The Humour Foundation. ABN Annual Report

Transcription

1 ABN Annual Report 30 June 2017

2 Contents Directors report... 2 Statement of comprehensive income... 7 Statement of financial position... 8 Statement of changes in members funds... 9 Statement of cash flows Notes to the financial statements Directors declaration Declaration by Chief Executive Officer

3 Directors report Directors report The directors present their report together with the financial report of The Humour Foundation (the Company or the Foundation) for the financial year ended 30 June 2017 and the auditor s report thereon. 1. Directors The directors of the Company at any time during or since the end of the financial year are: Director Peter W Jess Experience, special responsibilities and other directorships Peter was appointed as a director on 17 January Peter was a founding member of the Foundation and is currently Treasurer. Peter is the principal of PJA Accountants. Peter is Chairman for Tomax Logistics Pty Ltd and Envirogrower Pty Ltd. He is also a Director of the Indigenous Sports Network Pty Ltd, Image Sportivo Internationale Pty Ltd, Sports Health Check Ltd, and Global Sports Solutions Pty Ltd. Peter is a Chartered Accountant, Certified Public Accountant, Chartered Tax Advisor and Chartered Secretary and Administrator. Peter holds a Master of Law and a Diploma of Business/Accounting. Mark G Smith (FAMI, CPM, FAIM, FAICD) Tristan Landers Mark was appointed as a director on 29 November Mark has extensive global experience in the Manufacturing and FMCG sectors across Australasia, USA, UK and Asia Pacific. He was the Managing Director of Cadbury Schweppes Australia and New Zealand from Over a 16 year career with the Cadbury Schweppes group, he held senior management positions in Australia, the UK and North America, including Director of Marketing for Cadbury Trebor Basset in the UK. Mark was also the past Chairman of Manassen Foods Group and has held senior marketing management positions with Unilever and Uncle Toby's. Current directorships Non-Executive Director of GUD Holdings since 2009 Non-Executive Director of Toll Holdings since 2007 Non-Executive Director since 2004 and Chairman of The Humour Foundation since 2009 Chairman of Enactus since 2007 Tristan was appointed as a director on 24 June Tristan is a management consultant and the Principal of IN21, leading a practice of strategy and change professionals. Tristan has led a number of businesses and teams in financial services and consulting with experience and expertise in leadership, strategy development, retail banking, organisational change, sustainability, organisation culture and diversity, community investment, Indigenous community development and banking, process optimisation and people development. Tristan has a Bachelor of Arts, a Bachelor of Laws and is a Graduate of the Australian Institute of Company Directors. Tristan is a director of YWCA Australia, YWCA NSW and Cutcliffe Consulting Pty Ltd, also trading as IN21, and an Ambassador of the Australian Indigenious Education Foundation. Tristan resigned from the board on the 14 July

4 Director s report (continued) 1. Directors (continued) Director Experience, special responsibilities and other directorships Damien Meredith David Pettigrew Damien was appointed as a director on 24 June Damien is the Chief Operating Officer of Kia Motors Australia. Damien is also a director of D. Meredith Pty Ltd. David was appointed as a director on 24 June David has worked in the not-forprofit sector for over 18 years and is currently the Director and owner of Nourish NFP Pty Ltd, a consultancy to the not for profit sector. Rebecca Ong Rebecca was appointed as a director on 21 September Rebecca is a Regional Counsel at UBS, with responsibility for the provision of legal advice in support of UBS Asset Management division covering Asia Pacific. She has over 12 years of experience covering a broad range of areas that include mergers and acquisitions, funds management, corporate, regulatory and governance. She is admitted as a Solicitor in New South Wales and is a Fellow with the Governance Institute of Australia (FGIA). Michael O Brien Michael was appointed as a director on 8 March 2017.Born and raised in West Cork in Ireland, Mike went to medical school at University College Cork, graduating in He completed his adult general surgical training in Cork before undertaking PhD research. Moving to the UK to undergo training in Paediatric Surgery Mike worked at Great Ormond Street and Hammersmith Hospitals in London, University Hospital of Wales in Cardiff, Bristol Children s Hospital and Birmingham Children s Hospital. A year in Melbourne at the Children s Hospital was enough to fall in love with the city and surrounding areas. Having returned to the UK he worked for a time as a Consultant Paediatric Urologist in Birmingham before returning to Melbourne. As well as his clinical role as a Paediatric Urologist, Mike is the Chief of Surgery at The Royal Children s Hospital, Melbourne and has been the Medical Ambassador for the Clown Doctors since Company secretary Melinda Farrell was appointed to the position of Company Secretary on 9 January Melinda has management experience across a variety of sectors. She has been in her current role of Chief Executive Officer of The Humour Foundation since Melinda has a Master of Business Administration and Bachelor of Education. 3

