CONTENTS · Ensemble, Music Camp, Hot House Band, Little Big Band, Music Cabaret, Studio Band,...

68 Adelaide Road Mount Barker SA 5251Phone: 08 8398 6000 Fax: 08 8398 6098 Web: cornerstone.sa.edu.au Email: [email protected]

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CONTENTSCollege Overview for 2013 ____________________________________________________________________________ 2

Annual Report 2013 ___________________________________________________________________________________ 9

Council Chair Report ________________________________________________________________________________ 17

Report of the Council Members _____________________________________________________________________ 18

Statement of Profit or Loss and Other Comprehensive Income _____________________________________ 19

Statement of Financial Position _____________________________________________________________________ 20

Statement of Changes in Equity _____________________________________________________________________ 21

Statement of Cash Flows ____________________________________________________________________________ 22

Notes to the Financial Statements ___________________________________________________________________ 23

Statement by Council Members _____________________________________________________________________ 33

Independent Auditors’ Report _______________________________________________________________________ 35

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COLLEGE OVERVIEW FOR 2013As 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 2013 school year.

If you have any questions regarding this information please direct them to the Director of Business Development, Steve Sanders on (08) 8398 6005.

Reporting on the Performance MeasuresOur Mission StatementWe 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 CollegeIn a recent collation of enrolment data, the four key reasons for Year 7, 2014 families choosing Cornerstone were: 1. Caring environment; 2. Academic reputation; 3. Christian education; and 4. Curriculum choice.

It is noted that these have traditionally been the four key determinants of parental choice of Cornerstone College.

The StatisticsFor 2013 we started the year with 751 students which consisted of 363 girls and 388 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 decreased to 744 students enrolled and of this complement we had two indigenous students and 17 students with disabilities. Our students were supported by 75 energetic and professional teaching staff and 49 dedicated administrative and support personnel.

Value AddingCornerstone 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 imposed on 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 2013 that added value to the educational experience of students at Cornerstone College.

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• 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 as well as Senior Choir, Junior Vocal Ensemble and Year 12 Christian Living visits to aged care facilities

• Community Service – Australian Lutheran World Service, 40 Hour Famine, World Vision, Habitat for Humanity. This includes two student service tours to Cambodia.

• Leadership – Student Representative Council, Junior and Senior House Leadership and Student Leaders

• Extension Activities – Tournament of the Minds, Mock Trial, Chess, Duke of Edinburgh

• Public Speaking – Lions Youth of the Year, Rostrum Voice of Youth, Debating, Year 8 Lutheran School Public Speaking

• Sports – Athletics, Swimming, Triathlon, Ekiden Relay and Tennis

• Knockout Sports – Basketball, Australian Rules Football, Soccer, Volleyball, Netball, Cricket, Touch Football, Hockey

• 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, Karnival, 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, Studio Band, Senior Vocal Ensemble, Worship Bands

• Special Curriculum Initiatives – Special programs for those with special learning needs. A new ‘STRETCH program’ for Gifted and Talented students

• Health and Well Being – Drug Education, Healthy Eating Programme, Resiliency Program, Car Safety Awareness, Sexuality Education

• Camp/Experiences – Year 8 Camp, Year 9 Journey Camp, Year 10 Experience, Year 11 Ski Trip, 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 - Grandparent’s and Special Friends Day, College Fete, Old Scholar Reunions, Year 12 Formal

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Teacher Standards and QualificationsAll 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 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 HeldCertificate 5Certificate III 2Certificate IV 7Graduate Certificate 7Diploma 22Associate Diploma 1Graduate Diploma 26Bachelor of Applied Science 4Bachelor of Arts 17Bachelor of Design 1Bachelor of Education 49

Qualification Number HeldBachelor of Mathematical Science 1Bachelor of Music 3Bachelor of Performing Arts 1Bachelor of Science 15Bachelor of Special Education 1Bachelor of Teaching 2Bachelor of Urban and Regional Planning 1Bachelor of Visual Communications 1Honours 12Masters 8PhD 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• 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.

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Workforce CompositionIn 2013 the College had the following composition of staff to support the students in their learning:

TeachersFemales: 19 Full Time and 23 Part Time, totalling 42 staff or 33.4 full time equivalents.Males: 28 Full Time and 5 Part Time, totalling 33 staff or 31.4 full time equivalents.

Non-TeachingFemales: 1 Full Time and 31 Part Time, totalling 32 staff or 20.4 full time equivalents.Males: 10 Full Time and 7 Part Time, totalling 18 staff or 12.7 full time equivalents.

In total the College had 124 staff which represented 97.9 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 64.8 full time equivalent teaching staff members employed at the College. During 2013, two teaching staff members retired from the College, giving us a retention rate of 97%.

Student AttendanceThe 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 2013 the average student attendance rate was 97% and this is represented in the following table by year level:

# Days # School Possible Days @ Year Level Absent # Students Days Days School AttendanceYear 8 1,381 145 187 27,115 25,734 94.9% Year 9 1,902 158 187 29,546 27,644 93.6% Year 10 2,052 154 187 28,798 26,746 92.9% Year 11 1,518 148.2 182 26,972 25,454 94.4% Year 12 1,565 137 157 21,509 19,944 92.7% Totals 8,418 742.2 133,940 125,522 93.7%

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.

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Senior Secondary Outcomes132 out of 134 Year 12 students (98.5%) completed their SACE in 2013 (compared to 93.6% for the State). Students studied subjects from the 27 different Stage 2 subjects offered in 2013.

22% of students received an ATAR of 90 or above while 41% of students achieved an ATAR of 80 or above. Thirteen students obtain an ATAR above 95.

The average ATAR was 72.6. The highest student’s ATAR in 2013 was 99.7. 121 students had a combination of SACE subjects that entitled them to receive an ATAR. One hundred students applied to university for courses, with a mean applicant ATAR of 76.9.

