Until there's a cure ... there's care

Annual and Audited Financial Report for the year ended 30 June 2018

VISION, MISSION AND OBJECTIVES

Vision

Working towards a world without MND.

Mission Statement

Provide and promote the best possible care and support for people living with MND.

“People living with MND” includes people who have been diagnosed, those yet to be diagnosed, carers, former carers, families, friends, workmates and any other person whose life is, or has been, affected by a diagnosis of MND."

Objectives

  1. To provide the best possible support for people living with
  2. To gather and share advice on living with
  3. To create and foster a caring link between people living with MND by providing opportunities for
  4. To raise awareness of MND and the needs it
  5. To develop and maintain relations with MND Associations within Australia and
  6. To foster and maintain links that can help us achieve our
  7. To encourage and support research initiatives and disseminate knowledge of research progress.
  8. To work towards best practice in achieving our

Values

  • Our service is to people living with MND, above all else. We do not undertake anything that does not contribute to improving quality of life for people living with
  • We respect and value the contribution made by each and every member of the MND community and give full consideration to their
  • We support, encourage and value innovation that improves opportunity and quality of outcomes.
  • We share absolute integrity and are ethical in our

The Cornflower

The blue cornflower is the symbol of hope for people living with MND – hope for finding the cause; hope for development of treatments, and for cure. The cornflower represents positive hope for the future – a future without MND.

THE ASSOCIATION

The Motor Neurone Disease Association of Victoria is an Association incorporated under the Associations Incorporation Reform Act 2012 (Victoria) as amended – Registered Association A7518. It is a member of the Motor Neurone Disease Association of Australia (Inc), Palliative Care Victoria (Inc), Victorian Council on Social Service (VCOSS) and NDS (National Disability Services) Inc, peak bodies in MND, palliative care, social services and disability services respectively.

MND Victoria is a registered National Disability Insurance Scheme (NDIS) provider, Number 53996591, for a range of specified supports in Victoria, New South Wales and Tasmania.

The Association’s activities are governed by a constitution approved by the members and registered under the Associations Incorporation Reform Act 2012 (as amended).

STATE COUNCIL

The Association is governed by a body called the State Council which is elected by and from the members of the Association.

State Council is made up of twelve positions. Under the terms of the Association’s Constitution, six positions on State Council are identified for people living with MND, carers, former carers or close associates, such people having a “personal association with MND”. Members of the Association who wish to make a contribution to people living with MND through effective governance of, and policy direction for, the Association nominate for and are elected to the other positions.

Members of the Association are people living with MND, former carers accepting complimentary membership, individuals paying the membership fee, and people receiving honorary membership in accordance with the Constitution.

State Council 2017/2018

David Lamperd – Chairman*
Katherine Barnett – Vice Chairman*
Jeremy Urbach – Treasurer*
David Ali Duncan Bayly*
Chris Beeny
Barry Gunning
Jodie Harrison*
Angeline Kuek
Wayne Pfeiffer*
Chloe Williams

(Names marked * have a personal association with MND)

Positions on State Council fall vacant by rotation, with four (4) positions becoming vacant each year. Nominations are called via the Association’s newsletter – MNDNews – or by mail to members, and elections are conducted and the results announced at the Annual General Meeting. State Council identifies skills, attributes and capacities that will assist it in fulfilling its functions of governance and policy setting, and recruits individuals to fill casual vacancies in accordance with the Constitution. A review of skills and experience was conducted in 2015/16 and a skills matrix developed. This identified a need to improve the gender balance on State Council. It was agreed to advertise vacancies and recruit appropriately qualified people to State Council. This recruitment was concluded in 2016/17 with the appointment of three new State Councillors. Face to face meetings are held on the third Monday of each month. This year, Council met ten times in formal session. The need for meetings in December and January is determined from time to time based on the issues to hand.

The Association’s activities are conducted in accordance with the Victorian Department of Health and Human Services’ Standards, and ISO 9001 in relation to management and governance, through the Association’s Quality Management System. State Council has developed governance policies which supplement the Constitution in the governance of the Association. These are complimented by operational policies, implemented by the Chief Executive Officer, which guide the operations of the Association. The Quality Management System, governance and operational policies are available for perusal at the Association’s office, and copies of specific policies related to issues of interest or concern of members or clients can be provided on request.

State Council determines the overall direction, operational parameters and establishes policy for the Association through its governance responsibilities and processes. It also manages the risk profile of the Association in investments and operations. It monitors and reviews the performance of the Chief Executive Officer. The Chief Executive Officer, in consultation with staff, is responsible for day-to-day management and operations of the Association, achievement of Association and State Council objectives, and monitors and reviews the performance of staff.

An annual agenda of key tasks is maintained.  A wide range of issues are considered and reviewed by State Council throughout the year. These include analysis of the environment the Association is operating within; strategic direction of governments, both State and Federal; relationships with MND Australia; monitoring of Association performance, including financial management, service delivery, new service options and strategic planning and initiatives. Budget, income and expenditure analysis and review is undertaken monthly, with the budget approved in June each year for the following financial year. These issues are underpinned by the needs of people living with MND, both now and in the future. State Council closely monitors reports on occupational health and safety (OH&S) – a key responsibility we hold is to ensure that volunteers and staff work in a safe and protected environment. OH&S is a major component of the Association’s Quality Management System. A program of activities regarding OH&S is undertaken throughout the year, including planned evacuation and fire safety actions.

State Council has in place a Risk Strategy and Risk Assessment Schedule, which is reviewed annually or as required.

Investment of Association assets is monitored and controlled by State Council through the Finance, Audit and Investment Committee. State Council has established an appropriate risk profile for investments and purchases external advice from an independent investment advisor.

State Council has reaffirmed the Association’s eligibility to retain its status as a public benevolent institution (PBI), deductible gift recipient (DGR) and tax concession charity (TCC). Retention is essential for the Association to operate as a not for profit charity working for people living with MND and to raise funds from the public. The Association, through its CEO, Manager Fundraising and Fundraising Officer, is a registered fundraising organisation in Victoria. Following accreditation against the Department of Human Services Disability Standards and ISO 9001, the Association is an Approved Disability Service provider and a registered provider with the National Disability Insurance Agency (NDIA). Review of compliance was undertaken in May/June 2018 and was successfully completed with no non-compliances recorded.

