annual report - The Heart Foundation

annual report - The Heart Foundation

ANNUAL REPORT + F I N A N C I A L S TAT E M E N T S 2015 National Heart Foundation of Australia (Queensland Division) ABN 32 009 691 570 For the ye...

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ANNUAL REPORT

+ F I N A N C I A L S TAT E M E N T S

2015

National Heart Foundation of Australia (Queensland Division) ABN 32 009 691 570 For the year ended 31 December 2015

Queensland

National Heart Foundation of Australia (Queensland Division)

Contents Directors and Office Bearers

3

Bequests

4

Major Supporters

5-6

Corporate and Club Supporters

6

Trust and Foundations

7

Directors' Report

8-13

Directors' Declaration

14

Statement of comprehensive income

15

Statement of financial position

15

Statement of changes in equity

16

Statement of cash flows

16

Notes to the financial statements

17-28

Independent Audit Report to the Members

29-30

Lead Auditor's Independence Declaration

31

2

National Heart Foundation of Australia (Queensland Division)

Directors and Office Bearers Patron

His Excellency, the Governor of Queensland The Honourable Paul de Jersey AC

Board of Directors President

Mr Brett Delaney, BCom, FCA, MAICD (Appointed 07/5/15)

Honorary Treasurer & Secretary Mrs Melanie Gin, BCom, CA (Appointed 07/05/15) Directors

Dr Roger K Wilkinson, MBBS, BA, M.Litt., FRACP, FCSANZ Mr Paul K Bird, GradDipBusAdmin, BA, FPRIA, FAICD Ms Rebecca Treston, QC Associate Professor David Colquhoun, MBBS, FRACP, FCSANZ Professor Michael Good, AO, MD PhD, FASM, FRACP, FTSE, FAHMS Dr Colin Dillon, AM APM

Mr Ian Humphreys, BA (UNSW), LLB (UTS), Dip.Leg Prac (UTS), LLM (Syd) Professor Robyn McDermott, MBBS, MPH, PhD, FAFPHM (Resigned 07/05/15) Mr Tim Sayer, BA LLB (UQ), LLM (USyd), Dip.Soc.Stud (Oxon) (Resigned 07/05/15)

Chief Executive Officer

Mr Stephen Vines, MBA, BBus Mgmt, MAICD,

Health Director

Ms Rachelle Foreman, MPhil, MScST, BAppSc (HMS)

Finance Director

Mrs Catherine Donald, BCom

Fundraising Director

Mr Bruce Macdonald, BAgrSc, DipEd

Honorary Solicitors

McInnes Wilson Lawyers

Auditors

KPMG

Registered Office

557 Gregory Terrace, Fortitude Valley, Brisbane 4006

3

National Heart Foundation of Australia (Queensland Division)

Bequests The following individuals provided for the Heart Foundation in their wills and distributions were received in 2015 Colin Graham Bruce Abbott Madge Abbott Alic James Armstrong Dorothy Elizabeth Bassard Reuben Edgar Bell Wilfred John Bennett June Evelyn Breadsell John Douglas Brennan Pauline Valda Bromiley Vivian Miranda Butcher Alma Clarice Darby Roger Degreef Robert Isaac Dixon Joan Muriel Dowling Grace Margaret Eller Gwendoline Claire France Robin Michael Furniss Jaromir Erich Gaehler Gordon Douglas Gardiner Ronald William Gleaves Alistair William Goldin Henry Charles Gough Phyllis May Guthrie Gladys Ellen Harris Patricia Elizabeth Harrod Judith E Holland Walter Horsman Olive Alice Hoskins Irvin Alan Hosie Toni Patrice Howden William Kenneth Howard Nellie Hunter Allan George Ireland

Edith Eunice Jennings Edward Leslie Jones Edith Myfanwe Kentish Iris Burwah Mangan David McKelvie Margaret Ann McLennan Adrian Dallas Miles Isabel Dorothy Murphy Edith Elwyn Neilson James Oakley John Joseph O'Donohue Ida Dorothea Pech Lilian Betty Perrett Heather Colina Philp Muriel Norma Poole Betty Maria Reddall Brenda Jean Rolfe Norval Jean Ruscoe Peter William Sanderson Margaret Ann Shevill Phyllis Agnes Smith Margaret Hamilton Smith Leslie Thomas Sullivan David Hilton Sunner June Taylor Terence Taylor Mavis Roseann Harriett Tomlinson Pauline Ada Vallance Madeleine Patricia Vanderkolff James Rowland Webb Anneliese Johanna Webster Joyce Miriam Wickham

4

National Heart Foundation of Australia (Queensland Division)

Major Supporters The following individuals made significant contributions to the Heart Foundation in 2015 Mr Arthur Ashwin Mr Marc Atkins Mrs Margaret Bailey Mr Richard Beer Mrs Karen and Mr Gavin Bird AO Mrs Lauren Bird Mr Roger and Mrs Ann Bowden Mr David S Brandt Mr Kelsey Bray Mr David Buzacott Mrs Margaret Cameron Mr Colin Campbell Cannon Hill Anglican College Mrs Joyce Carkeek Mr John A Chipman Mr Donald Clark Mr Jeff and Mrs Rebecca Clarke Mrs Doris Cohen Mrs Eileen J Colless Mr Stan Conlon Mrs Lyn Coomber Mr Michael Cooper Mrs Heather Craig Mrs Shirley Daniell Mr Frank De Jong De Silva Mr Michael De Marinis Mr Ronald and Mrs Irma Dedekind Mrs Helen Dee Mr Andrew Douglas Mr John Eastment Mr John and Mrs Merle Faulkner Mr Theo Feros Mrs Jenny Frith Drs K and M Fry Mr Alan J Galwey Hon. Teresa Gambaro MP, Federal Member for Brisbane Mr D J Gardiner Mr George W Gee Mr Kevin Gib Mr Rodney Gibson Mr J F A Gill Dr Robert Gillespie Miss Ailsa J Gillies Ms Desley Gist Mr Frank and Mrs Marge Gist Mr John Gorrell Mrs Nanette Gottlieb

Mr Francis Goudge Mrs Kate Grantley Mrs Elaine Greenwood Mr Tony Groom Mr Alec Harries Mr Roy and Mrs Julie Henzell Mrs Ellen Hirst Mr J L Hoge Mr Ian and Mrs Julie Humphreys Mr Daryl Johnson Mrs Dianne Knowles Mr John-Paul Langbroek MP Mr Bill Laver Mr Ray Liekefett Mr Douglas Logan Mrs Margaret Lyall Mr Bruce Macdonald Mrs Frances Macskimin Mr Rod Martin Mr Colin R Mason Mrs Dana McCown Mr Jock McIlwain OAM and Mrs Beverly McIlwain Morgan Family Ms Nicole Morgan Mr Pat and Justice Debra Mullins Mr Darren Musilli Mr Gerard Muyser Mr Len Olive Mrs Jacqueline Pascual Mr Peter Peillon Ms Liselotte Peyer Ms Marlene Phillips Mr Ian and Mrs Roslyn Pike Reverend Des Pritchard Miss K Rice Mr Brian Richardson Mrs Valerie Roberts Mr Edward J Rowe Mrs Win Schubert AO Professor T K Sen Gupta Mr Jean-Leon Shanks Father and Mrs Garth Shaw Mr Colin Sheehan Mr Arthur Simpson Mr Gordon B Simpson Mr Paul Simpson Ms Sara Smith

5

National Heart Foundation of Australia (Queensland Division)

Major Supporters (continued) Dr T J Solomon Mr Stan Sperling Ms Coral J Springfield St Margaret's Anglican Girls School Mrs Maureen Stevenson Mr Arthur Straker Miss Tani Stubbs