5 Director s report (continued) 3. Directors meetings The number of directors meetings (including meetings of Committees of Directors) and number of meetings attended by each of the directors of the Company during the financial year are: Director Board Meetings Finance Committee Meetings Attended Entitled Attended Entitled Mark G Smith Peter W Jess David Pettigrew Damien Meredith Rebecca Ong 3 3 Michael O Brien 1 1 Tristan Landers Members liability The Foundation is a company limited by guarantee. In the event of the Foundation being wound up, the liability of each member is limited to $20. The total amount that members of the Company are liable to contribute as at 30 June 2017 is $320 (2016: $300). 4

6 Director s report (continued) 5. Company objectives, strategies and principal activities Mission and objectives To be the leading Australian humour in health charity by promoting and delivering the positive health benefits of humour in a sustainable and effective manner. Principal activities and strategies The principal activities of the Company during the course of the financial year were to raise funds to operate various programs designed to achieve the following short and long term objectives: Short term To grow revenue to meet the short term needs of programs in a sustainable manner. Long term Deliver the health benefits of humour to the Australian community. Promote awareness and understanding of how the Company makes a positive difference through humour. Drive sustainable sources of funding in order to meet future program needs. There were no significant changes in the nature of the activities of the Company during the year. 6. Review of performance During the year the Company's income mainly came from donations, grants and fundraising. Expenses were primarily incurred through program costs and maintaining the national office. The operating surplus for the year ended 30 June 2017 was $1,102 (2016: ($487,782)). Apart from operating surplus, performance is measured by number of people visited in each of the 24 designated hospitals across Australia each year. The number of visits for the year was 1,685 and number of interactions with patients, family and staff was 208, Significant changes in the state of affairs In the opinion of the directors there were no significant changes in the state of affairs of the Company that occurred during the financial year under review. 8. Lead auditor s independence declaration The Lead auditor's independence declaration is set out on page 5 and forms part of the Directors' report for financial year ended 30 June This report is made in accordance with a resolution of the directors: Mark Smith Chairman Dated at Melbourne this 11th day of October

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8 Statement of comprehensive income Statement of comprehensive income Note Income 4 4,105,141 3,576,825 Marketing costs (87) (3,117) Administration costs (484,927) (481,992) Program costs (2,139,080) (2,053,170) Fundraising costs (1,500,548) (1,554,442) Operating surplus before interest income (19,501) (515,896) Interest income 20,603 28,114 Surplus/(Deficit) for the year 1,102 (487,782) Other comprehensive income - - Total comprehensive income for the year 1,102 (487,782) The notes on pages 11 to 23 are an integral part of these financial statements. 7

9 Statement of financial position As at 30 June 2017 Statement of financial position Note Assets Cash and cash equivalents 6 1,593,959 1,519,547 Trade and other receivables 7 112, ,724 Prepayments 10,594 7,360 Total current assets 1,716,986 1,628,631 Trade and other receivables NC 7 61,721 60,415 Property, plant and equipment 8 2,048 8,544 Intangible assets 9 50,161 74,084 Total non-current assets 113, ,043 Total assets 1,830,916 1,771,674 Liabilities Trade and other payables , ,985 Employee benefits 11 93,017 81,468 Unearned revenue 10 - Total current liabilities 305, ,453 Employee benefits NC 11 73,798 65,681 Total non-current liabilities 73,798 65,681 Total liabilities 379, ,134 Net assets 1,451,642 1,450,540 Equity Retained surplus 1,451,642 1,450,540 Total equity 1,451,642 1,450,540 The notes on pages 11 to 23 are an integral part of these financial statements. 8

10 Statement of changes in members funds Statement of changes in members funds Retained surplus Total Balance as at 1 July ,938,322 1,938,322 Deficit for the year (487,782) (487,782) Other comprehensive income - - Total comprehensive income for the year (487,782) (487,782) Balance as at 30 June ,450,540 1,450,540 Balance as at 1 July ,450,540 1,450,540 Surplus for the year 1,102 1,102 Other comprehensive income - - Total comprehensive income for the year 1,102 1,102 Balance as at 30 June ,451,642 1,451,642 The notes on pages 11 to 23 are an integral part of these financial statements. 9