State Council has continued to monitor the provision of MND Advisor services to Tasmania. Following the conclusion of the three-year project grant from a Victorian philanthropic trust, MND Victoria and MND Tasmania entered into a Memorandum of Understanding for MND Victoria to continue to provide Regional Advisor services in Tasmania, and MND Tasmania has agreed to contribute funds to support the project. Further discussions between the Association and MND Tasmania have resulted in a MOU to govern operations until December 2021. This MOU includes a proposal to recruit a second MND Advisor to operate from Hobart two days per week

In addition, key projects that impact on both governance and management of the Association are considered, implemented and reviewed. A strategic planning review was undertaken in the second half of the financial year and was awaiting finalisation of the MND Australia strategic plan, to ensure that the future direction of the national organisation is embedded in the State plan. Both strategic plans have now been finalised. The MND Victoria plan focuses on the implementation of the National Disability Insurance Scheme (NDIS) and ensures that the Association continues to do what people with MND need it to do, our relationships with our key partners and funders are maintained, development is innovative and creative, and our strategic direction is clear. We retain our focus on investing in research, with a clear target of improving funding for research into care and management of MND.

The full implementation of the NDIS will have a major impact on the delivery of services and support for people with disabilities, and on the Association. Since commencement in July 2013, the Association has had significant involvement in influencing the model of planning and service delivery. We need to ensure that people with MND not only receive the services they need now, but recognition is given to the needs that will emerge due to the progression of the disease. Thus far, we have most participants with MND receiving services from us. We continue to work closely with MND Australia and its members, National Disability Services (NDS), the National Neurological Disease Alliance and the Victorian Neurological Alliance, to influence the operational structure of NDIS to ensure that people with MND have timely access to the best possible care and support from the scheme. We are working closely with MND Australia to influence changes to the Aged Care service system to ensure that aged care services are able to address the needs of people with a disability, and especially those living with MND. As always, our focus is on the needs of people living with MND, supporting them to maintain control over their lives and over the services they need and want.

From 1 July 2012, the Carers Recognition Act 2012 formally acknowledges the important contribution that people in care relationships make to our community and the unique knowledge that carers hold of the person in their care. MND Victoria upholds and actions the principles of the Carers Recognition Act 2012.

STAFF

As at 30 June 2018, the Association has twenty (25) staff, nine (9) working full time and sixteen working part time. They deliver 22.61 EFT (effective full time) positions. Eighteen (18) positions are involved in direct service delivery for people living with MND (16.92 EFT), three in fundraising (2.59 EFT) and four in administration (3.1 EFT). The majority of time of the administrative positions is invested in supporting and underpinning service

Regular consideration is given to work load and work load management for all staff. The increase in numbers of people with MND registering with the Association has created significant pressure on our MND Advisor team. The “Keeping Connected” program, to maintain and enhance contact with people living with MND and their carers, has proven to address the needs of those people with slower progressing MND and to maintain contact with others between MND Advisor contacts. We have implemented the iPad project to help people with MND maintain communication and contact with family and friends. This also creates the opportunity to use “facetime” to undertake face to face visits without staff travelling.  In addition, the significant changes to the disability and aged care systems continue to create difficulties in finding appropriate levels of case management and support for all clients outside the NDIS rollout areas. As indicated below, staff health is a key issue for the Association, and management of workloads is a major component of our response.

During the year staff attended conferences and gave presentations highlighting the Association’s work. These presentations are an excellent opportunity to highlight our practice, service development and the needs of people living with MND.

Staff training and development continues to be a key issue. The Association encourages staff to identify their own development and training needs, and provides a personal self-development budget of $500 per annum for each staff member. This is supplemented by training identified by the Association as beneficial and necessary, as well as requests for specific training opportunities that may fall outside the personal budget. For 2018/19 a dedicated budget for State Council training and development has been approved.

Staff health is important. Employees are the Association’s most valuable resource. To maintain personal health, all staff access funded counselling and personal support activities on a self identified needs basis. Externally facilitated group supervision has been maintained for MND Advisors to address issues that arise as part of their practice, and introduced for all other staff. Support opportunities are supplemented by internal practice, including supervision and debriefing, reflective group practice sessions and team meetings. During the year, two reviews of occupational health and safety compliance were undertaken. Issues identified during reviews are attended to with urgency. The Association continues to meet the gap in cost for influenza vaccination, and recommends that all staff avail themselves of this protection.

FUNDING

The Association secures funds from a wide range of sources to support its activities. The Association believes that a range of funding sources protects the Association’s activities in the event of a decline or reduction in any one source.

The Association has a three year Funding and Service Agreement with the Department of Health and Human Services (Victoria) (DHHS) which provides indexed funding for services purchased by the government. This funding agreement currently expires in June 2019.  The Agreement provides for appropriate levels of reporting on performance and activity. DHHS purchases Information and Equipment services from the Association on a recurrent basis. The Association also has a funding agreement with DHHS which purchases palliative care services from the Association, specifically to provide management of volunteers and a brokerage service for funding the MND Palliative Care Pathway Program, which provides inpatient and community based top up funding. The Association receives funding for the administration of this project.

The transfer of funding related to those people over the age of 65 was transferred to the Commonwealth Department of Health and the Commonwealth Home Support Program. This has been extended to 30 June 2020. Funding related to those under 65 who were participants in the rollout of the NDIS was transferred to the NDIA. Both these transfers were due to COAG (Council of Australian Governments) agreements in relation to the NDIS and responsibility for services.

Funding was sought from and provided by a number of Trusts, philanthropic bodies and service clubs to support specific projects and underpin the operations of the Association.

Our F-IRE program (Fundraising – Independently Run Events) continues to grow, and is generating great interest and support. Competition for MND fundraising has resulted in a significant decline in returns from large group participation events organised by third parties where they can nominate the charity of their choice to receive any funds they raise. We continue to closely monitor fundraising costs, implement cost effective initiatives to raise funds, and invest in appropriate levels of staff to support all fundraising activities.

Support Groups undertook a range of fundraising activities, including selling merchandise and Christmas cards, to support the Association.

The Association undertakes donor acquisition and development activities. Two direct mail donor renewal campaigns are conducted at Christmas and at the end of the financial year to established donors. In parallel, our telemarketing company contacts telemarketing donors to report on our activities, our needs and to seek donor support. Both programs are successful, but we face an ongoing struggle to build the donor database. We continue our efforts to identify and utilise effective donor acquisition strategies to grow our donor pool and donations given.

In autumn and spring we send our Donor Update to all donors who meet the criteria of having donated at least once in the previous two years. Donor Update is a communications tool to keep donors informed about what the Association is doing and how we invest their gifts to us in service delivery and research support. Content includes reports about specific activities, the Association’s work with people with MND, personal stories and alternative fundraising opportunities and events, such as bequests and “Walk to D’feet MND”. The Update continues to receive strong support from recipients, and is a key plank in our Donor Development program.