In the grades, 23% of grades were As (compared to 20% in the state) while 72% were As or Bs (compared to 62.7% across the state). In 2013, nine A+ Merit awards were granted.

In Year 10, 100% of students successfully completed the initial component of their SACE, Personal Learning Plan.

Student Outcomes in Standardised National Literacy & Numeracy TestingIn May 2013, the National Assessment Program for Literacy and Numeracy (NAPLAN) tests were completed by students in Years 3, 5, 7 & 9. This is an annual Federal Government requirement. Students at Cornerstone in Year 9 completed five assessments in the areas of Numeracy, Reading, Writing, Spelling and Language Conventions.

The table shows the percentage of students in Year 9 at Cornerstone in 2013 that performed at or above the National Standard:

Persuasive Grammar andYear 9 Reading Writing Spelling Punctuation NumeracyCornerstone 99% 91% 99% 96% 96%SA State 93% 82% 91% 88% 90%

The table shows the mean NAPLAN results in Year 9 at Cornerstone in 2013 compared to SA and Australian mean scores.

Persuasive Grammar andYear 9 Reading Writing Spelling Punctuation NumeracyCornerstone 599.1 568.9 595.0 599.1 579.7South Australia 576.7 550.8 577.5 568.8 571.7Australia 580.4 553.9 582.7 572.9 583.7

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Parent, Student and Teacher Satisfaction with the CollegeIn May 2013, the College took part in its third bi-annual survey entitled the Better Schools Project. The project commenced in 2009 and is a longitudinal study focused on assisting the Lutheran Schools celebrate success and build on levels of excellence in terms of teaching and learning, spiritual guidance and the wellbeing of staff, students and parents.

Staff and students completed their survey online using an electronic web based system and the parents completed a paper based form with the option of completing it online. A total of 74 staff, 35 students and 13 parents completed the survey.

The Better Schools Survey results provided information about the culture of our College. The four key pillars of culture as assessed in the survey are:

• Empathy: the extent to which leaders understand the needs of staff members• Clarity: the extent to which staff members have a sense of purpose and know what is expected of

them• Engagement: the extent to which staff members collaborate, share ideas and solve problems

together, leading to a shared understanding and alignment of team goals • Learning: the extent to which staff members feel their efforts are being recognised and their

capability is being developed through appropriate learning and development opportunities

The survey results provided the College with in excess of fifty indicators whereby we were able to celebrate the successes of many areas of the College, and it also highlighted areas for development.

The areas of celebration include:Students – connectedness to school, purposeful teaching, student motivation, student safety, classroom behaviourParents – parent input, reporting, homework, stimulating learning, student motivation, classroom behaviourStaff – school morale, student behaviour, student management, focus on student wellbeing

The opportunities for development include:Students – stimulating learning, learning confidenceParents – extra-curricular, transitionsStaff – work demands, teamwork

The College will review those areas that require development and incorporate action into the strategic plan to ensure improvements are made over the next 24 months.

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Post School DestinationsOf the 100 students that applied to SATAC for tertiary courses - in the first round of offers, 78% were offered their first preference at university, while 85% were offered their first or second preference.

Offers were made in many areas including Speech Pathology, Paramedics, Medicine, Occupational Therapy, Law, Engineering, Visual Communications and Media degrees, Teaching, Nursing, Veterinary Studies, Science, Business, Commerce, Languages, International Studies, Civil Aviation, Sports & Recreation and Arts.

As part of their SACE, sixteen students completed Vocational Certificates 3. This included certificates in Christian Ministry and Theology, Aged Care, and Sport and Recreation. Fifty students completed some units towards a vocational certificate as part of completing SACE. These will be recognised as completed units at TAFE and other providers if the students pursue further study in that area. Two students undertook Australian School-Based Apprenticeships as part of their SACE.

SATAC TAFE offers were made in areas such as Drama, Design, Outdoor Recreation, Children Services, Film Studies and Business Studies. The majority of SATAC applications were for university. 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.

College Income Broken Down by Funding SourceThe College receives its income through several sources and these are represented under in order of value for 2013:

Fees $5,991,670Commonwealth Grants $5,296,644State Grants $1,140,035Building Fund Donations $375,697Other Income $338,372Other Grants $129,790Facilities Hire/Fundraising $139,517Total Income 2013 $13,411,725

Fees

Commonwealth Grants

State Grants

Building Fund Donations

Other Income

Other Grants

Facilities Hire/Fundraising

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Annual Report 2013Cornerstone is focused on providing students with the opportunity to develop a personal relationship with Jesus, and to strive for personal excellence, learning and responsibility for life. There are ten core values often used to encapsulate the essence of Lutheran Education – one of these is quality. Throughout 2013 a concerted effort was made to ensure that the ten core values were outworked in the teaching and learning at Cornerstone and one such value that received added attention and exposure was ‘Quality’.

The following is a definition of quality, as stated in the Lutheran Education Australia publication, ‘A vision for learners and learning in Lutheran schools’.

“Quality is about people bringing their gifts, abilities, skills and talents to fruition seeking excellence, striving always to do their best, giving careful attention to every task, every relationship, and every interaction. They ensure that their input and efforts result in quality outcomes that, in turn, lead to the successful use of their gifts, abilities, skills and talents for the benefit of others.”

As individual creations of God, we all have different and varied gifts, abilities, skills and talents. At Cornerstone, we endeavour to provide opportunities so that all students can grow and shine with the quality they have within.

At the end of this year, the College farewelled Mrs Shirley Schubert, Mrs Maria Mattsson and Ms Bree Burrett.• Shirley Schubert retired from her role as College Counsellor after having dedicated 18 years to the

College• Maria Mattsson retired from her role as College Program Co-ordinator and SACE Co-ordinator with

21 years of service to the College• Bree Burrett resigned from her role as Student Receptionist having been at the College for 6 ½

years. The College wished Shirley and Maria every blessing as they entered the next phase of their lives and Bree and her family as they relocated to northern New South Wales for a lifestyle change.

