ABN 64 002 806 233
ANNUAL FINANCIAL REPORT 2006
Directors’ Report 2006 The Directors present their report together with the financial report of Amnesty International Australia (AIA) (“the company”), a company limited by guarantee, for the year ended 31 December 2006 and the auditor’s report thereon.
Directors The Directors, at any time during or since the end of the financial year are: Name and Qualifications
Age
Experience and Special Responsibilities
Georgina Perry, LLB (Hons), BA
28
Pro Bono Director, Allens Arthur Robinson Member of Amnesty International for 14 years NSW Branch President 2002 – 2004 National Vice-President 2004 - July 2006 National President from July 2006 Director 16/3/02 – 21/7/04 Director since 3/9/04
49
Registrar, Physiotherapists Registration Board of Tasmania Member of Amnesty International Australia for 22 years; Tasmanian Branch Committee (President for 6 years). Delegate, International Council Meeting 2001, 2003 Director 17/5/91 – 30/5/92 Director since 14/3/98 National Treasurer until 3/9/04 Company Secretary since 3/9/04
32
Sessional teacher, Monash University Qualified Solicitor Member of Amnesty International since 1998 Member of Victorian Branch Committee for 4 years (Secretary), member of National Legal Team and co-convenor of Victorian Legal Group Vice President from 2 July 2006 Director since 3/9/04 Delegate, International Council Meeting 2007
40
Financial Analyst, MIR Investment Management 20 years experience with AI in Australia and Italy Treasurer NSW Branch Committee from November 2005 to July 2006
Director and National President
Dr Gregory Luckman, PhD, M AgrSc, B AgrSc, Grad Dip Bus Director and Company Secretary
Nicole Bieske, LLB (Hons), BA Director and Vice President
Maurizio Viani, BEcon, MFin Director and National Treasurer
Director since 2 July 2006 National Treasurer since 2 July 2006 Peter Hanley Director
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55
Learning Adviser Member of Amnesty International since 1993 Convenor of Townsville group for 11 years President, Queensland Branch Director since 21/5/05
Directors’ Report 2006
Stuart Webb, M Pub Int Law, LLB (Hons), BA
33
Practising Solicitor, Victoria Legal Aid Member of Amnesty International for 9 years Member of Victorian Branch Committee for 7 years. President, Victorian Branch 2004 - 2006 Delegate, International Council Meeting 2005 and 2007 Convenor, National Refugee Team 2003 - 2005 Director since 8/5/04
49
Senior Advisor, International Relations (Agreements), University of Technology New South Wales Branch Committee since 2003; Candle Day Coordinator 2001/2 President, New South Wales Branch Director since 15/12/04
28
Environmental Consultant, Beckwith Environmental Planning Pty Ltd Member of Amnesty International since 1997 Member, Western Australian Branch Committee since 2004 President, Western Australia Branch Director since 7/5/05
56
Self employed Consultant Member of Amnesty International since 2004 Member, WA Branch Committee 2005-2006 Director since 2 July 2006
39
Student, University of Sydney (Masters in Public International Law)
Director
Debra Johnson Director
Sabrina Genter, MPhil, BSc Director
James Sharp, LLB Director
Gerard Horton Director
Member of Amnesty International since 2004 Member NSW Branch Committee from November 2005 to July 2006
Director since 2 July 2006 Derk Swieringa
61
Retired Member of Amnesty International since 2002 Branch Treasurer and Vice President, ACT/Sth NSW Branch Committee since May 2003 President, ACT/Sth NSW Branch Committee since March 2006 Director since 24 March 2006
49
Team Leader, Curriculum Policy & Projects Senior Secondary Assessment Board of South Australia Member of Amnesty International since 1994 SA/NT Branch Committee member since 2004 SA/NT Branch President since October 2006
Director
Catherine Cooper M Ed, BA, Grad Dip Ed Director
Director since 31 October 2006
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Directors’ Report 2006 32
Senior Policy Analyst, Department of Premier and Cabinet, Tasmania Member of Amnesty International since 2001 Member of NSW Branch Committee Mar 2002 Oct 2004 Member of TAS Branch Committee since Nov 2004 (President since 15 Sept 2006) Member of National Legal Team and convenor of NSW Legal Network Aug 2000 – July 2003 Director since 15 September 2006
52
Senior Industrial Officer, Association of Professional Engineers, Scientists & Managers, Australia Member of Amnesty International since 2000 Member of VIC Branch Committee since 2002 Secretary of VIC Branch Committee 2005-2006 President of VIC Branch Committee 2006-2007 Director since 20 May 2006
Russell John William Thirgood, LLM (Hons), LLB (Hons), BA Director and National President
31
Partner, McCullough Robertson Member of Amnesty International since 1990. President, Queensland Branch 2000 - 2002 National President May 2002 – July 2006 Delegate, International Council Meeting 2001, 2003, 2005 Director 18/3/00 – 16/3/02 Director 26/5/02 – 02/07/2006
Anna Skarbek, BCom, LLB
31
Qualified solicitor; financial analyst, policy adviser. Member of Amnesty International for 8 years; Victorian Branch Committee (Treasurer, President) Delegate, International Council Meeting 2005 National Treasurer 3/9/04 – 02/07/06 Director 25/3/00 – 8/5/04 Director 3/9/04 – 02/07/06
Tracy Crisp, MA DevStudies (Hons), BA, GradDip Director
37
Writer/Arts Administrator 20 years experience with AI in Australia and New Zealand Member South Australian/Northern Territory Branch Committee (Vice President), convenor school and speaking team, women’s group and parents’ group. Director 17/5/00 -23/6/00 Director 3/9/04 – 02/07/06
John Michael Anderson, PhC
71
Retired pharmacist. Amnesty International member since 1962; various terms on Victorian Branch Committee (including President and Secretary) Delegate, International Assembly 1966; International Council Meeting 1983, 1989, 1991 Director 18/5/86 – 19/5/90 and 21/3/99 to 25/3/00 Director 28/5/00 – 02/07/06
Clare Michele Wiseman, LLB (Hons), BA Director
Michael Gordon Butler, Bachelor of Arts (Social Work) Director
Director and National Treasurer
Director
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Directors’ Report 2006 Vicki Jacobs, M Bus, BA, Grad Dip Applied Psychology Director
51
