Oncology Children's Foundation (a company limited by guarantee)
Financial Statements for the Year Ended 30 June 2011
Contents
Director's Report
3
Director's Declaration
7
Declaration by the Chief Executive Officer
8
Auditor's Independence Declaration
9
Statement of Comprehensive Income
10
Statement of Financial Position
11
Statement of Changes in Equity
12
Statement of Cash Flows
13
Notes to the Financial Statements
14
Auditor's Report
31
Page | 2
Directors' Report
The Directors of the Oncology Children's Foundation (the "Foundation") present their report for the financial year ended 30 June 2011.
1.
Directors
The names of the Directors in office at any time during the year and to the date of this report are: Colin Reynolds (Chairman) Phillip Belford Scott Blal<eman Stephen Brassel (resigned 29 March 2011) Peter Nieison (appointed 3 IVlay 2011) Simmone Reynolds Lyndall Stoyles The Directors have been in office since the start of this financial year to the date of this report unless otherwise stated. 2.
Principal Activities
The foundation is established for the public charitable objects that the directors decide having regard to the recommendations of any advisory committee the directors establish. This includes (to the extent they are charitable), but not limited to, funding medical equipment and supporting research programmes into childhood cancer and related research.
3.
Information on Directors
The particulars of the qualifications, experience and special responsibilities of each Director who held office at any time during the year are as follows: Colin Reynolds Chairman, Oncology Children's Foundation since 1993. An Order of Australia recipient. Col Reynolds has dedicated more than 25 years to brightening the lives of children with cancer. As chairman of the Oncology Children's Foundation (OCR), a non-profit organisation he founded in 1993, Col has helped the charity raise more than $10 million for medical research Into childhood cancers in the last five years alone. Prior to founding OCF, Col worked for nearly 30 years as a Tour Coach operator. During this tenure Col looked after many high profile clients, managing the Secret Service convoy for both George Bush and Bill Clinton, and the Papal visit of Pope John Paul. However it was on his way back to the coach depot one afternoon in 1984 that his life changed forever. Col now resides in Townsville in North Queensland establishing the Queensland office for OCF.
page | 3
Directors' Report (cont) Phillip Belford Phillip was previously employed as State Manager of Chubb Security and brings to the Foundation a wealth of experience from a very high level. Phillip is a past National Business Development Manager of In Touch Technology and has certificates in both Business Management and Marketing for Profit from the Australian Institute of Management. He is a member of the Institute of Security Executives. Scott Blakeman Scott has been the National General Manager, Human Resources for Australia and New Zealand at Jardine Lloyd Thompson Pty Ltd since 2009. Prior to this, Scott has held senior HR positions with Telstra Corporation (2005 2008) and The Seven Network (1991 - 2005). Previous employers include Thomas Cook, Century Yuasa Batteries and National Australia Bank. Scott holds a Bachelor of Business, is a certified professional of the Australian Institute of Human Resources (CAHRI) and a member of the Professional Divers Association (PADI). A previous Director of the Oncology Children's Foundation between (2003 and 2007), Scott rejoined as a Director in 2009. Scott has previously held a position as the Seven Network management representative on the Children's Medical Research Institute (CMRI) fundraising committee for Jeans for Genes. Stephen Brassel (resigned 29 March 2011) Stephen joined Tabcorp in 2008 accepting the role as General Manager Marketing and Media for the new wagering division Luxbet.com. In less than 18 months Luxbet grabbed a 10% share of the $5b corporate bookmaking market licensed out of the Northern Territory. Previously Stephen had spent 14 years as Media, Communications & Public Relations Manager of the Sydney Swans, that period covering three Grand Final appearances including the 2005 premiership. Stephen's foray into the world of AFL and the Sydney Swans came after a lengthy period working for the News Limited and Fairfax Media organisations as a senior journalist. He has also authored a number of published books including "A Portrait of Racing", "Tony Lockett" in the Ironbark Legend Series and the Tony Lockett Autobiography. Simmone Reynolds Simmone has a Bachelor of Commerce from the University of New South Wales majoring in Marketing and Hospitality Management. She currently holds a position in the Australian Defence Force. Simmone has held positions with Unilever Australasia, as a National Customer Manager, and Nestle as Category, Channel, Sales Development Manager - Foods. She has travelled throughout Europe, the UK, Africa and Australia. Simmone has been a member of the Defence Force for 9 years and is now a Captain in the Australian Army Reserve. Lyndall Stoyles Lyndall is the Senior Legal Counsel for Patrick Container Ports, with particular experience in corporation and competition law. She is presently completing her Masters in Law. Peter Nielsen (appointed 3 May 2011) Peter Neilson is a Certified Practising Accountant with 18 years of work experience, 11 of those years in senior management. Holding senior roles he has demonstrated strong leadership skill and commercial acumen. He specialises in finance, analysis, planning, strategy, quality, training, business growth and adding value.