In 2014, the LSA (Lutheran Schools Association), along with all Lutheran schools and kindergartens, will celebrate 175 years of Lutheran Education in South Australia. The Lutheran Schools Association provides support, encouragement and leadership for school communities as they fulfil their educational responsibilities within the context of Christian ministry. A number of events have been planned to reflect upon, reminisce and celebrate this joint journey. At the heart of this journey have been the love, guidance, support and grace of God, providing an ongoing central focus for all our contemplations and decision-making. The qualities and attributes developed in students are as important as their skills and talents. In Lutheran Schools, we want our students to be:• self-directed, insightful investigators and learners• discerning, resourceful problem solvers and implementers• adept, creative producers and contributors• open, responsive communicators and facilitators• principled, resilient leaders and collaborators• caring, steadfast supporters and advocates.

Also in 2014, Cornerstone College will enter into its 25th year of partnering with families in the learning, growth and development of their children and will celebrate this during 2015. Cornerstone College continues to be part of a broad Lutheran educational community, nurturing young people of quality and character and providing them with an opportunity to have an ongoing connection with the life and love of Jesus. As you read this report, may you continue to be inspired and reminded of the learning that takes place at Cornerstone and the many ways this is displayed in and through our community.

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New beginningsMinistry 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))

We thank God for the many blessings he continues to pour out on our community and the wonderful atmosphere his love and mercy creates within Cornerstone College. Pastoral Care and the wellbeing of students is central to the College. We believe that the vertical Home Group structure which underpins our Pastoral Care is the most effective arrangement for our students.

In anticipation of the addition of Year 7 students at Cornerstone and the change towards ‘Middle School’ (Years 7, 8 & 9) and ‘Senior School’ (Years 10, 11 & 12), the College retained the current system of four Houses (Aroona, Battunga, Moorak and Naturi) but set in place plans to increase the number of Home Groups in each House. The new structure has six Middle School Home Groups and six Senior School Home Groups which are paired, eg Aroona 1 (Middle School) and Aroona 1 (Senior School). In preparation for this restructure the Home Groups being redistributed did not receive any new Year 8 students in 2013. Staff House Leaders were instrumental in leading the changes to our Home Group Structure.

Two new positions were created and appointments made – Leanne Filmer as Middle School Wellbeing Leader and Justin Kerber as Senior School Wellbeing Leader. The roles of Assistant Wellbeing Director were incorporated into these positions.

Pastor David Christian served the College as Acting College Pastor in Term 1 and 2 prior to the installation of Pastor Albert Gast in Term 3. College Chaplain Adam Yeager capably continued as a major support for the ministry program during this time, and took on a number of tasks beyond his regular call of duty. In particular, the Passion Meditation performance was a significant ministry to the Year 12 students as they presented to the wider student body, parents and the Adelaide Hills Lutheran Youth.

The Vetamorphus program continued to build in strength with 15 more students involved in 2013. This has been a great blessing to the individual students, the College and to the wider church, as students engaged in being discipled through the Vetamorphus curriculum. Staff and students participated in a number of congregational visits to churches in the Adelaide Hills, and Pastor Albert Gast began a re-invigorated initiative with LEAH schools, taking chapel as well as the graduation service for St Mark’s at Mt Barker.

The preparation and formation of staff for teaching at Cornerstone is an ongoing ministry. While this year no new staff undertook the first phase of the program (Pathways – Spiritual), 9 other staff commenced the second phase of the program (Pathways – Theological), completing three of the seven sessions, and 12 staff completed the Pathways Vocational training conducted at the Lutheran Schools Association. All staff participated in our mid-year spiritual development program which had a focus on personal faith journeys, led by Pastor Bob Kempe. The latter parts of the year included planning for important changes to the worship life of the school in 2014, with adjustments to chapel structures that will allow for dynamic new ways of delivering the Gospel to students and staff at Cornerstone. With Christ as our firm foundation, Cornerstone continues to have a strong sense of God’s presence. We thank God for all that he has done and all that he continues to do for us, in us and through us.

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Infrastructure: (the wider College infrastructure that provides the foundation and direction for all that transpires within the College)

2013 saw the release of the College’s strategic direction for the next five years which has been documented in the form of a Strategic Plan. The plan is a compilation of thoughts, dreams and innovations from the College community, which the College council and staff look forward to delivering on the recommendations. An extract of the aims of the college and the major strategic objectives are listed below:

Our AimsAs a caring Christian community we aim to equip young people for time and eternity, by nurturing within them a growing relationship with Christ, and by developing the individual gifts and abilities God has given them.More specifically, the College aims to:• provide opportunities for the development of faith in Christ in each student• equip young Christians for a useful and dedicated life of service in their congregation, church or

community• help students develop values, attitudes and relationships that flow from their Christian faith• provide a balanced College program which caters for the needs, abilities and interests of all students• encourage students to strive for excellence in learning according to individual ability• serve the country by providing it with responsible citizens equipped to contribute positively to its well-

being; and• be open to all members of the local community.

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

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Learning: (the dynamic and innovative provision of quality education to grow and develop the individual giftedness of students.)

A key focus for the College into the next years is to continue to “Enhance the levels of challenge and achievement in student learning across all year levels”. Discussions in 2013 at Curriculum Committee and with the Key Learning Area Leaders initially focused on defining clearly what we mean by excellence. It was agreed that the focus on individual excellence is crucial to our philosophical approach to learning at Cornerstone. An initiative promoting students doing and being their best was Above and Beyond, a new segment at whole school assemblies. Current students and old scholars that were achieving their best in their studies, career, community or personal pursuits have been invited to speak to students about what they are doing and to encourage students to make the best of their abilities and to pursue their dreams. This has been a popular segment, and well-received in the College community, and it will continue in 2014. The focus on learning will be further enhanced with the appointment of the Senior School Learning Leader, Ms Michelle Richards, starting in 2014.