Public Servant Member of Amnesty International for 18 years Member of West Australian Branch Committee for 4 years; member, local groups in WA and SA since 1989 Member, South Australian/Northern Territory Branch Committee (3 years) President, South Australia/Northern Territory Branch Director 30/5/92 – 26/11/94 Director 8/5/04 – 02/07/06
Alice Linacre, LLB, BA Director
28
Solicitor Member of Amnesty International for 7 years. Member of Australian Capital Territory and Southern NSW Branch Committee for 3 years President, Australian Capital Territory/Southern New South Wales Branch Director 18/9/04 – 24/03/06
Sophie Jedryka Rigney Director
22
Law and International Relations student
Daryl Jarrett Director
56
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Member of Amnesty International for 7 years Member of Tasmanian Branch Committee for 6 years (Vice-President) and AI’s Tasmanian schools network. President, Tasmanian Branch Delegate, International Council Meeting 2007 Director since 25/11/04 – 15/09/06 Equities and FX Trader Member SA/NT Branch Committee 2004-2006 Director 06/05/06 – 03/10/06
Directors’ Report 2006 Directors’ Attendance at Meetings – 2006 A – Reflects the number of meetings the director was eligible to attend during the year B – Number of meetings attended
Director
National Executive Committee Meetings1 (10)
Executive Committee Meetings (5)
A
B
A
B
4
4
2
2
6
5
3
3
4
4
2
2
6
6
3
2
4
4
2
2
10
10
5
5
James Sharp Executive Member (Term began 2 July 2006)
4
3
2
1
Gerard Horton Executive Member (Term began 2 July 2006)
4
3
2
1
Georgina Perry National President (Term began July 2006) Vice President (Term ended July 2006) Nicole Bieske Vice President (Term began 2 July 2006) Executive Member (Term ended 2 July 2006) Maurizio Viani National Treasurer (Term began 2 July 2006) Gregory Luckman Company Secretary
By agreement, Directors who are Branch Presidents are not expected to attend meetings of the Executive Committee but may elect to attend. At least one Branch President is always in attendance at these meetings.
Stuart Webb Executive Member (Term began 2 July 2006) VIC Branch President (Term ended 20 May 2006) Derk Swieringa ACT/SNSW Branch President (Term began 24 March 2006) Debra Johnson NSW Branch President
1
Includes extraordinary Board meetings
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4
4
2
2
3
3
-
1
8
5
1
1
10
10
-
4
Directors’ Report 2006 Peter Hanley QLD Branch President
10
9
-
2
2
2
-
1
2
2
1
2
6
6
2
2
10
7
1
1
Russell John William Thirgood National President (Term ended 2 July 2006)
3
3
3
2
Anna Skarbek National Treasurer (Term ended 2 July 2006)
6
6
3
3
John Michael Anderson Executive Member (Term ended 2 July 2006)
6
6
3
3
Tracy Crisp Executive Member (Term ended 2 July 2006)
6
6
3
3
Alice Linacre ACT/SNSW Branch President (Resigned 24 March 2006)
2
2
1
1
Vicki Jacobs SA/NT Branch President (Term ended 6 May 2006)
4
3
-
1
4
4
-
1
8
7
-
2
Catherine Cooper SA/NT Branch President (Term began 31 October 2006) Clare Wiseman TAS Branch President (Term began 15 September 2006) Michael Butler VIC Branch President (Term began 20 May 2006) Sabrina Genter WA Branch President
Daryl Jarrett SA/NT Branch President (Term began 6 May 2006) (Resigned 3 October 2006) Sophie Rigney TAS Branch President (Resigned 15 September 2006)
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Directors’ Report 2006 Principal Activities The principal activities of the company during the course of the financial year were human rights campaigning, awareness raising and fundraising. There have been no significant changes in the nature of these activities during the year.
Result The operating surplus for 2006 amounted to $388,287 (2005: $2,174,283).
Review of Operations Amnesty International Australia’s human rights work focused on four areas in 2006: stopping violence against women, the rights of refugees and asylum seekers, human rights and security and human rights in the Asia Pacific region. In addition, Amnesty International Australia contributed to the growth and impact of the movement by supporting the capacity of Amnesty International in the Asia Pacific and contributing over $300,000 to Amnesty International’s work on the Darfur crisis. A highlight of our work to protect the rights of refugees and asylum seekers was the Australian Government’s withdrawal, after strong campaigning from ourselves and others, of the proposed Migration Amendment (Designated Unauthorised Arrivals) Bill which would have seen asylum seekers arriving in Australia by boat denied the right to seek refugee status on our shores. We strengthened our campaign to abolish Temporary Protection Visas, distributed 55,000 resource booklets for refugee advocates and celebrated Refugee Week with more than 60 picnics and related events around Australia. As part of our casework, we successfully took the case of an immigration detainee to the Human Rights and Equal Opportunity Commission. In campaigning on human rights and security we set a world record for the world’s largest flaming image with 11,000 candles calling for a stop to torture. Across the country activists dressed as flight attendants and in orange jumpsuits during ‘Air Torture’ demonstrations against the US’s extraordinary renditions—the practice of sending terrorism suspects to countries that allow the use of torture. Launched through an open letter by our Secretary General Irene Khan to Prime Minister John Howard, our campaign to bring Guantánamo Bay detainee David Hicks home for a fair trial or release gathered momentum and will continue to do so in 2007. We continued to raise awareness about the way Australia’s anti-terror laws undermine our human rights with a national survey of community attitudes. On the 16th anniversary of our 16 Days of Activism campaign to eliminate violence against women, our Stop Violence Against Women campaign saw increased action and 23,000 signatures collected calling for a national plan of action. We distributed more than 30,000 white ribbons to encourage Australian men to join with women to put an end to violence against women and hundreds of events were held in collaboration with women’s organisations. Regional collaboration was a focus, both with the launch of a report on violence against women in Papua New Guinea and a ‘comfort women’ speaking tour of Australia highlighting the plight of the estimated 200,000 survivors of women forced into sexual slavery by the Japanese army during World War II.