Ms Kayleen Taylor Mr Kevin and Mrs Alison Thomson Mr Peter Walsh Ms B Jean Weaver Dr Nikki Whelan Miss Nel Williams

Corporate and Club Supporters Many companies, clubs, schools, community groups and other organisations support the Heart Foundation in a variety of ways by mak ing donations, sponsoring programs, providing in-k ind support and participating in events. We would lik e to thank the following for their support in 2015:

Corporate Supporters Alcheringa Holiday House, Binna Burra Apple Marketing Group Boost Foundation Pty Ltd Bicycle Queensland Bupa Rockhampton Businesswise (Australia) Pty Ltd 99 Bikes Commonwealth Bank Fulton Hogan Gambaro Hotel Manpower Rockhampton Major League Corporate Marketing

Mater Hospital Mackay Medibank Rockhampton Rocla Pty Ltd Sci-Fleet Toyota Stockland Rockhampton Suncorp Bank Suncorp Group The Capricornian Ltd The Rockhampton Bank TUH Worley Parsons Reinforced Concrete Pipes Australia Pty Ltd

Club Supporters Burpengary Pine Village Social Club Inc Burrum Heads Bowls Club Inc Brisbane Grammarians Rowing Club Hannaford/The Gums Campdraft Committee Inner Wheel of Rockhampton Sunset Inc Italo-Australian Centre Lions Club of Ashgrove - The Gap Inc Lions Club of Emu Park Inc

Lions Club of Forest Lake Mackay Bowls Club Rainbow Beach Community Information & Resource Service Riverside Rebels Rugby Union Club RSL Wynnum Women's Auxiliary Southport RSL Stockland Walkers Texas Pony Club

6

National Heart Foundation of Australia (Queensland Division)

Trusts and Foundations Alma Jackson Trust AMP Foundation Charitable Trust Department of Communities, Child Safety and Disability Services Estate of Janice Edith Cosgrove Estate of John Roy Hucker Trust Estate of Lillian May Thomas Estate of Lorna May Andrews Estate of the Late Emily Swaffer Ethel Wallace Foundation Frederick Wallace Gilbert & Delia Gilbert Fund Gambling Community Benefit Fund Gladys Winifred Wieland Trust Hester Florence Lamont John Louis Lazarus Levine and Sarah Levine Fund Mr Greg Hooper Neumann Benevolent Foundation Newman's Own Foundation Perpetual Foundation - The Ivan Maurice Jones Endowment Sylvia Kathleen Richardson Trust The Allan & Patricia Ellen Coulson Memorial Trust The Arthur & Doris Wilkinson Memorial Trust The Beryl Beatrice Scott and Gordon Ferguson Scott Memorial Trust The Beryl Pearl Pilkington Perpetual Charitable Trust The C H Boden Memorial Trust The Cory Charitable Foundation The Derek Martin Muller Bequest The Edward Bullock Gift Fund The Florence Agnes Todd Charitable Trust The Hart Family Perpetual Trust The Henry Cyril Robjohns and Stella May Robjohns Memorial Trust The Ira Josey, Peace Mary & Ashley Josey Keidge Perpetual Charitable Trust The J C & P M Martin Trust The Jack & Bon Mason Memorial Trust The Jack Jacobs Charitable Trust The John Villiers Trust The Peter David Ferguson Bequest The Stanley & Eunice Nicholson Trust The Thomas & Coral Williams Trust The Thomas and Vera Condie Trust The Thomas Hanley and Winnifred Jean Kelly Memorial Fund Vincent & John Patrick Cahill Medical Research Trust Fund

Schools Over 36,950 children in 156 schools raised funds for the Heart Foundation in the Jump Rope for Heart program. The award-winning schools in 2015 were: Highest fundraising school: Townsville Grammar School Highest raised per student enrolment: Hannaford State School

7

Directors’ Report for the year ended 31 December 2015 The directors present their report together with the general purpose financial report for the National Heart Foundation of Australia (Queensland Division) (“the Foundation”) for the year ended 31 December 2015 and auditors’ report thereon. Directors The following directors of the Foundation, all of whom are independent, non-executive and held office at any time during or since the end of the financial year:

Name and qualifications

Experience and special responsibilities

Mr Brett Delaney BCom, FCA, MAICD

Member of National Finance and Audit Committee 7/5/08 to 7/5/2015; Retired Partner, PricewaterhouseCoopers; Member of Council for University of Southern Queensland & Chair of Audit & Risk Committee; Chair of Audit & Risk Committee – Honeycombes Property Group; Fellow of the Institute of Chartered Accountants Australia New Zealand; Member of Australian Institute of Company Directors. Appointed Honorary Secretary/Treasurer 7/5/08 to 7/5/2015. Appointed President 7/5/2015.

Ms Melanie Gin BCom

Dr Roger K Wilkinson MBBS, BA, M.Litt., FRACP, FCSANZ

Board Meetings Attended & held #

Appointment and resignation

4/4

Exec Board Meetings Attended & held # 4/4

Member of National Finance and Audit Committee; Senior Forensic Auditor/ Financial Accountant, Energex Pty Ltd. Member of the Institute of Chartered Accountants. Appointed Honorary Secretary/ Treasurer 7/5/2015.

4/4

4/4

Appointed 19 February 2015

Senior Visiting Consultant in Cardiology, Royal Brisbane Hospital; Consultant Cardiologist to St Andrew's War Memorial Hospital; Senior Lecturer in Medicine (Clinical) University of Queensland. Appointed Deputy President 20/4/05 to 19/4/06. President 19/4/06 to 25/5/09. Appointed Acting President 27/3/13 to 23/4/13. Appointed President 23/4/13 to 7/5/2015.

3/4

4/4

Appointed 31 October 1996

Mr Paul K Bird President, Montrose Therapy and Respite GradDipBusAdmin, BA, FPRIA, Services; Publisher and Director, IN Noosa FAICD Magazine; Corporate Advisor to Board of Directors RCP (Resource Co-ordination Partnership); Director, Linksplus Pty Ltd. Fellow-AICD, Fellow-PRIA.

2/4

4/4

Appointed 8 December 2008

Ms Rebecca Treston QC

Queen’s Counsel. Retired member of the Queensland Law Reform Commission. Special interest in Estates and Trusts.

4/4

3/4

Appointed 12 June 2013

A/Prof David Colquhoun MBBS, FRACP, FCSANZ

Cardiologist at the Wesley Medical Centre and Greenslopes Private Hospital. Medical Director of Core Research Group.

3/4

Appointed 5 June 2013

Prof Michael Good AO MD PhD, FASM, FRACP, FTSE, FAHMS

Medical Researcher, NHMRC Senior Principal Research Fellow. Head, Laboratory of Vaccines for the Developing World, Institute for Glycomics, Griffith University.

2/4

Appointed 12 December 2013

Appointed 24 August 2005

8

Directors’ Report for the year ended 31 December 2015 Dr Colin Dillon AM APM

Member of the Kumbumerri people. Current board chairman of the Brisbane Indigenous Media Association. Former commissioner of the Aboriginal and Torres Strait Islander Commission and director of Aboriginal Hostels Limited. Served on Queensland Police Service and is a recipient of an Australian Police Medal (in the Queen's Honours’ list) for distinguished Police Service to Queensland in 1992.

2/3

Appointed 7 May 2015

Mr Ian Humphreys BA (UNSW), LLB (UTS), Dip Leg Prac (UTS), LLM (Syd)

Managing Partner of the Brisbane Office of Ashurst Australia. Admitted in New South Wales (1990), High Court (1991) and Queensland (1995) and England and Wales as a foreign lawyer (2014).