Throughout the year, the Association receives unsolicited donations from current and new donors. These come from many sources, including donations in–memoriam and in lieu of funeral flowers. Unsolicited donations form the majority of our donor acquisition activities.

More and more people make a single donation to the Association, and do not respond to our offers to renew their involvement in the fight against MND. We need to convert these single donors to regular donors and build their engagement with the Association to include future bequest income. We continue to investigate strategies to assist donor renewal.

All donors receive appropriate receipts and a letter from the Association thanking them for their support. Where donors remain anonymous, receipts are held at the Association. The Association operates comprehensive donor management software to ensure that appropriate records are held of all donors and donations. The Association has policies and procedures in place to comply with privacy legislation.

The Association has an ongoing bequest development program aimed at assisting people to recognise the importance of the Association’s work by leaving a gift in their will. Our payroll deduction program and regular giving through Centaurea, the Association’s program of regular monthly giving, supplements this program.  The MND Care Foundation continues its growth, with its policy to invest funds and distribute 80% of earnings to support care services, and the balance being invested to grow the fund. The Care Foundation is not a separate entity, and operates within the overall operations of the Association.

The Association undertakes merchandising and other fundraising activities through the volunteer Fundraising Committee. Sale of Christmas cards, clothing, cornflowers, cornflower cards, dogs and other merchandise assist in supporting the Association.

‘Walk to D’feet MND’ continues to grow, and be a significant contributor to MND Care and Research. Proceeds are shared between MND Victoria, to deliver care and support, and Motor Neurone Disease Australia, for investment in research grants for scientists and other researchers. The Association meets all costs of the Walk as part of its contribution to services and support and research into cause, treatment and cure of MND. We have developed a ‘Walk Kit’ which can assist anybody to develop and conduct a ‘Walk to D’feet MND’ in their local area.

The 2017 Melbourne Walk to D’feet MND continues the success of previous years, with over 1500 attending and raising over $193,000. The continued strength of participation confirms this is a really important event for the MND community, primarily to bring people with MND, their families and friends together, and to raise funds. They see this as a way to show support for each other, the Association and for future generations. We continue to look at enhancing events and raising the bar for participation and fundraising. Walks were also held in Bendigo, Lakes Entrance and Geelong. The 11th Benalla Act to D’feet MND included a range of events including biking, walking and relay races, and raised over $72,000, and taking their total to nearly $600,000 in eleven years a fantastic effort. They also hosted the start of the Nagambie stage of the Jayco Herald Sun Tour at Mitchelton

We encourage people to start a Walk in their region - they are an easy and fun way to generate community participation and raise awareness. The Association assists with on-line registration and fundraising platforms, permits, promotion and Walk T-shirts.

Our first “international challenge event” was very successful, and the “Walk the Great Wall of China” attracted 10 walkers who raised over $110,00. Plans were then in place for the Kokoda Track trek to be held in September 2018.

Volunteer fundraisers conduct a number of events and activities to support the Association. These include golf days, tennis days, trivia nights, dinner dances, participation in walks and runs, collection of donations in lieu of gifts at significant birthdays, sell cakes, jams and other produce, and many other events. The Association supports these activities by providing cornflowers, donation materials, information kits, and other support. This is a growing part of the Association’s fundraising and we look forward to all approaches from people who wish to fundraise on our behalf. We need members and supporters to identify opportunities for the Association.

To assist people conduct their own activities, the Association has produced and maintained a Fundraiser’s Kit, which provides a wide range of information and advice on conducting a successful event. The Kit answers all of those basic questions that often inhibit the organisation of events.  We have established relationships with mycause.com.au and everydayhero.com.au, online fundraising platforms that remove the worries about being sponsored for an event or collecting pledged donations. Both platforms allow people to create their own events, seek sponsorship, automatically send donors tax receipts for their contributions, and remove the hassles of chasing pledges.

To highlight some fundraising efforts of many:

  • Wandin Dressage event raised $2,738
  • Lizardos Fundraiser generated $3,996
  • Drink Tea for MND at a number of locations raised $9,996
  • Simko’s Rock off MND raised over $144,000
  • Steve Wallis MND Research fund raised $4,658 for the 2019 Melbourne Air Show
  • Superball XI raised over $91,000 for research
  • Bunnings Sausage Sizzles raised $1,736
  • Wheels for MND raised $11,000
  • Run Melbourne participants raised $15,320
  • Golf day raised over $5,000

The Association effectively manages its resources and investments to generate funds. It has policies and procedures in relation to investments and risk profile, and appropriate mechanisms to seek advice and information from qualified and experienced advisors. Over $349,000 was generated through investment income, a sign of good and effective management of the Association’s cash resources and investments in a tough investment climate.

CORPORATE SUPPORT

Corporate Social Responsibility has been a major thrust of government and philanthropy over the past few years. The Association has found it difficult to attract partners of this kind due to the difficulties in providing the “pay back” that seems to be a part of these relationships. We have continued our strong partnership with Vitality Brands Worldwide to fund and deliver “Take a Break from MND”. The extension of this project to now include people with MND in Tasmania and South Australia has been well received, and sets an elegant and effective example of the application of corporate support.

“Take a Break” is a capital funding program to provide small grants to families to give them a break from the impact of MND. It is designed to empower MND Advisors to make decisions and provide the funding without review or recourse, respond to an urgent or emerging need created by MND in a family, and be simple and effective with no bureaucracy slowing down the process. Funds are transferred electronically within 24 hours of the MND Advisors’ approval.

The Association benefits from corporate support through running and participating in events, as well as donations of financial and other support. Sixty seven companies supported the Association and the delivery of care and support during the year.

We would like to recognise Vitality Brands Worldwide, who fund the “Take a Break from MND” Project in Victoria, Tasmania and South Australia – this is a wonderful initiative that gives people with MND a “break” from the impact of their disease. They also support our “Walk to D’feet MND” events, and attend the “Superball” series. We would also like to recognise Edgewise Insurance Brokers for their ongoing support and donation of a portion of their “on-line” insurance income during the year.

A full list of our corporate supporters is at the end of this report.

Innovation, creativity and success in all of our productions are guided by Georgie Hollins, of GH2 Design, through the translation of our ideas, and hers, into vibrant and effective presentations.

We would also like to thank all employers who made donations in recognition of deaths of their employees from MND.

TRUSTS, FOUNDATIONS and CLUBS

The Association could not initiate new and exciting projects or maintain its equipment and other services without the support of philanthropic Trusts and Foundations.

