2009 AIA Annual Financial Report by Tom Ganderton

AMNESTY INTERNATIONAL AUSTRALIA ABN 64 002 806 233

ANNUAL FINANCIAL REPORT 2009

Directors’ Report 2009 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 2009 and the auditor’s report thereon.

Directors The Directors, at any time during the financial year and until the date of this report are:

Name and Qualifications

Age

Nicole Bieske, LLB (Hons), BA

Sessional lecturer, Monash University Qualified Solicitor Member of Amnesty International Australia since 1998 Member, Victorian Branch Committee for 4 years (Secretary) Delegate, International Council Meeting 2007 & 2009 Director since 3/9/04 Vice President from 2/7/06 – 5/7/08 President since 6/7/08

Self-employed Consultant Member of Amnesty International Australia since 2004 Member, West Australian Branch Committee 2005-2006 Convenor/member several WA local groups Member, Governance Committee and Co-convenor Diversity Steering Committee, Convenor NAGM Organising Committee Member national Refugee Team Director since 2/7/06

Director and National President

James Sharp, LLB Director and National Vice President

Dawna Wright, B.Comm (Hons)

Director and Treasurer

Michael Gordon Butler, BA (Social Work) Director and Company Secretary

Experience and Special Responsibilities

Partner, McGrathNicol Chartered Accountant (Canada & Australia), Certified Public Accountant (USA), Certified Fraud Examiner (USA) Member of Amnesty International Australia since 2006 Chair of Audit and Risk Committee since 9/3/07 Acting Treasurer 9/3/07 – 6/7/07 Treasurer since 6/7/07 Director since 9/3/07 Director Industrial Relations, Association of Professional Engineers, Scientists & Managers, Australia Member of Amnesty International Australia since 2000 Member, Victorian Branch Committee since 2002-2008 Secretary, Victorian Branch Committee 2005-2006 Member, Victorian Religious network President, Victorian Branch Committee 2006-2008 Delegate, International Council Meeting 2009 Company Secretary since 6/7/08 Director since 20/5/06

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Directors’ Report 2009 Name and Qualifications Georgina Perry, LLB (Hons), BA

Age 31

Solicitor, Allens Arthur Robinson Member of Amnesty International Australia since 1992 New South Wales Branch President 2002–2004 National Vice President 2004 - July 2006 National President from July 2006 to 2008 Delegate, International Council Meeting 2007 Director 16/3/02 – 21/7/04 Director since 3/9/04

Manager, Learning & Assessment Design, SACE Board of South Australia Member of Amnesty International Australia since 1994 South Australia/Northern Territory Branch Committee member since 2005 SA/NT Branch President October 2006 – May 2008 Director 31/10/06 – 10/5/08 and since 6/7/08

Governance and Anti-Corruption Policy Officer, The Australian Agency for International Development. Member of Amnesty International Australia since 2005 Director since 6/7/08

Deputy Director, Centre for Water Research, based at The University of Western Australia Member of Amnesty International Australia since 1995 West Australian Branch Vice President 1999-2002 WA Branch Secretary 1997-1998 WA Women’s Group Convenor 2002-2006 WA Branch President since May 2007 Director 3/5/07 – 16/5/09

Program Director and Senior Lecturer, Legal and Dispute Studies, RMIT University Admitted to practice as Barrister and Solicitor, Victoria and Western Australia Member of Amnesty International Australia since 1985 Member, Victorian Branch Committee since 2005 Vice President, Victorian Branch Committee 2006-2008 President, Victorian Branch Committee since July 2008 Director since 20/7/08

Research Officer, Centrecare Tasmania Resource Officer, Tasmanian Catholic Justice and Peace Commission Tasmanian Branch Committee member since 2006 Tasmanian Branch President May 2008 – May 2009 Director 26/8/08 – 16/5/09

Director

Catherine Cooper M Ed, BA, Grad Dip Ed Director

Sheena Graham BA (Political Science and International Relations)

Experience and Special Responsibilities

Director Caroline Wood Director

Russell Solomon BA(Hons), B.Juris, LLB, MA, PhD Director

Perdita Sonntag Director

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Directorsâ&#x20AC;&#x2122; Report 2009 Name and Qualifications Anthony Mitchell BA (Pure Mathematics) BSc (Psychology)

Age

Director

Maree Klemm BSc (Hons) GAICD FAusImm F Fin

Director

Toni Matulick LLM, LLB (Hons), BA, Grad Dip Ed, GDLP

Director

Consultant, resources and financial services sector Amnesty International Australia member since 2004 Queensland/Northern New South Wales President since May 2008 Director since 10/5/08

Employed by the Department of the Senate Member of Amnesty International Australia and ACT/Southern New South Wales Branch Committee since 2004 Branch President ACT/Southern NSW since May 2008 Director since 3/5/08

Practising General Medical Practitioner Member of Amnesty International Australia since 1997 Convenor of an Amnesty International Australia local group since 2002 Member of South Australia/Northern Territory Branch Committee 2006 - 2009 Vice President, SA/NT Branch Committee 2008 Branch President, SA/NT since December 2008 Director since 15/12/08

Self-employed Electrical Designer Australian Coordinator AI East African Regional Network 19951996 Rejoined Amnesty International Australia in 2000 Convenor, China Group 2008, Member SVAW group 2009 Member, Mt. Lawley local group Member, West Australian Branch Committee since October 2007 Vice President, WA Branch 2008-2009 President, WA Branch since May 2009 Director appointed 16/5/09

Director

Gregory David Stitt

Director, Bendelta P/L (strategic advisory firm) Amnesty International Australia member since 2005 New South Wales Branch President since May 2008 New South Wales Branch Vice President May 2007 â&#x20AC;&#x201C; May 2008 Member, New South Wales Branch Committee since May 2006 Director since 17/5/08

Director

Denise Skiffington BM, BS, MA

Experience and Special Responsibilities

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Directors’ Report 2009 Name and Qualifications

Age

Experience and Special Responsibilities

Clare Michele Wiseman, LLB (Hons), BA

Senior Policy Analyst, Department of Premier and Cabinet, Tasmania Member of Amnesty International Australia since 2001 Member, New South Wales Branch Committee 2002-2004 Member, National Legal Team 2001–2005 and past member of Legal Networks in NSW and Tasmania Member, Tasmanian Branch Committee since 2004 President, Tasmanian Branch from September 2006 - May 2008 and since 16/5/09 Director 15/9/06 – 3/5/08 and since 16/5/09

