Finance and Governance Report 2015 - 2016
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We’re your compass through cancer 13 11 20 Finance and Governance Report 2015 - 2016 For support and information on cancer and cancer-related issues, call Cancer Council 13 11 20. This is a confidential service for the cost of a local call. Cancer Council Western Australia Level 1, 420 Bagot Road Subiaco WA 6008 T: +61 8 9212 4333 F: +61 8 9212 4334 Supporter Hotline: 1300 65 65 85 www.cancerwa.asn.au Join our community Bringing the defeat of cancer closer Financials Contents Statement by the Board Statement by the Board 2 In the opinion of the Board of Cancer Council Western Australia Inc. (the Council): Independent Auditor’s Report 3 1. The accompanying financial report gives a true and fair view of the financial position of the Council as at 30 June 2016 and its performance for the financial Statement of Comprehensive Income 5 year ended on that date, in accordance with Australian Accounting Standards Statement of Financial Position 6 (including the Australian Accounting Interpretations) and the Charitable Collections Act 1946 of Western Australia; Statement of Changes in Equity 7 2. The operations of the Council have been carried out in accordance with the Statement of Cash Flows 8 Constitution and Rules of the Council; and Notes to the Financial Statements 9 3. At the date of this statement there are reasonable grounds to believe that the Council will be able to pay its debts as and when they become due and General Information payable. The financial statements cover Cancer Council Western Australia Inc. as an individual entity. The financial statements are presented in Australian dollars, which Signed in accordance with a resolution of the Board by: is Cancer Council Western Australia Inc.’s functional and presentation currency. The financial statements were authorised for issue on 21 September 2016. George Yeoh President Pina Caffarelli Chair Finance Committee 21st day of September 2016 1 Cancer Council Western Australia Finance and Governance 2015-16 2 Financials Independent Auditor’s report Independence In conducting our audit, we have complied with the independence requirements of the Australian professional accounting bodies. Basis for Qualified Opinion Fundraising and donations are significant sources of revenue for the Council. The Council has determined that it is impracticable to establish control over the collection of fundraising and donations prior to entry into its financial records. Accordingly, as the evidence available to us regarding revenue from these sources was limited, our audit procedures with respect to fundraising and donations had to be restricted to the amounts recorded in the financial INDEPENDENT AUDITOR’S REPORT records. We therefore are unable to express an opinion whether revenues from fundraising and donations are TO THE MEMBERS OF complete. CANCER COUNCIL WESTERN AUSTRALIA INC. Qualified Opinion We have audited the accompanying financial report of Cancer Council Western Australia Inc. (the “Council”), In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, which comprises the statement of financial position as at 30 June 2016, the statement of comprehensive income, the financial report presents fairly, in all material respects, the financial position of the Council as at 30 June 2016 statement of changes in equity and statement of cash flows for the year ended on that date, notes comprising a and its performance for the year then ended in accordance with Australian Accounting Standards and the summary of significant accounting policies and other explanatory information, and the statement by the board. Charitable Collections Act 1946 of Western Australia. Board’s Responsibility for the Financial Report The Board of the Council is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and the Charitable Collections Act 1946 of Western Australia, RSM AUSTRALIA PTY LTD and for such internal control as the Board 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 Perth, WA TUTU PHONG Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in Dated: 21 September 2016 Director 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 