annual report 2016 - cornerstone college · annual report 2016 ... flinders, premiers reading...
TRANSCRIPT
Contents
College Overview for 2016 ......................................................................................................................... 1
Reporting on the Performance Measures ............................................................................................. 1
Our Mission Statement ...................................................................................................................... 1
Why Parents have chosen Cornerstone College ................................................................................ 1
The Statistics ...................................................................................................................................... 1
Value Adding ...................................................................................................................................... 1
Teacher Standards and Qualifications ................................................................................................... 3
Workforce Composition ......................................................................................................................... 4
Student Attendance ............................................................................................................................... 5
Senior Secondary Outcomes .................................................................................................................. 5
Student Outcomes in Standardised National Literacy & Numeracy Testing ......................................... 6
Post School Destinations ........................................................................................................................ 6
Parent, Student and Teacher Satisfaction with the College .................................................................. 7
College Income Broken Down by Funding Source ................................................................................. 9
Annual Report 2016 ................................................................................................................................. 10
Change and opportunity ...................................................................................................................... 11
Ministry and Care ............................................................................................................................. 11
Infrastructure ................................................................................................................................... 14
Learning ........................................................................................................................................... 14
Staff Professional Learning .............................................................................................................. 16
Support Services .............................................................................................................................. 18
Council Chair Report ................................................................................................................................ 18
Report of the Council Members .............................................................................................................. 19
Statement of Profit or Loss and Other Comprehensive Income .............................................................. 21
Statement of Financial Position ............................................................................................................... 22
Statement of Changes in Equity ............................................................................................................... 23
Statement of Cash Flows ......................................................................................................................... 24
Notes to the Financial Statements ........................................................................................................... 25
Statement by Council Members .............................................................................................................. 35
Independent Auditors’ Report ................................................................................................................. 37
1
College Overview for 2016
As a condition for receiving Australian Government funding we are required to ensure that a range of
accountability requirements are published and made available to the College community. What follows
is a collated version of this information under the headings specified by the Australian Government. The
information relates to the 2016 school year.
If you have any questions regarding this information please direct them to Carl Hollsten on
(08) 8398 6003.
Reporting on the Performance Measures
Our Mission Statement
We are a caring Christian community nurturing within students a growing relationship with Christ which
promotes individual excellence, learning and responsibility, for life.
Why Parents have chosen Cornerstone College
In a recent collation of enrolment data, the four key reasons for Year 7, 2016 families choosing
Cornerstone were:
1. Caring environment
2. Christian education
3. Academic reputation
4. Discipline.
It is noted that the top three out of four have traditionally been key determinants of parental choice of
Cornerstone College.
The Statistics
For 2016 we started the year with 917 students which consisted of 444 girls and 473 boys. Throughout
each year there is movement in student numbers, as families move out of and into the region and senior
students take up apprenticeships and enter the workforce. By our August census we had maintained our
enrolled students at 917. Of this complement we had one indigenous student and 29 students with
disabilities.
Value Adding
Cornerstone College exists to provide a quality education for our students and to add value to this
educational experience. Value is added by extending beyond the statutory curriculum requirements
required of schools through our ethos, culture and environment and by the co‐curricular and extra‐
curricular activities provided by the school.
What follows is a range of examples of activities undertaken during 2016 that added value to the
educational experience of students at Cornerstone College.
2
Student International Exchange Programs – Germany, China.
Christian Living Program ‐ Students have the opportunity to learn about the Christian faith and
its impact and relevance in life. The Year 9 Journey program is unique and encompasses Christian
Living.
Christian Service – Chapel Band, Passion Meditation, Ministry Team, Prayer Group, Spiritual
Support Group and Year 12 Christian Living Legacy Program including the interaction with
people in aged care facilities.
Community Service – Australian Lutheran World Service, 40 Hour Famine, World Vision, Habitat
for Humanity. This included two student service tours to Cambodia.
Leadership – Student Representative Council, Junior and Senior House Leadership and College
Leaders.
Extension Activities – Chess, Duke of Edinburgh.
Public Speaking – Lions Youth of the Year, Rostrum Voice of Youth, Debating, Year 8 Lutheran
School Public Speaking, Auction Idol.
Sports – Athletics, Swimming, Triathlon, Ekiden Relay and many interschool sports including
Tennis and Gymkhana.
Knockout Sports – Basketball, Australian Rules Football, Soccer, Volleyball, Netball, Cricket,
Touch Football, Hockey and Softball.
Sustainability – Recycling, Waterwatch, Student Environment Council, River Murray Youth
Council / Health of River Forum, Working Towards Sustainability Group.
Curriculum Related – Maths Quiz Night, Chemical Analysis Competition, Karneval, Music, Visiting
Speakers, Arts Alive, Art Exhibition (SALA), Mock Interviews, Meet the Writers, Operation
Flinders, Premiers Reading Challenge, Book Clubs, Photography Group.
Music Program – Crescendo, Junior/Intermediate Vocal Ensemble, Music Camp, Hot House
Band, Little Big Band, Music Cabaret, Concert Band, Senior Choir, Worship Bands.
Special Curriculum Initiatives – Special programs for those with special learning needs. The
‘STRETCH program’ for Gifted and Talented students.
Health and Wellbeing – Drug Education, Healthy Eating Programme, Resiliency Program, Car
Safety Awareness, Sexuality Education, Healthy Minds (Year 8), Odyssey for Boys and Inspire for
Girls (Year 10).
Camp/Experiences – Year 8 Camp, Year 9 Journey Camp, Year 10 Experience, Year 11 Ski Trip,
Year 12 Retreat, Outdoor Education and Physical Education Camps.
Community Outreach ‐ Australia’s Biggest Morning Tea, ALWS Fundraising, Tree Planting.
School and Parent Community Links ‐ Parent Information Evenings, Interviews, Sub‐school
Transition Occasions, Guest Speakers for Parents, Newsletters, Information Booklets.
Special Occasions ‐ Grandparents and Special Friends Day, Middle School Showcase, College
Food and Fun Fest, Old Scholar Reunions, Year 12 Formal.
3
Teacher Standards and Qualifications
All of the teachers at Cornerstone satisfy the requirements of the Teachers Registration Board for
registration.
A list of qualifications and the number of these held by teaching staff in the College are listed in the table
below. In addition to these formal qualifications, all staff undergo training in Responding to Abuse and
Neglect, First Aid and Valuing Safe Communities. They hold all the necessary qualifications for teacher
registration in South Australia which includes a criminal history check.
Qualification Number Held Certificate 5 Certificate III 1 Certificate IV 8 Graduate Certificate 7 Diploma 20 Associate Diploma 1 Graduate Diploma 28 Bachelor of Applied Science 4 Bachelor of Arts 18 Bachelor in Business (Recreation Management) 1 Bachelor of Design 1 Bachelor of Education 55 Bachelor of Health Science 1 Bachelor of Mathematical Science 1 Bachelor of Music 3 Bachelor of Performing Arts 2 Bachelor of Science 16 Bachelor of Special Education 2 Bachelor of Teaching 2 Bachelor of Visual Communications 1 Honours 11 Masters 15 Doctor of Business Administration 1
Furthermore we have many staff that hold senior first aid certificates, are qualified in special education
and who hold counselling qualifications. A list of the Professional Learning Activities undertaken at the
College includes:
College based professional learning teams, learning area and cross‐curricula
Mentoring/coaching
External consultants/facilitators
Accredited courses
Assessment and moderation activities
Structured professional reading
Peer observation
In‐school programs
4
External workshops/conferences
Practicums/school visits
Online learning
Teaching staff 2 year professional learning cycle including a Personal Project in Year A of the
cycle
Meetings of professional associations.