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Directors’ Report 2006 Our role in the Asia-Pacific grows stronger each year and in 2006 we became one of the founding members of the Anti-Death Penalty Asia Network, a welcome voice against the death penalty in a region that has the highest execution rate in the world. Hundreds of Australians joined vigils, forums and processions to commemorate the World Day Against the Death Penalty on 10 October and in Brisbane artist Jorge Pujol created a six-metre high ‘scale of justice’ to call for an end to capital punishment. We worked alongside Nepal human rights activists to highlight their plight during a period of political repression and imprisonment and rejoiced with them and the world when the reinstatement of parliament and successful peace negotiations with the Maoist Communist Party saw a commitment to elections and a new constitution. We stepped up our work in conjunction with international diplomatic efforts to defend the human rights of ethnic Hmong people in Laos and we intensified our campaign to put pressure on the Chinese Government and the Olympic movement to deliver on their promises that the Olympics will improve human rights in China. 2006 saw continued large scale recruitment of regular pledgers (Human Rights Defenders), AIA’s most cost effective form of long-term fundraising. As at December 2006, almost 60,000 individuals were making regular financial contributions.
State of Affairs There were no significant changes to the state of affairs of the company during 2006.
Events Subsequent to Balance Date There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the company, to affect significantly the operations of the company, the results of those operations, or the state of affairs of the company in future financial years.
Likely Developments Amnesty International Australia’s work continues to be guided by the organisation’s global strategic plan for 2004-2010. In 2007, Amnesty International Australia will work closely with other Amnesty International sections around the world, particularly in the Asia-Pacific region, to advance the movement’s human rights, organisational and growth strategies. Amnesty International Australia’s Plan for 2007 promotes growth in people, activism, diversity and funds to enable an increasing number and range of people to defend human rights in support of our international agenda to globalise justice. The major campaign for 2006 is ‘Human Rights and Security’, in particular highlighting injustices of Guantanamo Bay. Amnesty International Australia will continue to stop violence against women, support others in protecting the human rights of people in China, campaign on the rights of refugees and asylum seekers, and to improve the
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Directors’ Report 2006 human rights situation and capacity to defend human rights in the Asia Pacific region. Amnesty International Australia will launch a human rights education program for schools, will continue to build capacity for work on Indigenous human rights, and will develop ongoing work in support of a new global priority, our “Human Dignity” campaign.
Environmental Regulations The company is not subject to any significant environmental regulations under either Commonwealth or State regulation.
Indemnification and Insurance of Officers and Auditors Indemnification In 2002 Amnesty International Australia entered into a Deed of Indemnity and Access with each of the members of the National Executive Committee (NEC) in accordance with rule 11 of the Company's Constitution and section 198F of the Corporations Act 2001. These indemnities remain in place for those members of the NEC in place since 2002. Subsequent Deeds of Indemnity and Access have been entered into as required with the appointment of new members to the NEC. In 2003 Amnesty International Australia entered into a Deed of Indemnity and Access with the National Director. Other than those above, since the end of the previous financial year, the company has not indemnified or made a relevant agreement for indemnifying against a liability any person who is or has been an officer or auditor of the company.
Insurance Premiums During the financial year the company has paid premiums on behalf of the company in respect of Directors’ and Officers’ liability and legal expenses insurance contracts for the year ended 31 December 2006. The company has also paid or agreed to pay, premiums in respect of such insurance contracts for the year ended 31 December 2007. Such insurance contracts insure against certain liability (subject to certain exclusions) persons who are or have been Directors or Officers of the company. Directors have not included details of the nature of the liabilities covered or the amount of the premium paid as such disclosure is prohibited under the terms of the contract.
Directorships of Public Companies Anna Skarbek was a director of Big Issue in Australia Limited, an Australian Public Company, concurrently with her directorship of Amnesty International Australia. No other Amnesty International Australia director holds directorships of any other public companies.
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I I
Directors' Report 2006
amnesty international australia
Company Particulars Amnesty International Australia is incorporated in Australia. The address registered office is 29 Shepherd Street, Chippendale, NSW, 2008.
of the
Auditors Independence and Non-audit services We have received an independence declaration from our auditors, Ernst & Young. A copy of this declaration is included in this Annual Financial Report. Ernst & Young provided non-audit services during the year which has been disclosed in Note 3 of the Annual Financial Report.
Signed in accordance with a resolution of the directors:
Gregory Luckman Hobart Director
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Dated:
~March
2007
II
Directors' Declaration
cH:
amnesty international au~tralia
In the opinion of the directors of Amnesty International Australia (a)
the financial statements and notes, set out on pages 12 to 31 are in accordance with the Corporations Act 2001, including: (i)
(ii)
(b)
giving a true and fair view of the financial position of the' company as at31 December 2006, and of its performance for the year ended on that date; and / complying with Accounting .Standards in Australia and the Corporations Regulations 2001; and
there are reasonable grounds to believe that the compan:y will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the directors: tl' Dated at Hobart this day of March 2007
r
;Gregory Luckman Director
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J
Financial Statements for the Year Ended 31 December 2006
Income Statement for the Year Ended 31 December 2006 Note
2006 $
2005 $
11,337,932 1,561,962 1,079,182 390,615
9,710,646 1,583,769 1,112,508 440,842
330,659 723,059 432,183
643,083 699,783 449,023
493,142
___270,336
16,348,734
14,909,990
(4,459,720) (4,631,755) (3,233,141) (1,769,155) (355,268) (528,023) (983,385)
(3,707,029) (2,655,481) (2,807,045) (1,804,130) (438,662) (397,141) _(926,219)
Revenue from operating activities Donations/fundraising Human rights defender pledges Mail appeals Other donations Fundraising events Bequests Membership fees Merchandising Revenue from outside operating activities Interest and other Total Revenue Expenditure on Operating Activities Human rights campaigning in Australia International campaigning and research Building our supporter base Fundraising Merchandise Governance and democracy Administration and other Operating Surplus
2
388,287
2,174,283
The income statement is to be read in conjunction with the notes to the financial report set out on pages 16 to 31.
Financial Statements for the Year Ended 31 December 2006
Balance Sheet as at 31 December 2006 2006 $
2005 $
6,808,116 417,532 57,331 _216,578 7,499,557
3,983,992 512,490 62,895 2,982,472 7,541,849
824,854 824,854
594,057 594,057
8,324,411
8,135,906
8 10
736,592 _364,068 1,100,660
1,048,255 _293,048 1,341,303
10
82,154 82,154
41,293 41,293
Total liabilities
1,182,814
1,382,596
Net assets
7,141,597
6,753,310
Accumulated Surplus Retained surplus
7,141,597
6,753,310
Accumulated Surplus
7,141,597
6,753,310
Note Assets Current Assets Cash and cash equivalents Trade and other receivables Inventories Other assets Total Current Assets
4 5a 6 5b
Non-Current Assets Property, plant and equipment Total Non-Current Assets
7
Total assets Liabilities Current Liabilities Trade and other payables Provisions Total Current Liabilities Non-Current Liabilities Provisions Total Non-Current Liabilities
The balance sheet is to be read in conjunction with the notes to the financial report set out on pages 16 to 31.
