Contents THE CANCER ASSOCIATION OF SOUTH AFRICA Registration No. 1932/003720/08 NPO No. 000-524 NPO ANNUAL FINANCIAL STATEMENTS 31 MARCH 2007 31 Report of the independent auditors 32 Board of Directors report Annual Financial Statements: 33 Balance sheet 34 Income statement 35 Statement of changes in accumulated funds 35 Cash flow statement 36-44 Notes to the annual financial statements Approval of Annual Financial Statements Management is responsible for selecting and adopting sound accounting practices, for maintaining an adequate and effective system of accounting records, for the safeguarding of assets, and for developing and maintaining a system of internal control that, among other things, will ensure the preparation of financial statements that achieve fair presentation. After conducting the appropriate procedures management is satisfied that the organisation will be a going concern for the foreseeable future and have adopted the going concern basis in the preparation of the annual financial statements. The annual financial statements set out on pages 29 to 44 were approved by the Board of Directors on 18 September 2007 and are signed on its behalf by: Dr Precious Moloi Chairperson Mr Moses Sindane Audit Committee Chairperson
QUALIFIED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CANCER ASSOCIATION OF SOUTH AFRICA We have audited the annual financial statements of The Cancer Association of South Africa, which comprise the directors' report, the balance sheet as at 31 March 2007, the income statement, the statement of changes in accumulated funds and cash flow statement for the year then ended, a summary of significant accounting policies and other explanatory notes, as set out on pages 30 to 44. Directors' Responsibility for the Financial Statements The Association's directors are responsible for the preparation and fair presentation of these financial statements in accordance with South African Statements of Generally Accepted Accounting Practice, and in the manner required by the Companies Act of South Africa. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, 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 statements 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 principles used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall financial statement presentation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Qualification 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. Opinion In our opinion, except for the effect of such adjustments, if any, as might have been necessary had we been able to satisfy ourselves as to the completeness of cash collections, the financial statements fairly present, in all material respects, the financial position of The Cancer Association of South Africa at 31 March 2007, and the results of its operations and cash flows for the year then ended in accordance with South African Statements of Generally Accepted Accounting Practice and in the manner required by the Companies Act in South Africa. Deloitte & Touche Per BA Mazarura Partner 18 September 2007 Deloitte & Touche Registered Auditors Buildings 1 and 2, Deloitte Place, The Woodlands Woodlands Drive, Woodmead, Sandton GG Gelink Chief executive AE Swiegers Chief operating officer GM Pinnock Audit DL Kennedy Tax L Geeringh Consulting L Bam Strategy CR Beukman Finance TJ Brown Clients & Markets NT Mtoba Chairman of the Board J Rhynes Deputy Chairman of the Board A full list of partners and directors is available on request 31
BOARD OF DIRECTORS REPORT - 31 MARCH 2007 Nature Of Operations Cancer Association of South Africa (CANSA) is a section 21 company, as define in the Companies Act, 1973 of South Africa. Mission We will substantially reduce the impact of cancer by promoting health in all communities within South Africa, through advocacy and the sustainable facilitation of research, prevention, early detection and care. Vision To strive for a Cancer Smart South Africa by focusing primarily on education to prevent the onset of cancer, while continuing with CANSA s traditional role of caring for and supporting cancer patients and their loved ones. Financial Position The accompanying financial statements reflect the organisation's financial, operational and research activities for the past financial year ending 31 March 2007. Refer to commentary under Going Concern. Contribution Of Volunteers These financial statements cannot reflect the significant contributions made to CANSA by thousands of volunteers throughout South Africa. The Council wishes to express its thanks and gratitude to all of these volunteers. Donations Without the support of corporations, trusts and the public, who so generously donate and bequeath funds to CANSA this organisation could not exist. Major donors are further acknowledged in our annual report. Going Concern It is the opinion of the Board of Directors that the Association is a going concern. The following three major considerations were taken into account in assessing whether the Association will be a going concern for the foreseeable future: The continued focussed to reduce operational costs with 5% and increase service delivery. The implementation of the comprehensive restructuring plan was done in the prior financial year which also focussed on this and is reflected in the current year results. The approved 2005 grant from the National Lotteries Board of R26 million, payable to the Association in the subsequent financial year. No valuation of the freehold