A N N U A L R E P O R T
2015-16
WHERE FLOWERS BLOOM SO DOES
HOPE
Makna Annual Report 2015 FA.indd 1
4/1/17 4:00 PM
OUR MISSION & OBJECTIVE OUR MISSION To mobilise resources in order to provide curative, preventive, research and support services to cancer patients and families, highrisk groups and the general public.
OUR OBJECTIVE To pool and utilise all efforts, expertise and finance from all sectors of the society to fight cancer and reduce related pain, morbidity and the suffering that cancer patients undergo.
COVER RATIONALE WHERE FLOWERS BLOOM, SO DOES HOPE. This statement originated from Claudia Alta “Lady Bird” Johnson, the First Lady of the United States (1963-69) and wife of Lyndon B. Johnson, the 36th President of the United States. Lady Bird was a pioneer in many ways, from her national beautification project to environmental conservatism and her role in shaping the modern structure of the First Lady’s office – Lady Bird was the first to have a press secretary and chief of staff of her own. MAKNA relates to this pioneering spirit; the outlier’s courage to go off the beaten path and pave a new trail in helping cancer patients who are poor regardless of race and religion. Most of all, MAKNA relates to the statement Where Flowers Bloom, So Does Hope, as we aspire to be as ubiquitous as the periwinkle, the motif of our logo. Where MAKNA is, where MAKNA goes, so does hope.
02
MAKNA • NATIONAL CANCER COUNCIL
Makna Annual Report 2015 FA.indd 2
4/1/17 4:00 PM
MAKNA was founded by Dato’ Mohd Farid Ariffin in Kuala Lumpur, Malaysia in 1994. He left his Deputy Health Minister post to set up MAKNA, after realising through his own experience with his son’s struggles with leukaemia, that cancer patients from poor financial background would find it difficult to afford treatment. 23 years on, MAKNA is still going strong. This home-grown social enterprise that offers a comprehensive range of services to those affected by cancer continues to play an important part in helping cancer patients with treatment, financial support and post-treatment issues, regardless of background, race, creed, colour and station.
MAKNA is a member of the Union for International Cancer Control (UICC)
MAKNA is a not-for-profit social enterprise registered under the registrar of societies in 1994. Lembaga Hasil Dalam Negeri: Seksyen 44(6) Akta Cukai Pendapatan 1967. RUJ: LHDN.01/35/42/52/179-6.4232 Nombor Warta Kerajaan 2153 bertarikh 30 Mac 1995
CONTENT 04 05 06 08 10 11 12 13
Message from Founder & President Foreword from General Manager Board of Trustees and Executive Committee Digital Mobile Mammogram Unit Bursary Programme (Financial Assistance) Home Visit Volunteers Education and Awareness
14 16 18 19 20 22 23
Cancer Research Donor Acquisition PPUKM - MAKNA Cancer Centre Other Services Going Forward, Looking Ahead Acting Together to Fight Cancer Financial Statements
ANNUAL REPORT 2015-16
Makna Annual Report 2015 FA.indd 3
03
4/1/17 4:00 PM
MESSAGE FROM FOUNDER & PRESIDENT
All the services that MAKNA provides are testament to your good intentions, actions and contributions.
Dato’ Mohd Farid Ariffin
We have made great strides since MAKNA was established 23 years ago. Every year has built on the previous year’s advancements, reaching, extending and growing into a strong body of people, systems and infrastructure. As I envision our exciting journey ahead, I am grateful that we have come this far. When I had the idea to set up MAKNA, mapping our course was urgent and clear. The poor needed access to cancer care and treatment, and we had to begin building a bridge for the patient. We started out with bursary assistance worth RM5,000 for 69 patients at one public hospital. Today, MAKNA receives cases from 73 hospitals in Peninsular Malaysia and 19 in Sabah and Sarawak.
04
MAKNA’s outreach has grown by leaps and bounds and MAKNA today supports cancer patients all over the country. We receive nearly 5,000 new cases every year. This great number of patients is supported by MAKNA and our 250 active volunteers and you, our corporate and individual benefactors. The support given to patients by MAKNA has since become more involved and complex, digging deeper into medical and emotional support. In all the years that we have worked on this mission, one thing is certain, it is hard work emotionally, physically and financially. But we continue assisting financially challenged cancer patients because you care and contribute your hardearned money, advice, ideas and energy towards alleviating the suffering caused by this grave disease.
We have built this bridge together. Its strength and reach is only as far as you made possible and oh my, is it a marvellous bridge! All the services that MAKNA now provides are testament to YOUR good intentions, actions and contributions. I thank you for your continued support and look forward to forging ahead, finding even greater, more significant ways to bridge the gap between Malaysia’s financially challenged cancer patients and a pathway to life.
MAKNA • NATIONAL CANCER COUNCIL
Makna Annual Report 2015 FA.indd 4
4/1/17 4:00 PM
FOREWORD FROM GENERAL MANAGER
It is my hope that we will not rest on our laurels with our achievements thus far, but to charge forward always in this battle against cancer.