All teaching staff at Cornerstone College are required to be involved in Professional Learning Activities.
These take a variety of forms from whole staff professional development, sub‐school activities, specific
curriculum focus activities for teams of teachers, and attendance at workshops, seminars and
conferences for individuals or small groups of teachers.
Workforce Composition
In 2016 the College had the following composition of staff to support the students in their learning:
Teachers
Females: 20 Full Time and 25 Part Time, totalling 45 staff or 37.54 full time equivalents.
Males: 35 Full Time and 5 Part Time, totalling 40 staff or 37.88 full time equivalents.
Non‐Teaching
Females: 33 Part Time staff which equates to 22.2 full time equivalents.
Males: 6 Full Time and 4 Part Time, totalling 10 staff or 7.66 full time equivalents.
In total the College had 128 staff which represented 105.28 full time equivalents. Currently Cornerstone
has no indigenous staff members.
Teachers who are engaged as supervisors to replace teachers who are ill (TRTs) and those on
replacement contracts to fill in for those on long service leave or maternity leave etc, are not included
in the calculation. They do not form part of the permanent teaching staff and would be expected to
leave when the teacher they are replacing returns from leave.
As at the August Census there were 74.9 full time equivalent teaching staff members employed at the
College. During 2016 two teaching staff members terminated their employment from the College and
one staff member transferred to another Lutheran school, giving us a retention rate of 97.6%.
During 2016, one non‐teaching staff member transferred to the Lutheran Schools Association and
another non‐teaching staff member took up a teaching position at another school.
5
Student Attendance
The percentage figure for the average student attendance rate shows the proportion of days that each
student, on average, attended College over the whole year. The larger the percentage, the smaller the
number of days that students were absent from the College.
In 2016 the average student attendance rate was 94.4% and this is represented in the following table by
year level:
Year Level # Days Absent
# Students # School Days
Possible Days
Days at School
Attendance
Year 7 1,435 152 190 28,880 27,445 95.0%
Year 8 1,667 158 190 30,020 28,353 94.4%
Year 9 1,499 154 190 29,260 27,761 94.9%
Year 10 1,984 154 190 29,260 27,276 93.2%
Year 11 1,376 146 190 27,740 26,364 95.0%
Year 12 1,637 153 165 25,245 23,608 93.5%
Totals 9,598 917 170,405 160,807 94.4%
The attendance roll is taken every morning at Home Group and parents are advised of their student’s
absence by SMS text messaging thus allowing parents to respond should they have forgotten to advise
the College of their childs’ absence.
Senior Secondary Outcomes
152 students completed Year 12 in 2016. All students planned to complete SACE. 99.34% successfully
completed SACE requirements (compared to 96.27% for the State). Students studied from a range of 29
Stage 2 subjects.
18.2% of students received an ATAR of 90 or above (20.7% in 2015, 13.5% in 2014) while 35.6% of
students achieved an ATAR of 80 or above (42.1% in 2015, 30.6% in 2014).
132 students had a combination of SACE subjects that entitled them to receive an ATAR. The average
ATAR was 69.3 (74.4 in 2015, 70.44 in 2014) and the median 70.
The 2016 Dux of the College obtained an ATAR of 99.6.
In the grades, 23.8% of grades were As (24.5% in 2016, 19% in 2014) while 70.84% were As or Bs (78%
in 2015, 69% in 2014).
Nine merit awards were achieved in Research Project (6), Biology (1), Visual Art – Art (1) and Outdoor
Education (1).
All Year 10 students successfully completed the Personal Learning Plan as the first component of their
SACE.
6
Student Outcomes in Standardised National Literacy & Numeracy Testing
In May 2016, the National Assessment Program for Literacy and Numeracy (NAPLAN) tests were
completed by students in Years 3, 5, 7 and 9. This is an annual Federal Government requirement.
Students at Cornerstone in Year 7 and Year 9 completed five assessments, in the areas of Numeracy,
Reading, Writing, Spelling and Language Conventions.
The table shows the mean NAPLAN results in Year 7 in 2016 compared to SA and Australian mean scores.
Year 7 Reading Persuasive Writing
Spelling Grammar and Punctuation
Numeracy
Cornerstone 563.1 551.7 552.2 566.8 566.8
South Australia 537.8 516.3 537.3 536.7 542.6
Australia 541 514.7 542.9 540.2 549.5
The table shows the mean NAPLAN results in Year 9 at Cornerstone in 2016 compared to SA and
Australian mean scores.
Year 9 Reading Persuasive Writing
Spelling Grammar and Punctuation
Numeracy
Cornerstone 590.5 563.6 580.3 577.4 597.4
South Australia 575.2 545.5 572.8 565.1 577.2
Australia 580.6 548.4 580.3 570.3 588.8
Post School Destinations
Ninety‐six students applied to SATAC for university courses. In the first round of offers, 64% were offered
their first preference for university, while 85% were offered first or second choices (87% in 2015).
A wide variety of courses have been offered to the 2016 cohort: Criminology, Health Science,
Psychology, Engineering, Paramedics, Pharmaceutical Science, International Studies, Journalism,
Biotechnology, Applied GIS, Education, Medical Science, Creative Arts, Nursing and Archaeology.
As part of their SACE, 46 students completed Vocational courses (34 in 2015). This included certificates
in Christian Ministry and Theology, Children’s Services, IT and Health and Fitness.
Due to continuous enrolment processes at TAFE, students can apply for TAFE courses at any point in the
year, hence the number of SATAC applications for TAFE was significantly reduced in 2016 and accurate
statistics on overall TAFE applications are not available.
7
Parent, Student and Teacher Satisfaction with the College
A ‘Parent Satisfaction Survey’ was distributed at the end of 2016, to 240 parents randomly selected, of
approximately equal gender and evenly distributed across all Year levels. A total of 108 responses were
returned. This is the second year of conducting this survey with a view to building longitudinal data that
can be utilised to influence improvement in the delivery of the curriculum, wellbeing and administration
support.
The survey is divided into four sections, each one focusing on a different element. The parents had a
scale in which to rate each question ranging from ‘Completely’ satisfied to ‘Not at all’ satisfied. The
collective percentage of parents who rated ‘Completely’ satisfied or ‘Mostly’ satisfied is listed against
each question below.
Section 1 of the survey explored parent’s perception of Cornerstone’s offering.
To the questions listed below, existing parents were asked to rate Cornerstone’s success in delivering
on these. New parents were asked to what extent were their perceptions of Cornerstone College prior
to starting, matched with reality of their actual experience.
Question 2015 2016
Offers a caring and supporting learning environment 93% 89%
Foster personal development through service activities 83% 89%
Encourages students to achieve their highest possible level 83% 84%
Foster respect for the environment 89% 96%
Encourages global awareness 84% 82%
Provides the opportunity for students to explore their faith 85% 85%
Provides teaching that meets the needs of your child 78% 79%
Provides an innovative approach to teaching and learning that engages your child
88% 79%
Caters for individual differences 79% 57%
Section 2 of the survey focused on Teaching and Learning.
Parents were asked how satisfied they were with the following aspects of the educational program and
learning environment at Cornerstone.
8
Question 2015 2016
The use of technology to enhance student learning 95% 88%
How the classrooms and physical spaces support student learning 92% 90%
The support students receive from the College when making subject choices
81% 79%
How we recognise and affirm individual achievement 80% 80%
The curriculum information provided by the College 88% 88%
The breadth of subjects on offer 89% 90%
The support students receive in choosing their best pathways for senior school and beyond
66% 67%
Support and extension within the classroom 78% 67%
The extra‐curricular programs 79% 73%
The quality of teaching 85% 81%
The quality of the curriculum 86% 90%
Section 3 focused on communication with parents.
