ACTING TOGETHER TO
FIGHT CANCER ANNUAL REPORT 2017
OUR MISSION & OBJECTIVE
OUR
MISSION To mobilise resources in order to provide curative, preventive, research and support services to cancer patients and families, high- risk groups and the general public.
OUR
OBJECTIVE To pool and utilise all efforts, expertise and finance from all sectors of the society to fight cancer and reduce related pain, morbidity and the suffering that cancer patients undergo.
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MAKNA | NATIONAL CANCER COUNCIL
MAKNA was founded by Dato’ Mohd Farid Ariffin in Kuala Lumpur, Malaysia in 1994. He left his Deputy Health Minister post to set up MAKNA, after realising through his own experience with his son’s struggles with leukaemia, that cancer patients from poor financial background would find it difficult to afford treatment. 24 years on, MAKNA is still going strong. This home-grown social enterprise that offers a comprehensive range of services to those affected by cancer continues to play an important part in helping cancer patients with treatment, financial support and post-treatment issues, regardless of background, race, creed, colour and station.
MAKNA is a member of the Union for International Cancer Control (UICC)
MAKNA is a not-for-profit social enterprise registered under the registrar of societies in 1994. Lembaga Hasil Dalam Negeri: Seksyen 44(6) Akta Cukai Pendapatan 1967. RUJ: LHDN.01/35/42/52/179-6.4232 Nombor Warta Kerajaan 2153 bertarikh 30 Mac 1995
CONTENT 04 05 06 08 10 11 12 13
Message from Founder & President Foreword by the General Manager Board of Trustees and Executive Committee Digital Mobile Mammogram Unit Bursary Programme (Financial Assistance) Home Visit
14 16 18 19 20 22 23
Cancer Research Donor Acquisition Pusat Kanser PPUKM – MAKNA Other Services Going Forward, Looking Ahead Coming Together for The Cause Financial Statements
Volunteers Education and Awareness
ANNUAL REPORT 2017
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MESSAGE FROM FOUNDER & PRESIDENT
All our work, success and growth, rest entirely on your support.
Dato’ Mohd Farid Ariffin A cancer diagnosis is unfathomable. It stops people in their tracks, and can feel like the whole world is crashing down or like being swept away into the unknown, not only for the patient but for family and friends. It never feels real until it happens. To not know what to do or where to go in such a state is heartbreaking, but to know and not be able to afford treatment is a hundred times worse. This is what MAKNA is here for – to catch patients when they fall, reassure them that their lives are not over but that a new chapter has begun, and that MAKNA will support them throughout their battle with cancer.
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MAKNA | NATIONAL CANCER COUNCIL
In 2017, we supported 3,605 adults and 288 children in the form of bursary assistance, to access treatment and because patients are often unable to continue working and cannot generate income for their families during their illness. Our Home Visit Team met with 5,593 patients in their homes in 14 states across the country, to check on their progress and to see if their MAKNA support needed revision. Additionally, our mobile mammogram trailer performed 6,378 mammogram screenings over the year, as part of MAKNA’s preemptive strategy
of awareness and early detection. I encourage you to learn more about our other activities and successes in 2017 in the following pages. All our work, success and growth, rest entirely on your support. We thank you with all our heart for being a life support to a cancer patient and hope that you will continue to support MAKNA in any way possible.
FOREWORD BY THE GENERAL MANAGER
Our dreams for the future are only possible with your assistance, generosity and love.
Farahida Mohd Farid As an organization of Cancer fighters, there is no other option for us but to strive for greatness. To be great, in our terms, means to be efficient, transparent and productive. We do this while understanding that thousands of people in Malaysia and Vietnam rely on our work, to make their lives somehow better. We are honored to take this responsibility as our own, and we aim to fulfill it in the best way possible. As part of that aim of transparency, we’ve compiled this Annual Report with vital information about MAKNA. In it you will find complete summaries on our organization’s income, fundraising expenditure, and social investments during 2017. This compilation seeks to illustrate how we contribute to society, and how we work while creating socially impactful initiatives. Beyond sharing this information as a technical report, we also do it as an invitation to celebrate with us on our successes, and to humbly ask for your help to improve in whichever challenges we may have faced throughout the year. Some of those successes account on events such as the opening of our third Halfway House. A space that seeks to offer a temporary home for underprivileged
cancer patients, and their families, while they take treatment away from their original places of residence. The inauguration of a new MAKNA Halfway House is significant because it symbolizes our commitment to rural communities – a group of beneficiaries that is often one of the most vulnerable to the financial constraints that Cancer brings within it.
In 2018 is our wish to open two new Halfway Houses for our brothers and sisters with Cancer in East Malaysia. As well as providing them with two mobile mammogram units, that will hopefully offer free mammogram screenings to thousands of women every day - bringing early detection to Sabah and Sarawak, where there is still much to be done in this regard.
In 2017 we also took the first step in bringing the Malaysian Social Sector together, by hosting the first NPO Forum and Fair of its kind. The NPO Forum and Fair 2017: “The Uncommon Good” gathered 75 organizations from all causes and all sizes. During the two-day event, the Non Profits had the opportunity of showcasing their services, and taking part in the Forum sessions - where they were invited to share and contribute to the debates, in a much needed conversation.
We also hope that 2018 allows us to continue growing internationally, so we can bring a globalized vision of Cancer Control to our country. A vision that we will translate into better, and more innovative services for our beneficiaries.
