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Jamaica Medical Foundation Limited Financial statements October 31, 2011


Jamaica Medical Foundation Limited

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

11

Additional information – Detailed income and expenditure account

12

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

13


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, 2011, and the statement of comprehensive income and accumulated surplus 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 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, 2011, 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 June 20, 2012

Chartered Accountants


Jamaica Medical Foundation Limited

Statement of financial position as at October 31

Note

2011 $

Assets Non-current assets Investments

(3)

19,128,910 19,128,910

14,823,101 14,823,101

Current assets Receivables Taxation recoverable Cash and cash equivalents

(4) (5) (6)

7,120 2,308,675 3,137,159 5,452,954

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

Total assets

24,581,864

20,762,900

Reserves Accumulated surplus Total reserves

24,250,964 24,250,964

20,436,625 20,436,625

(7)

266,275 266,275

266,275 266,275

(8)

64,625 64,625 330,900

60,000 60,000 326,275

24,581,864

20,762,900

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

2010 $

The notes on the accompanying pages 6 to 10 form an integral part of these financial statements. Approved for issue by the Board of Trustees on June 20, 2012 and signed on its behalf by:

____________________________ Oliver E. Jones Chairman

________________________ Lloyd A. Vermont, Snr. Hon. Secretary

3


Jamaica Medical Foundation Limited

Statement of income and accumulated surplus for year ended October 31

Note

Income Fund raising income – banquet Less: Related expenses

2011 $

(2) 2,036,000 (1,528,695) 507,305

Finance income Prostate Cancer Research Fund income – Donations

(9)

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

1,528,206 -

Gain from changes in fair value of investments Foreign exchange loss Administrative and other expenses Surplus for the year before transfer Transfer of Prostate Cancer Research Fund surplus Surplus for the year

2010 $

(10)

1,798,011 250,000

2,035,511

2,048,011

2,880,290 (1,487) (1,099,975) 3,814,339

1,872,709 (662,444) 3,258,276

3,814,339

(250,000) 3,008,276

20,436,625 24,250,964

17,428,349 20,436,625

The notes on the accompanying pages 6 to 10 form an integral part of these financial statements.

4


Jamaica Medical Foundation Limited

Statement of cash flows for year ended October 31

2011 $ Cash flows from operating activities: Surplus for the year Surplus from Prostate Cancer Research Fund Adjustments for: Gain in value of investments Interest and dividends from investments (Note 9)

Decrease/(increase) in receivables Increase /(decrease) in payables and accruals Net cash used in operating activities Cash flows from investing activities: Dividends received Interest received (net of withholding tax) Increase in investments Net cash (used in)/ provided by investing activities

2010 $

3,814,339 -

3,008,276 250,000

(2,880,290) (1,528,206) (594,157)

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

50,000 4,625

(50,000) (1,169)

(539,532)

(463,613)

927,099 453,689 (1,425,519) (44,731)

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

Net (decrease)/ increase in cash and cash equivalents Cash and cash equivalents at beginning of year

(584,263) 3,721,422

527,822 3,193,600

Cash and cash equivalents at end of year (Note 6)

3,137,159

3,721,422

The notes on the accompanying pages 6 to 10 form an integral part of these financial statements.

5


Jamaica Medical Foundation Limited

Notes to the 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 Foundation is domiciled in Jamaica with its principal place of business located at 3 Richmond Avenue, Kingston 10, Jamaica. The affairs of the Foundation are managed by a related entity. Except where otherwise stated these financial statements are expressed in Jamaican Dollars. 2.

Summary of significant accounting policies

The financial statements are prepared in accordance with International Financial Reporting Standard for Small and Medium-Sized Entities (IFRS for SMEs) issued by the International Accounting Standards Board (IASB). The significant accounting policies that have used in the preparation of these 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 Foundation’s accounting policies that have a significant effect on the amounts recognised in the financial statements. 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 2f. 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 6


Jamaica Medical Foundation Limited

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 and accruals. 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 and accruals

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

Foreign currency

Transactions in foreign currencies are converted at the rates of exchange ruling at the dates of those transactions. Foreign currency balances are translated at the rates of exchange ruling at the end of the reporting period. Exchange differences as a result of fluctuations in exchange rates are reflected in surplus deficit. 3.

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 Scotia Investments Jamaica Limited Caribbean Income Fund (US$11,780) Quoted shares (Note 3i) Total

2011 $

2010 $

7.860

1,009,690

1,021,890

7.735

4,038,145

4,072,248

1,016,384 13,064,691 19,128,910

9,728,963 14,823,101

7


Jamaica Medical Foundation Limited

3i.

