Annual Report 2011/12
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William’s Walk, 22nd April 2012
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Contents President’s Message
04
Staff & Board of Directors
06
An Overview of Activities 2011/12
08
A Robust Branch Network throughout NSW
10
Growing our brand & achieving regular & sustained income
12
Developing Strategic Partnerships
14
Directors’ report
15
Lead auditor’s independence declaration
18
Statement of comprehensive income
19
Statement of cash flows
22
Notes to the financial statements
22
Directors’ declaration
32
Declaration by Chief Executive Officer in respect of fundraising appeals
33
Independent audit report
34
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A Message from the President It has been my privilege to fulfil the role as President of Arthritis NSW for the first time this year. We face a most important time ahead for Arthritis NSW as we strive to make life better for people living with arthritis now and in the future. There are about 1.3 million people in NSW who, right now, suffer one form of arthritis. Arthritis can affect anybody from children through to older generations. Virtually everyone eventually gets arthritis - which is why it is important to tackle this condition. Arthritis is one of the 8 National Health Priorities nominated by the Federal Government, yet it attracts limited government support.
We are most fortunate to have a hard working and effective team under the leadership of Chief Executive Karen Filocamo to carry on the good work of providing support to branches/ support groups, of professional education, health information and seminars/webinars across NSW. Raising funds for these services and for medical research into arthritis is crucial, as is fighting for the needs of the arthritis community in the NSW Health system. We are most fortunate to have the great support of volunteers amongst our members and branches/ support groups who support our activities and who do such great work in the community.
Interestingly, the age profile of our population is increasing as the baby boomer generation moves through to retirement – so the cost and the need will increase in coming years. By 2050, Arthritis Australia forecasts that 7 million Australians will have arthritis.
All this has been undertaken in the current difficult economic environment which is affecting virtually everyone around the world. The impact on Arthritis NSW has been a decline in income, particularly in the area of bequests.
Of course financial cost is one thing, but human cost is another as we seek to improve the quality of life of everyone who already has arthritis, and to improve the lives of future generations as well.
At time of writing, we are well advanced in refreshing our strategic plan with a vision, mission and program to take us to 2020. Our goal is to increase our educational and research efforts and we need to diversify and grow our fundraising to ensure that we can do so.
4 | Arthritis NSW
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A major success story this year has been our inaugural “William’s Walk” held on the beautiful walking track between Bondi and Bronte. William’s Walk was in memory of young William Harris who died from the effects of juvenile arthritis in 2011. The Walk was supported by Waverley Council and our major sponsor Pfizer. It was fantastic to see 550 people come out to support the Walk, including a large number of volunteers who helped guide people along the track. We plan to make this a growing annual event and will continue working with William’s parents Lauren and David to keep William’s memory alive and create a lasting positive benefit to the arthritis community from this devastating personal tragedy. We greatly appreciated the wonderful support we received from our Patron, the Governor of NSW, Professor Marie Bashir AC CVO, who supported us by attending some of our events. Governor Bashir is admired by all for her down to earth approach and easy personal interaction. Her support of arthritis is not just a matter of position but of personal experience and her commitment to the needs of people with arthritis sufferers is exceptional.
Finally I would also like to thank our Board Directors, all of whom are volunteers and give generously of their time. In particular may I record our thanks once again for the great efforts of our David Riches who left us after ten years last year, and may I welcome two new Board Members, Doris Carrall and Allan Ryan. Many of you will know Doris who has been leading our Ryde branch for some years and has been an active volunteer working in our North Ryde Offices each week. Doris is a great advocate for the branches and has added tremendous value in that capacity. Allan, in his professional life, is Chief Executive of the Hargraves Institute and has added a new dimension in terms of his commercial acumen and insights, and his professional network. We thank both Doris and Allan for their contribution to date. In the year ahead, we look forward to launching our new Strategic Plan and redoubling our efforts to position Arthritis NSW for the growing needs of everyone with Arthritis. Thank you all for your ongoing support. Greg Monaghan
We also want to thank all the dedicated health professionals who support Arthritis NSW including Dr Davinder Singh Grewal, Dr Jeff Chaitow, Professor David Hunter and Robyn Speerin from the Agency for Clinical Innovation. We also receive wonderful support from health professionals on our Board and Sub Committees and these people are personally mentioned later in the report.
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Staff & Board of Directors ARTHRITIS NSW STAFF This year we welcomed our new Business Manager, Michael Fazio and our new Health Promotion Officer, Alex Jaksetic. These people came to us with valuable knowledge and experience, injecting a high level of professionalism into the organisation. We bid farewell to the following staff; Therese Carew and Carol Barnes. Carol has retired after many years at ANSW and we thank her for her contribution during this time.
Our staff currently includes: Chief Executive Karen Filocamo Bachelor of Arts (Communication), Masters Health Administration
Health Promotion Officer Alex Jaksetic Bachelor of Applied Science (Occupational Therapy)
Manager, Health Promotion and Self-Development Dianne Spragg Bachelor Applied Science (Physiotherapy), Masters Public Health
Membership Officer and Warm Water Exercise Coordinator Melissa Denham
Marketing and Fundraising Manager Rob Novotny Bachelor of Business (Marketing), ADMA DM CertiďŹ cate Business Manager Michael Fazio Bachelor of Commerce
Finance Assistant and Kidsix Coordinator Clarissa Jones Receptionist and Information Officer Ingrid Player Executive Assistant Brooke Jay Branches and Community Liaison Officer Nena Doyle
Self-Management Program Development Officer Eloise Buggy Bachelor of Science, Masters of Public Health
6 | Arthritis NSW
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Board of Directors We are fortunate to have the support of a diverse range of dedicated people who fulfil the role of Board Directors in our organisation. These people are:
+ Greg Monaghan, President + Judith Cantor, Vice President + Dennis Messner, Hon. Treasurer + Evan Manolios, Company Secretary + Diana Aspinall + Doris Carrall + Prof Nick Manolios + A/Prof Ben Marosszeky + Cosi Pupo + Allan Ryan + Neil Wildman Once again, this year the Board had a successful planning day, which addressed governance issues within the organisation. We would also like to thank the following people who have assisted the Board through their participation in Board subcommittees:
Research Committee
+ Dr Tanya Covic
Education Committee
+ Dr Ana Ananda + Bill Brennan + Verona Du Toit + Kim Hamrosi + Nadine Morkos + Dr John Parikh + Dr Bethan Richards We appreciate all of these people giving their time so willingly to support our organisation.