During 2017, we also put great effort in building our relationship with international organizations such as The Economist. The British based publication invited MAKNA to their War on Cancer Forum, where we took part as panelists and shared space with an international community of Cancer fighters.
Please, take the time to look into this Annual Report and let us share with you, what 2017 was for us. The projects captured in this document, and our dreams for the future are only possible with your assistance, generosity, and love. So, to all our supporters: Thank You. It’s been an honor to serve with you for another year. ANNUAL REPORT 2017
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BOARD OF TRUSTEES
YAM Tengku Puteri Seri Lela Wangsa Pahang Tengku Tan Sri Hajjah Meriam Binti Sultan Haji Ahmad Shah DK., SIMP., PSM., JP.
YABhg Toh Puan Sagiyah Salikin (Wife of Tun Ahmad Sarji Abdul Hamid)
YBhg Professor Tan Sri Dato’ Dzulkifli Abdul Razak Chairperson, Board of Director (USIM) Universiti Sains Islam Malaysia
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MAKNA | NATIONAL CANCER COUNCIL
EXECUTIVE COMMITTEE Vice President Emeritus Professor Dr Cheong Soon Keng
Assistant Honorary Secretary Professor Dato’ Dr Hj Jafri Malin Datuk Hj Abdullah
Dean, Faculty of Medicine & Health Sciences, UTAR & Emeritus Professor, Pusat Perubatan UKM
Director, Center for Neuroscience Services and Research, Universiti Sains Malaysia Kampus Kesihatan & Professor of Neurosciences and Senior Consultant Neurosurgeon Hospital Universiti Sains Malaysia, Kubang Kerian, Kelantan
Honorary Treasurer Zainol Talib
Assistant Honorary Treasurer Douglas Tan Hock Kee
Vice Chairman Takaful National Board, NAMLIFA
Member
Member
Professor Datin Paduka Dato’ Dr Aini Ideris Vice-Chancellor, Universiti Putra Malaysia
Mimi Hafizan Abdul Rahman Consultant
Group Managing Director, Asian Business Solutions Group of Companies
Member
Member
Dr Imran Abdul Khalid Professor Abdul Aziz Baba Hon. Lecturer Vice-Chancellor, Penang Medical College & Professor of Medicine Pengerusi Badan Sokongan International Medical Pesakit Kanser University Malaysia Seberang Perai
Member Rosleem Haji Nordin @ Bohari Senior Accountant, Accountant General’s Department of Malaysia
ANNUAL REPORT 2017
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DIGITAL MOBILE MAMMOGRAM UNIT MAKNA believes that early detection and prevention are important in reducing cancer morbidity and mortality. With this in mind, MAKNA introduced its Digital Mobile Mammogram Programme in 2011 to deliver breast cancer screening service to locations all over Malaysia, from districts to cities, from rural to urban poor dwellings, to those who are unable to afford or have access to such facility. By doing so, MAKNA aims to enable the detection of breast cancer at the early stages and help reduce breast cancer death rates.
Year 2017 Total Mammogram Screenings
Total Cases
Rural
Urban Poor
1,311
4,658
Corporate
409
6,378
Screening by Age:
14.30%
60-69
44.04% 40-49
41.66% 50-59
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MAKNA | NATIONAL CANCER COUNCIL
Year 2017 Detected Abnormalities
Normal
6,285
Abnormal
93
Confirmed Case
7
Total Clinical Breast Examinations: Male
486
Female
1,557
Total Cases
2,043
97.1%
2.9%
Normal (1,984)
Abnormal (60)
ANNUAL REPORT 2017
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BURSARY PROGRAMME (FINANCIAL ASSISTANCE) Under the Bursary programme, cancer patients in the lower income groups who are undergoing treatment at government hospitals can apply to MAKNA for financial aid via the hospitals’ medical social works department. Financial aid is provided in purchasing necessities that is recommended by their doctor that includes nonformulary drugs, Milk supplement, surgical equipment, prostheses, colostomy bags and also a monthly allowance for those who need it.
Year 2017 MAKNA Assisted Bursary Flow
Adult cases
3,605
Paediatric cases
288
1
Cancer patient has to be undergoing or seeking treatment at any government hospitals.
2
The Medical Officer will refer financially-challenged patients to the Medical Social Work Department for assistance.
3
Medical Social Worker will interview the patients about their Socioeconomic background supported by relevant document from the patient.
4
The officer will then refer eligible cancer patients’ application to MAKNA through online MAKNA Bursary Online System-(MBOS).
5
Received application via MBOS will be verified by MAKNA Officer.
6
Application will be processed within 14 working days upon management’s approval.
7
The status of the approval then can be accessed via MBOS by Medical Social Worker for further action.
Total Cases
3,893 Amount Disbursed
RM6,170,143 Types of Assistance
Financial Assistance
10
Appliances
MAKNA | NATIONAL CANCER COUNCIL
Prostheses
Non-Formulary Drugs
Surgical Equipment
HOME VISIT All patients assisted under the Bursary programme are visited at home by the MAKNA Home Visit Team who ensures that donations are channelled to the rightful recipients. In addition, they are able to establish rapport with patients and better understand their conditions as well as socio-economic background. The team plays an essential role as well in providing emotional support and encouragement to patients to continue with their treatment or check-ups.