Parents are generally satisfied with the College’s efforts to keep them informed:
2015 – 96%
2016 – 91%
And their two most preferred ways to be keep up to date with what is happening at Cornerstone are:
School newsletter (connections)
2015 – 94%
2016 – 91%
Letters and emailss
2015 – 88%
2016 – 79%
Section 4 was about the effectiveness of the College administration and support functions which report
high levels of satisfaction.
Summary of results: A single lead indicator of satisfaction is the ‘Net Promotor Score’. This is gathered
in a single question at the end of the survey, asking the respondents to rate on a scale of 1 – 10 the
likelihood of them recommending Cornerstone College to family or friends. The overall Net Promoter
Score was:
2015 ‐ 61
2016 ‐ 47
While 47 is still considered a very good result, the College is not satisfied with a reduction in the Net
Promotor Score, and will actively continue to address any areas for improvement.
Overall there are many areas of celebration for Cornerstone, the survey also highlighted some areas for
improvement, and these will be considered by the College Leadership in consultation with staff.
9
College Income Broken Down by Funding Source
The College receives its income through several sources and these are represented under in order of
value for 2016:
Fees $7,918,853 Commonwealth Grants $7,250,097 State Grants $1,549,641 Building Fund Donations $398,329 Other Income $473,511 Other Grants $209,402 Facilities Hire/Fundraising $171,256 Total Income 2016 $17,971,089
10
Annual Report 2016
Cornerstone College, in its 27th year, continued
to be the ‘light on the hill’ in so many ways
during 2016. The Gospel of Jesus Christ was
unashamedly proclaimed in ways that reached
young people, allowing them to reflect on and
grow in their personal faith. Mid‐year we
welcomed a new College Chaplain, Andrew
Traeger, who together with Pastor Albert Gast
formed a highly effective Ministry team at
Cornerstone College. Our spiritual professional
learning in early July provided our staff with an
opportunity to give their interpretation of God’s
grace creatively through artwork. The beauty of
these experiences was that it was
acknowledged that our staff members are at
many different stages on a spiritual journey
which has the opportunity to be nurtured in our
community.
In 2016 a taskforce focussing on service learning
commenced, emphasising our goal of
promoting the value of service within our
students.
Cornerstone College continued to put a high
priority on student wellbeing and care.
Throughout the year, seven new House Leaders
were appointed to begin a 3‐year term,
beginning in 2017. We are extremely grateful to
those who completed their term at the end of
2016 and thank them for their exemplary
service in caring for and supporting our students
in this leadership role. Restorative Practise
continues to be at the core of relationship
management in the College providing strong
and lasting resolution to issues. In 2016 we
partnered with Dr Tom Nehmy of ‘Healthy
Minds’ to provide a resilience and wellbeing
program for our Year 8s. In addition, ‘Inspire for
Girls’ and ‘Oddesey for Boys’ were also
programs presented to Year 10s. A Health
Education Task Force report was presented for
consideration by the Curriculum Committee.
During the year we farewelled Mr Steve Sanders
(Business and Development Director), Mrs Barb
O’Connor (Librarian), Mr Adam Yeager
(Chaplain) Ms Georgie Day (Chinese teacher),
Mrs Fiona Staples (Canteen), Mr Patrick
Swanson (German Teacher), Mrs Jessica Foster
(Adaptive Education) and Mr Danny Hermel (ICT
Services). Contract staff farewelled were Mrs
Fei Fei Ghandar and Mrs Kendrea Rhodes. We
extend a huge thankyou to these staff members
who served our College in varying capacities
over different time spans with distinction.
In Matthew 5:14, 15 we read,
The success of all students in their learning was
a priority with learning support being effectively
provided through the Adaptive Education
Department where also many students were
extended through the ‘Stretch’ program. Above
average NAPLAN results together with 9 Merits
achieved in Year 12 indicated strong academic
achievement in the College. Efforts were made
during the year to track grade data to measure
the level to which students were improving or
regressing so that intervention or affirmation
could occur. Three new staff were appointed to
be Learning Area Leaders with the other roles
being retained by the incumbent.
Cornerstone College has had a very successful
26th year of operation with sound enrolments
and a good financial outcome. Further progress
was made in meeting the Strategic Goals in the
current cycle.
‘You are the light of the world. A city on
a hill cannot be hidden. Neither do
people light a lamp and put it under a
basket. Instead, they set it on a
lampstand, and it gives light to everyone
in the house.…’
11
Change and opportunity
Ministry and Care
(The expression of God’s love through the
support, care and nurture of each individual
within the College community (growth in
faith/worship)).
2016 marked the end of the three‐year tenure
for staff House Leaders within the Pastoral Care
Team with many choosing to pursue challenges
in other areas. We thank all those who have
contributed to the wellbeing of our students,
some for a significant number of years. We have
embedded professional learning biannually for
Restorative Practices, providing different
scenarios to increase awareness and
understanding, as well as introducing the
concept to our new staff. The Healthy Minds
programme with Dr Tom Nehmy has been
successful within Year 8 and Peer Mentoring has
been taking place between Year 7 and Year 10
students in paired Home Group. Detentions had
their last run and will look vastly different in
2017, replaced by Focus Meetings which are run
only twice a week and resemble restorative
discussions run by House Leaders.
Greater demand on College Counsellor
Matthew Schirmer’s role restricted him in
pursuing more proactive initiatives. This
prompted the appointment of a second
Counsellor in 2017, Mrs Katy Walker, for two
days each week which will allow Matthew to
become more strategic as the Lead Counsellor.
Our focus on empowering our Student Leaders
has continued:
Leading chapels – Middle School, Senior
School and Whole School
Assemblies – hosting Coffee Connect, MC,
devotion
12
Providing more opportunities to pursue
their own initiatives
Inserting a monthly spiritual component to
meetings.
Our culture of student leadership has developed
further towards being more service orientated:
Leadership training opportunities now
exist in a formal capacity twice during the
12‐month leadership period.
SRC has become the focus for growth:
Andy Liebelt and Eric McDonald have
created a more professional approach.
The profile of the SRC has developed
positively throughout the year.
They are more active, and in an
appropriate manner.
In general, the College uniform is being worn
with greater consistency. Girls’ shorts will
become an option in 2017, thus providing
equality for our girls, allowing them to
participate in more energetic activities. In
partnership with The Uniform Shop, the quality
and durability of sports socks has been a focus
with higher quality socks now available.
Contributions to Strategic Goal 3 ‘Strengthening
our partnership with community’ have included
the establishment of Coffee Connect as our
accepted process prior to assemblies or opening
worships. Parents are contacted if their child is
involved in some way. Speakers series/
workshops have continued with the likes of Dr
Tom Nehmy (Healthy Minds), Odyssey and
Inspire for Girls added to the list. The SchoolTV
trial was successful, and will be continued in
2017. It is an interactive resource for parents,
covering a multitude of issues that affect young
people today, including ways to support from a
variety of perspectives.
After a year of research and gathering data the
Health and Wellbeing Education Review
Taskforce provided its recommendation that
‘Health should be intentionally programmed
and assessed in a structured and sequential way
at Cornerstone College’ with possible options
provided to achieve this.