The Association has been fortunate in the 2017/18 financial year to be able to present for consideration by Trusts a number of projects to benefit people living with MND. These projects have covered a broad range of activities, including purchasing new equipment to expand the Equipment Service, and Information Nights, Living Well presentations, and MND Advisor services.

Our thanks are extended to the following philanthropic Trusts and Foundations: Lord Mayors Charitable Foundation

The Mulgrew Family Endowment

Collier Charitable Fund Dimmick Charitable Trust Joe White Bequest

The Dawn Wade Foundation The GW Vowell Foundation Ltd

The Mona Georgina Harris Perpetual Trust The William Angliss Charitable Fund

The Jack Brockhoff Foundation

The Montgomery Foundation Pty Ltd

One hundred Clubs, Service Clubs and schools throughout Victoria continued to assist us to deliver quality services. Club members undertake a range of contributory services to support the Association, its events and members. The Association would like to thank the Clubs of Lions, Lionesses, Inner Wheel and Rotary for their support and assistance, and their public demonstration of commitment to people living with MND. We would also like to recognise some other clubs, associations and schools that have supported MND – a full list is at the end of this Report.

PARTNERSHIPS

The Association has operated in partnership with a broad range of organisations to improve services for people living with MND. Many of these partnerships, such as those with the Department of Health and Human Services (Vic), Department of Health (Commonwealth), Calvary Health Care Bethlehem, Austin Hospital and all palliative care providers, are of very long standing.

Our newest partner is the NDIA, responsible for delivering the NDIS and now rolling out across Victoria. We have worked constructively with NDIA to achieve common understanding of the needs of people with MND and the capabilities of the NDIA to address those needs through identified services and support. By working in close cooperation with MND Australia and MND NSW, we have been able to present consistent and effective recommendations, supported by evidence, to NDIA for change and improvement of their processes, and improve the experience of people with MND interacting with the NDIA.  We look forward to this partnership growing to ensure that all people with MND eligible to be NDIS participants are able to access the services that they need and want.

Our work with MND NSW and MND Australia at the national level has helped influence the NDIS to ensure that people living with MND have their needs addressed in their ever changing environment and circumstances.

MND Victoria has focussed on partnership as the best way to ensure that people living with MND are able to access quality services where and when they need them. We have spent the last 37 years developing relationships that are supportive and cooperative to ensure that we and other service providers can deliver the best possible support for people with MND. The Association would like to recognise the many agencies, services and service providers that play their role and they include:

  • Community agencies delivering services under a variety of banners, including Home and Community Care services, Linkages providers, aged care accommodation, respite, local government throughout Victoria, disability, health care, transport, day programs, palliative care, volunteers – there are over six hundred (600) relationships with agencies;
  • Related neurological agencies, such as MS Society, Huntington’s Disease Association, MDA, BrainLink, Epilepsy Foundation and Parkinson’s Victoria;
  • Disability agencies and NDS (National Disability Services), the peak disability body;
  • Palliative care service providers, palliative care consortia and Palliative Care Victoria;
  • Universities, including La Trobe, Melbourne, Monash and Deakin and their associated researchers
  • Howard Florey Institute and Neuroscience Victoria
  • Health care professionals, community workers, families, friends and workmates;
  • Calvary Health Care Bethlehem, Victorian Respiratory Support Service (Bowen Centre, ARC), Monash Medical Centre, St Vincent’s Hospital and Geelong Hospital;
  • Department of Health and Human Services, DHHS Southern Region, and all regional offices;
  • NDIS and NDIA
  • Motor Neurone Disease Australia, its members, and the International Alliance of ALS/MND Associations, and many

We would also like to recognise and emphasise the partnership that the Association has with its donors and members. MND Victoria is only able to deliver its services for people living with MND because of our donors, supporters and members. They contribute a significant percentage of the Association’s total budget. They respect, value and support the needs of people living with MND, the work we undertake to address and respond to those needs, and want to be financial contributors to that work. Without them, the Association would not be able to do what it does, and achieve what it is able to achieve, for people living with MND.

BEQUESTS

The Association wishes to recognise and thank those people who have remembered MND and the Association in their wills. In particular, the Association acknowledges the following Estates:

Estate of Margaret Patricia Nicholls Estate of Dudley Barton Adams Estate of John Alfred Burnham Estate of Daniel John O’Callaghan Estate of Bruce Angus Marston Estate of Cliff Prowse

Estate of Peter Ryall Estate of James Holt

Estate of Dorothy Jean Mahler Estate of Janine Louise Thomas

Estate of Kevin Leslie Howard Estate of Dorothy Mary Cooke Estate of Dorothy Dunlevie

We wish to recognise their generosity, foresight and commitment to the fight against MND.

All bequests received by the Association, unless otherwise specified, are lodged with the MND Care Foundation, an investment controlled by the MND Association of Victoria.  Funds are invested in accordance with the investment strategy determined by State Council from time to time. Earnings of the Care Foundation are applied to the general work of the Association or to specific purposes relating to MND as specified in the relevant bequest.

The purpose of the fund is to ensure that the Association can maintain its independence from Government funding and invest in services to assist people living with MND retain their independence and life within the community. The Care Foundation allocates up to 80% of its earnings to services or specific purposes, and reinvests the balance. This process ensures that valuable gifts to the Association live on, and continue to provide benefit to people living with MND in the future.

As at 30 June 2018, the MND Care Foundation has nearly $7 million invested generating income and delivering services for people living with MND.  Please contact the Association if you would like information on how you can help by making a bequest, or by regular giving through Centaurea. Your gift will fight MND into the future.

TREASURER’S REPORT

Funding and Finance

Our goal in the financial activities of the Association is to deliver what is needed; to fund what is provided, and to invest in care, research and sustainability. In a tight year for funding, with pressure of increased competition from other organisations and changes in the level of Government support, NDIS and Aged Care, the Association has had a good trading outcome and an audited financial surplus after transfers to the MND Care Foundation.

The 2017/18 year resulted in a trading surplus of over $850,828, thanks to significant income from bequests ($548,783) and NDIS ($822,000). After transfers to the MND Care Foundation of

$626,443, we have recorded a surplus of $224,392. Funds transferred to the Care Foundation include receipts from bequests, earnings and the increases or decreases in the capital value of the Foundation’s investments, less contributions from the Foundation to the Association for care activities.

Growth in income from the NDIS continues as more people become participants, offset by transfers of former DHHS income to the NDIA. Income received exceeded $822,000 ($170,000 in 2016/17), or 16% of total income, and is planned to grow in the coming year. Growth will be driven by the final rollout areas in 2018/19. We continue our promotion of the services we provide, and hope that they purchase from our team, who are well experienced in MND and proven providers.