Volunteers Arthritis NSW could not function without our incredibly dedicated volunteers who work alongside us all year. The following people fulfilled various roles in the organisation and contributed to our ongoing success:
+ Doris Carrall + Carina Gleeson + Lauren Harris + Toni Markovina + Elmo Meadley + Dianne Morris + Monika Staszek-Konarska + Natalie Szurminski
We must also make special mention of all the volunteers who run our branch and support group networks throughout New South Wales. Many of these people have fulfilled these roles for more than 20 years and we are extremely grateful. To all our branch executives we say a huge thank you for everything you do for the arthritis community. We would also like to sincerely thank all our volunteer warm water exercise leaders around the state. We could not provide these sessions without these dedicated leaders and pool captains. Annual Report 2011/2012 | 7
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An Overview of activities in 2011/12 The Arthritis NSW health promotion team provides a range of community and health professional health promotion and educational activities that raise awareness and knowledge of arthritis and osteoporosis in the community and assist those with arthritis and / or osteoporosis to manage their condition in the best way possible.
DUE TO A TEAM RESTRUCTURE IN MAY 2011 THE TEAM WAS 50% SMALLER IN 2011 / 12 THAN THE PREVIOUS FINANCIAL YEAR. THIS IS REFLECTED IN SOME OF THE ACTIVITY DATA. Seminars
Webinars
During 2011/2012 there were four community seminars. These were held at Bankstown, Campbelltown, Caringbah and Wollongong. The Caringbah seminar focused on osteoporosis while all other seminars had an arthritis theme. The Bankstown seminar was held as part of Arthritis Awareness Week 2012. Attendance at seminars ranged from 32 – 46. Total attendance for the four seminars was 153 with an average attendance of 38.
During 2011/2012 webinars became a regular part of the team’s education program. Webinars are seen as a beneficial way to provide services to working age people and those living in regional, rural and remote areas. They provide an alternative way to deliver information than face-to-face events and will continue to be offered as part of the team’s range of services. Two community webinars were held during the year. The first was conducted on the topic of chronic pain by physiotherapist Lois Tonkin and Clinical Psychologist, Dr Sarah Overton. The second was on the topic of Juvenile Idiopathic Arthritis (JIA) and was presented by Paediatric Rheumatologist, Dr Singh-Grewal. Overall there were a total of 87 registrations for the two webinars.
The team extends a heartfelt thanks to all of the rheumatologists, orthopaedic surgeons and allied health professionals who generously gave their time to present at these seminars. These events would not be possible without the wonderful ongoing support of these professionals.
Community Education Sessions
Arthritis Awareness Week
The team introduced a new Falls Prevention community education session during the year. As a result there are now six different education sessions available for the community. The 2011 / 12 year saw 60 education sessions being conducted to a total audience of 1286 people. The average attendance at sessions was 21.
Arthritis Awareness Week 2012 was celebrated during the week commencing Sunday 25 March. The theme for this year’s awareness campaign was osteoarthritis. The week saw a number of team activities being held including the JIA webinar, Bankstown seminar and the commencement of a Rheumatoid Arthritis six week program
8 | Arthritis NSW
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Self-management programs
Camp Twinkletoes
The team has five different self-management programs available to assist members of the community in the management of their arthritis and / or osteoporosis. The courses available are Challenging Arthritis, the Moving On Program, the Osteoarthritis of the Knee program, the Osteoporosis Program and the Rheumatoid Arthritis Program. During the year the following programs were conducted:
Camp Twinkletoes is an annual camp for children under eight years of age with JIA and their families. The 2012 camp was held from 11 – 13 May at ‘The Tops’ Convention Centre, Stanwell Tops. The camp was attended by 13 families, 8 of whom were new, which represented an eighty five percent increase compared with last year.
Challenging Arthritis Self-directed learning
Participants : 58
Osteoarthritis of the Knee Programs: 4
Participants: 35
Osteoporosis Program Programs: 3
Participants: 27
Rheumatoid Arthritis Program Programs: 1
Participants: 14 Total
Programs: 8 (+ selfdirected learning)
Participants: 134
Telephone Information Service As a result of lower staffing levels during the year the phone information service was required to restructure to a 1 day per week service. The service now runs each Wednesday with the aim of increasing the hours available as staff levels increase. The service dealt with 656 calls during the year. This represents a 59 percent decrease compared with the previous year, however, this appears to correlate with a significant increase in the use of the Arthritis NSW website. The decrease in phone inquiries is a phenomenon that is being observed nationally as more people access information on the website.
The support of the Arthritis NSW branches and support groups in fundraising for the camp is again acknowledged and is sincerely appreciated. A sincere thanks is also extended to the volunteers who assisted with the camp.
Other Health Promotion Team activities Other health promotion team activities conducted during the year included participation in the following events:
+ Manly Waters Private Hospital Health Expo + Westmead Rehabilitation Centre Community Expo
+ St George Hospital Injury Prevention Day + NSW Health Falls Prevention Network Forum + Agency for Clinical Innovation Musculoskeletal Network Forum
+ Combined Pensioners and Superannuants Association volunteer speaker training
+ NSW Health, Health Professional’s Falls Prevention Network Forum
Development of new resources In response to consumer need three new resources were developed during the year as follows:
+ Rheumatoid arthritis and fatigue + Rheumatoid arthritis and blood tests + Arthritis and your feet Annual Report 2011/2012 | 9
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A Robust Branch Network throughout NSW ARTHRITIS NSW HAS A STRONG NETWORK OF OVER 40 BRANCHES AND SUPPORT GROUPS ACROSS THE STATE. Currently sixty three percent of groups maintain a formal branch structure with an executive committee. The remaining thirty seven percent of groups have elected to function in a less formal way, as a support group with group coordinators. The 2011 / 2012 year saw the closure of the Batemans Bay and Bathurst branches. The executive committees and members of these groups are thanked for their commitment and participation. In 2011 Life Membership Awards were presented to:
+ Doris Bornemann - Bathurst Branch + Jill McCleer - Woy Woy Branch + Pam Shurmer - Bathurst Branch + Marjorie Taylor - Tuggerah Lakes Support Group
This year regional meetings were held in Corowa, Figtree, Grafton, MayďŹ eld, Molong, Port Macquarie, Ryde and The Entrance. These meetings are a valuable opportunity to discuss branch issues and inform members about state and national activities. An education session on complementary medicines, falls prevention or osteoporosis was presented as part of this year’s regional meetings with all sessions being received very positively. Another major feature of branch support this year was the running of volunteer warm water exercise leader training. Training was held in Albury, Coffs Harbour and Wagga Wagga with 38 leaders being trained.
