2015 Pathways Annual report

Annual Report 14 / 15

IN MEMORIAM
OUR – OFFICES IAN BURNS
Head Office
61 Pakington Street
Geelong West, Victoria, 3218
P: (03) 5229 8295
E: admin@pathways.org.au
Group Programs
92 Lt Myers Street
Geelong, Victoria, 3220
P: (03) 5229 8295
Youth Connections
105 Yarra Street
Geelong, Victoria, 3220
P: (03) 5246 8208
Pathways Colac
Neighbourhood House
23 Millar Street,
Colac, Victoria, 3250
P: (03) 5232 5210
Youth Health Hub Colac
15 - 17 Hart Street
Colac, Victoria, 3250
P: (03) 5229 8295
Clearwater
Property Care
145 - 147 Victoria Street
North Geelong, Victoria, 3215
P: (03) 5272 3123
www.pathways.org.au
www.clearwater.org.au
/pathwaysgeelong
/clearwaterpropertycare
pathwaysgeelong
cpcgeelong

IN MEMORIAM
– IAN BURNS
Pathways Board Director 1998 – 2015
(Chair 99/00 & 00/01, Vice Chair 01/02 & 02/03, Treasurer 03/04 – 13/14)
With great sadness the Pathways Board,
Executive and Staff acknowledge the
loss of our esteemed and much valued
colleague Ian Burns. Words cannot express
how highly we value Ian’s contribution
to our organisation as Chair, Vice-Chair,
Treasurer and Director over the past 17
years. Pathways reputation is in large
measure due to Ian’s dedication to
advocating on behalf of people with
mental illness.
To honour Ian’s memory and as a mark of
respect for his very significant contribution
to our organisation, we have set up the
“Pathways Ian Burns Memorial Award”
to be awarded on an annual basis for
outstanding performance in psychiatric
nursing (as part of the Deakin University
Department of Nursing Awards)
SCHOOL OF NURSING
AND MIDWIFERY
Pathways Ian Burns Memorial Award
ANNUAL STUDENT AWARDS
Awarded to a second year student for outstanding
performance in psychiatric nursing.
Pathways Annual Report 14 / 15 • 1

CHAIR
REPORT
National Disability Insurance Scheme (NDIS)
Pathways has now fully transitioned eligible clients into the NDIS
system. This necessitated a comprehensive re-working of the
business model, workflow processes, and information systems.
The staff of Pathways have responded to these challenges with
admirable commitment and enthusiasm, adapting the service
response to align with the choice and control that service users
now have.
Pathways’ staff have identified issues of concern where
the NDIS have not adequately demonstrated appreciation
for the complex issues experienced by people with high
psychosocial support needs. These issues have been advised
directly to the NDIS through the appropriate forums. Pathways
continues to strongly support the NDIS and will continue to
advocate for improvements as the scheme is rolled out more
comprehensively over the next 2 years.
While transitioning to the NDIS throughout the trial period
Pathways continued to receive the majority of service funding
from the State Government. A surplus was achieved for FY15
and a strong financial position has been maintained with funds
in reserve.
Strategic Plan
During the year the direction of Pathways was re-examined. In
consultation with staff, service users and stakeholders the new
Strategic Plan 2015-17 was developed. This plan focuses on the
following key directions:
1. Expand the offer beyond our existing high quality services to
incorporate broader spectrum mental health and wellbeing
services.
2. Maximise the opportunities to enable every person we
support to fully participate socially and economically as an
equal citizen.
3. Promote our specific capacity to understand and work with
people with multiple and changing needs.
4. Improve and expand the participation and contribution of
people with a lived experience within the organisation.
5. Identify and explore opportunities for alliances and growth
consistent with our values and mission.
6. Demonstrate leadership in mental health awareness and
education activities.
These directions consolidate Pathways’ fundamental service
capacity and expansion of current offerings into new and
complimentary areas of service delivery and consultancy.
Re-Brand
In conjunction with the delivery of the new strategic plan
Pathways’ new brand and logo was established with a launch
held at Geelong’s waterfront Carousel in April. This brand
renewal reflects the need to define Pathways’ position and
strategically raise our profile in this increasingly competitive
market.
The new tag line for the organisation is “Be Spectacular“. This
tag line is bold and optimistic, not just for the people who
access services and supports from Pathways on their road to
recovery, but also for the organisation itself.
New Support Packages
A key change initiated by the NDIS implementation has been the
re-visioning of Pathways supports and services offered in new
support packages that are able to be accessed in flexible ways
to maximise NDIS plan outcomes.
Clearwater Property Care
FY14 saw a turnaround in the performance of Clearwater. This
was further cemented in FY15, with a surplus for the second
year running. The continued growth of this commercial income
stream is significant and has reduced Clearwater’s reliance on
government funding.
Pathways Annual Report 14 / 15 • 2

Pathways CEO
Adrian Buckley served as Pathways CEO for the full financial
year and resigned as at 30 June 2015. The Board wishes to
thank Adrian for his work in leading Pathways during the move
into the NDIA. This was a major transition for the organisation
that was executed extremely professionally and achieved
positive outcomes for Pathways clients.
The Board appointed Phil Dunn as the Acting CEO to serve
during the interim period of selecting and appointing the new
CEO. A rigorous search process has been undertaken to appoint
a permanent CEO. The Board thanks Phil for the excellent work
and support to staff that he has contributed during this interim
period.
Staff & the Board
The Board are to be thanked for their guidance and leadership
during this year. Likewise, Pathways staff have continued to
be resilient in facing major organizational change during the
year whilst maintaining focus on the most important issues for
the people that use Pathways services. The staff of Pathways
continue to be the powerhouse behind the organisation’s
deservedly high reputation.
Philippa Bakes
Chairperson
On 16 October 2015, the board was pleased to announce
that Alyson Miller is to be the new CEO at Pathways.
For the past 6 years, Alyson has been Chief Executive
Officer of On the Line, one of Australia’s leading
providers of remote professional counselling services.
The board is confident that Alyson has the skills and
drive to lead Pathways’ continued development and
growth in the coming months and years.
Pathways Annual Report 14 / 15 • 3

FINANCIALS
Contents
Page
Directors’ Report 5
Auditor’s Independence Declaration 7
Statement of Comprehensive Income 8
Statement of Financial Position 9
Statement of Changes in Equity 10
Statement of Cash Flows 11
Notes to the Financial Statements 12
Directors’ Declaration 32
Independent Audit Report 33
Pathways Annual Report 14 / 15 • 4