Fundraising strategies continue to be the strength of the Associations finances. Self-reliance through fundraising, paid services and investment contributed 75% of total income. Our history of having much of our income being dependent on year to year activities continues, with strong reliance on the myriad of fundraising events, small and large, to continue our funding for care and support for people living with MND, and for research.

Our ongoing encouragement of people to make bequests in favour of the Association continues to be effective, and the Care Foundation continues to provide a strong income stream for the Association. Bequests contributed $548,783, the Care Foundation has grown to nearly $7 million, and we continue our strategy of investing these funds to deliver income for service delivery. We ask that you consider leaving a bequest to the Association that will fund the fight against MND in the future.

Income 2017/2018

Income graph for 2017/2018 Financial Year showing: Government = 23%, NDIS = 16%, Donations = 12%, Bequests = 10%, Trusts = 4%, Fundraising = 33%, Other = 2%

We continue to support events that raise funds for research, and have contributed over $434,000 to MND Australia for research projects and for our own Nina Buscombe Awards for travel and conference attendance. Research funding accounted for 10% of expenditure.

Our focus remains on delivery of services with 82% of all expenditure being applied to services to support people living with MND and to research. All funds donated for research, or raised in research focussed events, are applied to research, either through MND Australia and the Motor Neurone Disease Research Institute of Australia (MNDRIA), the provision of Nina Buscombe Awards to support travel by scientists, and health care professionals, or through local research projects.

Income remains dependent on year to year activities, with strong reliance on the myriad of fundraising events both small and large, to continue funding care, support and research. We closely monitor expenditure, maintaining our focus on effective and efficient operations. There is a fine balance to ensure we have appropriate levels of funds available for services.

Expenditure 2017/2018

Expenditure graph for 2017/2018 showing: Services = 48%, Assistive Technology (includes capital) = 24%, Fundraising = 13%, Research = 10%, Administration = 5%

Administration costs remain low at 5%, but have and will increase in dollar terms due to higher monitoring and acquittal processes. We expect that our investment in a new Client Management System and upgraded accounting software will offset some of these increases. Similarly, increased fundraising costs can be expected for the Association to remain an effective competitor in the highly competitive fundraising environment.

Audited accounts will be available from the Association’s office and website after they are presented at the Annual General Meeting.

The Association remains in a strong financial position, with adequate reserves to meet the challenges of the NDIS and Aged Care reforms. Our mission continues to provide and promote the best possible care and support for people living with MND, delivered through service delivery, advocacy and research.

Until there is a cure … there is care!

Jeremy Urbach
Treasurer

Supporting Companies

  • All Souls Opportunity Shop Associated Concepts Pty Ltd Ballarat Woodworkers Guild Bank of Melbourne
  • Barwon Support Group
  • Botanic Gardens Retirement Village BrainLink Services
  • Calvary Healthcare Bethlehem
  • Cappucino Express
  • Central Queensland University Chapter 3 Espresso and Bar Charity Greeting Cards
  • CHD TPG Management Coles Bay Holidays Pty Ltd
  • Criminal Justice Diversion Program
  • DCH Landscaping Pty Ltd Dromana Dental Clinic Pty Ltd Dopo Scula Teachers Group
  • East Gippsland Insurance & Orbost Travel Centre Electrical Trades Union
  • Emerald Hill Wholesale Express Insurance Brokers Expresso Mobile Cafe Federazione Lucana Inc
  • Geelong Connected Communities Geelong Magistrates Court Handy Steel Pty Ltd
  • Hog Servicing Pty Ltd InterRisk
  • Lorraine Lea Linen
  • Medico Legal Communications Middendorp Electic Co Pty Ltd Moama Water Sports Club Nexus Primary Health
  • Pattison Partners
  • Perry’s Stockfeed and Saddlery Pet Stays
  • Phone Cycle Point Cook Village
  • Prospect Accounts Reece Australia Limited Regional Imaging Ritchies IGA
  • Simon Denton Industries Specsavers Pty Ltd
  • Speech Pathology Australia
  • Sportsman Association of Australia-Ballarat Branch
  • St Barbara Limited Tailored Car Accessories Tatura Newsagency
  • Trevor P Weichman and Associates Pty Ltd The Melbourne Doll Show
  • The Phoenix Hotel The Village Glen Torquay Pharmacy U3A Moonee Valley Williams Cabinets
  • Wodonga Salvation Army Branch

Schools, Clubs and Service Clubs

  • Carnegie Primary School Drouin West Primary School Emerson School
  • Ferny Creek Primary School Lakes Entrance Primary School Lang Lang Primary School Norwood Secondary College Springside P-9 College
  • St Catherine's Junior School Tintern Grammar School Wonthaggi Secondary College
  • Plenty Parkways Primary School Whittlesea Secondary College
  • Swan Hill Parish Centre St Francis Xavier Parish
  • Kyneton Uniting Church Op Shop
  • Area 62 Inner Wheel
  • Blue Hills Rise Singles Group Boroondara Central Lions Club City South Football Club
  • Country Women's Association of Victoria Drouin Country Women's Association Heathcote Bowls Club
  • Heidelberg Over 50s Dance Group Highvale Retirement Village Social Club Inner Wheel Club of Bendigo Inc Ivanhoe Bowling Club
  • Kingscott Conclave Knox Bridge Club
  • Knoxfield Cricket Sporting Club Lioness Club of Berwick
  • Lions Club of Blackburn North Lions Club of Broadford
  • Lions Club of Geelong Lions Club of Leopold
  • Lions Club of Macarthur and District Lions Club of Numurkah
  • Lodge of Euclid
  • Midlands Golf Bowls Club Mitcham Scottish Society Mornington Lions Club Nambrok Cricket Club Rochester Golf Club
  • Rotary Club of Ocean Grove Rotary Club of Prahran
  • Royal South Yarra Lawn Tennis Club Ruby Red Dancer
  • Soroptimists of Cobram Barooga
  • South Barwon Football and Netball Club Springvale Golf Club
  • The Amblers Club The Wonthaggi Club
  • Vermont Lions Ladies Auxiliary
  • Western Heights Tuesday Morning Badminton Club
  • Wise Owls Exercise Group

Schedule 1

Regulation 15

Form 1

Associations Incorporation Reform Act 2012

Sections 94 (2)(b), 97 (2)(b) and 100 (2)(b)

Annual statements give a true and fair view of financial performance and position of incorporated association

We David Lamperd and Jeremy Urbach being members of the committee of the Motor Neurone Disease Association of Victoria Inc certify that –

“The statements attached to this certificate give a true and fair view of the financial performance and position of the above named association during and at the end of the financial year of the association ending 30 June 2018.”

