MCGARVIE SI\,fl TH INSTITUTE

A]\'NUAL REPORT FOR TIIE YEAR EIIDEI) 30 JLINE 2020 MGGARVIE SMITH INSTMUIE

A]\INUALREFORT FORTIM YEARENDE.I) 30 JrrNE 2020

CONTENTS

Prge

Trustees'Report 2

Ind€pendent Auditor's Report 3

L€ad Auditor's Independence Declamtion Under Section 307C ofthe Corporations Act 2fi)l 5

IDcome Statement 6

Balance Sheet 9

Cash Flow Starement l0

Notes to the Financial Statements

The financial reTort covers Mccarvie Smith Itrstitute as an individual entity- The finarcial r€port is presented in the Australian cur€ncy.

The finarcial rcport was authorised for issue by the tustees on 14 December 2020. The Trust has the power to arend and reissue the financial report McGARVIE SMITH INSTITUTE

TRUSTf,ES'Rf,PORT

For the year ended 30 June 2020, the Trustees' report the following:

l. ,- The Trustees reaffrm the policy of making available the mrximum fimds to ap,propriate research projecs whilst collaterally maintaining a capital base at a level above the rate of inflation. Grants approved this year of $63,410 were directed to research in the following areas: . University ofsydney for an Honours Scholanhip. . Universrry of Sydney for a developing an affordable and effective food gmde oral vaccine for livestock. . University of Sydney for research into host pathogen interactions associated with Q fever and; . University of Sydney for the snrdy on the prevalence and impact of chronic benign footrot in New South Wales.

b. The marurity dares ofthe Institute's cash investrnents have been staggered over the medium term while sufficient short term inyestrnents will cover forthcoming commitments and anticipated research applicatiors.

2. With respect to the Financial Report of the lnstitute: a The results of the Institut€'s operations for the year covered by the Income Statement have not been rnaterially affected by items ofal rmusual character. b. Due to the impact ofCovid-19 the market value of non-current Financial Assets has fallen below the carrying cost of the assets as at 30 June, 2020 however at the date of preparation of the Annual Report the market value of the investuents had recovered to be in excess of the carrying cost shor.m in the Financial Statements. c. There are no commitsnents which will become enforceable within the succeeding period of twelve months which will materially affect the Institute in ils ability to meet its obligations as and when they fall due. d. Current assets will realise values at which they are shown in the Statement of Financial Position. The lncome Statement of the lnstitute is drawn up so as to present fairly the results of the business of ttre Institute for the year covered by the Financial Report aad the Balance Sheet is drawn tp so as to present fairly the state ofaffairs ofthe Institute at the end ofthe year.

By and on Behalf of the Trustees

,4(&""-- ebinhhn of Yrustees

Sydney oa : /f )o..*-, 2.*,

PrgtE 2 3aker ialicr Ptr L In iec '-e,/ei i3.3:l lrolnt Sareei Qcdh SlrCre, NSW ?C6[ BAKE R . TAYLOR :O 3cx B:,lC rlcrul SlireY 2rlts SERVICES ACCOUNTTNG & BUSt NISS ri't 2 7!12ZaCi

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IT{DEPENDENT AUDITOR S REPORT TO THE TRUSTEES OT THE McGAME SMITH II{STITUTE

Scope

The lnanciol report and Fustees' resqonsibility Thi financial report comprises ttre income statement, bdance sheef, statement of changes in equity, cash flow statement, accompanying notes to the fiBancial statements for The Mc{arvie Smith tnstitute (the Trusfl, for tfle year ended 30 lune 2020.

The trustees ofthe Trust are responsible for tie preparation and mre and fair presentation ofthe financial report ill accordance with the Mccarvie Smith Institute lncorporation Act 1928' This inctudes responsibility for the maintena[ce ofadequate accounting records and internal Controls drat are de;igned to preveut and detect tsaud and error, and for tJIe accounting policies and accountilg estimates ilherent in the Enancial report

Audit approach We have conduaed al independent audit in order to express an opinion to lie trustees of the TrusL Our audit was cooducted in accordance with AusEalian Audidng Staldards in order to provide reasonable assurance as to whether the financial report is free of material misstatemenL i'he nature of an audit is influenced by factors such as the use of professional iudgement, selective testin& tlre inhereut limitations of interoal control, and the ayailability of persuasive rather than conclusive evidence. Thereforq an audit cannot guafir[tee dlat all material misstatements have been detected.

we performed procedures to assess whether itr all maErial respects the financial report presents fairly, a view which is consistent with our understanding oftte Trust's fiBancial positiorl and of its performance by the results of its operations and cash flows.

we formed our audit opinion on tie basis of these procedures, which included:

. examining on a test basis, information to provide evidence zupporting the amounts and disclosures in the financial report, and

o assessing the appropriateness of tlle accounting policies aDd disclosures used and the reasonableness of significant accoutrting estimates made by the directors.