DIRECTORS’ REPORT
Your directors present this report on the
company for the financial year ended
30 June 2015.
Directors
The names of each person who has been a director during the
year and to the date of this report are:
Ms Philippa Bakes
Ms Sheridan Salmon
Mr John Stevens
Dr Jane Edwards
Mr Ian Burns
Mr Brent Hewitt
Dr Philip Warelow
Mr Adam Wightman
Mr Barry Allen
Mr Adrian Buckley
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 activity of the company during the financial year
was to provide rehabilitation, support services and
employment for members of the community with a serious
mental illness.
Our Mission
Mission:
Pathways promotes and facilitates personal recovery and
community integration, in order to improve the quality of life
of people affected by mental health issues.
Vision:
Pathways will be the provider of choice and deliver innovative,
collaborative and highly valued services to the communities
we serve.
Values:
Hope, Innovation, Trust, Support, Acceptance and Respect.
Information On Directors
Ms Philippa Bakes
Qualifications: B.Sc. (Hons)
Mathematics, FCA
Experience
Chair 13/14 & 14/15, Director since 2013
Mr John Stevens
Qualifications
B.App.Sc, Grad.Dip.Bs.Dev.& Org.Dev.,
Dip.Ed Ass.Dip.Gen.Bus.
Experience
Vice-Chair 05/06 – 10/11, 13/14 & 14/15, Director since 2005
Mr Ian Burns
Qualifications
RN, Dip App Sc (Adv Psych Nursing) B.Nursing, M.Nursing
Experience
(Deceased Feb 2015) Chair 99/00 & 00/01, Vice-Chair 01/02 &
02/03, Treasurer 03/04 – present , Director since 1998
Dr Philip Warelow
Qualifications
B.Nursing , M Nursing, PhD, RN, RPsychiatric Nurse
Experience
Director since 1998
Mr Barry Allen
Qualifications
Dip. Management
Experience
Director since 2012
Mr Adrian Buckley
Qualifications
Grad Dip Human Resource Mgt & Services
Experience
(Resigned June 2015) Director since 2013
Mr Adam Wightman
Qualifications
B.Laws(Hons), B.A.(Journalism & IR)
Experience
Director since 2013
Ms Sheridan Salmon
Qualifications
B.Commerce
Experience
Director since 2014
Dr Jane Edwards
Qualifications
BMus, MMus, PhD
Experience
Director since 2014
Mr Brent Hewitt
Qualifications
Grad Dip Chartered Acc, M Prof Acc, Member Inst Chartered
Acc Aus & NZ
Experience
Director since Dec 2014
Pathways Annual Report 14 / 15 • 5

DIRECTORS’ REPORT
Meetings of Directors
During the financial year, 12 meetings of directors were held. Attendances by each director were as follows:
Board of Governance
Meetings
No. eligible to
No.
attend
attended
Audit & Risk Committee
Meetings
No. eligible No.
to attend
attended
Ms Philippa Bakes 12 11 - -
Mr John Stevens 12 9 3 3
Mr Ian Burns 7 2 1 1
Dr Philip Warelow 12 9 - -
Mr Barry Allen 12 12 - -
Mr Adrian Buckley 12 10 3 3
Mr Adam Wightman 12 10 3 2
Ms Sheridan Salmon 12 9 - -
Dr Jane Edwards 12 8 - -
Mr Brent Hewitt 6 6 2 2
Clinical Risk Committee
Meetings
No. eligible to
No.
attend
attended
Marketing & Community
Engagement Committee
Meetings
No. eligible No.
to attend
attended
Ms Philippa Bakes - - - -
Mr John Stevens - - - -
Mr Ian Burns - - - -
Dr Philip Warelow 3 3 - -
Mr Barry Allen - - 4 4
Mr Adrian Buckley 3 3 4 3
Mr Adam Wightman - - - -
Ms Sheridan Salmon - - 4 4
Dr Jane Edwards 3 3 - -
Mr Brent Hewitt - - - -
Pathways Annual Report 14 / 15 • 6

DIRECTORS’ REPORT
The total amount that members of the company are liable to contribute if the company is wound up.
The company is incorporated under the Australian Charities and Not-for-profits Commission Act 2012 and is a company
limited by guarantee. If the company is wound up, the constitution states that each member is required to contribute a
maximum of $50 each towards meeting any outstanding obligations of the entity. At 30 June 2015, the total amount
that members of the company are liable to contribute if the company is wound up is $400 (2014: $500).
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the year ended 30 June 2015 has been received and can be found on
page 6 of the financial report.
Signed in accordance with a resolution of the Board of Directors.
PHILIPPA BAKES | Chairperson
Dated this 21st day of September 2015
JOHN STEVENS | Director
Dated this 21st day of September 2015
Auditor’s Independence Declaration
To The Directors Of Pathways Rehabilitation And Support Services Limited
In accordance with the requirements of section 60-40 of the Australian Charities and Not for Profits Commission Act
2012 for the audit of Pathways Rehabilitation and Support Services Limited for the year ended 30 June 2015, I declare
that, to the best of my knowledge and belief, there have been
i. iNo contraventions of the auditor independence requirements of the Australian Charities and Not for Profits
Commission Act 2012 in relation to the audit; and
ii. No contraventions of any applicable code of professional conduct in relation to the audit
LBW CHARTERED ACCOUNTANTS
SRIPATHY SARMA | Principal
Dated this 21st day of September 2015
Pathways Annual Report 14 / 15 • 7

Statement Of Profit Or Loss And Other
Comprehensive Income for The Year Ended
30 June 2015
Note 2015 2014
REVENUE
$ $
Revenue 2 5,579,745 6,449,496
Other income 2 29,301 (206,170)
EXPENSES
Employee benefits expense (3,577,333) (3,796,707)
Clearwater funded employees wages and on-costs (379,404) (398,859)
Clearwater cost of sales (41,090) (90,752)
Premises expenses (274,855) (300,999)
Telephone and communication (71,153) (80,532)
Equipment expenses (39,434) (45,982)
Depreciation and amortisation (58,413) (92,176)
Office and associated supplies (79,847) (122,084)
Outside services (357,176) (514,033)
Rehabilitation program expenses (69,466) (173,905)
Vehicle expenses (329,245) (328,461)
Travel expenses (6,831) (9,714)
Finance costs 3 (7,456) (9,043)
Doubtful debt expenses 3 - 1,535
Net increase/(decrease) in fair value of financial assets (5,710) 71,208
Other expenses - (19,335)
Current year surplus before income tax 311,633 333,487
Tax expense - -
Net current year surplus 311,633 333,487
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss: - -
Items that will be reclassified subsequently to profit or loss when specific
conditions are met: - -
Total other comprehensive income for the year - -
Total comprehensive income for the year 311,633 333,487
Total comprehensive income attributable to members of the entity 311,633 333,487
The accompanying notes form part of these financial statements.
Pathways Annual Report 14 / 15 • 8

Statement Of Financial Position
As At 30 June 2015
Note 2015 2014
CURRENT ASSETS
$ $
Cash on hand 4 2,165,534 2,131,993
Accounts receivable and other debtors 5 71,238 43,620
Other current assets 6 81,135 4,580
Financial assets 7 519,859 525,569
TOTAL CURRENT ASSETS 2,837,766 2,705,762
NON-CURRENT ASSETS
Property, plant and equipment 8 110,755 168,441
Intangibles 9 559 1,286
TOTAL NON-CURRENT ASSETS 111,314 169,727
TOTAL ASSETS 2,949,080 2,875,489
CURRENT LIABILITIES
Accounts payable and other payables 10 326,148 615,728
Employee provisions 11 401,625 374,515
TOTAL CURRENT LIABILITIES 727,773 990,243
NON-CURRENT LIABILITIES
Employee provisions 11 52,933 28,505
TOTAL NON-CURRENT LIABILITIES 52,933 28,505
TOTAL LIABILITIES 780,706 1,018,748
NET ASSETS 2,168,374 1,856,741
EQUITY
Retained surplus 2,168,374 1,856,741
TOTAL EQUITY 2,168,374 1,856,741
The accompanying notes form part of these financial statements.
Pathways Annual Report 14 / 15 • 9