Andrew Bartlett

Self-employed consultant Member, Queensland/Northern New South Wales Branch Committee 2008-2010 President, Queensland/Northern New South Wales Branch Committee since 2010 Alternate Director since 17 February 2010

Alternate Director for Maree Klemm

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Directors’ Report 2009 Directors’ Attendance at Board Meetings – 2009

Director

Nicole Bieske

Eligible to attend 9***

Public Fund Committee

Attended

Eligible to attend

Attended

Eligible to attend

Attended

James Sharp

Dawna Wright

Michael Butler

Georgina Perry

Catherine Cooper

Sheena Graham

Caroline Wood Russell Solomon Perdita Sonntag Anthony Mitchell Maree Klemm

4** 10 4** 10

3 7

Gregory Stitt

Clare Wiseman

Denise Skiffington

Toni Matulick

9***

Audit & Risk Committee ª

Board Meetings

* Gregory Stitt and Clare Wiseman were appointed as directors on 16 May 2009 th ** Caroline Wood and Perdita Sonntag ceased as directors on 16 May 2009 *** Nicole Bieske and Toni Matulick were not eligible to attend one meeting due to a conflict of interest The Audit and Risk Committeeª is responsible, among other things, for monitoring management’s strategy for ensuring that the company has implemented appropriate internal controls to address business risks and that these controls are functioning effectively. The committee is composed of Dawna Wright, Georgina Perry, Anthony Mitchell, and two external representatives, Giles Gunekesara and Beverly Francis. th # Anthony Mitchell’s position on the Audit and Risk Committee commenced on 13 September 2009 th ## Maree Klemm’s position on the Audit and Risk Committee concluded on 13 September 2009 b

The Public Fund Committee oversees the correct administration of gifts and donations and is composed of Michael Butler, Georgina Perry, and James Sharp.

Amnesty International Australia, Annual Financial Report 2009

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Directors’ Report 2009 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 2009 amounted to $1,134,231 (2008: deficit $1,391,136). This surplus included a single bequest of $1.5 million. Review of Operations Amnesty International is a global movement of more than 2.7 million people in 150 countries, committed to defending those who are denied justice or freedom. Amnesty International Australia and our 100,000 supporters raise awareness about human rights issues, mobilise activism, campaign on key issues, conduct research and education and raise money for our work. In 2009, Amnesty International Australia's work was guided by the organisation's global strategic plan for 2004–2010. Our section contributed 21 per cent of its annual income directly to the global movement. This financial contribution enhances Amnesty International’s human rights impact, resources those parts of the global movement where human rights are most at risk and contributes to growth strategies. For example, in 2009 we funded Nepali human rights defender and individual at risk Rita Mahato to attend a UN consultation with women from across the Asia Pacific in Bangkok. We funded the translation of a report on human rights abuses in Timor-Leste into Indonesian and the local language of Tetum. We also contributed media footage, campaign and activism materials, training, development and advice to the global movement. Our most important ongoing work is on behalf of individuals at risk. In 2009 we worked on more than 370 cases. A strong focus was the charge, trial and guilty verdict of democracy leader Aung San Suu Kyi in Burma. We led Amnesty International’s global media response to the announcement of the guilty verdict. More than 10,000 supporters sent emails urging Thailand, as chair of the Association of Southeast Asian Nations (ASEAN), to push for the release of Aung San Suu Kyi and other political prisoners. Another 2,000 personal messages of solidarity for Aung San Suu Kyi – many hand-written – were presented to the Royal Thai Consulate-General in Sydney to be delivered to her. Our pressure contributed to Aung San Suu Kyi being returned to house arrest rather than being jailed. And just days after our initial response, ASEAN made its most forthright statement to date, reminding the Burmese leaders of its opposition to the illegal imprisonment of Aung San Suu Kyi. We responded to crisis more quickly and more strategically in 2009, allowing more people to participate in global actions. We responded to the crisis in Gaza, with more than 10,000 people urgently calling on the Australian Government to use its influence to help end hostilities, ensure civilians are protected and have humanitarian assistance, and demand accountabilities for war crimes. Our actions contributed to the Australian Government promising an additional $5 million in humanitarian aid to the region the following week. And again, we responded to the conflict in Sri Lanka as part of a global movement calling on the government to ‘unlock the camps’ where thousands of civilians were detained after hostilities ended. Our calls contributed to the Sri Lankan Government unlocking the camps by the end of 2009. Our campaign to introduce a Human Rights Act for Australia was extremely successful. We presented more than 10,000 individual submissions from a diverse range of people in support of a Human Rights Act to the government’s consultation committee, more than 25 per cent of all submissions received. The committee subsequently recommended that the government adopt a federal Human Rights Act.