In 2016 Cornerstone College continued to work
hard in ensuring students and staff were
ministered to, and that the Gospel of Jesus
Christ was being shared with all the clarity that
the Good News demands. As the year of the
500th Reformation Anniversary approached, the
Ministry Team sought to begin a journey to re‐
emphasise the power of grace in the world, and
particularly in a community like Cornerstone, in
the hope that the one radical and unique
message of God was the definitive statement
left resonating on staff and students’ hearts and
minds.
During our mid‐year Staff Week, the Spiritual PD
component was framed by a very intentional
emphasis on the ‘grace’ topic, using its three
sessions to unpack three compelling aspects of
grace, including ‘Grace for Us’, ‘Grace in Us’, and
‘Grace with Us’. Staff were offered a series of
media and other personal stories that helped to
provide clues as to the meaning and definition
of grace, and were then able to reflect on their
own understanding of grace through a work‐
shop in which they used art to create their own
‘grace tile’.
2016 was a year of changing faces for Ministry
at Cornerstone. Pastor Albert Gast was absent
in Term 1, on long service leave, with Pastor
Greg Page of Holy Cross Lutheran Church
Murray Bridge filling in for two days a
week. This was the first trial of its kind, as the
13
LCA creates opportunities for parish pastors
who may identify an interest in a future school
ministry role.
In Term 2 the College Chaplain, Adam Yeager,
resigned his tenure, in readiness to take up a
new ministry position at Faith Lutheran College
in the Barossa. The new Chaplain, Andrew
Traeger, took up the role at Cornerstone at the
beginning of Term 3. We give thanks to God for
Adam Yeager and the unique gifts he brought to
our community for the five years he was at
Cornerstone. We also give thanks for the
smooth transition from old to new, as Andrew
Traeger brings his own style to the role. Andrew
has settled well, and has portrayed a ministry
approach that resonates well with students as
they seek spiritual leadership.
Passion Meditation in 2016 was once more a
strong expression of the Easter gospel,
emphasising the power of the Easter message
to all students and the wider Adelaide Hills
community, through the thespian giftings of our
Year 12 students.
Vetamorphus enjoyed a significant year, with
three classes of Year 12’s working through the
curriculum, and graduating as young people
discipled in a clearer appreciation of what it
means to live as a child of God. For the first time
the Vetamorphus course hosted two students
from the Hills Christian Community School, a
successful partnership that has potential for
opportunities to grow into the future.
The ongoing Chapel and Devotional Program at
the school continues to gain strength with clear
and definitive goals as set out in the document
entitled ‘Finding Common Ground’, a paper that
outlines the ministry of chapel and its approach
to all three audiences who participate each
week. The paper is grounded in a Pauline
theology that seeks to tell God’s Story, but
never in an imposed way, but rather a way that
honours all participants for their own God story,
whatever that might be. We are very thankful
for the staff who continue to support this key
ministry activity of our school, particularly in
their preparedness to present their piece of the
God story.
In Term 4 Pastor Albert Gast was given the
green light to host a Faith Course for all Year 8
students, developing a curriculum that
introduces the God of the Bible to many who
may have no clue as to his identity. The course
was titled ‘3P in 3D’, and uses the Apostles’
Creed as the basis for its structure. The course
will run for a single term, and begins in Term 1
of 2017.
Finally, the ministry of prayer continues to be
incorporated in the daily work of the College
Pastor and Chaplain, who regularly commit the
concerns of staff and students in prayer when
such information becomes available. This is a
privilege for the Ministry Team, and we pray
that God hears our regular call for his grace to
be offered into our school.
14
Infrastructure
(The wider College infrastructure that provides
the foundation and direction for all that
transpires within the College).
Progress continues to be made towards
delivering upon the strategic tasks and activities
recorded within the College Strategic Plan 2013
‐2018. Throughout the year the ‘goal
champions’ have presented to College Council
on the progress that has been made against
their goals and activities and this was well
received by the members of Council and a
celebration of their achievements.
A summary of the strategic goals are to:
enhance the levels of challenge and
achievement in student learning across
all year levels
champion best practice in professional
learning
strengthen our partnerships with
community
lead in middle school teaching and
learning
maintain sustainable and strong
governance.
Throughout 2016 the Finance team have
worked incredibly hard towards achieving the
financial targets and benchmarks set by College
Finance Committee and endorsed by Council.
Their efforts have exceeded these targets and
placed the College in a strong financial position
achieving another record surplus, and thus
providing the opportunity to pay down capital
loans at an accelerated rate.
The financial results were achieved by
exceeding enrolment targets, increasing the
College’s engagement with the community,
maximising income potential, minimising
expenditure, and improving operational
efficiencies and improved cashflow, all without
sacrificing educational standards to students,
but actually advancing resources in all areas.
While the College is in a much better financial
position than anticipated, there is still much
work to be done to continue to pay down capital
loans, deliver on capital projects to improve
learning environments, and undertake planned
maintenance programs on buildings,
infrastructure and the grounds.
The College continues to review the
departments of the College that provide
support to the teaching and learning, ensuring
that they are operating effectively and
efficiently. In 2016, a review of the Library
Resource Centre and Marketing Departments
were undertaken. The feedback from the
College community was instrumental in
providing affirmation of many current practices,
and advice for directions into the future. In the
first half of 2017, the recommendations of these
reviews will be further outworked to ensure
there continues to be contemporary and
relevant resourcing, facilities and skill
alignments that will assist in the successful
attainment of the College’s strategic goals.
Learning
A key project for 2016 was the utilization of a
Learning Management System (LMS) to support
student learning in the classroom and at home.
The LMS is an electronic tool for providing
resources, running courses, informing students,
running polls or forums and, in the future,
communicating with parents. As long as
students have internet access at home, they can
connect to the LMS to view lessons, collect
resources, contribute to learning activities and
communicate with their teacher. The LMS
selected and implemented was developed in
Australia and the product is called Schoolbox.
15
The College has subsequently personalized the
name of the product, calling it Charis. Through
2016, staff undertook extensive training to learn
how to use Charis, to develop courses and to
utilize this new LMS in the classroom. Staff used
Charis with at least one of their subjects each
semester. From 2017, Charis will be fully
implemented across all classes and subjects,
and the parent portal will be opened.
Ongoing developments and planning continue
with Middle School as part of the five‐year plan
since Year 7 was introduced at Cornerstone. In
Year 8, Healthy Minds program was introduced.
This program developed and presented by SA
psychologist Dr Tom Nehmy was well received
by students and staff. The Healthy Minds
program is a proactive approach to wellbeing
that aims to equip students with life skills that
will help them maintain a healthy wellbeing
through their adolescent years into adult life. As
well as providing teaching to the students,
parents attended an information session so
they could support and reinforce the student
learning at home. The program will continue in
2017, along with further Healthy Mind training
for staff and sessions with other year levels.
As part of continuing development of innovative
middle schooling, research and planning was
undertaken to develop a pilot for an extended
learning program in Year 8. The aim is to
increase the integration of the Australian
Curriculum into enquiry units of work to engage
the students in meaningful learning. The
extended program is being piloted in 2017 with
two core groups.
A longer term project to develop a blended Year
8 and 9 elective program continued with its
planning. Technology and Art electives are
being redeveloped. A middle school certificate
concept is also being explored. These
developments involve long term planning. They
are innovations that will significantly change
how middle school functions into the future.
Cornerstone is continuing to build our
relationship with Flinders University. Year‐long
internships continued, with a number of interns
focusing their Semester 2 research project on
middle school learning. Further connections
including opportunities for PD with staff and
further student teacher connections are being
explored with two second‐year students
working in middle school on literacy in 2017.
