Annual Report and Financial Statements for the year ended 30 June 2014
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www.gchfoundation.org.au (07) 5594 6986
Table of Contents
Letter of compliance 2 Chairman’s report 3 Chief Executive Officer’s report 5 Gold Coast Hospital Foundation role and main functions 10 Non-financial performance The year in review – against our strategic plan 12 Grants and Disbursements 2013-2014 13 Additional Achievements 15 Looking Forwards – Plan for 2014/2015 16 Governance – management and structure Organisational structure, boards & committees 18 Financial performance Treasurer’s report (Chief Financial Officer) 23 Annual financial statements 25 Independent audit report 47
Appendices Compliance checklist 50 Glossary 50
© (Gold Coast Hospital Foundation) 2014 ISSN: 2200-1808
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Gold Coast Hospital Foundation Gold Coast University Hospital 1 Hospital Boulevard Southport QLD 4215
Phone: 07 5594 6986 Email: [email protected] Website: www.gchfoundation.org.au
Open Data Details of our Open Data i.e. consultancy expenditure has been published online through the Queensland Government Oped Data website (qld.gov.au/data)
Public availability This report is available on our website: www.gchfoundation.org.au/about/publications
Reports from previous years can also be found on our website.
The Queensland Government is committed to providing accessible services to all Queenslanders from culturally and linguistically diverse backgrounds. If you have difficulty understanding the annual report, please contact the Foundation Assistant on (07) 5594 6986, who will arrange an interpreter to effectively communicate the report to you.
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 1 Chairman’s report – Gary J Baildon AM, KSJ, Duniv
This Annual Report is a very special one – marking a significant milestone in the Foundation’s history. In 2014, the Foundation proudly celebrates 20 years of charitable service to help improve the health of the Gold Coast community.
I feel incredibly fortunate to have played a role in the hundreds of medical equipment, research and health education activities and achievements of the Foundation, since it was established in 1994. This significant anniversary provides a perfect opportunity to acknowledge who I like to call, ‘the quiet achievers’… those people who have put so much time and energy into projects that have helped improve local health care services for people just like you and I. At the forefront of my mind is Cnr Lex Bell, our Founding Chairman who volunteered his leadership, time and effort into our formative years.
I would particularly like to thank and recognise all of our doctors and nurses, with a special mention of Eda Beck, a health professional who served on the Foundation board for a number of years. As a practicing psychologist, lecturer at Griffith and Bond universities, and a former health administrator in Darwin, Eda shared great expertise and dedication with this organisation.
I also thank all of the donors and supporters, community volunteers and Foundation Board members, who have volunteered their time and in many cases provided generous financial support and gifts-in-kind, to help us achieve our mission. Worthy of great praise are the initial long-standing members of our team, including Beth Dermody, who spent 12 years running the Foundation from the old wards at the Gold Coast Hospital.
I’ve always believed the word ‘Foundation’ to be so appropriate to what we do, as it allows one to visualise the image of a strong, resilient supporting structure – unseen, beneath the surface, but delivering a strong sense of security, faith, dependability and trust for all those who work within it or seek its services. With this in mind, I extend a heartfelt thanks to all those who have been an essential part of this Foundation, especially our donors who provide the steely resolve and commitment to hold firm in the service of others – the real strength within our solid base.
The last 12 months have been both exciting and challenging and I am extremely proud of the achievements of the Foundation during this period. In September 2013 we moved premises from the old de-commissioned Gold Coast Hospital to the new Gold Coast University Hospital (GCUH).
I am pleased to report that the Foundation is in a strong financial position. Last year I reported that, “For some time, substantial funds have been held in reserve to take advantage of a specific commercial investment in the new Gold Coast University Hospital. This capital outlay is no longer required and the anticipated income-generating partnership with Gold Coast Hospital and Health Service (GCHHS) e.g. retail, parking and patient-entertainment system revenue will no longer occur. This change in direction means that Gold Coast Hospital Foundation, unlike many of our Queensland Hospital Foundation peers, no longer has a steady earned income stream on the horizon. This will place a greater emphasis on our Fundraising capability and performance and as such, we have approved a new five year organisation strategy and fundraising strategy that will result in a professional fundraising team and department being built.
Looking at this year’s account you will notice that our income is slightly higher than that achieved in FY13, yet our disbursements for grants and projects is lower. This is disappointing
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 3 and is due to GCHHS delays in ordering and invoicing us for equipment that we have approved. We hope to disburse these accrued funds as early as possibly in FY15 and will seek to work with GCHHS to improve our disbursement processes.
It is worthy of note that our strong financial position is due to the support of the community. I would like to take this opportunity to thank each company, organisation and individual that has so generously supported us throughout the year. It is only due to the commitment of our supporters that the Foundation is able fund vital medical equipment and continued education for health staff and invests in promising medical research.
Turning my attention to now to our Board; long serving board member Professor Lyn Griffiths retired from the Foundation to take up a new position in Brisbane. We are grateful for Lyn’s significant contribution to our work during her time with us and the impact she made to local Research. David van Herwaarde, Treasurer, took a leave of absence due to conflicting work commitments and Wayne Hunt, Vice-Chairman, who has a strong accounting background, has become Acting Treasurer. Thank you to all board members for their attendance and dedication to the Foundation throughout the year.
