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Financial statements Jamaica Medical Foundation Limited October 31, 2010


Jamaica Medical Foundation Limited – Financial Statements – October 31, 2010

Contents

Page Independent auditors’ report

1

Statement of financial position

3

Statement of income and accumulated surplus

4

Statement of cash flows

5

Notes to financial statements

6

Additional information – Auditors’ report

12

Additional information – Detailed income and expenditure account

13

Additional information – Schedule of income and expenditure for prostate cancer research fund

14


Independent auditors’ report

To the Members of Jamaica Medical Foundation Limited Report on the Financial Statements

We have audited the accompanying financial statements of Jamaica Medical Foundation Limited, which comprise the statement of financial position as at October 31, 2010, and the statement of comprehensive income, statement of changes in reserves and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) and the Jamaican Companies Act, and for such internal control as management 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 International Standards on Auditing. 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 the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, 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 statements 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


Auditors’ Responsibility (Cont’d)

estimates made by management, 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 Foundation as at October 31, 2010, and of the Foundation’s financial performance, changes in reserves and cash flows for the year then ended in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs). Report on Additional Requirements of the Companies Act

We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit. In our opinion, proper accounting records have been maintained, and the financial statements are in agreement with the accounting records, and give the information required by the Companies Act in the manner so required.

Kingston, Jamaica September 12, 2011

Chartered Accountants


Jamaica Medical Foundation Limited – Financial Statements – October 31, 2010 3

Statement of financial position

Note

2010 $

2009 $

Assets Non-current assets Investments

(4)

14,823,101 14,823,101

12,092,674 12,092,674

Current assets Receivables Taxation recoverable Cash and cash equivalents

(5) (6) (7)

60,931 2,157,446 3,721,422 5,939,799

363,917 1,855,602 3,193,600 5,413,119

Total assets

20,762,900

17,505,793

Reserves Accumulated surplus Total reserves

20,436,625 20,436,625

17,428,349 17,428,349

266,275 266,275

16,275 16,275

60,000 60,000 326,275

61,169 61,169 77,444

20,762,900

17,505,793

Fund Prostate Cancer Research Fund Total fund Current liabilities Payables and accruals Total liabilities Total fund and liabilities Total reserves and liabilities

(8)

(9)

The notes on the accompanying pages 6 to 11 form an integral part of these financial statements. Approved for issue by the Board of Trustees on September 12, 2011 and signed on its behalf by:

______________________) Director

____________________ ) Director


Jamaica Medical Foundation Limited – Financial Statements – October 31, 2010 4

Statement of income and accumulated surplus

Note

Income Fund raising income – banquet Less: Related expenses

Finance income Prostate Cancer Research Fund income – Donations

Gain/(loss) from changes in fair value of investments Loss on disposal of investment

Accumulated surplus at start of year Accumulated surplus at end of year

2009 $

-

1,821,000 1,468,715

-

352,285

(3b)

(10)

(16ii)

Prostate Cancer Research Fund expenses Administrative expenses Surplus for the year before transfer Transfer of Prostate Cancer Research Fund surplus Surplus for the year

2010 $

(11, 16ii) (16)

1,798,011

2,167,918

250,000

18,000

2,048,011

2,538,203

1,872,709 -

(1,308,159) (695)

(662,444) 3,258,276

(1,725) (820,173) 407,451

(250,000) 3,008,276

(16,275) 391,176

17,428,349 20,436,625

17,037,173 17,428,349

The notes on the accompanying pages 6 to 11 form an integral part of these financial statements.


5

Statement of cash flows

2010 $ Cash flows from operating activities: Surplus for the year (Note 16 (ii)) Surplus from Prostate Cancer Research Fund Adjustments for: (Gain)/loss in value of investments Interest and dividends from investments (Note 10)

3,008,276 250,000

(1,872,709) (1,798,011) (412,444)

2009 $

391,176 16,275

1,308,159 (2,167,918) (452,308)

(50,000) (1,169)

5,000 11,169

Net cash used in operating activities

(463,613)

(436,139)

Cash flows from investing activities: Dividends received Interest received (net of withholding tax) Refund of withholding tax Increase in investments Net cash provided by investing activities

943,622 905,531 (857,718) 991,435

760,705 797,512 1,846,132 (2,286,461) 1,117,888

(Increase)/decrease in receivables (Decrease)/increase in payables and accruals

Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year

527,822 3,193,600

681,749 2,511,851

Cash and cash equivalents at end of year (Note 7)

3,721,422

3,193,600

The notes on the accompanying pages 6 to 11 form an integral part of these financial statements.


6

Notes to financial statements

1.

Identification and activities

The Jamaica Medical Foundation Limited (the Foundation) was incorporated under the Laws of Jamaica as a company not having a share capital. It is a charitable organisation supported by medical and private sector individuals and bodies. Through public information activities, the Foundation aims to improve medical knowledge, services and quality of care. The company is domiciled in Jamaica with its principal place of business located at 3 Richmond Avenue, Kingston 10, Jamaica. These financial statements are expressed in Jamaican Dollars. 2.