Page | 4
Directors' Report (cont) 4.
Meetings of Directors
There were 10 Board meetings of the Foundation between 1 July 2010 and 30 June 2011. The number of meetings attended by each Director was:
Colin Reynolds Phillip Belford Scott Blakeman Stephen Brassel Simmone Reynolds Lyndall Stoyles Peter Neilson
5.
Eligible to Attend 10 10 10 7 10 10 3
Attended 9 6 6 2 1 9 3
Purpose and Objectives
The Foundation's purpose is to provide support to children with cancer and their families through medical research. We are actively increasing the knowledge base and understanding of cancer, building capacity to support childhood cancer research and pursuing innovation in treatment. The focus of the research programs is to translate laboratory research into bedside medicine that will ultimately lead to cures for all childhood cancers, giving all kids with cancer the opportunity to live their dreams. The Foundation is focused on research which will advance knowledge and treatment. The objectives of the Research Program are: Increase the knowledge and understanding of childhood cancer
•
• •
Initiatives Formation of the Childhood Cancer Cytoskeleton Consortium (C4). 0CF-C4 is a consortium of nine investigators who are experts in their area. Each brings particular knowledge of the cytoskeleton and the potential synergies are limitless. OCF funds a research fellow in each location to apply the knowledge of that group to the structure of the childhood cancer cell Funding of $900,000 per annum to support research fellows Appointment of a network co-ordinator in collaboration with the NSW Office for Science and Medical Research Future Initiatives Expansion of 0CF-C4 funding to three years rather than 12 months Application for linkage grants Funding of PhD students Funding of travel grants to support exchange of knowledge between laboratories Dedicated cytoskeleton research meetings and conferences
Building capacity to support childhood cancer research
•
Initiatives Funding of the Tumour Bank and Children's Hospital at Westmead
• • •
Future Initiatives Review of tumour bank funding and operations Identify opportunities for efficiency and collaboration in tissue banking Identify other critical resources required to increase research capacity Page|5
Directors' Report (cont) Pursue innovation in treatment and translate research into outcomes
• • •
• •
Initiatives Cancer Gene Therapy Program at The Children's Hospital at Westmead; using gene technology to protect bone marrow in the presence of chemotherapy. Muscle Stem Cell Program at the University of New South Wales ("UNSW"); conferring muscle stem cells with the ability to resist and regenerate amid chemotherapy treatment and prevent muscle wasting. Drug Development Program at UNSW; targeting the cancer cell cytoskeleton, disabling core functions, whilst preserving normal cells. Future Initiatives Research Advisory Committee to undertake review of all programs. This will provide advice as to future direction Provide a mechanism to identify innovative treatment options outside existing partnerships
OCF's governance in ensuring objectives are met is guided by eminent medical and research experts who form OCF's Research Advisory Committee.
6.
Auditor Independence Declaration
A copy of the auditor independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 9.
Signed in accordance with a resolution of the Board of Directors.
Peter Njelson Chief B<ecutive Officer and Director
6* September 2011
Page | 6
Directors' Declaration to tlie IVIembers of Oncology Children's Foundation The Directors of the company declare that: 1.
The financial statements and notes as set out on pages 10 to 30 are in accordance with the Corporations Act 2001, and (a) (b)
2.
comply with Accounting Standards and the Corporations Regulations 2001; and give a true and fair view of the financial position as at 30 June 2011 and of the performance for the year ended on that date of the Foundation.
In the Directors' opinion there are reasonable grounds to believe that the Foundation will be able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
Peter^ielson Chief Executive Officer and Director
6* September 2011
Page | 7
Declaration by the Chief Executive Officer in respect of fundraising appeals pursuant to Section 7(5) of the Charitable Fundraising Act 1991 - Regulations I, Peter Neilson, Chief Executive Officer of the Oncology Children's Foundation declare, in my opinion: (a)
The financial report gives a true and fair view of all income and expenditure of the Foundation with respect to fundraising appeals, for the financial year ended 30 June 2011;
(b)
The statement of financial position gives a true and fair view of the state of affairs with respect to fundraising appeals, as at 30 June 2011;
(c)
The provisions of the Charitable Fundraising Act 1991 and the Regulations and the conditions attached to the authority have been complied with for the period 1 July 2010 to 30 June 2011; and
(d)
The internal controls exercised by the Foundation are appropriate and effective in accounting for all income received.
