2022 Unity Bank Annual Report
strength in unity
ANNUAL REPORT
Grow | Resilient | Trust | Accountable | Authentic
Unity Bank Annual Report 2022 | A
Unity Bank Limited. ABN 11 087 650 315 AFSL/Australian Credit Licence 240399.
Our Vision The lifelong financial prosperity, security and dignity of our Members. Our Mission Unity Bank is Member Owned. We are committed to our Members . . . workers, their families and the communities we serve. Our values are built on the principles of cooperation, mutuality and unity of purpose, carrying forward the vision of our Founders. We always stand by our Members.
Unity Bank Annual Report 2022 | B
Contents
Chair’s Report
2 5 6 7 8 9
Our Values
Our Executive Management Team
Supporting Our Community Snapshot - Financial Year
Directors’ Report
Financial Performance Disclosures
14 16 17 20 24 25 26 27 28
Directors’ Declaration
Independent Auditor’s Report Corporate Governance Statement Financials Statement of Comprehensive Income
Statement of Financial Position
Statement of Changes in Member Equity
Statement of Cash Flows
Notes to the Financial Statements
Unity Bank Annual Report 2022 | 1
Chair’s Report
I am pleased to report that your Bank has continued to perform strongly over the year, adding further to the range, relevance and value of services available to Members and their families. Throughout we have remained firm in our commitment to Members and to the Values we uphold, notwithstanding the often difficult operating backdrop. The past 12 months have yet again proved challenging for many Australians. Further lockdowns and health effects from the Covid virus and the general shortage of skilled workers impacted everyone. Pleasingly, society has learned to live with Covid and whilst there have been sporadic impacts on our operations, primarily through staff absences, we have largely been able to continue to provide uninterrupted services to members. Our Covid relief package was yet again available to any member who required assistance, however there were fewer requests than in previous years as the economic impacts were not as far reaching over the last 12 months. Unfortunately, natural disasters occur frequently in Australia and Unity Bank has always assisted in helping people and communities in their time of need. This year we formalised our assistance with our Community Support package which can help members with loan relief, emergency funds and tailored solutions to help them get back on their feet as quickly as possible. There were further improvements to our products and services during the year as we upgraded our banking app with enhanced functionality, better security and an overall richer user experience. We also invested in advanced fraud detection systems and additional fraud management staff so that we can provide members with better
protection from the ever-increasing levels of sophisticated fraud that is confronting the community. We all know the big challenges facing young people, single parent families and others who are trying to break into the home ownership market. This year Unity Bank designed and released a special package for first home buyers to help contain the cost and bridge the deposit gap. Working with the National Housing Finance Investment Corporation, we were also pleased to have been selected as one of only 5 lenders added to the authorised lending panel for the Federal Government’s First Home Guarantee and Family Home Guarantee (for single parent families) schemes. Under these Schemes, eligible members can purchase homes starting with as little as 2% deposit for eligible single parent families and 5% for eligible first home buyers without the need to pay for the usual mortgage insurance, which saves members tens of thousands of dollars. In combination, these initiatives are opening the opportunity of more affordable home ownership to more members. Combined with our new, simpler and more competitive range of home loan products and our unwavering focus on our members, we are now able to offer an even more compelling banking alternative to our competitors. This has translated into a record year in 2021/22 with our loans exceeding $1,109m up 7.5%. We assisted nearly 2,000 members with their loans and approved a record $357m in new funds. Thank you to all those members who gave us the opportunity to assist with their aspirations and dreams. Shortly we will be rolling out a new digital lending platform which will provide members with a better member experience, quicker
2 | Unity Bank Annual Report 2022
decisions and allow us to use the latest technologies to streamline our processes. Combined with our ever-expanding network of mobile relationship managers and our expert branch lending specialists, we are confident that we will be able to assist even more members over the coming years. For the first time in 12 years, the Reserve Bank of Australia increased interest rates. Although loan interest rates are still low by historical standards, rate increases are still a new experience for many borrowers. Our members are well placed to meet the higher repayments having built up substantial levels of savings and additional repayments over previous years. However, should borrowers ever be experiencing financial stress from these increases, or any other factors, they are always encouraged to talk to us at an early stage so we can work with them and explore all options to assist and help manage through this period. The Russian invasion of Ukraine is having a devastating effect on the population of Ukraine and our thoughts are with those impacted by this needless war. Credit unions operate throughout
Ukraine, with a considerable number located in those areas directly impacted by the war and occupation. The World Council of Credit Unions has launched a fund-raising campaign to assist Ukrainian credit unions keep their operations going so that they can help their members with reconstruction, access to their savings and provision of loans to farmers to assist with easing food shortages. We are proud to stand with our Ukrainian comrades and have made a donation of UD$15,000 to assist with the effort. The Board This year, the Board saw the retirement of director Raad Richards after 21 years of dedicated service to the former Bankstown City Credit Union and Unity Bank. Raad has been a great director over the years providing wise input to the wide range of regulatory requirements and commercial challenges. We wish him well.