Financial Statements for the Year Ended 31 December 2006
Cash Flow Statement for the Year Ended 31 December 2006 2006 $ Cash Flows from Operating Activities Cash receipts in the course of operations
2005 $
Note 16,716,437
15,043,832
Interest received 318,333 Payments to the International Secretariat and other Amnesty International sections (1,807,492) Payments to employees and suppliers (12,194,947)
233,634
Net Cash Flows provided by Operating Activities
12b
Cash Flows from Investing Activities Receipts for sale of building
(5,426,645) (9,848,300)
3,032,331
2,521
615,000
-
(351,278)
(138,106)
_(471,929)
________-_
Net Cash Flows Used in Investing Activities
(208,207)
(138,106)
Net (decrease)/increase in cash held
2,824,124
(135,585)
Cash at the beginning of the financial year
3,983,992
4,119,577
6,808,116
3,983,992
Payments for plant and equipment Payments for leasehold improvements
Cash at the end of the financial year
12a
The cash flow statement is to be read in conjunction with the notes to the financial report as set out in pages 16 to 31.
Financial Statements for the Year Ended 31 December 2006
Statement of Changes of Equity for Year Ended 31 December 2006 Note
2006 $
2005 $
Retained Surplus Balance at start of year Surplus for year
6,753,310 4,579,027 _388,287 2,174,283
Balance at end of year
7,141,597 6,753,310
TOTAL FUNDS
7,141,597 6,753,310
The statement of changes in equity is to be read in conjunction with the notes to the financial report as set out in pages 16 to 31.
Notes to the Financial Statements for the Year Ended 31 December 2006 1. STATEMENT OF ACCOUNTING POLICIES The following significant accounting policies adopted in the preparation of the financial report are: A.
BASIS OF PREPARATION The financial report is a general purpose financial report which has been prepared in accordance with Accounting Standards, Urgent Issues Group Consensus Views, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. It has been prepared on the basis of historical costs, except for land and buildings that have been measured at fair value. The accounting policies have been consistently applied, unless otherwise stated. Where necessary, comparative information has been reclassified to achieve consistency in disclosure with current financial year amounts and other disclosures. The words ‘operating surplus’ have been substituted for the term ‘profit’ in the prescribed income statement.
B.
STATEMENT OF COMPLIANCE The financial report complies with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS).
C.
INCOME TAX Amnesty International Australia (AIA) is exempt from income tax in Australia under Division 50 of the Income Tax Assessment Act 1997. As specified by the Australian Taxation Office (ATO), AIA completes an annual self-assessment to confirm the exemption.
D.
INVENTORIES Held for sale Inventories are carried at the lower of cost and net realisable value. Costs incurred in bringing each product to its present location and condition are accounted for as follows: Finished goods – cost of direct materials, on a weighted average basis. Net realisable value is the estimated selling price in the normal course of operations, less estimated costs necessary to make the sale.
E.
PROPERTY, PLANT AND EQUIPMENT Plant and equipment is stated at cost less accumulated depreciation and any impairment in value. Land and buildings are measured at fair value less accumulated depreciation.
Notes to the Financial Statements for the Year Ended 31 December 2006 Assets are depreciated over their estimated useful lives, using the straight line method, from the date of acquisition. Depreciation rates used for each class of asset, for the current and previous years, are as follows: 2006 2005 IT equipment Plant and equipment Land and buildings Leasehold improvements
33.3% 25% 3.85% term of lease
33.3% 25% 3.85% term of lease
Impairment The carrying values of plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets or cash-generating units are written down to their recoverable amount. The recoverable amount of plant and equipment is the greater of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using the rates attaching to national government securities at the balance sheet date, which most closely match the expected remaining useful life of the related asset. Impairment losses are recognised in the income statement. Revaluations Following initial recognition at cost, land and buildings are carried at a revalued amount which is the fair value at the date of the revaluation less any subsequent accumulated depreciation on buildings and accumulated impairment losses. Fair value is determined by reference to market-based evidence, which is the amount for which the assets could be exchanged between a knowledgeable willing buyer and seller in an arm’s length transaction as at the valuation date. Independent valuations are performed with sufficient regularity to ensure that the carrying amount does not differ materially from the asset’s fair value at the balance sheet date. An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset.
Notes to the Financial Statements for the Year Ended 31 December 2006 Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in the income statement in the year the item is derecognised. F.
RECOVERABLE AMOUNTS OF ASSETS At each reporting date, assets are reviewed to determine whether there is any indication that an asset may be impaired. Where an indicator of impairment exists, a formal estimate of the recoverable amount is made, and where the carrying amount of an asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount. Recoverable amounts are determined for individual assets, unless the value in use cannot be estimated independently from other assets. In this case, the recoverable amount is determined for the cash-generating group of assets to which it belongs.
G.
LEASES Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged on a straight line basis as expenses over the lease term.
H.
FOREIGN CURRENCY TRANSACTIONS Both the functional and presentation currency of AIA is Australian dollars. Foreign currency transactions are converted to Australian dollars at the rates of exchange ruling at the dates of the transactions. Amounts receivable and payable in foreign currencies at the balance sheet date are converted at the rates of exchange ruling at that date. Gains and losses from conversion of assets and liabilities, whether realised or unrealised, are included in the income statement in the year in which the exchange rates change.
I.
EMPLOYEE BENEFITS Wages, Salaries and Annual Leave: Liabilities for employee benefits for wages, salaries and annual leave represent present obligations resulting from employees’ services provided up to the balance sheet date, calculated at undiscounted amounts based on remuneration rates that the company expects to pay. Related on-costs are not employee benefits. Long Service Leave: Liabilities for employee benefits for long service leave represents the present value of the estimated future cash outflows to be made by the employer resulting from employees’ services provided up to the balance sheet date. The provision is calculated using expected future increases in wage and salary rates, including related on-costs and expected settlement dates based on turnover history. Those entitlements which are not expected to be settled within twelve months are discounted using the rates attaching to national government securities at the balance sheet date, which most closely match the terms of maturity of the related liabilities.