land and buildings was performed in the current financial year. The market value of the freehold land and buildings, was valued at R25 493 110 in the prior financial year. There is no intention to dispose of the land and buildings in the forthcoming financial year, but the possibility of selling certain properties in the forthcoming financial year are being considered. National Lotteries Grant The first fifty precent of the 2004 approved grant of R 24,493 million from the National Lotteries Board was received during the financial year. Approval of the 2005 application (R 26,463 million) was received during the financial year, the payment of this grant will only be received in the next financial year. Market value of Fixed Assets Although there is no intention to dispose of any of these Association s assets we draw the attention to the freehold land and buildings which are carried at historical net book value of R7 552 million, which had been valued by independent registered evaluators at R25 493 million at 31 March 2006. The members of the respective committees in office at the date of this report are as follows: Board Of Directors Dr. P. Moloi (Chairperson) S.J. Meyer Resigned October 2006 Dr. G. Landers P. Colditz S. Janse van Rensburg (NED) W. de Wet (CFO) C. Magagula Prof G Ogunbanjo Appointed October 2006 M. Sindane Appointed October 2006 32
BOARD OF DIRECTORS REPORT - 31 MARCH 2007 (Continued) Investment Committee Members Remuneration Committee Members W. Stals (Chairman) P. Colditz (Chairman) W. de Wet (CFO) Dr. G. Landers V. Hickel J. Watson T. Kotzee S. Janse van Rensburg (NED) S. Janse van Rensburg (NED) Audit Committee Members M. Sindane (Chairman) S. Janse van Rensburg (NED) W. de Wet (CFO) V. Hickel J. Davis Post Balance Sheet Events The directors are not aware of any significant events subsequent to the year-end up to the date of the report, not otherwise dealt with in the annual financial statements, which could significantly effect the financial position of the Association at year-end or the results of its operations for the year under review. Registered Office 26 Concorde Road West, Bedfordview, 2008 Secretary W. de Wet THE CANCER ASSOCIATION OF SOUTH AFRICA BALANCE SHEET AT 31 MARCH 2007 Assets Notes Non-current assets 119 803 97 784 Property, plant and equipment 2 11 759 12 081 Investments 3 1 583 1 047 Research funds assets 4 99 850 77 945 Earmarked funds assets 3 6 611 6 711 Current assets 24 407 9 006 Inventory 5 1 113 907 Trade and other receivables 6 17 781 3 966 Cash and cash equivalents 7 5 513 4 133 Total assets 144 210 106 790 Accumulated Funds And Liabilities Accumulated funds and reserves 118 136 91 200 Operational funds and reserves 10 066 2 703 Research funds and reserves 8 108 070 88 497 Other funds 18 700 8 245 National Lotteries Board funds 9 12 089 1 534 Earmarked funds 9 6 611 6 711 Current liabilities 7 374 7 345 Trade and other payables and provisions 7 305 6 766 Bank overdraft 7 69 579 Total accumulated funds and liabilities 144 210 106 790 33
INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2007 Operations Income Notes Fund Development Mail Appeal & Teledonations 3 377 3 103 Corporate & Trusts 4 377 3 067 Grants : Governments 1 824 1 759 Utilisation of Earmarked funds 898 1 982 National & Provincial Projects Toktokkie, Cuppa, Sanlam Golf, Shavathon, Jail & Bail 12 422 12 082 Special Provincial Events 117 184 Other Projects & Events 4 725 7 025 National Lotteries Board grant utilised 13 938 4 041 General Donations & General Income 4 511 4 735 Surplus on disposal of assets 365 116 Hospitium, Cytology, Stoma etc 3 759 3 148 Investment income 650 431 Surplus on investment realisations 1 709 2 800 Surplus on unrealised investments (326) 2 989 52 346 47 462 Expenditure Operational 41 509 63 028 National Lotteries Board project payments 13 939 4 042 Provision for restructuring - 919 55 448 67 989 Interest paid on research loans 412 642 55 860 68 631 Deficit for the year before bequests 10 (3 514) (21 169) Bequests received 10 877 9 051 Surplus / (Deficit) for the year 7 363 (12 118) 34
STATEMENT OF CHANGES IN ACCUMULATED FUNDS FOR THE YEAR ENDED 31 MARCH 2007 Accumulated Operational Funds and Reserves Accumulated Research Funds and Reserves Funds Total Accumulated Funds and Reserves Balance at 1 April 2005 14 821 64 136 78 957 (Deficit) / Surplus for the year restated (12 118) 24 361 12 243 Balance at 1 April 2006 2 703 88 497 91 200 Surplus for the year 7 363 19 573 26 936 Balance at 31 March 2007 10 066 108 070 118 136 THE CANCER ASSOCIATION OF SOUTH AFRICA CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2007 Notes Cash Flows from Operating Activities 5 439 (13 495) Cash received from operating activities 51 118 42 491 Cash paid in operating activities (47 300) (61 564) Cash generated from / (utilised by) operations 14 3 818 (19 073) Investment activities 2 033 6 220 Interest paid (412) (642) Cash Flows from Investing Activities (1 217) 2 247 Acquisition of property, plant and equipment (1 537) (118) Proceeds on disposal of property, plant and equipment 856 308 (Increase) / decrease in investments (536) 2 057 Cash Flows from Financing Activities (2 332) 7 922 (Repayment) / borrowing in research loan (2 115) 8 705 Increase in research accounts payable (217) (783) Net increase / (decrease) in cash and cash equivalents 1 890 (3 326) Cash and cash equivalents at beginning of the year 3 554 6 880 Cash and cash equivalents at the end of the year 15 5 444 3 554 35
