notes to the financial statements

Transcription

Synagogue AR 2012 Cover:Central Synagogue A/R Cover 17/04/14 9:42 AM Page 1
Ninety-Seventh
Annual Report
2013-5774
THE
CENTRAL
SYNAGOGUE
A Way of Life
The Board of Management
2013 – 5774
BACK ROW (left to right)
Mr Richard Eisenstein, Dr George Pal, Mr Manfred Holzman, Mr Robert Kaye SC,
Mr Lewis Rupell, Mr Paul Rubenstein, Ms Sarah Tritsch
FRONT ROW (left to right)
Ms Judy Wilkenfeld, Mr Michael Rothner, Mr Danny Taibel, Mrs Charmaine Roth,
Mrs Anne-Louise Oystragh OAM
ABSENT
Mr Stanley Kalinko, Mr Paul Keen, Dr Robert Rosen, Mr Adrian Skurnik, Mr Harry Taibel
Synagogue 97th AR 2013:Central Synagogue A/R Insides 28/04/14 9:47 AM Page 1
THE CENTRAL SYNAGOGUE
BOARD OF MANAGEMENT
2013 – 5774
ACTING PRESIDENT
Mr Danny Taibel
VICE-PRESIDENT
Mr Paul Rubenstein
TREASURER
Mr Stanley Kalinko
IMMEDIATE PAST PRESIDENT
Dr Robert Rosen
MEMBERS OF THE BOARD
Mr Richard Eisenstein
Mr Michael Rothner
Mr Manfred Holzman
Mr Lewis Rupell
Ms Deborah Huber (resigned 12/1/14)
Mr Harry Taibel
Mr Robert Kaye SC
Mrs Sarah Tritsch
Dr George Pal
Ms Judy Wilkenfeld
Mrs Charmaine Roth
GOVERNORS
Mr Joseph Brender AO (resigned 9/7/13)
Mr Paul Keen
Mrs Anne-Louise Oystragh OAM
Mr Shya Redelman (deceased)
Mr Adrian Skurnik
CHIEF FINANCIAL OFFICER
Mr Phillip Ginges
HON. SOLICITOR
Mr John Landerer CBE AM
MINISTERS
Rabbi Levi Wolff
Rabbi Yehuda Niasoff
Cantor Shimon Farkas OAM
Rabbi David Freedman
HINENI SHALIACH
Mr Aaron Kalman
Mrs Shachar Kalman
OFFICE STAFF
Ms Malka Barukh
Mrs Yasmin Goldberg
Ms Leigh Golombick
Mr Nicholas Halmay
Mr Rai Parisat
Mrs Vicky Sherman
Ms Janice Woolf
AUDITOR
Mr Peter Hersh
Logicca Assurance Pty Ltd
Chartered Accountants
15 Bon Accord Avenue, Bondi Junction 2022 Phone: 9355 4000 Fax 9355 4099
www.centralsynagogue.com.au
1
The Central Synagogue Team
CLERGY (left to right): Rebbetzin Chanie Wolff, Rabbi Levi Wolff, Cantor Shimon Farkas OAM,
Rabbi David Freedman, Rabbi Yehuda Niasoff
HINENI SHALICHIM: Aaron Kalman and Shachar Kalman
STAFF ~ BACK ROW (left to right): Malka Barukh, Rai Parisat, Janice Woolf,
Phillip Ginges, Leigh Golombick
FRONT ROW (left to right): Vicky Sherman, Nicholas Halmay, Yasmin Goldberg
2
PRESIDENT’S REPORT
Dear members,
I am honoured to present this report as Acting President of The Central Synagogue.
We can all be proud of the fact that our shule has the largest congregation in
Australia standing solidly on three fundamental and powerful foundations: spiritual
life, continuity of a vibrant congregation, and a love and support of Israel.
I am passionate about our shule and thoroughly enjoy being part of such a warm and hamische community,
which for many of us is a home away from home. It has been my privilege to have served on the Executive
of the Synagogue in the last few years, an experience that continues to be both enriching and rewarding.
In 2009, after consultation with some of our major benefactors, the Board of Management, under the
leadership of Paul Keen, purchased the property at 2 Kenilworth St, Bondi Junction. This house, which
sits immediately adjacent to the shule’s rear access was initially sought following the devastating fire in
1995 but was not for sale at that time.
Rabbi Wolff together with members of the Board, dreamed of creating an additional area catering to the
youth and children of our shule. As well as revamping the entire educational building and creating a youth
library, créche and children’s play area plans are in place for an outdoor art gallery, a space for simchas
and kiddushim and a brand new Succah.
This new youth campus and outdoor area will finally give our young members the facility they so deserve.
The programs and activities will cater for their needs and help to foster a love and appreciation for our
heritage, yiddishkeit and a more meaningful Shule experience.
This will be the most ambitious project ever carried out by Central since the rebuilding of our shule in
1995 and the Board has been working tirelessly in realising this dream.