Cornerstone continues to work towards Leading
in Middle Schooling as a College strategic goal.
As well as the innovations under development,
the journey was shared by the Middle School
leadership team in Wellbeing and Learning at
the NZAIMS Conference in Whakatane in Term
4. The developments at Cornerstone in middle
schooling continue to attract interest in SA,
Australia and overseas.
In Senior School the first subjects in the senior
Australia Curriculum program were
implemented in Mathematics and English. In
2017, the Science and History subjects will be
implemented at Stage 1 and Stage 2
Mathematics and English. Staff professional
development and course planning was a critical
part of this implementation to ensure the best
possible courses for Cornerstone students, and
to ensure staff were fully trained in the new
SACE requirements.
Supporting Senior School students to plan for
their future is an important goal for the College.
This is achieved through providing a meaningful
and comprehensive curriculum that provides
students with the background for their career
goals, as well as through parent Information
Nights and a community Careers Expo. The
Careers Expo was again very successfully run by
Cornerstone College with students from many
Adelaide hills high schools attending to get
information on careers, tertiary studies and
further training options.
16
To extend the SACE subjects completed by Year
10 students, a new subject called Workplace
Practices was introduced. As students begin
Senior School, this subject particularly supports
students to consider their career goals and
helps them plan subjects for their final years of
schooling to keep their different career options
open.
A Year 11 Information Night was held in Term 1,
in addition to the current Meet the Year 12
Teacher night. The evening further developed
our senior school program of parent nights, to
assist parents and students to understand the
options available for planning their future,
obtaining career information and on the
processes for undertaking Workplace Learning
(WPL) in Year 11. The College continues to
strongly promote the involvement of students
in WPL as an invaluable mechanism for students
to explore a particular career path with a
practitioner in that field.
In order to further develop the College’s health
program, at Year 10 a new program called
Odyssey was introduced. The program extends
the Sex Education program that is part of Year
8, and Year 9 Journey, to further consider age‐
appropriate issues in sex education, sexuality
and social media issues around image. The
student workshops were paired with a parent
session to inform parents of the program
content so they could complement the
student’s learning at home.
The College aims for 100% pass with SACE. In
order to assist students to succeed flexible
options such as Community Studies, Self‐
directed Learning and Community Learning can
provide alternative pathways to ensure all
students are successful in SACE. Community
Studies B was introduced as a further flexible
option with three students undertaking this
option to assist them to complete their SACE.
Enhancements have been made in facilities in
the Arts (Design Studio) and Science. Two
collaborative Learning Laboratories have been
fitted with new furniture to promote both
group and individual learning opportunities in
the classroom. New ergonomic, flexible
furniture, bay benches, whiteboards around the
room and interactive televisions have been
installed to make the classrooms adaptable to
various learning situations. In the Design Studio,
a new interactive television and blackboard wall
provide new opportunities for learning. New
furniture for the Design studio is planned for
2017 to complete this development.
As part of longer term Senior School planning a
Senior School Hub is being planned. The goal is
to provide a central location for students to be
able to access study and teacher resources
(including key senior school leaders) to support
their learning. Planning will continue through
2017 on this major development with the goal
of redevelopment of an existing space to
provide the Senior School Hub for 2018.
Across the Senior School program,
opportunities for meaningful learning are
encouraged. The PE department developed and
implemented a Coaching Unit in Year 11 PE that
taught students the principles and skills of
coaching. The students then developed a sports
program which they were able to implement
with students at St Mark’s and St Michael’s
Lutheran schools utilizing the coaching skills
they had learnt to teach the younger students.
The students also planned and ran a full sports
carnival for the Lutheran primary schools at
Cornerstone College. The Year 11 students were
able to put their learning into practice in an
authentic and meaningful community activity.
Staff Professional Learning
It is strongly acknowledged that the quality of
teachers and teaching is by far the most
significant influence on the achievement of
17
quality learning outcomes for students. With a
strong focus on professional learning promoted
through our strategic vision we continue to
enact programs which provide opportunities for
our staff to grow professionally. While the
quality of teaching is paramount, we also
acknowledge the value of quality support which
is provided by support and administrative staff
who also are challenged to achieve at a high
level through training and professional learning.
A focus on the Australian Professional
Standards for Teachers has sharpened the focus
on teaching as a profession. There are seven
Standards with thirty seven Focus Areas where
teachers are required to self‐assess their level of
proficiency against four career stages:
Graduate, Proficient, Highly Accomplished and
Lead Teacher. Through Cornerstone having an
expectation and process for teachers collecting
evidence relating to the Standards we
encourage our staff to consider applying to
become Highly Accomplished or Lead Teachers
in the national arena. Currently a small group of
teachers have started this process.
The Professional Learning program for teaching
staff continued the two‐year cycle, with the
Personal Project (a professional learning goal)
being a key feature for the Year A group and
now is embedded in the culture of our school.
An expo of projects at the end of the year was
again embraced by staff with some
presentations being recorded on video by a Year
8 student. The presentation of projects:
enabled staff to engage in professional
learning and research relevant to their
teaching
provided staff with the opportunity to
present professionally to their peers
and to use pedagogies used in the
classroom
enabled staff to learn from each other.
College Leadership provide time for Year 7
teachers to collaborate as part of their load and
this concept was expanded to some Year 8
teams in 2016. Again the strength of
collaboration as a professional learning tool is
being increasingly acknowledged.
The professional growth of Support and
Administrative staff is supported through an
annual review process which includes goal
setting for the next year. An increased
awareness to access relevant training for these
staff is occurring.
The use of student feedback to enable teachers
to learn with the use of an online surveying tool
to collect data centrally from students was again
part of our practise. This is done both for
learning and pastoral care experiences in our
college. Feedback is provided to individual
teachers but is also referenced across the
College.
In 2016 the College continued to build a system
of line management for teaching staff which
involved learning leaders working with small
teams to set learning goals, mentor and coach
staff and to conduct the annual reviews. This is
a successful shift which highlighted the value of
these leaders in our College and the need to
develop them as leaders.
In 2016 Cornerstone College embarked on a
partnership with Flinders University which
involved us in taking three pre‐service interns
for the year. This process underscored our
commitment to teacher training but also
provided opportunities for our staff to act as
mentors and teacher leaders. We will take four
interns in 2017 to build this program. In addition
Flinders University have provided a scholarship
to a teacher at Cornerstone, covering two topics
within a Master’s program. We are encouraging
Flinders University to provide a stronger
pathway for pre‐service teachers to teach in a
middle school environment. Leaders at
18
Cornerstone have presented to the University
on this topic.
Support Services
(The provision of relevant services that support
the effective operation of the College in its focus
as a place of learning).
The effective delivery of the support services
function at Cornerstone is critical to ensuring
that the College is operating at its optimum,
teachers are free to teach and student learning
is uncompromised. Every support services
department at Cornerstone has a clear direction
and focus, and is committed to continually
reviewing the way it does things to improve
their service delivery. For some departments
they achieve continual improvement by
documenting, monitoring and reporting their
progress via a formal plan, where for others, the
performance improvement process is managed
as part of their annual review.
In addition to the internal review process
undertaken by each department, the College
has adopted an external review process, where
someone independent of the department
assesses the efficiency and effectiveness of the
operation and service delivered.
The Information Communication Technology
and Property departments have had external
reviews performed and the outcomes of these
have improved service delivery. The reviews
will continue as part of good business practice.
18
Council Chair Report
In 2016, we have been able to continue to work towards consolidation of the financial position for
Cornerstone College.
It is encouraging to see the high level of enrolments over recent years, indicating that Cornerstone
continues to be a sought‐after environment for secondary education.
