D'O'V Disability Opportunities Victoria

1
D.O.V(Disability Opportunities Victoria)

• FINANCIAL UPDATE

2
POINTS FOR DISCUSSION

• Cash Flow Position and Projections.
• Progress on 2009 Budgets.
• Internal Controls and Procedures.
• Internal Audit Process.
• ATO Debt.

3
CASH FLOW POSITION AND PROJECTIONS

• We have prepared cash flow projections to the end
  of the current calendar year, and have been
  updating these on a monthly basis.
• These numbers predict that DOV will have positive
  operating cash flow over this period (excluding
  any extraordinary income).
• These cash flow projections also allow for DOV to
  continue meeting our current monthly GST and PAYG
  withholding payments, which we have managed to do
  since the February 2008 BAS.
• These projections do not make allowance for any
  further employee redundancy payments.

4
PROGRESS ON 2009 BUDGETS

• An enormous amount of work has been done by our
  interim CEO (Jeff Gibbons), interim Financial
  Officer (Richard Johnson) and Program Manager
  (Ian Chapman) to prepare the budgets for the 2009
  financial year.
• These budgets have been prepared on a program by
  program basis and the performance of these
  programs will be tracked against budget on a
  monthly basis.
• These Budgets have been presented to the
  Committee of Management in a draft form at our
  June 2008 meeting, where further changes were
  suggested.
• The final budgets will be presented to the
  Committee of Management for approval at the July
  2008 COM meeting and will predict a net surplus
  in the vicinity of 5 of revenue or approximately
  190,000.

5
INTERNAL CONTROLS AND PROCEDURES

• There have been many changes made to the way that
  the finances of DOV are managed, and these
  revolve around two key areas
• Improved Reporting Standards.
• Improved Internal Control Procedures.
• IMPROVED REPORTING STANDARDS
• DOV Financial Statements are now prepared on a
  full accrual basis, which means that all debts
  and receivables are reported to the COM on a
  monthly basis.
• Annual leave and Long Service Leave totals have
  been recalculated and the revised amount payable
  is now accurately reported in the financial
  statements.
• Cost Centre Accounting has now been implemented
  and all receipts and payments (including wages)
  are now recorded against a specific program.
• This allows for greater monitoring and analysis
  of the organisation to take place by all levels
  of DOV management.
• DOV now has the ability to download bank
  statements on a daily basis which has allowed us
  to prepare daily bank reconciliations.

6
INTERNAL CONTROLS AND PROCEDURES

• 2. IMPROVED INTERNAL CONTROL PROCEDURES
• Petty Cash floats have been reduced dramatically
  and all payments are to approved by the CEO or
  Program Manager on formal application. Payment is
  then made on presentation of a valid receipt.
• Timesheets all employees are now required to
  complete a timesheet which is then approved by
  the Program Manager before entered in MYOB and
  used to calculate wages and all leave accruals.
• All off-site (non 27 Leon Avenue) vehicles are
  now required to purchase their fuel using DOV
  fuel cards. All vehicles based at 27 Leon Ave are
  required to purchase fuel on a specific garage
  account.
• There may be further improvements suggested as a
  result of the internal audit currently being
  undertaken by KPMG.

7
INTERNAL AUDIT PROCESS

• KPMG (major international accounting firm) have
  been engaged to conduct a special internal audit
  on DOV. They commenced working on this task
  Monday and will report back to the COM on a
  weekly basis with the final report being
  presented no later than the 28th of July 2008.
• The audit scope includes, but is not limited to
  the following areas
• Review of internal controls across all of DOV.
• Review of Petty Cash expenditure.
• Review of Special Purpose grants received and
  monies held in the special purpose account.
• Review of Jasmin Waters Ltd arrangements.
• Review of DOV Work Cover liabilities and
  premiums.
• Review of payroll system, including leave records
  and entitlements.

8
ATO DEBT

• DOV is currently up to date with all ATO
  lodgements and has paid all Business Activity
  Statements in full from February 2008 onwards.
• The ATO continues to accrue interest on the
  "pre-Feb 08" debt of approximately 1,517,715
  million.
• We received a formal response from the Minister
  for Finance, Lindsay Tanner as to our application
  for a waiver of the ATO debt on the 24th of June,
  advising that he would not be waiving the debt.
• Alan Jennison (DOV President), Barry Smith (COM
  member) and David Cornell (Treasurer) will be
  meeting with the ATO tomorrow to discuss this
  debt further.