This phenomenal undertaking would not be possible without the incredible generosity of Eva and Paul
Lederer. Their amazing support shows not only unprecedented generosity, it also cements a belief in the
future of The Central Synagogue for generations to come.
The Lederer family gift together with the exceptional generosity of Mr Harry Triguboff AO and Frank
Lowy AC as well as others in our community has allowed us to raise to date $5.6 million. We have the
confidence in reaching our target of $8 million and in doing so, we will be able to not only have a world
class youth facility, but also pay off the shule’s debt.
We are fortunate to have some incredible and dedicated people who are instrumental in the success of our
shule, each of whom plays a vital role in our many activities.
I would like to thank our Vice President, Paul Rubenstein who is a committed and passionate member of
the Executive and our dedicated & diligent Treasurer, Stanley Kalinko. Both have made an outstanding
contribution to the shule with their unwavering commitment and working with them has been an absolute
pleasure.
I would also like to thank the Governors and the entire Board of Management for their ongoing dedication
and support. Thanks goes to community stalwart Joseph Brender AO who served as President before me,
without doubt he has been a most valued and generous leader of our shule. In addition, I would like to
acknowledge Anne-Louise Oystragh OAM who served on the Board for over 17 years and has also been
instrumental in the success of our SPARCS program.
3
We are blessed to have Rabbi Levi and Rebbetzin Chanie Wolff at the helm of The Central Synagogue
family. They are a dynamic, committed and hugely enthusiastic team and the inclusive and hamische
atmosphere that exists in our shule, is largely due to Levi and Chanie’s hard work and dedication. The
shule is also fortunate to have the well respected and supportive Rabbi David Freedman who plays a vital
role in pastoral care and activities with the older members of our congregation.
We are proud to have the finest chazzanim in the country in Chazzan Shimon Farkas OAM and Rabbi
Yehuda Niasoff. On behalf of the Board of Management, I extend to Shimon and Yehuda, a huge thanks
for their inspiration and efforts who together with the senior and boys’ choirs enhance our services on
Shabbatot and Chagim.
We are fortunate to have a devoted Shamas in Frank Adler. Our shule services run efficiently due to the
voluntary role Frank plays with sheer dedication week in and week out. I would also like to take this
opportunity to thank Dennis Rudnick, Alfred Gumpert, Rose Mautner, Mally Schwartz and Rachel Levine
for the ongoing support they show our shule.
My sincere thanks goes to our honorary Solicitor, Mr John Landerer, CBE AM and his fellow Director,
Peter Downie. John continues to give generously of his time and expertise which is very much
appreciated.
To Leigh Golombick, our Marketing and Communications Manager and Phil Ginges, our Chief Financial
Officer, thank you for your long hours and dedication in ensuring the smooth running of the office. Leigh
is supported by the hardworking staff and tireless efforts of Malka Barukh, Janice Woolf, Nicholas
Halmay, Vicky Sherman, Yasmin Goldberg and Rai Parisat.
In December, 2013, we were delighted to welcome our new Hineni schlichim from Israel, Aaron and
Shachar Kalman. Aaron will be building on the very successful year Hineni had in 2013 which included
fun and educational weekly activities and fantastic camps. Aaron, together with the past and present
roshim, has created several new programs and initiatives working alongside other Zionist organisations.
The Central Synagogue is proud to partner with other Zionist organisations and last year co-hosted events
featuring exceptional speakers. The shule has partnered with the UIA, AIJAC and the Zionist Council of
NSW, facilitating inspirational functions with esteemed guests such as Naftali Bennett and Natan
Sharansky, just to name a few.
At Central, security is paramount. On behalf of our entire congregation, I would sincerely like to thank
The Communal Security Group whose highly professional voluntary members are the jewel of our
community. Working alongside Calamity Security, they give hours of their time in order to protect our
shule from harm.
It is with deep sorrow that we recently marked the passing of Shya Redelman who was President of
Central from 1989 – 1990. Shya was a highly devoted and inspirational President and Governor who was
also committed to many other communal organisations. He will be sorely missed by all who knew him
and our thoughts are with the entire Redelman family.
On a final note, I would like to thank each and every one of you, the members of our Central family who
support the shule, attend services and take part in our activities. Central really is a family shule where
every Jew is welcome. On a personal note, together with my wife, Dannielle and our four children, I look
forward to many, many happy years at The Central Synagogue.
Danny Taibel
Acting President
4
TREASURER’S REPORT
The Central Synagogue continued to be the premier synagogue in Sydney and
probably in Australia due to our outstanding services in our magnificent building.
Our services were outstanding because of the calibre of our 2 Rabbonim, 2
Chazonim and choir. Our capable staff provided the support that was necessary to
maintain our high standards.
However, to provide these services to our members, we have high costs. We did our best to reduce our
costs this year and I note that the amount of our budgeted expenses for this current year are $400,000 less
than the previous year. Like every other organisation, we have to contend with inflation, so we decided to
make a small CPI increase, to help us to balance our budget
We also have debt of $4.125m, which is due mainly to the purchase of the Rabbi’s beautiful house and the
house next door at 2 Kenilworth Street, Bondi Junction.
