Introduction Of Sources Of Finance

Published Date: 02 Nov 2017

INTRODUCTION

Task 1

Company Profile

Melaleuca Refugee Centre is a community–controlled, not–for–profit association operating out of Darwin. This association was first established in 1996 as the Torture Trauma Survivors Service of the NT Incorporated to cater for the small numbers of refugees and refuge seekers wanting to settle in the Northern Territory. In 2002, it expanded and became as Melaleuca Refugee Centre Torture Trauma Survivors Service of the NT Incorporated also known as Melaleuca Refugee Centre. Melaleuca Refugee Centre provides early settlement support services to people of refugee background, counseling services and facilitates significant community development programs in the areas of cultural transition, strengthening families and peace leadership.

Introduction of Sources of Finance

A finance source helps an organization meet short-term operating needs, such as paying for costs of materials, salaries and other administrative expenses. Financing also helps senior leadership plan for long-term expansion projects, such as mergers and acquisitions. Sources of finance can be classified into two categories which is internal and external sources. Internal sources are raised from within the organization, and external sources are raised from an outside source. There are 5 internal sources of finance which is owner’s investment, retained profit, sale of stock, sale of fixed asset and debt collection. Where, the external sources of finance include bank loan, additional partners, share issued, mortgage, leasing, hire purchase and government grant.

Sources of Finance of Melaleuca Refugee Centre

Melaleuca Refugee Centre is a not-for-profit organization, so their sources of finance are government grant. Government grant can be defined as payment by the Government towards the cost of local-authority services. These are either for particular purposes or services (specific grants) or to fund local services generally (revenue support grant). The advantage of government grants is the organizations do not need to repay it. The disadvantage is certain conditions may apply and not all businesses may be eligible for a grant. The sources of finance of Melaleuca Refugee Centre include:

Australian Government

Department of Immigration and Citizenship

Department of Health and Ageing

Department of Families, Housing, Community Services and Indigenous Affairs

Northern Government

Department of Children and Families

Department of the Chief Minister, Office of Multicultural Affairs

Department of Justice

Department of Natural Resource, Environment, the Arts and Sport

Foundation

Honda Foundation

 Honda Foundation sponsors vehicle for use by Melaleuca. The foundation pays for the vehicle and servicing. This support demonstrates the Honda Foundation's good corporate citizenship and community support and is very much appreciated by all at Melaleuca.

Deckchair Cinema

Task 2

Impact of Finance on Financial Statement

Vision and Mission

A vision statement looks into the future at least five years and defines a desired future state of the company where, a mission statement defines what a company currently does, and how it plans to achieve its vision. The vision statement of Melaleuca Refugee Centre is ‘Melaleuca Refugee Centre is recognized as a leader in facilitating the recovery of refugee survivors of Torture and Trauma’. Their mission statement is ‘Melaleuca Refugee Centre 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’.

Aim

Melaleuca Refugee Centre aims to achieve its mission by providing ethical, client focused services and referrals to refugee survivors, their families and communities in a climate of empowerment and self determination. It’s promoting community awareness regarding issues for refugee survivors and involvement in activities conducted by the Centre by individuals, families, organizations and the wider community. It’s aims to creating and maintaining a sustainable and respectful organization that values all stakeholders including employees, volunteers and the Management Committee. Melaleuca Refugee Centre provided culturally sensitive opportunities for client involvement in service development and strategic involvement in local, Territory and National networks.

Responsibility of Committee of Management

Melaleuca Refugee Centre has a Committee of Management (COM), which the members are responsible for the preparation of the financial report. The Committee of Management’s responsibility include such internal control as the Committee determines is necessary to enable the preparation of financial report that is free from material misstatement, whether due to fraud or error. Currently, the Finance Manager of Melaleuca Refugee Centre is Peter Trayte and the Finance Assistant is Emma Cameron.

Task 3

Profitability Ratio

 

Year 2011

Year 2012

Net Surplus Margin

 

Net Surplus

 

Net Surplus

 

Sales

 

Sales

 

 

=

755,436

 

=

937,325

 

 

4,375,160

 

5,090,820

 

 

=

0.17:01

 

=

0.18:01

 

 

 

 

Return on Total Assets

 

Surplus available to common shareholders

 

Surplus available to common shareholders

 

 

 

 

 

Total Assets

 

Total Assets

 

 

=

0

 

=

0

 

 

1,542,283

 

2,572,861

 

 

=

0:01

 

=

0:01

 

 

 

 

Return on Equity

 

Surplus available to common shareholders

 

Surplus available to common shareholders

 

 

 

 

 

Equity

 

Equity

 

 

=

0

 

=

0

 

 

949,757

 

1,887,070

 

 

=

0:01

 

=

0:01

 

 

 

 

Gross Surplus Margin

 

Gross Surplus

 

Gross Surplus

 

 

Sales

 

Sales

 

 

=

0

 

=

0

 

 

4,375,160

 

5,090,820

 

 

=

0:01

 

=

0:01

 

 

 

 

Table 1 (Value extract from Appendix a & b)