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - 31 MARCH 2007 1. Accounting Policies The annual financial statements have been prepared on the historical cost basis, except for investments that are carried at fair value and certain other financial instruments which are carried either at fair value or amortised cost as appropriate and incorporate the following principal accounting policies. These policies are consistent with those applied in the previous year. The financial statements are prepared in accordance with South African statements of Generally Accepted Accounting Practice. 1.1 Accumulated funds The Association is incorporated not for gain. Consequently, in terms of the Memorandum of Association the accumulated funds are non-distributable.these funds may only be used to promote the objects of the Association. 1.2 Revenue Revenue from fundraising, including bequests, is recognised when received Revenue from the sale of goods is recognised upon the delivery of goods to customers. Interest income is recognised on the effective interest rate method taking into account the interest rates applicable to the financial assets. Dividend income is recognised when the right to receive a dividend has been established. Revenue from the rendering of the service is recognised upon the delivery of a service to the customers. All revenue is stated net of Value Added Tax. 1.3 Property, plant and equipment Owner occupied property is stated at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is charged so as to write off the cost on items of property, plant and equipment over its estimated useful life to its estimated residual value. Leasehold property is amortised over the life of the lease. Estimated residual values and estimated useful lives are re-assessed on an annual basis. Furniture, motor vehicles and equipment are depreciated on a straight line basis over their estimated useful lives to their estimated residual values. Land is not depreciated. Freehold buildings 2% Leasehold buildings 2% Furniture and equipment 20% Motor vehicles Residual value & estimated useful lives The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognised in profit or loss. 1.4 Inventory Inventory is stated at the lower of cost, determined on the first-in first-out method, and net realisable value. Cost comprises direct materials and, where applicable, direct labour cost and those overheads that have been incurred in bringing the inventories to their present location and condition. Net realisable value represents the estimated selling price less all estimated cost of completion and cost to be incurred in marketing, selling and distribution. 1.5 Earmarked funds Earmarked funds are administered in terms of the specific conditions applicable to the particular fund. 1.6 Retirement benefits The company contributes to a defined contribution plan. Contributions paid are recognised as an expense in the period that they occur. 1.7 Impairment At each balance sheet date, the Association reviews the carrying value of its tangible assets to determine whether there is any indication that those assets may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount for an individual asset, the recoverable amount is determined for the cash generating unit to which the asset belongs. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of asset is reduced to its recoverable amount. Impairment losses are recognised as an expense immediately. 36
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - 31 MARCH 2007 (Continued) Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in the prior year. A reversal of an impairment loss is recognised as income immediately. 1.8 Provisions Provisions are recognised when the Association has a present obligation as a result of a past event and it is probable that this will result in an outflow of economic benefits that can be reliably estimated. Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the balance sheet date. 1.9 National Lotteries Board grants Lotto grants are accounted for according to AC 134 (Accounting for government grants and the disclosure of government assistance). Lotto grants are recognised when there is reasonable assurance that CANSA complies with the conditions applicable to the grants and the grants will be received. Lotto grants that relate to expenses are recognised as income on a systematic and reasonable basis, over the period necessary to match them with the related costs. 1.10 Leases Leases are classified as financial leases whenever the terms of the lease transfer substantially all risk and rewards of the ownership to the lessee. All other leases are classified as operational leases. Rentals payable under operating leases are charged to profit and loss on a straight-line basis over the term of the relevant lease. Benefits and receivables as an incentive to enter into an operating lease also spread on a straight-line basis over the lease term. 1.11 Financial instruments Financial instruments carried on the balance sheet include cash and bank balances, investments, trade and other receivables, trade and other accounts payable and bank overdraft. These instruments are generally carried at their estimated fair value. The particular recognition methods adopted are disclosed either in the individual policy statements associated with each item or as set out below. Measurement Financial instruments are recognised on the Association's balance sheet when the Association has become a party to contractual