Notes to the Financial Statements for the Year Ended 31 December 2006 Superannuation Plans: Contributions are made by AIA to defined contribution superannuation funds and are charged as expenses when incurred. J.
CASH AND CASH EQUIVALENTS For the purposes of the statement of cash flows, cash includes cash on hand, atcall or short term deposits with banks or financial institutions and also those funds held within AIA Groups bank accounts.
K.
REVENUE RECOGNITION Fundraising, Bequests, Donations and Membership Fees: Contributions from individuals, local groups and networks of AIA are treated as fundraising revenue and are recognised when received. Sale of merchandise and publications: Revenue is recognised when the significant risks and rewards of ownership have passed to the buyer and can be measured reliably. Risks and rewards are considered passed to the buyer at the time of delivery of the goods to the customer. Interest Revenue: Interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset.
L.
FUNDRAISING ACTIVITIES As a Charitable Institution and with Fundraising Authority issued by the NSW Government, AIA is subject to various state legislation and their reporting requirements as detailed below. Charitable Fundraising Act 1991: This Act and supporting regulations prescribe the manner in which fundraising appeals are to be conducted, controlled and reported in NSW. The amounts shown in Note 12 are in accordance with S23 (3) of the Act, Sections 5, 7 and 8 of the Regulations and Authority Condition 7. Donations and Bequests: Are returned as income as and when received in AIA’s offices or deposited in AIA’s bank account. As specified in the Act, unsolicited donations, members’ donations and bequests are not treated as fundraising income when determining information required under the Act. Costs of Fundraising: Costs in Note 12 include all direct fundraising costs in accordance with the Act. The inclusion of indirect costs is discretionary. Indirect costs include overheads such as rent, light, power, insurance and the time spent by accounting and office staff administering appeals and receipting but not directly involved in appeals.
Notes to the Financial Statements for the Year Ended 31 December 2006 Mail Appeals Donations and Cost Allocation: Mail appeals are targeted at both Members and non-Members. When determining what constitutes fundraising activities as required under the Act, revenue received from members is excluded and a comparable share of costs attributed to Members is also excluded. The allocation of both revenue and expenses on Mail appeals for 2006: 78.6% to nonMembers, 21.4% to Members. (2005: 79.6% to non-Members, 20.4% to Members.) No costs were attributed to Members for a share of Raffle, Candle Day or Event costs even though some members would have supported both. The impact on results is not material. Donor Acquisition: Bank charges incurred in receiving income from face to face approaches to the public through designated fundraising organisations and mass media appeals are recognised as a direct cost of fundraising. All donations with purchases of merchandise and one-off donations from non-Members are assumed to be the result of general campaigns and are reported as such. M.
RECEIVABLES Trade debtors are carried at amounts due less an allowance for uncollectible amounts. The collectability of debts is assessed at the balance sheet date and specific provision is made for any doubtful accounts.
N.
PAYABLES Liabilities are recognised for amounts to be paid in the future for goods or services received, whether or not billed to the company. Trade payables are normally settled within normal trading terms.
O.
PROVISIONS Provisions are recognised when AIA has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where AIA expects some or all of the provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the income statement net of any reimbursement. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
Notes to the Financial Statements for the Year Ended 31 December 2006 P.
GOODS AND SERVICES TAX Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Tax Office (ATO). 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 are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet. Cashflows are included in the statement of cashflows on a gross basis. The GST component of cashflows arising from investing activities which are recoverable from, or payable to, the ATO are classified as operating cashflows.
Q.
VOLUNTEER WORKERS AIA receives considerable services from its many volunteers. No assessment of the monetary value of this support has been attempted.
R.
PRO BONO SERVICES AND IN-KIND SUPPORT AIA receives pro bono services from a range of providers including legal, information technology and human resource specialists. Similarly AIA also receives considerable in-kind support from a number of supporters. No assessment of the value of this support has been attempted.
S.
DISPOSAL OF SURPLUS Rule 7.1 of AIA’s Memorandum of Association prohibits the distribution of any surplus to Members. All income must be applied towards the promotion of the objects of AIA. In 2005 the NEC determined that AIA should hold a certain level of reserves. Reserves are cash and cash equivalents, plus land and buildings. The amount of the reserves are determined through an annual risk based assessment.
T.
USE AND REVISION OF ACCOUNTING ESTIMATES The preparation of the financial report requires the making of estimates and assumptions that affect the recognised amounts of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities. The estimates and assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision only affects that period, or in the period of revision and future periods if the revision effects both current and future periods.
Notes to the Financial Statements for the Year Ended 31 December 2006 2. Operating Surplus The operating surplus has been arrived at after charging / (crediting) the following items:
Depreciation expense Write-down of inventory to net realisable value Operating lease / rental expense Cost of goods sold Employee benefit expense Net expense from movements in provisions: Employee entitlements
2006 $
2005 $
150,616
49,290
2,185 510,471 167,867 3,004,145
29,121 409,154 187,023 3,290,185
111,881
70,113
33,793 7,743
28,000 -
1,825,527 4,982,589 6,808,116
1,571,342 2,412,650 3,983,992
3. Auditor’s remuneration Audit of financial report - Ernst & Young Other assurance related services - Ernst & Young 4. Cash and cash equivalents Cash at bank and on hand Bank short term deposits
Cash at bank and on hand earns interest at floating rates based on daily bank deposit rates. The short term deposits are held as a Bank Bill with the Commonwealth Bank of Australia. It has a face value of $5,008,911, earns interest at a rate of 6.22% and will mature on 15 January 2007. The fair value of cash and cash equivalents is $6,808,116 (2005: $3,983,992).
