KU Annual Report 2015 | Page 40

KU Financial Report 15. Fundraising Reserve 2015 2014 $ $ Balance at beginning of financial year 1,233,992 1,254,771 Transfer (from)/to general funds (29,828) (20,779) Balance at end of financial year 1,204,164 1,233,992 The fundraising reserve arises from the accumulated efforts of parents and staff to allow services to purchase optional toys and equipment, to assist the service to expand and develop to meet local needs and to allow parents to share in the life of the service and to make a concrete contribution to their children’s lives. Further notes on fundraising are set out in Note 23. 16. Program Reserve Balance at beginning of financial year 1,015,000 850,000 Transfer from general funds 50,000 165,000 Balance at end of financial year 1,065,000 1,015,000 The Program reserve relates to reserves set aside by the Company related to the programs. This reserve will be utilised for potential future commitments on this program which the Program owner is not contractually bound to meet. 17. Commitments for Expenditure Operating Leases Leasing arrangements Operating leases relate to centre facilities and computer leases. KU does not have an option to purchase the leased assets at the expiry of the lease period. A number of the leases were reclassified as finance leases in 2013 and are disclosed in note 11. Non-cancellable operating lease payments Not longer than 1 year Longer than 1 year and not longer than 5 years Longer than 5 years 1,436,374 1,789,156 80,728 3,306,258 1,461,193 2,639,724 85,418 4,186,335 191,291 5,000 191,291 5,000 4,796 15,400 216,487 196,291 18. Contingent Liabilities Bank Guarantee 22 October 1998 to Commonwealth Bank Guarantee 31 January 1995 to Sydney City Council Bank Guarantee 21 January 2014 to Central Coast Regional Development Corporation Bank Guarantee 30 April 2015 to Marrickville Council Mortgage and facilities The National Australia Bank currently holds a mortgage over 129 York Street, Sydney which is their security over the $1.2m market rate facility. This remains undrawn as at 31 December 2015. 120th Annual Report 2015