AUSTRALIAN COUNCIL OF UNIVERSITY ART AND DESIGN
SCHOOLS INCORPORATED
ABN 68 551 409 321
CONTENTS
2016 FINANCIAL REPORT
Statement by Executive
Independent Audit Report
 Statement of Comprehensive Income 
 Statement of Cash Flows 
Statement of Financial Position 
Statement of Changes in Equity 
Notes to the Financial Report 

Australian Council of University Art and Design Schools Incorporated
ABN 68 551 409 321
Statement by Executive
The names of the members of the Executive during the year ended 30 June 2016 or at the date of this report are:
Professor Marie Sierra (appointed 22 September 2011)			 Chair
Associate Professor Denise Ferris (appointed 26 September 2013)		 Deputy Chair 
Dr. Shane Hulbert (appointed 26 September 2013)			 Treasurer
Professor Kit Wise (appointed 2 October 2014)                                             Secretary
Professor Simon Biggs (appointed 24 September 2015)	 
Professor Jennifer Jones-O’Neill (appointed 26 September 2013)
Professor Scott Thompson-Whiteside (appointed 2 October 2014)
Professor David Williams (appointed 29 September 2006)

The principal activity of the Association during the year ended 30 June 2016 was to play a role in shaping quality education for artists by addressing issues affecting education and training. There was no significant change in the nature of these activities during the year.
The operating result for the Association for the year was a deficit of $10,550 (2015: $4,278 Deficit).
In the opinion of the Executive, the accompanying financial report presents a true and fair view of the financial position of Australian Council of University Art and Design Schools Incorporated as at 30 June 2016 and its performance for the year ended on that date in accordance with Australian Accounting Standards, mandatory professional reporting standards and other authoritative pronouncements of the Australian Accounting Standards Board.
In the opinion of the Executive, at the date of this statement, there are reasonable grounds to believe that Australian Council of University Art and Design Schools Incorporated will be able to pay its debts as and when they fall due.
Signed this……    day of ……………..…….. 2016 in accordance with a resolution of the Executive.

AUSTRALIAN COUNCIL OF UNIVERSITY 
ART AND DESIGN SCHOOLS INCORPORATED
ABN 68 551 409 321
INDEPENDENT AUDIT REPORT TO THE MEMBERS OF 
AUSTRALIAN COUNCIL OF UNIVERSITY ART AND DESIGN SCHOOLS INCORPORATED
Report on the Financial Report
We have audited the accompanying financial report of Australian Council of University Art and Design Schools Incorporated which comprises the statement of financial position as at 30 June 2016, 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 statement by members of the executive.
Executive’s Responsibility for the Financial Report
The executive of the association are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) and the Associations Incorporation Act 1991 of the Australian Capital Territory.  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.
Audit 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 committee 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 Professional ethical pronouncements.
Auditor’s Opinion
In our opinion, the financial report of Australian Council of University Art and Design Schools Incorporated is in accordance with the Associations Act 1991 of the Australian Capital Territory including:
(i)	giving a true and fair view of the Association’s financial position as at 30 June 2016 and of its performance for the year ended on that date; and
(ii)	complying with Australian Accounting Standards (including Australian Accounting Interpretations,) and the Associations Incorporation Act 1991 of the Australian Capital Territory.
McLean Delmo Bentleys Audit Pty Ltd		    R Hutton  					
						    Partner

Dated at Hawthorn this          day of                     2016.

Australian Council of University Art and Design Schools Incorporated
ABN 68 551 409 321
Statement of Comprehensive Income for the year ended 30 June 2016

	2016
      $	2015
      $	
Revenue			
Operating activities:			
Membership subscriptions	23,288	27,860	
Non-operating activities:			
Interest	-	-	
Other	554	1	
	         23,842	27,861	
Expenses			
Administration expenses	13,774	13,495	
Audit fees	3,100	3,000	
Website services	291	5,304	
Conference and travel expenses	           4,207
	913	
Craft & Design Enquiry Contribution 	-	4,000	
Grants	8,000	-	
Sector Support	4,100	1,900	
Other expenses	920	3,527	
	34,392	32,139	
Other Comprehensive Income	-	-	
Total Comprehensive Income/(Loss)	(10,550)	(4,278)	

Statement of Cash Flows for the year ended 30 June 2016

Operating activities
Receipts from members and others
Interest received
Payments to suppliers and employees
Net cash generated (used)
Net movement in cash held
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year	Note
6	  2016
$
19,345
-
(37,069)	  2015
$
51,612
-
(56,763)		
		(17,724)            

	(5,151)            

		
		            (17,724)                     92,178    	            (5,151)                     97,329    		
		74,454	92,178		

The accompanying notes form part of these financial statements.