Our Chief Executive Officer, Kim Sutton, has now been in post for 18 months and has really started to build us a strong future as she re-positions our cause, builds the team and overhauls our systems, procedures and activities. She has made an impressive start in growing public awareness and support for our work and improving our fundraising. While much has been achieved this year, disruption has occurred with the replacement of our Partnerships Manager – leaving the role vacant for three months and fundraising mainly reliant on the Chief Executive Officer.
This will be my last Annual Report. I feel that the time has come for me to step down from my position on the Board and I anticipate that this will happen during the Board nomination process in November 2014.
As I prepare to resign my role as Chairman, I would like to share with you one of Winston Churchill’s quotes that has been of constant inspiration to me. He said, “You make a living from what you get – you make a life from what you give.”
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 4 Chief Executive Officer Report - Kim Sutton CFRE, BBSc (Psychology Hons.)
The year in review.
The past 12 months have been a busy and exciting time for the Foundation with lots of hard work and positive changes that will position us well for the future.
In June 2014 we finalised our equally inspirational and ambitious 5-year strategy and budget, which will springboard the Foundation into the next phase of development. These plans will see us make a greater annual impact on the growing health needs of our community and the hospital and health service that serves them. The central pillars of our new strategy involve growing public awareness and community support for our work, so that we can significantly increase the impact that we have on public health care in our region.
A key highlight of the year was the opening of the new Gold Coast University Hospital in September 2013. This brought with it new offices for the Foundation team and most importantly, a prominent location in the Retail precinct (see image below). This new location has commenced our journey towards increased community awareness, as a growing number of health staff have started to come in to find out about our grant programs and more patients and visitors pop in to make a donation.
Another highlight of the year was the delivery of our largest event to date – our Gala Dinner held in August 2013 to celebrate the opening of the new Gold Coast University Hospital. This event was attended by 408 guests who raised just over $80,000 for health and medical projects. We aim that this event will become the Diamond in our annual fundraising calendar, with a larger event planned for 2014.
Of significance is the continued implementation of our new CRM database that will make communication with key stakeholders more effective and efficient. This has not been an easy task, as existing data had previously been held in various formats and files and was not as comprehensive as we would like. We continue to put time and resource into this project as good data is paramount to a successful fundraising program.
Our activities throughout the year have focused on supporting the Government’s objectives for the community, in particular the ‘Getting Queensland back on track’ pledges of Investing in better infrastructure and better planning and Revitalising front-line services. We have done this by purchasing modern medical equipment, funding continued staff education and investing in research projects that add value to existing government budgets and help Gold Coast Health staff to deliver improved health care services to the Gold Coast community and visitors to the region.
It is worth noting that the changeover from the old Gold Coast Health Service District (GCHSD) to the new GCHHS has brought with it some challenges. One of particular note has been that the Foundation is no longer involved in a number of commercial income opportunities that were anticipated in our 2012 and 2013 Annual reports that would have provided an ongoing non-philanthropic revenue stream such as retail income from the tenancies at GCUH, parking at Robina Hospital and Naming rights.
A further challenge, which has affected our total equipment disbursements this year, was the move from Gold Coast Hospital to Gold Coast University Hospital. With the pending move and a lack of clarity around exactly what equipment would be at the new hospital, heads of departments were understandably reluctant to order new equipment. Additionally, we found
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 5 that hospital teams were very busy planning and implementing the move and then settling into their new facilities for much of the financial year. This unavoidably meant that Foundation activities could not be priority for departments for most of the year.
Income Hitting our income target this year has at times been challenging, mainly due to limited resources and the time required for a new team to establish themselves in the local community and build a reliable income pipeline. A significant environmental impact of note was the correlation between the declining performance of our Art Union raffles and the increasing costs of running them. With this in mind, we decided that the ROI of this activity was no longer viable, running our last Art Union with Apple Marketing in November 2013.
Our income in FY14 came from the following sources: - Our Annual Gala Dinner - Events run by our supporters - General donations and regular gifts from individuals, companies and organisations - One GCHF Art Union raffle - 92.5 Gold FM Give me 5 4 Kids Appeal - Bank interest from an invested bequest - Small commercial activities, including vending machine commission and a Foundation-run stall at Gold Coast Hospital selling knitted goods.
Image: New Foundation office, located in the retail precinct at Gold Coast University Hospital, Southport
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 6 Fundraising The Foundation receives no government funding. This means that, with 82% of our FY14 income generated from fundraising activities it is fair to say that we rely heavily on the philanthropic support of local community members, companies and organisations.
On behalf of the Foundation I would like to thank each of our supporters for their generosity throughout the past year. To name each supporter is not possible, in the space allowed for this annual report, but please know that you are front of mind and incredibly valued.