Congratulations go to these long-term, committed and dedicated members.
10 | Arthritis NSW
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Promoting Research At Arthritis NSW we are committed to supporting research into the causes and treatment of arthritis. It is through the member contributions that substantial amounts can be collected to provide a scholarship or support a project that would normally lack the interest of the general research fraternity or be so clearly early in development that no one else would be willing to support the project at this stage. Scholarships provide a career development for young doctors and scientists that continue to work in the field of musculoskeletal medicine. Their return is so much more than the initial financial investment. We need to develop a ground swell of interest in research, to support projects, to encourage and attract young doctors and scientists to continue to work in research, thereby helping young talented people to help us.
The return on that initial investment was to develop a unit that trained 14 new rheumatologists that are now servicing different parts of NSW, to provide support for biomedical scientists currently researching and teaching others. In the last few years the Board has instituted a Research Sub Committee to review its research program with a view to creating a new research strategy for the organisation which will be announced in coming months. The major research initiative supported this year was the ongoing grant of $35 000 to the Rheumatology Unit at Westmead Hospital. Funding for this project has allowed the development of new drugs and improved means of delivering drugs to joints maximising effectiveness and minimising systemic side-effects. The novel drugs and delivery systems are both currently still under investigation.
As a way of example, the ANSW Board a decade ago had the vision to establish a rheumatology position at Westmead Hospital for the teaching and research of rheumatic conditions, and to service the community in the West of Sydney.
A STRONG MEMBERSHIP BASE ACROSS NSW Our membership total for 2011/12 was 4,704. This represents a small decrease compared to 2010/11 (with 5,004 members). The number of new members joining the organisation was 581 during the year.
We also established a new membership program, making membership easier for members and also providing more member benefits. There was a slight price increase across all memberships, to address rising service costs.
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Growing our brand & achieving regular & sustained income THIS YEAR WE RECEIVED ONGOING SUPPORT FROM GOVERNMENT, CORPORATE & OTHER GENEROUS SUPPORTERS. Government Grants
Splash for Arthritis
We received $39,000 from Westerrn Sydney Local Health District under the Non-Government Organisation funding program. We gratefully acknowledge the support of NSW Health in providing this grant which contributes to education activities.
Our second annual event during Arthritis Awareness Week - Splash for Arthritis, Australia’s largest Zumba fiesta, saw a total of 85 people attend the class at Macquarie University Sports and Aquatic Centre.
Pfizer Australia We received a special grant of $40,000 from Pfizer Australia for our events programs which included Splash for Arthritis, William’s Walk and the Afternoon Tea with the Governor. We thank them for their special contribution to the organisation.
Commonwealth Bank Staff Foundation In November we received a grant of $10,000 from the Commonwealth Bank Staff Foundation, towards the costs of Camp Footloose, our annual week-long camp for children with JIA running in September 2012. We express our appreciation to the Commonwealth Bank for supporting the camp.
All British Car Club Once again this year the All British Car Club has provided wonderful support to us with a donation of $7,000 from their annual display at The Kings School. We appreciate the ongoing support we receive from this car club which goes towards Camp Footloose.
William’s Walk Our first annual event to raise money for kids with arthritis and also to remember William Harris saw a total of 554 people attend the walk at Bondi beach. A total of $103,000 was raised from the walk. We also had exposure on Channel 9 news, the Today Show and Sunrise. A special thanks goes to Waverley Council for letting us have this event. Another very important thank you goes to the Harris family and friends for their tireless efforts
Afternoon tea with the Governor In April we hosted an afternoon tea with our patron, The Governor of NSW, Her Excellency, Professor Marie Bashir at Government House. eighty members attended this lovely event.
Website We are continually updating our website to make it easier to navigate and further developing our online capabilities. On average, we had 25,000 visitors per quarter. Stage two of the website will be released in late 2012/early 2013.
Roche We received $1,000 from Roche, at the request of parents who participated in development of their new JIA materials. ANSW appreciates the contribution from Roche which was very generous. 12 | Arthritis NSW
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Art Exhibition
Kidsflix
In October 2011, we hosted a special art exhibition to raise funds for Arthritis NSW. We had a total of 20 paintings for silent auction. A total of $5,000 was raised from the night. A special thanks goes to all of contributors to the art exhibition, they include; Lorna Fitzpatrick, Joy Maidment, Ann Greenwood, Vicki James, Valda Iverson, Elaine Hallmark, Janet Kennedy, Ilona Cox, Dianne Johnson, Bettie Griffiths, Dorothy Mackay, Natalie Tan, Jennifer Channing and Mary Douglas. A special thanks also to our patron, Her Excellency, Professor Marie Bashir for attending.
Kidsflix continues to be a successful activity for children across NSW with juvenile arthritis or other physical disabilities. As well as seeing a current movie; drinks, popcorn, clowns and face painters add to the fun. This year Kidsflix movie days were held at Entertainment Quarter, Ballina, Orange, Bathurst, Dubbo, Castle Hill, Penrith, Charlestown, Warringah Mall, Shellharbour, Miranda and Gosford.
