Income 442,060 184,444 626,505 512,119 Expenditure Salaries 297,079 161,084 458,163 413,578 Superannuation 26,059 13,566 39,625 36,433 Other employment oncosts 19,905 10,047 29,952 32,618 Rent 35,687 - 35,687 31,306 Repairs and maintenance 7,371 511 7,882 4,001 Other premises costs 7,006 - 7,006 6,955 Staff training 4,869 2,628 7,497 5,453 Staff recruitment 1,377 - 1,377 1,978 Communications 11,237 1,038 12,275 11,685 Office overheads 4,655 220 4,875 4,357 Insurance 1,553 - 1,553 1,519 Finance, audit and accounting fees 1,601 170 1,771 1,600 Library resources and 16,065 683 16,748 15,075 subscriptions Travel 974 - 974 96 Programming and planning 2,315 1,595 3,910 1,946 Clients Disbursement 108 200 308 39 Minor equipment purchases 2,130 1,227 3,357 949 Depreciation 2,578 - 2,578 4,438 Total Expenses 442,569 192,969 635,538 574,026 Net Surplus /(Deficit) (509) (8,525) (9,033) (61,907) Cash Flow Statement For The Year Ended 30 June 2012 2012 2011 $ $ Cash flows from operating activities Receipts from government grants 613,561 502,515 Receipts from customers 330,943 259,438 Payments to suppliers and employees (1,339,450) (1,185,863) Other grants/income 294,962 425,313 Interest received 28,204 30,387 Net cash provided by operating activities (71,780) 31,790 Cash flow from investing activities Purchase of Plant & Equipment (1,865) (3,451) Net cash provided by (used in) investing activities (1,865) (3,451) Net increase (decrease) in cash held (73,645) 28,339 Cash and cash equivalents at beginning of year 673,124 644,785 Cash and cash equivalents at end of year 599,479 673,124 Reconciliation of cash flows from operations Surplus (Deficit) from ordinary activities 52,752 (27,560) Non-cash flows from ordinary activities Depreciation 12,228 14,087 Bad Debts written off 2,562 1,107 Changes in assets and liabilities (Increase)/decrease in trade debtors 3,571 (4,154) (Increase)/decrease in prepayments 1,684 1,052 (Increase)/decrease in inventories (1,208) (159) Increase/(decrease) in creditors (146) 27,837 Increase/(decrease) in tax payable (5,548) 10,123 Increase/(decrease) in employee entitlement provisions 23,484 24,201 Increase/(decrease) in VLA allowable surplus (67,700) 34,527 Increase/(decrease) in unexpended project funds (93,459) (49,271) Cash flows from operations (71,780) 31,790 Reconciliation of cash and cash equivalents Cash/Cheques on hand 15,028 433 Bank Accounts 41,614 156,570 Investment accounts 542,837 516,121 599,479 673,124 The accompanying notes form part of these financial reports. Note 1. Statement of Significant Accounting Policies This financial report is a special purpose financial report prepared in order to satisfy the financial reporting requirements of the Associations Incorporation Act (Victoria). The committee has determined that the association is not a reporting entity. The financial report has been prepared in accordance with the requirements of the Associations Incorporation Act (Victoria) and the following Australian Accounting Standards: • AASB 101 Preparation of Financial Statements • AASB 102 Inventories • AASB 107 Cash Flow Statements • AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors • AASB 112 Income Taxes • AASB 116 Property, Plant and Equipment • AASB 118 Revenue • AASB 119 Employee Benefits • AASB 124 Related Party Disclosures • AASB 1031 Materiality No other applicable Accounting Standards, Urgent Issues Group Consensus Views or other authoritative pronouncements of the Australian Accounting Standards Boards have been applied. The financial report has been prepared on an accruals basis and is based on historic costs and does not take into account changing money values, or except where specifically stated, current valuations of non-current assets. The following is a summary of the material accounting policies adopted by the Association in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated. (a) Income Tax The Association is an Income Tax Exempt Charity in terms of Subdivision 50-5 of the Income Tax Assessment Act 1997. (b) Inventories Inventories consist of publications and are measured at the lower of cost and net realisable value. Costs are assigned on a specific identification basis and include direct costs and appropriate overheads, if any. (c) Goods and Services Tax Revenues, 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). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables are stated with the amount of GST included, where applicable. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet. Cash flows are included in the statement of cash flows on a gross basis. The GST component of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows. (d) Allowable Surplus – VLA In compliance with funding requirements of Victoria Legal Aid (VLA), unspent grant is not brought to account as revenue but deferred as a liability in the Balance Sheet as VLA Allowable Surplus. The amount of $67,701 Allowable Surplus from the previous year, comprising $30,495 for Service and $37,206 for NJC, is brought forward as revenue this year to cover some deficit as a result of an abnormal item of expense, long service leave provision as well as additional work hours for the Community Lawyer at NJC. (e) Property, Plant and Equipment Each class of property, plant and equipment are carried at cost or fair value less, where applicable, any accumulated depreciation. Plant and Equipment Plant and equipment are measured on the cost basis. The carrying amount of plant and equipment is reviewed annually by the Association to ensure it is not in excess of the fair value. Depreciation The depreciable amount of all fixed assets are depreciated on a straight line basis over the useful lives of the assets to the Association commencing from the time the asset is held ready for use. The depreciation rates used for each class of depreciable asset are: • Computer equipment: 25-30% • Office furniture equipment: 10% - 20% (f) Employee Benefits Provision is made for the Association’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits expected to be settled within one year together with benefits arising from wages and salaries and annual leave, which will be settled after one year, have been measured at their nominal amount. Annual leave is recognised with expected future increases in remuneration. Other employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. No provision for sick leave benefits has been recognised, as amounts expected to be claimed are not anticipated to exceed benefits accruing in future periods. Sick leave is non-vesting. Contributions are made by the Association to employee accumulated superannuation funds and are charged as expenses when incurred. The particular funds have no unfunded liabilities. (g) Long Service Leave An abnormal expense of $26,112 being provision for long service leave was made for several employees who have been in service for (or approaching) five years. Of the total amount, $19,121 was booked against the Service division and $6,991 against Neighbourhood Justice Centre; this item of expense is listed under the category of “Other Employment Oncost”, which also consists of annual leave provision and workcover cost as well. Fitzroy Legal Service is one of the Community Legal Centres (CLS) bound by the Multipurpose Business Agreement, whereby employees’ prior service in other CLCs is recognised in the calculation of period of service and their leave entitlement is also transferrable among CLCs. Provision previously made for two employees who left the organisation in the 2011-2012 financial year is therefore not reversed because Fitzroy Legal Service will be liable to transfer their accrued entitlement to their current employer if/when they are entitled to access their long service leave entitlement. (h) Cash and cash equivalents For the purposes of the cash flow statement, cash includes cash on hand, at bank and on deposit. (i) Revenue Grants are recognised on an accrual basis. Any grants received and provided for special purposes are recognised to the extent funds are expended on projects. Grants received for future financial periods are treated as grants in advance under current liabilities to the extent of the unspent grant where there is an obligation to repay the unexpended portion of the grant. Revenue from membership fees and donations are recognised upon receipt. Revenue from the sale of goods is recognised upon delivery of goods to customers. Interest revenue is recognised on an accrual basis taking into account the interest rates applicable to the financial assets. All revenue is stated net of the amount of goods and services tax (GST). (j) Leases Lease payments under operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the period in which they are incurred. (k) Comparatives Where required by accounting pronouncements, comparative figures have been represented or reclassified to conform to changes in presentation for the current financial year. Note 2. Commitments Operating Lease Commitments Being for rent of office at 124 Johnston Street, Fitzroy, Victoria 3065 The current property lease has a five-year term, expiring on 30 June 2016. Note 3. Financial Instruments (a) Interest Rate Risk The Association has no material exposure to interest rate risk on its financial instruments. (b) Credit Risk The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets is the carrying amount, net of any provisions for doubtful