Some fundraising highlights
Give Me 5 for Kids Appeal – Southern Cross Austereo
The Foundation and Southern Cross Austereo have worked together for more than ten years to deliver the high profile and hugely successful Give me 5 for Kids fundraising appeal. This year was bigger than ever, with the 92.5 Golf FM team Richard, Bridge and Spida, morning breakfast radio announcers from Gold FM, working tirelessly throughout June, to secure the support of the Gold Coast community. This year’s appeal raised $156,000 for children’s health facilities and equipment. Image: 92.5 Gold FM Breakfast Announcer, Spida Everitt, meets a young patient at Gold Coast University Hospital
Art union raffle This year we ran one (our last) art union raffle via telefundraising. Our loyal database of art union supporters bought a 75,000 tickets and made one-off donations, making a total profit of $53,946 towards improved public health care
Woolworths
Have been fantastic again this year, supporting several children’s equipment projects by donating $15,100, raising $74,911 through a jet-ski raffle, held across 18 Gold Coast Woolworths stores and providing the food and teams to run fundraising BBQs during the annual Give me 5 for kids appeal.
Image: Woolworths store manager, Erin and the Foundation team hand over a brand new jet ski to the winners of our Woolworths raffle
Jupiters Hotel & Casino
This year Jupiters Hotel & Casino became a major supporter of the Foundation, making a $40,000 cash donation to fund the purchase of a portable Ultrasound machine and help enable research that will improve the delivery of hospital care.
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 7
MBA Partnerships
Each year, MBA Partnerships run a Golf Day that raises funds for us and a two other local charities. In 2013 this annual event raised $11,088 for the Gold Coast Hospital Foundation.
Image: Vanessa Latta (pictured left) of MBA Partnerships, who organised the 2013 event, receives a Thank You certificate on behalf of the MBA Partnerships team.
Wiltshire Family Law
This local family law firm raised $10,035 for Women’s health care through their series of Corporate Ladies Luncheons, run in partnership with gcVIP. This donation enabled the purchased a much needed bladder scanner that will benefit women’s health.
Image: Emma Ludeke of Wiltshire Family Law and Andrew Meadowcroft of gcVIP hand Kim Sutton, Foundation CEO, $10,035 at their Cocktail evening held in January.
Hello Gold Coast - This family run business has been loyally supporting us every month since 2007. This year they donated $2,000, bringing their total contribution to health care up to $20,000.
First National Broadbeach
Since 2008 Pam Bayles and her team have donated funds to help children in hospital. This year they donated $1k and held a fundraising lunch that raised $7,200 for Give me 5 4 kids appeal 2013.
Image: Pam Bayles, First National Broadbeach (pictured second from left) with the Foundation and 92.5 Gold FM team at her fundraising lunch in June 2014.
Harvey Norman, Bundall - hosted two VIP sales evenings and offered generous discounts on Art Union raffle prizes. These activities delivered a total value of $3, 000.
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 8 Community groups and individuals As a local charity that has the potential to touch nearly every member of our local community through health care delivery - building a strong relationship with the organisations and groups in our local region is incredibly important. This year we were fortunate to receive the support of a number of groups and we hope to grow these relationships in the coming year. Of particular note is Rotary Broadwater Southport who donated $10,000 to help us purchase bilirubinometers for the Newborn Care Unit at Gold Coast University Hospital. This equipment reduces the need for nursing staff to use invasive blood tests to measure jaundice levels in new born infants. Image: Rotary Broadwater Southport, Lynne Walshe, proudly presents a $10,000 cheque to Foundation Chairman, Gary Baildon and Chief Executive Officer, Kim Sutton
Major donors We would like to thank and recognise this year’s major contributors: Pure Land Buddhist, Mr Gerald Williams, The Ko-Chen Ling Family, Ms Jenny Wong and Mr Greg Hawkins & Leanne Dabelstein.
ProBono - A special thanks to KPMG, Bell Legal Group and Grand Brands who have provided invaluable ProBono expertise and support throughout the year.
It has been a great year and I know that, with your support, the Foundation has a strong future.
On behalf of everyone involved in the Foundation, in public health care and the patients and their families who benefit from your support - thank you. We look forward to working with you all in the coming 12-months and beyond.
Kim Sutton Chief Executive Officer
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 9 Gold Coast Hospital Foundation role and main functions
Gold Coast Hospital Foundation helps Gold Coast Hospital and Health Service (GCHHS) achieve the best public health care and health education for the entire Gold Coast community.
Vision Everyone in the Gold Coast community has access to the best health care and health education.
Mission Our mission is to continually improve public health services for the Gold Coast community through health promotion and research, health staff education and the purchase of modern medical equipment.
Strategic objectives 2012-15 • To increase the volume and diversity of courses of funds raised in support of the Gold Coast Hospital and Health Service through the ethical, accountable and transparent fundraising activities; • Supporting good health and excellence in patient care; • Providing state of the art equipment and facilities; • Encouraging and supporting research; • Promoting and supporting education programs; • Active involvement in health promotion; • Encouraging community understanding of and participation in health programs.
What we do and the services we support Together, with the local community, we raise money to improve the health care services and facilities of our local hospital and health service (HHS). We provide funding for health education, medical research (clinical setting and laboratory) and medical equipment projects that add value to existing resources and government budgets.