Appeals Given the limited amount of government funding we receive, we could not function without the support from our appeals. Thanks to the generosity of 1,504 supporters, in 2011/12 we raised a total of $109,467; this is up from $102,737 in 2010/11. This year we will continue with the same number of appeals and will continue to develop fundraising strategies such as follow-up mailings for our regular appeals.
Donors In these difficult economic times we depend on the generosity of donors to enable us to continue providing our diverse range of services. Apart from appeals, we have received donations from other sources including general donations, donations through our magazine Arthritis Matters and Christmas card donations. In 2011/12, we raised a total of $52,846.
Kidsflix has generated $186,588 for Arthritis NSW in 2011/12. We sincerely thank everyone who has donated to Kidsflix and a special thanks to Clarissa Jones, from our office, for coordinating the activity and attending whenever possible, to help it run smoothly. We also thank those local branches and support groups who gave up their time to help out as well.
Alison Watson Memorial Scholarship Award This year, two Alison Watson Memorial Scholarships were awarded to Alannah Krix and Gabrielle Hind. This award is in memory of Alison Watson who triumphed over her crippling arthritis to help our organisation in our early days of development.
Arthritis Matters Our magazine has gone from strength-to-strength focusing more on the needs of our members. We would like to thank everyone who contributed to the magazine. We have also introduced an e-newsletter which goes out every quarter. Annual Report 2011/2012 | 13
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Developing Strategic Partnerships TO PROMOTE THE NEEDS OF THE ARTHRITIS AND OSTEOPOROSIS COMMUNITY, ARTHRITIS NSW WORKS IN PARTNERSHIP WITH MANY OTHER ORGANISATIONS IN GOVERNMENT AND NON GOVERNMENT SECTORS. IN PARTICULAR, WITH ARTHRITIS AUSTRALIA AND THE ARTHRITIS OFFICES IN OTHER STATES. We would also like to express our appreciation to the following groups for helping us raise awareness about the needs of people of all ages living with arthritis and associated musculoskeletal conditions:
+ The NSW Agency for Clinical Innovation (ACI),
in particular the NSW Musculoskeletal Network which is facilitated by the ACI
+ Pfizer Australia + NSW Accessible Transport Committee + NSW Health – Chronic Disease Unit + Waverly Council + Hargraves Institute + Roche Products Limited
We would also like to sincerely thank the following individuals who have given their time to support our organisation:
+ Ms Anna Louise Bouvier, Physiotherapist and Media Spokesperson
+ Dr Davinder Singh Grewal, Paediatric
Rheumatolgist at The Childrens’ Hospital Westmead and Sydney Childrens’ Hospital
+ Dr Jeff Chaitow, Paediatric Rheumatolgist at
The Childrens’ Hospital Westmead and Sydney Childrens’ Hospital
+ Professor David Hunter, Rheumatologist Royal North Shore Hospital
+ Ms Robyn Speerin, Manager ACI Musculoskeletal Network
+ Councillor Leon Goltsman, Waverly Council We would also like to acknowledge the representation of Arthritis NSW Director Diana Aspinall, on the following bodies:
+ Pain Australia Board (as a Consumer Advocate) + NPS Better Choices, Better Health (as a Consumer Advocate)
+ Generic Medicines Advisory Group + Australia & New Zealand College of
Anaesthetists Education & Training Committee
14 | Arthritis NSW
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Arthritis Foundation of New South Wales
Directors’ Report FOR THE YEAR ENDED 30 JUNE 2012 The directors present their report together with the financial statements of Arthritis Foundation of New South Wales (the Company) for the financial year ended 30 June 2012 and the auditor’s report thereon.
1 Directors The directors of the Company at any time during or since the end of the financial year are: Name, Qualifications
Experience
Appointed
Resigned
Mr David Riches
Health Promotion Consultant
22 Dec. 2001
Dec 2011
A/Prof. Jeno Emil Marosszeky Senior Specialist Rehabilitation MB, BS, DPRM, FACRM Medicine Chairman - Education Committee
21 March 1988
Mr Dennis Messner Honorary Treasurer
Chartered Accountant
17 April 2002
Ms Diana Aspinall
Consumer Representative
2 November 2001
Prof Nicholas Manolios
Rheumatologist
18 July 2007
Mr Gregory Monaghan President
Executive and Company Director
17 October 2007
Ms Cosimina Pupo
Legal Consultant
19 December 2007
Mr Neil Wildman
Mental Health and Management
18 September 2010
Ms Judith Cantor
Marketing and Fundraising
16 November 2010
Mr E Manolios
Lawyer
28 March 2012
Ms D Carrall
Retired
28 March 2012
Mr A Ryan
Executive Director
28 March 2012
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Directors’ Report
(continued)
For the year ended 30 June 2012
2 Directors’ meetings The number of directors’ meetings (including meetings of committees of directors) and number of meetings attended by each of the directors of the Company during the financial year are: Director
Mr D Riches Dr JE Marosszeky Mr D Messner Ms D Aspinall Prof N Monolios Mr G Monaghan Ms C Pupo Mr N Wildman Ms J Cantor Ms D Carrall Mr A Ryan
Directors’ Meetings A
B
1 6 5 6 5 6 6 0 5 4 2
2 6 6 6 6 6 6 6 6 4 2
A – Number of meetings attended B – Number of meetings held during the time the director held office during the year
3 Objectives and strategy The company’s objectives are to provide up to date, evidence based health promotion services and programs, promote a support network across the state, maintain strong membership, promote research, ensure sustainability through good governance, grow the Arthritis NSW brand and achieve sustained regular income and strategic partnerships. “The company measures its performance by tracking the achievements against these objectives.”
4. Principal activities The principal activities of the Company during the course of the financial year were delivery of health promotion programs and services, implementation of fundraising and marketing activities, development of new education resources and support to branches and other support networks across NSW. There were no significant changes in the nature of the activities of the Company during the year.