debts, as disclosed in the statement of financial position and notes to the financial statements. The Association does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments entered into by the Association other than Victoria Legal Aid. (c) Net Fair Values The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the statement of financial position and in the notes to the financial statements. Note 4. Related Parties - Management Committee Members 2011-2012 Vas Eliadis (Convenor), Bruce McBain (Treasurer), Adrian Kennedy (Secretary) Stelvio Vido, Jennifer Balint, Natalia Hanley, Serge Sztajt and Fiona Delahunt. No financial advantage for members was reported during the period. No income is paid or payable to members of the Management Committee by the association and any related entity. Note 5. Economic Dependency The Association receives the majority of its revenue from Victoria Legal Aid. In 2011-2012 the total recurrent grant for Fitzroy Legal Service Inc. was $613,561. Note 6. Principal Activities and Operations The Fitzroy Legal Service Inc. opened its doors in December 1972 and has a significant history. Fitzroy Legal Service Inc. provides critical analysis of legal issues within a broad social context. It functions as a communitybased organisation; independent of government with involvement in activities that are reflective of rights based services. The legal service is staffed by both legal and non-legal workers and its primary aim is to serve those people in the community who have little or no access to legal resources. Fitzroy Legal Service Inc. also looks at legal issues in a broader social context and provides assistance with general legal advice, financial counselling and with matters involving young people in custody or in difficulties with the police. As well as its daytime service, Fitzroy Legal Service Inc. operates a free legal advice service five evenings a week. Fitzroy Legal Service Inc. has: • a large volunteer night advice service operating 5 nights a week as well as an outreach service and two specialist clinics, • a self funding day practice offering criminal and selected general law casework and court representation, and • a self funding publications unit that produces the Law Handbook annually as well as other publications Fitzroy Legal Service Inc. is active in law reform, development of legal policy and research. Fitzroy Legal Service Inc. has a team based organisational structure. The work teams are the administration team, casework team and social action team. Fitzroy Legal Service Inc. also has a finance committee and a publications committee. Strict geographical limitations were introduced in November 1978 in order to try and manage the workload. People who live outside the inner suburban area are encouraged to see a legal service closer to their local area. Referrals are made where possible. There are now over 40 odd Community Legal Centres in Victoria, including specialist centres. A large proportion of legal service clients live in rented premises or are boarders. Approximately 40% of the catchment area population consists of persons from non-English speaking backgrounds. A substantial proportion is unemployed or receiving pensions or benefits and make up the overwhelming proportion of service users. Fitzroy Legal Service Inc. provides a free legal service to those people who live, work or study in the suburbs of Fitzroy, Collingwood, Abbotsford, Clifton Hill, North Fitzroy, Brunswick, Carlton, Richmond and East Melbourne. Any person who is in the catchment area is eligible to receive advice from the Fitzroy Legal Service Inc.. No formal means test applies, however, we do not provide more than initial advice to some people. In addition, there is demand from a wide range of organisations for our expertise in organisational development and capacity building. We continue to learn from refining our own governance, infrastructure, organisational and internal decision-making processes. Note 7. Segment Reporting The organisation operates predominantly in three sectors (community legal centre, legal practice and legal publications) and one geographic location (Victoria, Australia). Note 8. Association details The principal place of business of the association is: 124 Johnston Street FITZROY VIC 3065 Phone (03) 9419 3744 Fax (03) 9416 1124 E-mail enquiries@fitzroy-legal.org.au 7
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Page 3 and 4: Executive Officer’s Report Robin
Page 5: Treasurer’s Report Bruce McBain -
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Page 11 and 12: THE LAW HANDBOOK 2013 Trim 240 mm x

Annual Report 11-12 - Fitzroy Legal Service

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