The accompanying notes form part of these financial statements.

Australian Council of University Art and Design Schools Incorporated
ABN 68 551 409 321
Statement of Financial Position as at 30 June 2016

	Note	2016
 $	2015
 $		
Current Assets					
Cash and cash equivalents		74,454	92,178		
Receivables	2	6,882	-		
Total Current Assets		81,336	92,178		
Total Assets		81,336	92,178		
Current Liabilities
Payables	3	895	1,187		
Total Current Liabilities		895	1,187		
		895	1,187		
Net Assets		80,441	90,991		
Equity					
Retained surplus		       80,441	90,991		
Total Equity		80,441	90,991		

Statement of Changes in Equity for the year ended 30 June 2016

	2016
  $

                                     $

	2015
  $

                                     $

Balance at beginning of year	90,991	95,269		
Net Surplus/(Deficit) from operating activities	(10,550)	(4,278)		
Balance at end of year	80,441	90,991		

Australian Council of University Art and Design Schools Incorporated
ABN 68 551 409 321
Notes to the financial statements for the year ended 30 June 2016
Note 1: Statement of significant accounting policies
This general purpose financial report has been prepared in accordance with Australian Accounting Standards, (including Australian Accounting Interpretations) and the requirements of the Associations Incorporation Act 1991 of the Australian Capital Territory. The financial report has been prepared on an accruals basis and is based on historical costs and does not take into account changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair values of the consideration given in exchange for assets.
The financial report covers Australian Council of University Art and Design Schools Incorporated ("the Association") as an individual entity. The Association is an association incorporated in the Australian Capital Territory under the Associations Incorporation Act 1991.
The following is a summary of the significant accounting policies adopted by the Association in the preparation of this financial report. The accounting policies have been consistently applied, unless otherwise stated.
Basis of Preparation
The Association has prepared financial statements in accordance with the Australian equivalents to International Financial Reporting Standards (AIFRS). For the purposes of the application of AIFRS measurement and disclosure requirements the Association is classified as a not-for-profit entity.
The accounting policies set out below have been consistently applied to all years presented.
Reporting Basis and Conventions
The financial report has been prepared on an accruals basis and is based on historical costs.
a) Income tax
The Association is exempt from income tax under section 50-5 of the Income Tax Assessment Act (1997).
b)	Cash and cash equivalents
Cash and cash equivalents include cash on hand and deposits held at call with banks or financial institutions.

c)	Cash flows
For the purposes of the cash flow statement, cash includes cash on hand and in at call deposits with banks or financial institutions.

Australian Council of University Art and Design Schools Incorporated
ABN 68 551 409 321
Notes to the financial statements for the year ended 30 June 2016
d)	Revenue recognition
Membership subscriptions are brought to account as revenue on an accruals basis. Interest and other income is brought to account when earned.

e)	Comparative figures
Where necessary, comparative figures have been adjusted to conform to changes in presentation in this financial report.
f)	Impairment
At each reporting date, the Association reviews the carrying values 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 value. As a not-for-profit entity, value in use for the Association according to Accounting Standard AASB 136 Impairment of Assets, is depreciated replacement cost. Any excess of the asset's carrying value over its recoverable amount is expensed to the income statement.
g)	Critical accounting estimates and judgements
The committee evaluates estimates and judgements incorporated into the financial report 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 Association. 

h)	Key estimates - Impairment
The Association assesses impairment at each reporting date by evaluating conditions specific to the Association that may lead to impairment of assets. Should an impairment indicator exist, the determination of the recoverable amount of the asset may require incorporation of a number of key estimates. No impairment indicators were present at 30 June 2016.

i)	Financial instruments Recognition
Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.
        Receivables 
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortized cost using the effective interest rate method.
Financial liabilities 
Non-derivative financial liabilities are recognized at amortized cost, comprising original debt less principal payments and amortization.