There was some doubt last year as to whether we could afford to keep the house next door. I said last year
that an important challenge for this year’s Executive and Board was to discharge this debt.
So this year we decided, as a Board, to make a substantial effort to raise a significant amount of funds to
address these issues This effort is still in its early phase, but thanks to the efforts of Rabbi Wolff and our
acting President, Danny Taibel, and the outstanding generosity of the members we have approached, we
are well on the way to raising the funds to secure the house next door and to secure the future of the
Synagogue for our children and grandchildren.
We are very grateful to those members who have already responded to these efforts and to the many
generous benefactors who support the Synagogue by way of offerings.
The Synagogue budgets on a cash basis for a small cash surplus each year. In the 2013 year as can be seen
from the statement of cash flows the Synagogue generated $45,106 from operations which was in line with
our budget and expectations. The financial accounts are prepared on an accrual basis and include
provisions and depreciation and reflect an accounting loss of $599,038.
I want to recognise the work done by Peter Benjamin again this year to help us to collect the overdue
amounts owing by members and associate members. To save costs, we brought collections in-house part
way through the year and Phillip Ginges continued Peter’s good work.
We have 46 men’s seats & 85 women’s seats available for sale and we will again be making a concerted
effort to sell these seats. Leigh Golombick has done a good job in selling seats since she started working
for the Synagogue.
I want to thank Danny Taibel, the acting President & Paul Rubenstein, the Vice President, for their hard
work and support and camaraderie during the year. I also want to thank Phil Ginges, Leigh Golombick and
Vicky Sherman for their contribution to making my life as Treasurer, easier.
It has been a privilege and a pleasure for me to be the Treasurer of our great Synagogue again this year.
Stan Kalinko
Honorary Treasurer
5
ABN: 52 856 191 254
FINANCIAL REPORT
FOR THE YEAR ENDED
31 DECEMBER 2013
CONTENTS
Directors' Report
7
Auditors' Independence Declaration
11
Statement of profit or loss and other comprehensive income
12
Statement of financial position
13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16
Directors' declaration
29
Independent auditor's report to the members of The Central Synagogue
30
Profit and Loss Statement
32
General information
The financial report covers The Central Synagogue as an individual entity. The financial
report is presented in Australian dollars, which is The Central Synagogue's functional and
presentation currency.
The financial report consists of the financial statements, notes to the financial statements
and the directors' declaration.
The Central Synagogue is a not-for-profit unlisted public company limited by guarantee.
The financial report was authorised for issue, in accordance with a resolution of directors,
on 23rd April, 2014. The directors do not have the power to amend and reissue the financial
report.
6
ABN: 52 856 191 254
DIRECTORS’ REPORT
The directors present their report, together with the financial statements, on the company for the year ended 31
December 2013.
Directors
The following persons were directors of the company during the whole of the financial year and up to the date of
this report, unless otherwise stated:
Mr Danny Taibel
Mr Joseph Brender AO (appointed 13/05/2013) (resigned 9/07/2013)
Dr Robert Rosen
Mr Paul Rubenstein
Mr Robert Kaye SC
Mr Stanley Kalinko
Mr Manfred Holzman (appointed 13/05/2013)
Ms Deborah Huber (resigned 12/01/2014)
Mr Trevor Leach (resigned 13/05/2013)
Mr Francis Levy AM (resigned 13/05/2013)
Dr George Pal (appointed 13/05/2013)
Mrs Charmaine Roth
Mr Michael Rothner
Mr Lewis Rupell
Mr Harry Taibel
Mr Yoseph Tal (resigned 13/05/2013)
Ms Sarah Tritsch
Ms Judith Wilkenfeld
Objectives
The entity's short term objectives are to provide to our community the best possible service and programs, servicing
over 5,000 stakeholders.
The entity's short term objectives are to remain as one of the world's foremost synagogues.
Strategy for achieving the objectives
To achieve these objectives, the entity has adopted the following strategies:
• employing a full time Community relations person,
• continuing to evaluate our programs and services,
• undertaking evaluation to expand future facilities, and
• creating an environment whereby staff and members are encouraged to contribute and excel.
Principal activities
During the financial year the principal continuing activities of the company consisted of:
• The operation of the Synagogue.