Confirmed >90% patients received aid from MAKNA Year 2017 Total Visits Home Visit Flow Pre Visit
Hospitals
Adult patients
5,056 Total Cases
Bursary Dept
Paediatric patients
537
5,593
Post Visit Home Visit Team
(2017 cases plus backlogged 2015-2016 cases)
= 159% of 3,510 cases
Approved Bursary Applications
Hospitals
Bursary Dept
Latest Status and Recommendations Reports
Home Visit Role
To assess and verify patient details, prognosis, treatment and socio-economy status to better administer disbursement of funds.
Ensure patient receives the approved aid and continuing with their treatment.
Help patients and family gain better knowledge on MAKNA services.
ANNUAL REPORT 2017
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VOLUNTEERS Volunteers are a vital component of MAKNA. They are invaluable in helping MAKNA to cast a wider net and extend its support to a larger group of cancer patients as they undergo treatment and to communities in all parts of the country. Some of the volunteers are cancer survivors themselves and this group helps other cancer patients by sharing their own experience struggling with and surviving cancer.
Year 2017 Total Volunteers
Active
Very Active
55
250
Leaders
Potential Leaders
29
94
Total Activities Conducted
413
Main Functions
Volunteer Trainings 12
Fundraising & Cancer Awareness
MAKNA | NATIONAL CANCER COUNCIL
Home & Hospital Visits
Volunteer Support Groups
Community Outreach Programme
EDUCATION AND AWARENESS Another key objective of MAKNA is to help reduce cancer incidences in Malaysia through continuous education to drive awareness and encourage positive health behaviour changes. The MAKNA Exhibition team organises talks and exhibitions on a yearly basis in addition to regular demonstrations, road shows, breast self-examination, etc., in local communities, corporate sector, government agencies, institutions of higher learning and schools.
Year 2017 Total Exhibitions
Government Agencies
21
Universities
0
Schools
69
Corporate
Communities
Total
39
17
146 ANNUAL REPORT 2017
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CANCER RESEARCH MAKNA has embarked on cancer research actively over the past 15 years. As of 2017, RM11.8 million has been allocated to fund research through 20 collaborative efforts with various institutions of higher learning and research institutes. The MAKNA Cancer Research Award, initiated in collaboration with the Academy of Sciences Malaysia, aims to promote cancer research among young scientists. Through such funding and grants, MAKNA aims to advance the prevention, detection and treatment of cancer, and ultimately drive down cancer mortality.
Year 2017 Collaborations
PhDs
MSCs
21
68
BSC
2
Research Projects
80
Project Completed
54
Project Categories
Pre-clinical Provides results applicable to prevention, diagnosis or treatment of cancer, and rehabilitation of cancer patients, but not ready for use in human.
14
Basic
Epidemiology
Health Policy & Outcomes
Public Health
Seeks to answer fundamental questions about development and nature of cancer.
Investigates circumstances under which cancer occurs in populations.
Investigates creation and effects of laws and public policies affecting people making health decisions related to cancer control.
Public health and nutrition studies.
MAKNA | NATIONAL CANCER COUNCIL
Malaysian Stem Cell Registry
1
30,467
Registered Stem Cell Donors
in collaboration with Ministry of Health Malaysia and the Institute for Medical Research
The only registry with high donors of Malay ethnicity
No. of Search, Match and Transplants Search Match
35
Year
Year 2017 Total Search
140
176
111
96
95
176
163
158
Transplants
90
32
Match
33
46
31
40
39
1
2
0
3
3
1
4
2010
2011
2012
2013
2014
2015
2016
26 0
2017
26 Transplants
0
ANNUAL REPORT 2017
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DONOR ACQUISITION MAKNA has stayed true to its mission – to help cancer patients – by funds received from donations. At the same time, to ensure that there is no interruption to the aid channelled to patients, MAKNA puts continuous effort into fund-raising.
Year 2017 My Pledge Against Cancer Direct Debit Donor Programme This fund-raising project has been the main income generator for MAKNA since 2002. Each donor commits to MAKNA a monthly deduction of RM38 to RM58. The donation is made via credit cards or bank accounts.
Monthly Commitment
RM38 − RM58
New Donors
12,179
RM635,967
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MAKNA | NATIONAL CANCER COUNCIL
Auto Debit
MAKNA
Anniversary Donors
83,366
RM33 Million
Amount Collected
RM32.8 Million
Year 2017 Sen Saves Lives The initiaves under SSL include Kempen Kutip Syiling and donation boxes. Kempen Kutip Syiling is a programme carried out with the Ministry of Education and Bank Negara Malaysia where primary and secondary school students are encouraged to collect coins and hand them over to their school authorities who will then bank them into a MAKNA bank account. Donation boxes are available in small, medium and big sizes, and are provided to parties who are organising donation drives or willing to host the boxes.
Amount Collected
RM279,439
Year 2017 e-Charity Donors are able to make their donations via credit cards or online banking payment at www.makna.org.my or to crowdfund via peoplegiving.org, simplygiving.com, and globalgiving.org.
MAKNA MAKNA Bank Account for E-Charity: • • • • • • •
Maybank 5140 7561 7955 RHB Bank 26 412400012200 CIMB Bank 8001183431 AMBank 023 201 101216 0 UOB Bank 1733004377 Public Bank 3 992405321 Hong Leong Bank Berhad 00101001166
• • • • • •
Bank Rakyat 2206 2127 5301 Affin Bank Berhad 105020002598 billplz SimplyGiving PeopleGiving GlobalGiving
Amount Collected
RM332,623
ANNUAL REPORT 2017
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PUSAT KANSER PPUKM – MAKNA The Cancer Centre, established in 1999 in collaboration with PPUKM (Pusat Perubatan Universiti Kebangsaan Malaysia), provides comprehensive and state-of-theart facilities to cancer patients of all financial background. The Cancer Centre comprises an oncology ward, a radiotherapy services centre and a stem cell transplant ward.
