Financial Report
ANNUAL REPORT 2016-17
FINANCIAL REPORT 2016-17
TREASURER’S REPORT
2
FINANCIAL REPORT 2016-17
3
FINANCIAL REPORT 2016-17
WHERE THE FUNDS COME FROM... Donations 11%
Grant Income 30%
Fundraising 30%
Interest 1% Sundry 2%
Retail 5%
Bequest 21%
WHERE THE FUNDS GO... Quit Tasmania 22%
Cancer Prevention Research & Support 43%
Advocacy 3%
Corporate 12%
4
Business Development 20%
FINANCIAL REPORT 2016-17 INCOME & EXPENDITURE STATEMENT FOR THE YEAR ENDED 30 JUNE 2017 INCOME Bequests and Donations Fundraising Grants Merchandising
2017 $
2016 $
2 3 4 5
1,373,622 1,288,368 1,601,889 100,840
886,873 1,330,214 2,041,021 110,798
6
162,934 196,859
Note
Other Income TOTAL INCOME LESS EXPENSES Administration
4,527,653 4,565,765
7
NET INCOME AVAILABLE FOR ALLOCATION
ALLOCATION OF INCOME Research Grants Program Support TOTAL ALLOCATION NET SURPLUS/(DEFICIENCY) FOR THE PERIOD Other Comprehensive Income TOTAL COMPREHENSIVE INCOME
(1,307,385)
(891,246)
3,220,268 3,674,519
8 9
(94,464) (3,000,073)
(261,175) (3,945,643)
(3,094,537)
(4,206,818)
125,731 -‐ 125,731
(532,301) -‐ (532,301)
These financial statements should be read in conjunction with the attached notes
5
5
FINANCIAL REPORT 2016-17 BALANCE SHEET AS AT 30 JUNE 2017 Note ACCUMULATED FUNDS AND RESERVES Accumulated Funds The Cancer Council Foundation Reserve TOTAL
2017 $
2016 $
19 19
1,292,352 1,166,621 2,950,337 2,950,337 4,242,689 4,116,958
10 11
2,659,900 23,769 36,364 1,165,256 201,818 4,087,107
REPRESENTED BY: CURRENT ASSETS Cash and Cash Equivalents Trade and Other Receivables Inventory Available-‐for-‐Sale Land and Buildings Other Assets TOTAL CURRENT ASSETS NON CURRENT ASSETS Trade and Other Receivables Property, Plant and Equipment TOTAL NON CURRENT ASSETS
22 12
11 13
TOTAL ASSETS
325,612 314,149 3,448,269 4,703,356 3,773,881 5,017,505 7,860,988 7,482,296
CURRENT LIABILITIES Trade and Other Payables Provisions Other Financial Liabilities Other Liabilities TOTAL CURRENT LIABILITIES
14 15 16 17
943,439 179,372 441,221 285,874 1,849,906
NON-‐CURRENT LIABILITIES Provisions Other Liabilities TOTAL NON-‐CURRENT LIABILITIES
15 17
51,751 44,021 1,716,642 1,991,053 1,768,393 2,035,074
406,783 174,422 415,076 333,983 1,330,264
TOTAL LIABILITIES
3,618,299 3,365,338
NET ASSETS
4,242,689 4,116,958
These financial statements should be read in conjunction with the attached notes
6
2,298,421 72,801 43,798 -‐ 49,771 2,464,791
FINANCIAL REPORT 2016-17
STATEMENT STATEMENT OF CHANGES OF ICN HANGES EQUITY IN EQUITY FOR THE YEAR FOR ETNDED HE YEAR 30 JEUNE NDED 2017 30 JUNE 2017
BALANCE AS ABALANCE T 1 JULY 2A015 S AT 1 JULY 2015 omprehensive Comprehensive Income Income urplus/(Deficit) Surplus/(Deficit) for the Year Afttributable or the Year to Attributable Members otf o the Members Entity of the Entity Other Comprehensive Other Comprehensive Income for the Income Year for the Year otal Comprehensive Total Comprehensive Income Attributable Income to Attributable Members otf o the Members Entity of the Entity BALANCE AS ABALANCE T 30 JUNE AS 2016 AT 30 JUNE 2016
BALANCE AS ABALANCE T 1 JULY 2A016 S AT 1 JULY 2016 omprehensive Comprehensive Income Income urplus for the Surplus Year Afttributable or the Year to Attributable Members otf o the Members Entity of the Entity Other Comprehensive Other Comprehensive Income for the Income Year for the Year otal Comprehensive Total Comprehensive Income Attributable Income to Attributable Members otf o the Members Entity of the Entity BALANCE AS ABALANCE T 30 JUNE AS 2017 AT 30 JUNE 2017
Cancer Council Cancer CAccumulated ouncil Accumulated Foundation Reserve Funds Foundation Reserve FundsTotal $ $ $ $ $
2,950,337 2,950,337 1,698,922 1,698,922 4,649,259 4,649,259
-‐ (532,301) -‐ (532,301) (532,301) (532,301) -‐ -‐ -‐ -‐ -‐ -‐ -‐ (532,301) -‐ (532,301) (532,301) (532,301) 2,950,337 2,950,337 1,166,621 1,166,621 4,116,958 4,116,958 2,950,337 2,950,337 1,166,621 1,166,621 4,116,958 4,116,958 -‐ 125,731 -‐ 125,731 125,731 125,731 -‐ -‐ -‐ -‐ -‐ -‐ -‐ 125,731 -‐ 125,731 125,731 125,731 2,950,337 2,950,337 1,292,352 1,292,352 4,242,689 4,242,689
hese financial These statements financial should statements be read should in conjunction be read in wcith onjunction the attached with ntotes he attached notes
7
Total $
FINANCIAL REPORT 2016-17 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017 Note
2017 $
2016 $
20