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5. Operating and financial review The deficit of the Company for the year ended 30 June 2012 was $320,831 (2011: $572,437)
6. Membership The Company is a public company limited by guarantee and without share capital. Under the terms of the Company’s Memorandum of Association, every member of the Company undertakes to contribute to the assets of the Company in the event of it being wound up while that person is a member, or within one year after ceasing to be a member, for: payment of the debts and liabilities of the Company (contracted before ceasing to be a member); the costs, charges and expenses of winding up; and the adjustments of the rights of the contributories amongst themselves. Such amount as may be required but not exceeding twenty dollars ($20) per member. The number of members as at 30 June 2012 was 4,704 (2011: 4,750). The total amount that members of the Company are liable to contribute if the Company is wound up is $94,080 (2011: $95,000).
7. Lead auditor’s independence declaration The Lead auditor’s independence declaration is set out on page 5 and forms part of the directors’ report for the financial year ended 30 June 2012. This report is made in accordance with a resolution of the directors:
Mr G Monaghan Moonaghan Director
Mr D Messner Meessner Director Dated at Sydney this
day of September 2012.
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Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001
To: the directors of Arthritis NSW I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year ended 30 June 2012, there have been: (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (ii) no contraventions of any applicable code of professional conduct in relation to the audit.
Carlo Pasqualini Partner Sydney September 2012
We have audited the accompanying financial report of Arthritis Foundation of New South Wales (the Company), which comprises the statement of financial position as at 30 June 2012, the statement of comprehensive income, statement of changes in members’ funds and statement of cash flows for the year ended on that date, notes 1 to 20 comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration. The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement whether due to fraud or error. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall resentation of the financial report.
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Arthritis Foundation of New South Wales Statement of financial positions at 30 June 2012
In AUD
Note
2012
2011
Revenue
4
1,080,967
1,126,152
Other income
735
-
Administrative expenses
(1,277,506)
(1,416,774)
Education expenses
(89,912)
(198,427)
Research expenses
-
(17,667)
Depreciation expense
(36,327)
(69,481)
Marketing and fundraising expenses
(253,530)
(283,084)
Results from operating activities
(575,573)
(859,281)
Finance income
254,742
307,392
Finance costs
-
(20,548)
254,742
286,844
(320,831)
(572,437)
Net change in fair value of available-for-sale financial assets
9,945
(6,753)
Cumulative impairment losses on available-for-sale financial assets reclassified to profit or loss
-
20,548
Other comprehensive income for the year
9,945
13,795
Total comprehensive loss for the year
(310,886)
(558,642)
Net finance income
Deficit for the year
6
Other comprehensive income
The notes on pages 10 to 22 are an integral part of these financial statements.
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Arthritis Foundation of New South Wales Statement of financial positions at 30 June 2012
In AUD
Note
2012
2011
Cash and cash equivalents
7
2,468,757
648,175
Trade and other receivables
8
2,191,732
4,320,569
Inventories
9
7,137
12,825
4,667,626
4,981,569
Assets
Total current assets Other investments
10
240,250
253,305
Property, plant and equipment
11
1,285,601
1,321,879
Total non-current assets
1,525,851
1,575,184
Total assets
6,193,477
6,556,753
Liabilities Trade and other payables
12
178,067
210,006
Employee benefits
13
75,754
96,480
253,821
306,486
15,408
15,133
Total non-current liabilities
15,408
15,133
Total liabilities
269,229
321,619
Net assets
5,924,248
6,235,134
156,773
146,828
Retained surplus
5,767,475
6,088,306
Total members' funds
5,924,248
6,235,134
Total current liabilities
Employee benefits
13
Members' funds Reserves
14
The notes on pages 10 to 22 are an integral part of these financial statements.
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Arthritis Foundation of New South Wales Statement of financial positions at 30 June 2012
Research reserves Education reserve - Alison Watson
Fair value reserve
Retained surplus
Total members' funds
In AUD
Research reserves - McGill Medical Research Trust reserve
Balance at 1 July 2010
3,012
104,033
25,988
6,660,743
6,793,776
Total comprehensive income for the year Deficit for the year
-
-
-
(572,437)
(572,437)
Net changes in fair value of available-for-sale financial assets
-
-
(6,753)
-
(6,753)
Cumulative impairment losses on available-for-sale financial assets reclassified to profit and loss
-
-
20,548
-
20,548
Total other comprehensive income
-
-
13,795
-
13,795
Total comprehensive loss for the year
-
-
13,795
(572,437)
(558,642)
Balance at 30 June 2011
3,012
104,033
39,783
6,088,306
6,235,134
Balance at 1 July 2011
3,012
104,033
39,783
6,088,306
6,235,134
-
-
-
(572,437)
(572,437)
Net change in fair value of available-for-sale financial assets
-
-
9,945
-
9,945
Total other comprehensive income
-
-
9,945
-
9,945
Total comprehensive loss for the year
-
-
9,945
(320,831)
(310,886)
49,728
5,767,475
5,924,248
Other comprehensive income
Total comprehensive income for the year Deficit for the year Other comprehensive income
Balance at 30 June 2012
3,012
104,033
The notes on pages 10 to 21 are an integral part of these financial statements.
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Arthritis Foundation of New South Wales Statement of financial positions at 30 June 2012
In AUD
Note
2012
2011
Cash receipts in the course of operations
1,174,009
1,173,921
Cash payments in the course of operations
(1,666,152)
(1,930,689)
Cash generated used in operations
(492,143)
(756,768)
Interest received
218,088
294,410
Net cash used in operating activities
(274,055)
(462,358)
Investments in call deposits
2,080,252
(1,218,864)
Acquisition of property, plant and equipment
-
(2,420)
Dividends received
14,385
12,982
Net cash (used in)/from investing activities
2,094,637
(1,208,302)
Net increase/(decrease) in cash and cash equivalents
1,820,582
(1,670,660)
Cash and cash equivalents at beginning of year
648,175
2,318,835
2,468,757
648,175
Cash flows from operating activities
Cash flows from investing activities
Cash and cash equivalents at end of year
7
The notes on pages 10 to 22 are an integral part of these financial statements.
For the year ended 30 June 2012
2
1
(a) Statement of compliance
Reporting entity
Arthritis NSW (the Company) is a company limited by guarantee and domiciled in Australia. The address of the Company is Unit 1.15, 32 Delhi Road, North Ryde 2113. The financial statements are as at and for the year ended 30 June 2012. The Company is primarily involved in delivery of services, programs, education and resources for people living with arthritis and osteoporosis. Fundraising and marketing activities are also a significant area of the organisation which support the delivery of the services and other activities. Research into the causes and treatment of arthritis is supported through grants and internal and external research studies.