3/3

Appointed 7 May 2015

Mr Tim Sayer BA LLB (UQ), LLM (USyd), Dip.Soc.Stud (Oxon)

Partner at Talbot Sayer Lawyers. Member of the Riviera Australia Advisory Board.

0/2

Professor Robyn McDermott MBBS, MPH, PhD, FAFPHM

Professor of Public Health Medicine and Director, Centre for Chronic Disease Prevention at James Cook University.

0/2

Appointed 5 June 2013 Resigned 7/5/2015 Appointed 20 Feb 2014 Resigned 7/5/2015

# meetings attended and meeting held while the Director held office

Corporate Governance Statement The Foundation is a company limited by guarantee, incorporated under the Corporations Act 2001. Ultimate responsibility for the governance of the company rests with the Board of Directors. This corporate governance statement outlines how the Board meets that responsibility. The Board believes the principles of good corporate governance underpin the values and behaviour of the Foundation. Role of the Board The Board's primary role is to ensure that the activities of the Foundation are directed towards achieving its mission to reduce suffering and death from heart, stroke and blood vessel disease in Australia. The Board must ensure that this mission is achieved in the most efficient and effective way. The Foundation operates as part of a co-operative federation with the Divisions in each of the other States and Territories of Australia. The relationships between all entities are set out in a Federation agreement with the Divisions making grants to the National Heart Foundation of Australia to fund research and other health programs conducted on a National basis. Federation Agreement The Foundation entered into a 5 year Federation agreement on the 23rd November 2012. This agreement replaced the previous Memorandum of Understanding and took effect from 1st January 2013. Shared Services which were the responsibility of and hosted by various divisions in other States and Territories continue to be hosted by those divisions, but are now the responsibility and under the direct control of the National Heart Foundation of Australia. All costs associated with these renamed “Group Services” are held and accounted for in the National Heart Foundation of Australia’s accounts unless there is a requirement at law for them to be recognised in the Foundations in which case they are recovered. This change to the operational structure has decreased the Foundation’s expenditure but is offset by increased grants to the National Heart Foundation of Australia. Oversight by the Board The Board oversees and monitors the performance of management by:  Meeting eight times during the 2015 year  Receiving detailed financial and other reports from management at those meetings  Receiving additional information and input from management when necessary

9

Directors’ Report for the year ended 31 December 2015 Specific responsibilities of the Board The Board fulfils its primary role by:  Selecting, appointing, guiding and monitoring the performance of the Chief Executive Officer ("CEO")  Formulating the strategic plan of the Foundation in conjunction with the CEO and management  Approving operating and capital budgets formulated by the CEO and management  Monitoring the progress of management in achieving the strategic plan  Monitoring the adherence by management to operating and capital budgets  Ensuring the integrity of internal control, risk management and management information systems  Ensuring stakeholders receive regular reports, including financial reports  Ensuring the independence of the Foundation from government, industry and other groups in determining  health and other policies and recommendations  Ensuring the Foundation complies with relevant legislation and regulations  Acting as an advocate for the Foundation whenever and wherever necessary These responsibilities are set out in a Corporate Governance Framework, including a Board Charter. Responsibilities of management The Board has formally delegated responsibility for the day-to-day operations and administration of the Foundation to the CEO and executive management. Board members All Board members are independent, non-executive directors and act in an honorary capacity. The Constitution of the Foundation specifies:  There must be no less than 4 and no more than 12 directors, of whom up to two must be legally qualified Medical Practitioners.  No employees of the Foundation, including the CEO, can be a director of the Foundation. Board members are appointed to ensure a breadth of skill and knowledge across all areas of the work of the Foundation. The current Board’s qualifications, skills, experience and responsibilities appear on pages 8 and 9. Board members receive written advice of the terms and conditions of their appointment and complete a structured induction program when first appointed. Management presentations to the Board enable directors to maintain knowledge of the business and operations of the Foundation. Risk management The Board oversees the establishment, implementation and regular review of the risk management system of the Foundation, which is designed to protect its reputation and manage those risks that might preclude it from achieving its mission. Management is responsible for establishing and implementing the risk management system which assesses, monitors and manages operational, financial reporting and compliance risks. The financial statements of the Foundation are subject to independent, external audit. Guidelines for internal controls have been adopted and compliance is reviewed bi-annually by independent staff from another Division. Ethical standards and code of conduct Board members, all staff and volunteers are expected to comply with relevant laws and codes of conduct of relevant professional bodies, and to act with integrity, compassion, fairness and honesty at all times when dealing with colleagues and any stakeholders in the mission of the Foundation. Board members, all staff and volunteers are provided with a copy of the Foundation's Code of Conduct policy during their induction to the organisation. Involving stakeholders The Foundation has many stakeholders, including its donors and benefactors, its staff and volunteers, the broader community, its suppliers and other members of the National Heart Foundation of Australia co-operative federation. The Foundation adopts a consultative approach in dealing with its stakeholders. The Board has endorsed and is constantly reviewing the Foundation's policies and procedures that uphold the reputation and standing of the Foundation. Principal Activities and Achievement of Objectives The primary activities of the Foundation are directed towards achieving its mission to reduce suffering and death from heart, stroke and blood vessel disease in Australia through the support of research into the causes and cures of heart disease, the rehabilitation of sufferers from heart disease, professional and community education about heart disease, and the raising of funds to carry out this work. There were no significant changes in the nature of those activities during the year.

10

National Heart Foundation of Australia (Queensland Division)

Directors’ Report for the year ended 31 December 2015 SHORT AND LONG TERM OBJECTIVES AND STRATEGIES FOR ACHIEVING THESE OBJECTIVES Alignment to strategic plan "For All Hearts" The Foundation has a five-year strategic plan, For All Hearts 2013-2017, aligned directly with our vision for Australians to have the best cardiovascular health in the world and our mission to reduce suffering and death from heart, stroke and blood vessel disease in Australia. Through For All Hearts, we have focused on four main goals;  Healthy hearts  Heart care  Health equity  Research The plan aims to unite and empower all Australians to transform our nation’s heart health. Our aspirational goal is to link our work to supporting a global target of reducing premature deaths by 25% by 2025, through curbing chronic disease risks (including cardiovascular disease). Performance Measures and Key Achievements in 2015 The Foundation has a process for measuring its performance and regular reports are provided to the Board on the following key results areas:  Finance and Operations  Fundraising and Donor Engagement  Research  Community Engagement and Awareness Some key Achievements against some of these performance measures included significant increases in:  personal relevance of the Heart Foundation to Australians aged 30 - 65  the Foundation's effectiveness in raising the community's awareness/knowledge of heart health;  awareness of heart disease as a leading cause of death for Australian women;  unprompted awareness of the Tick brand;  awareness of risk factors by women; and  awareness of a typical heart attack symptoms. Review of Results and Operations for Current Year Charitable support from the general public continued to be strong in 2015. Revenue from this type of fundraising is obtained in an increasingly competitive charity climate. Total revenue from operating activities was 21% lower ($2,050,878) compared to last year. Revenue from fundraising activities was 18% lower than last year due to decreases in bequest and donations received. This result was predominantly driven by the Bequest program which is difficult to predict and can vary dramatically from year to year. The Foundation remains extremely grateful for the bequest income that is directed to the organisation by so many Queenslanders. Notifications of confirmed and intended bequests continued to grow during the year and is a strong indication of continuing strong results in the future. Total expenditure was 22% lower ($2,211,031) compared to last year. The Foundation continued to contribute strongly to the National company in support of cardiovascular research and local health programs to the sum of $4.27 million in 2015. During 2015 the Foundation played a major role both in its own right and through its leadership in a number of collaborations and alliances that significantly contributed to the following outcomes:  22,000 Queenslanders received a copy of My Heart My Life to help them navigate the days, weeks and months following their heart attack  77 Queensland Community Speakers shared heart health messages to more than 3500 people across the state  Princess Alexandra Hospital in Brisbane is a trial hospital for the Heart Foundations Lighthouse Project, to improve cardiovascular health outcomes for Aboriginal and Torres Strait Island patients.  Queensland Government funding was awarded to expand the 273 Heart Foundation Walking groups throughout the state, to develop an online version of My Heart My Life and Enhancement of Cardiac Rehabilitation and Heart Failure Services Directory.  18 Queensland researchers were supported with Heart Foundation funding.  The Heart Foundation launched the Queensland Cardiovascular Research Network (QCVRN) at Government House in November. The QCVRN will enable greater collaboration and advocacy for research in our state.