7
ABN: 52 856 191 254
DIRECTORS’ REPORT
Information on directors
Information on directors
Name:
Title:
Mr Danny Taibel
Acting President from 12/08/2013
Immediate Past President to 13/05/2013
Name:
Title:
Mr Joseph Brender AO
President 13/05/2013 to 9/07/2013
Name:
Title:
Dr Robert Rosen
President to 13/05/2013
Immediate Past President from 13/05/2013
Name:
Title:
Mr Paul Rubenstein
Vice President from 13/05/2013
Name:
Title:
Mr Robert Kaye SC
Vice President to 13/05/2013
Name:
Title:
Mr Stanley Kalinko
Treasurer
Name:
Title:
Director
Name:
Title:
Mr Manfred Holzman
Director from 13/05/2013
Name:
Title:
Ms Deborah Huber
Director to 12/01/2014
Name:
Title:
Mr Trevor Leach
Name:
Title:
Mr Francis Levy AM
Name:
Title:
Dr George Pal
Director from 13/05/2013
Name:
Title:
Mrs Charmaine Roth
Director
Name:
Title:
Mr Michael Rothner
Director
Name:
Title:
Mr Lewis Rupell
Director
Name:
Title:
Mr Harry Taibel
Director
Name:
Title:
Mr Yoseph Tal
8
ABN: 52 856 191 254
DIRECTORS’ REPORT
Name:
Title:
Ms Sarah Tritsch
Director
Name:
Title:
Director
Meetings of Directors
The number of meetings of the company's Board of Directors ('the Board') and of each Board committee held
during the year ended 31 December 2013, and the number of meetings attended by each director were:
Attended
Mr Mr Danny Taibel
Mr Joseph Brender AO (in his capacity as a director)
Dr Robert Rosen
Mr Paul Rubenstein
Mr Robert Kaye SC
Mr Stanley Kalinko
Mr Manfred Holzman
Ms Deborah Huber
Mr Trevor Leach
Mr Francis Levy AM
Dr George Pal
Mrs Charmaine Roth
Mr Michael Rothner
Mr Lewis Rupell
Mr Harry Taibel
Mr Yoseph Tal
Ms Sarah Tritsch
Full Board
9
6
8
7
7
9
6
4
3
1
3
9
8
9
7
2
8
6
Held
10
1
10
10
10
10
10
7
10
3
3
7
10
10
10
10
3
10
10
Held: represents the number of meetings held during the time the director held office or was a member of the
relevant committee.
Governors are eligible to attend Board meetings. Attendances (including meetings eligible to attend) by each
governor during the year were as follows:Mr Joseph Brender AO (1 of 3) in his capacity as a governor (resigned 9/7/13)
Mr Paul Keen (7 of 10)
Mrs Anne-Louise Oystrach OAM (8 of 10)
Mr Shya Redelman (deceased) (0 of 10)
Mr Adrian Skurnik (2 of 10)
9
ABN: 52 856 191 254
DIRECTORS’ REPORT
Auditors' Independence Declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations
Act 2001 is set out on the following page.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
On behalf of the directors
__________________________________
__________________________________
Danny Taibel
Acting President
Stanley Kalinko
Treasurer
Dated this 23rd day of April, 2014
Sydney
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ABN: 52 856 191 254
AUDITORS’ INDEPENDENCE DECLARATION
UNDER S ECTION 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF
THE CENTRAL S YNAGOGUE
I declare that, to the best of my knowledge and belief, during the year ended 31 December 2013
there have been:
(i)
no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
(ii) no contraventions of any applicable code of professional conduct in relation to the
audit.
Name of Firm:
Logicca Assurance Pty Limited
Name of Director:
Peter Hersh
Address:
Level 6, 151 Macquarie Street, Sydney NSW 2000
Dated this
23rd day of April, 2014
11
ABN: 52 856 191 254
STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2013
Note
2013
$
Revenue
3
3,158,813
3,166,456
Other income
4
16,763
33,150
–
35,000
Grant from Council for Jewish Communal Security
2012
$
Expenses
Advertising expenses
Employee benefits expense
Depreciation and amortisation expense
Other expenses
Deficit before income tax expense
Income tax expense
(9,366)
(8,454)
(1,675,694)
(1,501,757)
(578,274)
(566,264)
(1,511,280)
(1,618,507)
(599,038)
(460,376)
–
Deficit after income tax expense
for the year attributable to the members
of The Central Synagogue
16
Other comprehensive income for the year, net of tax
Total comprehensive income (loss) for the year
attributable to the members of
The Central Synagogue
(599,038)
–
(599,038)
–
(460,376)
–
(460,376)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
12
ABN: 52 856 191 254
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2013
2013
$
2012
$
5
6
106,495
93,823
200,318
117,456
117,479
234,935
7
8
20,094,535
10
20,094,545
20,294,863
20,530,628
10
20,530,638
20,765,573
9
10
11
12
62,901
166,566
192,132
10,395
431,994
63,364
132,777
161,630
10,882
368,653
13
14
4,160,334
2,285
4,162,619
4,594,613
15,700,250
4,097,048
584
4,097,632
4,466,285
16,299,288
15
16
2,580,942
13,119,308
15,700,250
2,580,942
13,718,346
16,299,288
Note
ASSETS
CURRENT ASSETS
Trade and other receivables
Other
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Other
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
Borrowings
Employee benefits
Other
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Borrowings
Employee benefits
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Reserves
Retained surpluses
TOTAL EQUITY
The above statement of financial position should be read in conjunction with the accompanying notes
13
ABN: 52 856 191 254
STATEMENT OF CHANGES IN EQUITY
Balance at 1 January 2012
Reserves
Retained
profits
Total
equity
$
$
$
2,580,942
14,178,722
Deficit after income tax expense for the year
–
Other comprehensive income for the year,
net of tax
–
–
Balance at 31 December 2012
Balance at 1 January 2013
(460,376)
–
(460,376)
––
(460,376)
2,580,942
13,718,346
Reserves
Retained
profits
Total
equity
$
$
$
2,580,942
13,718,346
–
Other comprehensive income for the year,
net of tax
–
–
Balance at 31 December 2013
(460,376)
16,759,664
2,580,942
(599,038)
16,299,288
16,299,288