Farahida Mohd Farid
Thank you for picking up a copy of the MAKNA Annual Report. In the following pages, you will find a detailed account of all our services, activities and infrastructure that go towards serving cancer patients who are poor, as well as the corresponding figures to finance these services. I invite you to take a moment to reflect on the time, funds and heart invested by the 186 staff, 250 active volunteers, and the many generous and loyal donors of MAKNA to help the unfortunate sick. 2015 and 2016 have been noteworthy and memorable years for MAKNA. Among others, we celebrated the opening of 2 new halfway houses to provide temporary accommodation to patients seeking treatment at hospitals away from home. These are the first of a pipeline of new concept homes designed to be more comfortable and conducive for recuperation. What this translates
to is access to treatment that was previously inconceivable because patients would not have been able to afford a temporary abode while getting surgery, chemotherapy or radiation therapy over a few days, weeks or months. Travel expenses to hospital were similarly a barrier to access that MAKNA began funding, which enabled a higher number of patients to seek or to continue seeking treatment instead of giving up. Access to treatment has made the difference between prolonged life of patients and provision for children and families, and preventable death and loss of breadwinners.
While there is much to be thankful for, a long road stretches ahead of us. The cancer rate is increasing while MAKNA is still only able to help about 10% of cancer incidences. It is my hope that we will not rest on our laurels with our achievements thus far, but to charge forward always in this battle against cancer. Please continue to support us at MAKNA and help share the knowledge you gain from this report. Thank you.
MAKNA also celebrated our volunteers. The mobilization of this group of skilled and trained people, some of whom are cancer survivors themselves, is critical in giving immeasurable hope to patients they encounter.
ANNUAL REPORT 2015-16
Makna Annual Report 2015 FA.indd 5
05
4/1/17 4:00 PM
BOARD OF TRUSTEES YAM Tengku Puteri Lela Wangsa Pahang Tengku Tan Sri Hajah Meriam Binti Sultan Haji Ahmad Shah PSM SIMP, JP
EXECUTIVE COMMITTEE
06
Vice President
Honorary Secretary
Assistant Honorary Secretary
Professor Dr Cheong Soon Keng Dean, Faculty of Medicine & Health Sciences, UTAR, & Emeritus Professor, Pusat Perubatan UKM
Dato’ Freida Dato’ Mohd Pilus Chairman, Sekolah Sri Cempaka (International)
Professor Dato’ Dr Jafri Malin Abdullah Head of Department, School of Medicine Hospital Universiti Sains Malaysia, Kubang Kerian, Kelantan
Member
Member
Member
Professor Datin Paduka Dr Aini Ideris Vice-Chancellor, Universiti Putra Malaysia
Professor Dr Ishak Mat Lecturer, Advanced Medical & Dental Institute, Universiti Sains Malaysia
Mimi Hafizan Abdul Rahman Consultant
MAKNA • NATIONAL CANCER COUNCIL
Makna Annual Report 2015 FA.indd 6
4/1/17 4:00 PM
YABhg Toh Puan Sri Sagiyah Salikin (Wife of Tun Dato’ Seri Ahmad Sarji, Chairman of PNB)
YBhg Professor Tan Sri Dato’ Dzulkifli Abdul Razak Chair of Islamic Leadership Office
Honorary Treasurer
Assistant Honorary Treasurer
Zainol Talib Chartered Financial Consultant & Life Underwriter Training Council Fellow
Douglas Tan Hock Kee Managing Director, Asian Business Solutions Sdn Bhd
Member
Member
Dr Imran Abdul Khalid Head, Surgery Department, Hospital Seberang Jaya
Professor Abdul Aziz Baba Vice-Chancellor, International Medical University Education
Member Rosleem Haji Nordin @ Bohari Accountant, Accountant General’s Department of Malaysia
ANNUAL REPORT 2015-16
Makna Annual Report 2015 FA.indd 7
07
4/1/17 4:00 PM
DIGITAL MOBILE MAMMOGRAM UNIT MAKNA believes that early detection and prevention are important in reducing cancer morbidity and mortality. With this in mind, MAKNA introduced its Digital Mobile Mammogram Programme in 2011 to deliver breast cancer screening service to locations all over Malaysia, from districts to cities, from rural to urban poor dwellings, to those who are unable to afford or have access to such facility. By doing so, MAKNA aims to enable the detection of breast cancer at the early stages and help reduce breast cancer death rates.
Total mammogram screenings: 2015
2016
2015 Screening by age:
3,316 3,216
Rural
Corporate
383
1,301
75
Perkeso
-
3,774 4,517
Total cases
40-49
43%
49%
50-59
41%
38%
60-69
16%
13%
2015
2016
Detected abnormalities:
Detected abnormalities:
Normal
Abnormal
3,331
443
Confirmed cases
6
08
2016
Normal
Abnormal
4,265
252
Confirmed cases
2
MAKNA • NATIONAL CANCER COUNCIL
Makna Annual Report 2015 FA.indd 8
4/1/17 4:00 PM
Total clinical breast examinations: 2015
2016
1,067
1,009
222
143
1,289
1,152
Female
Male Total cases
97% Normal (1,255)
3% 96%
Abnormal (34)
Normal (1,109)
4%
Abnormal (43) ANNUAL REPORT 2015-16
Makna Annual Report 2015 FA.indd 9
09
4/1/17 4:00 PM
BURSARY PROGRAMME (FINANCIAL ASSISTANCE) Under the Bursary programme, cancer patients in the lower income groups who are undergoing treatment at government hospitals can apply to MAKNA for financial aid via the hospitals’ medical social works department. Financial aid is provided in the form of necessities that include non-formulary drugs, surgical equipment, prostheses, colostomy bags and also a monthly allowance for those who need it.