Statement Of Changes In Equity
For The Year Ended 30 June 2015
Retained
Earnings
Total Equity
$ $
BALANCE AT 1 JULY 2013 1,523,254 1,523,254
Comprehensive income
Surplus for the year attributable to members of the entity 333,487 333,487
Other comprehensive income for the year - -
Total comprehensive income attributable to members of the entity 333,487 333,487
BALANCE AT 30 JUNE 2014 1,856,741 1,856,741
Comprehensive income
Surplus for the year attributable to members of the entity 311,633 311,633
Other comprehensive income for the year - -
Total comprehensive income attributable to members of the entity - -
BALANCE AT 30 JUNE 2015 2,168,374 2,168,374
The accompanying notes form part of these financial statements.
Pathways Annual Report 14 / 15 • 10

Statement Of Cash Flows For The Year
Ended 30 June 2015
Note 2015 2014
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from grants and sales 5,380,060 6,561,963
Other receipts 29,301 60,906
Payments to suppliers and employees (5,471,332) (5,761,423)
Interest received 63,439 54,968
Dividends received 32,073 26,914
Net cash generated from operating activities 16 33,541 943,328
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment - 17,700
Payment for property, plant and equipment - (66,709)
Net cash used in investing activities - (49,009)
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash used in financing activities - -
Net increase in cash held 33,541 894,319
Cash on hand at beginning of the financial year 2,131,993 1,237,674
Cash on hand at end of the financial year 4 2,165,534 2,131,993
The accompanying notes form part of these financial statements.
Pathways Annual Report 14 / 15 • 11

Notes To The Financial Statements For
The Year Ended 30 June 2015
Note 1: Summary Of Significant Accounting
Policies
The financial statements cover Pathways Rehabilitation and
Support Services Limited as an individual entity, incorporated
and domiciled in Australia. This report is prepared in order to
satisfy the financial reporting requirements of the Australian
Charities and Not-for-profits Commission Act 2012 Pathways
Rehabilitation and Support Services Limited is a company
limited by guarantee.
The financial statements were authorised for issue on 21
September 2015 by the directors of the company.
Basis of Preparation
These general purpose financial statements have been
prepared in accordance with the Australian Charities and
Not-for-profits Commission Act 2012 and Australian
Accounting Standards and Interpretations of the Australian
Accounting Standards Board. The company is a not-for-profit
entity for financial reporting purposes under Australian
Accounting Standards. Material accounting policies adopted in
the preparation of these financial statements are presented
below and have been consistently applied unless stated
otherwise.
The financial statements, except for the cash flow information,
have been prepared on an accruals basis and are based on
historical costs, modified, where applicable, by the
measurement at fair value of selected non-current assets,
financial assets and financial liabilities. The amounts presented
in the financial statements have been rounded to the nearest
dollar.
Accounting Policies
a. Revenue
Non-reciprocal grant revenue is recognised in profit or loss
when the entity obtains control of the grant and it is
probable that the economic benefits gained from the grant
will flow to the entity and the amount of the grant can be
measured reliably.
If conditions are attached to the grant which must be
satisfied before it is eligible to receive the contribution, the
recognition of the grant as revenue will be deferred until
those conditions are satisfied.
When grant revenue is received whereby the entity incurs
an obligation to deliver economic value directly back to the
contributor, this is considered a reciprocal transaction and
the grant revenue is recognised in the state of financial
position as a liability until the service has been delivered to
the contributor, otherwise the grant is recognised as income
on receipt.
Donations and bequests are recognised as revenue when
received.
Interest revenue is recognised using the effective interest
method, which for floating rate financial assets is the rate
inherent in the instrument. Dividend revenue is recognised
when the right to receive a dividend has been established.
Revenue from the rendering of a service is recognised upon
the delivery of the service to the customer.
All revenue is stated net of the amount of goods and
services tax (GST).
b. Inventories on Hand
Inventories are measured at the lower of cost and current
replacement cost.
Inventories acquired at no cost or for nominal consideration
are measured at the current replacement cost as at the date
of acquisition.
c. Fair Value of Assets and Liabilities
The company measures some of its assets and liabilities at
fair value on either a recurring or non-recurring basis,
depending on the requirements of the applicable
Accounting Standard.
Fair value is the price the company would receive to sell an
asset or would have to pay to transfer a liability in an
orderly (ie unforced) transaction between independent,
knowledgeable and willing market participants at the
measurement date.
As fair value is a market-based measure, the closest
equivalent observable market pricing information is used to
determine fair value. Adjustments to market values may be
made having regard to the characteristics of the specific
asset or liability. The fair values of assets and liabilities that
are not traded in an active market are determined using one
or more valuation techniques. These valuation techniques
maximise, to the extent possible, the use of observable
market data.
To the extent possible, market information is extracted from
either the principal market for the asset or liability (ie the
market with the greatest volume and level of activity for the
asset or liability) or, in the absence of such a market, the
most advantageous market available to the entity at the
end of the reporting period (ie the market that maximises
the receipts from the sale of the asset or minimises the
payments made to transfer the liability, after taking into
account transaction costs and transport costs).
For non-financial assets, the fair value measurement also
takes into account a market participant’s ability to use the
asset in its highest and best use or to sell it to another
market participant that would use the asset in its highest
and best use.
The fair value of liabilities and the entity’s own equity
instruments (excluding those related to share-based
payment arrangements) may be valued, where there is no
observable market price in relation to the transfer of such
financial instruments, by reference to observable market
information where such instruments are held as assets.
Where this information is not available, other valuation
techniques are adopted and, where significant, are detailed
in the respective note to the financial statements.
Pathways Annual Report 14 / 15 • 12

