Annual Report 2010/11
Contents A message from the President
02
A message from the Chief Executive
03
Staffing and Board of Directors
04
An overview of activities in 2010/2011
06
A Robust Branch Network throughout NSW
09
Promoting Research
10
Ensuring sustainability through good governance
10
A strong membership base across NSW
11
Growing our brand and achieving regular and sustained income
11
Developing Strategic Partnerships
13
Directors’ Report
14
Financials 18 Directors’ Declaration
33
Report on the financial report
34
Declaration by Chief Executive Officer in respect of fundraising appeals
37
A message from the President This has been a signiďŹ cant year for Arthritis NSW. It has been a year in which our organisation has needed to rise to meet many challenges. Some difficult decisions have had to be made to ensure our ongoing viability, so we can continue, over the longer term, to improve the situation for people who have arthritis. In previous years, we have been the recipient of generous bequests, which have really kept us going. This year bequest income has reduced and forced us to make some decisions that have been necessary but not desirable. This has included a review of staff, a cutback in resources and a one year break for Camp Footloose (returning bigger and better in 2012!). As President I can assure you that decisions we have made this year have been ALL about keeping Arthritis NSW around for a long time to come. Whist there have been challenges we have also made good progress in many areas. We have contributed to the development of a new model of care for juvenile arthritis in the health system (a combined effort between Arthritis NSW & the Agency for Clinical Innovation). We have completed a randomised control trial with the University of NSW for our Moving On program. We also have rolled out three new face-to-face self-management programs (Osteoarthritis of the Knee, Rheumatoid Arthritis program and Osteoporosis program). Additionally we have launched an update of our Challenging Arthritis online self-management program. We have several new branches and a fantastic new w website. Lots of things are happening that are designed to improve wellbeing for people of all ages with arthritis.
This progress is exciting and a credit to all involved. I would like to make special mention to our staff and CEO, for their hard work and dedication. Working for a charity takes a special commitment and as members we should be proud of the good work our team does. A special mention should also be made to our Board for their hard work this year. Most people don’t see or realise the amount of unpaid work our Board undertakes on behalf of the organisation. I have been well placed during the years, as President I have been amazed at the skills we have within our organisation, at professional and voluntary levels. On another note I would like to announce that I will shortly step down as President. I have led Arthritis NSW for a decade and have had the good fortune to preside over many changes and advances in that period of time. It has been a privilege and an honour to be a part of Arthritis NSW and I hope I have made a difference to the lives of people who have arthritis in some small way. David Riches
President
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A message from the Chief Executive I would like to support comments made by our President in his message, regarding the challenges over the last 12 months for our organisation. The last year has involved changes to our service delivery model, to help us build greater sustainability in our organisation. While the decisions were hard to make, they were done in consideration of our overall needs. In reviewing the last 12 months, I thought I would highlight the complexity of Arthritis NSW. Whilst we are a charity and a not-for-proďŹ t organisation, we have to run our operations in a business-like manner in order to sustain our services over the long-term. We have a complex set of relationships and partners, all of whom contribute to our work and our proďŹ le. Internal relationships include members, staff, volunteers, Board Directors, Board Subcommittee members and our 44 branches (comprising 132 main office bearers). Externally, we work with other state Arthritis offices and the national Arthritis Australia office, as well as the NSW Health Department, the NSW Agency for Clinical Innovation, the Hargraves Institute, various medical specialists, allied health staff, hospital staff across the state, consumer organisations, philanthropic organisations, universities, sponsors, community groups and the general public.
I am pleased to say that our partnership with the NSW Agency for Clinical Innovation has lead to development of new models of care in the health system for osteoporosis and juvenile idiopathic arthritis. A model of care for osteoarthritis is also currently in development. Thank you to all our partners who have helped us work towards improved quality of life for people with musculoskeletal diseases. Karen Filocamo
Chief Executive
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Staffing and Board of Directors ARTHRITIS NSW STAFF This year we welcomed our new Marketing and Fundraising Manager, Rob Novotny, our new Business Manager, Therese Carew and Executive Assistant, Brooke Jay. All these people came to us with valuable knowledge and experience, injecting new life into the organisation. Nena Doyle, previously the Community Liaison Officer for the Blue Mountains, also changed positions becoming our Branches and Community Liaison Officer. We bid farewell to the following staff; Dianne Kingswell, Liz McPhee, Jacqui Louth, Nadine Garland Caroline Stern and Tina McKeown. We thank them for their contribution to the organisation.
Our staff currently includes: Karen Filocamo Chief Executive Bachelor of Arts (Communication), Masters Health Administration Dianne Spragg Manager, Health Promotion & Self-Development Bachelor Applied Science (Physiotherapy), Masters of Public Health Rob Novotny Marketing and Fundraising Manager Bachelor of Business (Marketing), ADMA DM Certificate Therese Carew Finance Manager Assoc. Dip. Data Comms. Certificate of Book keeping
Eloise Buggy Self-Management Program Development Officer Bachelor of Science, Masters of Public Health Carol Barnes Health Promotion Officer & Moving On Advisor Registered Nurse, Bachelor of Arts, Master of Arts Melissa Denham Membership Officer & Warm Water Exercise Coordinator Clarissa Jones Finance Assistant and Kidsflix Coordinator Ingrid Player Receptionist and Information Officer Brooke Jay Executive Assistant Nena Doyle Branches and Community Liaison Officer
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Board of Directors
Volunteers
We are fortunate to have the support of a diverse range of dedicated people who fulfill the role of Board Directors in our organisation.
