Audit Report
NRF Audit Report 2010
STATEMENT OF COMPREHENSIVE INCOME FOR YEAR ENDED 31 MARCH 2010
|
DONATIONS & FUNDRAISING INCOME |
2009 |
2010 |
|
|||
|
|
$ |
$ |
|
|||
|
Donations – Grants |
--------- |
10,000.00 |
|
|||
|
Donations – Brain Tumour Research |
50,000.00 |
--------- |
|
|||
|
Donations – Paediatric Appeal |
--------- |
5,960.20 |
|
|||
|
Donations – Bequests |
1,000.00 |
10,000.00 |
|
|||
|
Donations – In Memoriam |
4,500.00 |
4,584.67 |
|
|||
|
Donations – General |
52,359.50 |
73,668.10 |
|
|||
|
Fund Raising – Functions Surplus |
17,205.91 |
11,093.06 |
|
|||
|
– Charity Card Surplus |
3,549.25 |
3,436.73 |
|
|||
|
Members’ Subscriptions |
940.94 |
1,037.26 |
|
|||
|
|
------------------- |
------------------- |
|
|||
|
TOTAL DONATIONS & FUNDRAISING INCOME |
129,555.60 |
119,780.02 |
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|||
|
|
------------------- |
------------------- |
|
|||
|
|
|
|
|
|||
|
Less Research GRANT EXPENDITURE |
$ |
$ |
|
|||
|
NRF Chair of Neurosurgical Research Fellowship |
50,000.00 |
50,000.00 |
|
|||
|
Paediatric Appeal |
50,000.00 |
--------- |
|
|||
|
Brain Tumour Research |
50,000.00 |
--------- |
|
|||
|
Trigeminal Pain Research |
31,672.24 |
--------- |
|
|||
|
Parkinson’s Research |
24,426.76 |
10,000.00 |
|
|||
|
|
------------------- |
------------------- |
|
|||
|
|
206,099.00 |
60,000.00 |
|
|||
|
|
------------------- |
------------------- |
|
|||
|
SURPLUS/(DEFICIT)–Donations/Fundraising |
(76,543.40) |
59,780.02 |
|
|||
|
|
------------------- |
------------------- |
|
|||
|
Investment INCOME |
$ |
$ |
|
|||
|
Interest - Bank SA |
1,099.45 |
210.86 |
|
|||
|
- Bank SA – Term Deposits |
42,383.40 |
26,247.91 |
|
|||
|
- Adelaide Bank – Money Market |
43,981.65 |
19,523.44 |
|
|||
|
- ANZ Bank – Bank Bills |
8,229.40 |
--------- |
|
|||
|
Unrealised Gain - Perpetual Managed Investment |
--------- |
14,946.79 |
|
|||
|
|
------------------- |
------------------- |
|
|||
|
TOTAL INVESTMENT INCOME |
95,693.90 |
60,929.00 |
|
|||
|
|
------------------- |
------------------- |
|
|||
|
|
|
|
|
|||
|
Less ADMINISTRATION EXPENSES |
$ |
$ |
|
|||
|
Postage, stationery and telephone |
11,918.94 |
13,942.39 |
|
|||
|
Printing Annual Report and Newsletters |
5,799.64 |
8,535.42 |
|
|||
|
Promotion and Development – Staff |
54,065.75 |
60,443.09 |
|
|||
|
Promotion and Development – Materials |
--------- |
6,735.01 |
|
|||
|
Other Expenses |
9,819.13 |
7,413.67 |
|
|||
|
Depreciation and Amortisation |
1,304.01 |
2,177.00 |
|
|||
|
|
------------------- |
------------------- |
|
|||
|
|
82,907.47 |
99,246.58 |
|
|||
|
|
------------------- |
------------------- |
|
|||
|
SURPLUS/ (DEFICIT) FOR YEAR – NRF TRUST FIND |
(191,152.43) |
3,502.71 |
|
|||
|
|
------------------- |
------------------- |
|
|||
|
TOTAL SURPLUS/ (DEFICIT) FOR YEAR |
$ (254,909.40) |
$ 24,965.15 |
|
|||
|
|
------------------- |
------------------- |
|
|||
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2010
|
|
2009 |
2010 |
|
|
|
$ |
$ |
|
|
ACCUMULATED FUNDS – CORPUS |
1,200,000.00 |
1,200,000.00 |
|
|
ACCUMULATED FUNDS – OTHER |
58,151.88 |
79,614.32 |
|
|
ACCUMULATED FUNDS – TRUST FUND |
76,369.99 |
79,872.70 |
|
|
|
------------------- |
------------------- |
|
|
TOTAL ACCUMULATED FUNDS |
$ 1,334,521.87 |
1,359,487.02 |
|
|
------------------- |
------------------- |
|
|
|
|
|
|
|
|
CURRENT ASSETS |
$ |
$ |
|
|
Bank SA – Gift Fund |
8,129.66 |
--------- |
|
|
Bank SA – Cheque Account |
11,349.72 |
38,259.73 |
|
|
Bank SA – Term Deposits |
738,695.42 |
360,044.60 |
|
|
Adelaide Bank – Money Market |
640,299.67 |
--------- |
|
|
NRF Trust Fund Cash Assets |
76,369.99 |
