AUDITED SUMMARISED FINANCIAL STATEMENTS

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1 AUDITED SUMMARISED FINANCIAL STATEMENTS

2 AUDITEDSUMMARISED FINANCIAL STATEMENTS OF THE CANCER ASSOCIATION OF SOUTH AFRICA 31 MARCH 2015 CONTENTS INDEPENDENT AUDITOR S REPORT 84 STATEMENT OF FINANCIAL POSITION 85 STATEMENT OF COMPREHENSIVE INCOME 86 STATEMENT OF CHANGES IN ACCUMULATED FUNDS 86 STATEMENT OF CASH FLOWS 87 NOTES TO THE SUMMARISED FINANCIAL STATEMENTS 87 REPORT OF THE AUDIT COMMITTEE 88 THE CANCER ASSOCIATION OF SOUTH AFRICA (Incorporated not for profit) (Registration number 1932/003720/08) Audited Summarised Financial Statements For the year ended 31 March 2015 Prepared by R. van Jaarsveld (CFO) 52 83

3 INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF CANCER ASSOCIATION OF SOUTH AFRICA The accompanying summary financial statements, which comprise the summary statement of financial position as at 31 March 2015, the summary statement of comprehensive income, changes in equity and cash flows for the year then ended, and related notes, are derived from the audited annual financial statements of Cancer Association of South Africa for the year ended 31 March conducted in accordance with International Standard on Auditing 810, Engagements to Report on Summary Financial Statements. OPINION In our opinion, the summary financial statement derived from the audited financial statements of the Cancer Association of South Africa for the year ended 31 March 2015 are consistent in all material respects with those financial statements, in accordance with International Financial Reporting Standards (IFRS) and the requirements of the Companies Act 71 of We expressed a qualified audit opinion on those annual financial statements in our report dated 17 September Our auditor s report on the audited annual financial statements contained a Basis for Qualified Opinion paragraph In common with similar organisations, it is not feasible for the association to institute accounting controls over cash collections from donations, fundraising activities, subscriptions, bequests and other income prior to the initial entry of the collection in the accounting records. Accordingly, it was impractical for us to extend our examination beyond the receipts actually recorded. The summary financial statements do not contain all the disclosures required by the International Financial Reporting Standards and the requirements of the Companies Act of South Africa as applicable to annual financial statements. Reading the summary financial statements, therefore, is not a substitute for reading the audited annual financial statements of the Cancer Association of South Africa. DIRECTORS RESPONSIBILITY FOR THE SUMMARY FINANCIAL STATEMENTS The directors are responsible for the preparation of the summary financial statements in accordance with International Financial Reporting Standards and the requirements of the Companies Act of South Africa and for such internal control as the directors determine is necessary to enable the preparation of the summary financial statements that are free from material misstatement, whether due to fraud or error. OTHER REPORTS REQUIRED BY THE COMPANIES ACT The other reports required by the Companies Act paragraph in our audit report dated 17 September 2015 states that, as part of our audit of the annual financial statements for the year ended 31 March 2015, we have read the Directors Report, the Audit Committee s Report and the Company Secretary s Certificate for the purpose of identifying whether there are material inconsistencies between these reports and the audited annual financial statements. These reports are the responsibility of the respective preparers. The paragraph also states that, based on reading these reports, we have not identified material inconsistencies between these reports and the audited annual financial statements. The paragraph furthermore states that we have not audited these reports and accordingly do not express an opinion on these reports. The paragraph does not have an effect on the summary financial statements or our opinion thereon. Deloitte & Touche Registered Auditor Per: C. Naidoo Partner 17 September 2015 AUDITOR S RESPONSIBILITY Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were Toll-free

4 SUMMARISED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2015 ASSETS Non-current assets 93, ,969 Property and equipment 14,843 18,248 Other financial assets 78,307 97,721 Assets held for sale 2,441 - Current assets 34,624 23,676 Inventories 3,945 4,035 Receivables 8,323 6,396 Cash and bank balances 22,356 13,245 Total assets 130, ,645 ACCUMULATED FUNDS AND LIABILITIES Accumulated funds and reserves 99, ,502 Operational funds and reserves (22,057) (32,283) Research funds and reserves 121, ,785 Other funds 19,692 21,168 National Lotteries Distribution Trust Fund Earmarked funds 18,978 20,390 Current liabilities 10,601 13,975 Trade and other payables 10,601 13,975 Total accumulated funds and liabilities 130, ,