Amnesty International Australia, Annual Financial Report 2009

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Directors’ Report 2009 We used this campaign to trial innovative online campaigning and activism tools. We created an online portal through which participants could ask questions of committee chair Frank Brennan, or follow the public hearings via blogs, Youtube clips, Flickr photos, Twitter and Facebook, or send questions to be asked during public hearings. This created many new opportunities for our supporters to have their voice heard by decision-makers and to engage directly in events and as they happened. A major new focus for us began in 2009 with the launch of our Demand Dignity campaign. This campaign looks at the human rights abuses that drive and deepen poverty. Our global campaign is focusing on slums and informal settlements, maternal mortality, corporate accountability and the inclusion of human rights in progress toward the Millennium Development Goals. To launch our campaign, we led international action to oppose the forced eviction in Cambodia of people living in a slum community called Group 78. While the eviction did eventually take place, our efforts did have a positive impact – unlike previous evictions it was not violent and the community did receive some compensation. The Australian dimension of our campaign is on Indigenous rights and an end to racial discrimination. After more than a year of consultations, in 2009 we were invited to work in partnership with Alyawarr people living in the Utopia homelands, 300 km northeast of Alice Springs, to document the effects of the Northern Territory (NT) intervention and to advocate with them for protection and fulfilment of their rights. We subsequently produced the Going Backwards report on income management and discrimination in the NT and distributed it in November to other sections of Amnesty International working on Indigenous rights. More than 6,500 actions have already been received, calling on the Australian Government to adhere to the Racial Discrimination Act and ensure genuine consultation and partnership with Indigenous communities. Working with well-known Aboriginal artists and Indigenous leaders, we also produced a booklet promoting the Declaration on the Rights of Indigenous Peoples and will begin distributing it in 2010. We joined with many voices calling for action on Aboriginal deaths in custody following the release of the coroner’s findings in June into the death of community leader Mr Ward in Western Australia in 2008. One of our most important achievements in 2009 was our success in the Stop Violence against Women campaign. Thanks to years of tireless campaigning, Australia will have a national plan of action to eliminate violence against women in 2010. And it seems likely that the plan will draw heavily from the policies and practices we identified as good practice for a national plan. One of our most important internationally-focused initiatives in 2009 was working with so-called ‘comfort women’ used as sexual slaves by the Japanese military during World War II. We asked the Australian Parliament to pass a motion calling for the Japanese Government to offer an official and unequivocal apology and compensation. We brought Gil Won Ok, a survivor of the sexual slavery system, from South Korea to Canberra to tell her story. Our innovative online and grassroots activism resulted in more than 18,000 butterflies supporting ‘comfort women’ flying from around Australia and the world to Prime Minister Kevin Rudd, doubling our original targets. While parliament voted against the motion, our ‘butterfly activism’ strategy is being replicated by other groups across the Asia Pacific. We also began a campaign in November to address the widespread and high levels of violence against women in Papua New Guinea. The Queensland Parliament passed a motion just before midnight on their last sitting day of the year in support of our calls. In 2009, we kept up the pressure on the Federal Government to meet Australia’s international obligations to refugees and asylum seekers and a number of welcome changes to legislation were introduced. More people are subsequently able to work while their applications are processed and the government has stopped charging asylum seekers for the cost of their detention.

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Directorsâ&#x20AC;&#x2122; Report 2009 The government also introduced the Complementary Protection Bill, which provides protection for people at risk who are not otherwise eligible under the UN Refugee Convention. We visited the Christmas Island detention centre in December, hearing about the hopelessness and despair asylum seekers there face each day. We met child asylum seekers at the local school and gave them hundreds of letters written by members of our school groups and also some gifts. We responded to public debate about the refugees aboard the Oceanic Viking and issued advertisements in major metropolitan newspapers. We celebrated in December when the Australian Government resettled 15 Palestinian families from the Al Hol refugee camp in the north of Syria. We visited the isolated and dangerous camp in 2008 and asked our government to resettle some of the inhabitants. The families were overjoyed to be coming to Australia. Our refugee coordinator visited Malaysia in July to explore the rights of migrant workers and refugees. After meetings with government officials, they announced that the government will issue identification cards to refugees recognised by UNHCR â&#x20AC;&#x201C; a significant first step in protecting the rights of refugees in Malaysia. In relation to our work on torture and terror, we celebrated the Australian Government signing the UN Optional Protocol to the Convention against Torture. Despite the global financial crisis in Australia, our supporter numbers grew to more than 100,000. The number of our regular monthly financial supporters, Human Rights Defenders, reached 51,674, contributing more than $1.4 million per month. Supporters making gifts in their will were again an important part of our funding and in 2009 we received bequests totalling $1,761,542. This included an extraordinary gift of $1.5 million from the estate of Mary Missen, the wife of the late Liberal senator Alan Missen. We re-formed the youth advisory group in 2009, allowing a team of our highly engaged young supporters to give input and advice to the organisation in many different ways. So far they have provided feedback on our flagship publication, the Human Rights Defender magazine and the development of some of our campaign planning for 2010. We also embarked on a major internal project designed to strengthen our democracy. Throughout 2009 we consulted our supporters about our processes, operations and governance. We subsequently debated and voted for a number of changes to the organisation at the National Extraordinary General Meeting in November. These changes will give more supporters more opportunities to participate in the governance of the organisation. We went to the bi-annual global meeting of Amnesty International activists designed to set the future direction of the global movement. We sent a delegation of six activists to participate in discussions around financial, strategic, governance and campaigning changes to Amnesty International and to contribute to setting the agenda for the organisation for the next six years. State of Affairs There were no significant changes to the state of affairs of the company during 2009. Events Subsequent to Balance Date In the interval between the end of the financial year and the date of this report, there has not been any 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. Amnesty International Australia, Annual Financial Report 2009

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Directors’ Report 2009 Likely Developments and Expected Results In 2010, Amnesty International Australia will: •

Demand Dignity for Indigenous Australians and those living in poverty around the world.

•

Increase our support for the global movement.

•

Respond rapidly to international crises and individuals at risk.

•

Campaign for the closure of the Christmas Island detention centre.

•

Campaign for a Human Rights Act that protects all our rights.

•

Inspire 200,000 people to take action for human rights

We expect to see the Council of Australian Governments fulfil its obligations and announce a National Plan of Action to eliminate violence against women and their children. We expect the government to announce their intentions in relation to human rights protection for Australia and we will continue to call for the adoption of a Human Rights Act that protects the rights of all people in Australia. In November 2009, the government introduced legislation to partially reinstate the Racial Discrimination Act. Throughout 2010 we will seek to have all discriminatory measures under the Northern Territory Emergency Response lifted, and replaced with non-discriminatory policy based on genuine consultation and participation with the Indigenous people who will be affected by it. We will distribute and promote our Declaration on the Rights of Indigenous Peoples booklet so Indigenous Australians know their rights and can defend them. We will hold the government accountable for translating the principles of the UN declaration into law, policy and practice. We will release a research report on the health benefits to Aboriginal people of living on their traditional homelands and develop a campaign based on that research. It will oppose the discriminatory policy being developed by the federal and NT governments requiring people in remote communities living on their traditional lands to relocate to larger centres in order to access the basic services enjoyed by other Australians. We will also begin research into violence against Indigenous women, developing relationships with Indigenous women’s organisations and being guided by consultation with Indigenous communities. We expect the government to continue its unfair policy of detaining asylum seekers who arrive by boat in remote, prison-like detention on Christmas Island. We will keep pressing the Australian Government to take responsibility for the people we rescue and continue to call for all children and families to be removed from Christmas Island to be processed on the mainland. We will add to the 15,000 voices we have already collected asking the PNG Government to address endemic sexual and gender-based violence. We plan to have National Director Claire Mallinson present our petition to PNG’s Prime Minister in June. We will also support international action on the issue of impunity for rape and sexual violence in Cambodia. As the global campaign to Stop Violence against Women is winding down in 2010, we will continue the ground-breaking and important work done by our supporters on women’s rights by ensuring that violence against women, women's rights and gender issues feature in all our ongoing campaigns. And we will continue to call on the US Government to close the Guantánamo Bay detention facility and other detention sites and either charge and try or immediately release all detainees. We will also push our Prime Minister to assist in the resettlement of detainees who cannot be returned home for fear of human rights abuses including torture and death. Amnesty International Australia, Annual Financial Report 2009