79,872.70 |
|
|
Sundry Debtor – GST Receivable |
1,910.07 |
--------- |
|
|
Inventories Charity Card Shop |
4,250.00 |
4,179.00 |
|
|
Sundry Debtor – Card Shop Sales |
233.20 |
263.62 |
|
|
Prepayments – Functions |
--------- |
6,628.43 |
|
|
Deposit – Public Trustee |
5,000.00 |
5,000.00 |
|
|
|
------------------- |
------------------- |
|
|
TOTAL CURRENT ASSETS |
1,486,237.73 |
494,248.08 |
|
|
|
------------------- |
------------------- |
|
|
NON CURRENT ASSETS |
|
|
|
|
Office Equipment and Computer Software |
7,405.00 |
5,228.00 |
|
|
Perpetual Managed Investment |
--------- |
1,014,946.79 |
|
|
NRF Trust Fund Non Current Assets |
--------- |
--------- |
|
|
|
------------------- |
------------------- |
|
|
TOTAL NON CURRENT ASSETS |
7,405.00 |
1,020,174.79 |
|
|
|
------------------- |
------------------- |
|
|
TOTAL ASSETS |
1,493,642.73 |
1,514,422.87 |
|
|
|
------------------- |
------------------- |
|
|
LIABILITIES |
|
|
|
|
CURRENT LIABILITIES |
$ |
$ |
|
|
Sundry Creditors – Grants for Research |
156,099.00 |
131,672.24 |
|
|
– Expenses |
323.28 |
2,347.26 |
|
|
– GST Payable |
--------- |
541.35 |
|
|
Income in Advance – Functions |
2,698.58 |
20,375.00 |
|
|
NRF Trust Fund Liabilities |
--------- |
--------- |
|
|
|
------------------- |
------------------- |
|
|
TOTAL LIABILITIES |
159,120.86 |
154,935.85 |
|
|
------------------- |
------------------- |
|
|
|
NET ASSETS |
$ 1,334,521.87 |
$ 1,359,487.02 |
|
|
|
------------------- |
------------------- |
|
FOR THE YEAR ENDED 31 MARCH 2010
|
|
Accumulated Funds - Corpus |
Accumulated Funds - Other |
Accumulated Funds –NRF Trust Fund |
Accumulated Funds Total |
|
|
|
|
|
|
|
Balance as at 1/04/2009 |
1,200,000.00 |
58,151.88 |
76,369.99 |
1,334,521.87 |
|
Current Year Surplus/ (Deficit) |
|
21,462.44 |
3,502.71 |
24,965.15 |
|
|
------------ |
------------ |
------------ |
--------------- |
|
Balance as at 31/03/2010 |
1,200,000.00 |
79,614.32 |
79,872.70 |
1,359,487.02 |
|
|
------------ |
------------ |
------------ |
--------------- |
|
|
Accumulated Funds - Corpus |
Accumulated Funds - Other |
Accumulated Funds – NRF Trust Fund |
Accumulated Funds Total |
|
|
|
|
|
|
|
Balance as at 1/04/2008 |
1,200,000.00 |
121,908.85 |
267,522.42 |
1,589,431.27 |
|
Current Year Surplus/ (Deficit) |
|
(63,756.97) |
(191,152.43) |
(254,909.40) |
|
|
--------------- |
-------------- |
-------------- |
--------------- |
|
Balance as at 31/03/2009 |
1,200,000.00 |
58,151.88 |
76,369.99 |
1,334,521.87 |
|
|
--------------- |
-------------- |
-------------- |
--------------- |
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2010
|
|
2009 |
2010 |
|
|
|
$ |
$ |
|
|
Cash flows from Operating Activities |
|
|
|
|
Cash receipts from donations & fundraising |
131,596.88 |
137,426.02 |
|
|
Cash payments for research grants |
(134,426.76) |
(84,426.76) |
|
|
Cash flows from operating activities – NRF Trust Fund |
(200,000.00) |
--------- |
|
|
|
------------------- |
------------------- |
|
|
Total Cash flows from operations |
(202,829.88) |
52,999.26 |
|
|
|
------------------- |
------------------- |
|
|
|
|
|
|
|
Cash flows from Investing Activities |
|
|
|
|
Interest Received |
95,693.90 |
45,982.21 |
|
|
Payment for Office Equipment |
(8,709.01) |
-------- |
|
|
Acquisition of Deposit – Public Trustee |
(5,000.00) |
-------- |
|
|
Acquisition of Managed Investment – Perpetual |
-------- |
(1,000,000.00) |
|
|
Cash payment to Suppliers & Employees (Note 4) |
(79,604.68) |
(99,151.61) |
|
|
Cash flows from investing activities – NRF Trust Fund |
8,847.57 |
3,502.71 |
|
|
|
------------------- |
------------------- |
|
|
Total Cash flows from investing activities |
