W"T The Salvation Army Australia Eastern Territory THE SALVATION ARMY (AUSTRALIA) ABN 52 609 689 893 ANNUAL FINANCIAL REPORT 2015
Contents THE SALVATION ARMY (AUSTRALIA) Financial report - 30 June 2015 Income statement Balance sheet Statement of changes in capital reserves and accumulated funds Table of cash movements for designated purposes Self Denial Funds for Overseas Aid Note 1: Basis of preparation Trustees declaration Independent audit report to the Trustees Page 1
Income statement for the year ended 30 June 2015 REVENUE Donations and gifts 2015 2014 Monetary 3,377,380 3,416,158 Non-monetary Bequests and legacies Grants Department of Foreign Affairs and Trade 1,150,743 1,148,714 Other Australian Other overseas Investment income 169,845 181,389 Other income 2,639,304 * 982,218 Revenue for international political or religious proselytisation programs 300,000 300,000 Total Revenue 7,637,272 6,028,479 Expenditure International aid and development programs expenditure International programs Funds to international programs 5,124,266 4,520,297 Program support costs Community education Fundraising costs Public 126,907 72,688 Government, multilateral and private Accountability and administration 1,007,263 1,358,917 Non monetary expenses Total international aid and development programs expenditure 6,258.436 5 951 902 Expenditure for international political or religious proselytisation programs 819,939 519,663 Domestic programs expenditure Total expenditure 7,078,375 6,471,565 Excess / (Shortfall) of revenue over expenditure 558,897 (443,04.) Note: " 2015 Includes $223,233 Support Funding from The Salvation Army Eastern Territory to cover the shorfall of The Salvation Army Internation Development Office (SAID). Page 2
Balance Sheet as at 30 June 2015 2015 2014 ASSETS Current Assets Cash and cash equivalents 4,031,324 Trade and other receivables 118,398 Inventories Assets held for sale Other financial assets 2,683,726 Total current assets 6,833,448 3,992,041 189,678 2,082,073 6,263,792 Non Current Assets Trade and other receivables Other financial assets Property, Plant and Equipment Investment property Intangibles Other non-current Total non current assets Total Assets 2,885 4,847 2,885 4,847 6,836,333 6,268,639 LIABILITIES Current Liabilities Trade and other payables 14,794 4,641 Borrowings Current tax liabilities Other financial liabilities Provisions 26,748 24,300 Other Total current liabilities 41,542 28,941 Non Current Liabilities Borrowings Other financial liabilities Provisions 29,051 32,855 Other Total non current liabilities 29,051 32,855 Total Liabilities 70,593 61,796 Net Assets 6,765740 6,206,843 EQUITY Reserves 6,765,740 6,206,843 Retained earnings Total Equity 6,765,740 6,206,843 Page 3
Statement of changes in capital reserves and accumulated funds Retained Earnings Reserves Other Total Balance at 2014 6,206,843-6,206,843 Adjustments or Changes in equity - - - Items of other comprehensive income - - - _ Shortfall of revenue over expenses _ Amount transferred to reserves 558.897-558.897 Balance at 2015-6,765,740-6,765,740 Page 4
Table of cash movements for designated purposes for the year ended 30 June 2015 Cash available at Cash Cash Cash beginning of raised disbursed available year during during year at end of $'000 year $ 000 $'000 year $000 Self Denial Appeal 2,475 2,700 2,714 2.461 Child sponsorship appeal 487 49 Vanuatu Appeal 1,044 880 164 Australian NGO 11?lh 1 11th Cooperation program Total for other non- ' 1 IS fl-1 1 MT/ 1 MM1 1.i1111 designated purposes Total 3,992 7,117 7,078 4,031 Code of conduct ACFID We are a signatory to the Australian Council for International Development's Code of Conduct. Further information on the Code and its complaints handling procedure is available at warvu.scrid.asn.ala The Financial Reports have been prepared in accordance with the requirements set out in the ACFID Code of Conduct. For further Information on the Code please refer to the ACFID Code of Conduct Guidance Document available at www add asn.au The annual report for The Salvation Army Australia Eastern International Development Office (SAID) is available at www.salvos.orgatotaki, Page 5
The Salvation Army (Australia) Self Denial Fund (For Overseas Aid) exists for the purpose of providing aid to developing countries and support funding for Salvation Army Grant Aided Territories, The Trustees of The Salvation Army Australia Eastern Territory are the members of the Governing Body for the Self Denial Fund for Overseas Aid. The following persons were Trustees of The Salvation Army (Australia) Eastern Territoty Self Denial Fund for Oversreas Aid during the financial year; Trustee Commissioner J Condon Colonel R Munn Colonel M Campbell Mr IC Minnett Period 1 Jul 14 to 30 Jun 15 1 Jul 14 to 30 Jun 15 8 Jan 15 to 30 Jun 15 1 Jul 14 to 30 Jun 15 Qualifications BA Edu, M.Div Theology, DMin Christian Leadership B Admin & Leadership, MA Theology BCom, FCA, GAICD The countries which received overseas aid during 2014/15 financial year are summarised as follows: DFAT Projects Kenya 532 398 Kenyan Integrated Schools and Communities Water,, Sanitation and Hygiene Project Papua New Guinea 944 740 The Church Partnership Program - This funding is for 30 projects throughout PNG - under the headings of: Governance of Churches, Management, Human Resource. P!lysical Resource, Pfanning, Monitoring & Evaluation, Education, Health, HIV/AIDS, Community Development 1,477,138 Child Sponsorship Argentina Bangladesh Belize Brazil Caribbean Dominican Republic Fiji Ghana Haiti India Central India Eastern Indonesia Kenya-East Kenya-West Latin America Mozambique Pakistan Paraguay Philippines PNG Singapore South Africa Sri Lanka Tanzania Uganda Zambia 1,685 15,149 3,315 11,724 11,516 1,704 12,079 15,297 19,535 1,781 5,870 27,932 122,432 20,202 5,022 27,451 10,405 5,831 20,742 25,169 39,828 21,738 10,054 11,142 33,480 5,936 487,019 Page 6