(599,038)
–
(599,038)
13,119,308
–
(599,038)
15,700,250
The above statement of changes in equity should be read in conjunction with the accompanying notes
14
ABN: 52 856 191 254
STATEMENT OF CASH FLOWS
2013
$
2012
$
3,118,031
(2,901,774)
3,111,743
(2,846,987)
216,257
68,506
(239,657)
–
264,756
92,909
(269,557)
35,000
45,106
123,108
(142,181)
(24,247)
–
19,170
(117,956)
–
22,552
–
(147,258)
(95,404)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds/(repayment) of bank loans
Proceeds/(repayment) of leases
75,000
–
(119,653)
49,996
Net cash from/(used in) financing activities
75,000
(69,657)
(27,152)
(41,953)
(3,790)
38,163
(30,942)
(3,790)
Note
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from congregants and others
Payments to suppliers and employees
Other revenue
Finance costs
Net cash from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment
Repayments of secured loans
Proceeds from sale of property, plant and equipment
Proceeds of unsecured loans
7
Net cash used in investing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents
at the beginning of the financial year
Cash and cash equivalents at end of financial year
10
The above statement of changes in equity should be read in conjunction with the accompanying notes
15
ABN: 52 856 191 254
NOTES TO THE FINANCIAL STATEMENTS
Note 1
Significant Accounting Policies
The principal accounting policies adopted in the preparation of the financial statements are set out
below. These policies have been consistently applied to all the years presented, unless otherwise
stated.
New, revised or amending Accounting Standards and Interpretations adopted
The company has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the
current reporting period.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory
have not been early adopted.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian
Accounting Standards - Reduced Disclosure Requirements and Interpretations issued by the
Australian Accounting Standards Board ('AASB'), and the Corporations Act 2001, as appropriate for
not-for-profit oriented entitles.
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where
applicable, the revaluation of available-for-sale financial assets, financial assets and liabilities at fair
value through profit or loss, investment properties, certain classes of property, plant and equipment
and derivative financial instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates.
It also requires management to exercise its judgement in the process of applying the company's
accounting policies. The areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial statements, are disclosed in note 2.
Revenue recognition
Revenue is recognised when it is probable that the economic benefit will flow to the company and
the revenue can be reliably measured. Revenue is measured at the fair value of the consideration
received or receivable.
Money pledged for seat rentals and donations are brought to account on a cash basis as their
collection is not enforceable.
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ABN: 52 856 191 254
Note 1
Significant Accounting Policies (continued)
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method
of calculating the amortised cost of a financial asset and allocating the interest income over the
relevant period using the effective interest rate, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial asset to the net carrying amount of the
financial asset.
Rent
Rent revenue from investment properties is recognised on a straight-line basis over the lease term.
Lease incentives granted are recognised as part of the rental revenue. Contingent rentals are
recognised as income in the period when earned.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Income tax
As the company is a charitable institution in terms of subsection 50-5 of the Income Tax Assessment
Act 1997, as amended, it is exempt from paying income tax.
Trade and other receivables
Other receivables are recognised at amortised cost, less any provision for impairment.
Property, plant and equipment
Property, plant and equipment are brought to account at cost or at independent or directors’ valuation,
less, where applicable, any accumulated depreciation or amortisation. The directors review the
carrying amounts of property, plant and equipment annually to ensure it is not in excess of the
recoverable amounts of these assets. The recoverable amount is assessed on the basis of the expected
net cash flows, which will be received from these assets employment and subsequent disposal. The
expected net cash flows have not been discounted to their present values in determining recoverable
amounts.
Increases in the carrying amounts arising on revaluation of land and buildings are credited to the
revaluation surplus reserve in equity. Any revaluation decrements are initially taken to the revaluation
surplus reserve to the extent of any previous revaluation surplus of the same asset. Thereafter
thedecrements are taken to profit or loss.
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ABN: 52 856 191 254
Note 1
Property, plant and equipment (continued)
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property,
plant and equipment (excluding land) over their expected useful lives as follows:
Buildings
Leasehold improvements
Plant and equipment
2.50%
22.50%
10-20%
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate,
at each reporting date.
Leasehold improvements and plant and equipment under lease are depreciated over the unexpired
period of the lease or the estimated useful life of the assets, whichever is shorter.