It is not always practicable for the Foundation to establish accounting control over all sources of fundraising activities prior to receipt of the funds by employees of the Foundation.
Pete/rNeilson Chief Executive Officer and Director
6'" September 2011
Page|8
m •S William
Buck
AUDITOR'S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE MEMBERS OF ONCOLOGY CHILDREN'S FOUNDATION I declare that, to the best of my knowledge and belief, during the year ended 30 June 2011 there have been: — no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and — no contraventions of any applicable code of professional conduct in relation to the audit.
MJAQ/^
UM^cky
William Buck Chartered Accountants ABN 16 021 300 521
L.E. Tutt Partner Sydney, 6 September 2011
Sydney Melbourne Brisbane Perth Adelaide Auckland
Level 29,66 Goulburn Street, Sydney NSW 2000 Telephone: +61 2 8263 4000 • Facsimile: +61 2 8263 4111 williambuck.com William Buck Is an association of independent firms, eacli trading under tlie name of William Buck across Australia and New Zealand with affiliated offices worldwide. Liability limited by a scheme approved under Professional Standards Legislation other than for acts or omissions of financial services licensees.
STRATEGIC THINKING | TAILORED ADVICE | INTEGRATED SOLUTIONS
PraxitK Paqe
9
MEMBER''
attlBA. ALLIANCE OF INDEPENDENT FIRMS
CHARTERED ACCOUNTANTS & ADVISORS
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2011 Note
2011
2010
$
$
8,500,947 1,362,492 832,267 13,150
7,949,681 1,228,472 531,848 44,950
10,708,856
9,754,951
Other income
96,879 141,102
52,057 57,307
Total Income
10,946,837
9,864,315
6,068,300 2,445,000 960,091 622,765 48,240 819,121 10,963,517
5,277,352 2,109,816 792,930 412,238 31,126 629,001 9,252,463
(16,680)
611,852
Total Comprehensive Income for the Year
(16,680)
611,852
(Deficit) / Surplus attributable to members of the entity
(16,680)
611,852
(16,680)
611,852
Income Donations Fundraising General Sales Events Total Interest income
Expenses Fundraising Donations Employee expenses Cost of sales Depreciation & amortisation Other Total Expenses Net (Deficit) / Surplus
11
Other Comprehensive Income for the Year, Net of Tax
Total Comprehensive Income attributable to members of the entity
The accompanying notes form part of these financial statements.
page | 10
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2011 Note
2011
2010
$
$
Current Assets Cash and cash equivalents
1,740,083
1,723,671
Trade and other receivables
82,944
11,267
Inventory
25,303
59,265
332,077
768,945
2,180,407
2,563,148
94,947
128,168
Other current assets Total Current Assets Non-Current Assets Property, Plant & Equipment Intangible assets
2,314 97,261
128,168
2,277,668
2,691,316
567,125
970,128
Trade and other payables
398,619
502,948
Deferred income
265,681
143,110
1,231,425
1,616,186
Provisions
2,595
14,802
Total Non-Current Liabilities
2,595
14,802
Total Liabilities
1,234,020
1,630,988
Net Assets
1,043,648
1,060,328
1,043,648
1,060,328
Total Non-Current Assets Total Assets Current Liabilities
Provisions Total Current Liabilities Non-Current Liabilities
Accumulated Funds Retained surplus
The accompanying notes form part of these financial statements.
page 111
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2011
Note
Balance at 1 July 2009 Net surplus for the year
Retained Surplus
448,476 611,852
Restated retained surplus 30 June 2010
1,060,328
Balance 1 July 2010
1,060,328
Net deficit for the year Retained surplus 30 June 2011
(16,680) 1,043,648
The accompanying notes form part of these financial statements.
Page112
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2011 Note
CASH FLOW FROM OPERATING ACTIVITIES Cash Receipts from Operations Cash Payments from Operations Interest Received Net cash provided by operating activities
15
2011
2010
$
$
10,673,952 (10,709,870) 96,879 60,961
9,825,046 (9,167,312) 52,057
(85,861)
(88,179)
(2,400) 43,712
31,200
(44,549)
(56,979)
709,791
CASH FLOW FROM INVESTING ACTIVITIES Payments for property, plant & equipment Payments for intangible assets Proceeds from sale of property, plant & equipment Net cash (used In) Investing activities
-
Net increase in cash and cash equivalents held Cash and cash equivalents at the beginning of the financial year
16,412
652,812
1,723,671
1,070,859
Cash and cash equivalents at the end of the financial year
1,740,083
1,723,671
The accompanying notes form part of these financial statements
page 113
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 NOTE 1:
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements cover Oncology Children's Foundation, a company limited by guarantee, incorporated and domiciled in Australia. Basis of Preparation The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards, including Australian Accounting Interpretations and the Corporations Act 2001. Australian Accounting Standards set out accounting policies that the Australian Accounting Standards Board ("AASB") has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless othenwise stated. The financial statements have been prepared on an accruals basis and are based on historical costs, modified where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities in the preparation of the financial statements. The accounting policies have been consistently applied, unless othenwise stated. The financial report was authorised for issue on 6* September 2011 by the Board of Directors.