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Directors’ Report 2009 Environmental Regulations The company is not subject to any significant environmental regulations under either Commonwealth or State regulation. Indemnification and Insurance of Directors and Officers 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) - which is the Board of Amnesty International Australia - 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. A subsequent Deed of Indemnity and Access has been entered into with the appointment of a new 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 director of the company. Insurance Premiums During the financial year the company has paid premiums of $5,902 on behalf of the company in respect of Directors’ and Officers’ liability and legal expenses insurance contracts for the year ended 31 December 2009. The company has also paid or agreed to pay, premiums in respect of such insurance contracts for the year ended 31 December 2010. Such insurance contracts insure against liabilities (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 Dawna Wright is a director of Women's Circus Ltd, since 23 February, 2009. No other Amnesty International Australia director holds directorships of any other public companies. Company Particulars Amnesty International Australia is incorporated in Australia. The address of the registered office is Level 1, 79-83 Myrtle Street, Chippendale, NSW, 2009. Solicitors Freehills 101 Collins Street Melbourne VIC 3000 Allens Arthur Robinson Level 28 Deutsche Bank Place Corner of Hunter & Phillip Streets Sydney NSW 2000 Bankers Commonwealth Bank of Australia Level 12, 363 George Street Sydney NSW 2000 Amnesty International Australia, Annual Financial Report 2009

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Financial Statements for the Year Ended 31 December 2009 Statement of Comprehensive Income for the Year Ended 31 December 2009

Note

2009 $

2008 $

Revenue from operating activities Donations/fundraising Human rights defender pledges Mail appeals Other donations Fundraising events

15,807,768 1,050,003 1,802,133 336,731

14,300,522 1,252,521 1,540,179 378,409

1,761,542 592,133 355,762

379,442 620,008 375,047

128,567 8,144 138,030

226,167 18,379 -

Total revenue

21,980,813

19,090,674

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 Unrealised loss on financial asset at fair value

(6,917,832) (4,654,166) (4,875,202) (2,398,215) (327,634) (839,263) (834,270) -

(7,080,361) (4,225,582) (4,176,243) (2,673,052) (371,293) (639,050) (913,996) (402,233)

(20,846,582)

(20,481,810)

1,134,231

(1,391,136)

Other comprehensive income for the period

Total comprehensive income for the period

1,134,231

(1,391,136)

Bequests Membership fees Merchandising Other revenue Interest and other Distributions from financial asset at fair value Unrealised gain on financial asset at fair value

Total expenses Operating Surplus/(Deficit)

The statement of comprehensive income is to be read in conjunction with the notes to the financial report set out on pages 18 to 36.

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Financial Statements for the Year Ended 31 December 2009 Balance Sheet as at 31 December 2009 2009 $

2008 $

3 4 6 5 9

5,217,551 460,136 127,303 376,542 1,313,817 7,495,349

4,040,393 496,802 95,382 298,751 1,067,643 5,998,971

7 8

1,114,000 132,127 1,246,127

1,703,760 165,371 1,869,131

8,741,476

7,868,102

10 12

751,529 566,219 1,317,748

1,090,348 433,124 1,523,472

10 13

159,683 155,809 315,492

221,786 148,839 370,625

Total liabilities

1,633,240

1,894,097

Net assets

7,108,236

5,974,005

Accumulated Surplus Retained surplus

7,108,236

5,974,005

Accumulated Surplus

7,108,236

5,974,005

Note

Assets Current Assets Cash and cash equivalents Trade and other receivables Inventories Other current assets Financial assets at fair value through profit or loss Total Current Assets Non-Current Assets Property, plant and equipment Intangible assets Total Non-Current Assets Total assets Liabilities Current Liabilities Trade and other payables Provisions Total Current Liabilities Non-Current Liabilities Other payables 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 18 to 36.

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Financial Statements for the Year Ended 31 December 2009 Cash Flow Statement for the Year Ended 31 December 2009 2009 $

2008 $

21,636,356 128,567

18,845,229 226,167

(4,611,942) (15,803,762)

(4,238,209) (14,715,548)

1,349,219

117,639

Cash Flows from Investing Activities Purchase of financial asset at fair value through profit or loss Purchase of property, plant and equipment Purchase of intangible asset

(100,000) (65,165) (6,896)

(289,194) (197,970)

Net Cash Flows Used in Investing Activities

(172,061)

(487,164)

Net increase/(decrease) in cash held

1,177,158

(369,525)

Cash at the beginning of the financial year

4,040,393

4,409,918

5,217,551

4,040,393

Cash Flows from Operating Activities

Note

Cash receipts in the course of operations Interest received Payments to the International Secretariat and other Amnesty International sections Payments to employees and suppliers Net Cash Flows provided by Operating Activities

Cash at the end of the financial year

The cash flow statement is to be read in conjunction with the notes to the financial report as set out in pages 18 to 36.

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Financial Statements for the Year Ended 31 December 2009 Statement of Changes of Equity for Year Ended 31 December 2009

Accumulated surplus

$ At 1 January 2008 Deficit for the period

Total $

7,365,141 (1,391,136)

At 31 December 2008

5,974,005

At 1 January 2009 Surplus for the period

5,974,005 1,134,231

At 31 December 2009

7,108,236

The statement of changes in equity is to be read in conjunction with the notes to the financial report as set out in pages 18 to 36.

Amnesty International Australia, Annual Financial Report 2009

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Notes to the Financial Statements for the Year Ended 31 December 2009 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 available-for-sale investments and financial assets at fair value through the profit and loss that have been measured at fair value. The accounting policies have been consistently applied, unless otherwise stated. The financial report is presented in Australian dollars, unless otherwise stated. b.

Statement of compliance

The financial report complies with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS). New Accounting Standards and UIG Interpretations Certain Australian Accounting Standards and UIG Interpretations have been recently issued or amended but are not yet effective. These other standards have not been adopted for the year ended 31 December 2009. The directors have yet to finalise their assessment of the impact of these new standards and interpretation. c.