Year 2017 Total Patients
Oncology Ward
Stem Cell Transplant Ward
Radiotherapy
Bone Marrow Transplant
Chemotherapy
Palliative
Brachytherapy
Symptomatic
790
67
156
14
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MAKNA | NATIONAL CANCER COUNCIL
120
12
47
506
OTHER SERVICES CANCER HELPLINE
1 800 88 62562
MAKNA provides this service with the aim of supporting not just cancer patients, but also their families, caregivers and the general public. Personnel trained in oncology attend to the helpline as well as incoming email seeking information, guidance and emotional support.
393
190
19 CANCER SUPPORT GROUP The support group is headed by trained staff and volunteers. The purpose of the support group is to counsel cancer patients, their family members or caregivers to help them better cope with the emotional demands of battling cancer.
4
In 2017
Sharing therapy sessions conductied with the group
384
Advice and support given through whatsapp
57
visits to patients at home and hospitals
296
email and facebook queries attended
YOUNG CANCER SURVIVOR SCHOLARSHIP The provision of this scholarship is to help young cancer survivors further their tertiary studies. RM50,000 per annum is allocated to offer cancer survivors aged 25 or younger with financial assistance to pursue their studies. For 2017, MAKNA did not receive any eligible application for the scholarship.
HALFWAY HOUSE Provides short-term accommodation to patients and caregivers who are unable or unfit to travel frequently from home to hospital for the duration of their treatment. 3 Houses launched: • Johor Bahru (17 Patients) • Kepala Batas, Pulau Pinang (20 patients) • Kubang Kerian, Kelantan (31 patients)
ANNUAL REPORT 2017
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GOING FORWARD, LOOKING AHEAD MAKNA ONLINE BURSARY SYSTEM (MBOS) A system developed wholly by MAKNA that enables bursary application to be sent electronically by medical social work officers who are based in goverment hospitals all over the country. With this real-time system, MAKNA aims to drastically to cut down on processing time, and to increase the rate at which aid is disbursed to cancer patients. A total of 67 hospitals using MBOS to ease the process of application.
MAKNA HEADQUARTERS, KUALA LUMPUR BG-06 & BM-06, Megan Ambassy 225, Jalan Ampang, 50450 Kuala Lumpur. Tel : +603 2162 9178 Fax : +603 2162 9203 In 2017, MAKNA expanded the office to the next block with the total of 45 additional workstations with new furniture and more meeting rooms and space.
MAKNA MOBILE HOME CARE VISIT A team that has been on ground travelling to cancer patients’ home to help them in the fight against cancer. Upon visiting they will evaluate patient’s physical and psychological condition at the same time to ensure the support they are receiving helps to improve the quality of the cancer patient’s life. This service covers Peninsular Malaysia, Sabah and Sarawak and the patients the team visits are those referred by MAKNA Bursary programme. 20
MAKNA | NATIONAL CANCER COUNCIL
MAKNA IN HANOI, VIETNAM
Address: Level 12, 34 Dai Co Viet Street, Hai Ba Trung District, Hanoi, Vietnam. Tel/Fax: 0084 2439780395 Email: hai@makna.org.my
Community Outreach Projects: • World Cancer Day • Support services & community engagement: Laughter Yoga & monthly sharing sessions at K3 hospital • Capacity training for health workers
Partners: Bright Future Fund, Hung Viet Oncology Hospital. Supporters & Volunteers: K3 hospital, Hanoi Medical University, Hanoi School of Public Health, Electric Power University, Centre for Research - Consulting and Support of Community Health (RCSCH), Cancer Survivor Groups.
TRAILER FABRICATION WORKS COMPLETED Mobile Cancer Screening Unit in Sabah
TRAILER FABRICATION WORKS COMPLETED Mobile Cancer Screening Unit in Sabah
COMING SOON Halfway House in Sabah
COMING SOON Halfway House in Sarawak
MAKNA IN SIBU, SARAWAK MAKNA operations in Sibu, Sarawak started since March 2017. The office is set to deliver services in East Malaysia to be more attuned to issues faced by poor cancer patients in Sabah & Sarawak. This expansion towards East Malaysia ensures the effectiveness, ability and commitment towards our mission all over the country not limited to Peninsular Malaysia. Address: No.14-B, Jalan Kampung Datu, 96000 Sibu, Sarawak. Tel : 084-314 234 Fax : 084–314 707 ANNUAL REPORT 2017
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COMING TOGETHER FOR THE CAUSE
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MAKNA | NATIONAL CANCER COUNCIL
MAJLIS KANSER NASIONAL Society No. 2009/94 (Wilayah Persekutuan) • Established under Societies Act, 1966
FINANCIAL STATEMENTS
For The Financial Year Ended 31 December 2017
24 25 27 28 29 30 31
Statement by Executive Committee Members Report on the Audit of the Financial Statements Statement of Income and Expenditure Statement of Assets, Liabilities and Fund Balances Statement of Changes in Accumulated Fund Cash Flow Statement Notes to the Financial Statements
ANNUAL REPORT 2017
23
24 STATEMENT BY EXECUTIVE COMMITTEE MEMBERS We, Dato’ Mohd Farid Ariffin and Zainol Bahari Talib, two of the Executive Committee members of Majlis Kanser Nasional, state that, in the opinion of the Executive Committee, the financial statements set out on pages 6 to 19 are drawn up so as to give a fair presentation of the financial position of the Society as at 31 December 2017 and of the financial performance and cash flows of the Society for the financial year ended on the date in accordance with the accounting policies set out in Note 2 to the financial statements.