Signed: David Lamperd, Chairman
Date: 21 August 2018

Signed: Jeremy Urbach, Treasurer
Date: 21 August 2018

Financial Statements

For the Year Ended 30 June 2018

Motor Neurone Disease Association of Victoria Inc.

Reg. No. A7518

For the Year Ended 30 June 2018

CONTENTS

Financial Statements

  • Statement of Profit and Loss and Other Comprehensive Income
  • Statement of Financial Position
  • Statement of Changes in Equity
  • Statement of Cash Flows
  • Notes to the Financial Statements
  • True and fair certification by the State Council
  • Independent Audit Report

Statement of Profit and Loss and Other Comprehensive Income For the Year Ended 30 June 2018

 

Note

2018

$

2017

$

Revenue

2

4,898,460

4,215,729

Other income

2

349,526

350,040

Employee benefits expense

 

(2,106,716)

(1,763,497)

Depreciation, amortisation and impairments

3

(368,156)

(359,412)

Donation to MND Care Foundation

 

(626,443)

(1,235,322)

Research expenditure

3

(434,241)

(462,400)

Other expenses

 

(1,488,038)

(1,451,157)

Surplus / (Deficit) attributable to members of the Association

 

224,392

(706,019)

 Other Comprehensive Income:

 

 

 

Net fair value increase / (decrease) on revaluation of financial assets

 

141,408

236,466

Total other comprehensive income for the year

 

141,408

236,466

Total comprehensive income attributable to members of the entity

 

365,800

(469,553)

Statement of Financial Position As at 30 June 2018

 ASSETS

Note

2018

$

2017

$

Current assets

 

 

 

Cash and cash equivalents

5

1,385,450

1,983,527

Trade Debtors

 

36,071

-

Inventories

 

48,464

41,013

Financial assets

7

6,964,702

5,575,106

other assets

6

232,306

23,415

Total current assets

 

8,666,993

7,623,061

Non-current assets

Property, plant and equipment

 

8

 

2,905,825

 

2,443,016

Total non-current assets

 

2,905,825

2,443,016

TOTAL ASSETS

 

11,572,818

10,066,077

LIABILITIES

 

 

 

Current liabilities

 

 

 

Trade and other payables

9

7,071,101

6,484,690

Employee entitlements

10

553,279

469,652

Total current liabilities

 

7,624,380

6,954,342

Non-current liabilities

 

 

 

Employee entitlements

10

16,245

56,903

Total non-current liabilities

 

16,245

56,903

TOTAL LIABILITIES

 

7,640,625

7,011,245

NET ASSETS

 

3,932,193

3,054,832

 

EQUITY

Reserves

 

 

12

 

 

1,644,394

 

 

991,425

Retained earnings

 

2,287,799

2,063,407

TOTAL EQUITY

 

3,932,193

3,054,832

Statement of Changes in Equity For the Year Ended 30 June 2018

2017

Retained Earnings

$

Capital Acquisition Reserve

$

Revaluation Surplus

$

Financial Asset Reserve

$

Total

$

Equity as at beginning of period

2,769,426

83,175

418,311

253,473

3,524,385

Surplus / (Deficit) attributable to members of the Association

 

 

(706,019)

 

-

 

-

 

 

(706,019)

-

-

-

236,466

236,46

Equity as at 30 June 2017

2,063,407

83,175

418,311

489,939

3,054,832

 

2018

Surplus / (Deficit) attributable to members of the Association

224,392

-

-

-

224,392

Other Comprehensive Income

-

-

511,561

141,408

652,969

Equity as at 30 June 2018

2,287,799

83,175

929,872

631,347

3,932,193

Statement of Cash Flows

For the Year Ended 30 June 2018

Cash from operating activities:

Note

2018

$

2017

$

Fundraising and Donations received

 

2,122,474

1,828,417

Receipts from Bequests

 

548,783

855,248

Operating Grants

 

1,185,714

1,320,384

National Disability Insurance Scheme

 

591,179

170,931

Other income

 

218,689

104,947

Payments to suppliers and employees

 

(4,084,335)

(3,606,664)

Interest/ Dividends received

 

349,526

350,040

Net cash provided by operating activities

 

932,030

1,023,303

Cash flows from investing activities:

Proceeds from sale of plant and equipment

 

96,696

102,081

Acquisition of property, plant and equipment

 

(379,112)

(305,064)

(Acquisition) / Disposal of financial assets

 

(1,247,691)

(789,100)

Net cash provided by (used in) investing activities

 

(1,530,107)

(992,083)

Net increase (decreases) in cash held

 

(598,077)

31,220

Cash and cash equivalents at beginning of year

 

1,983,527

1,952,307

Cash at end of financial year

5

1,385,450

1,983,527

The accompanying notes form part of the financial statements

Notes to the Financial Statements For the Year Ended 30 June 2018

1     Statement of Significant Accounting Policies

Basis of preparation

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and Interpretations issued by the Australian Accounting Standards Board ('AASB'), and the Associations Incorporation Reform Act 2012.

New, revised or amending Accounting Standards and Interpretations adopted

The incorporated association has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Any significant impact on the accounting policies of the incorporated association from the adoption of these Accounting Standards and Interpretations are disclosed below. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the incorporated association.

The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar. The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

The financial statements were authorised for issue on 27th August 2018 by the State Council.

(a) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less.

(b) Inventories

Inventories held for sale are measured at the lower of cost and net realisable value.

Inventories acquired at no cost or for nominal consideration are measured at the current replacement cost as at the date of acquisition.

(c) Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost or fair value, less, where applicable, any accumulated depreciation and impairment losses.

Plant and equipment

Plant and equipment are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of plant and equipment is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment losses recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(g) for details of impairment).

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the association and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred.

Depreciation

The depreciable amount of all fixed assets including buildings and capitalised leased assets, is depreciated on a straight-line basis over their useful lives commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The depreciation rates used for each class of depreciable assets are:

Class of Fixed Asset

Buildings

2.5%

Plant and Equipment

17%

Furniture, Fixtures and Fittings

13-17%

Motor Vehicles

15%

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of comprehensive income. When revalued assets are sold, amounts included in the revaluation relating to that asset are transferred to retained surplus.

Notes to the Financial Statements For the Year Ended 30 June 2018

1    Statement of Significant Accounting Policies (continued)

(d) Employee Benefits

Short-term employee benefits

Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled within 12 months of the reporting date are recognised in current liabilities in respect of employees' services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.