Accounting Policies (a)
Income Tax
The Foundation is a public benevolent organisation and is exempt from income tax by virtue of Section 50-B of the Income Tax Assessment Act, 1997. (b)
Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses. Plant and equipment Plant and equipment are measured on the cost basis less accumulated depreciation and impairment losses. The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets' employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Foundation and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred. page | 14
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 NOTE 1:
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont)
(c)
Depreciation
The depreciable amount of all fixed assets and capitalised leased assets is depreciated on a straight line basis over their useful lives to the Foundation commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset
Depreciation Rate
Furniture & fixtures Office equipment Motor vehicles
15% 20% - 40% 20%
The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. A formal assessment of recoverable amount made when impairment indicators are present (refer to Note 1 (f) for details of impairment). Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the statement of comprehensive income. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. (d)
Leases
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset (but not the legal ownership) are transferred to the Foundation are classified as finance leases. Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased property or present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period. Leased assets are depreciated on a straight line basis over the shorter of their estimated useful lives or the lease term. Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred. Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term.
page 115
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 NOTE 1:
(e)
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont)
Financial instruments
Recognition and initial measurement Financial instruments, incorporating financial assets and financial liabilities, are recognised when the Foundation becomes a party to the contractual provisions of the instrument. Trade date accounting is adopted for financial assets that are delivered within timeframes established by marketplace convention. Financial instruments are initially measured at fair value plus transactions costs where the instrument is not classified as at fair value through profit or loss. Transaction costs related to instruments classified as at fair value through profit or loss are expensed to profit or loss immediately. Financial instruments are classified and measured as set out below. Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the Foundation no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expire. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of noncash assets or liabilities assumed, is recognised in profit or loss. Classification and subsequent measurement (i)
Financial assets at fair value through profit and loss Financial assets are classified at fair value through profit or loss when they are held for trading for the purpose of short term profit taking, where they are derivatives not held for hedging purposes, or designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Realised and unrealised gains and losses arising from changes in fair value are included in profit or loss in the period in which they arise.
(ii)
Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.
(ill)
Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the Foundation's intention to hold these investments to maturity. They are subsequently measured at amortised cost using the effective interest rate method.
(iv)
Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either designated as such or that are not classified in any of the other categories. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.
page 116
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 NOTE 1:
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont)
(e)
Financial instruments (cont) (iv)
Available-for-sale financial assets (cont.) They are subsequently measured at fair value with changes in such fair value (ie gains or losses) recognised in other comprehensive income (except for impairment losses and foreign exchange gains or losses). When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other comprehensive income is reclassified into profit or loss.
(v) Financial liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost using the effective interest rate method. Fair value Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm's length transactions, reference to similar instruments and option pricing models. Impairment At the end of each reporting period, the Foundation assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a significant or prolonged decline in the value of the instrument is considered to determine whether impairment has arisen, impairment losses are recognised in the statement of comprehensive income.
(f)
Impairment of Assets
At the end of each reporting penod, the Foundation reviews the carrying values of its tangible and Intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the asset's carrying value. Any excess of the asset's carrying value over its recoverable amount is expensed to the statement of comprehensive income. Where it is not possible to estimate the recoverable amount of an individual asset, the Foundation estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Page]17
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 NOTE 1:
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont)
(g)
Employee Benefits
Provision is made for the Foundation's liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for these benefits. Those cash flows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows.
(h)
Provisions
Provisions are recognised when the Foundation has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. The Foundation provides funding for research, which due to the timing of the funding, can be either fully or partially unpaid at the end of the reporting period. Provision is made for the Foundation's liability for unpaid awards at the end of the reporting period. (i)
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, and other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position. (j)
Revenue
Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods and the cessation of all involvement in those goods. Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets, is the rate inherent in the instrument. Donations, appeals and bequests are recognised on a receipt basis. Revenue from the rendering of a service is recognised upon the delivery of the service to the customers. All revenue is stated net of the amount of goods and services tax (GST). (k)
Inventories
Inventories are measured at the lower of cost and current replacement cost. Inventories acquired at no cost or for nominal consideration are valued at the current replacement cost at the date of acquisition.