Foundation activities benefit patients and staff at more than thirty-five Gold Coast Health facilities including, Robina Hospital, Gold Coast University Hospital, Carrara Rehabilitation Centre and numerous community-based health facilities such as those delivering oral health, metal health, post-operative and indigenous health care services.
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 10 We improve health outcomes for patients by:
• Promoting health through positive activities in the community • Purchasing modern medical equipment, with a focus on equipment that would not otherwise be purchased • Funding professional education for health staff • Funding promising research projects in their early stages
Our history The Foundation was established in 1994.
In March 1995, a trust fund – separate but ancillary to the Foundation, was established by a Trust Deed, then known as South Coast Regional Health Authority Foundation Fund.
During our history, our supporters have helped us to donate more than $3 million in medical equipment, research and health education to the Gold Coast community.
Legislation Gold Coast Hospital Foundation operates according to:
• The Hospitals Foundations Act 1982 • The Hospitals Foundations Regulations 2005 • An independent annual financial and operational audit • A requirement to produce an Annual Report detailing operations and financial results. This public document is lodged with the Parliament of Queensland by the Minister of Health.
Tax status On 29 May 1995 the Australian Taxation Office approved our status as a Public Ancillary Fund.
The Foundation is:
• GST Concession effective from 1 July 2005 • Income Tax Exempt effective from 1 July 2000 • Endorsed as a Deductible Gift Recipient effective from 1 July 2000 • Covered by item 2 of the table in Section 30-15 of the Income Tax Assessment Act 1997 • Subject to and compliant with the Public Ancillary Fund Guidelines 2011.
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 11 Non-Financial performance
The year in Review – Foundation Performance
Key objectives and performance indicators of our Strategic Plan 2012-15 and our performance against each are outlined below.
We planned Target Actual Performance Comments/variance to… date outcome measure reporting Invest a 2012/13 No longer Amount of Our new strategy 2014-18 will maximum of required money spent see us instead invest some of $3M in the these funds in a) building the development of capacity and success of the the retail Foundation – in particular our precinct fundraising, marketing and programs resource and performance b) growing our grant disbursements, with a particular focus on increased funding for research projects. Ensure all 2012-13 Achieved Accounting 100% of the money donated money donated procedures to us for a particular area of for a specific reviewed and work e.g. Children, mental health area or improved health, research or a specific facility is Donation piece of equipment is allocated to that source and guaranteed to be allocated to area destination that work. clearly traceable Funds accrued as necessary
Donate $410k to 2012-13 Achieved Amount of Spent $392, 201 and accrued improving public money the remaining $17,799. We healthcare and disbursed will disburse the remaining health education balance to the Hospital and in the Gold Health Service departments Coast to which they’ve been Community pledged to order the equipment
Make 2013/14 Not Amount of As you will see from the disbursements achieved money enclosed accounts for FY 14, of $350,000 for disbursed Disbursements were made research, equalling $229,000. A further equipment and $117,000 in disbursements education were approved but not invoiced and paid for due to GCHHS delays ordering and invoicing the Foundation for agreed medical equipment. We will work hard to receive
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 12 and fund this equipment during Q1 of FY15. Invest $70k in 2012-13 Achieved New Our new database has been database database installed and all historical sourced and data from the past ten years installed has been imported. With a small team and no in-house IT expertise this is a large project that took longer than initially anticipated.
The next step is to cleanse, segment and test this data to identify a core group of Foundation supporters, willing to donate to our annual appeals and campaigns and support our work. Invest $10k in 2012-13 Achieved New Our new IT system was modernising our computers installed late 2012. We are IT systems and server now planning to improve this acquired and system further in FY 14 by operational improving our filing and storage systems, to enhance easier location and sharing of documents across the team and to strengthen security. Change our tax 2012/13 Paused Application We are working with KPMG status submitted to achieve this. This is an important piece of work for Tax status the Foundation. Changing our successfully status will see us deliver changed from increased health promotion ‘Public activities to the Gold Coast Ancillary Community, with a particular Fund’ to focus on Cardiovascular ‘Health health. It is our aim to use Promotion this status to deliver a Charity’ number of significant projects that add value to existing health promotion activities across the Gold Coast Region.