Unity Bank Annual Report 2022 | 3
As detailed in the Corporate Governance Statement later in the Annual Report, the Board’s primary role is to oversee the strategic direction and operational performance of the Bank to enhance and protect long-term member value. To do this, it requires directors with the right mix of skills, experience and judgment combined with a commitment to ensuring members best interests are paramount to any decision. The complexity of the operating environment, expectations from regulators, greater time and training demands and the need for directors with specialist skills such as cyber risk, IT, project management and banking experience makes it imperative that the Board continues to evolve, as it has over the past 52 years. Part of this evolution involves the extension of the term of the Board appointed director Darren Gossling (who brings specialist cyber security and IT skills), for a further 3-year term. In addition, Joanne Masters was appointed to our Board to bolster our marketing, communications, and project management expertise. Welcome Joanne and we look forward to your contribution to our success. At the 2021 AGM, members approved an increase in the pool of funds available to remunerate directors. Director remuneration is benchmarked against the median level for similar sized mutual banks and credit unions. While we have been below the median level for the past decade, we anticipated modest increases over several years would bring us closer to the median. However it is apparent that gap is significantly growing, and the pool will be insufficient past 2023. Therefore, we will be assessing the situation further over the next 12 months with a probability that we will be asking members to approve an increase in the pool of funds at the 2023 AGM. Key Partnerships The partnerships and relationships we have developed over decades, as well as more
recently, are vital to our success today and into the future. No words can thank enough our long time industrial partners of the Maritime Union of Australia, the Mining and Energy Union and the ETU; our new and growing relationships with the AMIEU, CEPU and AMWU; our key industry super funds of Maritime Super/HostPlus and Mine Super; and local councils, small business groups and community organisations. You give us immeasurable and invaluable support and we are proud to be able to continue to work with you to support your members and communities. Our Staff During the year, our staff helped us define and express our Values outlined on the adjacent page of our Annual Report. Our Values are what we stand for and define the way we deliver better outcomes for our members. We are guided by them in everything we do and every decision we make. I am pleased to say that none of these Values are new to us, as we have lived and breathed them from the outset 52 years ago. Our staff are the best in the business and is what makes Unity so unique. There have been times during the year where we have been short staffed due to difficulty filling vacant positions, due to increased levels of sick leave through Covid and other ailments, and due to the higher volume of new business. However, our Staff’s focus on our members’ needs has been unwavering and is a testament to their professionalism, commitment and belief that our collective efforts can make a significant improvement to the lives of our members. Thank you and I know from feedback, that our members really appreciate and see the difference you make.
Mick Doleman Chair
4 | Unity Bank Annual Report 2022
Grow
Resilient
We are strong and adaptable in times of adversity and change
We will invest in growing together for our future
Our Values Our Values are what we stand for. We need to be guided by them in everything we do.