Dato’ Mohd Farid Ariffin President
Kuala Lumpur
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MAKNA | NATIONAL CANCER COUNCIL
Zainol Bahari Talib Honorary Treasurer
25 REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Our opinion In our opinion, the financial statements of Majlis Kanser Nasional (the “Society”) give a true and fair view of the financial position of the Society as at 31 December 2017, and of its financial performance and its cash flows for the financial year then ended in accordance with the accounting policies set out in Note 2 to the financial statements. What we have audited We have audited the financial statements of the Society, which comprise the statement of assets, liabilities and fund balances as at 31 December 2017, and the statement of income and expenditure, statement of changes in accumulated fund and cash flow statement for the financial year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 27 to 39. Basis for opinion We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing. Our responsibilities under those standards are further described in the “Auditors’ responsibilities for the audit of the financial statements” section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence and other ethical responsibilities We are independent of the Society in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code. Responsibilities of the Executive Committee Members for the financial statements The Executive Committee Members (“the Committee”) of the Society is responsible for the preparation of the financial statements of the Society that give a true and fair view in accordance with the accounting policies set out in Note 2 to the financial statements. The Committee is also responsible for such internal control as the Committee determines is necessary to enable the preparation of financial statements of the Society that are free from material misstatement, whether due to fraud or error. In preparing the financial statements of the Society, the Committee is responsible for assessing the Society’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Committee either intends to liquidate the Society or to cease operations, or has no realistic alternative but to do so. Auditors’ responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements of the Society as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
ANNUAL REPORT 2017
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26 REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (Cont’d)
Auditors’ responsibilities for the audit of the financial statements (continued) As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: (a) Identify and assess the risks of material misstatement of the financial statements of the Society, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. (b) Obtain an understanding of internal control relevant to the audit 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 Society’s internal control. (c) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Committee. (d) Conclude on the appropriateness of the Committee’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Society’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements of the Society or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Society to cease to continue as a going concern. (e) Evaluate the overall presentation, structure and content of the financial statements of the Society, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with the Committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
OTHER MATTERS This report is made solely to the members of the Society and for no other purpose. We do not assume responsibility to any other person for the content of this report.
PRICEWATERHOUSECOOPERS PLT LLP0014401-LCA & AF 1146
Azizan Bin Zakaria 2930/05/18 (J)
Chartered Accountants Chartered Accountant
Kuala Lumpur 4 May 2018
26
MAKNA | NATIONAL CANCER COUNCIL
27 STATEMENT OF INCOME AND EXPENDITURE
For The Financial Year Ended 31 December 2017
Note INCOME
2017 RM
2016 RM
Receipts from projects 3 Donation received from individuals, societies and corporations Interest from deposits Dividend income Annual subscriptions Other income
36,194,016 609,934 3,142,331 335,435 3,230 4,100
33,099,156 654,839 3,029,508 266,880 930 25,933
40,289,046
37,077,246
Bursary Salaries and related costs Activities costs Administrative costs Depreciation of property, plant and equipment Consumables and grants (Write back of provision) /provision for impairment of investments
6,170,143 10,560,280 9,842,546 909,857 357,065 309,604 (491,370)
8,732,767 9,181,561 8,959,769 901,382 264,014 402,230 91,941
4
27,658,125
28,533,664
SURPLUS OF INCOME OVER EXPENDITURE BEFORE TAXATION
12,630,921
8,543,582
5
(707)
18,755
SURPLUS OF INCOME OVER EXPENDITURE AFTER TAXATION
12,630,214
8,562,337
LESS: EXPENDITURE
TAXATION
The notes on pages 31 to 39 form part of these financial statements.
ANNUAL REPORT 2017
27
28 STATEMENT OF ASSETS, LIABILITIES AND FUND BALANCES As At 31 December 2017
Note
2017 2016 RM RM
NON-CURRENT ASSET Property, plant and equipment
6
9,036,638
6,205,574
9,036,638
6,205,574
8,070,910 1,643,212 33,201 - 84,067,497 7,186,735
7,435,028 1,325,052 40,921 73,179,447 9,204,999
101,001,555
91,185,447
Trade and other payables 11
2,506,012
2,489,054
2,506,012
2,489,054
NET CURRENT ASSETS Financed by:
98,495,543
88,696,393
107,532,181
94,901,967
107,532,181
94,901,967
CURRENT ASSETS Investments 7 Receivables 8 Tax recoverable Amount due from a related party 9 Fixed deposits with licensed banks 10 Cash and bank balances 10 CURRENT LIABILITY
ACCUMULATED FUND Accumulated surplus of income over expenditure
The notes on pages 31 to 39 form part of these financial statements.