An item of property, plant and equipment is derecognised upon disposal or when there is no future
economic benefit to the company. Gains and losses between the carrying amount and the disposal
proceeds are taken to profit or loss. Any revaluation surplus reserve relating to the item disposed of
is transferred directly to retained profits.
Trade and other payables
These amounts represent liabilities for goods and services provided to the company prior to the end
of the financial year and which are unpaid. Due to their short-term nature they are measured at
amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30
days of recognition.
Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of
transaction costs. They are subsequently measured at amortised cost using the effective interest
method.
Where there is an unconditional right to defer settlement of the liability for at least 12 months after
the reporting date, the loans or borrowings are classified as non-current.
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance
costs are expensed in the period in which they are incurred, including:
● interest on the bank overdraft
● interest on short-term and long-term borrowings
18
ABN: 52 856 191 254
Note 1
Employee benefits
Wages and salaries and annual leave
Liabilities for wages and salaries, including non-monetary benefits, and annual leave expected to be
settled within 12 months of the reporting date are recognised in current liabilities in respect of
employees' services up to the reporting date and are measured at the amounts expected to be paid
when the liabilities are settled.
Long service leave
The liability for long service leave is recognised in current and non-current liabilities, depending on
the unconditional right to defer settlement of the liability for at least 12 months after the reporting
date. The liability is measured as the present value of expected future payments to be made in respect
of services provided by employees up to the reporting date using the projected unit credit method.
Consideration is given to expected future wage and salary levels, experience of employee departures
and periods of service. Expected future payments are discounted using market yields at the reporting
date on national government bonds with terms to maturity and currency that match, as closely as
possible, the estimated future cash outflows.
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or
disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between market participants at the measurement date;
and assumes that the transaction will take place either: in the principle market; or in the absence of
a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the
asset or liability, assuming they act in their economic best interest. For non-financial assets, the fair
value measurement is based on its highest and best use. Valuation techniques that are appropriate in
the circumstances and for which sufficient data are available to measure fair value, are used,
maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST
incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of
the acquisition of the asset or as part of the expense.
19
ABN: 52 856 191 254
Note 1
Goods and Services Tax ('GST') and other similar taxes (continued)
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net
amount of GST recoverable from, or payable to, the tax authority is included in other receivables or
other payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing
or financing activities which are recoverable from, or payable to the tax authority, are presented as
operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or
payable to, the tax authority.
Note 2
Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually
evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue
and expenses. Management bases its judgements, estimates and assumptions on historical experience
and on other various factors, including expectations of future events, management believes to be
reasonable under the circumstances. The resulting accounting judgements and estimates will seldom
equal the related actual results. The judgements, estimates and assumptions that have a significant
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year are discussed below.
Provision for impairment of receivables
The provision for impairment of receivables assessment requires a degree of estimation and
judgement. The level of provision is assessed by taking into account the recent sales experience, the
ageing of receivables, historical collection rates and specific knowledge of the individual debtors’
financial position.
Estimation of useful lives of assets
The company determines the estimated useful lives and related depreciation and amortisation charges
for its property, plant and equipment and finite life intangible assets. The useful lives could change
significantly as a result of technical innovations or some other event. The depreciation and
amortisation charge will increase where the useful lives are less than previously estimated lives, or
technically obsolete or non-strategic assets that have been abandoned or sold will be written off or
written down.
20
ABN: 52 856 191 254
Note 2
Critical accounting judgements, estimates and assumptions (continued)
Long service leave provision
As discussed in note 1, the liability for long service leave is recognised and measured at the present
value of the estimated future cash flows to be made in respect of all employees at the reporting date.
In determining the present value of the liability, estimates of attrition rates and pay increases through
promotion and inflation have been taken into account.