MAKNA assisted:
Adult cases Paediatric cases Total cases Amount disbursed
2015
2016
4,851 462 5,313
4,360 366 4,726
RM9.5 million
8.2 million
RM
Referrals from
92
Hospitals
14 days processing time
Types of assistance:
Financial Assistance 10
Prostheses
Surgical Equipment
Appliances
Non-Formulary Drugs
MAKNA • NATIONAL CANCER COUNCIL
Makna Annual Report 2015 FA.indd 10
4/1/17 4:00 PM
HOME VISIT All patients assisted under the Bursary
Bursary
programme are visited at home by the MAKNA Home Visit Team who ensures that donations are channelled to the
Approved Bursary Applications
rightful recipients. In addition, they are able to establish rapport with patients and better understand their conditions as well as socio-economic background.
Home Visit
The team plays an essential role as well in providing emotional support and encouragement to patients to continue
Latest Status and Recommendations
with their treatment or check-ups.
Total visits: 2015
2016
2,115 49%
4,442 129%
(2016 cases plus backlogged 2014-2015 cases)
Adult patients
1,923
4,175
Paediatric patients
192
267
Patients visited
Percentage
of 4,330 cases
of 3,431 cases
Home Visit role:
Provide moral support Confirmed
Ensure patients receive aid and continue with treatment
Advise patients and help them apply aid from other agencies
>90% patients received aid from MAKNA
ANNUAL REPORT 2015-16
Makna Annual Report 2015 FA.indd 11
11
4/1/17 4:00 PM
VOLUNTEERS Volunteers are a vital component of MAKNA. They are invaluable in helping MAKNA to cast a wider net and extend its support to a larger group of cancer patients as they undergo treatment and to communities in all parts of the country. Some of the volunteers are cancer survivors themselves and this group helps other cancer patients by sharing their own experience struggling with and surviving cancer.
Total volunteers:
50
Very Active
200 76
Active
Leaders
26
Potential Leaders
Home Visit
Support Group
Main functions:
2015 Total activities conducted
12
140
2016
364
MAKNA • NATIONAL CANCER COUNCIL
Makna Annual Report 2015 FA.indd 12
4/1/17 4:00 PM
EDUCATION AND AWARENESS Another key objective of MAKNA is to help reduce cancer incidences in Malaysia through continuous education to drive awareness and encourage positive health behaviour changes. The MAKNA Exhibition team organises talks and exhibitions on a yearly basis in addition to regular demonstrations, road shows, breast self-examination, etc., in local communities, corporate sector, government agencies, institutions of higher learning and schools.
Total exhibitions: 2015
2016
37
22
17
22
Schools
8
0
Corporate
50
74
Communities
12
13
Total
124
131
Government Agencies
Universities
ANNUAL REPORT 2015-16
Makna Annual Report 2015 FA.indd 13
13
4/1/17 4:00 PM
CANCER RESEARCH MAKNA has embarked on cancer research actively over the past 14 years. As of 2016, RM11.1 million has been allocated to fund research through 19 collaborative efforts with various institutions of higher learning and research institutes. The MAKNA Cancer Research Award, initiated in collaboration with the Academy of Sciences Malaysia, aims to promote cancer research among young scientists. Through such funding and grants, MAKNA aims to advance the prevention, detection and treatment of cancer, and ultimately drive down cancer mortality.
Collaborations spawned: 2015
2016
72
(45 Completed)
(48 Completed)
PhDs
19
19
MScs
63
64
Research Projects
75
Project categories:
Pre-clinical
Basic
Provides results applicable Seeks to answer to prevention, diagnosis or fundamental questions treatment of cancer, and about development and rehabilitation of cancer patients, nature of cancer. but not ready for use in human.
14
Epidemiology
Health Policy & Outcomes
Others
Investigates circumstances under which cancer occurs in populations.
Investigates creation and effects of laws and public policies affecting people making health decisions related to cancer control.
5 public health and 2 nutrition studies.
MAKNA • NATIONAL CANCER COUNCIL
Makna Annual Report 2015 FA.indd 14
4/1/17 4:00 PM
Malaysian Stem Cell Registry
28,006
1
in collaboration with Ministry of Health Malaysia and the Institute for Medical Research
The only registry with high donors of Malay ethnicity
Registered Stem Cell Donors
No. of peripheral blood stem cell/bone marrow transplants:
1 Year 2010
2 2011
0
2012
3 2013
3 2014
4 1 2015
14 Total
2016
ANNUAL REPORT 2015-16
Makna Annual Report 2015 FA.indd 15
15
4/1/17 4:00 PM
DONOR ACQUISITION MAKNA has stayed true to its mission – to help cancer patients – by funds received from donations. At the same time, to ensure that there is no interruption to the aid channelled to patients, MAKNA puts continuous effort into fund-raising.
My Pledge Against Cancer Direct Debit Donor Programme This fund-raising project has been the main income generator for MAKNA since 2002. Each donor commits to MAKNA a monthly deduction of RM38 to RM58. The donation is made via credit cards or bank accounts.
e-Charity Donors are able to make their donations via credit cards or online banking payment at www.makna.org.my or to crowdfund via peoplegiving.org, simplygiving.com, and globalgiving.org.
Sen Saves Lives The initiaves under SSL include Kempen Kutip Syiling and donation boxes. Kempen Kutip Syiling is a programme carried out with the Ministry of Education and Bank Negara Malaysia where primary and secondary school students are encouraged to collect coins and hand them over to their school authorities who will then bank them into a MAKNA bank account. Donation boxes are available in small, medium and big sizes, and are provided to parties who are organising donation drives or willing to host the boxes.