Income tax

Amnesty International Australia 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), Amnesty International Australia completes an annual self-assessment to confirm the exemption. d.

Revenue recognition

Fundraising, bequests, donations and membership fees Contributions from individuals, local groups and networks of Amnesty International Australia 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. Distributions from financial asset at fair value Distributions from the financial asset at fair value through the profit and loss are recognised when received. Currently, it is Amnesty International Australiaâ&#x20AC;&#x2122;s policy to reinvest all distributions.

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Notes to the Financial Statements for the Year Ended 31 December 2009 1. STATEMENT OF ACCOUNTING POLICIES (continued) e.

Cash and cash equivalents

For the purposes of the statement of cash flows, cash includes cash on hand, at-call or short term deposits with a maturity date of three months or less, and are with banks or financial institutions and also those funds held within Amnesty International Australia Groups bank accounts. f.

Trade and other receivables

Trade receivables are recognised initially at fair value, and subsequently measured 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. g.

Inventories

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 â&#x20AC;&#x201C; 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. h.

Property, plant and equipment

Plant and equipment is stated at cost less accumulated depreciation and any impairment in value. 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:

IT equipment Plant and equipment Leasehold improvements

2009

2008

33.3% 25% 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. 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.

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Notes to the Financial Statements for the Year Ended 31 December 2009 1. STATEMENT OF ACCOUNTING POLICIES (continued) h.

Property, plant and equipment (continued)

Derecognition 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. 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. i.

Intangibles

Intangible assets were acquired separately and initially measured at cost. Following initial recognition intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. Intangible assets with finite lives are amortised over the useful life of 5 years and the amortisation expense is recognised in the income statement in the expense category consistent with the function of the intangible asset. j.

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 cashgenerating group of assets to which it belongs. k.

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. Operating lease incentives are recognised as a liability when received and subsequently released over the term of the lease to the income statement. l.

Trade and other payables

Trade and other payables are carried at amortised cost, and 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. m. Provisions Provisions are recognised when Amnesty International Australia 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 Amnesty International Australia expects some or all of the provision to be reimbursed, 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.

Amnesty International Australia, Annual Financial Report 2009

Page 20 of 41

Notes to the Financial Statements for the Year Ended 31 December 2009 1. STATEMENT OF ACCOUNTING POLICIES (continued) m. Provisions (continued) 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. n.

Employee benefits

Wages, salaries and annual leave Liabilities for employee benefits for wages, salaries and annual leave represent present obligations resulting from employeesâ&#x20AC;&#x2122; services provided up to the balance sheet date, calculated at undiscounted amounts based on remuneration rates that the company expects to pay, expected to be settled within 12 months. Long service leave Liabilities for employee benefits for long service leave represent the present value of the estimated future cash outflows to be made by the employer resulting from employeesâ&#x20AC;&#x2122; 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 proportion rates based on expected settlement dates and 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. Superannuation plans Contributions are made by Amnesty International Australia to defined contribution superannuation funds and are charged as expenses when incurred. o.

Foreign currency translations

Both the functional and presentation currency of Amnesty International Australia 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.

Amnesty International Australia, Annual Financial Report 2009

Page 21 of 41

Notes to the Financial Statements for the Year Ended 31 December 2009 1. STATEMENT OF ACCOUNTING POLICIES (continued) 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.

Pro bono services and in-kind support

Amnesty International Australia receives pro bono services or donations from a range of providers including legal, information technology and human resource specialists. For 2009, Amnesty International Australia has assessed the fair or market value of these professional services or goods at $141,660 (2008: $97,265). The value of these services goods are recognised in the accounts as income with an equivalent expense. Amnesty International Australia also receives considerable in-kind support from other individual supporters and no assessment of the value of this support has been attempted. r.

Disposal of surplus

Rule 7.1 of Amnesty International Australia’s Memorandum of Association prohibits the distribution of any surplus to Members. All income must be applied towards the promotion of the objects of Amnesty International Australia. In 2005 the NEC determined that Amnesty International Australia should hold a certain level of reserves. The required level was most recently updated in February 2010. Reserves are cash and cash equivalents, plus land and buildings. The amount of the reserves are determined through an annual risk based assessment based on Amnesty International guidelines. s.

Volunteer workers

Amnesty International Australia receives considerable services from its many volunteers. No assessment of the monetary value of this support has been attempted.

Amnesty International Australia, Annual Financial Report 2009

Page 22 of 41

Notes to the Financial Statements for the Year Ended 31 December 2009 1. STATEMENT OF ACCOUNTING POLICIES (continued) t.

Significant accounting judgements, estimates and assumptions

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. Significant 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. u.

Investments and other financial assets

Financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement are classified as either financial assets at fair value through profit or loss, loans and receivables, held to maturity investments, or available-for-sale investments, as appropriate. When financial assets are recognised initially, they are measured at fair value. The company determines the classification of its financial assets after initial recognition and, when allowed and appropriate, re-evaluates this designation at each financial year-end. (i) Financial assets at fair value through profit & loss Financial assets classified as held for trading are included in the category â&#x20AC;&#x2DC;financial assets at fair value through profit or lossâ&#x20AC;&#x2122;. Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term with the intention of making a profit. Gains or losses on financial assets held for trading are recognised in profit or loss and the related assets are classified as current assets in the balance sheet. (ii) Loans and receivables Loans and receivables are non derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are carried at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired. These are included in current assets, except for those with maturities greater than 12 months after balance date, which are classified as non current. (iii) Available-for-sale-financial assets Available-for-sale-financial assets are those non-derivative financial assets that are designated as available-for-sale or are not classified as financial assets at fair value through profit or loss, held to maturity investments, or loans and receivables. After initial recognition available-for-sale investments are measured at fair value with gains or losses being recognised as a separate component of equity until the investment is derecognised or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is recognised in profit or loss. The fair value of investments that are actively traded in organised financial markets is determined by reference to quoted market bid prices at the close of business on the balance sheet date.

Amnesty International Australia, Annual Financial Report 2009

Page 23 of 41

Notes to the Financial Statements for the Year Ended 31 December 2009 1. STATEMENT OF ACCOUNTING POLICIES (continued) v.