provisions of the instruments. All financial instruments are initially measured at cost, which includes transaction costs. Subsequent to initial recognition, these instruments are measured as set out below. Financial Assets Investments Investments are carried at their estimated fair value at the balance sheet date, marketable securities are carried at market value. Increases or decreases in the carrying amount of investments are recognised in the income statement. In the case of the Martin Zadek fund, the increase in the carried amounts are capitalised in accordance with the bequest. Investments received by way of bequest are accounted for at market value at the date on which the bequest is received by the Association. Cash and cash equivalents Cash and cash equivalents are measured at face value which approximates fair value. Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. Trade and other receivables Trade and other receivables are stated at amortised cost less provision for doubtful debts. Due to the short-term nature of the Association s receivables, amortised cost is deemed to equal fair value. Gains and losses on subsequent measurement Gains and losses arising from a change in the fair value of financial instruments that are not part of a hedging relationship are included in net profit or loss for the period in which they arise. Financial Liabilities The Association's financial liabilities compose of borrowing, trade and other payables and bank overdraft. 37
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - 31 MARCH 2007 (Continued) Borrowings Interest-bearing loans are recorded at the proceeds received, net of direct issue costs. Finance charges, including premiums payable on settlement or redemption, are accounted for on an accrual basis and are added to the carrying amount of the instrument to the extent that they are not settled in the year in which they arise. Trade and other payables Trade and other payables are stated at amortised cost. Due to the short-term nature of the Association payables amortised cost is deemed to equal fair value. Bank overdraft Bank overdrafts are recorded at the proceeds received, net of direct issue cost. Finance cost, including premiums payable on the settlement are accounted for on an accrual basis and are added to the carrying amounts to the extent that they are not settled in the period in which they arise. De-recognition Financial assets (or a portion thereof) are de-recognised when the Association realises the rights to the benefits specified in the contract, the rights expire or the Association surrenders or otherwise loses control of the contractual rights that comprise the financial assets. On de-recognition, the difference between the carrying amount of the financial receivable is included in the income statement. Financial liabilities (or portion thereof) are de-recognised when the obligation specified in the contract is discharged, cancelled or expire. On de-recognition, the difference between the carrying amount of the financial liability, including related unamortised cost, and amount paid for it is included in the income statement. Offset Where a legally enforceable right of offset exist for recognised financial assets and financial liabilities and there is an intention to settle the liability and realise the asset simultaneously, or to settle on the net basis, all related financial effects are offset. Carrying amounts The directors consider that the carrying amounts of financial instruments approximate their fair values. Credit risk management Potential concentrations of credit risk consist principally of cash investments and trade accounts receivable. The company deposits cash surpluses only with major banks of high quality credit rating. Liquidity risk management The company manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are maintained. 1.12 Critical judgements in applying the Association's accounting policies In the process of applying the Association's accounting policies, management had made no judgements that had the a significant effect on the amounts recognised in the financial statements. The period over which each grant is recognised, is based on each grant specification. 1.13 Key sources of uncertainty The key assumptions concerning the future, and other key sources of estimation at the balance sheet date, that had a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are discussed below: 38 Going Concern It is the opinion of the Board of Directors that the Association is a going concern. The following three major considerations were taken into account in assessing whether the Association will be a going concern for the foreseeable future: The continued focussed to reduce operational costs with 5% and increase service delivery. The implementation of the comprehensive restructuring plan was done in the prior financial year which also focussed on this and is reflected in the current year results. The approved 2005 grant from the National Lotteries Board of R26 million, payable to the Association in the subsequent financial year. No valuation of the freehold land and buildings was performed in the current financial year. The market value of the freehold land and buildings, was valued at R25 493 110 in the prior financial year. There is no intention to dispose of the land and buildings in the forthcoming financial year, but the possibility of selling certain properties in the forthcoming financial year are being considered.