First time adoption of the International Financial Reporting Standards for Small and Medium-Sized Entities (IFRS for SMEs)

The Institute of Chartered Accountants of Jamaica (ICAJ) has adopted the IFRS for SMEs issued by the International Accounting Standards Board (IASB) for reporting periods beginning on or after 1 January, 2011. Early application is however permissible. The Foundation has decided to apply IFRS for SMEs for financial year ended October 31, 2010. These financial statements have therefore been prepared in compliance with IFRS for SMEs. Previously these financial statements were prepared in accordance with full Interim Standard for Small Companies (ISSC) as adopted by the Institute of Chartered Accountants of Jamaica. The transition from full ISSC to IFRS for SMEs has resulted in some adjustment in the previously reported financial position and financial performance of the Foundation. The adjustments resulting from the change are detailed in Note 16. 3.

Summary of significant accounting policies

The significant accounting policies that have used in the preparation of the financial statements are summarised below. These have been consistently applied for all the years presented. a

Management judgements and sources of estimation uncertainty

When preparing the financial statements management makes estimates and assumptions that affect the amounts reported in the financial statements. The actual results may differ from these estimates. There were no critical judgements, apart from those involving estimation, that management made in the process of applying the company’s accounting policies that have a significant effect on the amounts recognised in the financial statements.


7

The estimates and assumptions which have the most significant risk of causing a material adjustment to the carrying amounts of assets and liabilities relate to estimation of fair value of investments. Details of the estimation of fair value is shown in Note 3(f). b

Income recognition

Income represents income from fund raising events and income from long-term and short-term investments. Income is measured with reference to the fair value of consideration received or receivable and is accounted for in the period to which it relates. c

Financial instruments

A financial instrument is any contract that gives rise to both a financial asset in one entity and a financial liability or equity instrument in another entity. Financial assets and liabilities are recognised in the Foundation’s statement of financial position when it becomes a party to the contractual provisions of the instruments. The financial instruments carried in the statement of financial position are: Financial assets: Investments, receivables and cash and cash equivalents; Financial liabilities: Payables. The particular recognition methods adopted are disclosed in the respective accounting policies associated with each item. d

Cash and cash equivalents

Cash and cash equivalents consist of current and savings account balances, cash on hand and highly liquid short-term deposits with maturity dates of three (3) months or less on average that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. e

Receivables

Receivables are initially recognised at transaction price and subsequently measured at amortised cost. A provision for doubtful debt is recognised when there is an indication that the receivable is impaired. f

Investments

Investments are initially recognised at cost, which includes transactions costs, and subsequently re-measured at fair value based on quoted bid prices. Gains and losses arising from changes in fair value of investments are recognised in surplus or deficit. g

Payables

Payables are initially recognised at transaction price and subsequently measured at amortised cost.


8

4.

Investments Interest rate % p.a. Pan Caribbean Financial Services Limited GOJ INV BD 2018/2019 BP Barita Investments Limited GOJ VR 2013/2014 Series BA Quoted shares

1,021,890

1,037,186

9.69

4,072,248 9,728,963 14,823,101

4,003,799 7,051,689 12,092,674

Receivables 2010 $ Deposit on banquet facilities for 2011 Interest on short-term deposits Pan Caribbean Financial Services Limited Barita Investments Limited Total

6.

2009 $

11.75

Total

5.

2010 $

2009 $

50,000

-

10,931 60,931

155,158 208,759 363,917

Taxation recoverable

i

The Foundation was granted Charitable Organisation status in 1988 under Section 13(i) (q) of the Income Tax Act. In 1992 the Foundation was granted exemption from income tax under Section 12(h) of the Income Tax Act. Taxation recoverable represents tax withheld on interest income earned by the Foundation.

ii

7.

In light of the company’s tax exempt status no provision for deferred tax is included in these financial statements.

Cash and cash equivalents Interest rate % p.a. Cash at bank National Commercial Bank Limited J$ savings account J$ Current account *Prostate cancer – J$ Current account (Note 8) Short-term deposits – NCB Capital Markets Limited Pan Caribbean Financial Services Limited Barita Investment Limited Total

2.65

6.0

2010

2009

$

$

634,886 73,228 256,577

187,463 456,577

94,815 2,659,996 1,920 3,721,422

18,393 2,463,357 67,810 3,193,600

*Included in the Prostate cancer J$ current account is an amount of $NIL (2009 - $440,302) due to the Foundation. Included in the funds of the Foundation at the end of the year is an amount of $9,698 due to the Prostate Cancer Research Fund.


9

8.