Overseas Projects funded by Self Denial Appeal and other donations Bangladesh 1,000 Caribbean 3,081 China 65,918 Congo 6,241 Fiji 26,940 Ghana 46,756 Haiti 14,423 IHO International Projects 884,981 India Eastern 16,191 India Northern 420,481 Indonesia 72,629 Kenya-East 107,778 Kenya-West 10,478 Malawi 63,316 Mozambique 1,337 Myanmar 42,838 Nepal 250,000 Pakistan 109,440 Philippines 390,862 PNG 103,068 Russia 21,027 South Africa 8,747 Taiwan 48,877 Tanzania 376,060 Vanuatu 880,032 Other 7,547 3,980,048 Total 5,944,205 Page 7
Note 1: Basis of preparation The Statements presented for The Salvation Army (Australia) Self Denial Fund for Overseas Aid Eastern Territory, which comprises the balance sheet as at 30 June 2015, the income statement, statement of changes in capital reserves and accumulated funds, table of cash movements for designated purposes for the year ended 30 June 2015 (-the Statements") have been prepared by the Trustees based on the Australian Council for International Development's (ACFID) code of conduct (the "Code"), for the purpose of fulfilling The Salvation Army's reporting requirements to ACFID, and must not be used for any other purpose, The Statements have been prepared applying the recognition and measurement rules in Australian Accounting Standards The Trustees of the Salvation Army have determined that the accounting policies adopted are appropriate to meet the needs of the Trustees of the Salvation Army and the ACFID and have determined that it is not necessary to include all the detailed disclosures, including a statement of cash flows, required by Accounting Standards and other mandatory professional reporting requirements in Australia. The financial report is prepared in accordance with the historical cost convention. Page 8
Trustees' declaration 30 June 2015 In the opinion of the Trustees of The Salvation Army's Self Denial Fund for Overseas Aid Eastern Territory: (a) the financial statements and notes as set out on pages 2 to 8: (i) comply with Australian Accounting Standards as applicable; and (ii) give a true and fair view of the financial position as at 30 June 2015 and of the performance for the year ended on that date The Salvation Army's Self Denial for Overseas Aid Eastern Territory; in the Trustees opinion there are reasonable grounds to believe that The Salvation Army's Self Denial Fund for Overseas (b) Aid Eastern Territory will be able to pay its debts as and when they become due and payable. Signed in accordance with a resolution of the Trustees. Commissioner James Condon Ian C Minnett (B Com, FCA, GAICD) Territorial Commander Trustee Sydney, 29 October 2015 Chief Financial Officer Trustee Sydney, 29 October 2015 Page 9
Independent audit report to the Trustees of The Salvation Army (Australia) Self Denial Fund (For Overseas Aid) We have audited the financial report of The Salvation Army (Australia) Self Denial Fund (for Overseas Aid) Eastern Territory, which comprises the balance sheet as at 30 June 2015, the income statement, statement of changes in capital reserves and accumulated funds, table of cash movements for designated purposes for the year ended 30 June 2015, ("the Statements") of the Self Denial Fund for Overseas Aid. The Statements have been prepared by the Trustees based on the Australian Council for International Development's (ACFID) code of conduct (the "Code"), for the purpose of fulfilling The Salvation Army's reporting requirements to ACFID, using the basis of preparation described in Note 1 to the Statements. Trustees' responsibility for the Statements The Trustees of the The Salvation Army are responsible for the preparation and fair presentation of the Statements in accordance with the Code, and have determined that the basis of preparation in Note 1 to the Statements are appropriate to meet the requirements of ACFID. This responsibility includes selecting and applying appropriate accounting policies, making accounting estimates that are reasonable in the circumstances, ensuring the Statements are prepared and presented fairly in all material respects, in accordance with the Code and for such internal control as the Trustees determine is necessary to enable the preparation and fair presentation of the Statements that are free from material misstatement, whether due to fraud or error. Auditor's responsibility Our responsibility is to express an opinion on the Statements to the Trustees of The Salvation Army based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements and plan and perform the audit to obtain reasonable assurance whether the statements is free from material misstatement. An audit involves perfonning procedures to obtain audit evidence about the amounts and disclosures in the statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the 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 in order to design audit procedures that arc 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 the accounting policies used and the reasonableness of accounting estimates made by the Trustees, as well as evaluating the overall presentation of the statements. Our procedures included the examination on a test basis, of evidence supporting the amounts disclosed in the Statements. These procedures have been undertaken to form an opinion whether, in all material respects, the attached Statements are prepared and presented fairly in all material respects, in accordance with the Code, using the basis of preparation described in Note 1 to the Statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 10 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International"), a Swiss entity. Liability limited by a scheme approved under Professional Standards Legislation,
Auditor's opinion In our opinion the attached Statements for the year ended 30 June 2015 are prepared and presented fairly, in all material respects, in accordance with the Code. Independence In conducting our audit, we have complied with the independence requirements of the Australian Accounting Professional and Ethical Standards Board Basis of accounting Without modifying our opinion, we draw attention to Note 1 to the statements, which describe the basis of preparation. The statements has been prepared as required by the Code for the purpose of reporting to ACRD. As a result, the statements may not be suitable for another purpose. ir,/14 KPM Daniel Robinson Director Sydney 29 October 2015 11