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - 31 MARCH 2007 (Continued) 2. Property, Plant And Equipment 2007 Accumulated Carrying Cost depreciation value Freehold land and buildings 10 067 2 515 7 552 Leasehold land and buildings 2 900 1 505 1 395 Furniture and equipment 6 092 4 724 1 368 Motor vehicles 3 617 2 173 1 444 At the end of the year 22 676 10 917 11 759 2006 Freehold land and buildings Leasehold land and buildings Furniture and equipment Motor vehicles At the end of the year 9 372 2 327 7 045 2 900 1 454 1 446 5 822 3 973 1 849 4 220 2 479 1 741 22 314 10 233 12 081 Cost Freehold Leasehold Furniture land and land and and Motor buildings buildings equipment vehicles Total At beginning of year 9 372 2 900 5 822 4 220 22 314 Additions for the year 750-328 459 1 537 Disposals (55) - (58) (1 062) (1 175) At the end of the year 10 067 2 900 6 092 3 617 22 676 Accumulated depreciation At beginning of year 2 327 1 454 3 973 2 479 10 233 Depreciation 193 51 771 353 1 368 Disposals (5) - (20) (659) (684) At the end of the year 2 515 1 505 4 724 2 173 10 917 Registers of Property and Investments A register of land and buildings and of listed, unlisted and other investments is available for inspection by members at the Association's registered office. Market value of fixed assets - Freehold Land and Buildings. Freehold land and buildings at carrying value (cost less accumulated depreciation) of R 7 551 596 was valued at market value of R 25 493 110 at 31 March 2006. 39
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - 31 MARCH 2007 (Continued) 3. Investments And Earmarked Funds Assets 3.1 Investments - fair value Listed investments - at market value 6 270 6 612 Unlisted investment - at directors valuation 1 924 1 146 8 194 7 758 3.2 Investment - at cost Listed investments 3 607 3 623 Unlisted investments 1 924 1 146 5 531 4 769 Surplus on unrealised investments 2 663 2 989 3.3 Allocation of investments Investments - at fair value 8 194 7 758 Relating to Association s investments (1 583) (1 047) Relating to earmarked funds 6 611 6 711 The director s valuation of unlisted investments approximates the fair value of the investments. 4. Research Funds Assets 4.1 Fund assets at fair value Listed investments 84 124 66 025 Unlisted investments 15 726 11 920 99 850 77 945 Loan to CANSA operations 9 220 11 335 109 070 89 280 4.2 Fund assets - at cost value Listed investments 34 327 25 388 Unlisted investments 15 726 11 920 Loan to CANSA operations 9 220 11 335 59 273 48 643 Loans from research funds will be repaid depending on the operational requirements and cash flows of the Association. The loans bear interest at 6% for 2007 (2006-6%). 5. Inventory 40 Merchandise 1 113 907
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - 31 MARCH 2007 (Continued) 6. Trade And Other Receivables National Lotteries Board 12 247 - Amounts receivable from patients 1 376 1 584 Staff Loans receivable 86 109 Seal of recognition royalties receivable 344 189 VAT receivable 1 478 1 271 Sundry receivables 2 250 813 17 781 3 966 The directors consider that the carrying amount of trade and other receivables approximates their fair value. 7. Cash And Cash Equivalents Cash on hand and at bank 5 513 4 133 Bank overdraft (69) (579) Cash and cash equivalents comprise cash held by the Association's and short-term bank deposits with an original maturity of three months or less. The carrying amount of these assets approximates their fair value. 8. Research Funds Notes 8.1 Research fund portfolios Martin Zadek 23 596 21 149 C.V. Lamont 58 537 49 025 P & R Ainslie 40 40 E/L H E Griffin 900 900 Bequests earmarked for research 25 997 18 166 Bequest funds 24 997 17 383 Accounts payable 1 000 783 109 070 89 280 8.2 Movement in research funds Balance at beginning of the year 88 497 64 136 Net movement on research funds 11 19 573 24 361 Accumulated funds and reserves 108 070 88 497 Accounts Payable 1 000 783 Balance at end of year 109 070 89 280 Accounts Payable comprise of R 1 000 000 capital for CARISA. 41