d. Property, Plant and Equipment
Each class of property, plant and equipment is carried at
cost or fair value as indicated, less, where applicable,
accumulated depreciation and any impairment losses.
Plant and equipment
Plant and equipment are measured on the cost basis and
are therefore carried at cost less accumulated depreciation
and any accumulated impairment losses. In the event the
carrying amount of plant and equipment is greater than the
estimated recoverable amount, the carrying amount is
written down immediately to the estimated recoverable
amount and impairment losses are recognised either in
profit or loss or as a revaluation decrease if the impairment
losses relate to a revalued asset. A formal assessment of
recoverable amount is made when impairment indicators
are present (refer to Note 1(g) for details of impairment).
Subsequent costs are included in the asset’s carrying
amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits
associated with the item will flow to the company and the
cost of the item can be measured reliably. All other repairs
and maintenance are recognised as expenses in profit or
loss in the financial period in which they are incurred.
Plant and equipment that have been contributed at no cost
or for nominal cost are recognised at the fair value of the
asset at the date it is acquired.
Depreciation
The depreciable amount of all fixed assets, including
buildings and capitalised lease assets, but excluding
freehold land, is depreciated on a straight-line basis over
the asset’s useful life to the entity commencing from the
time the asset is available for use. Leasehold improvements
are depreciated over the shorter of either the unexpired
period of the lease or the estimated useful lives of the
improvements.
The depreciation rates used for each class of depreciable
assets are:
Class of Fixed Asset
Depreciation Rate
Office equipment 20% - 100%
Furniture, fittings and equipment 10% - 20%
Leasehold improvements 15% - 20%
Rehabilitation program assets 15% - 50%
The assets’ residual values and useful lives are reviewed and
adjusted, if appropriate, at the end of each reporting period.
Gains and losses on disposals are determined by comparing
proceeds with the carrying amount. These gains or losses
are recognised in profit or loss in the period in which they
arise. When revalued assets are sold, amounts included in
the revaluation surplus relating to that asset are transferred
to retained surplus.
e. Leases
substantially all the risks and benefits incidental to the
ownership of the asset but not the legal ownership are
transferred to the entity, are classified as finance leases.
Finance leases are capitalised, recognising an asset and a
liability equal to the present value of the minimum lease
payments, including any guaranteed residual values.
Leased assets are depreciated on a straight-line basis over
their estimated useful lives where it is likely that the entity
will obtain ownership of the asset. Lease payments are
allocated between the reduction of the lease liability and
the lease interest expense for the period.
Lease payments for operating leases, where substantially all
the risks and benefits remain with the lessor, are recognised
as expenses on a straight-line basis over 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. Financial Instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when
the entity becomes a party to the contractual provisions to
the instrument. For financial assets, this is equivalent to the
date that the company commits itself to either purchase or
sell the asset (ie trade date accounting is adopted).
Financial instruments 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 recognised as expenses in profit or
loss immediately.
Classification and subsequent measurement
Financial instruments are subsequently measured at fair
value, amortised cost using the effective interest method, or
cost. Where available, quoted prices in an active market are
used to determine fair value. In other circumstances,
valuation techniques are adopted.
Amortised cost is calculated as the amount at which the
financial asset or financial liability is measured at initial
recognition less principal repayments and any reduction for
impairment, and adjusted for any cumulative amortisation
of the difference between that initial amount and the
maturity amount calculated using the effective interest
method.
The effective interest method is used to allocate interest
income or interest expense over the relevant period and is
equivalent to the rate that exactly discounts estimated
future cash payments or receipts (including fees,
transaction costs and other premiums or discounts) through
the expected life (or when this cannot be reliably predicted,
the contractual term) of the financial instrument to the net
carrying amount of the financial asset or financial liability.
Revisions to expected future net cash flows will necessitate
an adjustment to the carrying amount with a consequential
recognition of an income or expense item in profit or loss.
Leases of property, plant and equipment, where
Pathways Annual Report 14 / 15 • 13

(i)
Financial assets at fair value through profit or loss
Impairment
Financial assets are classified at “fair value through profit
or loss” when they are either held for trading for the
purpose of short-term profit taking, derivatives not held
for hedging purposes, or when they are designated as
such to avoid an accounting mismatch or to enable
performance evaluation where a group of financial assets
is managed by key management personnel on a fair value
basis in accordance with a documented risk management
or investment strategy. Such assets are subsequently
measured at fair value with changes in carrying amount
being included in profit or loss.
(ii) Loans and receivables
Loans and receivables are non-derivative financial assets
with fixed or determinable payments that are not quoted
in an active market and are subsequently measured at
amortised cost. Gains or losses are recognised in profit or
loss through the amortisation process and when the
financial asset is derecognised.
(iii) Held-to-maturity investments
Held-to-maturity investments are non-derivative financial
assets that have fixed maturities and fixed or determinable
payments, and it is the company’s intention to hold these
investments to maturity. They are subsequently measured
at amortised cost. Gains or losses are recognised in profit
or loss through the amortisation process and when the
financial asset is derecognised.
(iv) Available-for-sale investments
Available-for-sale investments are non-derivative financial
assets that are either not capable of being classified into
other categories of financial assets due to their nature or
they are designated as such by management. They
comprise investments in the equity of other entities where
there is neither a fixed maturity nor fixed or determinable
payments.
They are subsequently measured at fair value with any
remeasurements other than impairment losses and foreign
exchange gains and losses recognised in other
comprehensive income. When the financial asset is
derecognised, the cumulative gain or loss pertaining to
that asset previously recognised in other comprehensive
income is reclassified into profit or loss.
Available-for-sale financial assets are classified as
non-current assets when they are not expected to be sold
within 12 months after the end of the reporting period. All
other available-for-sale financial assets are classified as
current assets.
(v) Financial liabilities
Non-derivative financial liabilities other than financial
guarantees are subsequently measured at amortised cost.
Gains or losses are recognised in profit or loss through the
amortisation process and when the financial liability is
derecognised.
At the end of each reporting period, the company assesses
whether there is objective evidence that a financial asset
has been impaired. A financial asset or a group of financial
assets will be deemed to be impaired if, and only if, there is
objective evidence of impairment as a result of the
occurrence of one or more events (a “loss event”), which
has an impact on the estimated future cash flows of the
financial asset(s).
In the case of available-for-sale financial assets, a significant
or prolonged decline in the market value of the instrument
is considered a loss event. Impairment losses are recognised
in profit or loss immediately. Also, any cumulative decline in
fair value previously recognised in other comprehensive
income is reclassified into profit or loss at this point.
In the case of financial assets carried at amortised cost, loss
events may include: indications that the debtors, or a group
of debtors, are experiencing significant financial difficulty,
default or delinquency in interest or principal payments;
indications that they will enter into bankruptcy or other
financial reorganisation; and changes in arrears or economic
conditions that correlate with defaults.
For financial assets carried at amortised cost (including
loans and receivables), a separate allowance account is
used to reduce the carrying amount of financial assets
impaired by credit losses. After having undertaken all
possible measures of recovery, if the management
establishes that the carrying amount cannot be recovered
by any means, at that point the written-off amounts are
charged to the allowance account or the carrying amount
of impaired financial assets is reduced directly if no
impairment amount was previously recognised in the
allowance accounts.
When the terms of financial assets that would otherwise
have been past due or impaired have been renegotiated,
the company recognises the impairment for such financial
assets by taking into account the original terms as if the
terms have not been renegotiated so that the loss events
that have occurred are duly considered.
Derecognition
Financial assets are derecognised where the contractual
rights to receipt of cash flows expire or the asset is
transferred to another party whereby the entity no longer
has any significant continuing involvement in the risks and
benefits associated with the asset. Financial liabilities are
derecognised where the related obligations are discharged,
cancelled or have expired. The difference between the
carrying amount of the financial liability, which is
extinguished or transferred to another party and the fair
value of consideration paid, including the transfer of
non-cash assets or liabilities assumed, is recognised in profit
or loss.
Pathways Annual Report 14 / 15 • 14