16
MAKNA • NATIONAL CANCER COUNCIL
Makna Annual Report 2015 FA.indd 16
4/1/17 4:00 PM
2015
2016
RM27.1M
RM30.1M
13,889 New Donors 13,426 New Donors 2015
RM194,792
2016
RM263,628
2015
2016
RM165,221
RM181,718 ANNUAL REPORT 2015-16
Makna Annual Report 2015 FA.indd 17
17
4/1/17 4:00 PM
PPUKM–MAKNA CANCER CENTRE The Cancer Centre, established in 1999 in collaboration with PPUKM (Pusat Perubatan Universiti Kebangsaan Malaysia), provides comprehensive and state-of-the-art facilities to cancer patients of all financial background. The Cancer Centre comprises an oncology ward, a radiotherapy services centre and a stem cell transplant ward.
Total patients: 2015
Oncology Ward
Radiotherapy
Chemotherapy
Brachytherapy
18
2016
1,017 1,008
2015
Stem Cell Transplant Ward
96
2016
103
2015
2016
2015
2016
76
84
58
38
235
187
570
574
10
55
67
69
Palliative
Symptomatic
Others
MAKNA • NATIONAL CANCER COUNCIL
Makna Annual Report 2015 FA.indd 18
4/1/17 4:00 PM
OTHER SERVICES CANCER HELPLINE 1 800 88 62562
MAKNA provides this service with the aim of supporting not just cancer patients, but also their families, caregivers and the general public. Personnel trained in oncology attend to the helpline as well as incoming email seeking information, guidance and emotional support.
2015 2016
• Calls
217
143
• Emails
196
125
CANCER SUPPORT GROUP
The support group is headed by trained staff and volunteers. The purpose of the support group is to counsel cancer patients, their family members or caregivers to help them better cope with the emotional demands of battling cancer.
YOUNG CANCER SURVIVOR SCHOLARSHIP The provision of this scholarship is to help young cancer survivors further their tertiary studies. RM50,000 per annum is allocated to offer cancer survivors aged 25 or younger with financial assistance to pursue their studies.
HALFWAY HOUSE
Provides short-term accommodation to patients and caregivers who are unable or unfit to travel frequently from home to hospital for the duration of their treatment. 2 houses launched: • Johor Bahru • Kepala Batas, Pulau Pinang
ANNUAL REPORT 2015-16
Makna Annual Report 2015 FA.indd 19
19
4/1/17 4:00 PM
GOING FORWARD, LOOKING AHEAD
MAKNA ONLINE BURSARY SYSTEM
COMING SOON Halfway House in Kelantan
MAKNA IN SIBU, SARAWAK MAKNA plans to set up offices in East Malaysia, beginning with Sibu, Sarawak. With increased presence, MAKNA hopes to be more attuned to issues faced by cancer patients in Sabah and Sarawak, and to be better positioned to meet their needs. Address: No.14-B, Jalan Kampung Datu, 96000 Sibu, Sarawak, Malaysia Tel: 084 - 314234 Fax: 084 – 314707
20
MAKNA • NATIONAL CANCER COUNCIL
Makna Annual Report 2015 FA.indd 20
4/1/17 4:00 PM
A system developed wholly by MAKNA that enables bursary applications to be sent electronically by medical social works officers who are based in hospitals anywhere in the
COMING SOON
country. With this real-time system, MAKNA aims to drastically cut down on processing
Halfway House in Sabah
time, and to increase the rate at which aid is disbursed to cancer patients.
COMING SOON Mobile Cancer Screening Unit in Sabah
COMING SOON Mobile Cancer Screening Unit in Sarawak
COMING SOON Halfway House in Sarawak
ANNUAL REPORT 2015-16
Makna Annual Report 2015 FA.indd 21
21
4/1/17 4:00 PM
ACTING TOGETHER
TO FIGHT CANCER
22
MAKNA • NATIONAL CANCER COUNCIL
Makna Annual Report 2015 FA.indd 22
4/1/17 4:00 PM
MAJLIS KANSER NASIONAL Society No. 2009/94 (Wilayah Persekutuan) • Established under Societies Act, 1966
FINANCIAL STATEMENTS
For The Financial Year Ended 31 December 2015
24 25 26 27 28 29 31
Statement by Executive Committee Members Report on the Financial Statements Statement of Income and Expenditure Statement of Assets, Liabilities and Fund Balances Statement of Changes in Accumulated Fund Cash Flow Statement Notes to the Financial Statements
ANNUAL REPORT 2015-16
Makna Annual Report 2015 FA.indd 23
23
4/1/17 4:01 PM
STATEMENT BY EXECUTIVE COMMITTEE MEMBERS We, Dato’ Mohd Farid Ariffin and Zainol Bahari Talib, two of the Executive Committee members of Majlis Kanser Nasional, state that, in the opinion of the Executive Committee, the financial statements set out on pages 26 to 39 are drawn up so as to give a fair presentation of the financial position of the Society as at 31 December 2015 and of the financial performance and cash flows of the Society for the financial year ended on the date in accordance with the accounting policies set out in Note 2 to the financial statements.