11

National Heart Foundation of Australia (Queensland Division)

Directors’ Report for the year ended 31 December 2015 Review of Results and Operations for Past Five Years Set out below is a comparative table of income and expenditure and assets and liabilities for the past 5 years, including relevant ratios. As a result of strong financial performance over the past 5 years, the Foundation has been able to contribute over $32 million to health programs and research. 2015 Incom e & Expenditure Charitable support - bequests Charitable support - non-bequests Fundraising incom e Government non-reciprocal grants Grants for specific health programs Other income Total incom e Less: Fundraising expenditure Communications & administration Surplus available for health program s & research Health programs conducted locally Contributions to National health programs & research Balance added to/(deducted from ) equity Ratios: Fundraising expenditure to fundraising income Surplus from fundraising to fundraising income Surplus available for health programs & research to total income Expenditure on health programs and research to total income Expenditure on health programs and research to total expenditure Annual increase in expenditure on health programs & research

3,355,581 4,259,020 7,614,601 0 259,067 40,764 7,914,432 (3,042,632) (486,099) 4,385,701 (1,783,815) (2,489,810) 112,076 % 40% 60% 55% 54% 55% (34%) 2015

Assets & Liabilities Cash & investments Computers, cars & equipment Other assets Total assets Total liabilities Total equity

1,082,360 60,050 156,974 1,299,384 (884,073) 415,311

2014 4,624,342 4,634,925 9,259,267 50,000 624,268 31,773 9,965,309 (3,149,555) (420,914) 6,394,840 (2,063,208) (4,379,710) (48,079) % 34% 66% 64% 65% 64% 4% 2014 1,307,546 193,737 92,049 1,593,332 (1,290,097) 303,235

2013 3,584,052 5,421,962 9,006,014 50,000 754,074 41,630 9,851,718 (3,504,868) (444,082) 5,902,768 (2,241,125) (3,983,015) (321,372) % 39% 61% 60% 63% 61% (11%) 2013 1,032,141 130,319 327,536 1,489,996 (1,138,683) 351,313

2012 5,232,362 5,737,909 10,970,271 50,000 751,660 122,376 11,894,307 (4,321,000) (505,848) 7,067,459 (2,573,433) (4,417,983) 76,043 % 39% 61% 59% 59% 59% (17%) 2012 1,915,746 162,206 285,210 2,363,162 (1,690,477) 672,685

2011 6,701,043 4,558,044 11,259,087 50,000 835,372 137,025 12,281,484 (3,301,376) (513,850) 8,466,258 (2,552,611) (5,844,077) 69,570 % 29% 71% 69% 68% 69% 31% 2011 1,875,925 183,631 341,088 2,400,644 (1,804,002) 596,642

Events Subsequent to Reporting Date No matter or circumstances have arisen in the interval between the end of the financial year and the date of this report, which are likely in the opinion of the Directors to significantly affect the operations of the Foundation, the results of those operations or the state of affairs of the Foundation in subsequent financial years. Likely Developments In the opinion of the directors there are no likely developments that will change the nature of the operations of the Foundation. Environmental Regulation The Foundation’s operations are not subject to any significant environmental regulations under both Commonwealth and State legislation. However the Directors believe that the Foundation has adequate systems in place for the management of its environmental requirements and are not aware of any breach of those environmental requirements as they apply to the Foundation.

12

National Heart Foundation of Australia (Queensland Division)

Directors’ Report for the year ended 31 December 2015 Insurance Premiums Since the end of the previous financial year the National Heart Foundation has paid insurance premiums on behalf of the Foundation in respect of directors’ and officers’ liability and legal expense insurance contracts, for the current and former directors and officers, including executive officers, of the Foundation. The insurance premiums relate to:  costs and expenses incurred by the relevant officers in defending proceedings, whether civil or criminal and whatever their outcome; and 

other liabilities that may arise from their position, with the exception of conduct involving a wilful breach of duty or improper use of information or position to gain a personal advantage.

The premiums were paid in respect of the directors and officers of the Foundation listed in this report, and do not contain details of premiums paid in respect of individual directors or officers. The lead auditor's independence declaration is set out on page 31 and forms part of the directors’ report for financial year 2015.

Signed in accordance with a resolution of the Directors.

Mr Brett Delaney President Dated at Brisbane this 24th day of March 2016

13

National Heart Foundation of Australia (Queensland Division)

Directors’ Declaration for the year ended 31 December 2015

In the opinion of the directors of National Heart Foundation of Australia (Queensland Division) ("the Foundation"): (a)

the financial statements and notes, set out on pages 15 to 28, are in accordance with the Australian Charities and Not-For-Profits Commission Act 2012, including: (i) (ii)

(b)

giving a true and fair view of the Foundations financial position as at 31 December 2015 and of its performance for the financial year ended on that date; and complying with Australian Accounting Standards and the Australian Charities and Not-For-Profits Commission Regulations 2013; and

there are reasonable grounds to believe that the Foundation will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the Directors.

Mr Brett Delaney President Dated at Brisbane this 24th day of March 2016

14

National Heart Foundation of Australia (Queensland Division)

Statement of Comprehensive Income for the year ended 31 December 2015

Notes Revenue Revenue from operating activities Total revenue Net gain/(loss) on sale of property, plant and equipment Health programs (including those funded by grants) Fundraising Communications and publicity Administration Total expenditure Finance income Finance costs Net Finance income/(cost) Operating surplus/(deficit) Net Grants to National Heart Foundation of Australia Surplus/(deficit) for the year Total other comprehensive income Total comprehensive income for the year

4

6

2015 $ 7,896,816 7,896,816 1,793 (1,783,815) (3,042,632) (228,509) (259,383) (5,312,546) 17,616 0 17,616 2,601,886 (2,489,810) 112,076 0 112,076

2014 $ 9,937,355 9,937,355 0 (2,063,208) (3,149,555) (278,246) (142,577) (5,633,586) 27,954 (91) 27,863 4,331,632 (4,379,710) (48,078) 0 (48,078)

Statement of Financial Position as at 31 December 2015 2015 $

2014 $

7a 8

1,082,360 156,974 1,239,334

1,307,546 92,049 1,399,595

9

60,050 60,050 1,299,384

193,737 193,737 1,593,332

10 11 12

250,061 356,598 239,796 846,455

883,845 181,758 205,153 1,270,756

12

37,618 37,618 884,073 415,311

19,341 19,341 1,290,097 303,235

415,311 415,311

303,235 303,235

Notes Current assets Cash and cash equivalents Trade and other receivables Total current assets Non-current assets Property, Plant, equipment and vehicles Total non-current assets Total assets Current liabilities Trade and other payables Grants income deferred Employee benefits Total current liabilities Non-current liabilities Employee benefits Total non-current liabilities Total liabilities Net assets Equity Retained earnings Total equity