Fundraising activities

As a Charitable Institution and with Fundraising Authority issued by the NSW Government, Amnesty International Australia 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 21 are in accordance with S23 (3) of the Act, Sections 5, 7 and 8 of the Regulations and Authority Condition 7. Donations and bequests Donations and bequests are recognised as income as and when received in Amnesty International Australiaâ&#x20AC;&#x2122;s offices or deposited in Amnesty International Australiaâ&#x20AC;&#x2122;s bank account. As specified in the Act, unsolicited donations, membersâ&#x20AC;&#x2122; donations and bequests are not treated as fundraising income when determining information required under the Act. Costs of fundraising Costs in Note 21 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. 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 2009: 79.8% to non-Members, 20.2% to Members (2008: 76.6% to nonMembers, 23.4% 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. Events have both a campaigning and fundraising objective. In 2007 event costs were allocated 50/50 between campaigning costs and fundraising costs. In 2008 this allocation was reviewed and changed to 75/25 due to events having an increased campaigning focus. This 75/25 allocation remains for 2009. 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.

Amnesty International Australia, Annual Financial Report 2009

Page 24 of 41

Notes to the Financial Statements for the Year Ended 31 December 2009 2. OPERATING SURPLUS The operating surplus has been arrived at after charging / (crediting) the following items:

Amortisation expense Depreciation expense Write-down of inventory to net realisable value Operating lease / rental expense Cost of goods sold Employee benefit expense

2009 $

2008 $

40,140 654,925 (404) 740,239 144,849 5,655,834

32,599 692,657 4,592 717,544 152,609 5,431,986

2009 $ 2,201,186 3,016,365

2008 $ 2,018,144 2,022,249

5,217,551

4,040,393

3. 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 $3,025,984, earns interest at a rate of 3.88% and will mature on 22 January 2010. The fair value of cash and cash equivalents is $5,217,551 (2008: $4,040,393). 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 and is reconciled to the related item in the balance sheet as follows:

Cash on hand Group bank accounts Cash at bank At call deposit Bank short term deposits - maturing within 90 days

2009 $ 2,319 36,067 148,252 2,014,548 3,016,365

2008 $ 2,901 41,305 696,359 1,277,579 2,022,249

Cash assets

5,217,551

4,040,393

Amnesty International Australia, Annual Financial Report 2009

Page 25 of 41

Notes to the Financial Statements for the Year Ended 31 December 2009

3. CASH AND CASH EQUIVALENTS (continued) b. Reconciliation of operating surplus to the net cash flows provided by operating activities 2009 $

2008 $

Operating Surplus / (Deficit) for the year

1,134,231

(1,391,136)

Adjustments for: Amortisation Depreciation Distributions-financial asset at fair value Unrealised gain/loss-financial asset at fair value Sale of financial asset

40,140 654,925 (8,144) (138,030) -

32,599 692,657 (18,379) 402,233 81,359

1,683,122

(200,667)

(31,921) (77,791) 36,666 (400,922) 140,065

(13,566) 43,923 (22,952) 204,900 106,001

1,349,219

117,639

Net cash provided by operating activities before changes in assets and liabilities Changes in assets and liabilities during the financial year (Increase) / decrease in inventories (Increase) / decrease in other assets Decrease / (increase) in receivables (Decrease) / increase in creditors Increase / (decrease) in provisions Net cash provided by operating activities

4. TRADE AND OTHER RECEIVABLES

Trade receivables Other receivables

2009 $ 142,235 317,901

2008 $ 129,088 367,714

460,136

496,802

Trade receivables are non-interest bearing and are generally due on 30 day terms and are normally settled on 60-day terms. Other receivables are non-interest bearing and consist mainly of GST amounts owing from the ATO and recognition of income receivable, and are normally settled within 60 days. The carrying values of receivables are a reasonable approximation of fair value.

Amnesty International Australia, Annual Financial Report 2009

Page 26 of 41

Notes to the Financial Statements for the Year Ended 31 December 2009 4. TRADE AND OTHER RECEIVABLES (continued) Aged receivables Year Ended 31 December 2009

Trade receivables Other receivables

0-30 Days $ 29,462 307,977 337,439

31-60 Days $ 110,710 6 110,716

61-90 Days $ 1,608 9,918 11,526

> 90 Days $ 455 455

Total $ 142,235 317,901 460,136

31-60 Days $ 3,607 4,109 7,716

61-90 Days $ 115,315 18,650 133,965

> 90 Days $ 1,251 1,251

Total $ 129,088 367,714 496,802

Year ended 31 December 2008

Trade receivables Other receivables

0-30 Days $ 8,915 344,955 353,870

There are no receivables past due which are considered impaired.

5. OTHER CURRENT ASSETS

Prepayments Other Assets

2009 $ 181,333 195,209

2008 $ 106,098 192,653

376,542

298,751

Prepayments include salary packaging paid in advance of $44,086. This prepayment had not been recognised in prior years. Other assets represent bonds and deposits paid on activist resource centres around Australia. No other assets are past due. 6. INVENTORIES

Finished goods Campaign materials

2009 $ 95,475 31,828

2008 $ 95,382 -

127,303

95,382

Finished goods represent inventories available for sale. Campaign materials represent inventories which are distributed free of charge as part of our activism and campaigning activities. In prior years any campaign materials available at year end had been expensed and not shown on the balance sheet. For the 2008 year end it was estimated that our campaign materials had a value of $56,070.

Amnesty International Australia, Annual Financial Report 2009

Page 27 of 41

Notes to the Financial Statements for the Year Ended 31 December 2009 7. PROPERTY, PLANT AND EQUIPMENT 2009 $ Plant and equipment, at cost Less: accumulated depreciation Net Plant and equipment Leasehold improvements, at cost Less: accumulated depreciation Net Leasehold improvements Total cost Total accumulated depreciation Total Property, plant and equipment

2008 $

1,334,658 (1,027,866) 306,792

1,317,409 (762,500) 554,909

1,782,197 (974,989) 807,208

1,779,305 (630,454) 1,148,851

3,116,855 (2,002,855) 1,114,000

3,096,714 (1,392,954) 1,703,760

Reconciliations of the carrying amounts for each class of property, plant and equipment are set out below: 2009 $

2008 $

Plant and equipment: Carrying amount at beginning of the year Additions Disposals Depreciation Carrying amount at the end of the year