Table 1. Grants and disbursements 2013-14
Education Grants Paediatrics Nutrition and Dietetics education $2,000.00 Attendance at Australasian Society of Parenteral & Enteral Nutrition $1,750.00 Medical endorsement for administering routine injections to $1,480.00 antenatal women with negative blood groups
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 13 2 week lecture course to assist in the studies of diabetes education $2,000.00 and management Attendance at the Immunisation Course $733.00 Attendance at Australia and NZ Eating Disorders Conference $716.50 Attendance at the Mental Health Services Conference $1,714.00 Attendance at Annual Hand Therapy Conference focusing on $1,822.00 Biomechanics of the Upper Limb Attendance at the Artistry of Facilitation course which focuses on $2,000.00 therapeutic group work GCHHS – Training Speech Pathologist $7,677.27 Total $21,892.77
Research Grants Impact of weekly Nursing Round intervention on the quality of care $7,880.00 and critical care nurses perception of the Practice Environment and Work life Satisfaction Evaluating the innovative collaborative efforts of gr8 Start and the $9,786.00 C.H.I.L.D.S Team to address developmental vulnerability amongst Gold Coast preschool-aged children Completing an observation study to assess the impact of combined $9,631.50 malnutrition and surgical delay on patients admitted to GCH with hip fractures. Total $27,297.50
Collaborative Research Grants with Griffith Institute of Medical Health Research Nontypeable Haemophilus Influenzae in Lung Cancer $19,500.00 Improving safety in surgery: implementing the WHO Surgical $18,685.00 safety checklist A retrospective investigation of the histological and molecular $17,777.00 features of the small intestines in chronic fatigue syndrome Anthocyanins: possible antiplatelet alternative for aspirin Resistant $19,836.00 diabetic population Total $37,899.00
Equipment – Children’s Restricted Maternity Ward $500.00 2 iPads for Paediatrics $974.85 Sport equipment - Treadmill $6,863.64 Asante Centre Multidisciplinary Training equipment $11,161.47 Bell & Pad Enuresis Model $3,920.00 Toys for Paediatrics $5,026.60 Wall decals for Paediatrics $327.02 Toys for Children’s Wards $7,848.11 Bilirubin Meter Probe $7,998.00 Newborn Care Unit Outdoor & Indoor Furnishings $5,563.00 Child Youth Mental Music Equipment $1,381.64 Total $51,564.33
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 14 Equipment - Gold Coast Hospital & Health Service Thermometers $2,502.50 Child Youth Mental Health iPod shuffles $4,800.00 Child Youth Mental Health Teen Esteem Manuals $1,796.00 Automated CPR Machine $16,000.00 Stroke Specific Wheelchair $1,000.00 2 x Standing Aids $3,627.27 Portable Ultrasound, Pupilometer, Ultrasound Probe $31,288.33 Mental Health Guide Books $935.65 Bladder Scanner, Portable VRI Machine, 3 Wheelchairs, Aspirators $31,288.33 Total $93,238.08
Health Promotion Cycling and Running kits $1,500
Note: There are a number of disbursements, further to those tabled above, that have been approved, which we await invoices for totalling $117,107. The majority of these items are for paediatric surgical and medical equipment requested as part of the annual Give me 5 for kids Appeal.
Additional achievements
This year we delivered key projects that aim to help raise our profile as a recognised brand on the Gold Coast and most importantly, secure increase support for the delivery of public health care to the community.
These projects include:
• Launch of Foundation Day – a GCHHS staff-focused day that includes a Research and Education Awards ceremony and activities to highlight the role of the Foundation.
• Production of an engaging information leaflet (see image below) for distribution to the community, support, health staff as well as patients and their families via patient discharge packs, events and a downloadable version on our website.
• Further development of our engaging Case Study posters and installation of these across several HHS facilities.
• Establishment of a social media presence – we have put time into regularly engaging with the community through a new Facebook page, which has grown from having 20 Likes to 400 in 12 months. This is an important place for us to share our achievements, activities and events.
• Production of two short films; one providing a general overview of our work and one highlighting the value of donations. Both are hosted on our Facebook site, YouTube and website and linked to the websites of various corporate partners.
• Development of a comprehensive 12-month sponsorship and event prospective – providing information on key sponsorship opportunities for the local business community. This resulted in sponsorship more than doubling as compared to FY 13.
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 15 • Annual Gala in August 2013 – This event, attended by 408 guests raised just over $80,000 for our work, celebrated the opening of the new Gold Coast University Hospital and highlighted our cause. It is our aim that this Gala Dinner will become our annual signature event and a significant fundraiser.
Image: New Foundation Information Leaflet – helping to share our work with health staff and patients
Looking forward – plans for 2014/15 and beyond
Our 2014 strategic review resulted in a new aspirational 5-year Strategic plan and budget being developed and endorsed by the Board.
The strategic themes of the new strategy are threefold: 1. Health promotion 2. Sustainable future 3. Governance
The strategic objectives of the new strategy include: 1. Health promotion in the community – align GCHF health promotion with GCHHS plans, deliverables, education and Qld Health priorities. 2. Grow program activity – By 30 June 2015 GCHF grants represent at least 80% of normalized net surplus (net surplus = net profit before distribution of grants). Direction of restricted funds to the projects for which they were raised. 3. Secure public support – GCHF recognised as the best known charity and considered as, ‘the charity of choice’ on the Gold Coast. 4. Revenue growth – Seek and secure commercial revenue opportunities. By 31 July 2014, develop a clear business case for receiving commercial revenue. Deliver an ambitious 5-year fundraising strategy that significantly grows our philanthropic revenue.
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 16 5. Cost management – By 30 June 2017 fundraising and administration costs will be maintained at a level so as to enable maximum distribution of net surplus. 6. Recruit and retain talented staff – By 30 June 2015 GCHF has a staff with the appropriate skills and experience to deliver the strategic objectives. 7. Operate distinct revenue and cost centres – Create individual revenue and cost centres in order to measure the planned outcomes/productivity of costs incurred, including new resources. 8. Experienced Board of Directors – The Board of GCHF continues to comprise individual committed and engaged to our strategic direction with a combination of skills and experience to deliver the strategic objectives.