Another key focus has been the next stage of planning for the arrival of Year 7. With Paideia, the new Middle School building, taking shape in the College, planning continued for the curriculum, developed across all areas by teams of teachers in each KLA. This Year 7 Curricula was approved by the SA Registration Board mid-year. A team of Year 7 teachers were employed mid-year and although continuing employment elsewhere in 2013, this team met on weekends and in holidays at a series of planning days to undertake the initial work for the Year 7 programme based on the approved KLA curriculum documents. Further planning included timetabling, staffing of subjects, Year 7 and 8 camp plans, Paideia building refinements, planning for special timetable weeks and co-curricular considerations. Many staff contributed to these plans, but significant work was undertaken by Mr Matt Pearce as the new Middle School Learning Leader who started his role in 2013. He was assisted in Semester 2 by Mrs Leanne Filmer as she started her role as Middle School Wellbeing Leader in a part-time capacity, with her role fully undertaken in 2014.

Staff understanding and development of skills for teaching in the Middle school was further enhanced by a very successful Middle School Professional Learning Day mid-year. The day focused on learning by participation, collaboration, choice and practise. Staff were able to participate in a variety of activities via ‘Expert’ presentations, online resources, group activities, blogs, individual reading and discussions. Having contributed to the design of the new centre in Paideia, the Adaptive Education team continued their planning for resources and new programmes that would be run in the new purpose-built centre. Recommendations from the 2011 Adaptive Education Review have been incorporated into the new building. Resourcing and furniture for the new centre, including the Sensory Room, was planned through

In Term 1 the College received notification from the Minister for Education and Child Development that our application for State Government funding for Year 7 students to commence at Cornerstone in 2014 had been successful. This was followed by the Registrar for Non-Government Schools accepting the College’s application to extend its educational offering to include Year 7s which provides Federal Government funds for the additional students.

Progress has continued with the review of College policies, procedures and guidelines and this is an ongoing task that the Senior Leadership Team will continue to focus on throughout 2014. Likewise the ‘treatment plans’ that emerged from the College Risk Management Audit are also progressing with many new controls being implemented to eliminate or minimise the possible impact should an issue arise. The planning and preparation towards the refinement of a Middle School / Senior School teaching philosophy and the infrastructure required to support another 150 students was delivered and concluded late in the year. The College is well prepared to welcome the new students and families into the community and look forward to seeing the years of planning and development come to life with the introduction of the Year 7s. It is with much anticipation that we look forward to 2014 with a new middle school / senior school structure, new students, families and staff and continued momentum towards outworking the strategic vision and direction of the College.

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2013. The sensory room is designed specifically to support students with learning needs, particularly those with autism, in an environment that meets their needs through the look, feel and staff support it will provide. To further extend students that are looking for greater challenge in their studies, Stretch was developed online using the digital tool Edmodo. Students identified as benefiting from Stretch were invited to participate in this Edmodo programme and could elect to participate in a number of extension activities. Students are supported in this programme by the Adaptive Education Gifted and Talented teacher.

In the Digital Technologies area, significant time was spent planning the infrastructure for Paideia. Along with this was the investigation of the best tool for the new students to use. Tablet devices were selected as the best way forward, offering greater flexibility for students while still having sufficient capacity to allow a range of learning functions to be undertaken. These devices were delivered by a POD (parent-owned device) programme with services to the family via outsourced providers. The management of imaging and administration of the delivery by an outsourced provider released the Digital Technologies team to focus on further developing education services to the college. Time was also invested into investigating a suitable Learning Management System to enhance the delivery of the curriculum digitally as well as future plans to provide parent access to digital classrooms, online reporting and parent portal. Plans are in place for initial stages of this implementation in 2014.

Vocational Pathways continue to provide alternative pathways for students that find more traditional academic subjects more challenging. Students are able to prepare for their career and begin vocational qualifications while still at school. This included four students that undertook Australian School Based Apprenticeships (ASBA). In 2013, planning began for the replacement of the current Certificate 2 Pathways to Fitness course to a full Certificate 3 in Fitness. Students are further supported by relevant subjects such as Workplace Practices and development of some Stage 1 subjects in Year 10. Other flexible learning options, such as Community Learning and Recognition of Self-directed Learning, continue to provide alternative pathways for achieving SACE.

The Resource Centre team continues to develop the focus of this space on learning support with new flexible learning zones being designed and installed. Across the College, learning has shifted from a more traditional reliance on books to a much wider variety of resources. Anakalypsi has become a centre of learning rather than just a place to get books. Middle School students continue to learn about Inquiry Based Learning and the skills needed to analyse and evaluate a wider range of learning resources while staying safe in a cyberspace environment. Anakalypsi and the resource centre staff continue to provide essential support for students, particularly in Year 12, given the independent research foci of Stage 2 Research Project, as well as other Stage 2 subject major assessments. Students still enjoy reading books and planning in 2013 focused on providing students and staff with the best resources to support learning for the new Year 7s. The library intranet has been significantly developed to enhance the delivery of resources to students and staff. Further service was provided through the provision of outreach programs including book clubs, reader guidance, literature talks and promotions and lunchtime activities.

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Staff Professional LearningStaff at Cornerstone are more engaged and responsive to programs established to develop them professionally. To facilitate quality learning, staff members need to first be learners themselves.

The newly published 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 the participation of the Deputy Principal and the Human Resources Coordinator, Cornerstone College has continued to make a significant contribution to the Lutheran Schools Association’s systemic approach to integrating the Standards and implementing a Teacher Performance and Development Framework into the schools. The tailoring of an industry Human Resources package from Halogen has required high input from key staff at Cornerstone with a pilot being established in a number of schools in the latter part of the year. Initial challenges almost led to a cancellation of the project but recent developments and an extension of the pilot program have increased optimism.

The Professional Learning Program for teaching staff continued, with the Personal Project being a key feature for the Year A group and now is embedded in the culture of Cornerstone. An expo of projects at the end of the year was again embraced by staff with some presentations being recorded as videos. 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• enabled staff to learn from each other.

