2008 aia annual financial report

AMNESTY INTERNATIONAL AUSTRALIA

ABN 64 002 806 233

ANNUAL FINANCIAL REPORT

2008

Directors’ Report 2008

Amnesty International Australia, Annual Financial Report 2008 of 42

The Directors present their report together with the financial report of Amnesty International Australia (AIA) (“the company”), a company limited by guarantee, for the year ended 31 December 2008 and the auditor’s report thereon.

Directors The Directors, at any time during or since the end of the financial year are:

Name and Qualifications Age Experience and Special Responsibilities

Nicole Bieske, LLB (Hons),

BA

Director and National

President

Director since 3/9/04

President since 6/7/08

Vice President from 2/7/06 –

5/7/08

35 Sessional lecturer, Monash University

Qualified Solicitor

Member of Amnesty International since 1998

Member of Victorian Branch Committee for 4 years (Secretary),

member of National Legal Team and co-convenor of Victorian

Legal Group

Delegate, International Council Meeting 2007

James Sharp, LLB

Director and National Vice

President


Vice President since 6/7/08

58 Self employed Consultant


Member, WA Branch Committee 2005-2006

Member Governance Committee and Diversity Steering

Committee.

Convenor Planning Committee.

Convenor NAGM Organising Committee since 27/9/08.

Member Audit & Risk Committee until 27/9/08.

Member National Refugee Team.

Convenor WA Refugee Team and WA Human Rights Book

Reading Group

Dawna Wright, B.Comm

(Hons)

Director and National

Treasurer


Acting Treasurer 9/3/07 –

6/7/07

Treasurer since 6/7/07

Chair of Audit and Risk

Committee since 9/3/07

38

McGrathNicol, Partner

Chartered Accountant (Canada & Australia), Certified Public

Accountant (USA), Certified Fraud Examiner (USA)

Member of Amnesty International Australia since 2006

Michael Gordon Butler, BA

(Social Work)

Director and Company

Secretary


Company Secretary since

6/7/08

54

Director Industrial Relations, Association of Professional

Engineers, Scientists & Managers, Australia


Member of VIC Branch Committee since 2002

Secretary of VIC Branch Committee 2005-2006

President of VIC Branch Committee 2006-2008




Georgina Perry, LLB (Hons),

BA

Director

Director 16/3/02 – 21/7/04


Ordinary board member from

July 2008

31 Solicitor, Allens Arthur Robinson


NSW Branch President 2002 – 2004

National Vice-President 2004 - July 2006

National President from July 2006 to 2008

Delegate, International Council Meeting 2007

Catherine Cooper

M Ed, BA, Grad Dip Ed

Director

Director since 31/10/06 –

10/5/08


51 Manager, Learning & Assessment Design, Future SACE

Office/SACE Board of South Australia


SA/NT Branch Committee member since 2005

SA/NT Branch President since October 2006 – May 2008

Sheena Graham

BA (Political Science and

International Relations)

Director


27 Governance and Anti-Corruption Policy Officer, The Australian

Agency for International Development.


Caroline Wood

Director


55 Deputy Director, Centre for Water Research based at The

University of Western Australia.

Member of Amnesty International Australia since 1995. WA

Branch Vice President (1999,2001,2002)

WA Branch Secretary (1997,1998)

WA Women’s Group Convenor 2002-2006

WA Branch President since May 2007

Russell Solomon BA(Hons),

B.Juris, LLB, MA, PhD

Director


54 Program Director and Senior Lecturer, Legal and Dispute

Studies, RMIT University

Admitted to practice as Barrister and Solicitor, Victoria and

Western Australia

Member of AIA since 1985

Member of Vic Branch Committee since 2005

Vice President of Vic Branch Committee 2006-2008

President Vic Branch Committee since July 2008

Perdita Sonntag

Director


28 Research Officer, Centrecare Tasmania

Resource Officer, Tasmanian Catholic Justice and Peace

Commission

Tasmanian Branch Committee member since 2006

Tasmanian Branch President since May 2008




Anthony Mitchell

BA (Pure Mathematics)

