The Melaleuca Refugee Centre

Published Date: 02 Nov 2017

According to Ingram, from website Small Business.Chron, What Is the Meaning of Business Finance, Finance is a management of money and all the valuable assets by a company or business. For the students the finance will teach in schools is accounting methods, strategy of investment and flexible to manage the debt. Small business also need to have a finance programs, it will maintain the business profitability.

2.1 Melaleuca Refugee Centre

According to Melaleuca Refugee Centre official website Melaleuca.org.au, Melaleuca Refugee Centre full name is Melaleuca Refugee Centre Torture Trauma Survivors Service of the NT Incorporated is a group are community–controlled and non - profit association operating out of Darwin. Melaleuca Refugee Centre are started by 1996, but the time the name are they using is Torture Trauma Survivors Service of the NT Incorporated, they set up this group is because of want to solve the problem of refugees and asylum seekers in the Northern Territory. At 2002 they develop this group and change the name become Melaleuca Refugee Centre Torture Trauma Survivors Service of the NT Incorporated (Melaleuca Refugee Centre).

Vision of Melaleuca Refugee Centre is recognised as a leader in facilitating the recovery of refugee survivors of Torture and Trauma.

Mission of Melaleuca Refugee Centre is provides an environment for resettlement and healing of refugee survivors of torture and trauma, their families and community through confidential, high-quality and holistic services.

2.2 Source of Finance

Source of finance is the way for an organization to improve their finance, its have many type but is depend of the organizations, every different organizations will have the different source of finance. Putting and savings money to a business are the obvious way of the source of finance. The large organizations have more type of source of finance to let they choose, but the small business are have very less choices, generally source of finance of small business use are borrow from family or friends. Show that, if a large organization issuing their share, generally they will have a lot of different shareholders, research by website Business Case Studies, Sources of Finance. Then by during other research from website DineshBakshi, Source of Finance, source of finance have slotted to two types, internal and external. Internal is money raised from inside the business. It includes sales of assets, retained profits, reduction in working capital, and etc. External is the money raised from outside the business. It includes bank overdraft, trade credit, leasing, long term bank loan, issue of share, and etc.

For Melaleuca Refugee Centre, they source of finance will have some different because they are non – profit organization. According to Ingram, from website Small Business.Chron, they mention the main income for non – profit organizations is from the external source like the money by people donate, all the activities will be cover by the money. The fundraising is very important for a non – profit organizations, because this will decide the growth and the duration of the organization. Except the traditional source of finance like the donation by individual or institutional, now days other organization also can take advantage of creative financing solutions for non – profit organizations, such as earned income ventures and cause marketing partnerships.

2.3 Short Term of Financing

Short term finance is a finance planning to cover the financial of a business in a period of time, generally short term finance are not more than one year. Showing by website DineshBakshi, Source of Finance, bank overdrafts and trade credit are the short term finance. Bank overdraft is devices are providing by the bank to giving to the business customers and the people are having current account. Bank overdraft is devices that can let a person’s bank account to become and get the greater value by the balance by the account. To get the bank overdraft is need to get approve by the bank manager, bank will specify a limit for the amount are can overdraw of the account. By using a bank overdraft, there will be advantages such as there is no need for mortgages, making it safer and more flexible where the overdraft amount can be adjusted every month according to needs of the user. There disadvantages that are also present such as the interest rates which are changeable and much higher than bank loans hence making cash flow problems to happen when the bank asks for the overdraft to be repaid by the borrower in a short notice.

The second of short term finance is trade credit, this is the way are always the businessman using to delay or extent the payment of the purchase by dealing with the supplier is the buyer in a certain time. Generally, trade credit can delay or extent the payment by 1 week to 90 days and depend on the business and industry type. There are certain advantages of using trade credit such as there will be no interest charged and this allows the buyers no need to pay the additional charge. The disadvantage to trade credit is that the businessman will not be entitled to receive or get a cash discounts and the benefit of the lower prices.

(By delaying the payment of bills for goods or services received, a business is, in effect, obtaining finance which can be used for more important expenditures.)

2.4 Medium Term of Financing

Medium term finance is the financial plan will during the period by 1 year until 5 year, but this is depend of the contract of the organization. Normally, medium terms of finance are use in purchase of assets such as the machinery that will be used for production and the office equipments such as printers and fax machines. A medium-term financing can be such as the forms of hire-purchasing and leasing, where hire-purchase is where an asset is purchase of an asset where the payment of the asset will be made over a long period of time and in instalments, while leasing is the method of using the asset without even purchasing the asset, but just renting the asset such as a building or a machinery. The advantages by using this tpe of financing is that a company is able to use the asset without needing to buy it while the disadvantage is that the cost of leasing an asset will be more expensive than actually buying the asset straightaway.