g. Impairment of Assets
At the end of each reporting period, the entity reviews the
carrying amounts of its tangible and intangible assets to
determine whether there is any indication that those assets
have been impaired. If such an indication exists, the
recoverable amount of the asset, being the higher of the
asset’s fair value less costs to sell and value in use, is
compared to the asset’s carrying amount. Any excess of the
asset’s carrying amount over its recoverable amount is
recognised in profit or loss.
Where the future economic benefits of the asset are not
primarily dependent upon the asset’s ability to generate net
cash inflows and when the entity would, if deprived of the
asset, replace its remaining future economic benefits, value
in use is determined as the depreciated replacement cost of
an asset.
Where it is not possible to estimate the recoverable amount
of an asset’s class, the entity estimates the recoverable
amount of the cash-generating unit to which the class of
assets belong.
Where an impairment loss on a revalued asset is identified,
this is recognised against the revaluation surplus in respect
of the same class of asset to the extent that the impairment
loss does not exceed the amount in the revaluation surplus
for that class of asset.
h. Employee Provisions
Short-term employee provisions
Provision is made for the company’s obligation for shortterm
employee benefits. Short-term employee benefits are
benefits (other than termination benefits) that are expected
to be settled wholly before 12 months after the end of the
annual reporting period in which the employees render the
related service, including wages, salaries and sick leave.
Short-term employee benefits are measured at the
(undiscounted) amounts expected to be paid when the
obligation is settled.
Other long-term employee provisions
Provision is made for employees’ long service leave and
annual leave entitlements not expected to be settled wholly
within 12 months after the end of the annual reporting
period in which the employees render the related service.
Other long-term employee benefits are measured at the
present value of the expected future payments to be made
to employees. Expected future payments incorporate
anticipated future wage and salary levels, durations of
service and employee departures, and are discounted at
rates determined by reference to market yields at the end
of the reporting period on government bonds that have
maturity dates that approximate the terms of the
obligations. Upon the remeasurement of obligations for
other long-term employee benefits, the net change in the
obligation is recognised in profit or loss as a part of
employee benefits expense.
does not have an unconditional right to defer settlement for
at least 12 months after the end of the reporting period, in
which case the obligations are presented as current
provisions.
i. Cash on Hand
Cash on hand includes cash on hand, deposits held at-call
with banks, other short-term highly liquid investments with
original maturities of three months or less, and bank
overdrafts. Bank overdrafts are shown within short-term
borrowings in current liabilities on the statement of financial
position.
j. Accounts Receivable and Other Debtors
Accounts receivable and other debtors include amounts
due from members as well as amounts receivable from
customers for goods sold in the ordinary course of
business. Receivables expected to be collected within 12
months of the end of the reporting period are classified as
current assets. All other receivables are classified as
non-current assets.
Accounts receivable are initially recognised at fair value and
subsequently measured at amortised cost using the
effective interest method, less any provision for impairment.
Refer to Note 1(f) for further discussion on the
determination of impairment losses.
k. Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the
amount of GST, except where the amount of GST incurred is
not recoverable from the Australian Taxation Office (ATO).
l. Income tax
No provision for income tax has been raised as the entity is
exempt from income tax under Div 50 of the Income Tax
Assessment Act 1997.
m. Intangibles
Software
Software is recorded at cost. It has a finite life and is carried
at cost less accumulated amortisation and any impairment
losses. Software has an estimated useful life of between one
and three years. It is assessed annually for impairment.
License Fee
License Fee is recorded at cost. The License Fee is in
respect of a three year period and will be amortised over
the period commencing from 1 July 2012. The carrying
balance will be assessed annually for impairment
The company’s obligations for long-term employee benefits
are presented as non-current employee provisions in its
statement of financial position, except where the company
Pathways Annual Report 14 / 15 • 15

n. Provisions
Provisions are recognised when the entity has a legal or
constructive obligation, as a result of past events, for which
it is probable that an outflow of economic benefits will
result and that outflow can be reliably measured. Provisions
recognised represent the best estimate of the amounts
required to settle the obligation at the end of the reporting
period.
o. Comparative Figures
Where required by Accounting Standards, comparative
figures have been adjusted to conform with changes in
presentation for the current financial year.
When the company retrospectively applies an accounting
policy, makes a retrospective restatement or reclassifies
items in its financial statements, a third statement of
financial position as at the beginning of the preceding
comparative period, in addition to the minimum
comparative financial statements, must be disclosed.
q. Critical Accounting Estimates and Judgments
The directors evaluate estimates and judgments
incorporated into the financial statements based on
historical knowledge and best available current information.
Estimates assume a reasonable expectation of future events
and are based on current trends and economic data,
obtained both externally and within the company.
r. New Accounting Standards for Application in Future
Periods
The AASB has issued a number of new and amended
Accounting Standards and Interpretations that have
mandatory application dates for future reporting periods,
some of which are relevant to the company. The company
has decided not to early adopt any of the new and
amended pronouncements.
p. Accounts Payable and Other Payables
Trade and other payables represent the liability outstanding
at the end of the reporting period for goods and services
received by the company during the reporting period which
remain unpaid. The balance is recognised as a current
liability with the amounts normally paid within 30 days of
recognition of the liability.
Pathways Annual Report 14 / 15 • 16

Note 2:
Revenue And Other Income
2015 2014
$ $
REVENUE
Revenue from government grants and other grants:
- State Government Revenue 3,459,511 3,709,986
- Department of Social Services 842,064 1,288,972
- National Disability Insurance Scheme 386,170 -
- Give Where You Live 30,000 -
- Barwon Health 36,986 329,022
- Disability Services Queensland - 1,174
- DEEDI - (24,988)
- FCEP - 10,877
- ACFE 2,500 26,749
- Salvation Army 38,919 84,992
- State Trustees 1,494 4,909
4,797,644 5,431,693
OTHER REVENUE:
- Clearwater Business Services Income 482,920 347,759
- MadCap Café sales - 140,252
- Training and Support Services Income 156,681 387,503
- Dividends received 32,073 26,914
- Interest Received 63,439 54,968
- Sundry Income 46,988 60,407
782,101 1,017,803
Total Revenue 5,579,745 6,449,496
OTHER INCOME
- (Loss) / Gain on disposal of property, plant and equipment - (236,393)
- Rental income 29,301 30,223
Total other income 29,301 (206,170)
Total revenue and other income 5,609,046 6,243,326
Pathways Annual Report 14 / 15 • 17

Note 3:
Surplus For The Year
2015 2014
$ $
A. EXPENSES
Bad and doubtful debts expense - (1,535)
Finance Costs 7,456 9,043
Rental expense on operating leases:
– Minimum lease payment 380,302 400,476
Audit Remuneration
- Audit services 15,000 15,000
Note 4:
Cash And Cash Equivalents
2015 2014
$ $
CURRENT
Cash at bank and on hand 2,165,534 2,131,993
Total cash on hand as stated in the statement of
financial position and statement of cash flows 2,165,534 2,131,993
Note 5:
Trade And Other Receivables
2015 2014
$ $
CURRENT
Accounts receivable 72,674 45,056
Provision for doubtful debts (1,436) (1,436)
Total current accounts receivable and other debtors 71,238 43,620
Pathways Annual Report 14 / 15 • 18