5 SUMMARISED STATEMENT OF COMPREHENSIVE INCOME AS AT 31 MARCH Income from fund development 26,195 22,246 Income from national and provincial projects 32,009 31,417 Income from donations and general income 19,506 18,157 Income from bequests 12,091 9,651 Investment revenue Other gains 148 7,262 Administration and service delivery expenses (95,389) (102,429) Expenditure relating to utilisation of National Lotteries Distribution Trust Fund (64) (7,311) Finance costs (3) (1,979) Impairment write off - (972) Total comprehensive deficit for the year (4,870) (23,803) SUMMARISED STATEMENT OF CHANGES IN ACCUMULATED FUNDS AS AT 31 MARCH 2015 Accumulated Operational Funds and Reserves Accumulated Research Funds and Reserves Total Accumulated Funds and Reserves Balance at 31 March 2013 (8,480) 124, ,476 Total comprehensive (deficit)/surplus for the year (23,803) 11,829 (11,974) Balance as at 31 March 2014 (32,283) 136, ,502 Prior year adjustment 15,096 (15,096) - Total comprehensive (deficit) / surplus for the year (4,870) 290 (4,580) Balance at 31 March 2015 (22,057) 121,979 99,922 Toll-free

6 SUMMARISED STATEMENT OF CASH FLOWS AS AT 31 MARCH Cash Flows Utilised in Operating Activities (14,414) (40,940) Cash receipts from operating activities 87,958 82,266 Cash paid in operating activities (97,771) (108,350) Cash utilised in operations (9,813) (26,084) Net cash utilised in research activities (4,598) (14,856) Finance costs paid (3) - Cash Flows Generated from Investing Activities 19,805 20,137 Acquisition of property and equipment (440) (908) Proceeds on disposal of property and equipment Net investment income Decrease in other financial assets 19,414 20,757 Cash Flows Generated From/(utilised in) Financing Activities 3,720 28,317 Increase of repayment of research loan 3,903 29,182 Decrease of research accounts payable (183) (865) Net increase in cash and cash equivalents 9,111 7,514 Cash and cash equivalents at beginning of the year 13,245 5,731 Cash and cash equivalents at the end of the year 22,356 13,245 NOTES TO THE SUMMARISED FINANCIAL STATEMENTS AS AT 31 MARCH BASIS OF PREPARATION The summarised financial results for the year ended 31 March 2015 have been prepared in accordance with the framework concepts and the recognition and measurement requirements of International Financial Reporting Standards (IFRS), the presentation and disclosure requirements of International Accounting Standard 34 Interim Financial Reporting applied to year end reporting and the requirements of the South African Companies Act, AUDITED, ANNUAL FINANCIAL STATEMENTS 31 MARCH 2015 The summarised financial results have been derived from the audited annual financial statements of Cancer Association of South Africa for the year ended 31 March 2015, which are available at the company s registered office (Refer note 4) for review by members. Please contact Mr. R van Jaarsveld (Chief Financial Officer) at for the review of the hard copy of the signed audited annual financial statements. 2. ACCOUNTING POLICIES The accounting policies applied in the preparation of these summarised consolidated financial statements are in terms of IFRS and are consistent with those applied in the annual financial statements for the year ended 31 March The summarised financial results appearing in this report are the responsibility of the Directors. The Directors take full responsibility for the preparation of the summarised consolidated financial results and that the financial information has been correctly extracted from the underlying audited annual financial statements. 4. REGISTERED OFFICE 26 Concorde Road West, Bedfordview,