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - 31 MARCH 2007 (Continued) 9. Earmarked Funds 9.1 Allocation of earmarked funds National Lotteries Board 12 089 1 534 Health Promotion 247 1 669 Patient Care 4 220 3 332 Assets 881 1 196 Research 321 187 Other 942 327 18 700 8 245 9.2 National Lotteries Board Balance at beginning of the year 1 534 5 575 Earmarked funds receivable 24 493 - Earmarked funds utilised (13 938) (4 041) Balance at end of the year 12 089 1 534 9.3 Movement in earmarked funds Balance at beginning of the year 6 711 9 909 Earmarked funds received 798 1 020 Earmarked funds utilised (898) (4 218) Balance at end of the year 6 611 6 711 10. Deficit For The Year Before Bequests: Staff costs 31 468 39 434 Directors / Senior management remuneration - Executive 1 111 1 486 Directors remuneration - Non Executive 90 178 Depreciation 1 368 1 113 Auditors - fees 679 373 Current year 577 373 Prior year 102 - Surplus on disposal of property, plant and equipment (365) (116) 42
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - 31 MARCH 2007 (Continued) 11. Research Income Statement Income Notes Investment income Dividends 1 751 1 458 Interest received 1 442 678 Interest received from CANSA operations 412 642 Surplus on investments 17 560 21 878 Bequests 2 777 983 Trust income and other income 606 3 282 24 548 28 921 Expenditure Grants 3 491 3 392 Research 3 491 3 392 Investment advisor's fees 440 356 Consultants 173 82 Staff costs 392 294 Travel and accommodation 41 20 Administration cost 413 406 Balance of other expenditure 25 10 4 975 4 560 Net movement on research fund 8 19 573 24 361 12. Leave Pay Provision Provision at the beginning of the year 1 835 730 Movements during the year 70 624 Under provision - 481 Provision at the end of the year 1 905 1 835 13. Provision For Restructuring Provision for the payment of retrenchment and - 919 restructuring cost, approved at the Board of Director's meeting held on 18 January 2006. 43
NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2007 14. Reconciliation Of Surplus/(deficit) For The Year To Cash Generated From/(utilised By) Operations Surplus / (Deficit) for the year 7 363 (12 118) Adjustment for :- Depreciation 1 368 1 113 Surplus on disposal of property, plant and equipment (365) (116) Investment Activities (2 033) (6 220) Interest paid 412 642 Cash generated from / (utilised by) operations before changes in working capital 6 745 (16 699) (Increase) / decrease in inventory (206) 78 (Increase) / decrease in trade and other receivable (13 815) 663 Increase in trade and other payables and provisions 539 926 Increase / (decrease) in National Lotteries Board funds 10 555 (4 041) Cash generated from / (utilised by) operations 3 818 (19 073) 15. Cash And Cash Equivalents Bank balances and cash 5 513 4 133 Bank overdraft (69) (579) 5 444 3 554 16. Retirement Fund Contributions The Cancer Association pension fund is a defined contribution plan. The funds are governed by the Pension Funds Act of 1956. All employees contribute to a fund. Number of pension fund members 224 265 Pension fund contribution for the year 3 782 4 660 17. Capital Commitments There are no capital commitments at year end (2006 : R nil). 18. Contingent Liabilities There are no contingent liabilities (2006 : R nil). 19. Taxation The Association is exempt from tax in terms of section 10 of the Income Tax Act. 44 20. Related Party Transactions The remuneration of directors and key executives is determined by the shareholders having regard to the performance of individuals and market trends as set out in note 10. These consist of salaries and other short-term employee benefits as per note 1.8.