Page | 18
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 NOTES 1:
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
(I)
Goods and Services Tax
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. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. (m)
Intangibles
Software Software is recorded at cost. Software has a finite life and is carried at cost less accumulated amortisation and any impairment losses. It has an estimated useful life of between one and three years. It is assessed annually for impairment. (n)
Trade and Other Payables
Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the Foundation during the reporting period which remain unpaid. The balance is recognised as a currently liability with the amounts normally paid within 30 days of recognition of the liability.
(o)
Comparative figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.
(p)
Critical accounting estimates and judgments
The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Foundation. Key estimates - impairment The Foundation assesses impairment at the end of each reporting period by evaluating conditions specific to the Foundation that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates.
Page 119
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 NOTES 1:
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
(q)
Adoption of New and Revised Accounting Standards
The AASB has issued new and amended accounting standards and interpretations that have mandatory application dates for future reporting periods and which the Foundation has decided not to early adopt. A discussion of those future requirements and their impact on the Foundation is as follows. AASB 2011-4 Amendments to Australian Accounting Standards to Remove individual Key Management Personnel Disclosure Requirements [AASB 124] (applicable for annual reporting periods commencing on or after 1 July 2013). This standard removes all the individual key management personnel disclosures contained in Aus paragraphs 29.1 to 29.9.3 of AASB 124. The changes apply to each disclosing entity, or group of which a disclosing entity is the parent that is required to prepare financial reports in accordance with Part 2I\/I.3 of the Corporations Act for their first annual reporting period beginning on or after 1 July 2013.
page | 20
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 NOTE 2:
OTHER EXPENSES
Doubtful debts expense Lease expense Auditor Remuneration Audit Services Other Services Total Auditor Remuneration
NOTE 3:
2010
$
$
47,051
22,620 45,150
20,000
67,195 15,818
20,000
83,013
2011
2010
$
$
CASH AND CASH EQUIVALENTS
Cash on hand Cash at bank
NOTE 4:
2011
1,462
1,100
1,738,621
1,722,571
1,740,083
1,723,671
TRADE AND OTHER RECEIVABLES 2010
2011 Current Trade receivables Provision for impairment
$ 101,728 (18,784)
$ 29,354 (18,784)
82,944
10,570 697
Other receivables
11,267
82,944
Total
Gross Amount
Past due and Impaired
2011 Receivables
101,728
18,784
2010 Receivables
29,354
18,784
31-60
6,600
61-90
>90
Within Initial trade terms
444
82,500
180
3,790
The Foundation does not hold any financial assets whose terms have been renegotiated, but which otherwise be past due and Impaired. There are no balances within receivables that are impaired and not past due. It is expected that these balances will be received when due.
page|21
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 NOTE 5:
OTHER CURRENT ASSETS
Deposits paid Accrued interest Prepayments GST receivable
2011
2010
$
$
43,806
24,996 9,661 592,982
7,597 38,854 241,820
141,306
332,077
NOTE 6:
768,945
PROPERTY, PLANT & EQUIPMENT
2011 $
2010 $
Office equipment (at cost) Less: accumulated depreciation
84,381 (42,355) 42,026
37,911 (17,399) 20,512
Furniture and fittings (at cost) Less: accumulated depreciation
32,830 (8,435) 24,395
22,933 (3,878) 19,055
Motor vehicles (at cost) Less: accumulated depreciation
29,493 (967) 28,526
107,859 (19,258) 88,601
Total
94,947
128,168
Movements in Carrying Amounts
Office equipment
Furniture and fittings
Motor vehicles
Total
$
Carrying amount at start of the year Additions Disposals Depreciation expense Depreciation on disposed assets
$ 20,512 46,470 (24,956) -
$
$ 19,055 9,898 (4,558) -
88,601 29,493 (107,859) (18,641) 36,932
128,168 85,861 (107,859) (48,155) 36,932
Carrying amount at the end of the year
42,026
24,395
28,526
94,947
page | 22
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 NOTE 7:
INTANGIBLE ASSETS 2011 $
Computer software - at cost Accumulated amortisation Net carrying value
NOTE 8:
2010 $
2,400 (86) 2,314
TRADE & OTHER PAYABLES
Trade payables Accrued and sundry expenses PAYG payable Employee performance payments
2011
2010
$
$
328,759 224,834 13,532
665,247 138,627 11,239 155,015 970,128
567,125
NOTE 9:
PROVISIONS
Current Research & related expenditure provision Employee benefits provision Legal provision
Non Current Employee benefits provision Total Provisions
2011
2010
$ 102,991 42,065 120,625 265,681
$ 75,000 68,110 143,110
2,595
14,802
268,276
157,912
Legal Provision Subsequent to the end of the reporting period the Foundation settled a claim with a former employee and this has been fully provided at the end of the reporting period.