Quoted Shares 2011 Number of shares Carerras Group Limited NCB Jamaica Limited Scotia Group Jamaica Limited JMMB Securities Limited – 12% preference shares JMMB Securities Limited – 8.75% preference shares

5,797,350 2,908,770

87,190 90,437

4,494,644 1,636,005

81,550

2,024,071

77,950

1,600,314

-

666,000

1,998,000

2,334,500

-

-

667,000

13,064,691

9,728,963

Receivables 2011 $ -

Deposit on banquet facilities for 2011 Interest on short-term deposits: Pan Caribbean Financial Services Limited Barita Investments Limited

6,842 278 7,120

Total

5.

2010 $

89,190 100,337

Total

4.

2010 Number of shares

2011 $

2010 $ 50,000 10,931 60,931

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

6.

In light of the Foundation’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 Jamaica Limited J$ Savings account J$ Current account *Prostate cancer – J$ Current account (Note 7) Short-term deposits – NCB Capital Markets Limited Pan Caribbean Financial Services Limited Barita Investments Limited Total

0.5

4.75 2.50

2011 $

2010 $

83,865 100,365 256,577

634,886 73,228 256,577

130,958 2,503,723 61,671 3,137,159

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

*Included in the funds of the Foundation at the end of the year is an amount of $9,698 (2010 – $9,698) due to the Prostate Cancer Research Fund.

8


Jamaica Medical Foundation Limited

7.

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: 2011 $ Balance at beginning of year Donations received during the year Balance at end of year

2010 $

266,275 266,275

16,275 250,000 266,275

The above balance is represented by a designated bank account. (Note 6). 8.

Payables and accruals 2011 $ Registrar of Companies – Fees in respect of annual and other returns Accruals - Accounting fees Total

9.

64,625 64,625

10,000 50,000 60,000

Finance income 2011 $ Interest income Dividends Total

10.

2010 $

601,107 927,099 1,528,206

2010 $ 854,389 943,622 1,798,011

Surplus for the year

Surplus for the year is stated after charging/(crediting): 2011 $ Key management compensation (Note 12) Dividends and interest income (Note 9)

11.

(1,528,206)

2010 $ (1,798,011)

Expenses by nature

Total fund raising, administrative and other expenses:

Fund raising expenses: Venue Decoration Advertising Entertainment Public relations Printing – Flyers and tickets Other Administrative and other expenses: Donations Public relations Meeting expenses Other Total

2011 $

2010 $

815,588 102,107 96,453 60,000 97,000 93,005 264,542 1,528,695

-

362,272 403,500 157,385 176,818 1,099,975 2,628,670

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

9


Jamaica Medical Foundation Limited

12.

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 10). 13.

Employee benefits

The Foundation has no employees. A related entity provides administrative and professional services to the Foundation, for which the Foundation pays an honorarium.

14.

Financial assets and liabilities by categories

i. Financial assets 2011 $ Financial assets measured at fair value: Investments (Note 3) Financial assets measured at amortised cost less impairment: Receivables Cash and cash equivalents Total

2010 $

19,128,910

14,823,101

7,120 3,137,159 22,273,189

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

ii Financial liabilities 2011 $ Financial liabilities measured at amortised cost: Payables Total

15.

64,625 64,625

2010 $

60,000 60,000

Capital management

The Foundation considers its capital to be its accumulated surplus. The Foundation’s financial objective is to generate a targeted operating surplus, in order to strengthen and provide for the future continuity of the Foundation, taking into account the various competitive risks. The Foundation’s Trustees review the financial position of the Foundation at regular meetings. The Foundation is not subject to any externally imposed capital requirements.

10


Additional information – Auditors’ report

To the Trustees of Jamaica Medical Foundation Limited On Additional Information The additional information presented on page 12 and 13 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, 2011. 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, 2011 or of the results of its operations or cash flows for the year then ended.

Mair Russell Grant Thornton Chartered Accountants

Kingston, Jamaica June 20, 2012

11


Additional information – Detailed income and expenditure account

Income Fund raising income – banquet Less: Related expenses

2011 $

2010 $

2,036,000 (1,528,695)

-

507,305 Interest and dividends from investments

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

-

1,528,206

1,798,011

2,035,511

1,798,011

157,385 64,625 8,750 362,272 403,500 10,000 8,100 (10,000) 49,843 45,500 1,099,975 935,536

96,338 50,000 8,750 41,000 384,419 9,550 15,000 17,387 40,000 662,444 1,135,567

12


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

2011 $ Income Donation

Less: Expenses Bank charges Surplus for the year

2010 $

-

250,000

-

250,000

-

250,000

13


Š Mair Russell Grant Thornton

Member firm of Grant Thornton International Ltd


Jmf 2011 audit