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:
These people are: David Riches, President Dennis Messner, Hon. Treasurer Evan Manolios, Company Secretary Diana Aspinall Prof Nick Manolios A/Prof Ben Marosszeky Greg Monaghan Cosi Pupo Neil Wildman Judith Cantor Once again, this year the Board had two successful planning days, 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
Beryl Lott Colleen Wellsmore Dianne Morris Doris Carrall Elmo Meadley Toni Markovina Kuan Chen 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.
Jo Mitchell Dr Tanya Covic Education Committee Verona Du Toit Bill Brennan Dr Ana Ananda Nadine Morkos Kim Hamrosi We appreciate all of these people giving their time so willingly to support our organisation.
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An overview of activities in 2010/2011 THIS YEAR’S ANNUAL REPORT FOCUSES ON EACH OF THE KEY AREAS IN OUR STRATEGIC PLAN. Arthritis NSW incorporating Osteoporosis NSW, provides up-to-date information and education to the community and health professionals about arthritis and other musculoskeletal conditions.
Seminars
Webinars
During 2010/2011 there were seven community seminars held. An effort is always made to balance seminars between city and regional areas, and as a result community seminars were held at Batemans Bay, Bondi Junction, Gosford, Maitland, Mudgee, Petersham and Taree. The seminars at Gosford and Petersham were held on World Osteoporosis Day 2010 and focused on aspects of osteoporosis management. All other seminars focused on arthritis, including the Batemans Bay and Maitland events that were held as part of Arthritis Awareness Week. Attendance at seminars ranged from 18 to 70 people. Total attendance for the seven seminars was 318, with an average attendance of 45.
Friday 1 April 2011 saw Arthritis NSW’s first webinar. The webinar was held for health professionals as part of Arthritis Awareness Week. It was presented by rheumatologist, Dr David Hunter, on the latest advances in osteoarthritis research. Forty-eight health professionals from around NSW and further afield participated in the event. In the future the webinar format will be utilised further to help reach a broader audience, particularly those of working age and in rural or remote areas.
In addition to the community events, a health professional seminar was held on World Osteoporosis Day at Gosford, and was attended by 18 nursing and allied health professionals. A huge thank you is extended to all rheumatologists, orthopaedic surgeons and allied health professionals that made themselves available to present at these events. These specialists and health professionals donate their time to these events and without their support, they would not be possible.
Community Education Sessions Education sessions remain an integral part of the health promotion team’s work. Over the last year a new education session on complementary therapies has been developed in response to demand and the fact that many people, with arthritis, use complementary medicines or treatments. During 2010/2011 the team conducted 80 community education sessions to a total of 1,607 participants. Community education sessions are presented to a number of different types of groups, these are summarised in the following table over the page;
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Group
Number of sessions
Community groups
39
Multicultural groups
14
Branches
13
Falls preventions –‘Stepping On’ program
6
Aged care facilities (residents)
3
Workplace
2
DVA peer support
2
Aged care facility (staff )
1
Total
80
Arthritis Awareness Week
Telephone Information Service
Arthritis Awareness Week 2011 was celebrated in the week beginning Sunday 27 March. During this week a number of activities were conducted including ‘Splash for Arthritis’, the launch of the revised Challenging Arthritis self-management program, two community education seminars, a health professionals’ webinar and a children’s and young adult’s picnic. A special thank you goes to the Ku-ring-gai Lions Club who provided the barbeque at the picnic.
Our telephone information service continues to operate to assist people with information regarding the management of their arthritis and/or osteoporosis. Most frequently, callers are seeking information on medicines, pain management, exercise, diet and complementary therapies among a variety of other topics. In 2010/2011 the service completed 1,613 calls.
Self-management Programs The range of self-management programs available has grown over the last year with the introduction of a new osteoporosis self-management program and the launch of the newly revised and enhanced Challenging Arthritis program. There are now a total of five programs available to the public which include the two new programs, along with the Osteoarthritis of the Knee (OAK) program, Rheumatoid Arthritis Program (RA-P) and the Moving On program. The first osteoporosis program was run successfully on the Central Coast in March 2011 and was attended by 10 participants. Twenty-five participants completed the OAK program during the year and 19 participants completed RA-P.
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The Moving On program has been evaluated by the University of NSW through a randomised control trial and the findings have been very positive. In addition a qualitative study was undertaken by the University of Sydney, as a result of a project in conjunction with the Blue Mountains Division of General Practice. The program is now being revised in response to the program evaluation recommendations and will be made available to the community in early 2012.
Camp Footloose Camp Footloose is an annual camp for children aged 8–18 with JIA. The 2010 camp was held at the Milson Island Sport and Recreation Camp on the Hawkesbury River. The camp was supported by funding from Arthritis Australia. The 2010 camp was also supported by donations from the All British Car Club, Sydney Water and a grant from the ANZ Foundation. As always, Arthritis NSW branches also made generous contributions to the camp. All branches and supporters involved in making contributions to the camp are gratefully acknowledged.