Authentic We are real, genuine and can be relied upon
Trust
We build a culture of
trust by being open, honest and fair
Accountable
We own our words, actions and behaviours to achieve mutual success
Unity Bank Annual Report 2022 | 5
Our Executive Management Team
Chief Executive Officer Danny Pavisic
Chief Risk Officer Kellie Tait
General Manager, Strategy & Marketing John Levis
General Manager, Sales & Service David Gilbert
General Manager, Business Banking Steve Vassallo
Chief Financial Officer Kyri Karagiannis
Chief Information Officer David Willcox
General Manager, Products & Process Improvement Felicity King
Head of People & Culture Faye Fleming
Executive Manager, Operations Graham Burt
Darren Hooper
Anita Schut
General Manager, Victoria
Company Secretary
6 | Unity Bank Annual Report 2022
We always look for ways we can help and support the communities we serve. Having a strong sense of social responsibility is central to our business philosophy through providing meaningful and relevant contributions to our communities. We love doing what we can for a range of different events, charities, organisations and causes and look forward to continuing this work into the new year. Supporting Our Community
Panthers Super Clinic
ChromeFest
AMWU Conference
MUA Veterans Bowls Day
Miners Memorial Day
MUA Working Waves
Collie Show
Central Coast Regional Show
May Day Mackay
Canterbury Bankstown Chamber of Commerce Gala Dinner
MUA Wharf Picnic Day Melbourne
Royal Bathurst Show
Unity Bank Annual Report 2022 | 7
Snapshot 2021/2022 Financial Year
$ 1,096,315,099 in member loans
15.31 % capital adequacy
39,550 members
$ 218,075 sponsorship & donations
Loans ($m)
Loans ($m) Total Assets ($m)
$900 $1,000 $1,100 $1,200
Total Assets ($m)
$1,122
Loans ($m)
$1,122
$1,600
$600 $700 $800 $800 $1,000 $900 $1,000 $1,100 $1,200 $1,200 $1,400 $1,600
Total Assets ($m)
$1,044
$1,122
$1,027
$1,600
$995
$900 $1,000 $1,100 $1,200
$1,400
$1,122
$1,600
$1,044
$1,027
$847 $900
$995
$1,400
$1,044
$1,027
$995
$1,200
$1,400
$847 $900
$600 $700 $800
$847 $900
$1,200
$673
$1,000
$1,200
$621
$600 $700 $800
$673
$1,000
$800
$673
$621
$1,000
$1,341
$1,506 $1,584
$815 $871 $1,055 $1,087 $1,220
$500
$621
+$501m +81%
$800
$600
$1,341
$1,506 $1,584
$815 $871 $1,055 $1,087 $1,220
$500 $600
$800
+$501m +81% +$769m +94%
$400
$1,341
$1,506 $1,584
$815 $871 $1,055 $1,087 $1,220
$600
$500
+$769m +94%
+$501m +81%
$300
$400
$400 $400
$600
2015 2016 2017 2018 2019 2020
2021
2022
+$769m +94%
2022
2015
2016
2017
2018
2019
2020
2021
2022
$400
$300
$400
Third Party Originated - Off Bal Sheet
P2P Originated
On Balance Sheet
Integris - Off Bal Sheet
P Originated
2015 2016 2017 2018 2019 2020
2021
2022
2015
2016
2017
2018
2019
2020
2021
2022
$300
$400
Integris - Off Bal Sheet 2015 2016 2017 2018 2019 2020 Third Party Originated - Off Bal Sheet
P2P Originated 2021
2022
2015
2016
2017
2018
2019
2020
2021
2022
On Balance Sheet
Third Party Originated - Off Bal Sheet
P2P Originated
On Balance Sheet
Integris - Off Bal Sheet
Capital Core Ratio (Retained Earnings & Reserves)