While we considered the effectiveness of management's conEols over fiMncial reporting when determising the natrre and extent of our procedures, our audit was trot designed to provide assuralce on internal controls.

l-ndependence ln conducting our audit $,e followed applicable independence requirements of Australian professional ithical p.onounc"otents a,,d t1e Corporations Act 2001. we confirm tJrat our independence stabrs is that as indicated in our Auditot'2s Independence Dedaration dated 27 November 2020

A8t\t 69 oga 254 566 Liebility lmned by a $ir€me approved und.. prol6iffil 3landads legisblon' @ n*x*$.:.I$Y,Lg,.$

&dfto0&n f" -r ipioi"u tle Enaacial Eport Prlseffi trtdy in accordance with rie McGarvie $rfth nsture inorporatim 1ct, fszs and o{i€r mnrtamry proHonal r€porti88 r€quireDcrG, tte fimadat psitto:r of Uccarvie Sdri lEstiurta as et 30 tum 2020 ald its perfurnance for lte year rten andad. //fr*r{*/*

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Aax 0$4258 5s6 Lbiftyffi byat rEtl. *C.ovtd u!d. p.oh6btt l tndid. lled.Dofl Saker Taylo. PtY Limited Level13, S3ltount Street North Sydney NSW 2060 BAKE R. TAYLOR PO gox 6140 No.th sydney 2059 ACCOU N rt Nc & iuslNlss StlvlcEs . +61284122604 e [email protected] ,, bakertaylor.com.au

AT'I'ITORs II{DEPEI{I'EI{CE DECI.TXATION UI{I'ER SECTTO 3OTC OF THD CORFONAflOI{S ACT ZOO1

To tfte Trustees of Mc{arvie Smlth lnsdtrter

year I declar€ tllat to the b€st of my loowledge ard belie[, in relation to tte audit for the fimncial ended 30 Jun€ 2020 there has been:

no contravendons of the auditor i[d€pendence requiremerts as set out ln ihe Corporatiors Act 2OO1 irl relstion to dre audiq and

no cootraventions ofany applicable code ofprofessioral conduct in r€latiotr !o tle audlL ,/e*'{*/^-

B.ker Taylor Pty LiEid AIan Baker Charterd Accountun's Dit"ctor

Norrh Sydney I)atd 27 NoYeDherzozo

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,AI: 69 oss 25a 566 Li$dit [mit d bv . r-h€iB +pov€d u.xd ptol*irx'd ldairrfib bgirhti@' MCGARYIE SMITH INSTITUTE

INCOME STATEMENT FOR TIIE YEAR EI\DED 30 JI'IIE 2O2O

Note 2020 2019 INCOME $ s

Inter€st Rec$ived AMP 13286 13,651 ATO 150 67 2,006 DDH Graham - Money Mark€t Account 125 63 ME Bank Term Deposits 2,13t AMP Business Saver 5,786 ING 18,654 n27; Macquarie Cash Management Accormt 954 1,795 Suncup Bank 4 Macquarie Bank Term Deposits r274 u36f 3,855

Distributions from Trusts Perls VI 4,m2 5,9U 49O2 s964

Dividends Received Aust'alia and New Zealand Banking Groq Limited 7,m7 7,W7 BHP Billiton Limited 7,825 67,950 Coles Grorp 2,M7 of 17,990 17,90 Challenger Limited { 1r( s32s Estia Health Linited 4,W 5,867 Jmus Henderson Grorry Plc 8,034 7,516 Narional Ausralia Bank 6ls4 7,698 Pendal Grory 4,725 13,608 Perpeuul Limited I,978 2279

Prg.6 IIICGARYIE SI\IITE INSTITUTE

INCOMESTATEMENT FOR TIIE YEAR ENDED:MJI,]}IE 2O2O (Continued)

Note 2020 2019 $ $

WAM Capital Limit€d 11,62s 11,625 Wesfrrmem Limited 4,827 10,096 WesQac Benking Corporation 5,557 19,588 Woodside Petoleum Limited 4547 6,663 Woolworths Limited 3,331 22,699 97.m.2 205a8rr Other Income Refirnd oflmputation Cr€dits Cun€nt Year 37,912 82,930 Profit on SaIe ofNon-Current Assets 37912 12930 TOTALINCOME tu2t2 329,X| EXPENSES Audit and Accountancy Fees 12,000 12,525 Iovestmeot Advice n2t2 10,803 Secretarial Fees 23,500 22,500 Sun&y Expenses 1,t62 1270 Trustees' Fees 3,368 3,368 st2A2 50,ffi Other Erpenses I-oss on Sale of Non{urent Assets 57,039 5W39 TOTALEXPEIISES sl242 r(r750s

OPERATING PROTTT t32970 n2,05t6

The above income statement should be read in coniunction with the rccomprnying notes.