Dato’ Mohd Farid Ariffin President
Zainol Bahari Talib Honorary Treasurer
Kuala Lumpur 20 April 2016
24
MAKNA • NATIONAL CANCER COUNCIL
Makna Annual Report 2015 FA.indd 24
4/1/17 4:01 PM
REPORT ON THE FINANCIAL STATEMENTS We have audited the financial statements of Majlis Kanser Nasional (the “Society”), which comprise the statement of assets, liabilities and fund balances as at 31 December 2015, and the statement of income and expenditure, statement of changes in accumulated fund and cash flow statement for the financial year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 26 to 39. Executive Committee Members’ Responsibility for the Financial Statements The Executive Committee Members (“the Committee”) of the Society are responsible for the preparation of financial statements so as to give a true and fair view in accordance with the accounting policies set out in Note 2 to the financial statements. The Committee is also responsible for such internal control as the Committee determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Society’s preparation of financial statements that give a true and fair view 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 Society’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Committee, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the financial position of the Society as at 31 December 2015 and of its financial performance and cash flows for the financial year then ended in accordance with the accounting policies set out in Note 2 to the financial statements.
OTHER MATTERS This report is made solely to the members of the Society and for no other purpose. We do not assume responsibility to any other person for the content of this report.
PRICEWATERHOUSECOOPERS (No. AF: 1146) Chartered Accountants
Azizan Bin Zakaria (No. 2930/05/16 (J)) Chartered Accountant
Kuala Lumpur 20 April 2016
ANNUAL REPORT 2015-16
Makna Annual Report 2015 FA.indd 25
25
4/1/17 4:01 PM
STATEMENT OF INCOME AND EXPENDITURE For The Financial Year Ended 31 December 2015 Note INCOME
2015 RM
2014 RM
Receipts from projects 3 Donation received from individuals, societies and corporations Interest from deposits Dividend income Interest from investment Annual subscriptions
29,943,577 248,078 2,443,924 577,269 12,657 4,830
27,338,916 251,260 1,898,888 655,143 33,000 1,202
33,230,335
30,178,409
LESS: EXPENDITURE Bursary 7,739,281 7,184,006 Salaries and related costs 7,499,136 7,199,323 Activities costs 8,483,072 7,174,437 Administrative costs 833,241 740,740 Depreciation of property, plant and equipment 208,571 215,528 Provision for impairment of amount due from related party 15,005 61,200 Consumables, cleaning and utilities 198,575 179,594 Provision for impairment of investment 389,075 661,606 Scholarships granted - 2,860
4
25,365,956
23,419,294
SURPLUS OF INCOME OVER EXPENDITURE BEFORE TAXATION 7,864,379 6,759,115 TAXATION
5 (10,149) (28,790)
SURPLUS OF INCOME OVER EXPENDITURE AFTER TAXATION
7,854,230
6,730,325
The notes on pages 31 to 39 form part of these financial statements.
26
MAKNA • NATIONAL CANCER COUNCIL
Makna Annual Report 2015 FA.indd 26
4/1/17 4:01 PM
STATEMENT OF ASSETS, LIABILITIES AND FUND BALANCES As At 31 December 2015
Note NON-CURRENT ASSETS
2015 RM
2014 RM
Property, plant and equipment 6 Long-term investment
3,068,260 -
2,779,815 1,000,000
3,068,260
3,779,815
CURRENT ASSETS Investments 7 7,431,890 7,555,719 Receivables 8 1,211,996 1,175,594 Tax recoverable 101,435 91,078 Amount due from related party 9 - Fixed deposits with licensed banks 10 71,955,572 58,197,458 Cash and bank balances 10 4,910,755 9,805,309
85,611,648
76,825,158
2,340,278 -
2,116,335 3,238
2,340,278
2,119,573
CURRENT LIABILITIES Trade and other payables Hire purchase payables
11 12
NET CURRENT ASSETS
83,271,370
74,705,585
86,339,630
78,485,400
86,339,630
78,485,400
Financed by: ACCUMULATED FUND Accumulated surplus of income over expenditure
The notes on pages 31 to 39 form part of these financial statements.
ANNUAL REPORT 2015-16
Makna Annual Report 2015 FA.indd 27
27
4/1/17 4:01 PM
STATEMENT OF CHANGES IN ACCUMULATED FUND For The Financial Year Ended 31 December 2015
2015
TOTAL RM
Balance at 1 January 2015
78,485,400
Surplus of income over expenditure
7,854,230
Balance at 31 December 2015
86,339,630
2014 Balance at 1 January 2014
71,755,075
Surplus of income over expenditure 6,730,325 Balance at 31 December 2014 78,485,400
The notes on pages 31 to 39 form part of these financial statements.
28
MAKNA • NATIONAL CANCER COUNCIL
Makna Annual Report 2015 FA.indd 28
4/1/17 4:01 PM
CASH FLOW STATEMENT
For The Year Ended 31 December 2015
Note CASH FLOWS FROM OPERATING ACTIVITIES
2015 RM
2014 RM
Surplus after tax
7,854,230
6,730,325
Adjustment for: - Depreciation of property, plant and equipment - Interest income - Investment income - Dividend income - Tax expense - Provision for impairment of amount due from related party - Provision for impairment of receivables - Provision for impairment of investment
208,571 (2,443,924) (12,657) (577,269) 10,149 15,005 5,898 389,075
215,528 (1,898,888) (33,000) (655,143) 28,790 61,200 661,606
Surplus before working capital changes
5,449,078
5,110,418
Changes in working capital: - Receivables - Related party - Payables
810,508 (15,005) 223,943
(1,826) (61,200) 508,126
Cash generated from operating activities
6,468,524
5,555,518
Interest received
1,617,648
1,370,070
Net cash flow generated from operating activities
8,086,172
6,925,588
Purchase of property, plant and equipment Investment income received Dividend received Proceeds from investment
(497,016) 33,000 244,642 1,000,000
(86,862) 33,000 365,368 -
Net cash flow generated from investing activities
780,626
311,506
CASH FLOWS FROM INVESTING ACTIVITIES
The notes on pages 31 to 39 form part of these financial statements.