Deposits ($m) Capital Core Ratio (Retained Earnings & Reserves)
Capital Core Ratio (Retained Earnings & Reserves)
10.00% 11.00% 12.00% 13.00% 14.00% 15.00% 16.00% 17.00% 18.00% 19.00%
Deposits ($m)
$400 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% 16.00% 17.00% 18.00% 19.00% $600 $800
$1,400
Deposits ($m)
10.00% 11.00% 12.00% 13.00% 14.00% 15.00% 16.00% 17.00% 18.00% 19.00%
$1,400
$200 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% 16.00% 17.00% 18.00% 19.00% $400 $600 $800 $1,000 $1,200
$1,400
$1,200
$1,200
$1,000
$1,000
16.2%
15.2% 15.3%
15.8% 16.2% 16.4% 17.2% 16.5%
$719 $775 $936 $977 $1,098
$1,182 $1,189 $1,301
$1,301
16.2%
15.2% 15.3%
15.8% 16.2% 16.4% 17.2% 16.5%
$800
+$582m +81% 15.8% 16.2% 16.4% 17.2% 16.5%
$719 $775 $936 $977 $1,098
$1,182 $1,189 $1,301
-3.2%
16.2%
15.2% 15.3%
$719 $775 $936 $977 $1,098
$1,182 $1,189 $1,301
$600
+$582m +81%
-3.2%
+$582m +81% 2019 2018
-3.2%
2015
2016
2017
2018
2019
2020
2021
2022
2022
2015
2016
2017
2020
2021
2022
$400
$200
2015
2016
2017
2018
2019
2020
2021
2022
2015
2016
2017
2018
2019
2020
2021
2022
$200
2015
2016
2017
2018
2019
2020
2021
2022
2015
2016
2017
2018
2019
2020
2021
2022
8 | Unity Bank Annual Report 2022
Your Directors present their report on Unity Bank Limited (the Company) and its controlled entities (the Group), together with the Financial Statements for the financial year ended 30 June 2022. The Bank is a company registered under the Corporations Act 2001. Directors’ Report
Information on Directors The names of the Directors in office at any time during or since the end of the year are:
MICHAEL DOLEMAN Chair Experience:
Chair, Unity Bank since 2010 Director of Unity Bank since September 1999 Former Director, Australian Diver Accreditation Scheme Former Director, Maritime Super SUA Official 1984 - 1993 Former Director, Seacare Authority Former Director, Transport & Logistics Industry Council Former Deputy National Secretary of MUA Chair, Melbourne Seafarers Centre
Committees:
Member, Audit Committee Member, Risk Committee Chair, Remuneration Committee
Chair, Director Nominations Committee Chair, Corporate Governance Committee
MARK WATSON Director Experience:
Director of Unity Bank since September 2012 Director of Auscoal Superannuation Pty Ltd, as trustee for the Mine Superannuation Fund since July 2013 Director of Mine Super Services Pty Ltd (formerly Auscoal Services Pty Ltd) since July 2013 CFO, CFMEU Mining & Energy National Office since March 2005 Bachelor of Commerce Member, Institute of CAANZ Graduate, Australian Institute of Company Directors
Qualifications:
Chair, Audit Committee Member, Risk Committee Member, Remuneration Committee
Committees:
Unity Bank Annual Report 2022 | 9
Directors’ Report
DARREN GOSSLING Director Experience:
Director of Unity Bank since June 2017 Chair and Director of Motorcycling NSW since December 2021 Former Deputy Chair of Bankstown City Credit Union Ltd 2010 - 2017 Former Director of Bankstown City Credit Union Ltd 2001 - 2017 Former Chair, Risk Committee Bankstown City Credit Union Managing Partner and Director Rohling International Pty Ltd.