Other long-term employee benefits

The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are recognised in non-current liabilities, provided there is an unconditional right to defer settlement of the liability. The liability is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

(e) Revenue and other income

Non-reciprocal grant revenue is recognised in profit or loss when the association obtains control of the grant, it is probable that the economic benefits gained from the grant will flow to the association and the amount of the grant can be measured reliably.

If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until those conditions are satisfied.

When grant revenue is received whereby the association incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt.

The association receives non-reciprocal contributions of assets from the government and other parties for zero or a nominal value. These assets are recognised at fair value on the date of acquisition in the statement of financial position, with a corresponding amount of income recognised in profit or loss.

Donations and bequests are recognised as revenue when received.

Interest revenue is recognised using the effective interest method, which for floating rate financial assets is the rate inherent in the instrument. Dividend revenue is recognised when the right to receive a dividend has been established.

Revenue from the rendering of services is recognised upon the delivery of the service to the customers.

All revenue is stated net of the amount of goods and services tax (GST).

Notes to the Financial Statements For the Year Ended 30 June 2018

1     Statement of Significant Accounting Policies (continued)

(f) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers.

(g) Financial Instruments

Initial Recognition and Initial Measurement

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the Association commits itself to either purchase or sell the asset (i.e. trade date accounting is adopted). Financial instruments are initially measured at fair value plus transactions costs except where the instrument is classified ‘at fair value through profit or loss’ in which case transaction costs are expensed to profit or loss immediately.

Classification and Subsequent Measurement

Finance instruments are subsequently measured at fair value, amortised cost using the effective interest rate method or cost. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.

Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value.

Amortised cost is calculated as the amount at which the financial asset or financial liability is measured at initial recognition less repayments made and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method.

Notes to the Financial Statements For the Year Ended 30 June 2018

1  Statement of Significant Accounting Policies (continued)

(g) Financial Instruments (continued)

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an  income or expense in profit or loss.

i. Financial assets at fair value through profit and loss

Financial assets are classified at ‘fair value through profit or loss’ when they are held for trading for the purpose of short-term profit taking, or where they are derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying value being included in profit or loss.

i. Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost.

ii. Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the entity’s intention to hold these investments to maturity. They are subsequently measured at amortised cost.

Available-for-sale financial assets are non-derivative financial assets that are either not capable of being classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is  neither a fixed maturity nor fixed or determinable payments.

iii. Financial liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.

Fair Value

Fair value is determined based on current bid prices for all quoted investments. Valuation  techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing model.

Notes to the Financial Statements For the Year Ended 30 June 2018

1        Statement of Significant Accounting Policies (continued)

(g) Financial Instruments (continued)

Impairment

At each reporting date, the entity assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether impairment has arisen.  Impairment losses are recognised in the statement of profit or loss and other comprehensive income.

Derecognition

Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are discharged, cancelled or expired. The difference between the carrying value of the financial liability, which is extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss

(h) Donation to MND Care Foundation

Certain revenues are received for specific purposes. These revenues have been donated to the yet to be constituted MND Care Foundation. The Association has dedicated bank and investment accounts allocated for the MND Care Foundation, which enables these revenues to be recorded  separately from other funds of the Association. Legal counsel received by the Association has  further deferred the formal establishment of the MND Care Foundation.

(i) Comparative Figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

(j) Trade and Other Payables

Trade and other payables represent the liabilities for goods and services received by the association during the reporting period that remains unpaid at the end of the reporting period. The balance is  recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.

Notes to the Financial Statements For the Year Ended 30 June 2018

1        Statement of Significant Accounting Policies (continued)

(k) Critical accounting judgements, estimates and assumptions

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.

Estimation of useful lives of assets

The incorporated association determines the estimated useful lives and related depreciation and  amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.

Notes to the Financial Statements For the Year Ended 30 June 2018

 2 Income

 Note

2018

$

2017

$

Operating activities

- operating grants

 

2(a)

 

1,185,714

 

1,256,186

- national disability insurance scheme

 

822,800

170,931

- fundraising and donations

 

2,671,257

2,683,665

- other revenue

 

218,689

104,947

 

 

4,898,460

4,215,729

Other Income

- interest/dividends received

 

 

349,526

 

350,040

 

 

349,526

350,040

Total Income

 

5,247,986

4,565,769

2 (a)    Operating grants reflects grants received from the Department of Health and Human Services (State) and the Department of Health (Commonwealth).

3    Surplus for the Year

a       Expenses

Surplus from ordinary activities before income tax expenses has been determined after:

Depreciation of non-current assets:

- plant and equipment

 

368,156

 

359,412

 

Research and Development Costs (Research Grant)

 

434,241

 

462,400

Pathways to Palliative Care

263,961

227,079

 

Remuneration of auditor

 

16,500

 

16,500

 

4             Key Management Personnel Compensation

 

The totals of remuneration paid to key management personnel (KMP) of the association during the year are as follows:

 

 

Key Management Personnel Compensation

363,817

342,702

Notes to the Financial Statements For the Year Ended 30 June 2018

5 Cash and Cash Equivalents

Note

2018

$

 

2017

$

Cash at Bank

 

631,832

258,867

Cash Management Account

 

5,930

5,929

MND Care Foundation

 

205,079

1,158,642

Macquarie Cash Management Trust

 

197,609

160,089

Term Deposit

 

345,000

400,000

 

11

1,385,450

1,983,527

 

Other Assets

Note

2018

$

 

2017

$

Accrued Income

 

195,550

-

Tax Refundable

 

14,512

7,067

Prepayments

 

22,243

16,348

 

11

232,305

23,415

7 Financial Assets

a         Available-for-sale Financials Assets Comprise:

Listed investments, at fair value shares in listed corporations at market value

4,209,906  

4,363,756

Other available for sale assets other financial assets at market value

2,754,796

1,211,350

Total available-for-sale financial assets

6,964,702

5,575,106

Available-for-sale financial assets comprise of investments in the ordinary issued capital of various entities. There are no fixed returns or fixed maturity date attached to these investments

8 Property Plant and Equipment

LAND AND BUILDINGS

2018

$

2017

$

Buildings

   

At independent valuation

1,825,000

1,538,732

Less accumulated depreciation

-

(205,106)

Total land and buildings

1,825,000

1,333,626

Notes to the Financial Statements For the Year Ended 30 June 2018

 8 Property Plant and Equipment (Continued)

2018

$

2017

$

PLANT AND EQUIPMENT

 