Camp Twinkletoes Camp Twinkletoes is an annual camp for children under eight years of age with JIA, their families and carers. The 2011 camp was held from 6–8 May at The Tops Convention Centre, Stanwell Tops, and was attended by seven families. Sincere appreciation is extended to Arthritis NSW branches whose donations again, supported the camp. This year’s camp was also supported by a grant from the St George Foundation.
Other Education Team activities Other health promotion team activities conducted during the year included participation in the following events; QANTAS staff expo Department of Veterans Affairs expo University of NSW medical students expo CPSA volunteer community speaker training Flintwood Disability Services Women’s Health information evening NSW Health, Health Professional’s Falls Prevention Network Forum Agency for Clinical Innovation Osteoporosis Model of Care launch. Annual Report 2010/11 | 8
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A ROBUST BRANCH NETWORK THROUGHOUT NSW Our branches and support groups remain our most valuable asset. This has been a difficult year for many branches because after serving for long periods of time (sometimes 25 years or more), some of our office bearers needed to step down. This was sometimes due to illness, ageing or increasing frailty. Branches are ďŹ nding it hard to replace these wonderful people because sadly although a branch may have a robust membership, people are often reluctant to step up to an office bearer position. We are extremely grateful for all the support office bearers have given us over long periods of time. This year saw the closure of our Mudgee Support Group and Forster/Tuncurry. We want to thank Dorothy Munns from Mudgee and Margaret Sims from Foster/Tuncurry for all their dedicated work with these groups.
While some branches closed, others began, with new groups starting in Macarthur, Newcastle and Batemans Bay. We give a warm welcome to the members of these groups. In 2010 our Life Membership Awards were given to: Dorothy Moss (Lower Clarence) Esther Evans (Albury) Phyllis Spain (Wollongong) Regional meetings were held this year in Orange, Grafton, Bowral, Ryde, Gosford, Taree, Maitland and Wagga Wagga. These meetings are a valuable opportunity to discuss branch issues and inform members about state and national activities. Focus groups were conducted at all regional meetings this year to identify members’ views about the objectives of a branch or support group. These focus group discussions also explored which membership activities are most valued by our members.
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PROMOTING RESEARCH Arthritis NSW understands our members expect us to support research studies into causes and treatment for arthritis. While we hope that one day a cure will be found, we recognise it is equally important to help people of all ages to live well each day with arthritis and achieve their best possible quality of life. This year we were involved in the following research studies: The Moving On program, a chronic disease self-management program. This year the University of NSW completed a randomised control trial of the program. The study was supported by Northern Sydney/Central Coast Area Health Service and Sydney West Area Health Service, as well as GP Network Northside, Wentwest Division of General Practice, Hawkesbury Hills Division of General Practice and Blue Mountains Division of General Practice. The study findings have been positive and we will be implementing the program widely in the coming year.
The Motherhood Choices Project. This project is a University of Western Sydney project, addressing issues of pregnancy and childbirth for women with rheumatoid arthritis. Westmead Hospital’s Rheumatology Unit, where we continue to support a Senior Lecturer position to maintain and advance the unit’s research and teaching activities. Last year’s Annual General Meeting included a lengthy presentation from four research projects supported by our organisation over the last three years.
ENSURING SUSTAINABILITY THROUGH GOOD GOVERNANCE Finance Report
Mr Barry Bristow
As mentioned in the President’s Report, our income for this year has been substantially affected by declining bequests to our organisation. Bequests received for the year amounted to $296,496 compared to $650,494 for 2009/2010.
Mrs Dorothy Carthew
The operations of Arthritis NSW for the year 2010/2011 resulted in a deficit of $558,642 compared to a loss of $144,983 for 2009/2010.
Ms Kathleen McNulty
We recognise and greatly appreciate the bequests we received this year through the following estates:
Mr Daniel Murphy
Ms Stephanie Blatchford Mrs CM Dalziel Mr Michael John Roth Mrs Marjorie Lawn Mr George Thomas Richards Ms Henry Webb We recognise the contribution of the finance, research and education Board Subcommittees to the governance of our organisation.
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A STRONG MEMBERSHIP BASE ACROSS NSW Our membership total for 2010/11 was 5,140. This represents only a small increase compared to 2009/10 (with 5,102 members). The number of new members joining the organisation was 647 during the year.
We are currently implementing a new membership scheme, making membership easier for members and also providing more member benefits. There will also be slight price increases across all memberships, to address the overall loss from our membership program.
GROWING OUR BRAND AND ACHIEVING REGULAR AND SUSTAINED INCOME This year we received ongoing support from the government, corporate and other generous supporters.
Government Grants We received $38,000 from Sydney West Area Health Service under the Non-Government Organisation funding program. We gratefully acknowledge the support of NSW Health in providing this grant which contributes to education activities.
Pfizer Australia We received a special grant of $4,500 from Pfizer Australia for our first annual “Splash for Arthritis” event during Arthritis Awareness Week. We thank them for their special contribution to the organisation.