The notes on pages 17 to 28 are an integral part of these financial statements

13

15

National Heart Foundation of Australia (Queensland Division)

Statement of Changes in Equity for the year ended 31 December 2015

2015 $ 303,235

2014 $ 351,313

Comprehensive income for the year Surplus/(Deficit) Other comprehensive income Total comprehensive income for the year

112,076 0 112,076

(48,078) 0 (48,078)

Balance of Equity as at 31 December

415,311

303,235

Balance of Equity as at 1 January

Statement of Cash Flows for the year ended 31 December 2015

Notes

Cash flows from operating activities Cash receipts in the course of operations Cash payments in the course of operations Net grants made to National Heart Foundation of Australia Net financial income Net cash from operating activities Cash flows from investing activities Proceeds from sale of property, equipment and vehicles Acquisition of property, equipment, vehicles and computer software Net cash from investing activities Net increase in cash and cash equivalents Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December

The notes on pages 17 to 28 are an integral part of these financial statements

7b

7a

2015

2014

$

$

7,807,289 (3,580,201) (4,580,066) 16,244 (336,734)

9,063,567 (3,563,857) (5,252,259) 27,954 275,405

115,000

0

(3,452) 111,548 (225,186) 1,307,546 1,082,360

0 0 275,405 1,032,141 1,307,546

16

National Heart Foundation of Australia (Queensland Division)

Notes to the Financial Statements for the year ended 31 December 2015 1 Reporting entity The National Heart Foundation of Australia (Queensland Division) (the "Foundation") (ABN: 32 009 691 570) is a company domiciled in Australia. The address of the Foundation's registered office is 557 Gregory Terrace, Fortitude Valley QLD 4006. The Foundation is a not for profit charity, registered under the Australian Charities and Not-For-Profits commission, devoted to reducing suffering and death from heart, stroke and blood vessel disease in Australia. 2 Basis of preparation (a) Statement of compliance The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards (AASBs) (including Australian Interpretations) adopted by the Australian Accounting Standards Board (AASB) and the Australian Charities and Not-For-Profits Commission Act 2012. The financial report was authorised for issue by the directors on 24 March 2016. (b) Basis of measurement The financial report is prepared on the historical cost basis except for equity instruments which are measured at fair value. (c) Functional and presentation currency The financial report is presented in Australian dollars, which is the Foundation's functional currency. (d) Use of estimates and judgements The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and other various factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. Significant accounting estimates and assumptions. The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting period are: Provisions for employee benefits Provisions for employee benefits payable after 12 months from the reporting date are based on future wage and salary levels, experience of employee departures, and periods of service, as discussed in Note 3(k). The amount of these provisions would change should any of these factors change in the next 12 months.

3

Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in this financial report. (a) Revenue recognition (i) Charitable support Revenue is received from appeals, donations, fundraising events and bequests and is brought to account on a cash received basis. When assets, such as investments or properties, are received from a bequest or donation, an asset is recognised, at fair value, when the Foundation gains control of such assets and the value of the asset can be reliably measured. (ii) Interest and dividend revenue Interest revenue is recognised as it accrues on a daily basis. Dividend revenue is recognised when the right to receive payment is established. Where dividends are franked the dividend is recognised inclusive of imputation credits, which are refunded by the ATO. (iii) Grants for health programs (deferred income) Grants received for specific health programs are recognised as income only to the extent of work completed on those projects when the terms of the grant stipulate that any unexpended funds are to be returned to the sponsor if the program is not completed. In those circumstances the funds attributable to work still to be completed are carried forward as grants income deferred. (iv) Sale of goods Revenue from the sale of goods is recognised when control of the goods passes to the customer.

17

National Heart Foundation of Australia (Queensland Division)

Notes to the Financial Statements for the year ended 31 December 2015 3

(b)

(c)

(d)

(e) (f)

(g)

(h)

Significant accounting policies (continued) (v) Services of volunteers A substantial number of volunteers, including directors and members of committees, donate a significant amount of their time to the activities of the Foundation. School children across Queensland also supported the Foundation by participating and raising funds through the Jump Rope for Heart program. In total this involved over 36,950 children and 156 schools. The Foundation's door knock program successfully recruited over 20,796 volunteers to collect funds in 2015. However, as no objective basis exists for recording and assigning values to these services, they are not reflected in the financial statements as either revenue or expenses. Cash and cash equivalents Cash and cash equivalents comprise cash, bank accounts and short term deposits maturing within 90 days and are stated at fair value. Goods and services tax Revenues, expenses and assets are recognised net of the amount of goods and services tax ("GST"). Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the Australian Taxation Office ("ATO") is included as a current asset or current liability in the statement of financial position. Cash flows are included in the statement of cash flows on a gross basis. The GST component of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows. Income Tax The Foundation is exempt from paying income tax due to being a charitable institution in terms of section 50(5) of the Income Tax Assessment Act 1997. The Foundation is also endorsed as a Deductible Gift Recipient and fall under item 1 of the table in section 30-15 of the Income Tax Assessment Act 1997. Trade and other receivables Trade and other receivables are stated at cost less impairment losses, this being equivalent to fair value. Equipment and vehicles (i) Recognition and measurement Items of equipment and vehicles are measured at cost less accumulated depreciation and impairment losses. Cost includes expenditure directly attributable to the acquisition of the asset. Such assets are recognised/derecognised by the Foundation on the date it commits to purchase/sell each item. Gains and losses on disposal of an item of equipment and vehicles are determined by comparing the proceeds from the disposal with the carrying amount of equipment and vehicles and are recognised on a net basis in the statement of comprehensive income. (ii) Depreciation Depreciation is charged on a straight-line basis over the estimated useful lives of each item of equipment and vehicles from the date they are acquired and are ready for use. The estimated useful life in the current and comparative periods are as follows:  computer equipment 3 years  office furniture and equipment 5 - 10 years  motor vehicles 6 – 7 years Depreciation methods, remaining useful lives and the residual values of individual assets, if not insignificant, are reviewed at each reporting date. Leased assets including property and equipment Leases in terms of which the Foundation assumes substantially all the risks and benefits of ownership are classified as finance leases. A lease asset and a lease liability equal to the present value of the minimum lease payments are recorded at the inception of the lease. Lease liabilities are reduced by payments made. The interest components of the lease payments are expensed. There have been no finance leases during the periods covered by these financial statements. Other leases are classified as operating leases and payments are expensed on a straight line basis over the term of the lease. Non-derivative financial assets A financial asset is recognised on the date the Foundation becomes party to the contractual provisions of the asset. Financial assets are derecognised if the Foundation’s contractual rights to the cash flows from the financial assets expire. Purchases and sales of financial assets are accounted for at trade date.