554,909 62,273 (310,390) 306,792

698,517 202,457 (346,065) 554,909

Leasehold improvements: Carrying amount at beginning of the year Additions Disposal Depreciation Carrying amount at the end of the year

1,148,851 2,892 (344,535) 807,208

1,408,705 86,738 (346,592) 1,148,851

Total Property, plant and equipment: Carrying amount at beginning of the year Additions Disposals Depreciation

1,703,760 65,165 (654,925)

2,107,222 289,195 (692,657)

Total carrying amount at the end of the year

1,114,000

1,703,760

Amnesty International Australia, Annual Financial Report 2009

Page 28 of 41

Notes to the Financial Statements for the Year Ended 31 December 2009 8. INTANGIBLES

Intangible assets, at cost Less: accumulated amortisation

2009 $ 204,865 (72,738)

2008 $ 197,970 (32,599)

Total Intangible assets

132,127

165,371

Reconciliations of the carrying amounts for each class of intangibles are set out below: Intangibles: Carrying amount at beginning of the year Additions Amortisation Carrying amount at the end of the year

165,371 6,896 (40,140)

197,970 (32,599)

132,127

165,371

Financial assets at fair value through profit and loss: Investment in managed fund

1,313,817

1,067,643

Total current financial assets

1,313,817

1,067,643

9. FINANCIAL ASSETS Current

The managed funds reflect a portion of Amnesty International Australiaâ&#x20AC;&#x2122;s financial reserves and are invested with Australian Ethical Investment in the Large Companies Trust. 10. TRADE AND OTHER PAYABLES Current Trade payables Other payables & accruals Non current Lease incentive accrual

477,006 274,523 751,529

751,463 338,885 1,090,348

159,683 159,683

221,786 221,786

Trade payables are non-interest bearing and are settled on the terms specified by the supplier, normally settled on 60-day terms Other payables are also non-interest bearing and are normally settled within 60 days. The lease incentive accrual is an accounting adjustment which spreads rent incentives over the life of the lease. For terms and conditions relating to related parties, refer to Note 20. The carrying values of payables are a reasonable approximation of fair value, due to the short term nature.

Amnesty International Australia, Annual Financial Report 2009

Page 29 of 41

Notes to the Financial Statements for the Year Ended 31 December 2009

10. TRADE AND OTHER PAYABLES (continued) Aged Creditors The table below summarises the maturity profile of the financial liabilities at 31 December 2009. Year Ended 31 December 2009

Trade payables Other payables

0-30 Days $ 465,067 274,523 739,590

31-60 Days $ 2,471 2,471

61-90 Days $ 5,658 5,658

> 90 Days $ 3,810 3,810

Total $ 477,006 274,523 751,529

31-60 Days $ 10,928 10,928

61-90 Days $ 1,161 1,161

> 90 Days $ 33,751 33,751

Total $ 751,463 338,885 1,090,348

Year ended 31 December 2008

Trade payables Other payables

0-30 Days $ 705,623 338,885 1,044,508

11. EMPLOYEE BENEFITS - SUPERANNUATION Amnesty International Australia makes contributions to defined contribution superannuation funds. The amount recognised as an expense in the statement of comprehensive income is $411,519 (2008: $398,018).

12. CURRENT LIABILITIES - PROVISIONS 2009 $ Long service leave Annual leave

Amnesty International Australia, Annual Financial Report 2009

2008 $

204,435 361,784

144,776 288,348

566,219

433,124

Page 30 of 41

Notes to the Financial Statements for the Year Ended 31 December 2009 13. NON-CURRENT LIABILITIES - PROVISIONS 2009 $ Make good provision Long service leave

2008 $

45,720 110,089

45,720 103,119

155,809

148,839

(a) Nature and timing of provisions (i)

Make good provision

In accordance with the lease agreement for our Queensland Action Centre, Amnesty International Australia must restore the premises to its original condition at the end of the lease term in 2012. A provision of $45,720 was raised in 2008 in respect of the companyâ&#x20AC;&#x2122;s obligation to remove leasehold improvements from these leased premises and is included in the carrying amount of the leasehold improvements. (ii)

Long service leave

Refer to note 1(n) for the relevant accounting policy.

Number of employees (Full time equivalent at year end)

2009

2008

14. OPERATING LEASE COMMITMENTS Amnesty International Australia 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 Amnesty International Australia. 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 Amnesty International Australia. There are no restrictions placed upon the lessee by entering into these leases. Future minimum rentals payable under non-cancellable operating leases as at 31 December 2009 are as follows: 2009 2008 $ $ Within one year 796,229 783,266 After one year but not more than 5 years 1,032,293 1,828,522 More than 5 years Total

Amnesty International Australia, Annual Financial Report 2009

1,828,522

2,611,788

Page 31 of 41

Notes to the Financial Statements for the Year Ended 31 December 2009 15. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES Amnesty International Australia’s principal financial instruments comprise cash, short term deposits and investments in managed fund. AIA also has other financial instruments such as trade receivables and trade payables which arise directly from its operations. The main risks arising from Amnesty International Australia’s financial instruments are interest rate risk, equity price risk and liquidity risk. A. Interest rate risk Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of financial instruments. Cash and cash equivalents, as defined in note 1e, are the only financial instruments of the company exposed to changes in interest rates. It is AIA’s policy to invest cash with a recognised financial institution. Total interest earned was $122,926 (2008: $236,313). The weighted average interest rate was 3.33% (2008: 6.38%) The following table demonstrates the sensitivity to a reasonable possible change in interest rates, with all other variables held constant, of the company’s income statement through the impact on floating rate financial assets and financial liabilities. The sensitivity of the income statement is the effect of the assumed changes in interest rates on the net interest income for one year, based on the floating rate financial assets and financial liabilities held at 31 December 2009. The sensitivity analyses do not take account of actions by the company that might be taken to mitigate the effect of such changes.

Increase in basis points

+200 Decrease in basis points

-100

Effect on equity and income statement 2009 2008 $ $ 104,000

81,000

Effect on equity and income statement 2009 2008 $ $ (52,000)

(40,000)

B. Liquidity risk and funding management Liquidity risk is the risk that the company will be unable to meet its payment obligations as and when they fall due. To limit this risk, management has set aside financial reserves (currently invested in managed funds and bank bills) in addition to its core cash base, manages assets with liquidity in mind, and monitors future cash flows and liquidity on a monthly basis. This incorporates an assessment of expected cash flows. Refer to Note 10 for the ageing assessment of financial liabilities.