Note 5:
Trade And Other Receivables
(Continued)
a. Provision for Doubtful Debts
Current trade receivables are generally on 30-day terms.
These receivables are assessed for recoverability and a
provision for impairment is recognised when there is
objective evidence that an individual trade receivable is
impaired. These amounts are impaired at reporting date.
b. Credit Risk – Trade and Other Receivables
The company has no significant concentration of credit risk
with respect to any single counterparty or group of
counterparties other than those receivables specifically
provided for and mentioned within Note 5. The main source
of credit risk to the company is considered to relate to the
class of assets described as “accounts receivable and other
debtors”.
The following table details the company’s trade and other
debtors exposed to credit risk (prior to collateral and other
credit enhancements) with ageing analysis and impairment
provided for thereon. Amounts are considered as “past due”
when the debt has not been settled within the terms and
conditions agreed between the company and the customer or
counterparty to the transaction. Receivables that are past due
are assessed for impairment by ascertaining solvency of the
debtors and are provided for where there are specific
circumstances indicating that the debt may not be fully repaid
to the company.
The balances of receivables that remain within initial trade
terms (as detailed in the table below) are considered to be of
high credit quality.
2015
Gross
Amount
Past
Past Due but Not Impaired (Days Overdue)
Due and
Impaired < 30 31 - 60 61 - 90 > 90
Within Initial
Trade Terms
$ $ $ $ $ $ $
Account receivable 72,674 1,436 - 18,853 9,357 2,637 40,391
Total 72,674 1,436 - 18,853 9,357 2,637 40,391
2014
Account receivable 45,056 1,436 - 14,926 6,113 (6,773) 29,354
Total 45,056 1,436 - 14,926 6,113 (5,335) 29,354
Pathways Annual Report 14 / 15 • 19

Note 6:
Other Current Assets
2015 2014
$ $
Prepayments 36,802 4,580
Accrued income 44,333 -
Total 81,135 4,580
Note 7:
Financial Assets
CURRENT
Financial assets at fair value through profit or loss:
- Investments in Australian listed shares, held for trading 519,859 525,569
Total 519,859 525,569
Note 8:
Property, Plant and Equipment
2015 2014
$ $
Office equipment at cost 384,617 384,617
Less accumulated depreciation (354,070) (333,227)
30,547 51,390
Leasehold improvements at cost 219,773 219,773
Less accumulated depreciation (185,917) (166,697)
33,856 53,076
Rehabilitation program assets at cost 188,131 188,131
Less accumulated depreciation (161,241) (151,258)
26,890 36,873
Furniture, fittings & equipment at cost 99,422 99,422
Less accumulated depreciation (79,960) (72,320)
19,462 27,102
Total property, plant and equipment 110,755 168,441
Pathways Annual Report 14 / 15 • 20

Note 8:
Property, Plant and Equipment
(Continued)
Movements in Carrying Amounts
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the
current financial year:
Office Leasehold Rehab Furniture &
TOTAL
Equipment Improvements Program Fittings
$ $ $ $ $
2014
Balance at the beginning of the year 41,421 292,230 61,049 28,964 423,664
Additions at cost 32,680 8,180 13,273 12,576 66,709
Disposals (1,565) (209,726) (23,455) (5,433) (240,179)
Depreciation expense (21,146) (37,608) (13,994) (9,005) (81,753)
Carrying amount at the end of the year 51,390 53,076 36,873 27,102 168,441
2015
Balance at the beginning of the year 51,390 53,076 36,873 27,102 168,441
Additions at cost - - - - -
Disposals - - - - -
Depreciation expense (20,843) (19,220) (9,983) (7,640) (57,686)
Carrying amount at the end of the year 30,547 33,856 26,890 19,462 110,755
Note 9:
Intangibles
2015 2014
$ $
Software Assets at cost 142,865 142,865
Less accumulated amortisation (142,306) (141,579)
559 1,286
Franchise fees at cost - -
Less accumulated amortisation - -
- -
Total Intangibles 559 1,286
Pathways Annual Report 14 / 15 • 21

Note 9:
Intangibles
(Continued)
Computer
Software
Franchisee
Fees
TOTAL
$ $ $
2014
Balance at the beginning of the year 10,053 15,564 25,617
Additions - - -
Disposals (2,660) (11,035) (13,695)
Amortisation expense (6,107) (4,529) (10,636)
Impairment losses - - -
1,286 - 1,286
2015
Balance at the beginning of the year 1,286 - 1,286
Additions - - -
Disposals - - -
Amortisation expense (727) - (727)
Impairment losses - - -
559 - 559
Note 10:
Accounts Payable And Other Payables
2015 2014
$ $
CURRENT
Accounts payable 81,531 74,549
Accrued expenses 50,352 213,759
Payroll liabilities 88,022 65,938
Deferred grant income 42,835 154,960
GST payable 63,408 106,522
326,148 615,728
Pathways Annual Report 14 / 15 • 22

Note 11:
Employee Provisions
Employee Provisions
$
Opening Balance at 1 July 2014 403,020
Additional provisions raised during the year 324,530
Amounts used (272,992)
Balance at 30 June 2015 454,558
2015 2014
Analysis of Employee Provisions $ $
Current:
- Annual leave entitlements 218,450 207,022
- Long service leave entitlements 144,071 167,493
- Other employee provisions 39,104 -
Total current employee provisions 401,625 374,515
Non-current:
- Long service leave entitlements 52,933 28,505
454,558 403,020
Employee Provisions
Employee provisions represent amounts accrued for annual
leave and long service leave.
The current portion for this provision includes the total
amount accrued for annual leave entitlements and the
amounts accrued for long service leave entitlements that have
vested due to employees having completed the required
period of service. Based on past experience, the company
does not expect the full amount of annual leave or long
service leave balances classified as current liabilities to be
settled within the next 12 months. However, these amounts
must be classified as current liabilities since the company does
not have an unconditional right to defer the settlement of
these amounts in the event employees wish to use their leave
entitlement.
The non-current portion for this provision includes amounts
accrued for long service leave entitlements that have not yet
vested in relation to those employees who have not yet
completed the required period of service.
Pathways Annual Report 14 / 15 • 23

Note 12:
Capital And Leasing Commitments
2015 2014
$ $
a. Finance Lease Commitments
Payable – minimum lease payments:
– Not later than 12 months - -
– Later than 12 months but not later than five years - -
– Later than five years - -
Minimum lease payments - -
Less future finance charges - -
Present value of minimum lease payments - -
b. Operating Lease Commitments
Non-cancellable operating leases contracted for but not capitalised
in the financial statements
Payable – minimum lease payments:
– Not later than 12 months 246,928 275,529
– Later than 12 months but not later than five years 167,849 141,010
– Later than five years - -
414,777 416,539
Note 13:
Economic Dependence
Pathways Rehabilitation and Support Services Limited is dependent on the State and Federal Government funding for the majority
of its revenue used to operate the business. At the date of this report the Board of Directors has no reason to believe the
Government will not continue to support Pathways Rehabilitation and Support Services Limited
Note 14:
Events After The Reporting Period
The directors are not aware of any significant events since the end of the reporting period.
Pathways Annual Report 14 / 15 • 24