St George Foundation In April we received a grant of $9,798 from the St George Foundation, towards the costs of Camp Twinkletoes, our annual weekend camp for children with JIA, less than eight years of age and their families. We express our appreciation to St George 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 $8,000 from their annual display at The Kings School. We appreciate the ongoing support we receive from this car club which goes towards Camp Footloose.
Arthritis Summer Challenge As the inaugural event for Arthritis NSW, the Arthritis Summer Challenge saw a total of 20 individuals and groups raise $14,000 for Arthritis NSW. Some of the activities included a walk, run, fitness class, Zumba class, and a morning and afternoon tea.
Splash for Arthritis Our first event during Arthritis Awareness Week - “Splash for Arthritis”, Australia’s largest water exercise class saw a total of 120 people attend. Sponsorship was received from from Pfizer, Cojo, DKM Blue and Mix 106.5 FM and we thank them for their support. This event generated interest from The Today Show, Sunday Telegraph and many local newspapers.
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Appeals Given the small amount of government funding we receive, we could not function without the support from our appeals. Thanks to the generosity of 1,293 supporters, in 2010/11 we raised a total of $102,737; this is up from $44,176 in 2009/10. 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 2010/11, we raised a total of $86,194 from 1,372 supporters.
WINTER 2011
Kidsflix 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 Ballina, Bathurst, Castle Hill, Charlestown, Dubbo, Erina, Miranda, Orange, Penrith, Shellharbour, Sydney Entertainment Quarter and Warringah Mall.
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. During the next financial year, we will also be introducing a bi-monthly e-newsletter for our members with e-mail addresses.
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Kidsflix has generated $184,497 for Arthritis NSW in 2010/11. 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 who gave up their time to help out as well.
Alison Watson Memorial Scholarship Award This year the Alison Watson Memorial Scholarship was awarded to Megan Congdon. This award is in memory of Alison Watson who triumphed over her crippling arthritis to help our organisation in our early days of development.
Website We are continually updating our website to make it easier to navigate while further developing our online capabilities.
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DEVELOPING STRATEGIC PARTNERSHIPS Arthritis NSW benefits from strong partnerships with health service agencies, other sectors and individual health professionals to help achieve its goals. During the last 12 months we collaborated with: University of NSW in the Moving On program University of Western Sydney in the Motherhood Choices project The Agency for Clinical Innovation through the NSW Musculoskeletal Network Consumers Health Forum through the representation of Board Director Diana Aspinall who raises issues relevant to people with arthritis and osteoporosis A range of allied health and medical staff including orthopaedic surgeons and rheumatologists Education & Training Committee of Australia New Zealand College of Anaesthetists through representation of Board Director Diana Aspinall who provides a consumer perspective on curriculum development QUM Advisory Committee – University of South Australia through the representation of Board Director Diana Aspinall. This committee looks at issues related to medicine use amongst veterans
NPS Better Choices – Better Health Consumer Advisory Group through the representation of Board Director Diana Aspinall. This focus of this group is quality use of medicines Painaustralia Limited through the participation of Board Director Diana Aspinall, who is also on the Board of this organisation Department of Health & Ageing and the Pharmacy Guild of Australia who are developing a Patient Charter for Community Pharmacies. We particularly wish to thank Professor David Hunter, from Royal North Shore Hospital, for his support with our first webinar for health professionals, along with other activities completed together throughout the year and Dr Davinder Singh Grewal for his support with activities to Juvenile Idiopathic Arthritis.
13 | Arthritis New South Wales
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Arthritis Foundation of New South Wales
Directors’ Report FOR THE YEAR ENDED 30 JUNE 2011 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 2011 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
Age Appointed
Resigned
Mr David Riches President
Health Promotion Consultant
54
22 Dec. 2001
A/Prof. Jeno Emil Marosszeky Senior Specialist Rehabilitation MB, BS, DPRM, FACRM Medicine Chairman - Education Committee
73
21 March 1988
Mr Dennis Messner Chartered Accountant Honorary Treasurer - Aug 2005
59
17 April 2002
Ms Diana Aspinall
Consumer Representative
72
2 November 2001
Ms Diana Sykes
Marketing Consultant
47
21 April 2001
Prof Nicholas Manolios
Rheumatologist
58
18 November 2009
Mr Gregory Monaghan
Executive and Company Director 56
17 October 2007
Ms Cosimina Pupo
Legal Consultant
56
19 December 2007
Mr Neil Wildman
Mental Health and Management
36
18 September 2010
Mr Russell Moor
Branches Representative
78
1 August 2008
Ms Judith Cantor
Marketing and Fundraising
37
16 November 2010
Ms Beverley Walker
Consumer
65
18 September 2010 6 April 2011
18 Sept. 2010
18 Sept. 2010
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Directors’ Report
(continued)
For the year ended 30 June 2011
2 Directors’ meetings The number of directors’ meetings and number of meetings attended by each of the directors of the Company during the financial year are: Director
Mr D Riches A/Prof. J E Marosszeky Mr D Messner Ms D Aspinall Ms D Sykes Prof N Manolios Mr G Monaghan Ms C Pupo Mr N Wildman Mr R Moor Ms J Cantor Ms B Walker
Directors’ Meetings A
B
8 9 8 7 3 6 5 8 7 2 3 2
9 9 9 9 9 9 9 9 9 9 9 9
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 short term objectives are to expand the current target groups and develop innovative programs for groups including: young adults living with arthritis and other musculoskeletal conditions, parents of children with juvenile idiopathic arthritis, residents living in the boundary of Greater Western Area Health Service, general practitioners in rural regions of NSW. The Company’s long term objective is to promote the quality of life of people living with arthritis and other musculoskeletal conditions. The Company measures its performance by benchmarking its progress against its strategic objectives: providing up to date information and eductaion to the community developing and maintaing a robust branch structure through NSW developing and maintaing a string membership base through NSW promoting research ensuirng sustainability through good governance developing strategic partnerships.