11 Statement of cash flows Statement of cash flows Note Cash flows from operating activities Cash receipts from customers 4,094,432 3,575,492 Cash paid to suppliers and employees (4,033,193) (3,990,037) Cash (used in)/ generated from operating activities 61,239 (414,545) Interest received 20,603 28,114 Net cash from operating activities 6 81,842 (386,431) Cash flows from investing activities Purchase of property, plant and equipment - - Purchase of intangibles (6,124) - Acquisition of term deposits (1,306) (1,443) Net cash used in investing activities (7,430) (1,443) Cash flows from financing activities - - Net cash used in financing activities - - Net (decrease)/increase in cash and cash equivalents 74,412 (387,874) Cash and cash equivalents at beginning of year 1,519,547 1,907,421 Cash and cash equivalents at end of year 6 1,593,959 1,519,547 The notes on pages 11 to 23 are an integral part of these financial statements. 10

12 Notes to the financial statements Notes to the financial statements 1. Reporting entity The Humour Foundation (the Company or the Foundation) is a company incorporated and domiciled in Australia. The address of the Company's registered office is Level 1, 28 Bridge St, Pymble, NSW. The Foundation is a company limited by guarantee. In the event of the Foundation being wound up, the liability of each member is limited to $20. The number of members as at 30 June 2017 was 16 (2016: 15). The Company is a not-for-profit entity and is primarily involved in raising funds to operate various programs designed to use the benefits of humour to promote quality of life. 2. Basis of preparation (a) Statement of compliance The financial statements are general purpose financial statements which have been prepared in accordance with Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board (AASB)and the Australian Charities and Not-for-profits Commission Act The financial statements were approved by the Board of Directors on 11 October (b) Basis of measurement The financial statements have been prepared on the historical cost basis. (c) Functional and presentation currency These financial statements are presented in Australian dollars, which is the Company's functional currency. (d) Use of estimates and judgements The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. It was concluded that judgements and estimates made by management on the application of Australian Accounting Standards did not have a significant effect on the financial report. 11

13 Notes to the financial statements (continued) 3. Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements. (a) Financial instruments (i) Non-derivative financial assets Financial assets are recognised initially on the date at which the Company becomes a party to the contractual provisions of the instrument. The Company's non-derivative financial assets are cash and cash equivalents and trade and other receivables. Cash and cash equivalents comprise cash balances and call deposits with original maturities of three months or less from the acquisition date that are subject to an insignificant risk of changes in their fair value, and are used by the Company in the management of its short-term commitments. Trade and other receivables are recognised initially at fair value and are subsequently measured at amortised cost, less any impairment losses (see note 3(d)). (ii) Non-derivative financial liabilities Financial liabilities are recognised initially on the date at which the Company becomes a party to the contractual provisions of the instrument. The Company derecognises a financial liability when its contractual obligations are discharged or cancelled or expire. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The Company's non-derivative financial liabilities are trade and other payables. Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are measured at amortised cost using the effective interest method. (b) Property, plant and equipment (i) Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net within other income in profit or loss. (ii) Subsequent costs and depreciation The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the daytoday servicing of property, plant and equipment are recognised in profit or loss as incurred. Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value. 12

14 Notes to the financial statements (continued) 3. Significant accounting policies (continued) (b) Property, plant and equipment (continued) (ii) Subsequent costs and depreciation (continued) Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. The estimated useful lives for the current and comparative years are as follows: Office equipment 3-4 years Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. (c) Intangible assets (i) Recognition and measurement Intangible assets that are acquired by the Company and have finite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses. (ii) Subsequent expenditure and amortisation Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognised in profit or loss as incurred. Intangible assets are amortised on a straight-line basis in profit or loss over their estimated useful lives, from the date that they are available for use. The estimated useful lives for the current and comparative years are as follows: Computer software 3-4 years Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. (d) Impairment A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Company on terms that the Company would not consider otherwise or indications that a debtor or issuer will enter bankruptcy. The Company considers evidence of impairment for receivables at both a specific asset and collective level. All individually significant receivables are assessed for specific impairment and those found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Receivables that are not individually significant are collectively assessed for impairment by grouping together receivables with similar risk characteristics. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset s original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account against receivables. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss. 13