Note 15:
Related Party Transactions
2015 2014
$ $
a. KEY MANAGEMENT PERSONNEL
Any person(s) having authority and responsibility for planning, directing and
controlling the activities of the company, directly or indirectly, including any director
(whether executive or otherwise) is considered key management personnel.
Key management personnel compensation:
– Short-term benefits 460,506 405,448
460,506 405,448
Apart from the details disclosed above, no key management personnel has entered into a material contract with the company and
there were no material contract involving key management personnel’s interests exiting at year end. Key management personnel
include the Executives and Directors of the Company.
Note 16:
Cash Flow Information
2015 2014
$ $
Reconciliation of Cash Flow from Operating Activities with
Current Year Surplus 311,633 333,487
PROFIT AFTER INCOME TAX
Non-cash flows: 58,413 92,176
- Depreciation and amortisation expense 5,710 (71,208)
- Net change in fair value of financial assets - 236,393
- (Gains)/Loss on disposal of property, plant and equipment - (1,535)
- Doubtful debts expense
Changes in assets and liabilities:
- (Increase)/decrease in trade and other receivables (27,618) 183,988
- Increase/(decrease) in trade and other payables (289,580) 13,737
- (Increase)/decrease in prepayments (76,555) 35,121
- Increase/(decrease) in employee provisions 51,538 115,154
- (Increase)/decrease in inventories on hand - 6,015
33,541 943,328
Pathways Annual Report 14 / 15 • 25

Note 17:
Financial Risk Management
The company’s financial instruments consist mainly of deposits with banks, local money market instruments, short-term and
long-term investments, receivables and payables, and lease liabilities.
The carrying amounts for each category of financial instruments, measured in accordance with AASB 139 as detailed in the
accounting policies to these financial statements, are as follows:
Note 2015 2014
$ $
FINANCIAL ASSETS
Cash on hand 4 2,165,534 2,131,993
Accounts receivable and other debtors 5 71,238 43,620
Financial assets at fair value through profit or loss 7 519,859 525,569
Total financial assets 2,756,631 2,701,182
FINANCIAL LIABILITIES
Financial liabilities at amortised cost
Accounts payable and other payables 10 326,148 615,728
Total financial liabilities 326,148 615,728
Pathways Annual Report 14 / 15 • 26

Note 17:
Financial Risk Management
(Continued)
Financial Risk Management Policies
The audit and risk committee consists of senior committee
members and the committee’s overall risk management
strategy is to assist the company in meeting its financial
targets while minimising potential adverse effects on financial
performance. Risk management policies are approved and
reviewed by the audit and risk committee on a regular basis.
These include credit risk policies and future cash flow
requirements.
Specific Financial Risk Exposures and Management
The main risks the company is exposed to through its financial
instruments are credit risk, liquidity risk and market risk
relating to interest rate risk and other price risk.
There have been no substantive changes in the types of risks
the company is exposed to, how these risks arise, or the
board’s objectives, policies and processes for managing or
measuring the risks from the previous period.
a. Credit risk
Exposure to credit risk relating to financial assets arises from
the potential non-performance by counterparties of contract
obligations that could lead to a financial loss for the company.
The major source of revenue is expected to be received from
the National Disability Insurance Scheme (NDIS).
Credit risk exposures
The maximum exposure to credit risk by class of recognised
financial assets at the end of the reporting period is equivalent
to the carrying value and classification of those financial assets
(net of any provisions) as presented in the statement of
financial position.
Trade and other receivables that are neither past due nor
impaired are considered to be of high credit quality.
Aggregates of such amounts are detailed at Note 5.
The company has no significant concentrations of credit risk
exposure to any single counterparty or group of
counterparties. Details with respect to credit risk of trade and
other receivables are provided in Note 5.
Credit risk related to balances with banks and other financial
institutions is managed by the finance committee in
accordance with approved board policy.
b. Liquidity risk
Liquidity risk arises from the possibility that the company
might encounter difficulty in settling its debts or otherwise
meeting its obligations in relation to financial liabilities. The
company manages this risk through the following mechanisms:
• preparing forward-looking cash flow analysis in relation to
its operational, investing and financing activities;
• maintaining a reputable credit profile;
• managing credit risk related to financial assets;
• only investing surplus cash with major financial institutions;
and
• comparing the maturity profile of financial liabilities with
the realisation profile of financial assets.
The table below reflects an undiscounted contractual maturity
analysis for financial liabilities.
Cash flows realised from financial assets reflect management’s
expectation 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.
Pathways Annual Report 14 / 15 • 27

Note 17:
Financial Risk Management
(Continued)
Financial liability and financial asset maturity analysis
Within 1 Year 1 to 5 Years Over 5 Years Total
2015 2014 2015 2014 2015 2014 2015 2014
$ $ $ $ $ $ $ $
FINANCIAL LIABILITIES
DUE FOR PAYMENT
Accounts payable and other
payables (excluding estimated
annual leave and deferred
income) 283,313 460,768 - - - - 283,313 460,768
Total expected outflows 283,313 460,768 - - - - 283,313 460,768
FINANCIAL ASSETS
– CASH FLOWS REALISABLE
Cash on hand 2,165,534 2,131,993 - - - - 2,165,534 2,131,993
Accounts receivable and other
debtors 71,238 43,620 - - - - 71,238 43,620
Other financial assets 519,859 525,569 - - - - 519,859 525,569
Total anticipated inflows 2,756,631 2,701,182 - - - - 2,756,631 2,701,182
Net (outflow)/inflow on
financial instruments 2,473,318 2,240,414 - - - - 2,473,318 2,240,414
c. Market risk
(i)
Interest rate risk
Exposure to interest rate risk arises on financial assets and
financial liabilities recognised at the end of the reporting
period whereby a future change in interest rates will affect
future cash flows or the fair value of fixed rate financial
instruments. The company is also exposed to earnings
volatility on floating rate instruments.
The financial instruments that expose the company to
interest rate risk are limited to lease liabilities, listed
shares, government and fixed interest securities, and cash
on hand.
(ii) Other price risk
Other price risk relates to the risk that the fair value or
future cash flows of a financial instrument will fluctuate
because of changes in market prices (other than those
arising from interest rate risk or currency risk) of securities
held.
The company is exposed to other price risk on
investments held for trading or for medium to longer
terms. Such risk is managed through diversification of
investments across industries and geographical locations.
Pathways Annual Report 14 / 15 • 28

Note 17:
Financial Risk Management
(Continued)
The company’s investments are held in the following sectors at the end of the reporting period:
2015 2014
Utilities 3% 4%
Insurance 3% 2%
Banks 18% 18%
Transportation 1% 0%
Materials 5% 7%
Diversified Financials 17% 14%
Telecomms 9% 9%
Food & Staples Retailing 6% 8%
International Shares 4% 3%
Energy 4% 4%
Cash Management Trust 21% 20%
Property Listed 7% 6%
Mortgage Trusts 1% 3%
Fixed Interest Listed 1% 2%
100% 100%
Sensitivity analysis
The following table illustrates sensitivities to the company’s exposures to changes in interest rates and equity prices. The table
indicates the impact on how profit and equity values reported at the end of the reporting period would have been affected by
changes in the relevant risk variable that management considers to be reasonably possible.
These sensitivities assume that the movement in a particular variable is independent of other variables.
Profit
Equity
$ $
Year ended 30 June 2015
+/– 2% in interest rates 43,311 43,311
+/– 10% in listed investments 51,986 51,986
Year ended 30 June 2014
+/– 2% in interest rates 42,640 42,640
+/– 10% in listed investments 52,557 52,557
No sensitivity analysis has been performed on foreign exchange risk as the company has no material exposures to currency risk.
There have been no changes in any of the assumptions used to prepare the above sensitivity analysis from the prior year.
Pathways Annual Report 14 / 15 • 29