Pee 7

McGARVIE SMITH INSTITUTE

INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2020 (Continued)

Note 2020 2019 $ $

OPERATING PROFIT BROUGHT FORWARD 133,845 222,056

LESS: RESEARCH GRANTS University of Sydney - 2019 Honours Scholarship (5,000) - - Host pathogen interactions associated with Coxiella burnetii (15,000) - - Effective food-grade oral vaccine for livestock (33,410) (36,060)

- Prevalence and impact of chronic benign footrot in NSW study (10,000) (10,000) - Tritchomonas project - (5,000) University of the Sunshine Coast - Return of unspent funds 12,750 - NSW Department of Industry

- FMD Real Time Training - (3,520) TOTAL RESEARCH GRANTS (50,660) (54,580)

NET PROFIT 82,310 167,476 Retained Profits at the Beginning of the Financial Year 3,257,788 3,090,312 RETAINED PROFITS AT THE END OF THE FINANCIAL YEAR 3,340,098 3,257,788

The above income statement should be read in conjunction with the accompanying notes.

Page 8 MCGARVIE SMIIII INSTITUTE

BALAIICE SIIEf,T AS AT 3{I JT]IIE 2O2O

Note 20:n 2019 $ $ CI,JRRENTASSETS Cash and Cash Equivalents J 359,6s 24s,@2 Receivables 4 43pt7 83,688 Finarcial Assets 5 1,301,441 1,308,689 TOTAL CI'RRENT ASSETS tJu,t23 1,6J7,469

NON{I]RRENT ASSETS FinaDcial Asse{s 1,952441 1,937,060 TOTAL NON{I,]RREI\IT ASSf, TS 1,9s2441 r937,060 TOTAL ASSf,TS 3,6sG554 3,574,529

CIJRRENT LIABILITIES Payables 12,37 5 12,650 TOTAL CI,JRRENT LIABILITIES 12,37 5 12,650 TOTAL LIABILITIES 12,375 12,650 I{ETASSETS 3,644,1t9 3,55tS79

IRUSTCAPITAL Reserves 304,091 3U,091 Retained Prcfits 3J40,098 3257,788 TOTAL TRUST CAPITAL AIID R.ESERYES 3,644,19) 3561,879

The ebove income stetement should be reod in conjunction with lhe eccompalying notcs.

Prg.9 MCGARYIE SIIIITH INSTITUTE

CASII FLOW STATEMENT FOR TEE Yf,AREIIDED 3OJT]I\IE 2O2O

Note 2020 2019 $ $ CASH TLOWS FROM OPERATING AC]TIVTIIES Interest, Dividend and Trust Distributions Received 229234 334,727 Cash Payments in the couse ofoperations (55,863) (s3,676) Grants Paid (50,660) (54,580) Net Cash Provided by Opereting Activities 9ii t22,711 226,471

CASII FLOWS FROM IITYf,STING ACTTVTIIES Proceeds from Investuents - 4437 PaymenB for Investments (8,1s8) (37A47) Net Cesh Used in lay€sting Activities (8,158) (33,010)

IIET INCREASE(DECREASE) IN CASH HNLD 114,553 t93A6r Cash at the Beginning ofthe Financial Year 245 ,353 5t ,892 CASH AT TEE EIID OF TIIE FINAIICIAL YEAR 9i 359,m6 245,353

The above cash flow statement should b€ read in conjunction with the accompanying notes

P.gr lO McGARVIE Slt[TH INSTITUTE

NOTES TO TIIE FINA}ICIAL STATEMENTS FOR THE YEAR EI\'DED 30 JT'AIE 2O2O

1 BASIS OF PREPARATION

The financial report is a special purpose fmatrcial report prepared to satisfy the financial report preparation requiremens of the McGarvie Smith Institute lacorporation Act, 1928. The trustees have determined that tle company is not a reponing entity.

McGarvie Smith Institute is an entity limited by shares, incorporated and domiciled in Australia-

The financial statements were approved by the Trustees on 4 December 2020.

Besis of Preparation The report has been prepared in accordance with the requirements of the McGarvie Smift Institute lncorporation Act, 1928 and the following applicable Australian Accormting Standards and Urgent Issues Croup lnterpretations.

