This document outlines the presentation of NACCHO's financial report for the year ended 30 June 2017. It includes an overview of the organization's financial statements and reporting requirements. The financial report received an unqualified independent audit opinion and showed an overall profit of $150,965 for the year. Key items included a reduction in grant funding compared to the previous year and decreases in certain expenses like training and travel. NACCHO's statement of financial position showed a solid financial position with net assets of $1,485,550 as of 30 June 2017.

2. OUTLINE OF PRESENTATION
1. Overview of NACCHO’s Financial Report
2. Key Audit and Assurance steps
3. Independent Auditors Report
4. Overall financial results
5. Statement of Comprehensive Income
6. Variance Analysis
7. Statement of Financial Position
8. Statement of Cash Flows
9. Future Events

3. 1. OVERVIEW OF FINANCIAL REPORT
• NACCHO is a public company limited by guarantee and
reports under the Australian Charities and Not-for-profits
Commission Act 2012 (ACNC)
• It is required to prepare a general purpose financial report
annually intended to meet the information needs common
to users who are unable to command the preparation of
reports tailored to their specific needs
• NACCHO must lodge the financial report with the ACNC
and hold an AGM
• NACCHO’s financial report is a structured representation
of the financial position and financial performance of the
entity

4. OVERVIEW OF FINANCIAL REPORT
(Continued)
• NACCHO’s financial report for the year ended 30 June
2017 comprises:
– A Statement of Comprehensive Income;
– A Statement of Financial Position;
– A Statement of Changes in Equity; and
– A Statement of Cash Flows;
– Notes, comprising a summary of significant
accounting policies and other explanatory notes

5. 2. KEY AUDIT ASSURANCE AND STEPS
• Directors’ Declaration (page 82). Signed 5 Sept 2017
-financial statements comply with Accounting Standards
and Corporation Regs
- give a true and fair view
- NACCHO will be able to pay debts when they fall
due.
• Board Audit and Assurance Committee including
independent Chair, reviewed the statements
• Independent Auditors RSM audited the financial report for
the year ended 30 June 2017.

6. 3. INDEPENDENT AUDITORS REPORT TO
MEMBERS OF NACCHO
• The Auditor’s have provided an independent Auditor’s
Report to NACCHO’s Members where in their opinion the
2016-17 financial report (page 84):
• (a) gives a true and fair view of the registered entity’s
financial position as at 30 June 2017 and of its financial
performance and cashflows for the year ended on that
date; and
• (b) has complied with the Australian Accounting
Standards and Division 60 of the Australian Charities and
Not-for profits Commission Regulation 2013.

7. 4. OVERALL FINANCIAL RESULTS FOR 2016/17
• NACCHO is in a solid financial position and is a ‘going
concern”
• In 2016-17 NACCHO:
-returned profit - $150,965 (2016- $189,186)- pg 67
-has net assets - $1,485,550 (2016-$1,334,585)-pg 68
-is solvent with current liquid assets of $ 3,112,968
exceeding current liabilities (due in the next 12
months) of $1,699,017- pg 68

8. 5. STATEMENT OF COMPREHENSIVE INCOME
(page 67)
• Also known as the Income Statement, Profit and Loss
Account or Statement of Financial Performance
• This is a Statement showing NACCHO’s revenues and
expenses and the profit or loss that results from these
items for a given period
• Profit for the year ended 30 June 2017 is $150,965.
(2016 $189,186)
• This profit has enabled equity to increase by this amount.

9. 6. VARIANCE ANALYSIS (page 75)
• Major variances between 2015-16 and 2016-17 Financial
Years are as follows:
• Grant Funding (note 3) – In FYE 2016 the total funding
was $5,233,857 compared to $4,272,796 in FYE2017, a
reduction of $961,061 in the following major donors:
-Ear and Hearing -$566,000
-NHMRC- $37,000
-Fred Hollows Foundation- $ 175,000
• Other income relates to registration for events and
workshops ($335,527) and project management fees
($200,396).

10. VARIANCE ANALYSIS (page 75)
• Employee benefit expenses and contractors (page 67) –
-For 2016 total employee ($1,969,175) and contractor
expenses ($402,000) was $2,371,175.
-Whilst in 2017 total employee ($2,203,665) and
contractor expenses were nil (nil)
In 2016 NACCHO underwent a major restructure and a
number of staff either resigned or were made redundant,
contractors were hired to perform certain roles.
Subsequently contractors and other staff members were
hired as employees in 2017.

11. VARIANCE ANALYSIS- page 75
• (CONTINUED)
• Training and development (note 4) – There was a
decrease from $482,589 to $5,102 from 2016 to 2017. In
2016 the Ear and Hearing Program required participants
to be trained and workshops were held in 6 venues
training 100 participants. This program completed in
2016.
• Travel Expenses – Likewise there a reduction of travel
expenses from $570,969 in 2016 to $409,008 in 2017
due to completion of the Ear and Hearing Program.

12. 7. STATEMENT OF FINANCIAL POSITION (page 68)
• Shows the amount of assets (things NACCHO owns) and
liabilities (amounts we owe) as at the 30 June 2017. The
net of assets and liabilities represents the equity of the
organization. This is currently $1,485,550.
• Whilst NACCHO has cash and investments of $2,807,000
at Note 11 (page 78), $1,242,000 relates to unspent
grants of $441,000 (from Primary Health Care, Qumax
and FASD projects) and grants received in advance of
$801,000 (Dept of Health). Also assets to the value of
$583,000 for the new fit-out will be funded from these
cash reserves.

13. 8. STATEMENT OF CASH FLOWS (Page 70)
• This is a statement summarising NACCHO’s cash inflows
and outflows
• Cash flow information provides users of financial reports
with a basis to assess the ability of the entity to generate
cash and the needs of the entity to utilise the cash flows

14. STATEMENT OF CASH FLOWS (page 70)
• This is a statement summarising NACCHO’s cash inflows
and outflows in the following categories
– Operating Activities
– Investing Activities
– Financing Activities
• NACCHO’s cash balance as at 30 June 2017 was
$2,707,770 and short term investments of $99,871

15. 9. EVENTS AFTER THE REPORTING PERIOD
(page 81)
• Three year single National Network Funding Agreement
commenced on 1 July.
• 3 year non-cancellable operating lease with 2 year option
commenced on 1 Sept. Lease has a 20 % incentive
contribution ($247K) to fitout costs which totalled $830K.

16. Questions
QUESTIONS AND ANSWERS

17. THANK YOU FOR YOUR TIME
AND ATTENTION