2.5 Long Term of Financing

According Aashwin (2006), from website Bized, Long Term Sources of Finance, Long term of finance is a loan are have a longer period of time, normally are more than a year. For apply the long term finance is need to show the growth of finance project for the organization, it have to links at a big project and big funds. Examples of long term financing are such as the form of long term bank loans and issue of shares. Long term bank loan is a financing which involves borrowing money from the bank and paying interest to the bank for a fixed period of time. The issues of shares are a source of finance which permanent but are only available to private-limited companies where they can sell more shares to existing shareholders. The advantages to this form of finance is that this is a form of permanent capital source and the dividend will only needed to pay if there is profit. On the other hand, the dividends that is needed to be paid to the existing shareholders is a disadvantage to this form of financing.

3.0 Financial Planning

Financial Planning is a process that is carried out by companies or organizations to estimate the capital that the company needs and how it determine its competition. Besides that, financial planning focuses on creating financial policies which is related to activities such as procurement, administration and investment of financial funds of a company.

3.1 Important of Financial Planning

Financial planning is important is because it can make sure an organization have enough capital to continue and keep the profitability of the organization, it also can effective to make an investment. The process of financial planning is developing the objectives, policies, procedures, programmes, and budget about the financial performance are concerned in the market. The importance points are that there must first be adequate funds have to be ensured, and that there will be a reasonable balance between outflow and inflow of funds to ensure and maintain the stability of a company. Next, Financial Planning makes sure that the suppliers of funds can be investing into the companies which are practicing financial planning. In addition to that, Financial Planning plays a role in the making of growth and expansion programmes which in turn helps in the long-run survival of a company by reducing the numbers of uncertainties faced in regards to the changes in the market trends which might become a hindrance to the growth of the company, hence it ensures the stability and profitability in concern of the company.

4.0 Accounting Ratio

Accounting ratios is a useful device, it can help an organization to find out and identify the financial situation and performance, and this will make the organization easy to compare them with other competitions. Then, accounting ratio also will show the profit of the organizations in financial report and ratio analysis; it will decide the future of the organization.

4.1 Profitability

Ratio with formula

Ratio calculation for ended 20 June 2011

Ratio calculation for year ended 30 June 2012

1. Profit margin on

sales

Net income available to common stockholder x 100

Net sales value

755436 x 100

3538040

= 21.35%

937325 x 100

3584143

=26.15%

2. Return on total

Assets

Net income available to common stockholders x100

Total assets

755436 x100

1542283

=48.98%

937325 x 100

2572861

=36.43%

3. Return on common equity

Net income available to common stockholder x100

Common equity

755436 x 100

949745

= 79.54%

937325 x 100

1887070

=49.67%

4.2 Liquidity

Ratio with formula

Ratio calculation for year ended 30 June 2011

Ratio calculation for year ended 30 June 2012

1. Current ratio

Current assets

Current liabilities

1516902 x 100

592538

=2.56 : 1

2568059 x100

685791

=3.74 :1

2. Acid-test ratio

Liquid assets

Current liabilities

1516902 x 100

592538

=2.56 : 1

2568059 x100

685791

=3.74 :1

3. Debtor ratio

Debtor

Credit sales

648449

3538040

=0.18:1

741110

3584143

= 0.21 :1

4. Day sales outstanding

Debtor x365

Credit sales

0.18x 365

=65.78 days

0.21x365

=76.65days

5. Creditor ratio

Creditor

Credit purchase

191856

482097

=0.40 :1

206062

393394

=0.52:1

6. Creditor payment

Creditor ratio x365

Credit purchase

0.40x365

=146days

0.52x365

=189.8days

4.3 Comparison between profitability and liquidity

4.3.1 Profitability:

The Profit margin on sales of Melaleuca Refugee Centre are based on the calculation showing at 2011 is 21.35% and 2012 is 26.15%, this show that The Profit margin on sales of Melaleuca Refugee Centre are increase 4.8% in 2012. Higher profit margin measures the length of the profits earned by the company where the sales are made, and also depends on the efficiently of the company is in control of expenditure. At 2012, Melaleuca Refugee Centre is earning higher profits compared to last year from a sale made, it can be seen that the company has the right plan that allows it to effectively control expenses, interest expense, incurring lower operating expenses and lower interest costs contributing to increased profits.

After that, the Return on total assets (ROA) of Melaleuca Refugee Centre is decrease from 2011 is 48.98% to 2012 is 36.43%. Then they Return on Common Equity (ROE) also decrease but this is more severe than ROA from 2011 is 79.54% decrease to 2012 is 49.67%. The cause for the lower profit reflected in the return on total assets and return on equity of the company, it may be due to the use of ineffective and inefficient use of capital assets and business performance at a higher cost resulting in a decline in total production and total sales, then this income affect overall profitability.

4.3.2 Liquidity

Liquidity is an assets or securities are can doing transaction in the market, this are easy to accept by public, it also call liquid assets. From 2011 to 2012 the current assets and aids test ratio of Melaleuca Refugee Centre have a slowly increase by 2.56: 1 to 3.74: 1. In fact, the company's financial position and liquidity will allow the use of current assets to be used for current liabilities. Therefore by increasing the ratio of the two, the company will need to have a larger amount of current assets that can be used to manage current liabilities, allowing it to be financially stable and to fund long - term liabilities.