BSc (Psychology)

Director


39

Director, Bendelta P/L (strategic advisory firm)

New South Wales Branch President since 17 May 2008

New South Wales Branch Vice President May 2007 – May

2008

New South Wales Branch Committee member since May 2006

Maree Klemm

BSc (Hons) GAICD

FAusImm F Fin

Director


54

Consultant, resources and financial services sector

Amnesty International Australia member since 2004

Queensland/Northern New South Wales President since May

2008

Toni Matulick

BA LLB (Hons), Grad Dip Ed,

GDLP

Director


38 Employed by the Department of the Senate

Member of Amnesty International Australia and ACT/Southern

NSW Branch Committee since 2004

Branch President ACT/Southern NSW since May 2008

Denise Skiffington

MBBS

Director


57 Practising General Medical Practitioner

Member of Amnesty International Australia since 1997

Convenor of an Amnesty International Australia local group

since 2002

Member of South Australia/Northern Territory Branch

Committee 2006-2009

Vice President, SA/NT Branch Committee 2008

Branch President, SA/NT since December 2008

Sarah Holloway

Director

Director since 3/5/08 -

26/8/08

26 Law student

Tracy Crisp

MA DevStudies (Hons) BA,

GradDip

Director

Director since 6/7/08 –

12/12/08

40 Board Member, Disability Information and Resource Centre

until December 2008

More than 20 years experience with Amnesty International in

Australia and New Zealand

Amnesty International Australia Director 2004-2006

Member South Australia/Northern Territory Branch Committee

Branch President South Australia/Northern Territory May 2008

– December 2008




Dr Gregory Luckman, PhD, M AgrSc, B AgrSc, Grad Dip Bus

Director and Company Secretary Director 17/5/91 – 30/5/92 Director from 14/3/98 to 6/07/08 Treasurer 26/5/00 - 3/9/04 Company Secretary from 3/09/04 – 6/7/08

51 Registrar, Physiotherapists Registration Board of Tasmania Member of Amnesty International Australia for 23 years; Tasmanian Branch Committee (President for 6 years). Delegate, International Council Meeting 2001, 2003

Helen Patricia Corbett, BA (Hons)(Sociology) Director Director between 8/1/08 – 6/7/08

56 Manager, Aboriginal Programmes, Central TAFE, Perth, WA

Stuart Webb, M Pub Int Law, LLB (Hons), BA

Director Director from 8/5/04 – 6/7/08

35 Solicitor, Victoria Legal Aid Member of Amnesty International for 10 years Member of Victorian Branch Committee for 7 years. President, Victorian Branch 2004 - 2006 Delegate, International Council Meeting 2005 and 2007 Convenor, National Refugee Team 2003 - 2005

Peter Hanley, BE, MEngSc, DipEd, MEd Director between 21/5/05- 10/5/08

57 Learning Adviser, James Cook University Member of Amnesty International since 1993 Convenor of Townsville group for 11 years President, Queensland Branch since 21 May 2005

Debra Johnson

Director Director between 15/12/04 – 17/5/08

50 International Relations Policy Officer University of Technology, Sydney New South Wales Branch Committee since 2003 Candle Day Coordinator 2001/2 President, New South Wales Branch 15/12/04 - 17/5/08

Alice Linacre, LLB, BA Director Director from 12/5/07 – 13/5/08 Director 18/9/04 – 24/03/06

30 Solicitor, Clayton Utz Member of Amnesty International for 8 years. Member of Australian Capital Territory and Southern NSW Branch Committee for 3 years President, Australian Capital Territory/Southern New South Wales Branch from 12 May 2007 – 13 May 2008