From this strategy a 12-month Operating plan has been developed and adopted.
Brand awareness There is so much opportunity in the coming years for the Foundation to take a more prominent role in the Gold Coast Community by engaging new audiences and further inspiring those that already know about us. Despite our 20-year history, our brand and work is not as prominent in the Gold Coast community as it could be.
We are confident that with the help of the community and visitors to the region we can make a greater impact on the health outcomes of patients accessing Gold Coast health services.
We will put much energy into publicising our new brand in a way that builds a greater understanding of, and empathy for the work that we do. We will focus on activities that engage health staff; patients, their families and visitors; and the wider community. To begin this process we will recruit a Marketing and Communications Manager to take our internal and external communications, media relations and marketing activities forward. We envisage that this new role will commence by September 2014.
Income plans A new 5-year fundraising strategy 2014-19 has been drafted and endorsed by the Board. Essentially this strategy outlines goals to significantly grow our fundraising income to in order to deliver the aspirations, goals and targets of our new organisation strategy 2014-19. Over the next five years our fundraising activities seek to significantly grow donations from individuals. We have a lot to do to achieve these plans; including recruiting and retaining a skilled and experienced fundraising and marketing team and we understand that securing a robust fundraising base requires investment and time. In essence our fundraising strategy will see the team focus their energy on: • Individual giving – regular giving and annual appeals • Major Gifts, including corporate donations • Establishing a bequest and legacy program In addition, it is recognised that developing a successful major gifts program will rely heavily on the ability and willingness of our Board to identify potential donors, introduce the fundraising team to them and support the Asking process.
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 17 Board of Trustees Gold Coast Hospital Foundation has a board of voluntary (non-renumerated) members who met monthly throughout the year to guide and review the strategic direction and activities. These members represent health services, university education and the wider community.
During the year 2013 – 2014 a total of meeting twelve Board meeting were held and attendance by members is outlined below.
Type of Term of Expires Reason for Eligible to Name Attended appointment office appointment attend Gary was Gold Coast Mayor for a total of 6 years and was also councillor for Surfers Gary Paradise and Deputy 12 11 Baildon Chairman 4 years 18-Nov-14 Mayor. Gary is Chairman of numerous Boards on the Gold Coast Wayne is a qualified chartered accountant Wayne Vice- and a member of the 12 10 Hunt Chairman 4 years 18-Nov-14 ICA. In addition he is also a Commissioner for Declarations. David has a Bachelor of International Finance, is a member of the ICA, holds his certificate of public ***David practice and is a Van 12 4 Treasurer 4 years 18-Nov-14 registered tax agent. Herwaarde David has his own investment company and was a partner at KPMG Australia for 6 years. Naomi has a Bachelor of Business, Graduate Certificate in Management and a Masters of Law. Naomi *Naomi Secretary NA – MoH appointment has leadership and 12 5 Dwyer management experience in government, health and higher education sectors. Kenneth Brown has been the Deputy Chair Appointed as of the Gold Coast representative of the Hospital and Health Board Chairperson of Gold Service since its Member Coast Hospital and establishment in July Kenneth Health Board 2012. He is a member 12 11 Brown of Queensland Health Audit Committee, is a qualified accountant and had a long career in "health administration”.
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 18 Dr Withers is a graduate of the University of Queensland. She Dr. Teresa Board 3 years 21-Dec-15 commenced her 12 8 Withers member medical career at the Royal Brisbane Hospital and entered general surgical training in 1991. Shirley has a Bachelor of Biomed Science and a Diploma in Dr. Shirley Board Applied Science along 12 12 Wee member 4 years 18-Nov-14 with a Graduate Certificate in Research Management.
Colette McCool is a senior executive with 20 years public sector management experience at senior Colette Board 4 years 18-Nov-14 executive level. 12 8 Mc Cool member Collette is Deputy Chairperson of RDA Gold Coast and Director of the Gold Coast Hospital Foundation. **Prof. Lyn Board 3 years 21-Dec-15 12 2 Griffiths member John Fradgley has practised as a solicitor on the Gold Coast since 1977 as a partner in Bell Legal Mr. John Board 4 years 18-Nov-14 Group. He has a 12 9 Fradgley member wealth of experience in general advice to business, commercial property development and conveyancing Helen worked for over 16 years on various committees in the Gold Coast Greek Community. She is currently Vice Helen Board 3 years 21-Dec-15 President of the Ladies 12 9 Raptis member Auxiliary. Helen has served on the Multicultural Committee of the Gold Coast and Australian American Association.
* Naomi Dwyer stopped attending Board meetings in March 2014, when she left GCHHS to take up a new role in South Australia. ** Prof. Lyn Griffiths resigned from the Board in August 2013 after accepting a new role that would no longer see her be able to perform duties as a board member.
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 19 *** David Van Herwaarde took a leave of absence from the Board due to conflicting work commitments in January 2014.