11,227.78 |
(1,049,666.69) |
|
|
|
------------------- |
------------------- |
|
|
Net Increase/(decrease) in cash and cash equivalents |
(191,602.10) |
(996,667.43) |
|
|
Cash and cash equivalents at 1 April |
1,666,446.56 |
1,474,844.46 |
|
|
|
------------------- |
------------------- |
|
|
Cash and cash equivalents at 31 March |
$ 1,474,844.46 |
$ 478,177.03 |
|
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|
------------------- |
------------------- |
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 March 2010
NOTE 1: Statement of Significant Accounting Policies
This financial report is a special purpose financial report in order to satisfy the financial reporting requirements of the Associations Incorporations Act 1985. The Council has determined that the Foundation is not a reporting entity.The financial report has been prepared in accordance with the requirements of the Associations Incorporations Act 1985 and the recognition and measurement aspects of all applicable Australian Accounting Standards, adopted by Australian Accounting Standards Board (AASB) and other authoritative pronouncements of the AASB that have a material effect. The financial report does not include the disclosure requirements of the following pronouncements having no material effect:
AASB 7 Financial Instruments: Disclosures
AASB 8 Operating Segments
AASB 102 Inventories
AASB 112 Income Taxes
AASB 116 Property, Plant and Equipment
AASB 124 Related Party Disclosures
AASB 132 Financial Instruments: Presentations
AASB 137 Provisions, Contingent Liabilities and Contingent Assets
AASB 139 Financial Instruments: Recognition and Measurement
The following accounting policies have been adopted in the preparation on the financial statements:
(a) Basis of Accounting:
Donations are recorded on a cash basis. Fundraising income and interest income is accounted for on an accruals basis. Expenses are accounted for net of GST when paid with input credits being refundable.
(b) Income Tax:
The Foundation has been endorsed as an Income Tax exempt Charity (ITEC) and a Deductible Gift Recipient (DGR).
(c) Investments:
Investments are valued at fair value at balance date being the market value per the portfolio valuation. Unrealised gains and losses arising from changes in the fair value of investments are recognised in the Income Statement.
(d) Depreciation of Fixed Assets:
Office equipment and computer software are depreciated on a prime cost basis at 25% per annum.
(e) Corpus and Funds Available for Grants:
An amount of $1,200,000.00 has been allocated to a corpus fund and the investment earnings on this corpus is used to fund the administration expenses. In addition, 80% of all monies raised and donated in a financial year can be used to fund neurosurgical research and the remaining 20% can be added to the corpus and retained for future research grants.
(f) Inventories:
Inventories are measured at the lower value of cost and net realisable value.
NOTE 2:
In September 1995, the Foundation received a bequest of $71,672.24 from Estate D S Moten, with the understanding that these monies be used for trigeminal pain research. As at 31 March 2008, grants of $40,000 had been spent against this amount, and the remaining balance of $31,672.24 was allocated in the year ended 31 March 2009.
In February 2008, the Foundation received a bequest of $48,853.52 from Estate J E Hutchesson with the understanding that these monies be used for Parkinson’s disease research. As at 31 March 2008, a grant of $24,426.76 has been spent against this amount, and the remaining balance of $24,426.76 was allocated in the year ended 31 March 2009.