1,364,195 1,373,622 1,650,274 352,379 54,649 (4,361,367) 433,752
1,804,657 886,780 1,844,880 275,846 100,374 (5,268,314) (355,777)
CASH FLOWS FROM OPERATING ACTIVITIES Grants Received Receipts from Bequests and Donations Receipts from Fundraising Receipts from Other Operations Interest Received Payments to Suppliers NET CASH FLOW FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Payments for Plant and Equipment Payments for Motor Vehicles Payments for Leasehold Improvements Proceeds from Sale of Motor Vehicles NET CASH FLOWS FROM INVESTING ACTIVITIES
(20,272) -‐ (45,398) (110,183) (25,239) -‐ 18,636 56,847 (72,273) (53,336)
NET CASH FLOWS FROM FINANCING ACTIVITIES
-‐ -‐
Net Increase/(Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at the Beginning of the Financial Year CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
361,479 (409,113) 2,298,421 2,707,534 2,659,900 2,298,421
These financial statements should be read in conjunction with the attached notes
8
10
FINANCIAL REPORT 2016-17 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Board has determined that the Association is not a reporting entity because in the opinion of the Board there are unlikely to exist users of the financial report who are unable to command the preparation of reports tailored as to satisfy their needs. Accordingly, this special purpose report is prepared to satisfy the financial reporting requirements of the Associations Incorporation Act (Tas) 1964. The financial report has been prepared in accordance with the requirements of the Associations Incorporation Act (Tas) 1964 and the following Australian Accounting Standards as required by the Australian Charities and Not-‐for -‐Profit Commission: AASB101 Presentation of Financial Statements AASB107 Statement of Cash Flows AASB108 Accounting Policies, Changes in Accounting Estimates & Errors AASB110 Events After the Reporting Date AASB1031 Materiality AASB1048 Interpretation of Standards AASB1054 Australian Additional Disclosures No other applicable Accounting Standards, Interpretations or other authoritative pronouncements of the Australian Accounting Standards Board have been applied. The Association is a not-‐for-‐profit entity. (a) Property, Plant & Equipment Cost and valuation Freehold land and buildings on freehold land are measured on a fair value basis. An independent valuation of buildings was undertaken as at 30 June 2013 and will be undertaken every five years, unless there is an observable change in market values, at which time the asset class is reviewed to ensure that it does not differ materially from the asset’s fair value at that date. Where necessary, the asset is revalued to reflect its fair value. All other classes of property, plant and equipment are measured at cost. Depreciation Depreciation is provided on a straight-‐line basis on all property, plant and equipment, other than freehold land, so as to write off the net cost of each asset over its expected useful life. Expected useful life is 4-‐5 years for office equipment, 6.5 years for motor vehicles, 10 years for office furniture, 40 years for buildings and the term of the lease for leasehold improvements. (b) Inventory Inventory is measured at the lower of cost and net realisable value. (c) Income Tax The organisation is exempt from paying income tax due to its being a non-‐profit institution in terms of Division 50 S272-‐100 of the Income Tax Assessment Act 1976, as amended. (d) Investments Investments are valued either at cost less any accumulated impairment expense. (e) Comparatives Where necessary, comparatives have been reclassified and repositioned for consistency with current year disclosures. (f) Provisions Provision is made in respect of the Association's liability for annual leave and long service leave. Long service leave is recorded at the present value of estimated future cash flows. Annual leave is recorded at the nominal amount. g) Cash and Cash Equivalents Cash and cash equivalents comprise cash on hand, cash in banks and investments in money market instruments with an original maturity of 3 months or less, net of outstanding bank overdrafts. (h) Goods and Services Tax Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST) except: i. Where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or ii. For recoverables and payables which are recognised as inclusive of GST.