18

National Heart Foundation of Australia (Queensland Division)

Notes to the Financial Statements (continued) for the year ended 31 December 2015

3

Significant accounting policies (continued)

(i) Impairment (i) Non-derivative financial assets including receivables Each financial asset, apart from those classified at fair value, is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset. Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring of an amount by the Foundation on terms that the Foundation would not consider otherwise, indications that a debtor or issuer will enter bankruptcy or the disappearance of an active market for a security. (ii) Non-financial assets The carrying amounts of non-financial assets, other than inventory, are reviewed at each reporting date to determine whether there is any objective evidence that they are impaired. If any such indication exists, the asset’s recoverable amount is estimated (refer to note 3(i)(iii)). An impairment loss for an individual asset measured under the cost model is recognised in the statement of comprehensive income, whenever the carrying amount of an asset exceeds its recoverable amount. (iii) Calculation of recoverable amount The recoverable amount of assets is the greater of their net selling price and value in use. As the future economic benefits of the asset are not primarily dependent on the asset's ability to generate cash inflows, value in use is the depreciated replacement cost of the asset concerned. (j) Trade and other payables (non-derivative financial liability) Trade and other payable are stated at cost, this being equivalent to fair value. (k) Employee benefits (i) Short term benefits The provisions for employee entitlements to wages, salaries, annual and paid maternity leave represent obligations resulting from employees' services provided up to reporting date, calculated at undiscounted amounts based on wage and salary rates, including related on-costs, which the Foundation expect to pay at each reporting date. (ii) Long term benefits The provision for employee entitlements to long service leave represents the present value of the estimated future cash outflows to be made resulting from employees' services provided up to reporting date. The provision is calculated using the following weighted averages:  assumed rate of future increases in wage and salary rates: 2015 3.0% (2014: 2.0%)  discount rate based on national government securities which most closely match the terms to maturity of the related liabilities: 2015 2.88% (2014: 2.81%)  expected settlement dates based on turnover history: 2015: 15 years (2014: 15 years) (iii) Defined contribution plans A defined contribution superannuation plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Superannuation contributions are made by the Foundation in respect of all employees to provide accumulation style benefits only. Obligations for contributions to defined contribution superannuation plans are recognised as a personnel expense in the period during which services are rendered by employees. (l) Provisions A provision is recognised if, as a result of a past event, the Foundation has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cashflows at a pre-tax rate that reflects current market assessment of the time value of money and risks specific to the liability. The unwinding of the discount is recognised as a finance cost. (m) Segment reporting The Foundation operates in only one business segment as a charity. The Foundation operates in one geographical segment, Queensland. (n) Finance income and finance costs Finance income comprises interest income, dividend income and gains on disposal of financial assets. Finance costs comprise losses on disposal and impairment of financial assets.

19

National Heart Foundation of Australia (Queensland Division)

Notes to the Financial Statements (continued) for the year ended 31 December 2015

3

Significant accounting policies (continued)

(o) Financial risk management The Foundation has exposure to the following risks from their use of financial instruments:  credit risk  liquidity risk  market risk  operational risk Further details in respect of each of these risks are set out in note 18 Financial Instruments. The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. Risk management policies are established to identify and analyse the risks faced by the Foundation, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Foundation’s activities. The Foundation, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. Capital management The Board's policy is to maintain a strong capital base so as to maintain supporter, donor, creditor and market confidence and to sustain future development of the Foundation. There were no changes in the Foundation’s approach to capital management during the year. The Foundation is not subject to externally imposed capital requirements. Economic dependency The National Heart Foundation of Australia (“National”) and the state and territory Divisions operate as a cooperative federation. Virtually all revenue from charitable support is received by the Divisions, however most expenditure on research and certain health programs is spent by National. National relies on net grants from the Divisions to fund its commitments. Such grants are receivable under the terms of a Federation Agreement between National and each of the Divisions. The Federation Agreement also provides funding to the Foundation in the event that there are insufficient funds internally generated to support an adequate level of working capital to deliver the business plan approved by the Board. (p) New standards and interpretations not yet adopted A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 January 2015, and have not been applied in preparing these financial statements. Those which may be relevant to the Foundation are set out below. The Foundation does not plan to adopt these standards early. AASB 15 Revenue from contracts with customers, becomes mandatory for the 2018 financial statements and could change the classification and recognition method of revenue. It establishes a comprehensive framework for determining whether, how much and when revenue is recognised. The Foundation is assessing the potential impact on its financial statements resulting from the application of AASB 15. AASB 16 Leases requires companies to bring most operating leases on-balance sheet from 2019. Companies with operating leases will appear to be more asset-rich, but also more heavily indebted. AASB 16 is effective for the Foundation’s 2019 financial statements. The Foundation does not plan to adopt this standard early and the extent of the impact has not been determined. The following new standards are not expected to have a significant impact on the Foundation’s financial statements.  Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to AASB 116 and AASB 138) (q) Determination of fair values A number of the Foundation’s accounting policies and disclosures require the determination of fair value. Fair values have been determined for measurement and/or disclosure purposes based on the following methods; (i) Equity and debt securities The fair value of equity and debt securities is determined by reference to their quoted closing bid price at the reporting date, or if unquoted, determined using a valuation technique. Valuation techniques employed include market multiples and discounted cash flow analysis using expected future cash flows and a market-related discount rate.

20

National Heart Foundation of Australia (Queensland Division)

Notes to the Financial Statements (continued) for the year ended 31 December 2015 2015 $ 4 Revenue from operating activities Charitable support - bequests Charitable support - non-bequests Sale of goods Total revenue from fundraising activities Grants for specific health programs - Government Grants for specific health programs and research - other Other Total revenue from other operating activities Total revenue from operating activities

2014 $

3,355,581 4,257,974 1,046 7,614,601 173,539 85,528 23,148 282,215 7,896,816

4,624,342 4,683,641 1,284 9,309,267 400,345 223,923 3,820 628,088 9,937,355

29,580 29,580

29,000 29,000

6 Finance income and costs Recognised in Surplus/(Deficit) Interest income Dividend income Finance income Impairment/ realised loss on trade receivables Finance costs Net finance income and costs recognised in Surplus/(Deficit)

15,280 2,336 17,616 0 0 17,616

25,537 2,417 27,954 91 91 27,863

7a Cash and cash equivalents Cash and cash equivalents include bank accounts and short term deposits maturing within 90 days paying interest rates of 0.01% to 3.15% (2014: 0.01% to 3%)

1,082,360

1,307,546

1,082,360

1,307,546

5 Auditors' remuneration KPMG Australia: Audit services

The Foundation's exposure to interest rate risk for financial assets and liabilities are disclosed in note 17. The carrying value of cash and cash equivalents is equal to fair value.

21

National Heart Foundation of Australia (Queensland Division)

Notes to the Financial Statements (continued) for the year ended 31 December 2015 2015 $ 7b Reconciliation of cash flows from operating activities Net surplus / (deficit) from ordinary activities Adjustments for:Depreciation/Amortisation Investments acquired for nil consideration via bequests Net loss/(gain) on disposal of property, equipment and vehicles Net cash from operating activities before changes in working capital and provisions (Increase)/decrease in receivables (Increase)/decrease in grants income accrued Increase/(decrease) in payables Increase/(decrease) in grants income deferred Increase/(decrease) in employee benefits Net cash from operating activities

8 Trade and other receivables Trade receivables owing by National Heart Foundation of Australia Grants income accrued Other receivables and prepayments

2014 $

112,076

(48,078)

23,930 0 (1,793)

36,582 (59,850) 0

134,213 (27,402) (37,521) (633,784) 174,839 52,921 (336,734)

(71,346) 195,336 0 331,129 (188,989) 9,275 275,405

81,338 37,521 38,115 156,974

87,606 0 4,443 92,049

22

National Heart Foundation of Australia (Queensland Division)

Notes to the Financial Statements (continued) for the year ended 31 December 2015 9 Property, equipment and vehicles

Freehold land

Office furniture & equipment

Motor vehicles

Total

$

$

$

$

Balance at 1 January 2014 Acquisitions Disposals Balance at 31 December 2014

0 100,000 0 100,000

199,753 0 0 199,753

87,269 0 0 87,269

287,022 100,000 0 387,022

Balance at 1 January 2015 Acquisitions Disposals Balance at 31 December 2015

100,000 0 (100,000) 0

199,753 3,452 (62,328) 140,877

87,269 0 (19,003) 68,266

387,022 3,452 (181,331) 209,143

Depreciation & Impairment losses Balance at 1 January 2014 Depreciation charge for the year Disposals Balance at 31 December 2014

0 0 0 0

149,923 23,492 0 173,415

6,780 13,090 0 19,870

156,703 36,582 0 193,285

Balance at 1 January 2015 Depreciation charge for the year Disposals Balance at 31 December 2015

0 0 0 0

173,415 12,222 (62,326) 123,311

19,870 11,708 (5,796) 25,782

193,285 23,930 (68,122) 149,093

Carrying amounts At 1 January 2014 At 31 December 2014

0 100,000

49,830 26,338

80,489 67,399

130,319 193,737

At 1 January 2015 At 31 December 2015

100,000 0

26,338 17,566

67,399 42,484

193,737 60,050

2015 $ 10 Trade and other payables Trade payables to National Heart Foundation of Australia Trade payables to other National Heart Foundation divisions Other payables and accrued expenses

103,669 239 146,153 250,061

2014 $ 647,038 10,369 226,438 883,845

The carrying value of trade and other payables is equal to fair value. The Foundation's and consolidated entity's exposure to liquidity risk relates to trade and other payables is disclosed in note 17.

