125.
Ensuring donated funds are used appropriately We are committed to accountable and transparent financial management and follow strict procedures to ensure funds are used as intended, including annual internal and external audits. At least once every three years we are also audited by World Vision International’s Audit and Evaluation Department. World Vision Australia receives aggregated project financial data by region, country and project level to allow us to monitor and analyse project expenditure. We also receive quarterly financial reports for each individual project along with regular narrative reporting. This facilitates further detailed analysis and enables follow-up with each project. In addition to a rigorous internal audit system, World Vision Australia’s accounts are audited by PricewaterhouseCoopers. Our audited statutory accounts are lodged with ASIC and are available on our website. Funds donated to World Vision Australia are used for the purposes for which they were raised. The only exception to this occurs where circumstances that are beyond our control prevent us from utilising funds in the promised manner. Such circumstances may include instances where: • geopolitical issues prevent the use of funds; • security of staff is jeopardised so that World Vision is forced to withdraw from the project area; • the relevant community has asked us to leave; and • W orld Vision Australia loses confidence that its field partner has capacity to implement projects and account for funds spent. When World Vision Australia cannot use funds for the purposes for which they were raised, funds are spent on areas of similar need. Wherever practicable, donors will receive notice of such action. The method of communicating this change in funding allocation depends on the number of donors involved. All funds allocated or committed to any domestic or international field project must be approved by World Vision Australia’s Field Allocations Committee. The Field Allocations Committee consists of key internal personnel providing oversight of World Vision Australia funds committed to our relief and development programs. Funding decisions are made based on criteria such as strategic fit, organisational capacity and budget requirements. The committee applies local and international accounting standards and operational audits to ensure that our overseas and local partners adhere to our project management standards. World Vision Australia staff periodically visit our projects and perform quality monitoring in the areas of sustainability, impact, development approach and financial risk monitoring.
SUMMARISED FINANCIAL REPORT
126.
Prepared in accordance with the ACFID Code of Conduct Page Independent Auditor’s Report
126
Declaration by Directors
128
Income Statement
128
Statement of Financial Position
130
Statement of Changes in Equity
131
Table of Cash Movements for Designated Purposes
131
These reports are presented in Australian dollars. World Vision Australia is a public company limited by guarantee, incorporated and domiciled in Australia. Detailed notes to the Financial Statements are included in our Annual Statements and Accounts filed with ASIC and available on our website.
Independent auditor’s report to the members of World Vision Australia Report on the financial report We have audited the accompanying financial report of World Vision Australia (the company), which comprises the statement of financial position as at 30 September 2012, the income statement, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the directors’ declaration.
Directors’ responsibility for the financial report 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 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In Note 1, the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements that the financial statements comply with International Financial Reporting Standards.
Auditor’s responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of