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4. Principal activities The principal activities of the Company during the course of the financial year were research into arthritis and osteoporosis, the provision of educational material on arthritis and osteoporosis and fundraising activities to finance these activities. There were no significant changes in the nature of the activities of the Company during the year.
5. Operating and financial review The deficit of the Company for the year ended 30 June 2011 was $572,437 (2010: $171,321).
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 2011 was 4,750 (2010: 4,918). The total amount that members of the Company are liable to contribute if the Company is wound up is $95,000 (2010: $98,360).
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 2011. This report is made in accordance with a resolution of the directors:
Mr D Ric ches Riches Director
Mrr D M e sner es Messner Director Di D ireeccttor Dated at Sydney this 19th day of October 2011. Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001
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Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001
To: the directors of Arthritis Foundation of New South Wales I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year ended 30 June 2011, 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 19 October 2011
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 2011, 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 2011
In AUD
Note
2011
2010
Revenue
4
1,126,152
1,340,409
Other income
5
-
307,607
(1,416,774)
(1,365,421)
Education expenses
(198,427)
(319,394)
Research expenses
(17,667)
(82,257)
Depreciation expense
(69,481)
(76,876)
Marketing and fundraising expenses
(283,084)
(281,475)
Results from operating activities
(859,281)
(477,407)
307,392
306,086
(20,548)
-
286,844
306,086
(572,437)
(171,321)
Net change in fair value of available-for-sale financial assets
(6,753)
26,338
Cumulative impairment losses on available-for-sale financial assets reclassified to profit or loss
20,548
-
Other comprehensive income for the year
13,795
26,338
(558,642)
(144,983)
Administrative expenses
Finance income Finance costs Net finance income
7
Deficit for the year
Other comprehensive income
Total comprehensive loss for the year
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 2011
In AUD
Note
2011
2010
Assets Current Assets Cash and cash equivalents
8
4,876,439
5,328,235
Trade and other receivables
9
92,305
171,264
Inventories
10
12,825
12,825
4,981,569
5,512,324
Total current assets Non-current Assets Other investments
11
253,305
260,058
Investment property
12
-
-
Property, plant and equipment
13
1,321,879
1,388,940
Total non-current assets
1,575,184
1,648,998
Total assets
6,556,753
7,161,322
Liabilities Current liabilities Trade and other payables
14
210,006
255,933
Employee benefits
15
96,480
96,480
306,486
352,413
15,133
15,133
15,133
15,133
321,619
367,546
6,235,134
6,793,776
146,828
133,033
Retained surplus
6,088,306
6,660,743
Total members' funds
6,235,134
6,793,776
Total current liabilities Non-current liabilities Employee benefits
15
Total non-current liabilities Total liabilities Net assets Members' funds Reserves
16
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 2011
In AUD Balance at 1 July 2009
Research reserves - McGill Medical Research Trust reserve 3,012
Research reserves Education Fair value Retained reserve surplus reserve - Alison Watson
Total members' funds
104,033
(350) 6,832,064 6,938,759
-
-
- (171,321) (171,321)
Net change in fair value of available-forsale financial assets
-
-
26,338
-
26,338
Total other comprehensive income
-
-
26,338
-
26,338
Total comprehensive loss for the year
-
-
26,338
(171,321)
(144,983)
Balance at 30 June 2010
3,012
104,033
25,988
6,660,743
Balance at 1 July 2010
3,012
104,033
25,988
6,660,743
-
-
-
(572,437)
(572,437)
Net change in fair value of available-forsale financial assets
-
-
(6,753)
-
(6,753)
Cumulative impairment losses on availablefor-sale financial assets reclassified to profit or loss
-
-
20,548
-
20,548
Total other comprehensive income
-
-
13,795
-
13,795
Total comprehensive loss for the year
-
-
13,795
(572,437)
3,012
104,033
Total comprehensive income for the year Deficit for the year Other comprehensive income
6,793,776 6,793,776
Total comprehensive income for the year Deficit for the year Other comprehensive income
Balance at 30 June 2011
(558,642)
39,783 6,088,306
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 2011
In AUD
Note
2011
2010
Cash receipts in the course of operations
1,173,921
1,556,244
Cash payments in the course of operations
(1,930,689)
(2,146,002)
Cash generated from operations
(756,768)
(589,758)
Interest received
294,410
203,533
Net cash used in operating activities
(462,358)
(386,225)
-
730,000
(2,420)
(38,705)
12,982
13,767
-
(18,234)
10,562
686,828
(451,796)
300,603
5,328,235
5,027,632
4,876,439
5,328,235
Cash flows from operating activities
Cash flows from investing activities Proceeds from sale of investment property Acquisition of property, plant and equipment Dividends received Incidentals on disposal of investment property Net cash from investing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year
8
The notes on pages 10 to 22 are an integral part of these financial statements.
