The directors of Blind Citizens Australia (the Company) hereby present their report together with the statement of financial position and the statement of financial performance for the year ended 30 June 2006.

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Unless otherwise indicated, all directors held their position as a director throughout the entire financial year and up to the date of this report.

In addition to the special responsibilities detailed above, each director acts as a member of the National Policy & Development Council for the entire period of their directorship.

The following people were directors of the Company during the financial year:
Karen Knight (resigned 10 October 2005)
Greg Madson (resigned 10 October 2005)
John Simpson (resigned 10 October 2005)
Theresa Smith (resigned 12 December 2005)

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Each director attended the following Board and Committee meetings during the financial year whilst a member of the Board:

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Karen Knight has continued to act as a member of the FAC since resigning as a director.

Other than these sitting fees, no director received any remuneration from the Company for the financial year ended 30 June 2006.

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Mary Latham - B Fin Admin, CA, ASIA (appointed 23 January 2006)
Ms Latham has held various senior finance roles over ten years in various financial services firms and also worked for eight years in chartered accounting practices.

Ms Latham is the alternate Company Secretary and acts as the Company Secretary if ever the incumbent is either absent or incapacitated.

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The Company was not party to any such proceedings during the financial year.

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Signed in accordance with a resolution of the directors.

R Altamore
President
21 August 2006

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I declare that, to the best of my knowledge and belief, during the financial year ended 30 June 2006 there have been:

McDonnell Cunneen & Associates
Registered Company Auditors

Brent Murphy
Partner
21 August 2006

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The above statement of financial performance should be read in conjunction with the accompanying notes

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The above statement of financial position should be read in conjunction with the accompanying notes

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The above statement of cash flows should be read in conjunction with the accompanying notes

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1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

General system of accounting underlying the financial report
This financial report is a general purpose financial report which has been prepared in accordance with Accounting Standards, Urgent Issues Group Consensus Views and other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

The financial report covers Blind Citizens Australia (the Company) as an individual entity. It is a company limited by guarantee, incorporated and domiciled in Australia. The financial report has been prepared on an accrual basis, is based on historical cost and does not take into account changing money values or current valuations of non-current assets. Cost is based on the fair value of the consideration given in exchange for assets.

Set out below is a summary of the material accounting policies adopted by the Company in the preparation of the financial report. The accounting policies have been consistently applied, unless stated otherwise.

First-time adoption of Australian equivalents to International Financial Reporting Standards
The financial report complies with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report, comprising the financial statements and notes thereto, complies with International Financial Reporting Standards (IFRS).

This is the first financial report prepared based on AIFRS and comparatives for the financial year ended 30 June 2006 have been restated accordingly. Reconciliations of AIFRS equity and profit for 30 June 2005 to the balances reported in the 30 June 2005 financial report are detailed in note 1(e) below.

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a) Revenue recognition
Revenues are recognised at fair value of the consideration received, net of the amount of goods and services tax. Revenue is recognised when the Company obtains control over the assets comprising the revenue.

b) 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 Taxation Office (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or part of the item of the expense. Receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet. Cash flows are included in the cash flow statement on a gross basis. The GST components of cash flows arising from investing and financing activities, which are recoverable from, or payable to, the ATO, are classified as operating cash flows.

c) Cash
For the purposes of the Statement of Cash Flows, cash includes cash on hand and at call deposits with banks or financial institutions.

d) Income tax
The Company is exempt from income tax in accordance with endorsement by the ATO as an income tax exempt charitable entity under Subdivision 50-B of the Income Tax Assessment Act 1997.

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e) Impact of the adoption of AIFRS
There have been no changes to prior year opening retained earnings or to the profit and loss comparatives as a result of the introduction of AIFRS.

f) Property, plant and equipment
Acquisitions
Items of property, plant and equipment are initially recorded at cost and are depreciated as outlined below.

Depreciation
Items of property, plant and equipment are depreciated over their estimated useful lives at rates of 5% to 37.5%.

Valuation
Items of property, plant and equipment are measured on a fair value basis. At each balance date, the value of the assets is reviewed to ensure it does not differ materially from the fair value at that date.

g) Employee entitlements
Liabilities for annual leave and long service leave benefits that are expected to be settled within 12 months are measured at the amount expected to be paid when they are settled.

Liabilities for annual leave and long service leave benefits that are not expected to be settled within 12 months are discounted using rates attaching to Commonwealth Government securities which most closely match the terms of maturity of the related liabilities at balance date. This liability represents the present value of the estimated future cash flows to be made by the employer resulting from employees' service provided up to balance date.

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In determining the liability for employee entitlements, consideration has been given to future increases in wages and salary rate and experience with employee departures.

Contributions are made to employee superannuation funds and are charged as an expense when incurred. The Company has no legal obligation to provide benefits to employees on retirement.

h) Members' undertaking
The Company is a company limited by guarantee. In the event of the Company being wound up, the members' liability is limited to $2.

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12. RELATED PARTY TRANSACTIONS
During the period that he was a director of the Company, Mr John Simpson received, or became entitled to receive, benefits in respect of a contractual relationship between the Company and Information Alternatives Pty Ltd, of which Mr Simpson is a director and shareholder.

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13. DIRECTORS' REMUNERATION
The Company receives funding from the Department of Communications, Information Technology and the Arts (the Department) for participation in the Australian Communications Industry Forum Disability Advisory Board. Tony Starkey, a Director of the Company, acts as the Company's representative member of the Disability Advisory Board. In this capacity, he received sitting fees of $3,036 for the year ended 30 June 2006. This amount was the full amount of funding received from the Department.

Other than these sitting fees, no director received any remuneration during the year.

14. SEGMENT REPORTING
The Company operates in a non-profit capacity as a public benevolent institution.

The Company operates solely within Australia.

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15. FINANCIAL INSTRUMENTS

a) Interest rate risk
Interest rate risk refers to the risk that a financial instrument's value will fluctuate as a result of changes in market interest rates. The following table details the Company's interest rate risk as at the reporting date.

The weighted average interest rate for the prior year is not available.

b) Credit risk
Credit risk refers to the risk that a counterparty will default in its contractual obligations resulting in financial loss to the Company. The carrying amount of financial assets recorded in the Statement of Financial Position represent the Company's maximum exposure to credit risk. The Company does not have any significant credit risk exposure to any single counterparty.

c) Net fair value
The carrying amount of financial assets and financial liabilities recorded in the financial statements represent their respective net fair values as determined in accordance with the accounting policies disclosed in Note 1 to the financial statements.

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In the directors' opinion:

This declaration is made in accordance with a resolution of the directors.

R Altamore
President
21 August 2006

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Scope
We have audited the general purpose financial report of Blind Citizens Australia for the financial year ended 30 June 2006, set out on pages 11 to 23. The directors are responsible for the financial report. We have conducted an independent audit of the financial report in order to express an opinion on it to the members of Blind Citizens Australia.

Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance whether the financial report is free of material misstatement. Our procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial report, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial report is presented fairly in accordance with Accounting Standards and other mandatory professional reporting requirements, in Australia, so as to present a view which is consistent with our understanding of the Blind Citizens Australia's financial position, and performance, as represented by the results of its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above basis.

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Audit Opinion
In our opinion, the financial report of Blind Citizens Australia presents a true and fair view in accordance with applicable Accounting Standards and other mandatory professional reporting requirements in Australia of the financial position of Blind Citizen Australia as at 30 June 2006 and the results of its operations and its cash flows for the year then ended.

McDonell Cunneen & Associates

Brent Murphy
Registered Company Auditor
21 August 2006

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