Liquidity Ratio

 

 

Year 2011

 

 

Year 2012

 

Current Ratio

 

Current Asset

 

Current Asset

 

 

Current Liabilities

 

Current Liabilities

 

 

=

1,516,902

 

=

2,568,059

 

 

592,538

 

1,887,070

 

 

=

2.56:01

 

=

1.36:01

 

 

 

 

Quick Ratio

 

Current Asset-Inventories-Prepayment

 

Current Asset-Inventories-Prepayment

 

 

 

 

 

Current Liabilities

 

Current Liabilities

 

 

=

1,516,902

 

=

2,568,059

 

 

592,538

 

1,887,070

 

 

=

2.56:01

 

=

1.36:01

 

 

 

 

Table 2 (Value extract from Appendix a & b)

Table 1 show the profitability ratio of Melaleuca Refugee Centre. Profitability ratio measure a company’s ability to generate earnings relative to sales, assets and equity. These ratios assess the ability of a company to generate earnings, profits and cash flows relative to relative to some metric, often the amount of money invested (ReadyRatio.com, 2013). The Net Surplus Margin for year 2011 and 2012 is 0.17:01 and 0.18:01. Value of 0.17 and 0.18 represent the net surplus and value 1 represent the sales of Melaleuca Refugee Centre. This means that their net profit of year 2012 is higher than year 2011. The increases of donation and supporter might be one of the reasons for the differences of income for year 2011 and 2012.

Return on total asset also known as return on asset (ROA) and is an indicator of how profitable a company is relative to its total assets. Surplus on total assets gives an idea as to how efficient management is at using its assets to generate earnings (INVESTOPEDIA, 2013). Because of Melaleuca Refugee Centre do not have any common shareholders, the ratio for return on total assets for year 2011 and 2012 is same, 0:01. Value of 0 represents the surplus available to common shareholders of Melaleuca Refugee Centre and value 1 representing the total assets.

Return on Equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. Because of Melaleuca Refugee Centre do not have any common shareholders, so the ratio of surplus on equity for these 2 years is same as return on total assets, is 0:01. Value 1 was representing the equity and value 0 representing surplus of Melaleuca Refugee Centre.

Gross Surplus Margin for year 2011 and 2012 is same, both is 0:01. The sales are 1 and the gross surplus is 0 for the both year 2011 and 2012. This means that there is no gross surplus for this organization. So, we can say that there is no gross surplus margin for this organization.

Table 2 on above has shown the liquidity ratio of Melaleuca Refugee Centre for year 2011 and 2012. Liquidity ratio is a class of financial metrics that is used to determine a company's ability to pay off its short-terms debts obligations. Current ratio is the ratio of current assets of a business to its current liabilities. It is the most important and widely used test of liquidity of a business. The current ratio of Melaleuca Refugee Centre for year 2011 is 2.56:01, where for year 2012 is 1.36:01. The value of 2.56 and 1.36 represent current assets and 01 represent current liabilities. This mean that Melaleuca Refugee Centre have higher liquidity of money in year 2011 compare to year 2012 to cover their debts in next 12 month.

Quick ratio also known as acid test ratio and it measures the ability of a company to pay its debts by using its cash and near cash current assets. Quick ratio is the ratio of Current Asset minus inventories minus prepayment to the current liabilities to the business. The quick ratio for year 2011 is 2.56:01; for year 2012 is 1.36:01. The ratio of quick ratio for year 2011 and 2012 is same to the current ratio for year 2011 and 2012. This is because there are no available of inventories and prepayment in year 2011 and 2012.

In conclusion, although Melaleuca Refugee Centre do not have any surplus in year 2011 and 2012, but they still able to cover their debt in the next 12 month.

Task 4

Introduction to Business Environment of Melaleuca Refugee Centre

Melaleuca Refugee Centre has successfully reached and implements a new Enterprise Agreement with staff and their union, which the overwhelming majority of staff supported. This was approved by Fair Work Australia in February 2012. Committee of Management (COM) members also participated in governance training workshop in February 2012 to expand their knowledge on legal obligations of committee member and good governance practices. The COM is currently working in collaboration with key stakeholders and staff on the next strategic plan for the organization to set the direction for the short to medium term. Melaleuca Refugee Centre was recognized for its volunteer program by Volunteering SA-NT and was awarded the 2012 for ‘Organizational Excellency – Large Organization’.

Event held by Melaleuca Refugee Centre

In year 2012, Melaleuca Refugee Centre was held 5 events. The past event includes Darwin World Refugee Day Festival "Restoring Hope" on 16 June 2012, Deckchair Film Fundraiser for Melaleuca on 26 July 2012, Working for Peace One Day on 20 September 2012, Annual General Meeting on 27 September 2012 and International Human Rights Day 10 December 2012. The 2012 Annual General Meeting (AGM) of Melaleuca Refugee Centre was held on Thursday 27 September 2012 at Melaleuca Refugee Centre. The Committee of Management members for 2012/2013 were elected. 