Strong enrolments and a positive financial environment help to provide a solid back drop for the
College to continue providing ‘Christ‐centred quality education’. This environment over recent years
has provided the opportunity to consolidate our debt position post the College’s expansion into middle
school some three years ago, this has also provided the opportunity to see a more moderate increase
in tuition fees in 2017.
In the latter part of 2016 the College Board along with Senior Staff commenced reviewing our Master
Planning, while this process has only just begun, it is important for the College to continue to look
forward and plan for the future. This planning will form an important part of the agenda for the
College and Board in 2017.
At Cornerstone, we are blessed with a dedicated quality team of people, I would therefore like to take
this opportunity, on behalf of the College Council, to thank Craig Fielke and his Senior Leadership
Team, the teachers, administrators, support staff, ground staff and any others involved with the day to
day life of the College for their ongoing commitment and highly valuable contribution to the College.
In 2016, we welcomed Sue Kupke and Chris Howis onto the School Board and Andrew Fort onto the
Board’s Finance Sub‐Committee. At the end of 2016 we farewelled Cameron Hawke from the School
Board and as Chair of the Board’s Finance Sub‐Committee, a sincere thank you to Cameron for your
service and commitment.
We are also blessed at Cornerstone with a dedicated group of people that give of their time to
voluntarily oversee the Governance issues of the College. Thank you to my fellow Board and Board
Sub‐Committee members, for their support, time and commitment over this period, which provides a
back drop for the smooth running of the College Governance.
In all things we thank God for his ongoing presence in the life of Cornerstone College.
Mr Anthony Klatt
Chairman
19
Report of the Council Members
31 December 2016
The Council Members present their report on the financial statements of the College for the year ended 31 December 2016.
1. General Information
Council Members
The names of Council Members throughout the year and at the date of this report are:
Anthony Klatt (Chairman) Chris Howis (Appointed March 2016) Rob Zadow Shane Paterson Pastor Stephen Schultz Ron Hogg Cameron Hawke (Resigned December 2016) Sue Kupke (Appointed February 2016)
Advisory Members
Craig Fielke (Principal)
Carl Hollsten (Business Manager)
Pastor Albert Gast (College Pastor)
Observer
Rob Rohde (Deputy Principal)
Principal Activities
The principal continuing activities of the College are to provide secondary education for approximately 917 students.
Significant Changes
No significant change in the nature of these activities of the College occurred during the year.
Operating Result
The surplus of the College for the year after non‐operating income amounted to $ 1,401,889(2015: $ 1,450,788).
Events Subsequent to the End of the Period
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the College, the results of those operations or the state of affairs of the College in future financial years.
20
Council Members Benefits
In accordance with the Australian Charities and Not‐for‐Profits Commission Act 2012 the Council Members of Cornerstone College Inc. hereby state that during the financial year ended 31 December 2016:
I. no officer of the College; II. no firm of which an officer is a member; and III. no body corporate in which an officer has a substantial financial interest
has received or become entitled to receive a benefit as a result of a contract between the officer, firm or body corporate and the College and no officer has received either directly or indirectly from the College any payment of other benefit of a pecuniary value with the exception of Advisory Members to the Council who received a salary as employees of the College.
21
Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 31 December 2016
Note 2016 $
2015 $
Revenue 2 17,564,445 16,541,062
Employee benefits expense (11,419,862) (11,262,605)
Depreciation and amortisation expense (1,430,660) (633,868)
Other expenses (3,086,970) (2,896,480)
Finance costs (631,712) (730,983)
Net surplus from ordinary activities attributable to the College 995,241 1,017,126
Non‐operating income 2 406,648 433,662
Surplus after non‐operating income 1,401,889 1,450,788
Other comprehensive income ‐ ‐
Total comprehensive income for the year 1,401,889 1,450,788
22
Statement of Financial Position
As at 31 December 2016
Note 2016
$ 2015 $
ASSETS
CURRENT ASSETS Cash and cash equivalents 4 1,297,178 1,119,908 Trade and other receivables 5 1,001,324 1,064,885 Inventories 6 9,540 8,428 Other current assets 7 192,011 95,856
TOTAL CURRENT ASSETS 2,500,053 2,289,077
NON‐CURRENT ASSETS Property, plant and equipment 8 35,565,357 36,077,254
TOTAL NON‐CURRENT ASSETS 35,565,357 36,077,254
TOTAL ASSETS 38,065,410 38,366,331
LIABILITIES CURRENT LIABILITIES Trade and other payables 9 3,825,420 3,684,545 Financial liabilities 10 1,535,508 1,598,789 Employee benefits 11 2,582,064 2,428,561
TOTAL CURRENT LIABILITIES 7,942,992 7,711,895
NON‐CURRENT LIABILITIES Financial liabilities 10 10,458,313 12,385,784 Employee benefits 11 41,712 48,148
TOTAL NON‐CURRENT LIABILITIES 10,500,025 12,433,932
TOTAL LIABILITIES 18,443,017 20,145,827
NET ASSETS 19,622,393 18,220,504
EQUITY
Capital reserve 12 2,130,774 2,130,774 Asset revaluation reserve 12 7,370,473 7,370,473 Accumulated surplus 10,121,146 8,719,257
TOTAL EQUITY 19,622,393 18,220,504
23
Statement of Changes in Equity
For the Year Ended 31 December 2016
2016
Accumulated
Surplus $
Capital Reserve $
Asset Revaluation Reserve
$ Total $
Balance at 1 January 2016 8,719,257 2,130,774 7,370,473 18,220,504 Surplus after non‐operating income 1,401,889 ‐ ‐ 1,401,889
Balance at 31 December 2016 10,121,146 2,130,774 7,370,473 19,622,393
2015
Accumulated Surplus
$ Capital Reserve
$
Asset Revaluation Reserve
$ Total $
Balance at 1 January 2015 7,268,469 2,130,774 7,370,473 16,769,716 Surplus after non‐operating income 1,450,788 ‐ ‐ 1,450,788
Balance at 31 December 2015 8,719,257 2,130,774 7,370,473 18,220,504
24
Statement of Cash Flows
For the Year Ended 31 December 2016
Note 2016
$ 2015 $
CASH FLOWS FROM OPERATING ACTIVITIES Government grants 9,009,152 8,437,320 Tuition fees 6,855,875 6,336,611 Building fund transfers 398,329 427,310 Interest received 34,224 30,657 Other receipts 1,676,101 1,580,783 Payment to suppliers and employees (14,316,157) (13,576,458) Finance costs (631,712) (730,983)
Net cash provided by operating activities 13(b) 3,025,812 2,505,240
CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of plant and equipment 164,037 106,422 Payment for property, plant and equipment (1,021,827) (760,405)
Net cash (used in) investing activities (857,790) (653,983)
CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of borrowings (2,107,826) (1,455,872) (Repayment) of / Proceeds from finance lease 117,074 (60,142)
Net cash (used in) financing activities (1,990,752) (1,516,014)
Net increase in cash and cash equivalents held 177,270 335,243 Cash and cash equivalents at beginning of year 1,119,908 784,665
Cash and cash equivalents at end of financial year 13(a) 1,297,178 1,119,908
25
Notes to the Financial Statements
For the Year Ended 31 December 2016
1. Summary of Significant Accounting Policies
Basis of Preparation
The financial statements are special purpose financial statements that have been prepared for distribution to the Council Members in order to satisfy the Council Members' financial reporting requirements of the Australian Charities and Not‐for‐profits Commission Act 2012 and the College's Constitution. The Council Members have determined that the College is not a reporting entity.