page|23
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 NOTE 10:
RESULTS OF ACTIVITIES 2011
1)
2)
Raffles Gross Revenue from Raffles Less: Direct Costs of Raffles (prizes, call centre, printing, mailing, bank and merchant fees) Gross Surplus from Raffles Less: Administration Surplus from Raffles
Merchandise Gross Revenue from Merchandise Less: Direct Costs of IVIerchandise Gross Surplus from Merchandise Less: Administration Surplus from Merchandise
3)
Donations Gross Revenue from Donations Less: Direct Costs of Donations Gross Surplus from Donations Less: Administration
8,500,947
7,949,711
5,640,379 2,860,568 674,976
4,936,234 3,013,477 543,419
Other Income Interest and Other Income Gross Surplus from Interest and Other Less: Administration Surplus from Other Income
2,470,058
2,185,592
909,206 217,035
558,238 135,754
692,171 25,972
422,484 14,945 407,539
666,199
1,300,582 93,990
1,387,333 148,709 1,238,624 17,796
1,206,592 10,347 1,196,245
1,220,828
Surplus from Donations
4)
2010 $
55,784 55,784
149,352 149,352
Surplus Available
149,352
55,784
4,221,971
4,129,626
Charitable Activities: Total Expenditure Benevolent Activities: Bears to Children in Hospitals Administration Benevolent Activity Expenditure
461,199 55,191
262,995 28,953
516,390
291,948
Page|24
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S FOR T H E Y E A R E N D E D 30 J U N E 2011 NOTE 10:
RESULTS OF ACTIVITIES (continued) 2010
2011
$ Researcli: Funding of Research into Children's Cancer Administration Research Activity Expenditure
Awareness Raising: Awareness and Events Administration
2,445,000
2,109,816 232,265
292,590 2,737,590
2,342,081
796,104 87,641
879,431 105,240
Awareness Raising Expenditure
984,671
883,745
(Deficit) / Surplus Available for Future Charitable Activities
(16,680)
611,852
Charitable Expenditure Summary: Benevolent Activities Research Awareness Raising
516,390 2,737,590 984,671
291,948 2,342,081
883,745 3,517,774
4,238,651
COMPARATIVE FIGURES AND PERCENTAGES Re NSW Office of Charities. Department of Gaminq and Racinq - Best Practice Guidelines for Charitable Orqanlsations 7-660:
2011 $
2010
%
$
%
Comparison Total Costs of Charitable Activities to Total Income Total Revenue Charitable Activities Expenditure
10,946,837 4,238,651
39%
9,864,315 3,517,774
36%
Comparison Total Costs of Charitable Activities to Total Expenditure Total Expenditure Charitable Activities Expenditure
10,963,517 4,238,651
39%
9,252,463 3,517,774
38%
Page | 25
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 30 J U N E 2011 NOTE 10:
RESULTS OF ACTIVITIES (continued)
COMPARATIVE FIGURES AND PERCENTAGES Re NSW Office of Charities. Department of Gaming and Racing - Best Practice Guidelines for Charitable Organisations 7-660:
2011 $ Comparison Total Costs of Fundraising (Raffles, Merchandise, Donations) To Gross Income From Fundraising Gross Income from Fundraising Charitable Activities Expenditure
0,797,486 6,724,867
Raffles Gross Income from Raffles Total Costs of Raffles
8,500,947 6,315,355
Merchandise Gross Income from Merchandise Total Costs of Merchandise Donations Gross Income from Donations Total Costs of Donations
Comparison Net Surplus from Fundraising (Raffles. Merchandise. Donations) To Gross Income From Fundraising Gross Income from Fundraising Net Surplus from Fundraising
2010 %
$
62%
9,808,531 5,734,689
58%
74%
7,949,711 5,479,653
69%
27%
558,238 150,698
27%
12%
1,300,582 104,337
8%
10,797,486 4,072,618
38%
9,808,531 4,073,842
42%
8,500,947 2,185,592
26%
7,949,711 2,470,059
31%
909,206 666,199
73%
558,238 407,540
73%
1,387,333 1,220,828
88%
1,300,582 1,196,244
92%
909,206 243,007
1,387,333 166,505
Raffles Gross Income from Raffles Net Surplus from Raffles Merchandise Gross Income from Merchandise Net Surplus from Merchandise Donations Gross Income from Donations Net Surplus from Donations
Page|26
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011
NOTE 11:
DONATIONS EXPENSES 2010
2011 Westmead Children's Hospital University of NSW Childhood Cancer Cytoskeleton Consortium
NOTE 12:
$
$
865,000 980,000
965,000 675,000
600,000 2,445,000
469,816 2,109,816
LEASE COMMITMENTS
Operating Lease Commitments Non-cancellable operating leases contracted for but not capitalised in the financial statements Payable: minimum lease payment: Not later than 12 months
12,168
46,350
12,168
46,350
Between 12 months and 5 years Greater than 5 years
NOTE 13:
KEY MANAGEMENT PERSONNEL COMPENSATION Short Term Benefits
2011 Total Compensation 2010 Total Compensation
NOTE 14:
Other Long Term Benefits
Termination Benefits
Total
$
PostEmployment Benefits $
$
$
269,474 395,468
59,538 30,520
-
223,946
$ 552,958 425,988
RELATED PARTY DISCLOSURES
During the year ended 30 June 2011 the following related party transactions occurred: • A related party to a former key management personnel performed cleaning services for the Foundation for which they were remunerated. • A Foundation motor vehicle was disposed to a former key management personnel for market value at a consideration of $29,606.