Note 3
Revenue
Marriage and Bar/Bat Mitzvah fees
Donations and Bequests
Hire of halls and kitchen
Seat rental, offering & seat sales
Other revenue
Rent, 2 Kenilworth Street, Bondi Junction
Revenue
21
2013
$
2012
$
77,284
396,436
43,075
2,590,275
42,599
568,033
30,943
2,466,258
3,107,070
3,107,833
51,743
58,623
3,158,813
3,166,456
ABN: 52 856 191 254
Note 4
Other income
2013
$
2012
$
Net gain on disposal of property, plant and equipment
Sundry income
–
16,763
3,698
29,452
Other income
16,763
33,150
Note 5
Current assets - trade and other receivables
2013
$
Other receivables
Note 6
106,495
2012
$
117,456
Current assets – other
Prepayments
22
2013
$
2012
$
98,823
117,479
ABN: 52 856 191 254
Note 7
Non-current assets – property, plant and equipment
2013
$
2012
$
3,620,882
2,621,733
6,242,615
3,620,882
2,621,733
6,242,615
Buildings – at 1995 independent valuation (deemed cost)
Buildings – at cost
Less: Accumulated depreciation
241,535
19,038,832
(6,227,700)
13,052,667
241,535
19,017,694
(5,730,219)
13,529,010
Plant and equipment – at cost
1,862,252
(1,128,123)
734,129
1,741,209
(1,066,237)
674,972
Motor vehicles – at cost
247,425
(182,301)
65,124
247,425
(163,394)
84,031
Land – at 1995 independent valuation (deemed cost)
Land – at cost
20,094,535
20,530,628
Reconciliations
Reconciliations of the written down values at the beginning and end of the current financial year are
set out below:
Balance at 31 Dec. 2012
Additions
Depreciation expense
Balance at 31 Dec. 2013
Freehold
Land
$
6,242,615
Buildings
$
13,529,010
Plant and
Equipment
$
674,972
–
21,138
121,043
–
(497,481)
(61,886)
(18,907)
734,129
65,124
6,242,615
13,052,667
23
Motor
Vehicles
$
84,031
–
Total
$
20,530,628
142,181
(578,274)
20,094,535
ABN: 52 856 191 254
Note 7
Non-current assets – property, plant and equipment (continued)
Valuations of land and buildings
The basis of the valuation of land and buildings is fair value, being the amounts for which the assets
could be exchanged between willing parties in an arm’s length transaction, based on current prices in
an active market for similar properties in the same location and condition. The land and buildings
were last revalued on 31 December 1995 by an independent valuer. The directors do not believe that
there has been a material movement in fair value since the revaluation date.
Note 8
Non-current assets – other
2013
$
Security deposits
Note 9
10
10
Current liabilities – trade and other payables
2013
$
Trade payables
Note 10
2012
$
62,901
2012
$
63,364
Current liabilities – borrowings
Bank overdraft
Mortgage Loans
Unsecured Loans
2013
$
2012
$
30,942
7,331
128,293
3,790
19,864
109,123
166,566
132,777
Refer to note 13 for further information on assets pledged as security and financing arrangements.
24
ABN: 52 856 191 254
Note 10
Current liabilities - borrowings (continued)
Financing arrangements – current
Unrestricted access was available at the reporting date to the following lines of credit:
2013
$
2012
$
100,000
100,000
Used at the reporting date
Bank overdraft
45,449
53,275
Unused at the reporting date
Bank overdraft
54,551
46,725
Total facilities
Bank overdraft
Note 11
Current liabilities - employee benefits
2013
$
Employee benefits
Note 12
192,132
161,630
Current liabilities - other
2013
$
Accrued expenses
Note 13
2012
$
10,395
2012
$
10,882
Non-current liabilities – borrowings
Bank loans
Mortgage loans
25
2013
$
2012
$
4,125,000
35,334
4,050,000
47,048
4,160,334
4,097,048
ABN: 52 856 191 254
Note 13
Non-current liabilities – borrowings (continued)
2013
$
2012
$
Total secured liabilities
The total secured liabilities (current and non-current) are as follows:
Bank overdraft
Bank Loans
Mortgage loans
30,942
4,125,000
42,665
3,790
4,050,000
66,912
4,198,607
4,120,702
Assets pledged as security
The bank debt is secured by a first registered mortgage over certain freehold properties owned by
the Synagogue: 2013 $6,143,368 (2012 $6,113,420). The mortgage loans are secured by the motor
vehicles for which the loans were taken out.
Financing arrangements – non-current
Unrestricted access was available at the reporting date to the following lines of credit:
2013
$
2012
$
Total facilities
Bank loans
4,357,500
4,357,500
Used at the reporting date
Bank loans
4,125,000
4,050,000
232,500
307,500
Unused at the reporting date
Bank loans
Note 14
Non-current liabilities - employee benefits
2013
$
Employee benefits
2,285
26
2012
$
584
ABN: 52 856 191 254
Note 15
Equity - reserves
2013
$
2012
$
2,580,942
2,580,942
2013
$
2012
$
Retained surpluses at the beginning of the financial year
13,718,346
(599,038)
14,178,722
(460,376)
Retained surpluses at the end of the financial year
13,119,308
13,718,346
Revaluation surplus reserve
Note 16
Note 17
Equity - retained surpluses
Financial instruments
Liquidity risk
Financing arrangements
Unused borrowing facilities at the reporting date:
2013
$
Bank overdraft
Bank loans
Note 18
54,551
232,500
287,051
2012
$
46,725
307,500
354,225
Contingent assets
Income is recognised from seat rentals and donations on a cash basis. On 31 December 2013 the
balance owed to the Synagogue was: $137,613 (2012 $192,756).
27
ABN: 52 856 191 254
Note 19 Commitments
On 24 February 2011 the Synagogue received a letter from Mrs M Phillips giving the Synagogue the
right to purchase the property known as 4 Kenilworth Street, Bondi Junction for its purchase price
on 14 January 2011, for a period of 5 years. The letter states that should the property be sold by the
Synagogue within 3 years of purchase, any capital gain will revert to Mrs Phillips. After that time the
Synagogue can deal with gains as it sees fit.