28
MAKNA | NATIONAL CANCER COUNCIL
29 STATEMENT OF CHANGES IN ACCUMULATED FUND
For The Financial Year Ended 31 December 2017
2017 Balance at 1 January 2017
TOTAL RM
94,901,967
Surplus of income over expenditure 12,630,214 Balance at 31 December 2017 107,532,181
2016 Balance at 1 January 2016
86,339,630
Surplus of income over expenditure 8,562,337 Balance at 31 December 2016 94,901,967
The notes on pages 31 to 39 form part of these financial statements.
ANNUAL REPORT 2017
29
30 CASH FLOW STATEMENT
For The Financial Year Ended 31 December 2017
CASH FLOWS FROM OPERATING ACTIVITIES Surplus after taxation
2017 2016 RM RM
12,630,214
8,562,337
357,065 4,894 (3,142,331) (335,435) 707 7,335 (491,370)
264,014 (3,029,508) (266,880) (18,755) (210) 91,941
9,031,079
5,602,939
(168,238) 16,958
(113,637) 148,776
8,879,799
5,638,078
3,004,605 (5,512) 12,525
3,007,128 87,413
11,891,417
8,732,619
Purchase of property, plant and equipment Dividend received Net cash flow used in investing activities
(3,193,023) 171,392
(3,401,328) 186,828
(3,021,631)
(3,214,500)
Net increase in cash and cash equivalents Cash and cash equivalents at beginning of the financial year Cash and cash equivalents at end of the financial year 10 Non-cash transaction:
8,869,786 82,384,446
5,518,119 76,866,327
91,254,232
82,384,446
Adjustment for: - Depreciation of property, plant and equipment - Property, plant and equipment written off - Interest income - Dividend income - Tax expense/(credit) - Provision for/(write back of provision for) impairment of receivables - (Write back of provision)/provision for impairment of investments Surplus before working capital changes Changes in working capital: - Receivables - Trade and other payables Cash generated from operating activities Interest received Tax paid Tax refund Net cash flow generated from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
During the financial year, dividend income of RM144,512 (2016: RM95,079) has been reinvested in investments of unit trusts and tax payment of RM5,512 (2016: RM6,700) has been deducted from the gross dividend income. The notes on pages 31 to 39 form part of these financial statements.
30
MAKNA | NATIONAL CANCER COUNCIL
31 NOTES TO THE FINANCIAL STATEMENTS
For The Financial Year Ended 31 December 2017
1. CONSTITUTION
Majlis Kanser Nasional (“MAKNA”) was registered on 10 November 1994 and officially launched on 30 March 1995 and was approved by the Department of Inland Revenue for the purposes of Section 44(6) of the Income Tax Act, 1967. The objectives of Majlis Kanser Nasional are to work towards the attainment of a better health care system for all Malaysians especially in terms of the prevention and control of cancer; to develop and formulate policies for cancer prevention and intervention; to strengthen and generate services and programmes on cancer and to strengthen support services for cancer patients and affected persons.
MAKNA has 179 (2016:198) employees at the end of the financial year.
The address of the principal place of activity is as follows:
BG 03A & 05, Ground Floor Megan Ambassy, 225, Jalan Ampang 50450, Kuala Lumpur.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Property, plant and equipment
Property, plant and equipment are stated at cost, with the amount of goods and services tax (“GST”) included, less accumulated depreciation and impairment losses.
Property, plant and equipment are depreciated on a straight line basis to write-off the cost of each asset over its expected useful life. The principal annual rates of depreciation used are as follows:
Building
Office renovation
20.0 – 33.3%
Office equipment
20.0%
Hospital equipment
20.0%
Exhibition equipment
20.0%
Computer equipment
20.0%
Furniture and fittings
20.0%
Mobile trailer
20.0%
Motor vehicle
20.0%
Property, plant and equipment received on donation are not capitalised.
At each balance sheet date, an assessment is made for any indication of impairment. If such indications exist, an analysis is performed to assess whether the carrying amount of the asset is fully recoverable. A write down is made if the carrying amount exceeds the recoverable amount. See accounting policy Note 2 (e) on impairment of assets.
2.0%
ANNUAL REPORT 2017
31
32 NOTES TO THE FINANCIAL STATEMENTS
For The Financial Year Ended 31 December 2017 (Cont’d)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(b) Cash and cash equivalents
Cash and cash equivalents consist of cash at bank and fixed deposits with licenced banks. Cash and bank balances comprise highly liquid investments which are readily convertible to known amounts of cash which are subject to an insignificant risk of change in value.
(c) Income and expenditure
Income is recognised when it is probable that the economic benefits associated with the transaction will flow to the organisation and the amount of income can be measured reliably.
Receipts from projects
Receipts from projects relate to donation raised from projects and are recognised on a receipt basis.
Donation received from individuals, societies and corporations
Donation received from individuals, societies and corporations are recognised on a receipt basis.
Interest from deposits with licensed banks
Interest from deposits with licensed banks is recognised on an accrual basis based on the principal outstanding and the rates applicable.
Dividend income
Dividend income is recognised when the right to receive payment is established.
Expenditure is recognised on an accrual basis.
32
(d) Investments
Investments are stated at lower of cost or market value on an aggregate portfolio basis. On disposal of an investment, the difference between the net disposal proceeds and its carrying amount is charged or credited to the statement of income and expenditure.
Investments are classified as current assets if maturity is due within one year or less. If not, they are presented as non-current assets.