page | 27
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011
NOTE 15:
CASH FLOW INFORMATION
Reconciliation of Cashi Flow from Operations 2011 $
2010 $
(16,680)
611,852
48,240 (2,388) 29,606
31,126
(71,677) 33,963 436,868 (403,004) 110,363 (104,330)
12,786 (57,313) (501,075) 327,896 103,064 180,697
60,961
709,791
Reconciliation of cash flow from operations Total Comprehensive income for the year Non-cash flows in profit - Depreciation and amortisation - Net(Profit) on disposal of non-current assets - Other Changes in assets & liabilities: (increase)/decrease in trade & other receivables (increase)/decrease in inventories (increase)/decrease in other assets (decrease)/increase in trade & other payables (decrease)/increase in provisions (decrease)/increase in other liabilities
NOTE 16:
758 "
CONTINGENT LIABILITIES
As at the reporting date the Foundation Directors were not aware of any contingent liabilities.
NOTE 17:
EVENTS SUBSEQUENT TO THE END OF THE REPORTING PERIOD
As detailed in Note 9 the Foundation settled a claim with a former employee subsequent to the reporting date and this amount has been fully provided at the end of the reporting period.
Page | 28
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011
NOTE 18: ).
FINANCIAL INSTRUMENTS
Financial Risk IVIanagement The Foundation's financial instruments consist mainly of deposits with banks, local money market instruments, and short-term investments, accounts receivable and payable. The totals for each category of financial instruments measured in accordance with AASB 139, as detailed in the accounting policies to these financial statements, are as follows:
2011
2010
$
$
Cash and Cash Equivalents
1,740,083
1,723,671
Total Financial Assets
1,740,083
1,723,671
Trade and other payables
567,125
970,128
Total Financial Liabilities
567,125
970,128
Financial Assets
Financial Liabilities
The Foundation does not have any derivative instruments at 30 June 2011 (2010: Nil). i-
Financial Risk Management Policies The Directors of the Board meet on a regular basis to analyse currency and interest rate exposure and to evaluate treasury management strategies in the context of the most recent economic conditions and forecasts.
ii-
Financial Risks The main risks the Foundation is exposed to through its financial instruments are interest rate risk, liquidity risk, credit risk and price risk. The Foundation is not exposed to fluctuations in foreign currencies. Interest rate risk The Foundation is not exposed to material interest rate risk. Liquidity risk The Foundation manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are maintained. Credit risk The maximum exposure to credit risk, excluding the value of any collateral or other security, at reporting date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. The Foundation does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into by the Foundation. Price risk The Foundation is not exposed to any material commodity price risk.
Page | 29
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 NOTE 18:
FINANCIAL INSTRUMENTS (cont)
b. Net Fair Value The net fair value of investments has been valued at the quoted market bid price at the end of the reporting period adjusted for the transaction costs expected to be incurred. For other assets and other liabilities the net fair value approximates their carrying values. No financial assets and financial liabilities are readily traded on organised markets in standardised form other than listed investments. The aggregate net fair value and carrying amounts of financial assets is disclosed in the statement of financial position. NOTE 19:
CAPITAL MANAGEMENT
Management controls the capital of the Foundation to ensure that adequate cash flows are generated to fund research programs and that returns from investments are maximised. Risk management policies are approved and reviewed by the Board on a regular basis. These include credit risk policies and future cash flow requirements. Management effectively manages the Foundation's capital by assessing the Foundation's financial risks and responding to changes in these risks and in the market. There have been no changes in the strategy adopted by management to control the capital of the Foundation since the previous year.