23

National Heart Foundation of Australia (Queensland Division)

Notes to the Financial Statements (continued) for the year ended 31 December 2015

2015 $ 11 Grants income deferred Balance at 1 January Amounts received Income taken to revenue Balance at 31 December

2014 $

181,758 433,907 (259,067) 356,598

370,747 435,279 (624,268) 181,758

239,796 37,618 277,414

205,153 19,341 224,494

1,778,683 131,728 1,910,411 20

1,785,721 137,168 1,922,889 19

13 Equity Retained Earnings at beginning of year Operating Surplus/(deficit) Other Comprehensive Income Total Comprehensive Income for the year

303,235 112,076 0 112,076

351,313 (48,078) 0 (48,078)

Retained Earnings at end of year

415,311

303,235

The carrying value of grants income deferred is equal to fair value. The Foundation's and consolidated entity's exposure to liquidity risk relating to grants income deferred is disclosed in note 17.

12 Employee benefits Aggregate liability for employee benefits including oncosts: Current - long service leave and annual leave Non-current - long service leave Total employee benefits Personnel expenses: Wages and salaries Contributions to superannuation plans Total personnel expenses Number of employees at year end (full time equivalents)

Assets held in trust From time to time the Foundation is appointed as trustee in relation to funds to be applied for research or other programs related to cardiovascular health. As no equity is held in those assets they are excluded from the financial statements. 2015 $ The Vincent & John Patrick Cahill Medical Research Trust Fund Balance brought forward Interest and funds received Less Payments in accordance with Trust Balance carried forward

263,965 7,948 0 271,913

2014 $ 255,248 8,717 0 263,965

24

National Heart Foundation of Australia (Queensland Division)

Notes to the Financial Statements (continued) for the year ended 31 December 2015 14 Company limited by guarantee The National Heart Foundation (Queensland) is a company incorporated in Australia under the Corporations Act 2001 as a company limited by guarantee. Every member of the company undertakes to contribute to the assets of the company in the event of the same being wound up during the time that they are a member, or within one year afterwards for payment of the debts and liabilities of the company contracted before the time at which they cease to become a member and of the costs, charges and expenses of winding up the same, and for the adjustment of the rights of the contributories amongst themselves such an amount as may be required not exceeding the sum of $4. As at 31 December 2015 there were 9 members (2014: 8 members) of the Foundation. At 31 December 2015 the total liability for membership in the event the Foundation is wound up would be $36.

15 Related parties Key management personnel and director related parties The following were key management personnel of the Foundation at any time during the reporting period, and, unless otherwise indicated were directors or executive staff of the Foundation for the entire period: Non executive directors Mr Brett Delaney, BCom, FCA, MAICD Ms Melanie Gin, BCom, CA Dr Roger K Wilkinson, MBBS, BA, M.Litt., FRACP, FCSANZ Mr Paul K Bird, GradDipBusAdmin, BA, FPRIA, FAICD Ms Rebecca Treston, QC Associate Professor David Colquhoun, MBBS, FRACP, FCSANZ Professor Michael Good, AO, MD PhD, FASM, FRACP, FTSE, FAHMS Dr Colin Dillon, AM APM Mr Ian Humphreys, BA (UNSW), LLB (UTS), Dip.Leg.Prac (UTS), LLM (Syd) Mr Tim Sayer, BA LLB (UQ), LLM (USyd), Dip.Soc.Stud (Oxon) (Resigned 07/05/2015) Professor Robyn McDermott, MBBS, MPH, PhD, FAFPHM (Resigned 07/05/2015) Non executive directors did not receive any remuneration from the Foundation during the current or previous financial year. Apart from details disclosed in this note, no director has entered into a material contract with the Foundation since the end of the previous financial year and there were no material contracts involving directors' interests subsisting at year end. Executive Staff Mr Stephen Vines, MBA, BBus Mgmt, MAICD, Chief Executive Officer Ms Rachelle Foreman, MPhil, MScST, BAppSc (HMS), Health Director Mrs Catherine Donald, BCom, Finance Director Mr Bruce Macdonald, BAgrSc, DipEd, Fundraising Director 2015 $ The compensation of key management personnel was as follows: Short term employee benefits Other long term benefits Total

686,062 13,486 699,548

2014 $ 701,800 3,169 704,969

Other related parties Classes of other related parties are the National Heart Foundation of Australia ("National") and all other state and territory divisions ("Divisions") and directors of related parties and their director-related entities. The Foundation makes grants to the National Heart Foundation of Australia primarily to fund research and other health programs conducted on an Australia-wide basis. Such grants are payable under the terms of the Federation agreement between the Foundation and the National Heart Foundation of Australia. The grant payable by the Foundation is equal to its net operating surplus (payable monthly in arrears) representing the excess of income received less capital expenditure and operating expenditure (excluding depreciation). If there is a deficit from application of the above arrangement, a grant is paid by National to the Foundation. The aggregate amounts included in surplus/deficit from ordinary activities that resulted from transactions with other related parties are: 25

National Heart Foundation of Australia (Queensland Division)

Notes to the Financial Statements (continued) for the year ended 31 December 2015 15 Related Parties (continued) 2015 $ 4,771,254 4,966,433 2,489,810 257,712

Contributions received from sale of services - Divisions Contributions paid for purchase of services - Divisions Grants for research and other national initiatives - National Contribution paid for Rent - National Amounts receivable and payable to non-director related parties are shown in notes 8 and 10 respectively.

2014 $ 3,965,645 5,143,196 4,379,710 257,712

16 Subsequent events No matter or circumstances have arisen in the interval between the end of the financial year and the date of this report, which are likely in the opinion of the Directors to significantly affect the operations of the Foundation, the results of the operations or the state of affairs of the Foundation, in future financial years.

17 Financial instruments Exposure to credit, liquidity, market, interest rate, other market price and operational risks arises in the normal course of the Foundation's business. Credit risk Credit risk is the risk of financial loss to the Foundation if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Exposure to credit risk is monitored by management on an ongoing basis. The Foundation does not require collateral in respect of financial assets. The credit risk relating to the Foundation's financial assets which are recognised in the statement of financial position is the carrying amount of such assets, net of any allowances for impairment in respect of trade receivables. Investments are allowed only in liquid securities and equity securities in Australian shares that are in compliance with the Foundation's investment policy. Management does not expect any counterparty to fail to meet its obligations as the Foundation's financial assets have high credit quality. At the reporting date there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position as summarised below:

Notes Financial assets Cash Trade and other receivables Grants income accrued

7a 8 8

2015 $ 1,082,360 119,453 37,521 1,239,334

2014 $ 1,307,546 92,049 0 1,399,595

Impairment losses from trade receivables Of the Foundation’s trade receivables balance of $119,453, $0 is past due (2014: $92,049). Based on receivables history, the Foundation believes that no impairment allowance is necessary in respect of trade receivables, as trade and other receivables predominately relate to the National Heart Foundation and other Divisions (refer Note 8).