Qualifications:
MBA - Marketing & Global Strategy Bachelor of Engineering - Computer Systems and Telecommunications Graduate, Australia Institute of Company Directors
Committees:
Chair, Risk Committee Member, Audit Committee Member, Remuneration Committee
MICH-ELLE MYERS Director Experience:
Director of Unity Bank since November 2013 Vice President, Australian Labor Party Elected member of MUA National Council 2015 Rank and File Member of the MUA since 1999 National Officer of the MUA since 2009 Member, Director Nominations Committee Member, Corporate Governance Committee
Committees:
10 | Unity Bank Annual Report 2022
Directors’ Report
GRAHAME KELLY Director Experience:
Director of Unity Bank since January 2018 General Secretary with the Construction Forestry Maritime Mining and Energy Union (CFMMEU), Mining and Energy Division since 2017 Director of Auscoal Superannuation Pty Ltd, as trustee for the Mine Super Fund since January 2016 and Chair January 2015 to June 2022 Director of Mine Super Services Pty Ltd (formerly AUSCOAL Services Pty Ltd) since October 2006 Director of the Coal Long Service Leave Funding Corporation since 2018
Committees:
Member, Director Nominations Committee Member, Corporate Governance Committee
GARRY KEANE Director Experience:
Director of Unity Bank since July 2011 Alternate Director of Maritime Super since February 2021 Member of Maritime Union of Australia 1974 - 1993 Former Honorary Deputy Branch Secretary Southern NSW Branch MUA 1998 - 2007 Former Branch Secretary SNSW MUA 2007 - 2020 Former MUA Deputy National Presiding Officer 2015 - 2019
Committees:
Member, Risk Committee Member, Corporate Governance Committee Member, Director Nominations Committee
SHARON SEWELL Director Experience:
Director of Unity Bank since July 2020 Vice President of United Services Union since 2019 Regional Administrator – NSW Teachers Federation
Qualifications:
MBA Bachelor of Social Science
Committees:
Member, Audit Committee from January 2022 Member, Corporate Governance Committee Member, Director Nominations Committee
Unity Bank Annual Report 2022 | 11
Directors’ Report
JOANNE MASTERS Director commenced 24/11/21 Experience:
Director of Unity Bank since November 2021 SAP Master Data Team Lead Information Quality Pty Ltd Former Director Shell Employees Credit Union 1995 - 2016
Qualifications:
Master of Commerce (Marketing) Bachelor of Commerce Diploma of Management Member, Risk Committee Member, Remuneration Committee
Committees:
RAAD RICHARDS Director until 24/11/21 Experience:
Director of Unity Bank since June 2017 Former Chair of Bankstown City Credit Union Ltd 2010 - 2017 Former Deputy Chair of Bankstown City Credit Union Ltd 2003 - 2010 Former Director of Bankstown City Credit Union Ltd 2000 - 2017 Chairman, Creating Links Community Services Ltd. Chairman, Leigh Place Aged Care Ltd. Board Member, Meaningful Ageing Australia
Qualifications:
Graduate Diploma HR and IR Bachelor of Business MHP, AFCHSE, AAIM, MAICD Master of Health Planning (MHP) Member, Audit Committee Member, Remuneration Committee
Committees:
12 | Unity Bank Annual Report 2022
Directors’ Report
Company Secretary The name of the Company Secretary in office at the end of the year is: Name Anita Schut Qualifications
Bachelor of Arts (Asian Studies), Graduate Diploma Personnel Management, Certified Compliance Professional, Member AICD 30+ years management experience in the Financial Services Industry
Experience
Directors’ Meeting Attendances
Director
Board
Audit
Risk
Corporate Governance
H A H A H A
H
A
Michael Doleman
10
9
8
8
6
6
2
1
Mark Watson
10
9
8
8
6
6
Darren Gossling
10
10
8
7
6
6
Mich-Elle Myers
10
9
2
2
Grahame Kelly
10
10
2
2
Garry Keane
10
10
6
6
2
2
Sharon Sewell 2
10
9
4
4
2
2
Joanne Masters 3
6
5
3
2
Raad Richards 1
6
6
3
3
H = Meeting held in the period of Appointment A = Attended 1. Raad Richards tenure completed 24 November 2021. 2. Sharon Sewell appointed to the Audit Committee 27 January 2022. 3. Joanne Masters appointed to the Board 24 November 2021 and appointed to the Risk Committee 27 January 2022.