NOTE 20:
COMPANY DETAILS
Oncology Children's Foundation Unit 2 36 O'Riordan Street Alexandria NSW 2015
NOTE 21:
MEMBERS' GUARANTEE
The company is limited by guarantee. If the company is wound up, the constitution states that each member is required to contribute a maximum of $100 each towards meeting any outstanding obligations of the company. At 30 June 2011, the number of members was 4 (2010: 9).
Page | 30
m â&#x20AC;˘: William
Buck
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ONCOLOGY CHILDREN'S FOUNDATION
Report on the Financial Report We have audited the accompanying financial report of Oncology Children's Foundation, which comprises the statements of financial position as at 30 June 2011, the statements of comprehensive income, the statements of changes in equity and the statements of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, 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. 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. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about 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 accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.
Sydney Melbourne Brisbane Perth Adelaide Auckland
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our modified audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.
Level 29,66 Goulburn Street, Sydney NSW 2000 Telephone: +61 2 8263 4000 â&#x20AC;˘ Facsimile: +61 2 8263 4111 wllliambuck.com Wiiiiam Buci< is an association of independent firms, eacli trading under the name of William Bucl< across Australia and New Zealand with affiliated offices worldwide. Liability limited by a scheme approved under Professional Standards Legislation other than for acts or omissions of financial services licensees.
STRATEGIC THINKING | TAILORED ADVICE | INTEGRATED SOLUTIONS
^ , ^PraxitK, Page 31 memER.' ^
'
GLOBAL ALLIANCE OF INDEPENDENT FIRMS
CHARTERED ACCOUNTANTS & ADVISORS
oâ&#x20AC;˘S William
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ONCOLOGY CHILDREN'S FOUNDATION (CONT) Basis for Qualified Opinion Fundraising Income Fundraising is a significant source of income for the Oncology Children's Foundation. The Foundation has determined that it is impractical to establish controls over the collection of all fundraising income prior to the income being recorded in the Foundation's financial records. Accordingly, the evidence available to us regarding revenue from these sources was limited to amounts already recorded in the Foundation's financial records, and our audit procedures with respect to fundraising income were restricted to these amounts. We are therefore unable to express an opinion as to whether the fundraising and bequest income recognised by the Oncology Children's Foundation is complete. Related Party Transactions Due to a limitation of scope, which we consider to be material but not persuasive, we have been unable to gain sufficient appropriate audit evidence in respect of the completeness of related party disclosures required by the Accounting Standards AASB 124 "Related Party Disclosures". Qualified Audit Opinion Pursuant to the Corporations Act 2001 In our opinion, except for the possible effects of the matters described above in the basis for qualified opinion paragraph, the financial report of Oncology Children's Foundation is in accordance with the Corporations Act 2001, including: a.
giving a true and fair view of the Foundation's financial position as at 30 June 2011 and of its performance for the year ended on that date; and
b.
complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001.
Qualified Audit Opinion Pursuant to the Charitable Fundraising Act 1991 (NSW) In our opinion, except for the possible effects of the matters described above: a.
the financial report of Oncology Children's Foundation shows a true and fair view of the financial result of fundraising appeals for the year ended 30 June 2011 as required by the Charitable Fundraising Act 1991 (NSW);
b.
the financial report agrees to the underlying financial records of Oncology Children's Foundation, that have been properly kept, in all material respects, in accordance with the Charitable Fundraising Act 1991 (NSW) and the Charitable Fundraising Regulations 1963 (NSW) for the year ended 30 June 2011;
Page|32
Buck
â&#x20AC;˘; William Buck INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ONCOLOGY CHILDREN'S FOUNDATION (CONT) c.
monies received by Oncology Children's Foundation, as a result of fundraising appeals conducted during the year ended 30 June 2011, have been properly accounted for and applied, in all material respects, in accordance with the Charitable Fundraising Act 1991 (NSW) and Charitable Fundraising Regulation 1993 (NSW); and
d.
there are reasonable grounds to believe that Oncology Children's Foundation will be able to pay its debts as and when they fall due.
Jj{J.u(jcm pMci William Buck Chartered Accountants ABN 16 021 300 521
L. E. Tutt Partner Sydney, 6 day of September, 2011
Page|33
The Kidsâ&#x20AC;&#x2122; Cancer Project 1800 651 158 Ground Floor, 5-11 Mentmore Avenue Rosebery NSW 2018 www.thekidscancerproject.org.au ABN 13 061 138 181