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1 Reporting entity
3 Significant accounting policies
Arthritis Foundation of New South Wales (the Company) is a company limited by guarantee and domiciled in Australia. The address of the Company’s registered office is 1, 15/32 Delhi Road, North Ryde NSW 2113. The financial statements are as at and for the year ended 30 June 2011.
The accounting policies set out below have been applied consistently to all periods presented in these financial statements.
The Company is primarily involved in research into arthritis and osteoporosis, the provision of educational material on arthritis and osteoporosis and fundraising activities to finance these activities.
2 Basis of preparation (continued) (e) Changes in accounting policies Presentation of financial statements Trans-Tasman harmonisation and reduced disclosure The Company early adopted reduced disclosure requirements in AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 201002 Amendments to Australian Standards arising from Reduced Disclosure Requirements and TransTasman harmonisation requirements in AASB 1054 Australian Additional Disclosures, AASB 2011-1 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project and AASB 2011-02 Amendments to Australian Accounting Standards arising from the TransTasman Convergence Project - Reduced Disclosure Requirements. This has resulted in a reduction of disclosures for items such as financial instruments and reconciliation of cash flows. Comparative information has been re-presented or removed so that it also conforms to the new disclosure requirements. Since the change in accounting policy only impacts presentation aspects, there is no impact on comprehensive income.
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. Loans and receivables comprise cash and cash equivalents and trade and other receivables. Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits with original maturities of three months or less.
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3 Significant accounting policies (continued) Items of property, plant and equipment are (a) Financial instruments (continued) (i) Non-derivative financial assets (continued) Available-for-sale financial assets The Company’s investments in euity 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. 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. (ii) Non-derivative financial liabilities Financial liabilities are recognised initially on the date, which is the date that 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.
measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. 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. 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) 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 part is derecognised. The costs of the dayto-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.
Other financial liabilities comprise trade and other payables. (b) Property, plant and equipment (i) Recognition and measurement
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3 Significant accounting policies (continued)
(b) Property, plant and equipment (continued) (iii) Depreciation (continued) 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. The estimated useful lives for the current and comparative years are as follows: •
buildings 40 years
•
motor vehicles 3 - 5 years
•
plant and equipment 3 - 5 years
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. (c) Investment property “Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Investment property is measured at cost on initial recognition and subsequently at fair value with any change therein recognised in profit or loss. Cost includes expenditure that is directly attributable to the acquisition of the investment property. When the use of a property changes such that it is reclassified as property, plant and equipment, its fair value at the date of reclassification becomes its cost for subsequent accounting. (d) Inventories
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated selling expenses. (e) Impairment (i) Non-derivative financial assets Financial asset 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 (including equity securities) 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 prolonged decline in its fair value below its cost is objective evidence of impairment. The Company considers evidence of impairment for 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.
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 and other costs incurred in bringing them to their existing location and condition.
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3 Significant accounting policies (continued) (ii) Non-financial assets (e) Impairment (continued) (i) Non-derivative financial assets (continued) In assessing collective impairment the Company uses historical trends of the probability of default, 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 (e.g. repayment by a debtor) 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 members’ funds, to profit or loss. The cumulative loss that is reclassified from members’ funds 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.
The carrying amounts of the Company’s nonfinancial assets, other than inventories, 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 cashgenerating 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 “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.
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3 Significant accounting policies (continued) Revenue from the sale of goods in the course of (f) Employee benefits (i) Defined contribution plans 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. 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 longterm employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is the yield at the reporting date on government bonds that have maturity dates approximating the terms of the Company’s obligations. (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. (g) Revenue (i) Goods sold
ordinary activities is measured at the 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 consideration 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 Revenue from services rendered is recognised in profit or loss in the period in which the service is performed. (iii) Bequests Revenue from bequests is recognised in profit or loss in the period in which it is received and control has passed to the Company. (iv) Donations, fundraising and grant income Revenue form 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) Contributions 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 recognised in profit or loss in the financial year to which the membership relates.
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3 Significant accounting policies (continued) Receivables and payables are stated with the (h) 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 grant can be measured reliably. Other grants are recognised initially as deferred income at fair value when there is reasonable assurance that they will be received and the Company will comply with the conditions associated with the grant and are then recognised in profit or loss as other income on a 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. (i) Finance income and finance costs Finance income comprises interest income on funds invested, 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.
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 statement of financial position. Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows. (l) New standards and interpretations not yet adopted A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 July 2010, 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 2014 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.
Finance costs comprise impairment losses recognised on available-for-sale financial assets. (j) Income tax The Company has been granted an income tax exemption under Division 50 of the Income tax Assessment Act 1997. (k) 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.