An additional initiative based on the premise that the most effective learning by staff occurs through peer collaboration focused on classroom observation. In groups of three, teachers were given the freedom to collaboratively decide on an area of teaching and learning which would be their focus. The groups were determined on the basis of common students taught so that teachers could observe ‘their’ students in other learning environments. After observing each other over a two week period, the group then met to discuss the outcomes of their observations.

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.

Professional learning of all staff was targeted to their agreed learning goals and key performance indicators for the year.

For non-teaching staff, all have clear key performance indicators and their line managers are equipped to review their development and growth at an end of year review.

Cornerstone College is recognised throughout the independent school system as a leader in staff development and learning. In August the Deputy Principal was asked to present a workshop at an AISSA event where he shared the initiatives that the College has established. Colleagues from a number of schools have visited and sought advice, ideas or resources to grow programs in their schools.

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Support Services: (the provision of relevant services that support the effective operation of the College in its focus as a place of learning)

There has been a strategic focus on assisting the teachers to spend as much of their time on student teaching and learning by providing administrative support. This has seen the number of support staff hours, applied to key learning areas, steadily increase to achieve this objective. As the College considered the support staffing levels to accommodate the new middle school / senior school philosophy, a conservative approach was taken to allow time to monitor where the needs and priorities. The administrative and secretarial support for both schools will be assessed throughout 2014.

The support functions within the College consist of the following departments or areas:• Faculty Support • Marketing• Administration • Facilities• Student Services • Digital Technologies• Human Resources • Adaptive Education• Finance • Library• Canteen

Each year we endeavour to improve the performance of each department and area and the initiatives and achievements adopted in 2013 are summarised below:• Construction of Paideia and the surrounding projects such as the playground, colonnade, Paideia

Plaza, Paideia Green, cover over the hard court and the extension of the technology centre.• The financial performance of cibo bello has improved, enhanced by providing lunch time catering

(once per week) for St Mark’s Lutheran School • Reduction of electricity use and carbon emissions due to the installation of more energy efficient

lighting• Digital Technologies explored the option of ‘Bring Your own Device’ for students• Adaptive Education continue to provide support services to a greater number of students and moved

into their new purpose built facility late in the year• Internal renovations and improvements to ‘Anakalypsi’ • New events including: Year 8 welcome barbecue, Breakfast with the Birds at Purtinga, community

connection at Mt Barker Central, Stirling, Lobethal Lutheran Easter Fair and Meadows Fair• Digital information sign installed on the College exit road• Partnerships established with Urban Myth Theatre Company and Penny Lane Market which allowed

many people to experience the grounds and facilities of the College • The facilities hire program within the College continued to expand with 57 hirers for the year

consisting of 22 new organisations introduced to the College• New facility provided for the Parent, Teachers and Friends second hand uniform shop• New room numbering system adopted throughout the College to improve ‘way finding’ for students,

parents and visitors

Providing an outstanding service to the Cornerstone community is the aim of the support services team and this has been achieved to a greater level in 2013. The quality of staff and the unity of the departments is what allows the support network for the College to function seamlessly. Their willingness to assist wherever possible and provide a ‘can do’ attitude at all times is what has established this positive culture and delivers a great experience to parents, students, staff and the greater College community. “As each has received a gift, use it to serve one another, as good stewards of God’s varied grace”1 Peter 4:10.

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Council Chair Report2013 was a year of change across most aspects of College life. Certainly another milestone in our history in many respects. We have been truly blessed when we look at what has been achieved over 25 years. It would be interesting to ask the founding group that dreamed of a Christian secondary school in the hills some 30 years ago if they would have conceived how far we as a community have come. We give praise and thanks for their foresight and God-given dream!

In the past few years, meticulous planning and abounding energy have been rallied to ensure the development and implementation of our exceptional new middle school facility.

The way forward is not without its challenges, not least the financial implications of our recent development. So much now rests on managing the cash flow and budget as we navigate our way through this new and exciting time.

Considerable effort has also been expended in the following areas (non-exhaustive): enrolment sustainability across all year levels, value for money and competitive fees, improved multiple sibling discounts, limiting the building fund donation per family, outworking the Lutheran Education Adelaide Hills strategy to promote a systemic education, defining and refining what is good governance and the review of the College Constitution to reflect best corporate practice.

I would like to take this opportunity, on behalf of the College Council and wider College community, to thank the Senior Leadership Team, others in positions of responsibility, teaching, administration and support staff, and those not mentioned that have selflessly contributed under Principal Craig Fielke’s fine leadership. A sincere thankyou!

During the year a considerable amount of grounds and infrastructure development was undertaken. A special mention must be made of the grounds maintenance staff under Denis Wiencke’s leadership for their outstanding effort. Through considerable planning and a determination to deliver an outstanding facility and environment, the middle school facility ‘Paideia’ was delivered in readiness for 2014 with real cost savings. We are truly blessed by this team’s dedication and skills.

Thankyou also to those involved on Council and Council Sub-Committees for your generous support and efforts throughout the year, it is greatly appreciated.

In 2013 we welcomed Pastor Albert Gast to our community and farewelled Maria Mattsson, Shirley Schubert and Bree Burrett. Maria and Shirley served the College for many years and Bree as student receptionist were a blessing to the students and the wider College community. We also farewelled Tom Mead, Jenny Altmann and Brian Jaensch from College Council after many years of service.

In closing, I would like to thank God for His ongoing and steadfast presence through the life of the College in 2013. God bless and in His service!

Eric BeamesChair of College Council

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Report of the Council Members31 December 2013

Cornerstone College Inc.

The Council Members present their report on the financial statements of the College for the year ended 31 December 2013.