Clare Michele Wiseman, LLB

(Hons), BA

Director

Director from 15/9/06 –

3/5/08

34 Senior Policy Analyst, Department of Premier and Cabinet,

Tasmania


Member of NSW Branch Committee March 2002 - October

2004

Member of TAS Branch Committee since November 2004 -

May 2008

Member of National Legal Team and convenor of NSW Legal

Network Aug 2000 – July 2003

President Tasmanian branch from 15 September 2006 - 3 May

2008



Directors’ Attendance at Board Meetings – 2008

Director Board Meetings

Eligible to attend Attended

Nicole Bieske 8 8

James Sharp 8 8

Dawna Wright 8 5

Michael Butler 8 7

Georgina Perry 8 7

Catherine Cooper 6 6

Sheena Graham 2 2

Caroline Wood 8 6

Russell Solomon 2 2

Perdita Sonntag 2 2

Anthony Mitchell 4 4

Maree Klemm 4 4

Toni Matulick 4 3

Denise Skiffington 1 1

Sarah Holloway 2 2

Tracy Crisp 4 4

Gregory Luckman 6 5

Helen Patricia Corbett 5 3

Stuart Webb 6 6

Peter Hanley 4 3

Debra Johnson 4 4

Alice Linacre 4 4

Clare Wiseman 4 4



Principal Activities

The principal activities of the company during the course of the financial year were human rights campaigning, awareness raising and fundraising. There have been no significant changes in the nature of these activities during the year.

Result

The operating deficit for 2008 amounted to $1,391,136 (2007: surplus $223,544). The deficit is the result of two main factors. Firstly, Amnesty International Australia planned to run a deficit in order to utilise accumulated surpluses from previous years. Secondly, there were significant unrealised losses on managed investment funds.

Review of Operations

Amnesty International is a global movement of more than 2.2 million people in 150 countries, committed to defending those who are denied justice or freedom. Amnesty International Australia and our 80,000 supporters raise awareness about human rights issues, mobilise activism, campaign on key issues, conduct research and education and raise money for our work. In 2008, Amnesty International Australia's work was guided by the organisation's global strategic plan for 2004–2010. Our section contributed 22 per cent of its annual income directly to the global movement. This financial contribution enhances Amnesty International’s human rights impact, assists with organisational development and contributes to growth strategies. One key project funded from Australia’s contribution was the Amnesty International Youth Forum in Hong Kong. We also contributed information, materials, training, development and advice to the global movement.

Our key campaign in 2008 focused on human rights in China. In the lead-up to the Beijing Olympics, we called for an end to internet censorship and greater freedom of expression in China. Our replica ‘firewall’ toured 35 towns and cities throughout Australia, encouraging more than 16,000 people to take action in support of the campaign.

Our campaign generated 500 Australian press articles focusing on human rights concerns in China. These were viewed by an estimated 500,000 people. Our campaign microsite www.uncensor.com.au highlighted censorship in China and was visited by more than 48,500 people in 149 countries.

In addition to raising awareness about human rights concerns in China, the campaign successfully contributed to human rights outcomes, including the early release of imprisoned human rights defenders. Amnesty International Australia took action for Bu Dongwei, who spent four months in a ‘re-education through labour’ camp, and Mao Hengfeng, a women's reproductive rights campaigner, who was released on 29 November. Our campaign also saw people in China gain more access to online information from sources such as the Amnesty International and BBC websites and many others. Our campaign for the rights of refugees and asylum seekers was also very successful. The closure of the offshore detention centre on Nauru marked the end of the ‘Pacific solution’ and the Australian Government abolished Temporary Protections Visas. We also gained a commitment from the government to end indefinite detention, which has seen people imprisoned for up to nine years.

Our work on Individuals at Risk was strengthened with the establishment of a dedicated staff position in this area and a new strategy that was developed to better enable Australians to support individuals suffering human rights violations.