ANNUAL REPORT 2015-16
Makna Annual Report 2015 FA.indd 29
29
4/1/17 4:01 PM
For The Year Ended 31 December 2015
Note CASH FLOWS FROM FINANCING ACTIVITY
(CONT’D)
CASH FLOW STATEMENT
2015 RM
2014 RM
Hire purchase paid
(3,238)
(46,837)
Net cash flow used in financing activity
(3,238)
(46,837)
Net increase in cash and cash equivalents Cash and cash equivalents at beginning of the financial year
8,863,560 68,002,767
7,190,257 60,812,510
Cash and cash equivalents at end of the financial year
76,866,327
68,002,767
Cash and cash equivalents comprise: Cash and bank balances Fixed deposits with licenced banks
4,910,755 71,955,572
9,805,309 58,197,458
76,866,327
68,002,767
10 10
The notes on pages 31 to 39 form part of these financial statements.
30
MAKNA • NATIONAL CANCER COUNCIL
Makna Annual Report 2015 FA.indd 30
4/1/17 4:01 PM
NOTES TO THE FINANCIAL STATEMENTS
For The Financial Year Ended 31 December 2015 1. CONSTITUTION
Majlis Kanser Nasional (“MAKNA”) was registered on 10 November 1994 and officially launched on 30 March 1995 and was approved by the Department of Inland Revenue for the purposes of Section 44(6) of the Income Tax Act, 1967. The objectives of Majlis Kanser Nasional are to work towards the attainment of a better health care system for all Malaysians especially in terms of the prevention and control of cancer; to develop and formulate policies for cancer prevention and intervention; to strengthen and generate services and programmes on cancer and to strengthen support services for cancer patients and affected persons.
MAKNA has 158 (2014:151) employees at the end of the financial year.
The address of the principal place of activity is as follows:
BG 03A & 05, Ground Floor Megan Ambassy, 225, Jalan Ampang 50450, Kuala Lumpur.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Property, plant and equipment
Property, plant and equipment are stated at cost, with the amount of goods and services tax (GST) included, less accumulated depreciation and impairment losses.
Property, plant and equipment are depreciated on a straight line basis to write-off the cost of each asset over its expected useful life. The principal annual rates of depreciation used are as follows:
Building
2.0%
Office renovation
33.3%
Hospital renovation
20.0%
Office equipment
20.0%
Hospital equipment
20.0%
Computer equipment
20.0%
Furniture and fittings
20.0%
Mobile trailer
20.0%
Motor vehicle
20.0%
Property, plant and equipment received on donation are not capitalised.
At each balance sheet date, an assessment is made for any indication of impairment. If such indications exist, an analysis is performed to assess whether the carrying amount of the asset is fully recoverable. A write down is made if the carrying amount exceeds the recoverable amount. See accounting policy Note 2 (e) on impairment of assets.
(b) Cash and cash equivalents
Cash and cash equivalents consist of cash at bank and fixed deposits with licensed bank. Cash and bank balances comprise of highly liquid investment which are readily convertible to known amount of cash which are subject to an insignificant risk of change in value.
ANNUAL REPORT 2015-16
Makna Annual Report 2015 FA.indd 31
31
4/1/17 4:01 PM
(CONT’D)
NOTES TO THE FINANCIAL STATEMENTS
For The Financial Year Ended 31 December 2015 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(c) Income and expenditure
Income is recognised when it is probable that economic benefits associated with the transaction will flow to the organisation and the amount of income can be measured reliably.
Receipts from projects
Receipts from projects relate to donation received and are recognised on a receipt basis.
Interest from deposits with licensed banks
Interest from deposits with licensed banks is recognised on an accrual basis determined based on the principal outstanding and the rates applicable.
Interest from investment
Interest from investment is recognised on an accrual basis determined based on the principal outstanding and the rates applicable.
Dividend income
Dividend income is recognised when the right to receive payment is established.
Expenditure is recognised on an accrual basis.
(d) Investments
Investments are stated at lower of cost or market value on an aggregate portfolio basis. On disposal of an investment, the difference between the net disposal proceeds and its carrying amount is charged or credited to the statement of income and expenditure.
Investments are classified as current assets if maturity is due within one year or less. If not, they are presented as non-current assets.
(e) Impairment of assets Property, plant and equipment are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment loss is recognised for the amount by which the carrying amount of the asset exceeds its recoverable amount.
32
The recoverable amount is the higher of an asset’s net selling price and value in use. For the purpose of assessing impairment, assets are grouped at the lowest level for which there is separately identifiable cash flows. The impairment loss is charged to the statement of income and expenditure and any subsequent increase is recognised in the statement of income and expenditure.
MAKNA • NATIONAL CANCER COUNCIL
Makna Annual Report 2015 FA.indd 32
4/1/17 4:01 PM
(CONT’D)
NOTES TO THE FINANCIAL STATEMENTS
For The Financial Year Ended 31 December 2015 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) (f) Receivables
(g) Payables
Receivables are measured initial at cost, with the amount of goods and services tax (GST) included, less provision for impairment. The provision is establish when there is objective of evidence that the Society will not be able to collect the amounts due according to the original terms of receivables. Cash flows are included in the statement of cash flows on a gross basis.