26

National Heart Foundation of Australia (Queensland Division)

Notes to the Financial Statements (continued) for the year ended 31 December 2015 17 Financial instruments (continued) Liquidity risk Liquidity risk is the risk that the Foundation will not be able to meet its financial obligations as they fall due. The Foundation’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Foundation’s reputation. Trade and other payables, and grants income deferred have contractual cashflows which are 6 months or less. The maximum exposure to liquidity risk is represented by the carrying amount of each financial liability in the statement of financial position as summarised below: 2015 $

Notes Non derivative financial liabilities Trade and other payables Grants income deferred

10 11

2014 $

250,061 356,598 606,659

883,845 181,758 1,065,603

Market risk Market risk is the risk that changes in market prices, such as interest rates and equity prices will affect the Foundation's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. All such transactions are carried out within the guidelines set by the Board. Interest rate risk The Foundation has limited exposure to interest rate risk as it does not have borrowings or fixed rate debt securities that would change in their fair value due to changes in interest rates. The Foundation's exposure to this risk is controlled by ensuring that cash securities are limited to short dated bank bills no longer than 90 days. Investments in short-term receivables and payables are not exposed to interest rate risk. The exposure to interest rate risk for financial assets and liabilities at the reporting date are shown below in the Sensitivity Analysis Disclosure. Sensitivity Analysis Disclosure The Foundation's financial instruments subject to changes in market prices include cash and cash equivalents, comprising of cash at bank, cash call accounts and term deposits. Based on historic movements and volatilities in these market variables, and management's knowledge and experience of the financial markets, the Foundation believes the following movements are 'reasonably possible' over a 12 month period: • A parallel shift of +1%/-1% in market interest rates (AUD) from year end rates of 3% • Proportional other market price risk movement of equity securities listed on the ASX index of +10%/-10%

2015 -1%

Interest rate risk

Carrying Amount/ Surplus/ Face Value (Deficit) $

Financial assets Variable rate instruments Cash at bank Total increase/(decrease)

1,082,360

2014 -1%

+1%

+1% Carrying Amount/ Surplus/ Market Surplus/ (Deficit) Equity (Deficit) Equity Price

Equity

Surplus/ (Deficit)

Equity

$

$

$

(10,824)

(10,824)

10,824

10,824

1,307,546 (13,075) (13,075)

13,075

13,075

(10,823)

(10,823)

10,824

10,823

(13,075) (13,075)

13,075

13,075

$

$

$

$

$

$

27

National Heart Foundation of Australia (Queensland Division)

Notes to the Financial Statements (continued) for the year ended 31 December 2015

17 Financial instruments (continued) Operational risk Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Foundation’s processes, personnel, technology and infrastructure, and from external factors other than credit, market and liquidity risks such as those arising from legal and regulatory requirements and generally accepted standards of corporate behaviour. Operational risks arise from all the Foundation’s operations. The Foundation’s objective is to manage operational risk so as to prevent financial losses and damage to the Foundation’s reputation. The primary responsibility for the development and implementation of controls to address operational risk is assigned to the management of the Foundation. This responsibility is supported by the development of overall guidelines for the management of risk in the following areas:  requirements for appropriate segregation of duties including the independent authorisation of transactions  requirements for the reconciliation and monitoring of transactions  compliance with regulatory and other legal requirements  documentation of controls and procedures  requirements for the periodic assessment of operational risks faced and adequacy of controls and procedures to address the risks identified  development of contingency plans  ethical and high level business standards  risk mitigation including insurance Compliance with standards is supported by a programme of periodic reviews of internal controls undertaken by internal audit. The results of these reviews are discussed with the Foundation’s management and submitted to the Board of the Foundation.

28

National Heart Foundation of Australia (Queensland Division)

Independent Audit Report to the members of National Heart Foundation of Australia (Queensland Division)

Report on the financial report We have audited the accompanying financial report of National Heart Foundation of Australia (Queensland Division) (the Foundation), which comprises the statement of financial position as at 31 December 2015, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, notes 1 to 1 7 comprising a summary of significant accounting policies and other explanatory information and the directors' declaration.

This audit report has also been prepared for the members of the Foundation in pursuant to Australian Charities and Not-for-profits Commission Act 2012 and the Australian Charities and Not-for-profits Commission Regulation 2013 (ACNC).

Directors' responsibility for the financial report The Directors of the Foundation are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the ACNC. The Directors' responsibility also includes such internal control as the Directors determine 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.

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 judgement, 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 Foundation's preparation of the financial report that gives a true and fair view 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 Foundation'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 Australian Accounting Standards and the ACNC, a true and fair view which is consistent with our understanding of the Foundation's financial position and of its performance. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion.

29

National Heart Foundation of Australia (Queensland Division)

Independent Audit Report to the members of National Heart Foundation of Australia (Queensland Division)

Independence In conducting our audit, we have complied with the independence requirements of the Australian Charities and Not-for-profits Commission Act 2012.

Basis for qualified auditor's opinion Charitable fundraising is a significant source of fundraising revenue for the National Heart Foundation of Australia (Queensland Division). The Foundation has determined that it is impracticable to establish controls over the collection of charitable fundraising revenue (e.g. cash donations) prior to entry into its financial records. Accordingly, as the evidence available to us regarding fundraising revenue from this source was limited, our audit procedures with respect to charitable fundraising revenue (e.g. cash donations) had to be restricted to the amounts recorded in the financial records. We therefore are unable to express an opinion whether charitable fundraising. (e.g. the cash donations) to the National Heart Foundation of Australia (Queensland Division), reported in the accompanying financial report is complete. In respect of the qualification however, based on our understanding of the internal controls, nothing has come to our attention which would cause us to believe that the internal controls over revenue from fundraising appeal activities by the Foundation, are not appropriate given the size and nature of the Foundation.

Qualified auditor's opinion In our opinion, except for the possible effects of the matter described in the basis for qualified opinion paragraph, the financial report of National Heart Foundation of Australia (Queensland Division) is in accordance with the Australian Charities and Not-for-profits Commission Act 2012 including: (a) giving a true and fair view of the Foundation's financial position as at 31December2015 and of its performance for the year ended on that date; and (b) complying with Australian Accounting Standards and the Australian Charities and Not-forprofits Commission Regulation 2013.

KPMG

Tracey Barer Partner Brisbane 24 March 2016

KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG lnternational"), a Swiss entity. Liability limited by a scheme approved under Professional Standards Legislation

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National Heart Foundation of Australia (Queensland Division)

Auditor’s Independence Declaration under subdivision 60-C section 60-40 of Australian Charities and Not-for-profits Commission Act 2012 To: the directors of National Heart Foundation of Australia (Queensland Division)

I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year ended 31 December 2015 there have been: (a)

no contraventions of the auditor independence requirements as set out in the Australian Charities and Not-for-profits Commission Act 2012 in relation to the audit; and

(b)

no contraventions of any applicable code of professional conduct in relation to the audit.

KPMG

Tracey Barker Partner Brisbane 24 March 2016

KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG lnternational"), a Swiss entity. Liability limited by a scheme approved under Professional Standards Legislation

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For heart health information 1300 36 27 87 heartfoundation.org.au © 2016 National Heart Foundation of Australia ABN 32 009 691 570

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