. Air6[SB 101 - Presentation of Financial Statements . Au{SB 107 - Cash Flow Statements . A,r{SB 108 - Accounting Policies, Changes in Accounting and Estimates aad Errors . A,r{SB I l0 - Events after the Balance Sheet Date; and . AI{SB l03l - Materiality

No other Accounting Standards, Urgent Issues Group Iaterpretations or other authoritative pronouncements ofthe Australian Accouoting Standards Board have been applied

Reporting Basis and Conventions The financial report has been prepared on an accruals basis and is based on historical cose.

The following is a summary of the material accounting policies adopted by the compa.ny in the prqraration of the frnancial report. The accounting policies have been consistently applied, unless otherwise stated

a Recognition of Income and Erpetrditure With the exception of managed invesments in the Bell Potter Portfolio account, income is brought to account when received and expenses arc irccounted for on an accnrals basis-

b Investments Investrnents are staled at average cost. The carrying amount of investments is reviewed annually by Trustees to ensure they arc not in excess of the recoverable amount of these investments. At 30 June,2020 the market value of invesments had fallen below the carrying amount due to the impact ofthe Covid-l9 pandemic on financial markets. The market value of the investments has subsequently recovered to be above the carrying amount.

P.g€ 1l MCGAR\TE SMITH INSTITUTE

NOTES TO TIIE FINAITCIAL STATEMENTS FOR TIIE Yf,AR ENDED 30 JIJNE 2O2O

I BASIS OF PREPARATION (Continued)

c Goods end Services Tax Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amormt of GST incurred is not recoverable from the Australian Taxation Ofiice (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition ofthe asset or as part ofan item ofthe expense. Receivables and payables are stated with the amount ofGST included. 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.

d Trade and Other Payables These amounts represent liabilities for goods and services provided to the company prior to the end of financial year which s ',npaid. The amounts are unsecured and are usually Paid within lQ fuYs of recopition.

e Financid Assets Financial assets are recorded at average cost- 2020 2019 $S

2 AI'DITORS Rf,MT,INERATION

Total amount received aad receivable by the auditors ofthe hstitute for: . Audit ofthe financial report - Baker Taylor Pty Ltd 4,500 4,300

3 CASH AIID CASII EQUIVALENTS

Current Cash at Bank - Macquarie Cash Managernent Accormt t23,674 245,092 - AMP Business Saver 235,991 359 ,665 245 ,W2

4 RECETVABLES

Current GST Receivable 5,105 758 2019 Franking Credit Ref,md - 83,930 2020 Franking Credit Refund 37 ,912 43,017 83,688

?4.12 MCGARYIE SMITII INSTITUTE

NOTES TO THF' FINAIICIAL STATEMENTS FOR TI{E YEAR EI\Df,D 30 JIJNE 2O2O

5 HNAI\ICIAL ASSETS 2020 2019 Current $ $ At Call Deposits DDH Gnham - Money Market Account 24 Srmcorp Bank 241 241 241 265 Term Deposits ING Direct 758,424 25t20O Bank of Queensland 250,000 NAB Term Deposit 250,000 250,000 AMP 300,000 550,000 1,301200 1,308424 TOTAL CT]RR,ENT FINAIICIAL ASSETS 1,301,zl4l 1,308,689

Non{urrent Unsea.red Notes (Market Value Sl5l,l l0) 1,500 CBA Perls VI 150,0m 150,000

Shares in Public Companies (Market Yalue 51,685,047) A]\lZ B,nking Group Limited - 4,942 shares 1t7,756 t17,756 BI{P Billiton Limited - 3,672 shares 66,529 6529 Challenger Limited - 15,000 shares tt5,022 115,022 Limited - 3,155 shares 33,U4 33,&4 Commonwealth Bank of Australia Limited - 4, I 74 shares 174,M6 174,M6 Estia Health Limited - 36,667 shares 147,353 t47,353 Grorp Plc - 3,750 shares 173,654 173,654 National Ausralia Bank - 3,888 shares 122,7 52 107 371 Pendal Group - 18,900 shares 180209 r80209 - 860 shares 35y'e8 35398 Limited - 18,500 shares 73,869 73,869 WAM Capital Limited - 75,000 shares 175,6U t75,6M Wesfarmen Limited - 3, I 55 shares 82,729 82,729 Wesqac Banking Corpomtion - 6,946 shares t34,875 134,875 Limited - 3,334 shares r30219 t3o2t9 Woolworths Limited - 3234 shares 38,682 38,682 t,8uA4l 1,787,060 TOTAL NON-CT'RRENT FINAI\'CIAL ASSETS 1,952,/Ul r937,060 TOTAL FINANCIAL ASSETS 32s3,82 324s,78

