Club Heal Financial Statement 2018/19

CLUB HEAL

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2019

13. Operating lease commitments
The Association leases office (included in rehabilitation expenses) and equipment under non-
cancellable operating lease agreements.
The future minimum rental payable for equipment under non-cancellable operating leases
contracted at the reporting date but not recognised as liabilities, are as follows:

2019 2018
$ $

Not later than one year 1,500 1,500
Later than one year but not later than five
years 3,875 5,375
5,375 6,875

There is no future minimum rental payable under operating leases at the end of the reporting
period.
Minimum lease payments recognised as an expense in the statement of financial activities for
the financial year ended 31 March 2019 amounted to $44,615 (2018: $34,201) and $1,605
(2018: $669) respectively.

14. Management of conflict of interest
There is no paid staff in the Association’s Executive Committee.
All Executive Committee members are required to disclose any interest that they may have,
whether directly or indirectly, that the Association may enter into any organisations that the
Association has dealings with or is considering dealing with; and any personal interest accruing
to him as one of the Association’s supplier, user of services or beneficiary. Should there be any
potential conflict of interest, the affected Executive Committee member may not vote on the
issue that was the subject matter of the disclosure. Detailed minutes will be taken on the
disclosure as well as the basis for arriving at the final decision in relation to the issue at stake.

15. Fair value of assets and liabilities
Assets and liabilities not measured at fair value
Cash and cash equivalents, other receivables and other payables
The carrying amounts of these balances approximate their fair values due to the short-term
nature of these balances.
Finance lease payables
The carrying amounts finance lease payables approximate their fair values as they are subject
to interest rates close to market rate of interests for similar arrangements with financial

Page 37

CLUB HEAL

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2019

16. Financial risk management

The Association is exposed to financial risks arising in the normal course of business. The
Association does not hold or issue any derivative financial instruments for trading purposed or
to hedge against fluctuations in interest or foreign exchange rates.

Credit risk

Credit risk refers to the risk of loss that may arise on outstanding financial instruments should
a counterparty default on its obligations. The Association’s exposure to credit risk arises
primarily from other receivables and cash and bank balances which are the Association’s
principal classes of financial assets. For cash and short-term deposits, the Association
minimises credit risk by dealing only with high credit quality counterparties.

At the end of the financial year, the Association’s maximum exposure to credit risk is
represented by the carrying amount of each class of financial assets recognised in the statement
of financial position.

Cash and short-term deposits are laced with reputable financial institutions or companies with
high credit rating and no history of default.

The Association has no significant concentration of credit risk.

Liquidity risk

Liquidity risk refers to the risk that the Association will encounter difficulties in meeting its
short-term obligations due to shortage of funds. The Association manages its liquidity risk by
maintaining sufficient level of cash and cash balances.

Analysis of financial instruments by remaining contractual maturities

The table below summarises the maturity profile of the Association’s financial assets and
liabilities at the reporting date based on contractual undiscounted repayment obligations.

2019
Carrying Contractual One year or Two to five
amount cash flows less years
$$ $
$

Financial assets 821,400 821,400 821,400 -
Other receivables 625,853 625,853 625,853 -
Cash and short-term deposits 1,447,253 1,447,253 1,447,253 -
Total undiscounted financial
assets

Financial liabilities 245,877 245,877 245,877 -
Other payables 1,650 1,873 1,605 268
Finance lease payables 223 223 191 32
Estimated interest payables 300
Total undiscounted financial 247,750 247,973 247,673
liabilities

Total net undiscounted financial 1,199,503 1,199,280 1,199,580 (300)
assets

Page 38

CLUB HEAL

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2019

16. Financial risk management – cont’d 2018
Liquidity risk – cont’d
Contractual One year or Two to five
Carrying cash flows less years
amount $
$$
$

Financial assets 565,863 565,863 565,863 -
Other receivables 301,879 301,879 301,879 -
Cash and short-term deposits
867,742 867,742 867,742 -
Total undiscounted financial
assets

Financial liabilities 70,070 70,070 70,070 -
Other payables 3,064 3,478 1,605 1,873
Finance lease payables
Estimated interest payables 414 414 191 223

Total undiscounted financial 73,548 73,962 71,866 2,096
liabilities

Total net undiscounted financial 794,194 793,780 795,876 (2,096)
assets

Market risk

Market risk is the risk that changes in market prices, such as interest rates and foreign exchange
rates will affect the Association’s income. The objective of market risk management is to
manage and control market risk exposures within acceptable parameters, while optimising the
return on risk.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Association’s
financial instruments will fluctuate because of changes in market interest rates. The
Association’s exposure to interest rate risk arises primarily from their cash and cash
equivalents and finance lease.

The Association does not expect any significant effect on the Association’s financial
activities arising from the effects of reasonably possible changes to interest rates on interest
bearing financial instruments at the end of the financial year.

Page 39

CLUB HEAL

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2019

16. Financial risk management – cont’d

Market risk – cont’d

(ii) Foreign currency risk

Foreign currency risk is the risk that the value of a financial instrument will fluctuate due to
changes in foreign exchange rates.

The Association has no significant exposure to market risk for changes in foreign exchange.

17. Reserve policy
The Association’s reserve measurement is calculated as follow:

2019 2018
$ $
835,049
(a) Unrestricted funds 127,997 155,488
(b) Restricted funds 1,439,305 990,537

Total funds 1,567,302 436,648
1,073,984
(a2) Annual expenditure under unrestricted 643,267 1,510,632
funds
1,447,063 1.91%
(b2) Annual expenditure under restricted 2,090,330
funds 0.14%

Total annual expenditure

Ratio of unrestricted funds to annual 0.20%
expenditure (a/a2)

Ratio of restricted funds to annual 0.99%
expenditure (b/b2)

The Association do not have any externally imposed fund requirements.

Page 40

CLUB HEAL

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2019

18. Comparative information

The comparative statement for 2017 and 2018 has been restated due to omis
statements. The grant receivables have been restated for matching on the exp

2018 A
Reported

$

Statement of financial 881,333

activities
Grants

Statement of financial 9,814
position
Current assets
Other receivables

Equity and liabilities (400,561)
General fund - restricted

ssion of grant for particular year but received after financial year end in the financial
penditure to present actual result for the financial year.

Adjustment 2018 2017 Adjustment 2017
$ Restated Reported $ Restated

$ $ $

183,827 1,065,160 586,134 372,222 958,356

556,049 565,863 7,261 372,222 379,483
556,049 155,488 (208,890) 372,222 163,332

Page 41

CLUB HEAL
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2019
19. Authorisation of financial statements for issue

The financial statements for the financial year ended 31 March 2019 were authorised for issue
in accordance with a resolution of the Executive Committee of the Association on the date of
the Statement by Executive Committee.

Page 42