9 Page 5
FINANCIAL REPORT 2016-17
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 (h) Goods and Services Tax (continued) The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables. Cash flows are presented on a gross basis. The GST component of cash flows arising on financing or investing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from grants or payments to suppliers. (i) Trade and Other Payables Trade payables and other accounts payable are recognised when the Association becomes obliged to make future payments resulting from the purchase of goods and services. (j) Committed Funds and Research Funds Committed Committed Funds payable are recognised once the funds are received by the Association relating to a specific project and the funds are committed to these projects. Research grants are recognised when the Association has approved the grant. (k) Trade and Other Receivables Trade receivables and other receivables are recorded at amounts due less any allowances for doubtful debts. (l) Sale of Goods Revenue from the sale of goods is recognised when all the following conditions are satisfied: -‐ the Association has transferred to the buyer the significant risks and rewards of ownership of the goods; -‐ the Association retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; -‐ the amount of revenue can be measured reliably; -‐ it is probable that the economic benefits associated with the transaction will flow to the entity; and -‐ the cost incurred or to be incurred in respect of the transaction can be measured reliably. This is presented net of direct expenses associated with the sale of merchandise. (m) Interest Revenue Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset. (n) Grant Income Grants are assistance by the government or other body in the form of transfers of resources to the Association in return for past or future compliance with certain conditions relating to the operating activities of the Association. Government grants are not recognised until there is reasonable assurance that the Association will comply with the conditions attaching to them and the grants will be received. Deferred Government Grant relates to an infrastructure loan that converts to a non-‐refundable grant over a 10 year period. (o) Donation and Fundraising Revenue Donation and fundraising revenue is recorded when received by the Association, net of any direct fundraising costs. (p) Impairment of Non-‐Current Assets At each reporting date, the Association reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). If the recoverable amount of an asset is estimated to be less than its carrying amount of the asset, it is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss. (q) Reserves The Cancer Council Foundation Reserve is used to transfer surplus funds from Accumulated Funds for the purpose of the ongoing viability of the Association. In 2017, there was no transfer of bequest revenue to this reserve (2016 : 0%). (r) Change of Accounting Policy There has been no changes to accounting policies that impact the financial statements.