Notes to the Financial Statements for the Year Ended 31 December 2006 5. Receivables and other assets a. Receivables Trade receivables Other receivables
2006 $ 119,990 297,542 417,532
2005 $ 149,204 363,286 512,490
Trade receivables are non-interest bearing and are generally due on 30 day terms. Other receivables are non-interest bearing and consist mainly of GST amounts owing from the ATO and recognition of income received in 2006 but banked in 2007. b. Other Current Assets Prepayments Other Assets
64,145 152,433 216,578
2,905,997 76,475 2,982,472
Amnesty International Australia paid its 2006 levy of $2,008,813 to the International Secretariat in full in November 2005. This constitutes the majority of the prepayment balance in 2005. This prepayment was not repeated in 2006. Other assets represent bonds and deposits paid on activist resource centres around Australia. 6. Inventories Finished goods
57,331
62,895
7. Property, plant & equipment Land & buildings, at fair value Less: accumulated depreciation Net Land & buildings Plant & equipment, at cost Less: accumulated depreciation Net Plant & equipment Leasehold improvements, at cost Less: accumulated depreciation Net Leasehold improvements Total Property, plant & equipment
540,213 (153,979) 386,234 471,929 (33,309) 438,620 824,854
470,000 (21,154) 448,846 188,935 (43,724) 145,211 594,057
Notes to the Financial Statements for the Year Ended 31 December 2006 Reconciliations of the carrying amounts for each class of property, plant and equipment are set out below: Land & buildings: Carrying amount at the beginning of the year Depreciation Disposals Carrying amount at the end of the year
2006 $ 448,846 (7,051) (441,795) -
2005 $ 459,423 (10,577) 448,846
145,211 351,278 (110,255) 386,234
45,818 138,106 (38,713) 145,211
Plant & equipment: Carrying amount at beginning of the year Additions Depreciation Carrying amount at the end of the year Leasehold improvements: Carrying amount at beginning of the year Additions Depreciation Carrying amount at the end of the year
471,929 (33,309) 438,620
-
8. Payables Trade payables Other payables & accruals
482,461 254,131 736,592
465,166 _583,089 1,048,225
Trade payables are non-interest bearing and are settled on the terms specified by the supplier. Other payables are also non-interest bearing. 9. Employee benefits - Superannuation Amnesty International Australia makes contributions to a defined contribution superannuation fund. The amount recognised as an expense in the income statement is $264,600 (2005: $223,993).
Notes to the Financial Statements for the Year Ended 31 December 2006 10. Provisions - current and non-current liabilities
At 1 January 2006 Arising during the year Utilised
Annual Leave $ 212,174 250,179 (202,631)
Long Service Leave $ 122,167 64,333 ______-
At 31 December 2006
259,722
186,500
446,222
Current 2006 Non-current 2006
259,722 259,722
104,346 82,154 186,500
364,068 82,154 446,222
Current 2005 Non-current 2005
212,174 ______212,174
80,874 41,293 122,167
293,048 41,293 334,341
2006
2005
63
50
Number of employees (Full time equivalent at year end)
Total $ 334,341 314,512 (202,631)
11. Charitable Fundraising Act (NSW) 1991 Fundraising appeals conducted during the financial year: Fundraising appeals were conducted during the financial year by mail, telephone and face to face street fundraising. In addition funds were raised by a raffle, the Candle Day appeal, donations from non-Members and numerous fundraising events. Donations and fundraising in this note follow the definition in the Charitable Fundraising Act. As such each differs from that in the income statement (due to the classification imposed by the Act). However in total they agree. Results of fundraising appeals: Gross proceeds from fundraising appeals Less: Direct costs of fundraising appeals Net surplus from fundraising appeals
12,814,710 (3,752,379) 9,062,331
11,457,185 (3,430,884) 8,026,301
Notes to the Financial Statements for the Year Ended 31 December 2006 Application of net surplus obtained from fundraising appeals: 2006 $ Campaigning, merchandise, governance etc costs 11,224,683 Administration Expenses __983,385 Total application 12,208,068
2005 $ 8,378,604 _926,219 9,304,823
The shortfall between the $9,062,331 (2005: $8,206,301) surplus available from fundraising appeals conducted and total distribution of $12,208,068 (2005: $9,304,823) was provided by the following sources Donations (from Members) Membership fees Bequests Merchandising Interest and other
1,554,981 723,059 330,659 432,183 _493,142 3,534,024
1,390,580 699,783 643,083 449,023 270,336 3,452,805
Comparisons of certain monetary figures and percentages: 2006 $
2005 %
$
%
Total cost of fundraising/ gross fundraising income
3,752,379 29% 3,430,884 12,814,710 11,457,185
30%
Net surplus from fundraising/ gross fundraising income
9,062,331 71% 8,026,301 12,814,710 11,457,185
70%
Total costs of campaigning, merchandise, governance etc/ total expenditure
12,208,068 76% 9,304,823 15,960,447 12,735,707
73%
Total costs of campaigning, merchandise, governance etc/ total income received
12,208,068 75% 9,304,823 16,348,734 14,909,990
62%
Notes to the Financial Statements for the Year Ended 31 December 2006 Details of Results of Fund Raising Appeals Fundraising: Revenue/Expense Comparison 2006 Types of appeal
Revenue
Expenses
2005 Ratio of cost to Revenue
Revenue
Expenses
Ratio of cost to Revenue
Candle Day
74,113
31,903
43%
69,168
27,332
40%
Mail Appeals
1,227,390
311,849
25%
1,260,047
415,264
33%
Non-member regular giving/donations
11,122,592
3,256,898
29%
9,687,128
2,840,783
29%
390,615
151,729
39%
440,842
147,505
33%
12,814,710
3,752,379
29%
11,457,185
3,430,884
30%
Events Total
Amnesty International Australia recognises that Candle Day 2006 did not meet the 40% guideline set out in Standard Authority Condition 8, and is therefore reviewing the conduct of the event. Otherwise, the ratio of costs to revenue both overall and by fundraising category is within the 40% guideline. Street face to face fundraising is highly cost effective when considered over a longer period as all fees are paid up front. 12. Notes to the Cash Flow Statement a. Reconciliation of cash For the purposes of the cash flow statement, cash includes cash on hand and at bank and short term deposits at call. Cash at the end of the financial year as shown in the cash flow statement is reconciled to the related item in the income statement as follows: 2006 $
2005 $
Cash on hand 1,817 Group bank accounts 36,483 Cash at bank 700,877 At call deposit 1,086,350 Bank short term deposits - maturing within 90 days 4,982,589 Cash assets 6,808,116
2,110 39,268 841,216 688,748 2,412,650 3,983,992
Notes to the Financial Statements for the Year Ended 31 December 2006 b. Reconciliation of operating surplus to the net cash flows provided by operating activities 2006 $ Operating Surplus for the year Add non cash items: Amounts set aside to provisions Depreciation Gain on sale of building Net cash provided by operating activities before changes in assets and liabilities
388,287 111,881 150,616 (173,206)
2005 $ 2,174,283 70,113 49,290 -
477,578
2,293,686
5,564 2,765,894 94,958 (311,663)
74,044 (2,824,276) (127,865) 586,932
Changes in assets and liabilities during the financial year Decrease in inventories Decrease/(increase) in other assets Decrease/(increase) in receivables (Decrease)/increase in creditors Net cash provided by operating activities
3,032,331
2,521
13. Operating lease commitments AIA has entered into commercial leases on certain buildings and items of office equipment. The leases on buildings have an average life of between 1 and 7 years with renewal terms included in the contracts. Renewals are at the option of AIA. Most lease contracts provide for escalating lease payments based on general inflationary indices. The leases for office equipment have an average life of between 2 and 5 years with renewal terms included in the contracts. Renewals are at the option of AIA. There are no restrictions placed upon the lessee by entering into these leases.