Council membersThe names of Council Members throughout the year and at the date of this report are:Eric Beames (Chairman) Rob Zadow Brian Jaensch Elizabeth Francis Jenny Altmann (Retired November 2013)

Ron Hogg Tom Mead (Retired July 2013) Michael ShearerAndre KleiningShane Paterson

Advisory Members Craig Fielke (Principal) Carl Hollsten (Business Manager)Pastor Albert Gast (College Pastor) Observer Rob Rohde (Deputy Principal)

Principal activitiesThe principal continuing activities of the College are to provide secondary education for approximately 750 students. Significant changesNo significant change in the nature of these activities of the College occurred during the year.

Operating resultThe surplus of the College for the year after non operating income amounted to $10,305 (2012 deficit:$(219,976)).

Events after the reporting dateNo 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.

Council Members benefitsIn accordance with section 35(5) of the Associations Incorporation Act 1985, the Council Members of Cornerstone College Inc. hereby state that during the financial year ended 31 December 2013:(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.

Signed in accordance with a resolution of Council Members:

Council Member: ............................................... Council Member: ...............................................

Dated this 24th day of March 2014

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Statement of Profit or Loss and Other Comprehensive IncomeFor the Year Ended 31 December 2013


2013 2012Note $ $

Revenue 2 13,014,537 12,401,005Employee benefits expense (9,607,903) (9,296,157)Depreciation and amortisation expense (516,220) (645,555)Finance costs (568,541) (367,391)Other expenses (2,708,758) (2,680,524)Net (deficit) from ordinary activities attributable to the College (386,885) (588,622)Non operating income 2 397,190 368,646Surplus / (deficit) after Non operating income 10,305 (219,976)Other comprehensive income for the year - -Total comprehensive income for the year 10,305 (219,976)

The accompanying notes form part of these financial statements.

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Statement of Financial PositionAs at 31 December 2013



2013 2012Note $ $

ASSETSCURRENT ASSETSCash and cash equivalents 4 140,334 105,542Trade and other receivables 5 963,639 602,766Inventories 6 2,566 2,831Prepayments 7 49,164 122,164TOTAL CURRENT ASSETS 1,155,703 833,303NON CURRENT ASSETSProperty, plant and equipment 8 33,578,648 26,022,324TOTAL NON CURRENT ASSETS 33,578,648 26,022,324TOTAL ASSETS 34,734,351 26,855,627LIABILITIESCURRENT LIABILITIESTrade and other payables 9 4,344,672 2,648,410Financial liabilities 10 1,716,379 326,704Employee benefits 11 1,901,169 1,679,084TOTAL CURRENT LIABILITIES 7,962,220 4,654,198NON CURRENT LIABILITIESFinancial liabilities 10 12,191,764 7,699,419Employee benefits 11 153,492 85,440TOTAL NON CURRENT LIABILITIES 12,345,256 7,784,859TOTAL LIABILITIES 20,307,476 12,439,057NET ASSETS 14,426,875 14,416,570

MEMBERS' FUNDSCapital reserve 12 2,130,774 2,130,774Asset revaluation reserve 12 5,660,795 5,660,795Accumulated surplus 6,635,306 6,625,001TOTAL MEMBERS' EQUITY 14,426,875 14,416,570

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Statement of Changes in EquityFor the Year Ended 31 December 2013



2013Accumulated

surplusCapital reserve

Asset revaluation

reserve Total$ $ $ $

Balance at 1 January 2013 6,625,001 2,130,774 5,660,795 14,416,570Surplus after non operating income 10,305 - - 10,305Balance at 31 December 2013 6,635,306 2,130,774 5,660,795 14,426,875

2012Accumulated

surplusCapital reserve

Asset revaluation

reserve Total$ $ $ $

Balance at 1 January 2012 6,844,977 2,130,774 5,660,795 14,636,546(Deficit) after non operating income (219,976) - - (219,976)Balance at 31 December 2012 6,625,001 2,130,774 5,660,795 14,416,570

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Statement of Cash FlowsFor the Year Ended 31 December 2013



2013 2012Note $ $

CASH FLOWS FROM OPERATING ACTIVITIES:Government grants 6,566,469 6,162,990Tuition fees 4,845,504 4,669,038Building fund transfers 375,697 342,774Interest received 21,898 20,490Other receipts 1,235,210 1,436,024Payment to suppliers and employees (10,256,997) (11,503,108)Finance costs (568,541) (367,391)Net cash provided by operating activities 13(b) 2,219,240 760,817

CASH FLOWS FROM INVESTING ACTIVITIES:Proceeds from sale of plant and equipment 30,292 62,950Purchase of property, plant and equipment (8,096,760) (2,617,938)Net cash (used in) investing activities (8,066,468) (2,554,988)

CASH FLOWS FROM FINANCING ACTIVITIES:Proceeds from borrowings 6,047,119 1,982,653Proceeds from finance lease 144,043 -Repayment of finance lease (50,985) -Repayment of borrowings (326,704) (563,533)Net cash provided by financing activities 5,813,473 1,419,120

Net (decrease) in cash and cash equivalents held (33,755) (375,051)Cash and cash equivalents at beginning of year 105,542 480,593Cash and cash equivalents at end of financial year 13(a) 71,787 105,542

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Notes to the Financial StatementsFor the Year Ended 31 December 2013


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 Associations Incorporation Act (SA) 1985 and the College’s Constitution. The Council Members have determined that the Association is not a reporting entity.

The financial statements have been prepared on an accruals basis and are based on historic costs and does 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) InventoriesInventories consist of canteen and facility stocks and are measured at the lower of cost and net realisable value. Costs of inventory are assigned on a specific identification basis.

(b) Property, Plant and EquipmentEach class of property, plant and equipment is carried at cost or fair value, less where applicable, any accumulated depreciation.

Cost and ValuationProperty, 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.

DepreciationThe depreciable amount of all assets, excluding freehold land and buildings, are depreciated over their useful lives to the College commencing from the time the asset is held ready for use. No depreciation has been charged against the buildings as the Council has assessed the written down value to be less than the residual value.

Depreciation value is provided on a diminishing value basis on all items of furniture, plant and equipment, 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.