Amnesty International Australia, Annual Financial Report 2009

Page 32 of 41

Notes to the Financial Statements for the Year Ended 31 December 2009 15. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) C. Equity price risk Equity price risk is the risk that the fair value of equities decreases. The non-trading equity price risk exposure arises from the companyâ&#x20AC;&#x2122;s managed fund investment. The effect on the income statement and equity as a result of a change in the fair value of the managed fund investment at 31 December 2009 due to a reasonably possible change in the following market indices, with all other variables held constant, is as follows: Market indices

Increase in indices (%)

Managed fund

+10

Market indices

Decrease in indices (%)

Managed fund

-5

Effect on equity and income statement 2009 2008 $ $ 131,000

107,000

Effect on equity and income statement 2009 2008 $ $ (66,000)

(53,000)

16. CORPORATE INFORMATION The financial report of Amnesty International Australia for the year ended 31 December 2009 was authorised for issue in accordance with a resolution of the directors on 31 March 2010. Amnesty International Australia 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 2009 there were 13,869 members (2008: 15,577 members). A maximum amount of $100 is guaranteed by each member in the event that the company is wound up.

17. SEGMENT INFORMATION Amnesty International Australia operates in one industry - human rights campaigning, awareness raising and fundraising and in one geographical area - Australia.

18. AUDITORâ&#x20AC;&#x2122;S REMUNERATION 2009 $ Audit of financial report - Ernst & Young Other assurance related services - Ernst & Young

Amnesty International Australia, Annual Financial Report 2009

36,000 1,500

2008 $ 35,400 -

Page 33 of 41

Notes to the Financial Statements for the Year Ended 31 December 2009 19. 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.

20. RELATED PARTIES (a) Directors The names of each person holding the position of Director of Amnesty International Australia during the financial year are: Nicole Bieske, James Sharp, Dawna Wright, Michael Butler, Georgina Perry, Catherine Cooper, Sheena Graham, Caroline Wood, Russell Solomon, Perdita Sonntag, Anthony Mitchell, Maree Klemm, Toni Matulick, Denise Skiffington, Gregory Stitt and Clare Wiseman There were no loans to Directors at any time in the year ended 31 December 2009. 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

Post Employment

Short Term Salary Incl. Leave Paid

Salary Packaging

Bonus

Superannuation

Total

2009

546,725

81,844

5,000

55,186

688,755

2008

580,274

91,394

56,112

727,780

The bonus was assessed in 2009 but related to work performed in 2007.

(c) Transactions with the international movement of Amnesty International and other Amnesty sections. Based on Amnesty International Australiaâ&#x20AC;&#x2122;s financial results from prior periods, the organisation contributes to the international movement via the International Secretariat. The 2009 assessment amount was $4,605,036 (2008: $4,210,343). Actual assessment payments made were $4,605,036 (2008: $4,210,343). During the year Amnesty International Australia 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 2009, an amount of $23,307 (2008: $7,498) is due to the international movement and there was nothing owing from the international movement in 2009 (2008:$16,657).

Amnesty International Australia, Annual Financial Report 2009

Page 34 of 41

Notes to the Financial Statements for the Year Ended 31 December 2009 21. CHARITABLE FUNDRAISING ACT (NSW) 1991 a) Details of aggregated gross income and total expenses of fundraising appeals: Results of fundraising appeals Gross proceeds from fundraising appeals Less: Direct costs of fundraising appeals Net surplus from fundraising appeals

2009 $ 17,285,314 (5,253,114)

2008 $ 15,763,728 (4,537,531)

12,032,200

11,226,197

b) Details showing how funds received were applied to charitable purposes: Application of net surplus obtained from fundraising appeals:

Campaigning, merchandise, governance costs etc Unrealised loss on financial asset at fair value Administration Expenses Total application

2009 $ 14,759,198 -

2008 $ 14,628,049 402,233

834,270

913,966

15,593,468

15,944,278

The shortfall between the $12,032,200 (2008: $11,226,197) surplus available from fundraising appeals conducted and total distribution of $15,593,468 (2008: $15,944,278) was provided by the following sources: 2009 $ 1,711,321

2008 $ 1,707,901

592,133

620,008

1,761,542

379,442

Merchandising

355,762

375,047

Unrealised gain on financial asset at fair value

138,030

Interest and other

136,711

244,547

4,695,499

3,326,945

Donations (from Members) Membership fees Bequests

c) 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, donations from non-Members and numerous fundraising events. Donations and fundraising in this note follow the definition in the Charitable Fundraising Act. As such, there are some differences in the classification of items compared to the statement of comprehensive income but the overall totals remain the same.

Amnesty International Australia, Annual Financial Report 2009

Page 35 of 41

Notes to the Financial Statements for the Year Ended 31 December 2009

21. CHARITABLE FUNDRAISING ACT (NSW) 1991 (continued) d) Comparisons of certain monetary figures and percentages: 2009

2008

Total cost of fundraising/ gross fundraising income

5,253,114 17,285,314

30%

4,537,531 15,763,728

29%

Net surplus from fundraising/ gross fundraising income

12,032,200 17,285,314

70%

11,226,197 15,763,928

71%

Total costs of campaigning, merchandise, governance etc/ total expenditure

15,593,468 20,846,582

75%

15,944,278 20,418,810

78%

Total costs of campaigning, merchandise, governance etc/ total income received

15,593,468 21,980,813

71%

15,944,278 19,090,674

84%

e) Details of Results of Fund Raising Appeals

Types of appeal

Revenue

Fundraising: Revenue/Expense Comparison 2009 2008 Ratio of Expenses cost to Revenue Expenses Revenue

Ratio of cost to Revenue

Mail Appeals Non-member regular giving/donations Events

837,377

322,890

39%

959,306

354,859

37%

16,097,573

4,831,330

30%

14,403,253

4,053,584

28%

350,364

98,894

28%

401,169

129,088

32%

Total

17,285,314

5,253,114

30%

15,763,728

4,537,531

29%

Although Candle Day has a fundraising component, it is primarily an activism and campaigning event. As such, for 2009 its revenue and costs have been included in the â&#x20AC;&#x153;Eventsâ&#x20AC;? category and are split in the same proportion as our other events as outlined in note 1(v). For 2009 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.