7 KEY HIGHLIGHTS REPORT OF THE AUDIT COMMITTEE THIS IS THE REPORT OF THE AUDIT COMMITTEE OF CANSA FOR THE YEAR ENDED 31 MARCH MEMBERSHIP AND COMPOSITION The audit committee members are appointed for a period of three years by the Annual General Meeting after due consideration and recommendation by the Board. All members are independent and financially literate. The members of the committee during 2015 were Mr Derek Foster (chairperson), Mr David Lekota, and Adv Marlene Jennings (until June 2014). Mr Bothwell Mazarura was appointed during May 2015 by the Board to fill the vacancy. The representatives of the external auditors are required to be in attendance at committee meetings, as are Ms Elize Joubert (Acting CEO) and Mr Rudolf van Jaarsveld (Chief Financial Officer) as ex officio members. MANDATE The audit committee revised its mandate during 2013 to better reflect its alignment with proper governance principles in line with the guidelines set by the King Report on Corporate Governance (King III). The audit committee s overall purpose is to assist the Board in fulfilling its oversight responsibilities for the financial reporting process, the system of internal control, the risk management process, the audit process, and the company s process for monitoring compliance with laws and regulations and the code of conduct. DUTIES CARRIED OUT The committee has performed its duties and responsibilities during the financial year according to its charter by overseeing the management s role in creating and maintaining a proper risk management process and in creating an effective control environment in the company and by ensuring that management demonstrates and stimulates the necessary respect for the internal control structure. The committee regularly engaged with personnel from Internal Audit, the Finance Department, Senior Management and Board. INTERNAL AUDIT The audit committee received regular reports from Internal Audit on its rolling plans and the result of their work. The chair of the audit committee also has regular meetings with the head of Internal Audit to discuss significant investigations, and areas of risk. After the year end, a new Internal Auditor, Mr Phatu Nevondo, was appointed. The internal audit function is robust, independent and led by a strong, principled individual. The Internal Audit function aligns its functions in conformance with the International Standards for Professional Practice of Internal Auditing. EXTERNAL AUDIT The committee considered the independence of our external auditors, Deloitte to be in order by taking the following into account: Ÿ representations made by Deloitte to the committee; Ÿ the auditors did not, except as external auditors or in rendering permitted non-audit services, receive any remuneration or other benefit from the company; Ÿ the auditors independence was not impaired by any consultancy, advisory or other work undertaken; Ÿ the auditors independence was not prejudiced as a result of any previous appointment as auditors; and Ÿ the criteria specified for independence by the Independent Regulatory Board for Auditors and international regulatory bodies. FINANCIAL FUNCTION The committee: Ÿ considered the appropriateness of the experience and expertise of the Chief Financial Officer and concluded that this was appropriate; Ÿ considered the expertise, resources and experience of the finance function and concluded that these were appropriate; and Ÿ considered the financial controls to be effective. During the year under review the committee assessed the processes implemented by management to: Ÿ safeguard the Company's assets; Ÿ maintain adequate accounting records; Ÿ develop and maintain an effective system of internal control; and Ÿ oversee risk management and compliance processes. Toll-free

8 ANNUAL FINANCIAL STATEMENTS The committee: Ÿ confirmed, based on management s review, that the annual financial statements were prepared on the going concern basis; Ÿ examined the annual financial statements and other financial information made public, prior to their approval by the Board; Ÿ considered accounting treatments, significant or unusual transactions and accounting judgements; Ÿ considered the appropriateness of accounting policies and any changes made; Ÿ reviewed the representation letter relating to the annual financial statements signed by management; Ÿ considered any problems identified as well as any legal and tax matters that could materially affect the financial statements; and Ÿ met separately with management, external audit and internal audit and satisfied themselves that no material control weakness exists. REPORTS TO THE BOARD The audit committee reports, as a standing item, to the Board on their statutory duties, activities performed, major findings of internal audit, communication and engagement with external audit, risks arising that the Board should be aware of, as well as to the importance of certain compliance matters

9 NOTES 90 Toll-free

10 INTEGRATED REPORT 2014/2015

ANNUAL FINANCIAL STATEMENTS

ANNUAL FINANCIAL STATEMENTS CONTENTS Audited Annual Financial Statements 31 March 2014 Statement of Directors Responsibilities Page 1 Certificate by Company Secretary 2 Independent Auditor s Report 3 Directors