Australian Council of University Art and Design Schools Incorporated
ABN 68 551 409 321
Notes to the financial statements for the year ended 30 June 2016

	2016
$	2015
$		
Note 2: Receivables				
Sundry debtors	           6,882              	           -         -		
Note 3: Payables				
CURRENT				
Unsecured liabilities:				
Sundry Creditors 	-	-		
Net GST payable
	895
	1,187		
	895	1,187		

Note 4: Key management personnel
(a) Details of Key Management Personnel
Names and positions held of key management personnel in office during the financial year are:
(i)	Executive members of Australian Council of University Art and Design Schools Incorporated:
Professor Marie Sierra (appointed 22 September 2011)			 
Associate Professor Denise Ferris (appointed 26 September 2013)		
Dr. Shane Hulbert (appointed 26 September 2013)			 
Professor Kit Wise (appointed 2 October 2014)                                             
Professor Simon Biggs (appointed 24 September 2015)	 
Professor Jennifer Jones-O’Neill (appointed 26 September 2013)
Professor Scott Thompson-Whiteside (appointed 2 October 2014)
Professor David Williams

No remuneration was received by any member of the Executive from the Association during the year ended 
30 June 2016 (2015 Nil) other than the reimbursement of out-of-pocket expenses incurred on behalf of the Association.

(ii)	Executive Officers:
      
      Louise Mayhew 

Executive Officers are engaged to provide executive and administrative services.
(b) Compensation of Key Management Personnel
	
Short Term Benefits
$	Post employment benefits
$	
Other long term benefits
     $	

Total
$	
2016
Total compensation	13,454	-	-	13,454	
2015
Total compensation	12,036	-	-	12,036	

Australian Council of University Art and Design Schools Incorporated
ABN 68 551 409 321
Notes to the financial statements for the year ended 30 June 2016

										     2016		   2015
										        $		      $
Note 5: Operating Activities and Association Details				
The Association plays a role in shaping quality education for artists by addressing issues affecting education and training. It carries out these activities throughout Australia.
The registered office and principal place of business of the Association is care of David Williams visiting fellow Humanities Research Centre Old Canberra House, Building No 73 ANU Canberra.
Note 6: Cash Flow Information				
Reconciliation of net cash relating to operating
activities to operating result				
Operating surplus/(deficit)	(10,550)	(4,278)		
Changes in assets and liabilities:				
Receivables	(6,882)	-		
Payables	(292)	(873)		
Net cash relating to operating activities	(17,724)	(5,151)		

Note 7: Financial Instruments
(a) Financial Risk Management
The Association's principal financial instruments comprise cash at bank, receivables and accounts payable. These financial instruments arise from the operations of the Association. The Association does not have any derivative instruments at 30 June 2016 (2015 Nil). The main risks arising from the Association's financial instruments are interest rate risk and credit risk. The policies for managing each of these risks are summarised below.
(a)	Net Fair Values
The net fair value of financial assets and liabilities approximates the values shown in the balance sheet and the notes thereto.
(b)	Credit risk
Credit risk is the risk that a financial asset will not be realised by the Association due to the default of the debtor. The financial assets subject to credit risk are as follows:

Financial Assets				
Cash at bank	74,454	92,178		
 Receivables	6,882	-		
Maximum exposure	81,336	92,178		

With the exception of the following concentration of credit risks, the Association does not have any material credit risk exposure to any single debtor or group of debtors:
- Cash with Cash with the National Australia Bank $74,454 (2015 - $92,178)
 (c) Interest Rate Risk
Interest rate risk is the risk that the value of a financial asset or liability will change due to interest rate fluctuations. The Association is not exposed to material interest rate risk.
Note 8: Subsequent events
The financial report of the Association was authorised for issue on the date of signing of the attached Statement by 
the Executive and up to this date there have not been any subsequent events that would impact the Financial report or the Association.