15 Notes to the financial statements (continued) 3. Significant accounting policies (continued) (e) Employee benefits (i) Defined contribution plans A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognised as personnel expenses in profit or loss in the periods during which services are rendered by employees. (ii) Other long-term employee benefits The Company s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Re-measurements are recognised in profit or loss in the period in which they arise. (i) Short-term employee benefits Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. (f) Income (i) Donations and fundraising The Humour Foundation is a non-profit organisation and receives significant income from donations and fundraising. Donations and proceeds from fundraising are recorded as income when they are received. (ii) Grants and sponsorship Grants received on the condition that specified services are delivered, or conditions are fulfilled, are considered reciprocal. Such grants are initially recognised as a liability, and then subsequently recognised in income as services are performed or conditions are fulfilled. Income from non-reciprocal grants is recognised when received. (iii) Interest income Interest income is recognised as it accrues in profit and loss using the effective interest method. (g) Income tax The Company is a registered charity and is exempted from income tax under Section 50-5 of the Income Tax Assessment Act (h) New standards and interpretations not yet adopted A number of new Australian Accounting standards, amendments to standards and interpretations are effective for annual periods beginning after 1 July 2017, and have not been applied in preparing these financial statements. Those which may be relevant to the Company are set out below. The Company does not plan to adopt these standards early. AASB 9 Financial Instruments AASB 9, approved in December 2014, replaced the existing guidance in AASB 139 Financial Instruments: Recognition and Measurement. AASB 9 includes revised guidance on the classification and measurement of financial instruments, including a new expected credit loss model for calculating impairment on financial assets, and the new general hedge accounting requirements. It also carries forward the guidance on recognition and derecognition of financial instruments from AASB 139. AASB 9 is effective for annual reporting periods beginning on or after 1 January The Company is assessing the potential impact on its financial statements resulting from the application of AASB 9. 14

16 Notes to the financial statements (continued) AASB 15 Revenue from Contracts with Customers AASB 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces existing revenue recognition guidance, including AASB 118 Revenue, AASB 111 Construction Contracts and IFRIC 13 Customer Loyalty Programmes. AASB 15 is effective for annual reporting periods beginning on or after 1 January The Company is assessing the potential impact on its financial statements resulting from the application of AASB 15. AASB 1058 Income of Not-for-Profit Entities AASB 1058 clarifies and simplifies the income recognition requirements that apply to Not-for-Profit entities, in conjunction with AASB 15. AASB 1058 supercedes all the income recognition requirements relating to private sector Not-for-Profit entities, and the majority of income recognition requirements relating to public sector Not-for- Profit entities, previously in AASB 1004 Contributions. The requirements of AASB 1058 more closely reflect the economic reality of Not-for-Profit entity transactions that are not contracts with customers. AASB 1058 is effective for annual reporting periods beginning on or after 1 January The Company is assessing the potential impact on its financial statements resulting from the application of AASB AASB 16 Leases AASB 16 Leases removes the lease classification test and requires all leases (including operating leases) to be brought onto the balance sheet. The definition of a lease is also amended and is now the new on/off balance sheet test for lessees. The future recognition of lease expenses will change, with more expenses recognised in the early periods of a lease, and less in later periods, as there will be a change from the straight line expense currently recognised to front-ended finance charges. There will also be a change in lease expense classification from recognising operating expenses to recognising financing costs and amortisation. AASB16 is effective for annual reporting periods beginning on or after 1 January Early adoption will be permitted for entities that also adopt AASB 15 Revenue from contracts with customers. The Company or the Foundation is not currently intending to adopt this standard early and the extent of the impact has not been determined. 15

17 Notes to the financial statements (continued) 4. Income Donations 3,427,691 2,927,019 Grants and sponsorship 384, ,646 Sale of goods and services 293, ,160 4,105,141 3,576, Personnel expenses Wages and salaries 920, ,508 Increase in liability for annual leave 11, Increase in liability for long service leave 8,117 21,709 Superannuation contributions 94,834 71,428 1,035,431 1,035, Cash and cash equivalents Bank balances 1,593,681 1,518,998 Cash on hand Cash and cash equivalents in the statement of cash flows 1,593,959 1,519,547 Reconciliation of cash flows from operating activities Cash flows from operating activities (Deficit)/surplus for the year 1,102 (487,782) Adjustments for: Depreciation and amortisation expense 36,543 41,990 37,645 (445,792) Change in trade and other receivables (10,709) (1,333) Change in prepayments (3,234) 11,424 Change in trade and other payables 38,474 12,247 Change in employee benefits 19,666 37,023 Net cash (used in)/from operating activities 81,842 (386,431) 16