Notes to the Financial Statements for the Year Ended 31 December 2006 Future minimum rentals payable under non-cancellable operating leases as at 31 December are as follows: 2006 $ Within one year After one year but not more than 5 years More than 5 years Total
686,318 2,580,772 202,980 3,470,070
2005 $ 372,634 374,376 _89,809 836,819
14. Financial Risk Management Objectives and Policies AIA’s principal financial instrument is cash and short term deposits. AIA also has other financial instruments such as trade receivables and trade payables which arise directly from its operations. The main risks arising from AIA’s financial instruments are interest rate risk, foreign exchange rate risk and credit risk. A. Interest rate risk Cash and cash equivalents, as defined in note 12a, are the only financial instruments of the company subject to changes in interest rates. It is AIA’s policy to invest cash with a recognised financial institution. Total interest earned was $318,491 (2005: $247,061). The weighted average interest rate was 5.43% (2005: 5.04%). B. Foreign exchange risk As at 31 December 2005, the company held intercompany receivable and payable balances in relation to related entities in the UK and Ireland. The intercompany receivable was denominated in euros and was paid in Australian dollars. The payable was denominated in US dollars and pounds sterling and was paid in Australian dollars. These balances are subject to changes in exchange rates. It is the present policy of the company not to hedge this exchange rate risk as exposure is not significant. As at 31 December 2006 the Australian dollar equivalents of unhedged amounts receivable in euros, calculated at year end exchange rates, was $nil (2005: $16,981). As at 31 December 2006 the Australian dollar equivalents of unhedged amounts payable in US dollars and pounds sterling, calculated at year end exchange rates, was $nil (2005: $7,352).
Notes to the Financial Statements for the Year Ended 31 December 2006 C. Credit risk exposures The credit risk on financial assets of the company which have been recognised in the balance sheet is the carrying amount net of any provision for doubtful debts or sale returns. Receivables balances are monitored on an ongoing basis with the result that the company’s exposure to bad debts is not significant. The company is not materially exposed to any individual debtor. 15. Corporate information The financial report of Amnesty International Australia for the year ended 31 December 2006 was authorised for issue in accordance with a resolution of the directors on 7 March 2007. AIA is a public company incorporated and domiciled in Australia and limited by guarantee. The members are members of the public who have paid the annual membership fee. As at 31 December 2006 there were 16,594 members (2005: 15,916 members). A maximum amount of $100 is guaranteed by each member in the event that the company is wound up. 16. Segment Information AIA operates in one industry - human rights campaigning, awareness raising and fundraising and in one geographical area - Australia. 17. Directors Remuneration All directors at both national and regional level provide their services free of charge. No remuneration was paid to directors except for some reimbursement of expenses incurred in the course of their duties. 18. Related parties (a) Directors The names of each person holding the position of Director of AIA during the financial year are G Perry, G Luckman, N Bieske, M Viani, S Webb, D Johnson, S Genter, P Hanley, J Sharp, G Horton, D Swieringa, C Cooper, C Wiseman, M
Notes to the Financial Statements for the Year Ended 31 December 2006 Butler, R Thirgood, A Skarbek, J Anderson, A Linacre, T Crisp, V Jacobs, S Rigney and D Jarrett. There were no loans to Directors at any time in the year ended 31 December 2006. If a Director from time to time purchases goods from the company it is on the same terms and conditions as available to employees. (b) Key management personnel remuneration Short-term
Post Employment Superannuation $
Total
Salary Incl. Leave Paid $
Salary Packaging $
Bonus
2006
444,544
76,358
17,670
45,767
584,339
2005
327,427
62,275
28,000
37,271
454,973
$
$
(c) Transactions with the international movement of Amnesty International and other Amnesty sections. Each year AIA contributes to the international movement via the International Secretariat according to an assessment based on AIA’s previous financial results. The 2006 assessment incurred was $2,800,799 (2005: $2,496,062). Actual assessment payments made were $nil (2005: $5,296,875). The 2006 assessment was paid in full to the International Secretariat in November 2005. In 2006 AIA also made additional contributions of $1,807,359 (2005: $70,452) to the international movement and other AI sections. This included contributions to the International Secretariat for the work on the Darfur crisis, the eCommunications project, the International Mobilisation Trust and the work on Afghanistan. AIA made a loan of $16,981 to the Irish based Art for Amnesty project in 2005. This was converted to a grant during 2006. During the year AIA purchased publications and campaign materials from the International Secretariat. The company also incurred costs on behalf of the international movement which were deducted from assessment payments. As at 31 December 2006, an amount of $nil (2005: $7,352) is due to the international movement. The amount outstanding from the prior year, which represented unpaid purchases of publications and campaign materials, was fully repaid in 2006.
Declaration by the President in Respect of Fundraising. Appeals
Jf:
amnesty international australia
I, Georgina Perry, President of Amnesty International Australia, declare that in my opinion: (a)
the financial report gives a true and fair view of all income and expenditure of Amnesty International Australia with respect to fundraising appeal activities for the financial year ended 31 December 2006.
(b)
the statement of financial performance gives a true and fair view of the state of affairs with respect to fundraising appeal activities as at 31 December 2006. I
(c)
the provisions of the Charitable Fundraising Act 1991 and Regulations and the conditions attached to the authority have been complied with during the period from 1 January 2006 and 31 December 2006.