Note 20
Related party transactions
Transactions with related parties
The following transactions occurred with related parties:
2013
$
Payment for goods and services:
Management fees
1,648
2012
$
2,271
From time to time Directors of the entity may purchase goods from the company or participate in the
Synagogue’s activities. These participations are on the same terms and conditions as those entered
into by any other member of the Synagogue.
During the year transactions with related parties included the management of the rental property
at 2 Kenilworth Street by Ray White Double Bay which is owned by Trevor Leach. Management fees
amounting to $1,648 were paid during the period he was a director.
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous
reporting date.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
Note 21
Events after the reporting period
No matter or circumstance has arisen since 31 December 2013 that has significantly affected, or may
significantly affect the company's operations, the results of those operations, or the company's state
of affairs in future financial years.
28
ABN: 52 856 191 254
DIRECTORS’ DECLARATION
In the directors' opinion:
•
the attached financial statements and notes thereto comply with the Corporations Act 2001, the
Australian Accounting Standards - Reduced Disclosure Requirements, the Corporations
Regulations 2001 and other mandatory professional reporting requirements;
•
the attached financial statements and notes thereto give a true and fair view of the company's
financial position as at 31 December 2013 and of its performance for the financial year ended
on that date; and
•
there are reasonable grounds to believe that the company will be able to pay its debts as and
when they become due and payable.
Signed in accordance with a resolution of directors made pursuant to section 295(5) of the
Corporations Act 2001.
On behalf of the directors
__________________________________
__________________________________
Danny Taibel
Acting President
Stanley Kalinko
Treasurer
Dated this 23rd day of April, 2014
Sydney
29
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF THE CENTRAL SYNAGOGUE
ABN: 52 856 191 254
Report on the Financial Report
We have audited the accompanying financial report of The Central Synagogue, which comprises the
statement of financial position as at 31 December 2013, and the statement of comprehensive income,
statement of changes in equity and statement of cash flows for the year ended on that date, a summary
of significant accounting policies and other explanatory notes and the directors’ declaration of the
company at the year’s end or from time to time during the financial year.
Directors' Responsibility for the Financial Report
The directors of the company are responsible for the preparation and fair presentation of the financial
report in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and
the Corporations Act 2001. This responsibility includes establishing and maintaining internal control
relevant to the preparation and fair presentation of the financial report that is free from material
misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies;
and making accounting estimates that are reasonable in the circumstances.
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. These Auditing Standards require that we
comply with relevant ethical requirements relating to audit engagements and plan and perform the
audit to obtain reasonable assurance 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 entity’s
preparation and fair presentation of the financial report 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 Corporations
Act 2001.
30
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF THE CENTRAL SYNAGOGUE
ABN: 52 856 191 254
Auditors’ Opinion
In our opinion:
the financial report of The Central Synagogue is in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the company's financial position as at 31 December 2013
and of their performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards – Reduced Disclosure Requirements and
the Corporations Regulations 2001.
Name of Firm:
Logicca Assurance Pty Limited
Name of Director:
Peter Hersh
Address:
Level 6, 151 Macquarie Street, Sydney NSW 2000
Dated this
24th day of April, 2014
31
ABN: 52 856 191 254
PROFIT AND LOSS STATEMENT
INCOME
Seat sales, seat rentals, offerings and levies
Marriage and Bar/Bat Mitzvah fees
Hire of halls and kitchen
Sundry income
Rental income, 2 Kenilworth Street, Bondi Junction
Donations and Bequests
EXPENSES
Advertising, Publicity & Journal
Auditor's Remuneration
Cleaning & Gardening
Depreciation
Electricity & Gas
Functions (net)
General Expenses
Hineni
Hire of Plant & Equipment
Insurance
Interest and Bank charges
Postage, Printing & Stationery
Rates
Repairs & Maintenance
Religious expenses
Salaries & Wages
Security Costs
Security Levy NSW Jewish Board of Deputies
Telephone
Travelling Expenses
Profit/(Loss) before income tax
2013
$
2012
$
2,590,275
77,284
43,075
16,763
51,743
–
396,436
3,175,576
2,466,258
42,600
30,942
29,452
58,623
35,000
568,033
3,230,908
9,366
18,116
117,364
578,274
122,229
255,068
50,953
6,987
7,908
156,462
236,943
57,982
46,035
143,242
13,495
1,675,694
181,478
46,000
36,628
14,390
8,454
18,693
117,447
566,264
118,520
250,235
53,849
81,200
7,507
163,969
269,557
68,207
37,104
139,075
11,010
1,501,757
188,812
42,000
35,569
12,055
3,774,614
3,691,284
(599,038)
32
(460,376)
THE
CENTRAL
SYNAGOGUE
A Way of Life
15 Bon Accord Avenue, Bondi Junction, NSW 2022 AUSTRALIA
Phone: +61 2 9355 4000 • Fax: +61 2 9355 4099
[email protected] • www.centralsynagogue.com.au

notes to the financial statements

Transcription

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