Concise Financial Report for the Inspire Foundation Jeff Cooney - Finance Manager 2/2/2011
Concise Financial Report This concise financial report is an extract derived from the full financial report of the Inspire Foundation for operations to the period ending 30 June. The financial statements and disclosures included in the concise financial report have also been derived from the full financial report. The concise financial report cannot be expected to provide as full an understanding of the financial performance, financial position, financing and investing activities of the Inspire Foundation as would be provided by the full financial report.* * Further financial information can be obtained from the full financial report which is available from www.inspire.org.au or by calling (02) 8585 9300 and asking to speak to Jeff Cooney. All figures are in Australian dollars. Note 1 Extract from Notes to the Financial Statements % 2009 2009 % Direct cost of fundraising 21,532 1.14 162,514 8.08 (non-project related including relevant wage expense and excluding grant costs) Gross income from fundraising (excluding government grants) 1,892,243 2,011,773 Total cost of service provided (including employee costs) 4,102,359 99.48 4,273,744 96.34 Total expenditure 4,123,891 4,436,258 2 inspire.org.au
Discussion and Analysis Review of Operations Inspire continued to deliver on its mission of helping young people lead happier lives. Through two national programs, Inspire connected young people to information, support and resources to improve their mental health and wellbeing and meaningfully engage with their communities. Considerable analysis of organisational infrastructure was undertaken including technology systems, operational processes and organisational structure. Improvements were made to each of these key areas to increase the efficiency, scale and quality of Inspire s services. Additionally, there was an increased focus on organisational sustainability, including diversifying income streams and increasing self-generated income. The operating result for the year saw a modest surplus of 98,081(2009: 13,523). Overall, the income of the Foundation decreased by approximately 4% (176k), versus the 2009 income of 4.31m. General donations increased by 12% over 2009, whilst Government Grant income was 5.3% higher than 2009. However most other income areas were considerably lower than 2009 because of the refocusing of our activities during. There was an aggregate reduction in expenditure of 312,368(7%) from the 2009 financial year. The total expenditure for the year was 4.12m, which includes direct costs of fundraising of 21,532 and other costs of 4,102,359 (2009: 162,514 and 4,273,744 respectively). The only significant change in the balance sheet was the large increase in cash holdings at 30 June. This increase was driven by the receipt of 770k in grants in May and June that were then held over for use in the -11 financial year, and the reduction in organisation expenditure for. Total cash holdings rose by 629,830 in. Unspent Grant funds increased by 499,038. This was attributable to funds being received in May and June for projects that were not commenced in the year. Accumulated funds increased to 1.10m, an increase of 98,081 over the year which is attributable to the operating surplus. 3 inspire.org.au
Statement of Comprehensive Income for the year ended 30 June 2009 Revenue 4,133,195 4,309,629 Employee and Consultant expenses (2,320,110) (2,229,630) Marketing and Fundraising expenses (757,758) (781,269) Administration expenses (307,612) (336,935) Travel expenses (150,986) (263,057) Website development and maintenance (342,473) (513,160) Premises expenses (191,287) (218,283) Depreciation expenses (53,664) (93,924) Total expenses (4,123,890) (4,436,258) Surplus/(Deficit) from operating activities 9,305 (126,629) Financial income 88,776 140,152 Total Comprehensive Income for the year 98,081 13,523 Statement of changes in Equity for the year ended 30 June 2009 Net income recognised directly in accumulated funds 1,006,839 993,316 Operating surplus for the year 98,081 13,523 Prior year adjustments (295) 0 Total recognised income and expense for the year 1,104,625 1,006,839 The prior year adjustments reflect a discrepancy in the 2009 financial statements. 4 inspire.org.au
Balance Sheet as of 30 June 2009 Current assets Cash and cash equivalents 2,780,695 2,150,865 Trade and other receivables 391,038 381,338 Total current assets 3,171,733 2,532,203 Non-current assets Plant and equipment 118,029 142,573 Total non-current assets 118,029 142,573 Total assets 3,289,762 2,674,776 Current liabilities Trade and other payables 174,456 161,811 Unspent project grants 1,794,554 1,295,516 Employee benefits 180,651 177,508 Total current liabilities 2,149,661 1,634,835 Non current liabilities Employee benefits 34,376 32,002 Provisions 1,100 1,100 Total non-current liabilities 35,476 33,102 Total liabilities 2,185,137 1,667,937 Net assets 1,104,625 1,006,839 Accumulated funds Accumulated surplus 1,104,625 1,006,839 Total accumulated funds 1,104,625 1,006,839 5 inspire.org.au
Statement of Cash Flows for the year ended 30 June 2009 Cash flows from operating activities Cash receipts from customers 4,230,497 4,029,770 Cash payments to suppliers and employees (3,661,011) (4,531,391) Interest received 88,776 140,152 Net cash provided by operating activities 658,262 (361,469) Cash flows from investing activities Acquisition of plant and equipment (28,432) (8,885) Net cash used in investing activities (28,432) (8,885) Net increase in cash held 629,830 (370,354) Cash at the beginning of the year 2,150,865 2,521,219 Cash at the end of the year 2,780,695 2,150,865 6 inspire.org.au
Income Sources 09/10 Corporate Individuals 9% 8% 19% Community 11% Consultancy 40% 12% Government Foundations 1% Other Program Expenditure 09/10 29% ReachOut.com 71% ActNow.com.au 7 inspire.org.au