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(b) Property, Plant and Equipment (Cont’d) Major depreciation periods are: Furniture, plant and equipment: 5 to 10 years Library books and teacher resources: 5 years Computers: 3 years Motor Vehicles: 5 years

Land and BuildingsThe 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.

InsuranceAll property, plant and equipment is insured with LCA Property Provident Fund. The replacement cost for insurance purposes is $34,624,338 (2012: $29,990,154).

(c) Investments and other financial assetsInvestments 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 equivalentsCash 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 and bank overdrafts. Bank overdrafts are shown within short term borrowings in current liabilities on the balance sheet.

(e) Trade receivablesTrade 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 benefitsProvision 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.

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

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(f) Employee benefits (Cont’d)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 years’ service), are classified as current liabilities.

Under Clause 86 of the Lutheran Schools Enterprise Agreement 2012, 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 2013 is $1,268,343 (2012: $1,048,168).

(g) Trade and other payablesTrade 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 TaxThe College is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

(i) LeasesLeases 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 incomeRevenue 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.

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.



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(j) Revenue and other income (Cont’d)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 judgmentsThe 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 deficiencyAs at 31 December 2013, the College reported a deficiency in net current assets of $6,806,517 (2012: $3,820,895). 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 2014.

(n) Comparative figuresComparative 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 dependenceThe 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.

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2013 2012 $ $

2 Revenue and Other IncomeRevenue- Fee income (net) 4,982,808 4,770,114- Government grants 6,560,956 6,162,990- Canteen income 173,702 160,422

11,717,466 11,093,526Other revenue- Interest 21,898 20,490- Hire of facilities 93,575 89,534- Other income 1,175,522 1,179,860- Profit on sale of plant and equipment 6,076 17,595

1,297,071 1,307,479Total Revenue 13,014,537 12,401,005

Non operating IncomeBuilding fund donations 375,697 342,774Donations & fundraising 21,493 25,872

397,190 368,646

3 Result for the YearThe result for the year includes the following specific expenses:Annual leave expense 63,442 73,453Auditor's remuneration - Auditing- William Buck 8,500 8,240Bad debts written off/provision for impairment 24,000 24,000Depreciation 516,220 645,555Interest on bank overdraft 17,576 19,782Interest on borrowings and loans 550,965 347,609Long service leave expense 193,220 108,645Rental 12,167 15,600

4 Cash and cash equivalentsCash on hand 650 250Cash at bank WPAC Building Fund 17,607 35Cash at Bank LLL 31717S1 122,077 28,850Cash at Bank Westpac - 76,407

140,334 105,542

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2013 2012 $ $

5 Trade and other receivablesCURRENTSundry debtors - Fees 797,500 522,732Provision for impairment (78,069) (54,069)

719,431 468,663GST receivable 244,208 121,112Sundry debtors - other debtors - 12,991Total current trade and other receivables 963,639 602,766

6 InventoriesCURRENTInventories at cost 2,566 2,831

7 Other non-financial assetsCURRENTPrepayments 49,164 122,164

8 Property, plant and equipmentLAND AND BUILDINGSFreehold landAt independent valuation 30/6/10 1,385,000 1,385,000BuildingsAt independent valuation 30/6/10 18,558,664 18,558,664At cost 7,208,156 740,414

25,766,820 19,299,078ImprovementsAt cost 4,735,744 4,308,279Accumulated depreciation (118,689) (118,689)

4,617,055 4,189,590Total land, buildings and improvements 31,768,875 24,873,668PLANT AND EQUIPMENTFurniture and equipmentAt cost 4,806,016 4,051,209Accumulated depreciation (3,706,048) (3,351,630)

1,099,968 699,579

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2013 2012 $ $

8 Property, plant and equipment (Cont’d)Plant and machineryAt cost 897,599 509,388Accumulated depreciation (345,116) (228,133)

552,483 281,255Motor vehicles 121,112At cost 347,611 325,637Accumulated depreciation (190,289) (157,815)

157,322 167,822Total plant and equipment 1,809,773 1,148,656Total property, plant and equipment 33,578,648 26,022,324

9 Trade and other payablesCURRENTUnsecured liabilitiesTrade payables 1,335,023 123,898Enrolment Deposit 366,450 291,850Fees in advance 2,370,776 1,899,104Other payables 272,423 333,558

4,344,672 2,648,410

10 Financial liabilitiesCURRENTUnsecured liabilities:Lease liability 15 43,126 -Secured liabilities:Bank overdraft 68,547 -Loans - LLL 1,604,706 326,704Total current financial liabilities 1,716,379 326,704NON CURRENTUnsecured liabilities:Lease liability 15 49,932 -Secured liabilities:Loans - LLL 12,141,832 7,699,419Total non current financial liabilities 12,191,764 7,699,419Total borrowings 13,908,143 8,026,123

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2013 2012 $ $

11 Employee BenefitsCURRENTLong service leave 1,114,851 962,728Annual leave 758,338 694,897Study leave 10,377 3,856Sick leave 17,603 17,603

1,901,169 1,679,084NON CURRENTLong service leave 153,492 85,440

12 ReservesAsset revaluation reserveOpening balance 5,660,795 5,660,795Revaluation movement on land & buildings - -

5,660,795 5,660,795Capital reserveOpening balance 2,130,774 2,130,774Transfer (to)/from accumulated surplus - -

2,130,774 2,130,774Total reserves 7,791,569 7,791,569

Asset revaluation reserveThe most recent valuation of land and buildings amounting to $19,774,674, comprises an independent valuation conducted by Valcorp Australia Pty Ltd as at 30 June 2010, on the basis of value in use.

The revaluation increment above original cost amounted to $1,870,670 which was credited to the Asset Revaluation Reserve at 30 June 2010.