In year 2013, "OzFusion" - Multicultural Australia Day has been held. OzFusion 2013 multicultural Australia Day was a resounding success with around 600 attending. This was the first time Melaleuca was involved in this high profile event. Their clients were engaged in all aspects of the day and it was a great opportunity to meet other multicultural groups. 

Referral and Services

Melaleuca Refugee Centre provides early settlement support services to people who have refugee background. They offer a uniquely integrated approach by hosting a range of services and programs under the same roof. These services include counseling and advocacy, early settlement support and community development.

Counseling and Advocacy

The counseling team at Melaleuca Refugee Centre provided support, counseling and advocacy services to refugee background’s individuals and their families. People who experienced torture and trauma before coming to Australia might continue to suffer from effects of the extended exposure to human rights abuses, violence, war and physical hardship. Melaleuca recognizes the pre-migration experiences and the process of resettlement are important to psychosocial well being. Melaleuca offers initial counseling upon arrival and long term counseling for those individuals or families in need. The counseling and Advocacy Services provided include:

Intensive Family Support Services (IFS)

Torture and Trauma Counseling (Detention) (T&T)

Program of Assistance to Survivors of Torture and Trauma (PASTT client referral)

Melaleuca Refugee Centre is one of the members of The Forum of Australian Services for Survivors of Torture and Trauma (FASSTT). When their clients are ready for counseling or other interventions, they can refer to Melaleuca at any time, whether they are new arrived or have been in Australia for many years. The interventions may be in short, medium or long-term which is depending on the client’s needs and process of recovery.

Newly Arrived Youth Support Services and Youth Program (YOUTH)

Melaleuca’s youth program provides a multi-function program, offering a holistic, timely and culturally appropriate service to young people’s refugee and migration background from 12 to 21 years old. The youth program under RECONNECT supports young people who are at risk of homelessness and enhances refugee youth engagement with family, training, education and community. The youth team collaborates with other agencies to facilitate new networks for young people and provide them with important social connections and extra support.

Early Settlement Support

Melaleuca provides settlement services under the Humanitarian Settlement Services (HSS) program for people granted permanent Australian residency as Humanitarian entrants and for people on Bridging Visas assessed for settlement services. Melaleuca assists people arriving in Darwin on the offshore and onshore humanitarian programs to ensure their initial settlement support needs are met. Melaleuca combines components of voluntary and professional services to approximately 557 new arrivals each year, offering a uniquely integrated approach addressing settlement needs by hosting a range of services and programs under the same roof.

Community Development

Melaleuca Refugee Centre delivers a range of community development programs underpinned by the key principles and values of Community Development which is education, democracy, advocacy, participation, and strategies of community empowerment and strengthening that build up social and community capacity. Community Development accepts the impact of torture and state-sanctioned violence may result in disbelieve and conflict and then aims to build social cohesion and strength. It links the community with others in collaborative partnerships and empowers individuals and communities who are particularly disadvantaged within the resettlement country. The Community Development Programs include:

Families in Cultural Transition (FICT)

Families in Cultural Transition (FICT) Program is a series of workshops for those who have met their initial basic needs and now face the challenge of settling into a vastly different culture. Participants find out about Australian culture and systems, identify their own cultural strengths, explore the effect of trauma and change and learn where to get help. It builds on existing strengths and skills, gives concrete information and helps people make friends and connect with community groups. 

Tips & Ideas on Parenting Skills (TIPS)

Melaleuca Refugee Centre has offered TIPS which is a parenting program to refugee families that have been living in Darwin for over 12 months and usually have completed the Families in Cultural Transition (FICT) Program offered to newly arrived refugee families. The TIPS Program at Melaleuca Refugee Centre is funded by the Northern Territory Department of Children & Families. 

Alternatives to Violence (AVP)

Community Liaison, Training and Education

Refugee Support Network (RSN).

Forum of Australian Services for Survivors of Torture and Trauma (FASSTT)

The Forum of Australian Services for Survivors of Torture and Trauma (FASSTT) is a network of Australia's eight specialist rehabilitation agencies that work with survivors of torture and trauma who have come to Australia from overseas. The eight specialist rehabilitation agencies in the FASSTT network offer direct services which include psychological assessments, individual psycho-therapeutic interventions, youth activities, group and family therapy, natural therapies and community development to survivors of torture and trauma, their families and communities. FASSTT members also provide innovative and effective services to ensure the Australian community can play a significant role in diminishing the impact of torture on survivors and enhancing their opportunities to rebuild productive and meaningful lives.

Management and Staff

Melaleuca Refugee Centre has a community-based Committee of Management (COM), which appoints the Director to manage the day-to-day operations of the organization. The Committee of Management and staff of Melaleuca have a legal and moral responsibility to manage the organization in the best interests of the community it serves. Committee of Management and staff demonstrate professional ethical behavior at all times in their responsibilities to the organization in their professional relationships with each other. Committee of Management is responsible o monitor the performance and management of the organization. Committee of Management is elected from and by Associate Members of the organization and is responsible for setting strategic directions.

CONCLUSION

BIBLIOGRAPHY

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