Directors’ Benefits No Director has received or become entitled to receive during, or since the end of the financial year, a benefit because of a contract made by the Bank, controlled Bank, or a related body corporate with a Director, a firm of which a Director is a member or a Bank in which a Director has a substantial financial interest, other than that disclosed in Note 38 of the financial report. Indemnifying Officer or Auditor Insurance premiums have been paid to insure each of the Directors and officers of the Bank against any costs and expenses incurred by them in defending any legal proceeding arising out of their conduct while acting in their capacity as an officer of the Bank. In accordance with normal commercial practice disclosure of the premium amount and the nature of the insured liabilities is prohibited by a confidentiality clause in the contract. No insurance cover has been provided for the benefit of the auditors of Unity Bank Limited.
Unity Bank Annual Report 2022 | 13
Financial Performance Disclosures
Principal Activities The principal activities of the Bank during the year were the provision of retail financial services to members in the form of taking deposits and giving financial accommodation as prescribed by the Constitution. No significant changes in the nature of these activities occurred during the year.
Operating Results The net profit of Unity Bank Limited for the year after providing for income tax was $7,347,707 [2021: $5,366,356].
Dividends No dividends have been paid or declared on member shares since the end of the financial year and no dividends have been recommended or provided for by the Directors of the Bank.
Review of operations The results of the Bank’s operations from its activities of providing financial services to its members did not change significantly from those of the previous year.
Significant changes in state of affairs The Bank, in line with other institutions across the globe is continuing to manage its response to the Covid-19 Global Pandemic in a number of ways. The core focus of the Bank is to ensure Member assistance and staff safety. There were no other significant changes in the state of the affairs of Unity Bank Limited during the year. Events occurring after the end of the reporting date There are no other matters or circumstances that have arisen since the end of the financial year which significantly affected or may significantly affect the operations, or state of affairs of Unity Bank Limited in subsequent financial years. Likely developments, business strategies and prospects No other matter, circumstance or likely development in the operations has arisen since the end of the financial year that has significantly affected or may significantly affect: (i) The operations of Unity Bank Limited;
(ii) The results of those operations; or
(iii) The state of affairs of Unity Bank Limited
In the financial years subsequent to this financial year.
14 | Unity Bank Annual Report 2022
Financial Performance Disclosures
Environmental legislation The Bank is not subject to any particular or significant environmental regulations under a law of the Commonwealth or of a State or Territory in Australia.
Auditors’ Independence The auditors have provided the declaration of independence to the board as prescribed by the Corporations Act 2001 as set out on page 17 and forms part of this report.
Proceedings on behalf of the Company No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings. Regulatory Disclosures The disclosures required by Prudential Standard APS 330 Public Disclosure (namely the Common disclosure in Attachment A and the Regulatory Capital reconciliation) may be seen on the website at www.unitybank.com.au. Rounding The Bank is a type of Company referred to in ASIC Corporations (Rounding in Financial/Directors’ reports) Instrument 2016/191 and therefore the amounts contained in this report and in the financial report have been rounded to the nearest $1,000, or in certain cases, to the nearest dollar.
This report is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the Directors by:
___________________________
_________________________
Mr M Doleman
Mr M Watson
Chair
Chair, Audit Committee
Signed and dated this 31st day of August 2022.
Unity Bank Annual Report 2022 | 15
Directors’ Declaration
In the opinion of the Directors of Unity Bank Limited:
a. The financial statements and notes of Unity Bank Limited are in accordance with the Corporations Act 2001 , including:
i. Giving a true and fair view of its financial position as at 30 June 2022 and of its performance for the financial year ended on that date; and
ii. Complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001 ; and
b. There are reasonable grounds to believe that Unity Bank Limited will be able to pay its debts as and when they become due and payable.
c. The financial statements comply with International Financial Reporting Standards as stated in Note 5.
Signed in accordance with a resolution of the Directors.
Director ______________________ Mr M Doleman Chair
Dated this 31st day of August 2022.