10 Page 6
FINANCIAL REPORT 2016-17
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017
NOTE 2: BEQUESTS AND DONATIONS Other Bequests Research Donations Other Donations Total Bequests and Donations
2017 $
2016 $
921,849 31,033 420,740 1,373,622
549,866 26,255 310,659 886,780
NOTE 3: FUNDRAISING Fundraising Income Australia's Biggest Morning Tea Daffodil Day Gala Nights Relay For Life Pink Ribbon Other Fundraising Income Total Income
357,813 103,147 280,232 730,233 -‐ 226,957 1,698,382
348,838 105,662 213,875 770,313 108,897 258,901 1,806,486
Fundraising Expenses Running Costs -‐ Fundraising Program Salaries & On-‐Costs Total Expenses Net Contribution from Fundraising
400,511 9,503 410,014 1,288,368
467,170 9,102 476,272 1,330,214
NOTE 4: GRANTS RECEIVED Grants -‐ State Government Grants -‐ Commonwealth Government Grants -‐ Other Grants -‐ Deferred Government Grant Total Grants
1,152,314 153,701 10,000 285,874 1,601,889
1,129,586 621,558 4,003 285,874 2,041,021
NOTE 5: MERCHANDISING Income Sales -‐ Retail Cost of Sales Opening Stock Add: Purchases Less Closing Stock Cost of Sales Gross Profit
11
189,067 216,352 43,798 24,127 80,792 124,590 (36,363) 88,227 100,840
125,225 149,352 (43,798) 105,554 110,798
FINANCIAL REPORT 2016-17
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017
12
NOTE 6: OTHER INCOME Interest Income Program Revenue Royalties Total Other Income
2017 $
2016 $
47,035 71,579 44,320 162,934
107,776 29,768 59,315 196,859
NOTE 7: ADMINISTRATION EXPENSES Depreciation Expense Employee Expenses General Expenses Loss on Disposal of Assets Motor Vehicle Expenses Professional Services Property Expenses Total Administration Expenses
149,684 493,998 458,271 7,944 57,478 5,657 134,353 1,307,385
10,189 505,738 281,137 16,217 48,873 -‐ 29,092 891,246
NOTE 8: RESEARCH GRANTS ALLOCATED Continuing Grants Scholarships and Awards Total Research Grants Allocated
87,500 223,466 6,964 37,709 94,464 261,175
NOTE 9: PROGRAM SUPPORT Advocacy Business Development Support Services Cancer Control Retail Program Total Program Support
292,700 705,612 934,953 1,062,913 3,895 3,000,073
290,169 896,861 976,935 1,774,640 7,039 3,945,644
NOTE 10: CASH AND CASH EQUIVALENTS Cash on Hand Cash at Bank Term Deposits -‐ General Operations Total Cash and Cash Equivalents
26,722 650,920 1,982,258 2,659,900
9,248 210,958 2,078,215 2,298,421
NOTE 11: TRADE AND OTHER RECEIVABLES Trade Debtors Other Debtors Total Trade and Other Receivables -‐ Current
23,769 71,182 -‐ 1,619 23,769 72,801
Other Debtors Total Trade and Other Receivables -‐ Non current
325,612 314,149 325,612 314,149
FINANCIAL REPORT 2016-17
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 2017 $
NOTE 12: OTHER ASSETS Accrued Interest Prepaid Expenses Total Other Assets
2016 $
11,770 19,384 190,048 30,387 201,818 49,771
NOTE 13: PROPERTY, PLANT AND EQUIPMENT Land and Buildings at Cost Less Provision for Accumulated Depreciation
3,400,000 4,621,187 (228,563) (215,214) 3,171,437 4,405,973
Plant and Equipment at Cost Less Provision for Accumulated Depreciation
99,333 79,061 (82,440) (70,098) 16,893 8,963
Motor Vehicles at Cost Less Provision for Accumulated Depreciation
344,333 372,683 (125,735) (106,045) 218,598 266,638
Leasehold Improvements at Cost Less Provision for Accumulated Depreciation
56,812 31,572 (15,471) (9,790) 41,341 21,782
Total Property, Plant and Equipment at Cost & Fair Value Less Provision for Accumulated Depreciation Total Property, Plant and Equipment at Written Down Value
3,900,478 5,104,503 (452,209) (401,147) 3,448,269 4,703,356
Land
Buildings
Opening W DV
1,850,000
2,555,973
Additions
-‐
Disposals/adjustment
-‐
Transfer to Available-‐for-‐Sale
(750,000)
Depreciation Expenses
-‐
Closing WDV