 

Patient equipment At cost

 

3,694,423

 

3,583,659

Less accumulated depreciation

(2,959,694)

(2,664,800)

Total plant and equipment

734,729

918,859

Furniture, fixtures and fittings

 

 

At cost

89,281

73,226

Less accumulated depreciation

(67,248)

(65,167)

Total furniture, fixtures and fittings

22,033

8,059

Motor vehicles

 

 

At cost

317,309

188,951

Less accumulated depreciation

(27,902)

(26,622)

Total motor vehicles

289,407

162,329

Office equipment

 

 

At cost

157,990

136,133

Less accumulated depreciation

(123,334)

(115,990)

Total office equipment

34,656

20,143

Total plant and equipment

1,080,825

1,109,390

Total property, plant and equipment

2,905,825

2,443,016

(a)      Movements in Carrying Amounts

 

                          

 Buildings

$

Patient Equipment

$

Furniture, Fixtures and Fittings

$

Motor Vehicles

$

Office Equipment

$

Total

$

Balance at 1 July 2017

1,333,626      

918,859 

8,059

162,329

20,143

2,443,016

Additions

7,086   

112,894   

16,055

264,178

21,857

422,070

Revaluation

511,561 

-

-

-

-

511,561

Disposals

-

-

-

(102,666)

-

(102,666)

Depreciation expense

(27,273)

(297,024)

(2,081)

(34,434)

(7,344)

(368,156)

Carrying amount at 30 June 2018

1,825,000

734,729

22,033

289,407

34,656

2,905,825

Asset Revaluations

The land and buildings were valued by Darell Johnson, a certified valuer on 7th August 2018. The assessed value of the property was $1,825,000.

Notes to the Financial Statements For the Year Ended 30 June 2018

9 Trade and Other Payables Note

2018

$

2017

$

CURRENT      
Trade payables       61,970 5,467
Accrued expenses       66,759 109,096
Income received in advance      10,000 64,198
Payable to MND Care Foundation     6,932,372 6,305,929
  11 7,071,101 6,484,690

 

10 Employee Entitlements

 

 

 

 

2018

$

 

 

2017

$

Current

553,279

469,652

Non-current

16,245

56,903

 

569,524

526,555

11 Financial Risk Management

The association’s financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, investments in listed shares and managed funds, accounts receivable and payable, and leases.

The carrying amounts for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows:

Financial Assets

Note

2018

$

2017

$

Cash and Cash Equivalents

5

1,385,450

1,983,527

Loans and receivables

 

268,376

23,415

Financial assets

7

6,964,702

5,575,106

 

 

8,618,528

7,582,048

Financial Liabilities

 

 

 

Financial Liabilities at amortised cost

 

 

 

Trade and other payables

9

7,071,101

6,484,690

 

 

7,071,101

6,484,690

Notes to the Financial Statements For the Year Ended 30 June 2018

11 Financial Risk Management (Continued)

Fair Values

i. For listed available-for-sale financial assets and financial assets at fair value through profit or loss, the fair values have been based on closing quoted bid prices at the end of the reporting

In determining the fair values of the unlisted available-for-sale financial assets, the councillors have used inputs that are observable either directly (as prices) or indirectly (derived from prices).

ii. Fair values of held-to-maturity investments are based on quoted market prices at the end of the reporting Fair values of held-to maturity investments are based on quoted market prices at the end of the reporting period

12 Reserves

Capital Acquisitions Reserve

The Capital Acquisitions Reserve records funds set aside for capital purchases in the future.

Financial Asset Reserve

The Financial Asset Reserve records revaluation of financial assets.

 Revaluation Surplus Reserve

The Revaluation Surplus Reserve records the valuation surplus on property, plant and equipment.

13 Events after the Balance Sheet Date

Since the end of the financial year no significant events have occurred to warrant disclosure in the 2018 financial statements.

14 Association Details

The principal place of business of the Association is:

Motor Neurone Disease Association of Victoria Inc. 265 Canterbury Road

CANTERBURY VIC 3126

Motor Neurone Disease Association of Victoria Inc.

Reg. No. A7518

True and fair certification by members of the State Council

In the opinion of State Council the financial report as set out on pages 1 to 16:

  1. Presents a true and fair view of the financial position of Motor Neurone Disease Association of Victoria as at 30 June 2018 and its performance for the year ended on that date in accordance with Australian Accounting Standards – Reduced Disclosure Regime (including Australian Accounting Interpretations) of the Australian Accounting Standards Board.
  2. At the date of this statement, there are reasonable grounds to believe that Motor Neurone Disease Association of Victoria Inc. will be able to pay its debts as and when they fall

This statement is made in accordance with a resolution of the State Council and is signed for and on behalf of State Council by:

President: David Lamperd

Treasurer: Jeremy Urbach

Dated: Melbourne 27th August, 2018


MOTOR NEURONE DISEASE ASSOCIATION OF VICTORIA INC.

Independent auditor's report to members Report on the Audit of the Financial Statements

Opinion

We have audited the financial report of Motor Neurone Disease Association of Victoria Inc. (the Association), which comprises the statement of financial position as at 30 June 2018, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and State Council's declaration.

In our opinion the financial report of Motor Neurone Disease Association of Victoria Inc. has been prepared in accordance with the Associations Incorporation Reform Act 2012, including:

  1. giving a true and fair view of the Association's financial position as at 30 June 2018 and of its financial performance for the year then ended; and
  2. complying with Australian Accounting Standards - Reduced Disclosure

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Association in accordance with the auditor independence requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code} that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

William Buck is an association of independent firms, each trading under the name of WIiiiam Buck across Aus tralia and New Zealand with afilliated offices worldwide. Liability limited by a scheme approved under Professional Standards Legislation other than for acts or omissions of financial services licensees.

Other Information

The State Council are responsible for the other information. The other information comprises the information included in the Association's annual report for the year ended 30 June 2018, but does not include the financial report and our auditor's report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of State Council and Those Charged with Governance for the Financial Report

The council of the Association are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards - Reduced Disclosure Regime and the Associations Incorporations Reform Act 2012 and for such internal control as state council determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the council are responsible for assessing the Association's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the council either intend to liquidate the Association or to cease operations, or has no realistic alternative but to do so.

The State Council are responsible for overseeing the Association's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit 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 Association internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by state council.

Conclude on the appropriateness of the state councils use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Association's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Association to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the state council regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

William Buck Audit (Vic) Pty Ltd

ABN 59 116 151 136

C.L. Siddles

Director

Dated: Melbourne 27th August, 2018