16 | Unity Bank Annual Report 2022
Independent Auditor’s Report
Grant Thornton Audit Pty Ltd Level 22 Tower 5 Collins Square 727 Collins Street Melbourne VIC 3008 GPO Box 4736 Grant Thornton Audit Pty Ltd Level 22 Tower 5 Collins Square 727 Collins Street Melbourne VIC 3008 GPO Box 4736 Grant Thornton Audit Pty Ltd Level 22 Tower 5 Collins Square 727 Collins Street Melbourne VIC 3008 GPO Box 4736 Melbourne VIC 3001 T +61 3 8320 2222 Melbourne VIC 3001 T +61 3 8320 2222 Melbourne VIC 3001 T +61 3 8320 2222 Grant Thornton Audit Pty Ltd Level 22 Tower 5 Collins Square 727 Collins Street Melbourne VIC 3008 GPO Box 4736
Independent Auditor’s Report To the Members Unity Bank Limited Report on the audit of the financial report
Melbourne VIC 3001 T +61 3 8320 2222
Auditor’s Independence Declaration To the Directors of Unity Bank Limited Auditor’s Independence Declaration To the Directors of Unity Bank Limited Auditor’s Independence Declaration To the Directors of Unity Bank Limited
In accordance with the requirements of section 307C of the Corporations Act 2001 , as lead auditor for the audit of Unity Bank Limited for the year ended 30 June 2022, I declare that, to the best of my knowledge and belief, there have been: a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b no contraventions of any applicable code of professional conduct in relation to the audit. In accordance with the requirements of section 307C of the Corporations Act 2001 , as lead auditor for the audit of Unity Bank Limited for the year ended 30 June 2022, I declare that, to the best of my knowledge and belief, there have been: a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b no contraventions of any applicable code of professional conduct in relation to the audit. In accordance with the requirements of section 307C of the Corporations Act 2001 , as lead auditor for the audit of Unity Bank Limited for the year ended 30 June 2022, I declare that, to the best of my knowledge and belief, there have been: a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b no contraventions of any applicable code of professional conduct in relation to the audit. Opinion We have audited the financial report of Unity Bank Limited (the Company), which comprises the statement of financial position as at 30 June 2022, 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, and notes to the fina ncial statements, including a summary of significant accounting policies, and the Directors’ declaration. In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001 , including: a giving a true and fair view of the Company ’s financial position as at 30 June 2022 and of its performance for the year ended on that date; and b complying with Australian Accounting Standards and the Corporations Regulations 2001 . Grant Thornton Audit Pty Ltd Chartered Accountants Grant Thornton Audit Pty Ltd Chartered Accountants
Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Grant Thornton Audit Pty Ltd Chartered Accountants Darren Scammell Partner – Audit & Assurance Melbourne, 31 August 2022 Darren Scammell Partner – Audit & Assurance Melbourne, 31 August 2022 Darren Scammell Partner – Audit & Assurance Melbourne, 31 August 2022
www.grantthornton.com.au ACN-130 913 594 www.grantthornton.com.au ACN-130 913 594
www.grantthornton.com.au ACN-130 913 594 Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. ‘Grant Thornton’ refe rs to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. ‘Grant Thornton’ refe rs to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards www.grantthornton.com.au ACN-130 913 594 Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. ‘Grant Thornton’ refe rs to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Legislation.