The financial statements have been prepared on an accruals basis and are based on historic costs and do not take into account changing money values or, except where specifically stated, current valuations of non‐current assets.
The following significant accounting policies, which are consistent with the previous period unless otherwise stated, have been adopted in the preparation of these financial statements.
(a) Inventories
Inventories consist of canteen and facility stocks and are measured at the lower of cost and net realisable value. Cost of inventory are assigned on a specific identification basis.
(b) Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost or fair value, less where applicable, any accumulated depreciation.
Cost and Valuation
Property, furniture, plant and equipment are recorded at cost and where applicable at Council Members’ valuation. The College does not have a formal policy in respect of the timing of revaluations. Any surplus on revaluation is credited directly to the asset revaluation reserve and excluded from the Statement of Profit or Loss and Other Comprehensive Income.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
An asset’s carrying amount is written down immediately to its recoverable amount if the assets’ carrying amount is greater than its estimated recoverable amount.
Any gain or loss on the disposal of assets is determined as the difference between the carrying value of the asset at the time of disposal and the proceeds from disposal, and is included in the Statement of Profit or Loss and Other Comprehensive Income of the College in the year of disposal.
Depreciation
The depreciable amount of all assets, excluding freehold land, are depreciated over their useful lives to the College commencing from the time the asset is held ready for use. This is the first year depreciation has been charged against the buildings.
Depreciation value is provided on a straight line basis on all items of furniture, plant and equipment, buildings, and library and teacher resources, at rates calculated to allocate the cost and/or fair value, less estimated residual value at the end of the useful lives of the assets, against revenue over those estimated useful lives.
1. Summary of Significant Accounting Policies (Cont'd)
26
(b) Property, Plant and Equipment (Cont'd)
Depreciation (Cont'd)
Major depreciation periods are:
Furniture, plant and equipment: 5 to 10 years
Buildings: 40 years
Library books and teacher resources: 5 years
Computers: 3 years
Motor Vehicles: 5 years
Land and Buildings
The Registered Proprietor of the land on which the College and its buildings and improvements are located is the Lutheran Church of Australia, South Australia District Inc. of Archer Street, North Adelaide SA 5006.
Insurance
All property, plant and equipment is insured with LCA Property Provident Fund. The replacement cost for insurance purposes is $41,989,000 (2015: $40,766,000).
(c) Investments and other financial assets
Investments held are originally recognised at cost, which includes transaction costs. They are subsequently measured at fair value which is equivalent to their market bid price at the end of the reporting period. Movements in fair value are recognised through an equity reserve.
(d) Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short‐term highly liquid investments with original maturities of three months or less.
(e) Trade receivables
Trade and other receivables are carried at amounts due and non‐tuition fee receivables are generally settled within 30 days. Tuition fees are due for settlement within the school year. Bad debts are provided for or written off based on a review of collectability of amounts outstanding at balance date. Receivables expected to be collected within 12 months of the reporting period are classified as current assets. All other receivables are classified as non‐current assets.
(f) Employee benefits
Provision is made for the College's liability for employee benefits arising from services rendered by employees to the end of the reporting year. Employee benefits have been measured at the amounts expected to be paid when the liability is settled.
Annual leave for teachers and other staff due at 31 December, where unpaid, is reflected in the financial statements as a provision.
Sick leave taken by employees is charged as an expense when incurred.
1. Summary of Significant Accounting Policies (Cont'd)
27
(f) Employee benefits (Cont'd)
Provision is made for long service leave entitlements, estimated to be payable to employees on the basis of statutory and contractual requirements. Long service leave that is expected to be settled within one year has been measured at the amounts expected to be paid when the liability is settled. Long service leave later than one year has been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may not satisfy vesting requirements. Those cash outflows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows attributable to employee benefits. Vested entitlements (employees with more than 5 year's service), are classified as current liabilities.
Under Clause 23 of the Lutheran Schools Enterprise Agreement 2015, an eligible employee, upon proceeding on maternity leave, shall be paid fourteen weeks salary at her substantive salary rate. Any liability for maternity leave, will be charged by the College as an expense in the year that it is paid.
The contributions made to superannuation funds by the College are charged as an expense.
Within the Lutheran Systems of Colleges and Schools, there is full portability of leave entitlements for employee’s transferring from one Lutheran College and/or School to another Lutheran College and/or School. The total amount of portable long service leave as at 31 December 2016 is $1,696,211 (2015: $1,743,958).
(g) Trade and other payables
Trade payables, including accruals not yet billed, are recognised when the College becomes obliged to make future payments as a result of a purchase of assets or services. These are generally settled within 30 days.
(h) Income Tax
The College is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.
(i) Leases
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership that are transferred to the College are classified as finance leases.
Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for that period.
Leased assets are depreciated on a straight‐line basis over their estimated useful lives where it is likely that the College will obtain ownership of the asset or over the term of the lease.
Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are charged as expenses on a straight‐line basis over the life of the lease term.
(j) Revenue and other income
Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the entity and specific criteria relating to the type of revenue as noted below, has been satisfied.
1. Summary of Significant Accounting Policies (Cont'd)
28
(j) Revenue and other income (Cont'd)
The nature of the College’s activities allows it to raise funds from operations, principally from fees, income on investments and government recurrent grants.
The College recognises tuition and other associated fees on an accrual basis. Under the accruals basis of accounting, fees represented by outstanding debts have been brought to account as trade debtors.
Grant income is brought to account in the College’s Income Statement in the period to which the income relates.
All revenue is stated net of the amount of goods and services tax (GST).
(k) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense.
Receivables and payables in the statement of financial position are shown inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the balance sheet.
(l) Critical accounting estimates and judgments
The Council Members evaluate 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 College.
(m) Working capital deficiency
As at 31 December 2016, the College reported a deficiency in net current assets of $5,442,939 (2015: $5,422,818). As is the case with most Schools and Colleges, the College has a significant surplus of net assets. It is, however, reliant on the timing of positive cash flow, including receipt of Government funding to support its ongoing day‐to‐day cash flow requirements. Government funding has been secured for 2017.
(n) Comparative figures
Comparative figures have been adjusted to conform to changes in presentation for the current financial year where required by accounting standards or as a result of changes in accounting policy.
(o) Economic dependence
The future operations of the College are dependent upon achieving & maintaining appropriate student enrolment numbers, the continuation of adequate funding from the Australian & South Australian Governments in respect of operational and capital grants, the continued support of the Lutheran Schools Association and the achievement of operating surpluses and positive operating cash flows.