(d)
the internal controls exercised by Amnesty International Australia are appropriate and effective in accounting for all income received and applied from any fund raising appeals, although it is not always practicable for the company to establish accounting control over all sources of fund raising appeal activities prior to receipt of these funds by employees of the company. ~
Dated at Sydney this ~day of March, 2007
Georgina Perry
32/35
ill ERNST & YOUNG
I
• Ernst & Young Centre
• Tel I Fax I OX
680 George Street Sydney NSW2000 Australia
61 2 9248 5555 61 2 9248 5959 Sydney Stock Exchange 101 72
GPO Box 2646 Sydney. NSW 2001 I
Auditor's Independence Declaration to the Directors of Amnesty Internation~1 Australia In relation to our audit of the fmancial report of Amnesty International Australia for the findncial year ended 31 December 2006, to the best of my knowledge and belief, there. have been no contraven~ions of the auditor independence Tequirements of the Corporations Act 2001 or any applicable code of professional conduct. I
I
~t4~Yd
I I
Ernst & Young
i
John Haydon Partner Sydney Date: ~
f1~~c,L, ,200
7
Liability limited by la scheme approved under Professional Standards Legislation
I
ill ERNST & YOUNG
•
Ernst & Young Centre 680 George Street Sydney NSW 2000 Australia
• Tel Fax OX
61 2 9248 5555 61 2 9248 5959 Sydney Stock Exchange 101 72
GPO Box 2646 Sydney NSW 2001
Independent
audit report to members of Amnesty International
Australia
Scope The financial report and directors' responsibility The financial report comprises the balance sheet, income statement, statement of changes in equity, I cash flow statement, accompanying notes to the financial statements, and the directors' declaration for Amnesty International Australia (the "Company') for the year ended 31 December 2006. . . ! The directors of the Company are responsible for preparing a financial report that gives a true and fai~ view of the financial position and performance of the company, and that complies with Accounting Standards in Australia in accordance with the Corporations. Act 2001 and complies with the Charitable Fundraising Act 1991 and Charitable:Collections Act 1946 and Regulations 1947. This includes responsibility for the maintenance of adequate accounting records and- internal controls that are designed to prevent and-detect fraud and error, and for the accounting policies and -accounting estimates inherent in the financial report. Audit approach ! We conducted an independent audit of the financial report in order to express an opinion to the merrtbers of the company. Our audit was conducted in accordance with Australian Auditing Standards in order to provide reasdnable assurance as to whether the financial report is free of material misstatement. The nature of an audit is influenced by factors such as the use of professional judgment, selective testing, the inherent limitations of internal control, add the availability of persuasive rather than conclusive evidence. Therefore, -an audit cannot guarantee that all material misstatements have been detected. I We performed procedures to assess whether in all.material respects the financial report presents fairly, in accordance with the Corporations Act 2001, including compliance with Accounting Standards in Australia, the Chari~able Fundraising Act 1991, Charitable Collections Act 1946 and Regulations 1947 and other mandatory financial repqrting requirements in Australia, a !view which is consistent with our understanding of the Company's financial position, and of its -performance as represented by the results of its operations and cash flows. We formed our audit opinion on the basis of these procedures, which included: • •
I
examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial report, and . I assessing the appropriateness of the accounting policies and disclosures used and the reasonableness of significant accountin~ estimates made by the directors. !
While we considered the effectiveness of management's internal controls over financial reporting when determining the nature and extent of our procedures, our audit was not designed to provide assurance on internal conttols. We performed procedures to assess whether the substance of business transactions was accurately rehected in the financial report. These and our other procedures did .not include consideration or judgement of t~e appropriateness or reasonableness of the business plans or strategies adopted by the directors and management of the C~mpany. Independence I We are independent- of the Company, and have met the- independence requirements of Australian professional ethical pronouncements and the -Corporations Act 2001. We have given to the directors of the Compa~y a written Auditor's Independence Declaration, a copy of which is included in the financial report. The Auditors' Indttpendence Declaration would have been expressed in the same terms if it had been given to the directors at the date this audit report was signed. Qualification . .. i Donations are a significant source of revenue for Amnesty International Australia. The Company h~s determined that it is impracticable to establish control over the collection of donations prior to its entry into its financial ~ecords. Accordingly, as the evidence available to us regarding. revenue from this source was limited, our audit procedures with respect to donations had to be. restricted to the amounts recorded in -the financial records. We therefore -ard unable to express an opinion whether donations obtained by the Company are complete. !
Liability limited by a ~cheme approved under Professional Standard~ Legislation I I
f
ill ERNST & YOUNG
I
Qualified Audit Opinion . . In our opinion, except for the effects on the financial report of such adjustments, if any, as might have been required had the limitation referred to in the' qualification paragraph above not existed, the financial report of 4mnesty International Australia is in accordance with: ' (a)
the Corporations Act 2001 including: (i)
giving a true and fair view of the financial position of Amnesty International Australia as at 31 December 2006 and of its performance for the year ended on that date; and ' (ii) complying with the Accounting Standards and the Corporations Regulations 2001; and
(b)
other mandatory professional reporting requirements in Australia.
(c)
the Charitable Fundraising Act 1991 including:
(d)
I
'
(i)
the financial report of Amnesty International Australia shows a true and fair view (j)fthe financial results of fundraising appeals for the year ended 31 December 2006; I
(ii)
the financial report has been properly drawn up, and associated records of Amnesty International Australia have been properly kept during the, year ended 31 December, 2006 in accordance with the Charitable Fundraising Act 1991;
(iii)
money received as a result of fundraising appeals conducted during the yearendetl 31 December 2006, ~:~ been properly accounted for and applied in accordance with the Charitable lundraising Act 1991;
(iv)
there are reasonable grounds to~elieve that Amnesty International Australia will ~eable to pay its debts as and when they fall due. !
The Charitable Collections Act 1946 and Regulations 1947, including: (i)
the financial report of the Amnesty International Australia shows a true and fair: view of the financial results of fundraising appeals for the year ended 31 December 2006; :
(ii)
the financial report and associated records of Amnesty International A,ustralia hav!1 e be,en ,properly kept during the year in accordance with the Act and Regulations;
(iii)
money received as a result of fundraising appeals conducted during the year ended 31 December 2006 has been properly accounted for and applied in accordance with the Act and Regulations;
(iv)
as at the date of this statement there are reasonable grounds to believe that Australia will be able to pay its debts as and when they fall due; and
(v)
based on our audit, we have not become aware of any matter that makes us jbelieve that Amnesty International Australia has not complied with the obligations imposed by the Act ahd Regulations.
E~~Yo-c-o
4#r Ernst & Young
JKHaydon Partner Sydney Date: / 2..
l1et~cL. 2-007
All
mnesty International