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Unity Bank Annual Report 2022 | 17
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Independent Auditor’s Report
Grant Thornton Audit Pty Ltd Level 22 Tower 5 Collins Square 727 Collins Street Melbourne VIC 3008 GPO Box 4736 Grant Thornton Audit Pty Ltd Level 22 Tower 5 Collins Square 727 Collins Street Melbourne VIC 3008 GPO Box 4736 Grant Thornton Audit Pty Ltd Level 22 Tower 5 Collins Square 727 Collins Street Melbourne VIC 3008 GPO Box 4736 Melbourne VIC 3001 T +61 3 8320 2222 Melbourne VIC 3001 T +61 3 8320 2222 Melbourne VIC 3001 T +61 3 8320 2222 Melbourne VIC 3001 T +61 3 8320 2222 Grant Thornton Audit Pty Ltd Level 22 Tower 5 Collins Square 727 Collins Street Melbourne VIC 3008 GPO Box 4736
Auditor’s Independence Declaration To the Directors of Unity Bank Limited Auditor’s Independence Declaration To the Directors of Unity Bank Limited Independent Auditor’s Report To the Members Unity Bank Limited Report on the audit of the financial report Independent Auditor’s Report To the Members Unity Bank Limited Report on the audit of the financial report
In accordance with the requirements of section 307C of the Corporations Act 2001 , as lead auditor for the audit of Unity Bank Limited for the year ended 30 June 2022, I declare that, to the best of my knowledge and belief, there have been: a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b no contraventions of any applicable code of professional conduct in relation to the audit. In accordance with the requirements of section 307C of the Corporations Act 2001 , as lead auditor for the audit of Unity Bank Limited for the year ended 30 June 2022, I declare that, to the best of my knowledge and belief, there have been: a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b no contraventions of any applicable code of professional conduct in relation to the audit. Opinion We have audited the financial report of Unity Bank Limited (the Company), which comprises the statement of financial position as at 30 June 2022, 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, and notes to the fina ncial statements, including a summary of significant accounting policies, and the Directors’ declaration. In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001 , including: a giving a true and fair view of the Company ’s financial position as at 30 June 2022 and of its performance for the year ended on that date; and b complying with Australian Accounting Standards and the Corporations Regulations 2001 . Opinion We have audited the financial report of Unity Bank Limited (the Company), which comprises the statement of financial position as at 30 June 2022, 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, and notes to the fina ncial statements, including a summary of significant accounting policies, and the Directors’ declaration. In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001 , including: a giving a true and fair view of the Company ’s financial position as at 30 June 2022 and of its performance for the year ended on that date; and b complying with Australian Accounting Standards and the Corporations Regulations 2001 . Darren Scammell Partner – Audit & Assurance Melbourne, 31 August 2022 Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Grant Thornton Audit Pty Ltd Chartered Accountants Darren Scammell Partner – Audit & Assurance Melbourne, 31 August 2022 Grant Thornton Audit Pty Ltd Chartered Accountants
www.grantthornton.com.au ACN-130 913 594
www.grantthornton.com.au ACN-130 913 594 Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. ‘Grant Thornton’ refe rs to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. ‘Grant Thornton’ refe rs to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Legislation. Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Legislation. www.grantthornton.com.au ACN-130 913 594 www.grantthornton.com.au ACN-130 913 594
18 | Unity Bank Annual Report 2022
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Independent Auditor’s Report
I nformation other than the financial report and auditor’s report t hereon The Directors are responsible for the other information. The other information comprises the information included in the Company’s annual report for the year ended 30 June 2022, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the financial report Auditor’s Independence Declaration To the Directors of Unity Bank Limited The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 . The Directors’ responsibility also includes such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial r eport In accordance with the requirements of section 307C of the Corporations Act 2001 , as lead auditor for the audit of Unity Bank Limited for the year ended 30 June 2022, I declare that, to the best of my knowledge and belief, there have been: a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b no contraventions of any applicable code of professional conduct in relation to the audit. Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf. This description forms part of our auditor’s report. Grant Thornton Audit Pty Ltd Chartered Accountants Grant Thornton Audit Pty Ltd Level 22 Tower 5 Collins Square 727 Collins Street Melbourne VIC 3008 GPO Box 4736 Melbourne VIC 3001 T +61 3 8320 2222
Darren Scammell Partner – Audit & Assurance Melbourne, 31 August 2022
Grant Thornton Audit Pty Ltd Chartered Accountants
Darren Scammell Partner – Audit & Assurance Melbourne, 31 August 2022 www.grantthornton.com.au ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. ‘Grant Thornton’ refe rs to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Unity Bank Annual Report 2022 | 19
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