Prge 13 McGARVIE SLITE INSTITUTE

NOTES TO TIIE FINAIICIAL STATEMENTS FOR TEE YEARENDED30JT'h{E 2O2O

6 PAYABLES

2U20 2019 Curr€nt $$

Sudry Creditors 12,375 12,650

7 COMII{IIMENTS

The McCrvie Smith Instiarte Hmous Scholarship was established druing the 2017 financial year ad involves offering tvro schola$hips €ach year across a range of universities for honour shrdefis enrolled in a fu[ time Veterinary Scierce, Animal & Veterinary Bioscience or related degree. The instiute is committed o spemding p to $5,000 for each scholarship each yea. Further commitments will be srbject to a review ofthe scholarship by the tnrstees on an mnual basis.

Prgc f4 MGGARYIE SMITH INSTITUTE

NOIES TO TIIE FINAAICIAL STATEMENTS FOR TIIE YEAR EI\'DED 30 JI]AIE 2O2O

ADDITIONAL FINAIICIAL INSTRIJMENTS DISCLOSURE

Interest Rrte Risk

Inlerest Rale Rish E:qosara The Institute's exposue to interest rar€ risk and the effective weighted average interest rate for classes of financial assers and financial liabilities is set out below:

Fired Interest Maturing in Weighted Average Floeting Non- InteFest Inter€st 1 Yeer or Over I to Interest Note R.te Rrte Lcss 5 Yeers Beering Totel 2AO $ Finrnciel Assets Cash asses 3 0.68% 359,65 - 359,665 Receivables 4 43,017 43917 Financial Assets 5 5.ilo/, 1,952,44r lJ0l,44l - 3253,882

Financial Liabilities Payables t2,375 1237s

2019 Finenciel Assets Cash assets ., 1.25o/o 24s,092 245,W2 Receivables 4 83,688 128,fi6 Financial As.sets 5 1O.O5o/o r,937,offi 1,608,685 3,545,745

Finenciel Liebi[ties Payables 12,650 t2,650

P.ge t5 MCGARYIE SII{ITII INSTITUTE

NOTES TO TEE FINAIICIAL STATEMENTS FOR TEE YEAR EIIDED 30 JI'hiE 2O2O

ADDITIONAL FINA|ICIAL INSTRLTMf,IITS DISCLOSURE (Continued)

Net Feir Velue of tr'inanciel Assets rnd Lirbilitics

On-Baloace Shea Financial InstamenA The carrying amounts and na fair values offinancial assets and liabilities as at the reporting date are as follows: 2020 2020 2019 2019 Net Feir Cerrying Net Frir Cerrying Ydue Amount Vrlue Amount $ $ $ $ Fitrrncid A$ets Cash assets 359,665 359,ffis 245,@2 245,092 Receivables 43,017 43,017 83,688 83,688 Financial Assets 3,137,598 3,2s3,882 3,479,677 324s,74s

Finrnci.l Li.bilities Payables 12,375 12,375 12,650 12,650

Cash asses, receivables and payables are not readily traded on orgadsed markets in a standardised form- Financial assets may be readily taded on organised markets in a standardised form-

P.ge 15 MCGARVIE S1VIITE INSTITUTE

NOTES TOTEE FINAIICIAL STAITMENTS FOR TIIE YEAR ENDED 30 JT]IIE 2O2O

9 NOTES TO TIIE CASE FLOW STATEMENT

I For the pu4nses ofthe Cash Flow Statemen! Cash and cash equivalents includes Cash at Bank.

Cash and cash equivalents as at the end of the financial year as shown in the Cash Flow Statement is reconciled to the related items in the Balance Sheers as follows: 2020 2019 $ $

Cash at Bank 359,66s 245,W2 DDH Graham - Money Market Account -24 Suncorp Bank 241 237 359,96 245353

Il Reconciliation of Net Profit to Net Cash Provided by Opemting ActiYities:

Net Profit 83,1{ 167 A7t

Los{Gain) on Sale of Financial Assets 57,W

Chenges in Assets end Liebilities

Increase/@ecrease) in Payable (7,600) Decrease,/(Increase) in Receivables 39,521 9,560

Net Cesh Provided by Opereting Activities 122,711 226A7r

IO RELI\TED PARTY DISCLOSI'RES

The persons who were austees ofthe Instihrte in office during the financial year were:

Mr G.W. Mack Mr J.D.O. Boyd Dr F.R. Doughty Dr B.J. Standen Mr S.J. Walker Dr J.T. Rothwell Dr S. Britton Mr B.M- Christie

Pry.17