Committees Executive Committee: Gary Baildon, Chairman, Wayne Hunt, Vice Chairman, David Van Herwaarde, Treasurer
Finance Committee: Gary Baildon, Chairman, Wayne Hunt, Vice Chairman, David Van Herwaarde, Treasurer
Risk is monitored and managed by the Executive Committee consisting of four board members: the Chairman, Vice-Chairman, Treasurer and legal advisor.
The Board has approved three new sub-committees, which will become operational at the beginning of FY 14. They are:
1. Finance and Risk 2. Programs 3. Fundraising and Marketing
During this financial year an internal audit, additional to the function of our monthly board meetings, treasurer’s report and executive meetings, has not been carried out. This is due to the fact that the Foundation’s operations and team and therefore risks were deemed too small to warrant this activity.
Personnel of the Gold Coast Hospital Foundation for the year 2013-2014 1) Workforce planning, attraction and retention, and performance
There have been a number of team changes throughout the year as we seek to secure the right skills, culture and structure to achieve our strategy and future success, which includes a growing focus on professional fundraising and marketing.
We are confident that our growing team shares our Mission, Vision and passion for health care and is doing all the things required to set us on the right path to achieve revenue growth and enhanced community awareness of our work and brand. We have a comprehensive recruitment, retention and performance management system in place and our strategic objective of ‘Recruiting and retaining the best staff’ reflects our commitment to this.
As at 30 June 2014 the Foundation team consisted of 3.2 FTE staff. The permanent separation rate was 31% at 30 June.
Organisation structure:
The Chief Executive Officer (1 FTE), Kim Sutton, is responsible for the day-to-day operations of the Foundation and for ensuring activities are conducted under the Financial Management Practice Manual and Operations Manual and for implementing the longer-term plans as decided by the Members.
Assisting the Chief Executive Officer are two full time team members and a part-time contractor:
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 20 • Relationship Manager (Fundraising), Emma Wills, Emma is responsible for raising funds from Individuals and organisations and groups. Emma commenced post on 5 May 2014. The Relationship Manager role is a new post, replacing the previous role of Partnerships Manager, which was active from 1 July 2013 to 6 February 2014 and held by Christopher Braat.
• Foundation Assistant (Administrative Officer), Lisa Hennessey. Lisa is responsible for supporting the daily running of the Foundation including reception and office duties, correspondence, financial support, fundraising and events admin support.
• Recognising the specialist book-keeping and accounting skills required to maintain our financial records we employed a part-time contracted finance officer, Sabine Ogle in July 2013. Sabine provides support to the team on a four to six days per month basis - preparing our monthly accounts and Board reports, quarterly BAS returns, runs our payroll and prepares our accounts for our annual audit.
2) Early retirement, redundancy and retrenchment.
No redundancy/early retirement packages were paid during this period.
Public Sector Ethics Act
The Foundation team, volunteers and board members adhere to a written Code of Conduct, which is shared at the point of joining the Foundation team via staff member contracts, the Employee Handbook and the Board Member Handbook.
From August 2014 the Foundation CEO will work with the Foundation Board to undertake a significant policy and legislation project to review, update and implement a full set of Foundation Policies and procedures that satisfy the requirements of a Public Sector Agency.
Information systems and record keeping As mentioned in our FY 13 Annual report during 2012 and 2013 the Foundation implemented a new database and new computer and storage systems. This project has allowed us to improve our systems for storing information and data, improve performance and ensure the Foundation’s retention and disposal program complies with the Public Records Act 2002, Information Standard 40: Record keeping and Information Standard 31: Retention and Disposal of Public Records.
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 21 Financial performance
Treasurer’s report 23
Annual financial statements From page 25
Independent audit report From page 22 of financial statements
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 22 Treasurer’s report
Results from operations The Foundation’s operating results (prior to grants and disbursements) was $366, 676 compared to an amount of $443,317 for the previous year. This allowed the Foundation to distribute $229,600 in grants during the year leaving a post distribution surplus of $137,076. This result has been materially affected by the Foundation taking the decision to “gear up” the operations by taking new office facilities at the Gold Coast University Hospital and the engagement of further full time staff members, both of which will, in accordance with our strategic plan produce economic results in future years. Additionally, revenue from interest income from invested funds reduced significantly as a result of declining investment returns on secure deposits.
Revenue Total revenue for the year of $1,061,398 was up from $1,022,098 for the previous year. Fundraising revenue increased by 26% from the previous year however income from interest income on investments in term deposits (as referred to above) reduced by 26% from that source of income in the previous year.
Operating expenditure The Foundation separates the costs of operations into 3 categories: 1. Costs directly associated with the Fundraising activities, such as; prizes, advertising, marketing, distribution and administration; 2. Employment Expenses 3. Other General Expenses
Fund raising costs for the current year amounted to $304,199 compared with $341,354 for the previous year. This is significant given the increase in fundraising income for the year.
Employment Expenses for the current year amounted to $287,690 compared with $168,458 for the previous year. This increase is the direct result of the engagement of additional full time staff members.
Other general Expenses for the current year amounted to $83,485 compared with $59,159 for the previous year. This increase is consistent with increases in revenue and employment costs for the year.