Basis of preparation
The Company has early adopted AASB 153 Application of Tiers of Australian Accounting Standards and AASB 2010-02 Amendments to Australian Standards arising from Reduced Disclosure Requirements for the financial year beginning on 1 July 2010 to prepare Tier 2 general purpose financial statements. The financial report of the Company is Tier 2 general purpose financial statements which have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements (AASB-RDRs) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001.
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The company is a not-for-profit entity for the purpose of preparing the financial statements. The financial statements were authorised for issue by the Board of Directors on September 2012. (b) Basis of measurement The financial statements have been prepared on the historical cost basis except for available-for-sale financial assets which are measured at fair value. (d) Functional and presentation currency These financial statements are presented in Australian dollars, which is the Company’s functional currency. (e) Use of estimates and judgements The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. 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 and in any future periods affected. There are no judgements made by management in the application of Australian Accounting Standards that have significant effect on the financial report or estimates with a significant risk of material adjustment in the next year.
3
Significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these financial statements. Certain comparative amounts have been reclassified to conform with the current year’s presentation. (a) Financial instruments (i) Non-derivative financial assets
The Company initially recognises loans and receivables and deposits on the date that they are originated. All other financial assets are recognised initially on the date at which the Company becomes a party to the contractual provisions of the instrument. The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Company is recognised as a separate asset or liability. The Company has the following non-derivative financial assets: loans and receivables and availablefor-sale financial assets. Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses. Call deposits with an original maturity greater than three months from acquisition date are classified as receivables. Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits with original maturities of three months or less. Available-for-sale financial assets The Company’s investments in equity securities are classified as available-for-sale financial assets. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses (see note 3(e)(i)), are recognised in other comprehensive income and presented in the fair value reserve in members’ funds.
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3 Significant accounting policies (continued) When an investment is derecognised, the cumulative gain or loss in members’ funds is transferred to profit or loss. Fair value is determined using closing bid prices at reporting date.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
Available-for-sale financial assets comprise equity securities and debt securities.
The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of the property, plant and equipment, and is recognised net within other income/other expenses in profit or loss.
(ii) Non-derivative financial liabilities Financial liabilities are recognised initially on the date at which the Company becomes a party to the contractual provisions of the instrument. The Company derecognises a financial liability when its contractual obligations are discharged or cancelled or expired. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The Company classifies non-derivative financial liabilities into the other financial liabilities category. Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method. Other financial liabilities comprise trade and other payables, and loans and borrowings. (b) Property, plant and equipment (i) Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset.
(ii) Subsequent costs The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the component will flow to the Company, and its cost can be measured reliably. The carrying amount of the replaced component is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred. (iii) Depreciation Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed and if a component has a useful life that is different from the remainder of that asset, that component is depreciated separately. Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment. Land is not depreciated. The estimated useful lives for the current and comparative years are as follows • • •
buildings motor vehicles plant and equipment
40 years 3 - 5 years 3 - 5 years
“Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.”
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3 Significant accounting policies (continued) (c) Inventories Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in first-out principle, and includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. (d) Impairment (i) Non-derivative financial assets A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Company on terms that the Company would not consider otherwise, indications that a debtor or issuer will enter bankruptcy or economic conditions that correlate with defaults or the disappearance of an active market for a security. In addition, for an investment in an equity security, a significant or prologned decline in its fair value below its cost is objective evidence of impairment. The Company considers evidence of impairment for loans and receivables at both a specific asset and collective level. All individually significant receivables are assessed for specific impairment. All individually significant receivables found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified.
Loans and receivables that are not individually significant are collectively assessed for impairment by grouping together loans and receivables with similar risk characteristics. In assessing collective impairment the Company uses historical trends of the probability of default, the timing of recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account against loans and receivables. Interest on the impaired asset continues to be recognised. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss. Available-for-sale financial assets Impairment losses on available-for-sale financial assets are recognised by reclassifying the losses accumulated in the fair value reserve in equity, to profit or loss. The cumulative loss that is reclassified from equity to profit or loss is the difference between the acquisition cost, net of any principal repayment and amortisation, and the current fair value, less any impairment loss previously recognised in profit or loss. Changes in impairment provisions attributable to application of the effective interest method are reflected as a component of interest income. Any subsequent recovery in the fair value of an impaired available-for-sale equity security is recognised in other comprehensive income. (d) Impairment (continued) (ii) Non-financial assets
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3 Significant accounting policies (continued) The carrying amounts of the Company’s nonfinancial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit (CGU) exceeds its estimated recoverable amount. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Depreciated replacement cost is used to determine value in use. Depreciated replacement cost is the current replacement cost of the item less, where applicable, accumulated depreciation to date, calculated on the basis of such cost. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets the “the cash generating unit” or “CGU”. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis. Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
Obligations for contributions to defined contribution pension plans are recognised as an employee benefit expense in profit or loss in the periods during which services are rendered by employees. (ii) Other long-term employee benefits The Company’s net obligation in respect of other long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. (iii) Short-term employee benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profitsharing plans if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. (f) Revenue (i) Goods sold Revenue from the sale of goods in the course of ordinary activities is measured at fair value of the consideration received or receivable, net of returns, discounts and allowances. Revenue is recognised when the significant risks and rewards of ownership have been transferred to the customer, recovery of the consideraiton is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods, and the amount of revenue can be measured reliably. (ii) Services
(e) Employee benefits
Revenue from services rendered is recognised in profit or loss in the period which the service is performed.
(i) Defined contribution plans
(iii) Bequests
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts.
Revenue from bequests is recognised in profit or loss in the period in which it is received and control has passed to the Company.