MAKNA | NATIONAL CANCER COUNCIL
33 NOTES TO THE FINANCIAL STATEMENTS
For The Financial Year Ended 31 December 2017 (Cont’d)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) (e) Impairment of assets Property, plant and equipment are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment loss is recognised for the amount by which the carrying amount of the asset exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s net selling price and value in use. For the purpose of assessing impairment, assets are grouped at the lowest level for which there is separately identifiable cash flows. The impairment loss is charged to the statement of income and expenditure and any subsequent increase is recognised in the statement of income and expenditure.
(f) Receivables
(g) Payables
Receivables are measured initially at cost, with the amount of goods and services tax (“GST”) included, less provision for impairment. The provision is established when there is objective evidence that the Society will not be able to collect the amounts due according to the original terms of receivables. Cash flows are included in the cash flow statement on a gross basis.
Payables are obligations to pay for goods and services that have been acquired in the ordinary course of operation from suppliers. Payables are recognised at cost, with the amount of goods and services tax (“GST”) included. Cash flows are included in the cash flow statement on a gross basis.
(h) Income taxes
Current tax expense is determined according to the tax laws of each jurisdiction in which the Society operates and include all taxes based upon the taxable income.
ANNUAL REPORT 2017
33
34 NOTES TO THE FINANCIAL STATEMENTS
For The Financial Year Ended 31 December 2017 (Cont’d)
3. RECEIPTS FROM PROJECTS Donation received from projects: - Direct Debit Donor System - Zakat - AirAsia - E-Charity - Sens Saves Lives - Mobile Project - Direct Mail - Payroll Giving - Volunteers - Klimb for Kanser - Exhibition/Pameran - Lifeline Clothing - Merchandise & Home Visit - Movember - Tabung Travelling Beruang MAKNA - Others - Jom Botak - Ad-hoc - MAKNA Cancer Survivors Gathering
2017 2016 RM RM
33,899,109 586,061 350,320 333,445 279,439 218,040 180,143 94,000 73,393 71,737 41,990 41,547 18,853 4,330 1,231 378 - - -
31,107,990 493,479 265,080 186,131 138,792 41,556 96,445 104,718 59,660 59,735 95,062 23,740 38,502 102,062 62,650 193,350 23,990 6,214
36,194,016
33,099,156
4. EXPENDITURE Included in expenditure are: Salaries and related costs Audit remuneration Legal fees Provision for/(write back of provision for) impairment of receivables Property, plant and equipment written off
2017 2016 RM RM 10,560,280 20,000 21,188
9,181,561 20,000 4,469
7,335 4,894
(210) -
7,938,071 1,000,718 1,621,491
7,183,005 826,136 1,172,420
10,560,280
9,181,561
The employee information is as follows: Salaries and wages Contribution to Employees’ Provident Fund Other employee benefits
34
MAKNA | NATIONAL CANCER COUNCIL
35 NOTES TO THE FINANCIAL STATEMENTS
For The Financial Year Ended 31 December 2017 (Cont’d)
5. TAXATION
MAKNA has been given exemption on income, other than dividend income, under Paragraph 13 of Schedule 6 of the Income Tax Act, 1967 with effect from 1 January 2001. The taxation charge for the financial year is in respect of dividend income. There is no taxation charge on the income of the Society arising from its operations which is exempted from taxation under the mutuality concept.
Tax (expense)/credit: Current year (Over)/under provision of tax recoverable in prior year Taxation
2017 2016 RM RM (557) (150)
18,755
(707)
18,755
6. PROPERTY, PLANT AND EQUIPMENT 2017 Building Office renovation Office equipment Hospital equipment Exhibition equipment Computer equipment Furniture and fittings Mobile trailer Capital work in progress Motor vehicle
Cost at Cost at 1.1.2017 Additions Write-offs 31.12.2017 RM RM RM RM 2,830,801 3,211 98,164 81,298 - 718,484 333,220 2,499,500 2,857,600 896,288
1,745,048 229,409 4,219 108,437 88,810 32,764 221,136 - 763,200 -
- - - - - (430,655) - - - (4,894)
4,575,849 232,620 102,383 189,735 88,810 320,593 554,356 2,499,500 3,620,800 891,394
10,318,566
3,193,023
(435,549)
13,076,040
Accumulated Accumulated depreciation Charge for depreciation 1.1.2017 the financial year Write-offs 31.12.2017 RM RM RM RM
Building 396,312 85,700 - Office renovation 2,700 23,936 - Office equipment 37,245 16,781 - Hospital equipment 26,701 18,244 - Exhibition equipment - 13,321 - Computer equipment 608,431 30,859 (430,655) Furniture and fittings 162,738 47,955 - Mobile trailer 2,489,600 4,122 - Motor vehicle 389,265 116,147 - 4,112,992 357,065 (430,655) Net book value
482,012 26,636 54,026 44,945 13,321 208,635 210,693 2,493,722 505,412 4,039,402 9,036,638
ANNUAL REPORT 2017
35
36 NOTES TO THE FINANCIAL STATEMENTS
For The Financial Year Ended 31 December 2017 (Cont’d)
6. PROPERTY, PLANT AND EQUIPMENT (CONT’D) 2016 Building Office renovation Office equipment Hospital equipment Computer equipment Furniture and fittings Mobile trailer Capital work in progress Motor vehicle
Cost at Cost at 1.1.2016 Additions Write-offs 31.12.2016 RM RM RM RM 2,830,801 2,700 59,781 33,827 665,763 249,067 2,499,500 - 839,361
- 511 38,383 47,471 52,721 84,153 - 2,857,600 320,489
- - - - - - - - (263,562)
2,830,801 3,211 98,164 81,298 718,484 333,220 2,499,500 2,857,600 896,288
7,180,800
3,401,328
(263,562)
10,318,566
Accumulated Accumulated depreciation Charge for depreciation 1.1.2016 the financial year Write-offs 31.12.2016 RM RM RM RM
Building 339,696 56,616 - Office renovation 2,700 - - Office equipment 23,356 13,889 - Hospital equipment 19,531 7,170 - Computer equipment 565,085 43,346 - Furniture and fittings 97,206 65,532 - Mobile trailer 2,479,700 9,900 - Motor vehicle 585,266 67,561 (263,562) 4,112,540 264,014 (263,562) Net book value
36
396,312 2,700 37,245 26,701 608,431 162,738 2,489,600 389,265 4,112,992 6,205,574
On 18 January 2017, the Society entered into a Sale and Purchase Agreement with Prominent Dragon Sdn Bhd for the purchase of 2 office units space at BG06 and BM06, Megan Ambassy, 225, Jalan Ampang, 50450 Kuala Lumpur for a total consideration of RM1,650,000. The acquisition was completed in 2017.