Prostate Cancer Research Fund

The Foundation established the Prostate Cancer Research Fund to contribute to the Prostate Cancer Medical Research Study to be carried out in Jamaica in collaboration with the Jamaica Urological Society and the University Hospital of the West Indies. Movement on the Fund balance is as follows: 2010 $ Balance at beginning of year Donations received during the year Expenditure during the year Balance at end of year

16,275 250,000 266,275

2009 $ 18,000 (1,725) 16,275

The above balance is represented by a designated bank account. (Note 7). 9.

Payables and accruals

Registrar of Companies – Fees in respect of annual and other returns Accruals - Accounting fees Other Total

10.

2009 $

10,000 50,000 60,000

10,000 50,000 1,169 61,169

Finance income

Interest income Dividends Total

11.

2010 $

2010 $

2009 $

854,389 943,622 1,798,011

1,407,213 760,705 2,167,918

2010 $

2009 $

50,000

50,000

2010 $

2009 $

41,000 384,419 96,338 140,687 662,444

155,100 215,898 331,834 117,341 820,173

Surplus for the year

Surplus for the year is stated after charging/(crediting):

Key management compensation (Note 13) Auditors’ remuneration

12.

Expenses by nature

Total administrative expenses:

Donations Public relations Meeting expenses Other Total


10

13.

Related party transactions

The members of the Board of Trustees are volunteers. No Trustee has received payment in respect of services to the Foundation, other than by way of reimbursement of incidental expenses incurred in providing such services. The Trustees are referred to as “key management personnel”. (Note 11). 14.

Financial assets and liabilities by categories

i.

Financial assets

Financial assets measured at fair value: Investments Financial assets measured at amortised cost less impairment: Receivables Cash and cash equivalents Total

ii

2010 $

2009 $

14,823,101

12,092,674

60,931 3,721,422 18,605,454

363,917 3,193,600 15,650,191

Financial liabilities 2010 $ Financial liabilities measured at amortised cost Payables Total

15.

2009 $

10,000 10,000

11,169 11,169

Capital management

The Foundation’s capital management objectives are to ensure the Foundation’s ability to continue as a going concern and to sustain future development of the organisation. The Foundation’s Trustees reviews the financial position of the Foundation at regular meetings. The Foundation is not subject to any externally imposed capital requirements. 16.

Transition to the IFRS for SMEs

This is the Foundation’s first financial statements prepared in accordance with the IFRS for SMEs. Previously they were prepared in accordance with ISSC. The Foundation has prepared its opening statement of financial position at the date of transition to the IFRS for SMEs, which is November 1, 2009. The effects of the transition to IFRS for SMEs on total reserves, surplus and cash flows are presented in this section and further explained in the accompanying notes. i Reconciliation of reserves Reserves at the date of transition and October 31, 2009 can be reconciled to the amount reported previously under ISSC as follows:

Total reserves under ISSC Transfer of gain recognised from changes in fair value of investments to surplus Total reserves under IFRS for SMEs

October 31 2009 $

November 1, 2008 $

19,400,985

17,701,650

(1,972,636) 17,428,349

(664,477) 17,037,173


11

ii Reconciliation of surplus or deficit Surplus for the year ended October 31, 2009 can be reconciled to the amount reported previously under ISSC as follows: 2009 $ Surplus for year under ISSC Less: Decrease in fair value of investments Surplus for year under IFRS for SMEs

1,699,335 (1,308,159) 391,176


12

Additional information – Auditors’ report

To the Trustees of Jamaica Medical Foundation Limited On Additional Information The additional information presented on page 13 and 14 has been taken from the accounting records of the Foundation and has been subjected to the tests and other auditing procedures applied in our examination of the financial statements of the Foundation for the year ended October 31, 2010. In our opinion, the said information is fairly presented in all material respects in relation to the financial statements taken as a whole although it is not necessary for a fair presentation of the state of the Foundation’s affairs as at October 31, 2010 or of the results of its operations or cash flows for the year then ended.

Mair Russell Grant Thornton Chartered Accountants

Kingston, Jamaica September 12, 2011


13

Additional information – Detailed income and expenditure account

2010 $ Income Fund raising income – banquet Less: Related expenses

Interest and dividends from investments

Administrative expenses Meeting expenses Accounting fees – current year – prior year Donations Public relations Printing, stationery and office expenses Annual returns fees Bank charges Professional fees Surplus for the year

2009 $

-

1,821,000 1,468,715

-

352,285

1,798,011

2,167,918

1,798,011

2,520,203

96,338 50,000 8,750 41,000 384,419 9,550 15,000 17,387 40,000 662,444

331,834 50,000 7,425 155,100 215,898 8,750 5,000 16,166 30,000 820,173

1,135,567

1,700,030


14

Additional information – Schedule of income and expenditure for prostate cancer research fund

2010 $ Income Donation

Less: Expenses Bank charges Surplus for the year

2009 $

250,000

18,000

250,000

18,000

250,000

1,725 16,275


Š Mair Russell Grant Thornton

Member firm of Grant Thornton International Ltd


Jmf 2010 audit