29
2016 $
2015 $
2. Revenue and Other Income
Revenue ‐ Fee income (net) 6,870,559 6,446,114 ‐ Government grants 9,011,719 8,437,320 ‐ Canteen income 189,534 195,788
16,071,812 15,079,222
Other revenue ‐ Interest 34,224 30,657 ‐ Hire of facilities 126,097 125,348 ‐ Other income 1,271,339 1,293,625 ‐ Profit on sale of plant and equipment 60,973 12,210
1,492,633 1,461,840
Total Revenue 17,564,445 16,541,062
Non‐operating Income
Building fund donations 398,329 427,310 Donations & fundraising 8,319 6,352
406,648 433,662
3. Result for the Year
The result for the year includes the following specific expenses:
Annual leave expense 186,381 74,394
Auditor's remuneration ‐ Auditing ‐ William Buck 9,280 9,010 Bad debts written off/provision for impairment 18,000 18,000 Depreciation 1,430,660 633,868 Interest on bank overdraft 1,231 14,086 Interest on borrowings and loans 630,481 716,897
Long service leave expense 1,054 286,488 Rental ‐ 14,991
4. Cash and cash equivalents
Cash on hand 675 575
Cash at bank ‐ WPAC Building Fund 4,687 7,739
Cash at Bank LLL 31717S1 1,059,006 955,066
Cash at Bank Westpac 232,810 156,528
1,297,178 1,119,908
30
2016 $
2015 $
5. Trade and other receivables
CURRENT Sundry debtors ‐ Fees 1,052,978 1,067,662 Provision for impairment (108,480) (90,899)
944,498 976,763 GST receivable 56,826 88,122
Total current trade and other receivables 1,001,324 1,064,885
6. Inventories
CURRENT Inventories at cost 9,540 8,428
7. Other current assets
CURRENT Prepayments 165,923 95,856 Water Licence Entitlement 26,088 ‐
192,011 95,856
8. Property, plant and equipment
LAND, BUILDINGS AND IMPROVEMENTS Freehold land At independent valuation 31/12/2014 3,650,000 3,650,000
Buildings At independent valuation 31/12/2014 17,884,653 17,884,653 At cost 7,913,317 7,899,057 Accumulated depreciation (646,160) ‐
25,151,810 25,783,710
Improvements At independent valuation 31/12/2014 4,510,037 4,510,037 At cost 736,496 180,995 Accumulated depreciation (124,942) ‐
5,121,591 4,691,032
Total land, buildings and improvements 33,923,401 34,124,742
8. Property, plant and equipment (Cont'd)
31
2016 $
2015 $
PLANT AND EQUIPMENT Furniture and equipment At cost 4,720,663 5,711,365 Accumulated depreciation (3,737,785) (4,537,714)
982,878 1,173,651
Plant and machinery At cost 1,425,932 1,311,762 Accumulated depreciation (889,742) (705,876)
536,190 605,886
Motor vehicles At cost 204,040 418,916 Accumulated depreciation (81,152) (245,941)
122,888 172,975
Total plant and equipment 1,641,956 1,952,512
Total property, plant and equipment 35,565,357 36,077,254
9. Trade and other payables
CURRENT Unsecured liabilities Trade payables 150,178 269,175 Enrolment Deposit 415,300 442,850 Fees in advance 3,008,083 2,763,244 Other payables 251,859 209,276
3,825,420 3,684,545
10. Financial Liabilities
CURRENT Secured liabilities: Lease liability secured 14 87,576 24,081 Loans ‐ LLL 1,447,932 1,574,708
1,535,508 1,598,789
10. Financial Liabilities (Cont'd)
32
2016 $
2015 $
NON‐CURRENT Secured liabilities:
Lease liability secured 14 133,057 79,478 Loans ‐ LLL 10,325,256 12,306,306
10,458,313 12,385,784
Total financial liabilities 11,993,821 13,984,573
11. Employee Benefits
CURRENT Long service leave 1,654,499 1,695,810 Annual leave 894,348 707,967 Study leave 33,217 24,784
2,582,064 2,428,561
NON‐CURRENT Long service leave 41,712 48,148
12. Reserves
Asset revaluation reserve Opening balance 7,370,473 7,370,473 Revaluation movement on land & buildings ‐ ‐
7,370,473 7,370,473
Capital reserve 2,130,774 2,130,774
Total reserves 9,501,247 9,501,247
Asset revaluation reserve:
The most recent valuation of land and buildings amounting to $33,197,194, comprises an independent valuation conducted by Valcorp Australia Pty Ltd as at 31 December 2014.
The revaluation increment above the carrying value amounted to $1,709,678 and was credited to the asset revaluation reserve at 31 December 2014.
33
2016 $
2015 $
13. Cash Flow Information
(a) Reconciliation of cash
Cash at the end of the financial year as shown in note 4 is reconciled to items in the statement of financial position as follows:
Cash and cash equivalents 1,297,178 1,119,908
(b) Reconciliation of result for the year to cashflows from operating activities
Reconciliation of cash flow from operations with surplus for the year: Surplus for the year 1,401,889 1,450,788 Non‐cash flows in profit: ‐ depreciation 1,430,660 633,868 ‐ net gain on disposal of property, plant and equipment (60,973) (12,210) Changes in assets and liabilities: ‐ (increase)/decrease in trade and other receivables 63,561 (149,833) ‐ (increase) in inventories (1,112) (3,113) ‐ (increase) in other assets (96,155) (26,497) ‐ increase in trade and other payables 140,875 234,925 ‐ increase in employee benefits 147,067 377,312
Cashflow from operations 3,025,812 2,505,240
14. Capital Commitments
(a) Finance Leases Minimum lease payments: ‐ not later than one year 96,252 29,331 ‐ between one year and five years 138,610 87,085
Minimum lease payments 234,862 116,416 Less: future finance changes (14,229) (12,857)
Present value of minimum lease payments 220,633 103,559
(b) Operating Leases
Minimum lease payments under non‐cancellable operating leases: ‐ not later than one year 62,463 ‐ ‐ between one year and five years 192,595 ‐
255,058 ‐
An operating lease has been taken out in 2016 for Fuji Xerox printers. There were no operating leases in the prior reporting period.
34
15. Contingencies
Contingent Liabilities
The College had the following contingent liabilities at the end of the reporting period:
Lutheran School Association
The Lutheran School's Association Inc. ("LCA") has undertaken to financially back the loans made by the Lutheran Laypeople’s League Inc. (“LLL”) to all Lutheran Colleges, Schools and Kindergartens, through either the SA/NT or WA District Church Councils, up to the net assets of all LSA Institutions.
The combined asset values of all LSA Institutions, including member Colleges, Schools and Kindergartens, are utilised by the LSA to guarantee the loans made by the LLL to LSA member Institutions.
It will be the responsibility of all member Colleges and Schools working together to discharge these LLL loan liabilities in the unlikely event of a College, School or Kindergarten failure. Colleges and Schools may be called upon for a special contribution or part of their future Commonwealth funding may be allocated to repaying LLL loans of a failed College, School or Kindergarten.
Commonwealth and State Capital Grants
Pursuant to the conditions attached to Commonwealth and State capital grants, the College is contingently liable to repay, based on a formula, all or part of the grants received if the project to which the funds are applied ceases to be used for the purpose approved or is sold or otherwise disposed of within 20 years of completion of the project.
The maximum amount of contingency as at 31 December 2016 was $Nil (2015 $Nil).
Other
There were no other contingent liabilities as at 31 December 2016 (2015 $Nil).
16. Events Occurring After the Reporting Date
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the College, the results of those operations or the state of affairs of the College in future financial years.
17. Remuneration of Council Members
No amounts were received or are due and receivable by the Council Members of Cornerstone College Inc. during the year ended 31 December 2016 (2015: Nil) with the exception of Advisory Members to the Council who received a salary as employees of the College.
18. College Details
The principal place of business of the College is: 68 Adelaide Road Mount Barker SA 5251
35
Statement by Council Members
The Council Members of Cornerstone College Inc. have determined that the College is not a reporting entity and that this special purpose financial report should be prepared in accordance with the accounting policies outlined in Note 1 to the financial statements.
In the opinion of the Council Members the financial report as set out on pages 3‐16:
1. Presents fairly the financial position of Cornerstone College Inc as at 31 December 2016 and its performance for the year ended on that date.
2. At the date of this statement, there are reasonable grounds to believe that Cornerstone College Inc will be able to pay its debts as and when they fall due.
This statement is made in accordance with a resolution of the committee and is signed for and on behalf of the College Council by:
Independent Auditors’ Report
–