MAKNA has 40,468.6 square metres of donated leasehold land in the Mukim Bentong, Pahang under a 99 year lease period from 2 February 1999 to 1 February 2098 which has not been capitalised in the financial statements. The land cannot be transferred, leased or mortgaged and can only be used for commercial building purposes.
MAKNA | NATIONAL CANCER COUNCIL
37 NOTES TO THE FINANCIAL STATEMENTS
For The Financial Year Ended 31 December 2017 (Cont’d)
7. INVESTMENTS Quoted unit trusts: Cost Provision for impairment Market value: Quoted unit trusts
2017 2016 RM RM
8,823,017 (752,107)
8,678,505 (1,243,477)
8,070,910
7,435,028
8,070,910
7,435,028
8. RECEIVABLES Debtors Less: Provision for impairment Prepayments Cash advances Deposits Accrued interest income Dividend receivable Movement in provision for impairment: At 1 January Provision for the financial year Write back of provision for the financial year Written off At 31 December
2017 2016 RM RM 359,556 (7,335)
180,042 (17,788)
352,221 195,305 26,794 44,787 986,382 37,723
162,254 52,642 31,860 205,936 848,656 23,704
1,643,212
1,325,052
17,788 7,335 - (17,788)
17,998 (210) -
7,335
17,788
ANNUAL REPORT 2017
37
38 NOTES TO THE FINANCIAL STATEMENTS
For The Financial Year Ended 31 December 2017 (Cont’d)
9. AMOUNT DUE FROM A RELATED PARTY Amount due from a related party Less: Provision for impairment
2017 2016 RM RM - -
760,472 (760,472)
-
-
The amount due from a related party is unsecured, interest free and has no fixed terms of repayment. The amount due from a related party was written off during the financial year.
10. CASH AND CASH EQUIVALENTS Fixed deposits with licensed banks Cash and bank balances
2017 2016 RM RM 84,067,497 7,186,735
73,179,447 9,204,999
91,254,232
82,384,446
The weighted average interest rate per annum of fixed deposits with licensed banks effective as at the financial year end is 4.10% (2016: 3.97%) per annum. Fixed deposits have an average maturity period of 3 to 15 months (2016: 3 to 12 months). Bank balances are deposits held at call with banks.
11. TRADE AND OTHER PAYABLES Trade payables Other payables and accruals
38
MAKNA | NATIONAL CANCER COUNCIL
2017 2016 RM RM 1,584,143 921,869
1,211,941 1,277,113
2,506,012
2,489,054
39 NOTES TO THE FINANCIAL STATEMENTS
For The Financial Year Ended 31 December 2017 (Cont’d)
12. FINANCIAL ASSISTANCE COMMITMENT 2017 2016 RM RM Financial assistance commitment
951,050
1,269,950
As at 31 December 2017, the Society is committed to provide financial assistance to patients. The number of months committed is within the range of 6 to 12 months (2016: 6 to 12 months), for an amount of RM100 to RM500 per month (2016: RM100 to RM500 per month).
13. CAPITAL COMMITMENT Semi trailer Mamography machine
2017 2016 RM RM 254,400 1,484,000
1,017,600 1,484,000
1,738,400
2,501,600
On 1 March 2016, the Society committed under an agreement entered with Eemed International Sdn Bhd (“the Contractor”) for the commissioning of the two mobile screening units in 2 semi trailers. The balance due on this agreement as at 31 December 2017 is RM254,400 (2016: RM1,017,600). On 1 March 2016, the Society also engaged the Contractor to obtain on its behalf, from GE Healthcare Sdn Bhd 2 units of GE Senographe CARE Mamography machines. The balance due on this agreement as at 31 December 2017 is RM1,484,000 (2016: RM1,484,000). The construction of the machines has not been completed as at 31 December 2017.
ANNUAL REPORT 2017
39
MAKNA (Majlis Kanser Nasional) or National Cancer Council BG 03A & 05, Ground Floor, Megan Ambassy, No 225, Jalan Ampang 50450 Kuala Lumpur, Malaysia
Telephone : +603-2162 9178 Fax : +603-2162 9203 Email : makna@makna.org.my Website : www.makna.org.my