Payables are obligations to pay for goods and services that have been acquired in the ordinary course of operation from suppliers. Payables are recognised at cost, with the amount of goods and services tax (GST) included. Cash flows are included in the statement of cash flows on a gross basis.
(h) Finance lease
Leases of motor vehicles where the Society has substantially all the risks and rewards of ownership are classified as finance leases.
Finance leases are capitalised at the lease’s commencement at the lower of the fair value of the leased property and the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate of interest on the remaining balance of the liability. The corresponding rental obligations, net of finance charges, are included in other long-term payables. The interest element of the finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Motor vehicle acquired under finance leases is depreciated over the shorter of the useful life of the asset and the lease term.
(i) Income taxes
Current tax expense is determined according to the tax laws of each jurisdiction in which the Society operates and includes all taxes based upon the taxable income.
ANNUAL REPORT 2015-16
Makna Annual Report 2015 FA.indd 33
33
4/1/17 4:01 PM
(CONT’D)
NOTES TO THE FINANCIAL STATEMENTS
For The Financial Year Ended 31 December 2015 3. RECEIPTS FROM PROJECTS Donation received from projects: - Direct Debit Donor System - Zakat - E-Charity - Sen Saves Lives - Mobile Project - Movember - Payroll Giving - Clothlines - Volunteers - Direct Mail - Tabung Travelling Beruang MAKNA - Exhibition/Pameran - Merchandise & Home Visit - Sponsorship & Research - Others - Ad-hoc - MAKNA Founder’s Run - MAKNA Cancer Survivors Gathering - Klimb for Kanser - Jom Botak - Bursary Com. Mobile (BCM) Team
2015 RM
2014 RM
28,172,327 560,920 265,412 215,696 156,937 151,424 100,253 80,815 73,205 52,354 34,595 26,606 18,380 13,500 10,363 5,590 5,000 200 - - -
25,660,044 181,920 202,853 269,340 106,611 118,580 8,134 154,471 12,724 2,000 285 60,080 267,765 67,443 145,973 45,206 35,487
29,943,577
27,338,916
4. EXPENDITURE Included in expenditure are: Salaries and related costs Audit remuneration Legal fees Provision for impairment of receivables
2015 RM
2014 RM
7,499,136 20,000 1,744 5,898
7,199,323 20,000 3,090 -
Salaries and wages Contribution to Employees’ Provident Fund Other employee benefits
5,843,456 688,705 966,975
5,879,323 658,882 661,118
7,499,136
7,199,323
The employee information is as follow:
34
MAKNA • NATIONAL CANCER COUNCIL
Makna Annual Report 2015 FA.indd 34
4/1/17 4:01 PM
(CONT’D)
NOTES TO THE FINANCIAL STATEMENTS
For The Financial Year Ended 31 December 2015 5. TAXATION
MAKNA has been given exemption on income, other than dividend income, under Paragraph 13 of Schedule 6 of the Income Tax Act, 1967 with effect from 1 January 2001. The taxation charge for the financial year is in respect of dividend income. There is no taxation charge on the income of the Society arising from its operations which is exempted from taxation under the mutuality concept. 2015 2014 RM RM Tax expense: - Current year 8,131 28,790 - Over provision of tax recoverable in prior year 2,018 Taxation charge
10,149
28,790
6. PROPERTY, PLANT AND EQUIPMENT 2015 Building Office renovation Hospital renovation Office equipment Hospital equipment Computer equipment Furniture and fittings Mobile trailer Motor vehicle
2,830,801 - - 2,830,801 267,161 - (264,461) 2,700 593,711 - (593,711) 272,263 31,071 (243,553) 59,781 1,102,943 - (1,069,116) 33,827 623,603 42,160 - 665,763 174,038 169,690 (94,661) 249,067 2,499,500 - - 2,499,500 585,266 254,095 - 839,361
8,949,286
Cost at Cost at 1.1.2015 Additions Write-offs 31.12.2015 RM RM RM RM
497,016
(2,265,502)
7,180,800
Accumulated Accumulated depreciation Charge depreciation 1.1.2015 for the year Write-offs 31.12.2015 RM RM RM RM
Building Office renovation Hospital renovation Office equipment Hospital equipment Computer equipment Furniture and fittings Mobile trailer Motor vehicle
283,080 266,261 593,711 254,762 1,079,300 518,622 143,169 2,445,300 585,266
6,169,471
56,616 - 339,696 900 (264,461) 2,700 - (593,711) 12,147 (243,553) 23,356 9,347 (1,069,116) 19,531 46,463 - 565,085 48,698 (94,661) 97,206 34,400 - 2,479,700 - - 585,266
208,571
(2,265,502)
Net book value
4,112,540 3,068,260
ANNUAL REPORT 2015-16
Makna Annual Report 2015 FA.indd 35
35
4/1/17 4:01 PM
(CONT’D)
NOTES TO THE FINANCIAL STATEMENTS
For The Financial Year Ended 31 December 2015 6. PROPERTY, PLANT AND EQUIPMENT (CONT’D) 2014 Building Office renovation Hospital renovation Office equipment Hospital equipment Computer equipment Furniture and fittings Mobile trailer Motor vehicle
2,830,801 267,161 593,711 261,114 1,099,116 553,065 172,690 2,499,500 585,266
- 2,830,801 - 267,161 - 593,711 11,149 272,263 3,827 1,102,943 70,538 623,603 1,348 174,038 - 2,499,500 - 585,266
8,862,424
86,862
Cost at 1.1.2014 Additions RM RM
36
8,949,286
Accumulated Accumulated depreciation Charge depreciation 1.1.2014 for the year 31.12.2014 RM RM RM
Building Office renovation Hospital renovation Office equipment Hospital equipment Computer equipment Furniture and fittings Mobile trailer Motor vehicle
226,464 265,361 593,711 248,453 1,061,896 472,697 128,195 2,371,900 585,266
5,953,943
56,616 283,080 900 266,261 - 593,711 6,309 254,762 17,404 1,079,300 45,925 518,622 14,974 143,169 73,400 2,445,300 - 585,266
215,528
Net book value
Cost at 31.12.2014 RM
6,169,471 2,779,815
MAKNA has 40,468.6 square metres of donated leasehold land in the Mukim Bentong, Pahang under a 99-year lease period from 2 February 1999 to 1 February 2098 which has not been capitalised in the financial statements. The land cannot be transferred, leased or mortgaged and can only be used for commercial building purposes.