18 Notes to the financial statements (continued) 7. Trade and other receivables Current Accrued income 19,900 19,633 Net GST receivable 32,459 24,191 Other receivables 60,074 57, , ,724 Non-current Term deposits 61,721 60,415 61,721 60,415 Total 174, , Property, plant and equipment Office equipment $ Cost Balance at 1 July ,666 Additions - Balance at 30 June ,666 Balance at 1 July ,666 Additions - Balance at 30 June ,666 Depreciation Balance at 1 July ,313 Depreciation for the year 10,809 Balance at 30 June ,122 Balance at 1 July ,122 Depreciation for the year 6,496 Balance at 30 June ,618 Carrying amounts At 1 July ,353 At 30 June ,544 At 30 June ,048 17

19 Notes to the financial statements (continued) 9. Intangible assets Computer software $ Cost Balance at 1 July ,696 Acquisitions - Balance at 30 June ,696 Balance at 1 July ,696 Acquisitions 6,124 Balance at 30 June ,820 Amortisation Balance at 1 July ,431 Amortisation for the year 31,181 Balance at 30 June ,612 Balance at 1 July ,612 Amortisation for the year 30,047 Balance at 30 June ,659 At 1 July ,265 At 30 June ,084 At 30 June , Trade and other payables Current Trade payables 131, ,461 Other payables 81,395 66, , ,985 18

20 Notes to the financial statements (continued) 11. Employee benefits Current Liability for annual leave 93,017 81,468 93,017 81,468 Non-current Liability for long-service leave 73,798 65,681 73,798 65, Financial risk management and financial instruments Overview The Company has exposure to the following risks from its use of financial instruments: credit risk; liquidity risk; and market risk. This note presents information about the Company s exposure to each of the above risks and its objectives, policies and processes for measuring and managing risk. (a) (b) Risk management framework The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. As at 30 June 2017 and 30 June 2016, there were no significant concentrations of credit risk. Management of credit risk The Company's cash and cash equivalents are placed with major Australian financial institutions. Past due receivables are actively followed up and losses occur infrequently. There was no impairment in respect of trade and other receivables during the current financial year (2016: nil). Exposure to credit risk The amount of the Company s financial assets represents the maximum credit exposure. The Company s maximum exposure to credit risk at the reporting date was: Note Cash and cash equivalents 6 1,593,959 1,519,547 Trade and other receivables 7 112, ,139 As at 30 June 2017, there were no receivables past due or impaired (2016: nil). 1,706,392 1,681,686 19

21 Notes to the financial statements (continued) 12. Financial risk management and financial instruments (continued) (c) Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. Management of liquidity risk The Company's policy is to regularly monitor current and expected liquidity requirements to ensure that it maintains sufficient reserves of cash to meet its liquidity requirements in the short and longer term. The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements: Note Carrying amount Contractual cash flows 0-30 days days 30 June 2017 Non-derivative financial liabilities Trade and other payables , , , , , , June 2016 Non-derivative financial liabilities Trade and other payables , , , , , ,985 - (d) Market risk Market risk is the risk that changes in market prices will affect the Company's income or the value of its holdings of financial instruments. The Company is exposed to interest rate risk attributable to cash and cash equivalents. Profile of interest rate risk At the reporting date the interest rate profile of the Company s interest-bearing financial instruments was: Note Interest rate range Carrying amount Interest rate range Carrying amount Variable rate instruments Cash and cash equivalents 6 up to 0.7% 1,593,959 up to 2.66% 1,519,547 Fixed rate instruments Term deposits 7 up to 2.36% 61,721 up to 2.55% 60,415 20

22 Notes to the financial statements (continued) 12. Financial risk management and financial instruments (continued) Fair value sensitivity analysis for fixed rate instruments The Company does not account for any fixed rate financial assets and liabilities at fair value through profit and loss. Therefore a change in interest rates at the reporting date would not affect profit or loss. Cash flow sensitivity analysis for variable rate instruments A change of 100 basis points in interest rates at the reporting date would have increased (decreased) the surplus by $16,557 (2016: $15,794). This analysis assumes that all other variables remain constant. The analysis is performed on the same basis for (e) Fair values As at the reporting date, the carrying value of financial assets and liabilities as at the end of the financial year are considered to approximate their fair value due to their short-term nature. 13. Related parties Key management personnel The following were key management personnel of the Company at any time during the reporting period, and unless otherwise indicated, were directors for the entire period: Non-executive directors Peter W Jess Mark G Smith Damien Meredith David Pettigrew Tristan Landers (resigned from the board on 14 July 2016) Rebecca Ong (Appointed 21 September 2016) Michael O Brien (Appointed 8 March 2017) Company secretary Melinda Farrell Key management personnel compensation The following amounts are comprised of the salary paid to the Company secretary and payments made to key management personnel in respect of their work on Clown Doctor training and development and Laughter Works presentations. Non-executive directors are not remunerated for their role as directors of the Company Short-term employee benefits 145, , , ,000 There were no transactions with other key management personnel in 2017 financial year (2016: nil). 21