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3 Significant accounting policies (continued) (iv) Donations, fundraising and grant income Revenue from donations, fundraising and grants is recognised in profit or loss when the Company gains control of the contribution or the right to receive the contribution. (v) Contribution of assets Contributions of assets such as shares, real property, and other securities are recognised in profit or loss when title passes to the Company at the estimated market value. (vi) Members’ subscriptions Members’ subscriptions income is recongised in profit or loss in the financial year to which the membership relates. (g) Government Grants An unconditional government grant is recognised when the Company obtains control of the grant or the right to receive the grant; it is probable that the economic benefits comprising the grant will flow to the company, and the amount of the grant can be measured reliably.
Finance costs comprise impairment losses recognised on available-for-sale financial assets. (i) Income tax The Company has been granted an income tax exemption under Division 50 of the Income Tax Assessment Act 1997. Accordingly no provision for income tax is required. (ii) Goods and services tax Revenue, 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 taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part 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 statment of financial position.
Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash Other grants are recognised initially as deferred flows arising from investing and financing activities income at fair value when there is reasonable assurance which are recoverable from, or payable to, the ATO that they will be received and the Company will comply are classified as operating cash flows. with the conditions associated with the grant and are (k) New standards and interpretations not yet then recognised in profit or loss as other income on a adopted systematic basis over the useful life of the asset. Grants that compensate the Company for expenses incurred are recognised in profit or loss as other income on a systematic basis in the same periods in which the expenses are recognised. (h) Finance income and finance costs Finance income comprises interest income on funds invested, and dividend income on available-for-sale financial assets. Interest income is recognised as it accrues in profit or loss, using the effective interest method. Dividend income is recognised in profit or loss on the date that the Company’s right to receive payment is established, which in the case of quoted securities is normally the ex-dividend date.
A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 July 2011, and have not been applied in preparing these financial statements. None of these is expected to have a significant effect on the financial statements of the Company, except for AASB 9 Financial Instruments, which becomes mandatory for the Company’s 2013 financial statements and could change the classification and measurement of financial assets. The Company does not plan to adopt this standard early and the extent of the impact has not been determined.
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Arthritis Foundation of New South Wales Statement of financial positions at 30 June 2012
4
5
6
7
Revenue In AUD
2011
2010
Bequests
262,151
296,466
Members' subscriptions
82,484
122,448
Fundraising appeals
374,245
274,290
Government grant
39,975
31,350
Other revenue
322,112
401,598
1,080,967
1,126,152
In AUD
2011
2010
Net gain on sale of investment property
786,966
902,360
Contributions in defined contribution plans
75,972
70,638
Decrease in liability for annual leave
(19,723)
-
Decrease in liability for long service leave
(728)
-
862,938
972,998
In AUD
2011
2010
Interest income on short term deposits
218,088
294,410
Dividend income on available-for-sale financial assets
14,385
12,982
Imputation tax refund
22,269
-
Finance income
254,742
307,392
Impairment loss on available-for-sale financial assets
-
(20,548)
Finance costs
-
(20,548)
Net finance income
-
286,844
In AUD
2011
2010
Bank balances
903,924
647,648
Call deposits
1,564,333
-
Petty cash
500
527
Cash and cash equivalents in the statement of cash flows
2,468,757
648,175
Personnel expenses included in the statement of comprehensive income
Finance income and finance costs
Cash and cash equivalents
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8
Trade and other receivables 2011
2010
Trade receivables
5,639
17,170
Interest receivable
31,374
41,293
Prepayments
100
30,108
Deposits
-
3,734
Call deposits
2,148,012
4,228,264
Accued income - franking credit
6,607
-
2,191,732
4,320,569
In AUD
2011
2010
Finished goods
7,137
12,825
7,137
12,825
240,250
253,305
240,250
253,305
In AUD Current
9
10
Inventories
Other investments In AUD Non-current investments Available-for-sale ďŹ nancial assets
11
Property, plant and equipment Buildings
Motor Vehicle
Plant and equipment
Total
Balance at 1 July 2010
1,368,626
29,665
227,455
1,625,746
Additions
-
-
-
-
Balance at 30 June 2012
-
-
(79,038)
(79,038)
Depreciation and impairment losses
1,368,626
29,665
148,417
1,546,708
Balance at 1 July 2010
70,485
29,665
203,717
303,867
Depreciation for the year
34,215
-
-
34,215
Balance at 30 June 2012
-
-
(76,975)
(76,975)
Carrying amounts
104,700
29,665
126,742
261,107
At 1 July 2010
1,298,141
-
23,738
1,321,879
At 30 June 2012
1,263,926
-
21,675
1,285,601
In AUD Cost
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12
Trade and other payables In AUD Current
13
Trade payables
72,192
99,110
Other payables and accrued expenses
105,875
110,896
178,067
210,006
2011
2010
Liability for long service leave
11,195
12,198
Liability for annual leave
64,559
84,282
75,754
96,480
Non-current
15,408
15,133
Liability for long service leave
15,408
15,133
Employee benefits In AUD Current
14
Reserves Education reserve - Alison Watson The education reserve represents the funds received to award school children with education assistance who suffer from arthritis. McGill Medical Research Trust Reserve The McGill Medical Research Trust reserve represents the bequest funds received to be specifically used in the Newcastle/ Hunter region for sufferers of arthritis. Fair value reserve The fair value reserve comprises the cumulative net change in fair value of available-for-sale financial assets until the investments are derecognised or impaired.
15
Members’ liability The Company is a public company limited by guarantee and without share capital. Under the terms of the Company’s Memorandum of Association, every member of the Company undertakes to contribute to the assets of the Company in the event of it being wound up while that person is a member, or within one year after ceasing to be a member, for: - payment of the debts and liabilities of the Company (contracted before ceasing to be a member); - the costs, charges and expenses of winding up; and - the adjustments of the rights of the contributories amongst themselves. Such amounts as may be required but not exceeding twenty dollars ($20) per member. The number of members as at 30 June 2012 was 4,704 (2011: 4,750). The total amount that the members of the Company are liable to contribute if the Company is wound up is $94,080 (2011: $95,000).
16
Related parties Transactions with key management personnel In addition to their salaries, the Company also contributes to post-employment defined contribution funds on behalf of key management personnel. Key management personnel compensation The key management personnel compensation included in personnel expenses (note 6) was $279,308 for the year ended 30 June 2012 (2011: $267,994).