13 Cash Flow Information(a) Reconciliation of cash

Cash at the end of the financial year as shown in notes 4 and 10 is reconciled to items in the statement of financial position as follows:Cash and cash equivalents 140,334 105,542Bank overdraft (68,547) -

71,787 105,542

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2013 2012 $ $

13 Cash Flow Information (Cont’d)(b) Reconciliation of result for the year to cashflows from operating activities

Reconciliation of cash flow from operations with deficit for the year:Surplus / (deficit) for the year 10,305 (219,976)Non cash flows in profit:

- depreciation 516,220 645,555 - net gain on disposal of property, plant and equipment

(6,076) (17,595)

Changes in assets and liabilities, net of the effects of purchase and disposal of subsidiaries: - (increase) in trade and other receivables (360,873) (120,740) - decrease/(increase) in inventories 265 (1,057) - decrease/(increase) in other assets 73,000 (65,987) - increase in trade and other payables 1,696,262 410,759 - increase in employee benefits 290,137 129,858Cashflow from operations 2,219,240 760,817

14 Capital CommitmentsContracted CommitmentsCapital expenditure - no later than 1 year - 6,200,000

15 Leasing Commitments

- not later than 1 year 47,881 - - between 1 year and 5 years 51,834 -Minimum lease payments 99,715 -Less: future finance charges (6,657) -Present value of minimum lease payments 93,058 -

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16 Contingencies

Contingent LiabilitiesCornerstone College Inc. had the following contingent liabilities at the end of the reporting period:

Lutheran School AssociationThe 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 GrantsPursuant 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 2013 was $Nil (2012 $Nil). The College Council Members are of the opinion that the College will continue in its current capacity and therefore the liability is unlikely to materialise.

OtherThere were no other contingent liabilities as at 31 December 2013 (2012 $Nil).

17 Events Occurring After the Reporting DateThe financial report was authorised for issue on 24 March 2014 by the Council Members.

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.

18 Remuneration of Council MembersNo amounts were received or are due and receivable by the Council Members of Cornerstone College Inc. during the year ended 31 December 2013 (2012: Nil) with the exception of Advisory Members to the Council who received a salary as employees of the College.

19 College DetailsThe principal place of business of the college is:68 Adelaide RoadMount Barker SA 5251

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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 committee the financial report as set out on pages 3 to 16:

1. Presents fairly the financial position of Cornerstone College Inc. as at 31 December 2013 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 committee by:

Council Member ..................................................... Council Member ....................................................

Dated this 24th day of March 2014

Statement by Council MembersCornerstone College Inc.

34

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

CORNERSTONE COLLEGE INCORPORATED

Report on the Financial Report We have audited the accompanying financial report, being a special purpose financial report of Cornerstone College Incorporated, which comprises the statement of financial position as at 31 December 2013, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the statement by Council Members.

Council’s Responsibility for the Financial Report

The Council of Cornerstone College Incorporated are responsible for the preparation and fair

presentation of the financial report, and have determined that the basis of preparation described

in Note 1, is appropriate to meet the requirements of the Associations Incorporation Act (SA)

1985 and is appropriate to meet the needs of the members. The Council’s responsibility also

includes such internal control as Council determines is necessary to enable the preparation and

fair presentation of a financial report that is free from material misstatement, whether due to

fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We have

conducted our audit in accordance with Australian Auditing Standards. Those standards require

that we comply with relevant ethical requirements relating to audit engagements and plan and

perform the audit to obtain reasonable assurance about 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 judgement,

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 Council, 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.

35


CORNERSTONE COLLEGE INCORPORATED

Report on the Financial Report We have audited the accompanying financial report, being a special purpose financial report of Cornerstone College Incorporated, which comprises the statement of financial position as at 31 December 2013, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the statement by Council Members.

Council’s Responsibility for the Financial Report

The Council of Cornerstone College Incorporated are responsible for the preparation and fair

presentation of the financial report, and have determined that the basis of preparation described

in Note 1, is appropriate to meet the requirements of the Associations Incorporation Act (SA)

1985 and is appropriate to meet the needs of the members. The Council’s responsibility also

includes such internal control as Council determines is necessary to enable the preparation and

fair presentation of a financial report that is free from material misstatement, whether due to

fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We have

conducted our audit in accordance with Australian Auditing Standards. Those standards require

that we comply with relevant ethical requirements relating to audit engagements and plan and

perform the audit to obtain reasonable assurance about 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 judgement,

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 Council, 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.

36


CORNERSTONE COLLEGE INCORPORATED (CONTINUED)

Auditor’s Opinion

In our opinion, the financial report presents fairly, in all material respects, the financial position of

Cornerstone College Incorporated as at 31 December 2013 and of its financial performance and

its cash flows for the year then ended in accordance with the financial reporting requirements of

the Associations Incorporation Act (SA) 1985.

Basis of Accounting

Without modifying our opinion, we draw attention to Note 1 to the financial report, which

describes the basis of accounting. The financial report has been prepared to assist Cornerstone

College Incorporated to meet the requirements of the Associations Incorporation Act (SA) 1985.

As a result, the financial report may not be suitable for another purpose.

William Buck

ABN: 38 280 203 274

G. W. Martinella

Partner

Dated this 24th day of March, 2014.

37


CORNERSTONE COLLEGE INCORPORATED (CONTINUED)

Auditor’s Opinion

In our opinion, the financial report presents fairly, in all material respects, the financial position of

Cornerstone College Incorporated as at 31 December 2013 and of its financial performance and

its cash flows for the year then ended in accordance with the financial reporting requirements of

the Associations Incorporation Act (SA) 1985.

Basis of Accounting

Without modifying our opinion, we draw attention to Note 1 to the financial report, which

describes the basis of accounting. The financial report has been prepared to assist Cornerstone

College Incorporated to meet the requirements of the Associations Incorporation Act (SA) 1985.

As a result, the financial report may not be suitable for another purpose.

William Buck

ABN: 38 280 203 274

G. W. Martinella

Partner

Dated this 24th day of March, 2014.

CONTENTS · Ensemble, Music Camp, Hot House Band, Little Big Band, Music Cabaret, Studio Band,...

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