NOTE 3:
A summary of fundraising income and expenses is as follows:
|
Function: |
Income |
Expenses |
Net Surplus |
|
Coopers Open day |
11,444.58 |
351.52 |
11,093.06 |
|
|
---------------- |
--------------- |
--------------- |
|
Charity Card Shop |
7,457.73 |
4,021.00 |
3,436.73 |
|
|
---------------- |
--------------- |
--------------- |
The total fundraising surplus of $14,529.79 was applied to the Grants for research payments of $100,000.00.
NOTE 4:
The total Administration Expenses of the fund has been allocated on the following basis.
|
|
Fundraising |
Administration |
Total Expenses |
|
Postage, Stationery and Telephone |
5,576.95 |
8,365.44 |
13,942.39 |
|
Printing, Report and Newsletters |
3,414.17 |
5,121.25 |
8,535.42 |
|
Promotion and Development – Staff |
24,177.24 |
36,265.85 |
60,443.09 |
|
Promotion and Development - Materials |
6,735.01 |
------- |
6,735.01 |
|
Sundries |
2,965.47 |
4,448.20 |
7,413.67 |
|
Depreciation and Amortisation |
870.80 |
1,306.20 |
2,177.00 |
|
|
---------------- |
--------------- |
--------------- |
|
|
43,739.64 |
55,506.94 |
99,246.58 |
|
|
---------------- |
--------------- |
--------------- |
NOTE 5: Reconciliation of cash flows from operating & investing activities
|
Cash flows from operating & investment activities |
2009 |
2010 |
|
|||||||
|
|
$ |
$ |
|
|||||||
|
|
|
|
|
|||||||
|
Surplus/(Deficit) for the period |
(254,909.40) |
24,965.15 |
|
|||||||
|
|
|
|
|
|||||||
|
Adjustments for: |
|
|
|
|||||||
|
Unrealised gain - Managed Investment |
-------- |
(14,946.79) |
|
|||||||
|
Depreciation & Amortisation |
1,304.01 |
2,177.00 |
|
|||||||
|
|
|
|
|
|||||||
|
Change in Assets & Liabilities: |
|
|
|
|||||||
|
Decrease/(Increase) in Current Assets |
2,652.89 |
(4,677.78) |
|
|||||||
|
Decrease/(Increase) in Managed Investment |
-------- |
(1,000,000.00) |
|
|||||||
|
Decrease/(Increase) in Deposit – Public Trustee |
(5,000.00) |
-------- |
|
|||||||
|
Decrease/(Increase) in Office Equipment |
(8,709.01) |
-------- |
|
|||||||
|
|
|
|
|
|||||||
|
(Decrease)/Increase in Current Liabilities |
73,059.41 |
(4,185.01) |
|
|||||||
|
|
------------------- |
------------------- |
|
|||||||
|
Cash flows (used in)/provided by operating & investment activities |
(191,602.10) |
(996,667.43) |
|
|||||||
|
|
------------------- |
------------------- |
|
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1. Present fairly the results of the operations of the Foundation for the financial year ended 31 March 2010 and the state of affairs of the Foundation as at the end of that financial year; and
2. The Council has reasonable grounds to believe that the Foundation will be able to pay its debts as and when they fall due.
This statement has been made in accordance with a resolution of the Council and is signed by two members of the Council.
Signed Dated this 23rd day of Sept 2010.
………………………………………. ………………………………………
President – J B North Honorary Treasurer – M K Zerner
In accordance with Section 35(5) of the Associations Incorporation Act 1985 (as amended), the council of the Neurosurgical Research Foundation Incorporated hereby states that during the financial year ended 31 March 2010 other than salaries due to officers of the Foundation:
(a)
(i) no officer of the Foundation;
(ii) no firm of which an officer is a member; and
(iii) no body corporate in which an officer has a substantial financial interest,
has received or come entitled to receive a benefit as a result of a contract between the officer, firm or body corporate and the Foundation.
(b) No officer of the Foundation has received directly or indirectly from the association any payment or other benefit of a pecuniary value.
This report is made in accordance with a resolution of the committee and signed by two members of the committee.
Signed Dated this 23rd day of Sept 2010.
………………………………….. …………………………………………
President – J B North Honorary Treasurer – M K Zerner