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17
(i)
(ii)
Results of fundraising appeals In AUD
2011
2010
Gross proceeds from fundraising appeals
341,902
146,901
less: Direct costs of fundraising appeals
(100,144)
(50,317)
Net surplus obtained from fundraising appeals
241,758
96,584
Distributions
343,442
469,410
Administration expenses
1,313,833
1,486,254
1,657,275
1,955,664
(1,315,373)
(1,859,080)
In AUD
2011
2010
Bequests
262,151
296,466
Members’ supscriptions
82,484
140,038
Branches income
35,617
58,008
Government grants
31,350
31,350
Investment and interest income
254,742
307,392
Kidsflix income
186,588
184,497
Services income
96,067
114,885
Other income
45,543
154,007
Decreased in accumulated funds
320,831
572,437
1,315,373
1,859,080
The net surplus obtained from fundraising appeals was applied against other expenses incurred. The total of other expenses incurred was as follows:
Shortfall from fundraising appeals (iii)
The shortfall of $1,315,373 (2011: $1,859,080) between the net surplus obtained from fundraising appeals of $241,758 (2011: $96,584) and expenditure and transfers of $1,657,275 (2011: $1,955,664) was provided from the following sources:
18
Results of fundraising appeals (continued)
(iv)
Comparisons of certain monetary figures and percentages
19
2011
2011
2010
2010
$
%
$
%
Total cost of fundraising /
100,144
29%
50,317
34%
Gross income from fundraising
341,902
Net surplus from fundraising /
241,758
Gross income from fundraising
341,902
Total cost of services /
343,442
Total expenditure
1,657,275
Total costs of services /
343,442
Total income received
1,336,444
146,901 71%
98,584
67%
146,901 21%
469,410
24%
1,955,664 26%
469,410
33%
1,412,996
Subsequent events
There have been no events subsequent to balance date which would have a material effect on the Company’s financial statements at 30 June 2012
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Arthritis Foundation of New South Wales
Directors’ Declaration In the opinion of the directors of Arthritis NSW (the Company): (a) the financial statements and notes, set out on pages 6 to 21, are in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Company’s financial position as at 30 June 2012 and of its performance for the financial year ended on that date; and (ii) complying with Australian Accounting Standards -Reduced Disclosure Requirements and the Corporations Regulations 2001. (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. Signed in accordance with a resolution of directors.
Mr G Monaghan Director
Mr D Messner Director Dated at Sydney this 26 day of September 2012.
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Arthritis Foundation of New South Wales
Declaration by Chief Executive Officer in respect of fundraising appeals I, Karen Filocamo, Chief Executive Officer of Arthritis NSW, declare in my opinion: (a) the financial statements give a true and fair view of all income and expenditure of Arthritis NSW with respect to fundraising appeal activities for the financial year ended 30 June 2012; (b) the statement of financial position a true and fair view of the state of affairs with respect to fundraising activities as at 30 June 2012; (c) the provisions of the Charitable Fundraising Act (NSW) 1991 and regulations and the conditions attached to the authority have been complied with for the period 1 July 2011 to 30 June 2012; and (d) the internal controls exercised by Arthritis NSW are appropriate and effective in accounting for all income received. It is not always practicable for Arthritis NSW to establish accounting control over all sources of fundraising activities prior to the receipt of the funds by employees of the Company.
Karen Filocamo K Fil Chief Executive Officer Dated at Sydney this 26 day of September 2012
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Independent audit report to the members of Arthritis NSW
Report on the financial report We have audited the accompanying financial report of Arthritis NSW (the company) which comprises the statement of financial position as at 30 June 2012, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes 1 to 19 comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration. Directors’ responsibility for the financial report The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001, and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. Auditor’s responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We performed the procedures to assess whether in all material respects the financial report presents fairly, in accordance with the Corporations Act 2001 and Australian Accounting Standards, a true and fair view which is consistent with our understanding of the Company’s financial position, and of its performance. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, provided to the directors of Arthritis NSW on 26 September 2012, would be in the same terms if given to the directors as at the time of this auditor’s report. 34 | Arthritis NSW
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Independent audit report to the members of Arthritis NSW Basis for qualified auditor’s opinion Fundraising and bequest income are a significant source of revenue for Arthritis NSW. Arthritis NSW has determined that it is impracticable to establish controls over the collection of Fundraising and bequest prior to entry into its financial records. Accordingly, as the evidence available to us regarding fundraising revenue from this source was limited, our audit procedures with respect to fundraising and bequest had to be restricted to the amounts recorded in the financial records. We therefore are unable to express an opinion whether fundraising and bequest of Arthritis NSW obtained is complete. In our opinion, except for the possible effects of the matter described in the Basis for qualified opinion paragraph, the financial report of Arthritis NSW is in accordance with: the Corporations Act 2001, including: (i) giving a true and fair view of the Company’s financial position as at 30 June 2012 and of its performance for the year ended on that date; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. Qualified audit opinion pursuant to the Charitable Fundraising (NSW) Act 1991 In our opinion, except for the possible effects of the matter described in the Basis for qualified opinion paragraph: (i) the financial report gives a true and fair view of the financial result of fundraising appeal activities for the financial year ended 30 June 2012; (ii) the financial report has been properly drawn up, and the associated records have been properly kept for the period from 1 July 2011 to 30 June 2012, in accordance with the Charitable Fundraising (NSW) Act 1991 and Regulations: (iii) money received as a result of fundraising appeal activities conducted during the period from 1 July 2011 to 30 June 2012, has been properly accounted for and applied in accordance with the Charitable Fundraising (NSW) Act 1991 and Regulations; and (iv) there are reasonable grounds to believe that Arthritis NSW will be able to pay its debts as and when they fall due.
Carlo Pasqualini Partner Sydney 2 October 2012 Annual Report 2011/2012 | 35
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Arthritis NSW Locked Bag 2216, North Ryde NSW 1670 Phone: 02 9857 3300 Fax: 02 9857 3399 Toll Free: 1800 011 041 www.arthritisnsw.org.au Authority to fundraise CFN12845
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