1,100,000
13
P&E
Motor Vehicles
Leasehold I mp
Total
8,963
266,638
21,782
4,703,356
-‐
20,272
45,398
25,240
90,910
-‐
-‐
(415,256) -‐ (69,280) 2,071,437
(12,342) 16,893
(26,581) -‐ -‐ (66,857) 218,598
-‐ (5,681) 41,341
(26,581) (1,165,256) (154,160) 3,448,269
FINANCIAL REPORT 2016-17
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017
NOTE 14: TRADE AND OTHER PAYABLES Trade Payables Unexpended Grants Other Creditors and Accruals Total Trade and Other Payables NOTE 15: PROVISION FOR EMPLOYEE ENTITLEMENTS Current Annual Leave Long Service Leave Non-‐Current Long Service Leave Total Provision for Employee Entitlements NOTE 16: OTHER FINANCIAL LIABILITIES Research Funds Payable Committed Funds -‐ Special Projects Total Other Financial Liabilities NOTE 17: OTHER LIABILTIES Current Deferred Government Grant Deferred Income Non-‐Current Deferred Government Grant Bequest Research Funds in Trust Total Other Financial Liabilities
2017 $
2016 $
76,279 257,004 97,690 49,510 769,470 100,269 943,439 406,783
148,141 135,463 31,231 38,959 179,372 174,422 51,751 44,021 231,123 218,443
177,547 186,623 263,674 228,453 441,221 415,076
285,874 285,874 -‐ 48,109 285,874 333,983 1,000,563 716,079 1,716,642 2,002,516
1,286,438 704,615 1,991,054 2,325,036
NOTE 18: RELATED PARTY DISCLOSURES Board of Directors The Cancer Council Tasmania operates with a voluntary Board of Directors. No remuneration is paid. Directors are reimbursed for out of pocket expenses.
-‐ -‐
Key Management Personnel Chief Executive Officer and Senior Management team
14
577,005 575,050
FINANCIAL REPORT 2016-17 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017
NOTE 19: ACCUMULATED FUNDS & RESERVES Accumulated Funds Opening Balance Net Operating Surplus/(Deficit) for the Period Closing Balance
2017 $
2016 $
1,166,621 1,698,922 125,731 (532,301) 1,292,352 1,166,621
Cancer Council Foundation Reserve Opening Balance
2,950,337 2,950,337
Closing Balance
2,950,337 2,950,337
Total Accumulated Funds and Reserves
4,242,689 4,116,958
NOTE 20: RECONCILIATION OF CASH FLOWS Reconciliation of cash flow from operations with surplus (deficit) from operations: Net Surplus/(Deficit) for the Year
125,731
Non-‐Cash Flows in Surplus: Depreciation Loss on Sale of Fixed Assets
154,160 154,359 7,944 16,217
Changes in Assets and Liabilities: Decrease/(Increase) in Trade and Other Receivables Decrease/(Increase) in Other Assets Decrease/(Increase) in Inventory (Decrease)/Increase in Trade and Other Payables (Decrease)/Increase in Other Financial Liabilities (Decrease)/Increase in Other Liabilities (Decrease)/Increase in Provisions Cash Flows Provided by Operating Activities
37,569 (92,719) (152,047) (18,820) 7,434 (19,670) 536,656 285,808 26,145 29,905 (322,520) (183,830) 12,680 5,366 433,752 (355,777)
(532,393)
NOTE 21: AUDIT FEES Value of the Services Provided by WLF Accounting & Advisory Financial Statement Audit Services Other Services Total Remuneration of Auditors NOTE 22: SUBSEQUENT EVENTS The Cancer Council entered a sale contract on the premises at 180-‐184 Collins Street, Hobart during the 2016-‐17 financial year. The contract settled post 30 June 2017. The Cancer Council have entered into an unconditional purchase contract for a building in Sandy Bay that is due to settle on 29 September 2017.
15
9,000 8,700 920 4,950 9,920 13,650
FINANCIAL REPORT 2016-17
STATEMENT BY MEMBERS OF BOARD
16
FINANCIAL REPORT 2016-17
INDEPENDENT AUDITOR’S REPORT
17
FINANCIAL REPORT 2016-17
INDEPENDENT AUDITOR’S REPORT (cont.)
18
FINANCIAL REPORT 2016-17
BOARD OF DIRECTORS
19
180 – 184 Collins Street, Hobart, Tasmania 7000
www.cancertas.org.au
e infotas@cancertas.org.au
p 1300 65 65 85
t @CancerTas
ABN 27 685 250 740
f 03 6169 1955
vcancercounciltas