Chief Executive Officers Declaration in respect of fundraising appeals I, Jonathan Nicholas, Chief Executive Officer of Inspire Foundation, declare in my opinion: 1. the financial report gives a true and fair view of all income and expenditure of Inspire Foundation with respect to fundraising appeal activities for the financial year ended 30 June ; 2. 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 ; 3. the provisions of the Charitable Fundraising (NSW) Act 1991 and regulations and the conditions attached to the authority have been complied with for the financial year ended 30 June ; and 4. the internal controls exercised by Inspire Foundation are appropriate and effective in accounting for all income received and applied from any fundraising appeals. Dated at Sydney this 15 th day of November. Jonathan Nicholas CEO 8 inspire.org.au
Directors declaration In the opinion of the directors of the company: 1 The financial statements and notes, set out on pages 5 to 21 are in accordance with the Corporations Act 2001, including: a. giving a true and fair view of the financial position of the company as at 30 June and of the performance, as represented by the results of its operations and its cash flows, for the year ended on that date; and b. complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; 2 There are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. 3 The financial report gives a true and fair view of all income and expenditure of Inspire Foundation with respect to fundraising appeal activities for the financial year ended 30 June. 4 The balance sheet gives a true and fair view of the state of affairs with respect to fundraising appeal activities as at 30 June. 5 The provisions of the NSW Charitable Fundraising Act 1991 and Regulations and the conditions attached to the authority/licence have been complied with for the financial year ended 30 June ; and 6 The internal controls exercised by Inspire Foundation are appropriate and effective in accounting for all income received and applied from any fundraising appeals. Dated at Sydney this 30 th day of November. Signed in accordance with a resolution of the directors. Mark Mentha Director 9 inspire.org.au
Independent audit report to the members of Inspire Foundation We have audited the accompanying financial report of Inspire Foundation for the financial year ended 30 June, which comprises the balance sheet as at 30 June and the income statement, statement of recognised income and expense and cash flow statement for the year then ended, a summary of significant accounting policies, other explanatory notes 1 to 21 and the directors declaration. Director s responsibility for the financial report The directors of the Company are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility also includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is 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 the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial report, 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 report 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 policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We performed the procedures to assess whether in all material respects the financial report presents fairly, in accordance with the Corporations Act 2001 and Australian Accounting Standards (including the Australian Accounting Interpretations), a view which is consistent with our understanding of the Company s financial position and of its performance. In addition, our audit report has also been prepared for the members of the company in accordance with Section 24(2) of the Charitable Fundraising (NSW) Act 1991. Accordingly we have performed additional work beyond that which is performed in our capacity as auditors pursuant to the Corporations Act 2001. These additional procedures included obtaining an understanding of the internal control structure for fundraising appeal activities and examination, on a test basis, of evidence supporting compliance with the accounting and associated record keeping requirements for fundraising appeal activities pursuant to the Charitable Fundraising (NSW) Act 1991 and Regulations. It should be noted that the accounting records and data relied upon for reporting on fundraising appeal activities are not continuously audited and do not necessarily reflect after the event accounting adjustments and the normal year end financial adjustments for such matters as accruals, prepayments, provisioning and valuations necessary for year end financial report preparation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 10 inspire.org.au
Auditor s opinions Auditor s opinion pursuant to the Corporations Act 2001 In our opinion, the financial report of Inspire Foundation is in accordance with: a) the Corporations Act 2001, including: i. giving a true and fair view of the company s financial position as at 30 June and of its performance for the year ended on that date; and ii. complying with Accounting Standards in Australia and the Corporations Regulations 2001; and b) other mandatory professional reporting requirements in Australia. Auditor s opinion pursuant to the Charitable Fundraising (NSW) Act 1991 In our opinion: a) the financial report gives a true and fair view of the financial result of fundraising appeal activities for the financial year ended 30 June ; b) the financial report has been properly drawn up, and the associated records have been properly kept for the period from 1 July 2009 to 30 June, in accordance with the Charitable Fundraising (NSW) Act 1991 and Regulations; c) money received as a result of fundraising appeal activities conducted during the period from 1 July 2009 to 30 June has been properly accounted for and applied in accordance with the Charitable Fundraising (NSW) Act 1991 and Regulations; and d) there are reasonable grounds to believe that Inspire Foundation will be able to pay its debts as and when they fall due. Jacoby Cameron & Co Grant Thomson Partner Sydney 15th November 11 inspire.org.au
Lead auditor s independence declaration under Section 307C of the Corporations Act 2001 To: The directors of Inspire Foundation I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year ended 30 June there have been: no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and no contraventions of any applicable code of professional conduct in relation to the audit. Jacoby Cameron & Co Grant Thomson Partner Sydney 15 November 12 inspire.org.au