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Arthritis Foundation of New South Wales Statement of financial positions at 30 June 2011
4
Revenue In AUD
2011
2010
Bequests
296,466
650,494
Members' subscriptions
122,448
129,857
Fundraising appeals
274,290
295,504
Government grant
31,350
37,325
401,598
227,229
1,126,152
1,340,409
2011
2010
-
307,607
-
307,607
2011
2010
902,360
794,540
70,638
74,174
Increase in liability for annual leave
-
9,361
Increase in liability for long service leave
-
9,515
972,998
887,590
2011
2010
294,410
292,319
12,982
13,767
Finance income
307,392
306,086
Impairment loss on available-for-sale financial assets
(20,548)
-
Finance costs
(20,548)
-
Net finance income
286,844
306,086
2011
2010
Other revenue
5
Other income In AUD Net gain on sale of investment property
6
Personnel expenses included in the statement of comprehensive income In AUD Wages and salaries Contributions to defined contribution plans
7
Finance income and finance costs In AUD Interest income on short term deposits Dividend income on available-for-sale financial assets
8
Cash and cash equivalents In AUD
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Bank balances
585,934
128,695
4,289,978
5,199,026
527
514
4,876,439
5,328,235
2011
2010
Trade receivables
17,170
33,733
Interest receivable
41,293
105,003
Prepayments
30,108
27,894
3,734
4,634
92,305
171,264
2011
2010
12,825
12,825
12,825
12,825
2011
2010
253,305
260,058
253,305
260,058
2011
2010
Balance at 1 July
-
407,752
Depreciation charge for the year
-
(3,638)
Disposals
-
(404,114)
Balance at 30 June
-
-
Plant and equipment
Total
Call deposits Petty cash Cash and cash equivalents in the statement of cash ows 9
Trade and other receivables In AUD Current
Deposits
10
Inventories In AUD Finished goods
11
Other investments In AUD Non-current investments Available-for-sale ďŹ nancial assets
12
Investment property In AUD
Investment property comprises the property previously occupied by the Company at 13 Harold Street, North Parramatta. This was sold on 19 February 2010. 13
Property, plant and equipment In AUD
Buildings
Motor Vehicle
Cost
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Balance at 1 July 2010
1,368,626
29,665
Additions Balance at 30 June 2011
225,035
1,623,326
2,420
2,420
1,368,626
29,665
227,455
1,625,746
Balance at 1 July 2010
36,269
24,197
173,920
234,386
Depreciation for the year
34,216
5,468
29,797
69,481
Balance at 30 June 2011
70,485
29,665
203,717
303,867
1,332,357
5,468
51,115
1,388,940
23,738
1,321,879
2011
2010
99,110
88,339
110,896
167,594
210,006
255,933
2011
2010
12,198
12,198
84,282
84,282
96,480
96,480
15,133
15,133
15,133
15,133
Depreciation and impairment losses
Carrying amounts At 1 July 2010 At 30 June 2011 14
1,298,141
Trade and other payables In AUD Current Trade payables Other payables and accrued expenses
15
Employee benefits In AUD Current Liability for long service leave Liability for annual leave
Non-current Liability for long service leave 16
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 the fair value of available-for-sale financial assets until the investments are derecognised or impaired.
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17
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 amount as may be required but not exceeding twenty dollars ($20) per member. The number of members as at 30 June 2011 was 4,750 (2010: 4,918). The total amount that members of the Company are liable to contribute if the Company is wound up is $95,000 (2010: $98,360).
18
Related parties Transactions with key management personnel In addition to their salaries, the Company also contributes to post-employment deďŹ ned contribution funds on behalf of key management personnel. Key management personnel compensation The key management personnel compensation included in personnel expenses (note 6) was $267,994 for the year ended 30 June 2011 (2010: $268,136).
19 (i)
(ii)
Results of fundraising appeals In AUD
2011
2010
Gross proceeds from fundraising appeals
146,901
130,992
less: Direct costs of fundraising appeals
(50,317)
(68,751)
Net surplus obtained from fundraising appeals
96,584
62,241
Distributions and direct costs of services provided
469,410
614,378
Administration expenses
1,486,254
1,442,295
1,955,664
2,056,673
(1,859,080)
(1,994,432)
2011
2010
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 $1,859,080 (2010: $1,994,432) between the net surplus obtained from fundraising appeals of $96,584 (2010: $62,241) and expenditure and transfers of $1,955,664 (2010: $2,056,673) was provided from the following sources: In AUD
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Bequests
296,466
650,494
Members' subscriptions
122,448
129,857
Members' donations
17,590
27,170
Government grant
31,350
37,325
Interest on investments
294,410
292,319
Dividends received
12,982
13,767
Research scholarships
2,008
10,598
Card shop sponsorship
-
8,796
NPS scholarships
-
40,000
Seminars and workshops
174,212
72,773
Osteoporosis seminars
-
310
Hydrotherapy classes
65,195
62,405
Kidsflix income
184,497
121,644
Sponsorship evaluation
180
-
Sale of publications
5,261
11,196
Arthritis Matters advertising
2,581
6,652
Other revenue
77,463
30,198
Other income
-
307,607
Decrease in accumulated funds
572,437
171,321
1,859,080
1,994,432
19
Results of fundraising appeals (continued)
(iv)
Comparisons of certain monetary figures and percentages
Total cost of fundraising /
2011
2010
2010
$
%
$
%
50,317
34
68,751
52
Gross income from fundraising
146,901
Net surplus from fundraising /
96,584
Gross income from fundraising
146,901
Total cost of services /
419,410
Total expenditure
20
2011
130,992 66
469,410
Total income received
1,412,996
48
130,992 23
2,005,981
Total costs of services /
62,241 614,378
29
2,125,424 33
614,378
31
1,954,103
Subsequent events
There have been no events subsequent to reporting date which would have a material effect on the Company's financial statements at 30 June 2011.