about 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 and fair presentation of the financial report 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 Board, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 3 Cancer Council Western Australia Finance and Governance 2015-16 4 Financials Statement of Comprehensive Income Statement of Financial Position Note 2016 $ 2015 $ Note 2016 $ 2015 $ REVENUE CURRENT ASSETS Fundraising and donations 9,972,129 11,623,257 Cash and cash equivalents 6 3,077,756 2,880,990 Bequests 16(a) 1,898,677 3,359,673 Trade and other receivables 7 2,814,032 1,565,617 Merchandise 4 1,001,710 1,081,288 Inventories 8 99,372 90,984 Cancer information and support services 2,650,943 2,545,347 Other assets 9 3,894,010 246,018 Research 15,000 18,000 Financial assets 11 599,450 3,848,317 Education and prevention programs 2,366,123 2,249,538 TOTAL CURRENT ASSETS 10,484,620 8,631,926 Tobacco program 2,994,694 2,703,647 Investments 1,708,900 2,428,156 NON-CURRENT ASSETS Other revenue 2,500,311 326 Property, plant and equipment 10 25,521,508 26,482,828 Total Revenue 25,108,487 26,009,232 Financial assets 11 31,731,823 34,076,405 TOTAL NON-CURRENT ASSETS 57,253,331 60,559,233 EXPENDITURE TOTAL ASSETS 67,737,951 69,191,159 Fundraising and donations (4,959,554) (5,231,335) Merchandise - cost of goods sold 4 (339,637) (415,589) CURRENT LIABILITIES Merchandise - operating 4 (227,345) (244,340) Trade and other payables 12 19,692,645 13,764,875 Cancer information & support services (7,201,399) (6,897,754) Borrowings 13 1,539,858 5,239,858 Research 15(a) (3,842,690) (3,752,612) Provisions 14 1,290,916 1,189,011 Education and prevention programs (4,389,512) (4,217,566) TOTAL CURRENT LIABILITIES 22,523,419 20,193,744 Tobacco program (3,294,694) (3,013,647) Directorate (431,357) (394,783) NON-CURRENT LIABILITIES Cancer Council Australia subscription (949,727) (863,144) Borrowings 13 66,430 109,609 Administration (1,857,306) (1,830,286) Provisions 14 264,817 193,411 Investments (122,150) (200,798) TOTAL NON-CURRENT LIABILITIES 331,247 303,020 Total Expenditure (27,615,371) (27,061,854) TOTAL LIABILITIES 22,854,666 20,496,764 (DEFICIT) FROM OPERATIONS (2,506,884) (1,052,622) NET ASSETS 44,883,285 48,694,395 NON OPERATIONAL ITEMS ACCUMULATED FUNDS Impairment of available-for-sale financial assets 5(c) (925,969) (223,451) Restricted by statute Profit on sale of non-current assets 5(d) 638,720 1,820,122 Land and buildings - Shenton Park and Nedlands sites 10 7,593,737 8,064,888 Non Operational (Deficit)/Surplus (287,249) 1,596,671 7,593,737 8,064,888 (DEFICIT)/SURPLUS BEFORE INCOME TAX (2,794,133) 544,049 Designated by Council Property held in trust 10 400,000 400,000 Income tax expense - - Property, plant and equipment 10 17,527,470 18,017,940 (DEFICIT)/SURPLUS AFTER INCOME TAX EXPENSE FOR Research grants 15(a) 2,933,695 2,679,365 THE YEAR (2,794,133) 544,049 20,861,165 21,097,305 OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET TOTAL RESTRICTED AND DESIGNATED FUNDS 1(a) 28,454,902 29,162,193 OF TAX UNRESTRICTED FUNDS 1(a) 9,711,604 11,798,446 Items that may be reclassified subsequently to surplus or deficit Net movement on revaluation of financial assets (1,016,977) (109,318) Financial assets reserve 6,716,779 7,733,756 TOTAL OTHER COMPREHENSIVE INCOME (1,016,977) (109,318) TOTAL ACCUMULATED FUNDS 44,883,285 48,694,395 TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR (3,811,110) 434,731 The accompanying notes form part of these financial statements The accompanying notes form part of these financial statements 5 Cancer Council Western Australia Finance and Governance 2015-16 6 Financials Statement of Changes in Equity Statement of Cash Flows Restricted & Unrestricted Financial Total Note 2016 $ 2015 $ Designated Funds Assets Accumulated Funds Reserve Funds CASH FLOW FROM OPERATING ACTIVITIES $ $ $ $ Receipts from operations 26,075,784 24,169,899 Balance at 1 July 2014 12,131,052 28,285,538 7,843,074 48,259,664 Payments to suppliers and employees (27,707,066) (24,660,075) Interest and finance costs paid (53,519) (231,834) Surplus/(deficit) after income tax expense for 17,031,141 (18,083,763)