MAKNA • NATIONAL CANCER COUNCIL
Makna Annual Report 2015 FA.indd 36
4/1/17 4:01 PM
(CONT’D)
NOTES TO THE FINANCIAL STATEMENTS
For The Financial Year Ended 31 December 2015 7. INVESTMENTS Quoted unit trusts:
2015 RM
2014 RM
Cost 8,583,426 8,318,180 Provision for impairment (1,151,536) (762,461)
7,431,890
7,555,719
Market value: Quoted unit trusts
7,431,890
7,555,719
8. RECEIVABLES
2015 RM
2014 RM
Debtors 250,660 528,742 Less: Provision for impairment (17,998) (12,100) 232,662 516,642 Prepayments 38,419 58,444 Cash advances 28,318 36,388 Deposits 39,446 31,116 Accrued interest income 826,276 533,004 Dividend receivable 46,875
1,211,996
1,175,594
During the financial year 2014, RM128,449 of debtors which had been fully provided for were written off.
9. AMOUNT DUE FROM RELATED PARTY Amount due from related party Less: Provision for impairment
2015 RM
2014 RM
760,472 (760,472)
745,467 (745,467)
-
-
The amount due from a related party is unsecured, interest free and has no fixed terms of repayment.
ANNUAL REPORT 2015-16
Makna Annual Report 2015 FA.indd 37
37
4/1/17 4:01 PM
(CONT’D)
NOTES TO THE FINANCIAL STATEMENTS
For The Financial Year Ended 31 December 2015 10. CASH AND CASH EQUIVALENTS
2015 RM
2014 RM
Fixed deposits with licensed banks Cash and bank balances
71,955,572 4,910,755
58,197,458 9,805,309
76,866,327
68,002,767
The weighted average interest rate per annum of fixed deposits with licensed banks effective as at the financial year end is 3.72% (2014: 3.57%) per annum. Fixed deposits have an average maturity period of 3 to 12 months (2014: 1 to 12 months). Bank balances are deposits held at call with banks.
11. TRADE AND OTHER PAYABLES
2015 RM
2014 RM
Trade payables Other payables Accrued expenses
1,092,015 1,088,630 159,633
1,188,751 778,030 149,554
2,340,278
2,116,335
12. HIRE PURCHASE PAYABLES The minimum lease payment as at the balance sheet date is as follow: Current Not later than 1 year
2015 RM -
2014 RM 3,238
13. FINANCIAL ASSISTANCE COMMITMENT Financial assistance commitment
38
2015 RM 2,609,400
As at 31 December 2015, the Society is committed to provide financial assistance to patients. The number of months committed is within the range of 6 to 12 months, for an amount of RM150 to RM500 per month.
MAKNA • NATIONAL CANCER COUNCIL
Makna Annual Report 2015 FA.indd 38
4/1/17 4:01 PM
(CONT’D)
NOTES TO THE FINANCIAL STATEMENTS
For The Financial Year Ended 31 December 2015 14. SUBSEQUENT EVENT AFTER THE FINANCIAL YEAR
On 1 March 2016, the Society entered into an agreement with Eemed International Sdn. Bhd. (“the Contractor”) as the “Turnkey Solutions Provider” to design, fabricate, supply, deliver, test and commission two mobile cancer screening units in semi-trailers for a total sum of RM2,544,000. The Contractor is also engaged to obtain the supply, on behalf of the Society, with the agreement of GE Healthcare Sdn. Bhd, for two units of GE Senographe CARE mammography machines from GE Healthcare Sdn. Bhd. for a total sum of RM2,120,000. The project is expected to be completed by 1 September 2016. Upon completion, the Society plans to make available the mammogram services to Sabah and Sarawak.
ANNUAL REPORT 2015-16
Makna Annual Report 2015 FA.indd 39
39
4/1/17 4:01 PM
MAKNA (Majlis Kanser Nasional) or National Cancer Council BG 03A & 05, Ground Floor, Megan Ambassy, No 225, Jalan Ampang 50450 Kuala Lumpur, Malaysia
Makna Annual Report 2015 FA.indd 40
Telephone : +603-2162 9178 Fax : +603-2162 9203 Email : makna@makna.org.my Website : www.makna.org.my
4/1/17 4:01 PM