Disbursements, Grants and Donations During the year an amount of $229,600 was disbursed on Research Grants, Educations Grants, Equipment, Collaborative Research Grants and various Awards. This compares with an amount of $370,666 in the previous year. Further disbursements had been approved by the board prior to balance date however the relevant and required documentation had not been received by the Foundation from recipients as of balance date which did not allow such disbursements to be made until after balance date.
Balance Sheet The Foundation continues to maintain a strong Balance Sheet. As of balance date Cash and Cash Reserves were $4,651,990 increased from $4,446,405 at the end of the previous year.
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 23
Trade and Other Payables amounting to $104,122 as at balance date consisted primarily of Grants and Disbursements not disbursed and Employment Related Accruals.
Fiduciary Duties, Governance and Financial Management. The finance team prepare detailed financial information to present to the Foundation Board on a monthly basis. The Treasurer’s Report for each meeting contains detailed information on expenditure, receipts, grants and disbursements, bank reconciliations, asset balances, liability balances and expenses tabled for approval.
The Foundation continually undertakes review of the financial management practices and makes adjustments and improvements to the policy and procedures of the finance department under its continuous review and improvement strategy.
Financial Stability The Foundation continues to maintain its strong Balance Sheet with the significant portion of its assets held in lower risk term deposit investments across several banking institutions.
The Foundation will continue to benefit significantly from the opening of the new Gold Coast University Hospital and anticipates having the capacity to invest further into the Gold Coat Health system by way of disbursements, grants and donations in the future.
Wayne H Hunt CA Acting Treasurer
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 24
Appendices Glossary GCHHF – Gold Coast Hospital Foundation GCHHS – Gold Coast Hospital and Health Service GCHSD – Gold Coast Hospital and Health Service District GCUH – Gold Coast University Hospital
Compliance Checklist Annual Summary of requirement Basis for requirement report reference
Letter of • A letter of compliance from the ARRs – section 8 Page 2 compliance accountable officer or statutory body to the relevant Minister
Accessibility • Table of contents ARRs – section 10.1 Page 1 • Glossary Page 50
• Public availability ARRs – section 10.2 Page 1
• Interpreter service statement Queensland Government Page 1 Language Services Policy ARRs – section 10.3
• Copyright notice Copyright Act 1968 Page 1 ARRs – section 10.4
• Information licensing Queensland Government Page 1 Enterprise Architecture – Information licensing ARRs – section 10.5
General • Introductory Information ARRs – section 11.1 Page 10 information • Agency role and main functions ARRs – section 11.2 Page 10&11
• Operating environment ARRs – section 11.3 CEO report Page 5&6
• Machinery of Government changes ARRs – section 11.4 CEO report Page 5&6 Chairman’s report Page 3&4
Non-financial • Government objectives for the ARRs – section 12.1 CEO report performance community Page 5&6
• Other whole-of-government plans / ARRs – section 12.2 CEO report specific initiatives Page 5&6
• Agency objectives and performance ARRs – section 12.3 Page 10, 12 indicators &13
• Agency service areas, service ARRs – section 12.4 Page 10 - 15 standards and other measures
Financial • Summary of financial performance ARRs – section 13.1 Page 23 & 24 performance • Chief Finance Officer (CFO) statement ARRs – section 13.2 Page 23
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014 Annual Summary of requirement Basis for requirement report reference
Governance – • Organisational structure ARRs – section 14.1 Pages 20 - 21 management and structure • Executive management ARRs – section 14.2 Pages 18 - 20
• Related entities ARRs – section 14.3 N/A
• Boards and committees ARRs – section 14.4 Page 18 - 20
• Public Sector Ethics Act 1994 Public Sector Ethics Act 1994 Page 21 (section 23 and Schedule) ARRs – section 14.5
Governance – risk • Risk management ARRs – section 15.1 Page 20 management and accountability • External Scrutiny ARRs – section 15.2 N/A
• Audit committee ARRs – section 15.3 N/A
• Internal Audit ARRs – section 15.4 N/A
• Public Sector Renewal Program ARRs – section 15.5 N/A
• Information systems and recordkeeping ARRs – section 15.7 Page 21
Governance – • Workforce planning, attraction and ARRs – section 16.1 Page 16 & 17 human resources retention and performance
• Early retirement, redundancy and Directive No.11/12 Early Page 21 retrenchment Retirement, Redundancy and Retrenchment ARRs – section 16.2
• Voluntary Separation Program ARRs – section 16.3 N/A
Open Data • Open Data ARRs – section 17 Page 1
Financial • Certification of financial statements FAA – section 62 Page 21 of statements FPMS – sections 42, 43 and 50 financial statement ARRs – section 18.1
• Independent Auditors Report FAA – section 62 Pages 22-23 FPMS – section 50 of financial statements ARRs – section 18.2
• Remuneration disclosures Financial Reporting Page 14 of Requirements for Queensland financial Government Agencies statement ARRs – section 18.3
FAA Financial Accountability Act 2009 FPMS Financial and Performance Management Standard 2009
ARRs Annual report requirements for Queensland Government agencies
Gold Coast Hospital Foundation Annual Report and Financial Statements 2014