23 Notes to the financial statements (continued) 14. Subsequent events There have been no events subsequent to balance date which would have a material effect on the Company's financial statements at 30 June Auditor s remuneration Audit services Auditor of the Company KPMG Australia: Audit of financial report 15,000-15,000 - KPMG performed audit services on pro-bona basis for Fundraising appeals conducted during the financial year Fundraising appeals conducted during the financial year ended 30 June 2017 included mail appeals, telephone appeals and various other sundry fundraising projects and general receiving of indirectly solicited donations and bequests. In accordance with section 20 of the Charitable Fundraising (NSW) Act 1991, monies received in the course of fundraising appeals are applied according to the objects or purposes of the appeal net of proper and appropriate expenses. In some circumstances, appeal funds are not always expended in the year they are collected. The Company had a net surplus of $1,102 for the year (2016 deficit: ($487,782)) Result of fundraising appeals Gross proceeds from fundraising appeals 3,427,691 3,058,083 Less: Direct fundraising costs (1,500,636) (1,557,560) Net surplus - public fundraising appeals 1,927,056 1,550,523 Grants 384, ,646 Less: Fundraising costs - - Net surplus corporate grants 384, ,646 Sale of goods and services 293, ,096 Interest income 20,603 28,114 Total other income 313, ,210 Total revenue net of direct fundraising costs 2,625,109 2,047,379 Application of net surplus obtained from fundraising appeals Clown Doctor expenditure (1,520,992) (1,424,020) Laughter Works/Boss Program (25,139) (11,288) Elder Clown (144,996) (123,884) Research (33,112) (55,151) All non-administrative employee costs (414,841) (438,827) Administrative expenses (484,927) (481,990) Net surplus/(deficit) 1,102 (487,782) 22

24 Notes to the financial statements (continued) 16. Fundraising appeals conducted during the financial year (continued) Comparison of certain monetary figures and percentages Direct cost of fundraising/ 1,500,636 1,557,560 Gross income from fundraising 3,427,691 3,058,083 44% 51% Net surplus from fundraising/ 1,927,056 1,500,523 Gross income from fundraising 3,427,691 3,058,083 56% 49% Total projects funded/ 2,139,080 2,053,170 Total expenditure 4,124,642 4,092,720 52% 50% Total projects funded/ 2,139,080 2,053,170 Total income less transfer to reserves 4,125,744 3,604,939 52% 57% 23

25 Directors declaration Directors declaration In the opinion of the directors of The Humour Foundation (the Company): (a) the financial statements and notes that are set out on pages 7 to 23, are in accordance with the Australian Charities and Not-for-profits Commission Act 2012, including: (i) giving a true and fair view of the Company's financial position as at 30 June 2017 and of its performance for the financial year ended on that date; and (ii) complying with Australian Accounting Standards- Reduced Disclosure Regime and the Australian Charities and Not-for-profits Commission Regulation 2013; and (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. Signed in accordance with a resolution of directors. Mark Smith Chairman Dated at Melbourne this 11th day of October

26 Declaration by Chief Executive Officer Declaration by Chief Executive Officer I, Melinda Farrell, Chief Executive Officer of The Humour Foundation, declare in my opinion: (a) the financial report gives a true and fair view of all income and expenditure of The Humour Foundation with respect to fundraising appeal activities for the financial year ended 30 June 2017; (b) the statement of financial position gives a true and fair view of the state of affairs with respect to fundraising appeal activities as at 30 June 2017; (c) the provisions of the Charitable Fundraising Act 1991 and Regulations and the conditions attached to the authority have been complied with for the financial year ended 30 June 2017; (d) the internal controls exercised by The Humour Foundation are appropriate and effective in accounting for all income received and applied from any fundraising appeals. Signed in accordance with a resolution of directors. Melinda Farrell Chief Executive officer Dated at Melbourne this 11th day of October

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