Note 17:
Financial Risk Management
(Continued)
Fair Values
Fair value estimation
The fair values of financial assets and financial liabilities are
presented in the following table and can be compared to their
carrying amounts as presented in the statement of financial
position. Fair values are those amounts at which an asset could
be exchanged, or a liability settled, between knowledgeable,
willing parties in an arm’s length transaction.
Fair values may be based on information that is estimated or
subject to judgement, where changes in assumptions may have
a material impact on the amounts estimated. Areas of
judgement and the assumptions have been detailed below.
Where possible, valuation information used to calculate fair
values is extracted from the market, with more reliable
information available from markets that are actively traded. In
this regard, fair values for listed securities are obtained from
quoted market bid prices. Where securities are unlisted and no
market quotes are available, fair value is obtained using
discounted cash flow analysis and other valuation techniques
commonly used by market participants.
Differences between fair values and carrying amounts of
financial instruments with fixed interest rates are due to the
change in discount rates being applied by the market since
their initial recognition by the company. Most of these
instruments, which are carried at amortised cost (ie trade
receivables, loan liabilities), are to be held until maturity and
therefore the fair value figures calculated bear little relevance
to the company.
2015 2014
Footnote
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
$ $ $ $
FINANCIAL ASSETS
Cash and cash equivalents (i) 2,165,534 2,165,534 2,131,993 2,131,993
Loans and receivables (i) 71,238 71,238 43,620 43,620
Financial assets at fair value through profit or loss:
- At fair value:
- Listed investments held for trading 519,859 519,859 525,569 525,569
Total financial assets 2,756,631 2,756,631 2,701,182 2,701,182
Financial liabilities
Accounts payable other payables (i) 326,148 326,148 615,728 615,728
Total financial liabilities 326,148 326,148 615,728 615,728
i. Cash on hand, accounts receivable and other debtors, and
accounts payable and other payables are short-term
instruments in nature whose carrying amount is
equivalent to fair value. Trade and other payables exclude
amounts provided for annual leave, which is outside the
scope of AASB 139.
ii. For listed fair value through profit or loss financial assets,
closing quoted bid priced at the end of the reporting
iii.
period are used. In determining the fair values of the fair
value through profit or loss assets, the directors have used
inputs that are observed either directly (as prices) or
indirectly (derived from prices)
Fair values are determined using a discounted cash flow
model incorporating current commercial borrowing rates.
The fair value of fixed rate debt will differ from carrying
values.
Pathways Annual Report 14 / 15 • 30

Note 18:
Auditors Remuneration
2015 2014
$ $
Audit Services
Auditors of the Company 15,000 15,000
15,000 15,000
Note 19:
Members’ Guarantee
The company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the company is wound up,
the constitution states that each member is required to contribute a maximum of $50 each towards meeting any outstanding
obligations of the entity. At 30 June 2015, the number of members was eight.
Note 20:
Entity Details
The registered office and principal place of business of the entity is:
Pathways Rehabilitation and Support Services Limited
61 Pakington Street, Geelong West
Victoria 3218, Australia
Pathways Annual Report 14 / 15 • 31

Responsible Persons’ Declaration
In accordance with a resolution of the directors of Pathways Rehabilitation and Support Services Limited, the directors declare that:
1. The financial statements and notes, as set out on pages 7 to 31, are in accordance with the Australian Charities and Not-forprofits
Commission Act 2012 and:
a. comply with Australian Accounting Standards; and
b. give a true and fair view of the financial position of the company as at 30 June 2015 and of its performance for the year
ended on that date.
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 and subsection 60.15(2) of the Australian
Charities and Not-for-profit Commission Regulation 2013.
PHILIPPA BAKES | Chairperson
JOHN STEVENS | Director
Dated this 21st day of September Dated this 21st day of September 2015
Pathways Annual Report 14 / 15 • 32

Independent Auditor’s Report To The Members
Of Pathways Rehabilitation And Support Services Limited
Report on the Financial Report
We have audited the accompanying financial report of
Pathways Rehabilitation and Support Services Limited (the
company), which comprises the statement of financial position
as at 30 June 2015, the statement of profit or loss and other
comprehensive income, statement of changes in equity and
statement of cash flows for the year then ended, notes
comprising a summary of significant accounting policies and
other explanatory information, and the responsible persons’
declaration.
Directors’ Responsibility 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-profits 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.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial
report based on our audit. 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.
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
judgment, including the 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 entity’s 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 believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
Independence
In conducting our audit, we have complied with the
independence requirements of the Australian Charities and
Not-for-profits Commission Act 2012. We confirm that the
independence declaration required by the Australian Charities
and Not-for-profits Commission Act 2012, which has been
given to the directors of Pathways Rehabilitation and Support
Services Limited, would be in the same terms if given to the
directors as at the time of this auditor’s report.
Opinion
In our opinion, the financial report of Pathways Rehabilitation
and Support Services Limited is in accordance with the
Australian Charities and Not-for-profits Commission Act 2012,
including:
i. Giving a true and fair view of the company’s financial
position as at 30 June 2015 and of its performance for the
year ended on that date; and
ii. Complying with Australian Accounting Standards and the
Australian Charities and Not-for-profits Commission
Regulation 2013.
LBW CHARTERED ACCOUNTANTS
SRIPATHY SARMA | Principal
Dated this 21st day of September 2015
Pathways Annual Report 14 / 15 • 33

ACKNOWLEDGEMENTS
The Pathways Board, Management and staff wish to acknowledge and thank
the many organisations and individuals for their support and contributions
over the past 12 months.
Service Partners:
• Barwon Health
- Jigsaw (headspace)
- Homeless Outreach Psychiatric Services
• Colac Area Health
• Matchworks (Karingal)
• Services Connect
Partnerships:
Pathways works closely with many agencies, community services
and networks and we thank these organisations for their
collaboration.
Clearwater Property care would like to thank its many valued
customers with special thanks to:
• Geelong Kindergarten Association
• Nelson Park
• Salvo Connect
• City of Greater Geelong
• Vic Roads Ring Road project
• Bethany
• Geelong Best Western Motel
Government:
Pathways receives funding for its services from a number of
government departments including:
• Department of Health & Human Services
• Department of Social Services
• National Disability Insurance Agency
Sponsors / Donors:
• Give Where You Live
• GMHBA
Corporate Partnerships:
• Bendigo Financial Planning
• Blood Group
• Connect Tel
• Evongo
• Fuse Advisory
• LBW Chartered Accountants
• NAB
• Vecci
• Pacific National
• Telstra
• Caron
• Tannoch Brae Retirement Village
• Sirovilla Retirement Village
Pathways Annual Report 14 / 15 • 34

61 Pakington Street
Geelong West, Victoria, 3218
P: (03) 5229 8295
E: admin@pathways.org.au
www.pathways.org.au