High ratio of the debtor and the debtor can pay the company still has a much longer credit that allows the debtor owes, and may result in a longer time taken by the company to collect money from debtors slowly. As a result, it can be caused by raising money to create or lack of money from a large debt balance that leads to lack of money to repay liabilities and short-term financial problems. By comparing the debtor ratio and the days of sale outstanding of the two year are also show increase, from 2011 to 2012 is 0.03: 1 ratio and 10.87 days respectively. Debtor ratio is used to measure the amount of debt collected from credit sales and the time period for the company to collect money from debtors.

On the other hand, the higher the ratio the creditor and creditor payments over time, the company will be able to hold a longer credit period to pay back debts and creditors. In addition, credit times again allow the company the ability to collect a larger amount and there is no need for the company to repay the debt in a short period to prevent short-term financial problems. The creditor ratio and creditor payment of this showing little bit of increase from 2011 to 2012. The development of creditor ratio and creditor payment is from 0.42: to 0.52:1 and also the increase in the daily payment from 146 days to 189.8 days in the years 2011 and 2012 correspondingly.

5.0 Business Environments

Melaleuca Refugee Centre’s business environment is links to the suppliers, customers, employees, government agencies, financial institution like banks and the people in public.

5.1 Funding Bodies

Australian Government department are become the partner of Melaleuca Refugee Centre have Immigration and Citizenship, Health and Ageing, Families, Housing, Community Services and Indigenous Affairs. Then, Northern Government are also join to become a partner of Melaleuca Refugee Centre, they are have Department of Children and Families, Northern Government, Department of the Chief Minister, Office of Multicultural Affairs, Department of Justice, Department of Natural Resource, Environment, the Arts and Sport.

5.2 Youth Support Services

Melaleuca youth programs provide multi-functional program, which offers a comprehensive, timely and culturally appropriate services to young refugee and immigrant background aged 12 to 21 years. Youth programs under reconnect support young people at risk of homelessness and increase family involvement with refugee youth, education, training and community. Youth team collaborated with other agencies to facilitate new network for young people and provide them with important social connections and additional support.

5.3 PASTT Client Referral

Melaleuca Refugee Centre is a member of The Forum of Australian Services for Survivors of Torture and Trauma (FASSTT). Consultation and ready to intervene at any time and can recommend Melaleuca and they just arrived in Australia for several years have been the case. Intervention may be short, medium or long-term depending on customer needs and process recovery. References formally assessed and if accepted, the customer can be seen immediately or put on a waiting list managed. Anyone can refer someone to Melaleuca (eg HSS providers, schools, doctors or the client itself). Melaleuca counseling services using professional interpreters when needed and is free, confidential and voluntary.

5.4 Management & Staff

Melaleuca Management Committee and staff have a legal responsibility and moral duty to manage Melaleuca in the interest of the community it serves. The Management Committee and staff demonstrate professional conduct at all times in their responsibilities to the organization in their professional relationships with each other, and their professional service to the community. The number of employees is in different Melaleuca relation to the center of the program cycle. Though, for the accomplishment will have 40 staff is working of the days.

5.5 Education & Training Program

Melaleuca Refugee Centre offers professional development training of staff and volunteers who work in various government and non-governmental organizations to respond effectively to people sensitive and refugee backgrounds. Workshops and presentations are relevant to people who sometimes work with refugee backgrounds as well as those who work on a regular basis.

5.6 Training Requests

Depending on the availability of resources, Melaleuca employees are able to visit your organization and deliver customized training to meet your needs in regards to working with refugee backgrounds. Some examples of training areas including mental health issues, counseling deliberate, working with children, working with youth, and the effects of torture and trauma. All free practice sessions unless negotiated.

Recent training sessions have been provided to the Charles Darwin University, Centrelink, Kormilda College, Sanderson Middle School and St John Ambulance.

5.7 Volunteering with Melaleuca Refugee Centre

If anyone is interested to be part of a team that is dynamic, diverse, fun and motivated, then volunteer at Melaleuca Refugee Centre. Volunteers play a valuable role in providing social support to individuals and families who have recently arrived refugees. Throughout the program, volunteers are matched to a particular household (family or individual) for a period of six months. Staff and volunteers work together to build the capacity of these people, providing them with the skills to understand and enjoy their new life, to empower newcomers. All volunteers inducted and fully supported by the volunteer coordinator at Melaleuca Refugee Centre. The most important requirement for volunteers have the time. Volunteers are asked to commit to the entire period of four to six months. When this period ends, volunteers can choose to be a break or support another household for a period of six months. Contact volunteer coordinator for any questions about the program or for more information about Melaleuca Refugee Centre.