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Arthritis Foundation of New South Wales
Directors’ Declaration In the opinion of the directors of Arthritis Foundation of New South Wales (the Company): (a) the financial statements and notes, set out on pages 6 to 22, 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 2011 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; and (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 D Riches Director
Mr D Messner M Director Di D irector Dated at Sydney this 19th day of October 2011.
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Independent audit report to the members of Arthritis Foundation of New South Wales
Report on the financial report 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 2011, the statement of comprehensive income, statement of changes in members’ funds and statement of cash flows for the year then ended, notes 1 to 20 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 – 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. 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 - Reduced Disclosure Requirements, a true and fair view which is consistent with our understanding of the Company’s financial position and of its performance.
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Independent audit report to the members of Arthritis Foundation of New South Wales (continued) In addition, our audit report has also been prepared for the members of the Company in accordance with Section 24(2) of the Charitable Fundraising (NSW) Act 1991. Accordingly we have performed additional work beyond that which is performed in our capacity as auditors pursuant to the Corporations Act 2001. These additional procedures included obtaining an understanding of the internal control structure for fundraising appeal activities and examination, on a test basis, of evidence supporting compliance with the accounting and associated record keeping requirements for fundraising appeal activities pursuant to the Charitable Fundraising (NSW) Act 1991 and Regulations. It should be noted that the accounting records and data relied upon for reporting on fundraising appeal activities are not continuously audited and do not necessarily reflect after the event accounting adjustments and the normal year end financial adjustments for such matters as accruals, prepayments, provisioning and valuations necessary for year end financial report preparation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 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 Foundation of New South Wales on 19 October 2011, would be in the same terms if given to the directors as at the time of this auditor’s report. Basis for qualified auditor’s opinion Fundraising and bequest income amounting to $570,756 are a significant source of revenue for Arthritis Foundation of New South Wales. Arthritis Foundation of New South Wales has determined that it is impracticable to establish controls over the collection of fundraising and bequest income prior to entry into its financial records. Accordingly, as the evidence available to us regarding revenue from this source was limited, our audit procedures with respect to fundraising and bequest income had to be restricted to the amounts recorded in the financial records. We therefore are unable to express an opinion whether the fundraising and bequest income of Arthritis Foundation of New South Wales obtained is complete. In respect of the qualification however, based on our understanding of the internal controls, nothing has come to our attention which would cause us to believe that the internal controls over revenue from fundraising appeal activities and bequest income by the Company are not appropriate given the size and nature of the Company.
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Qualified auditor’s opinion pursuant to the Corporations Act 2001 In our opinion, except for possible effects of the matter described in the Basis for qualified opinion paragraph, the financial report of Arthritis Foundation of New South Wales 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 2011 and of its performance for the year ended on that date; and (ii) “complying with Australian Accounting Standards - Reduced Disclosure Requirements 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: a) the financial report gives a true and fair view of the financial result of fundraising appeal activities for the financial year ended 30 June 2011; b) the financial report has been properly drawn up, and the associated records have been properly kept for the period from 1 July 2010 to 30 June 2011, in accordance with the Charitable Fundraising (NSW) Act 1991 and Regulations; c) money received as a result of fundraising appeal activities conducted during the period from 1 July 2010 to 30 June 2011, has been properly accounted for and applied in accordance with the Charitable Fundraising (NSW) Act 1991 and Regulations; and d) there are reasonable grounds to believe that Arthritis Foundation of New South Wales will be able to pay its debts as and when they fall due.
Carlo Pasqualini Partner Sydney 25 October 2011
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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 Foundation of New South Wales, declare in my opinion: (a) The financial report gives a true and fair view of all income and expenditure of Arthritis Foundation of New South Wales with respect to fundraising appeal activities for the financial year ended 30 June 2011; (b) the statement of financial position gives a true and fair view of the state of affairs with respect to fundraising activities as at 30 June 2011; (c) the provisions of the Charitable Fundraising (NSW) Act 1991 and Regulations and the conditions attached to the authority have been complied with for the financial year ended 30 June 2011; and (d) the internal controls exercised by Arthritis Foundation of New South Wales are appropriate and effective in accounting for all income received. It is not always practicable for Arthritis Foundation of New South Wales to establish accounting control over all sources of fundraising activities prior to the receipt of the funds by employees of the Company.
Karen Filocamo Chief Executive Officer Sydney, 19 October 2011
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YOUNG OR OLD, MALE OR FEMALE CITY OR RURAL… YOU DON’T HAVE TO LIVE WITH THE PAIN ALONE. ARTHRITIS NSW Locked Bag 2216, North Ryde NSW 1670 Phone: 02 9857 3300 Fax: 02 9857 3399 Toll Free: 1800 011 041
arthritisnsw.org.au
Authority to fundraise CFN 12845 ACN 000 587 299 ABN 64 528 634 894