2008 saw the release of a number of individuals on whose behalf Amnesty International Australia had worked, including housing rights activist Ye Guozhu, a key case in our China campaign, who was released in October. Irene Fernandez, a migrants' rights activist, was acquitted by a Malaysian High Court in November after more than 12 years of legal battles. The decision ended one of the longest-running court cases in Malaysian legal history. U Win Tin, a prominent Myanmar journalist and activist, was released in September along with six other prisoners of conscience. He was imprisoned for 19 years and was one of the longest-serving prisoners of conscience in the country. Our Counter Terror with Justice campaign saw thousands of supporters across Australia, 300 of them at a Sydney protest alone, calling for the closure of the detention centre at Guantánamo Bay on the 6

th

anniversary of prisoners arriving there. Our replica Guantánamo cell toured the US ahead of the Presidential election to support calls to close the centre. On 17 November then Presidential nominee, Barack Obama, announced his intention to close the Guantánamo Bay facility if elected. On 22 January 2009, President Obama issued several executive orders designed to close Guantanamo Bay, end secret detention and bring the US’s detention and interrogation policies in the context of the ‘war on terror’ in line with human rights standards.

There were also some major outcomes in our Stop Violence against Women campaign, with the establishment of a National Council to develop a National Plan of Action to eliminate violence against women and their children. Amnesty International Australia produced a groundbreaking report Setting the Standard: International Good Practice to inform a National Plan of Action to Stop Violence Against

Women which the Council used as a framework for their plan. In November 2008 we presented Minister for the Status of Women, Tanya Plibersek, with a petition containing 30,000 signatures supporting calls for a properly resourced National Plan of Action.

In 2008 we began research and consultation for our upcoming Demand Dignity campaign, which will focus on Indigenous human rights and poverty. We appointed a Demand Dignity campaign coordinator and researcher to work with our Indigenous rights campaigner. This team made three visits to the Northern Territory to consult with communities impacted by the government’s intervention. Building on our consultation, research and relationship-building phase, Amnesty International Australia will launch its Demand Dignity campaign on Indigenous human rights in October 2009.

Our organisation joined the Close the Gap campaign in 2008 and activists around Australia participated in events to highlight the 17 year disparity in life expectancy between Indigenous and non-Indigenous Australians. We made a submission to the Federal Government’s Northern Territory Review Board calling for reinstatement of the Racial Discrimination Act (RDA). The government has subsequently announced that it will reinstate the RDA. 2008 marked the 60

th anniversary of the signing of the Universal Declaration of Human Rights. Amnesty

International Australia celebrated at events across the country around Human Rights Day on 10 December. We partnered with The Body Shop to promote human rights throughout its stores during the month of December. On the anniversary of the Universal Declaration of Human Rights the government announced a consultation with Australian citizens about human rights protection. We welcomed the government’s consultation and began work on a campaign calling for it to create a Human Rights Act. Despite building economic pressures in Australia, our supporter numbers remained steady in 2008, with 78,786 financial supporters at the end of the year. The number of our regular monthly financial supporters, Human Rights Defenders, reached 47,986, contributing more than $1.2 million per month. Supporters making gifts in their will were again an important part of our funding and in 2008 we received bequests totaling $379,442.



Our first Student Action Packs were developed and sent quarterly to 600 schools across Australia. They provide campaign information and youth-based actions, and improve our communication with school groups as well as adding to the human rights impact of our young supporters. We continued work on developing curriculum resources for secondary students – including our first Indigenous rights teaching resource. We also made a number of submissions to government relating to human rights in school curricula and built relationships with academics to promote a focus on human rights and Indigenous culture in teacher education. In 2008 we undertook a comprehensive planning process to set our vision for the Amnesty International Australia movement between 2009–2014, conducting extensive supporter and staff consultations. The vision, our human rights impact areas and other key projects aim to strengthen, grow our organisation and to inspire positive human rights changes for the next five years. By 2014 Amnesty International Australia will be:

• Inspiring 500,000 people every year to take action. • Positively influencing and informing key opinion formers and decision makers. • An inclusive, authoritative, relevant and bold organisation. • Playing a leading role in Amnesty International, particularly in the Asia Pacific region.

The first phase of our Supporter Information Management System (SuMS) went ‘live’ in November, with all supporter information housed within the new system and the processing of most financial transactions now managed through SuMS. The SuMS project will enhance the long-term sustainability of the movement and strengthen communication with supporters. Additional functionality will be introduced in 2009.

State of Affairs

There were no significant changes to the state of affairs of the company during 2008.

Events Subsequent to Balance Date

In the interval between the end of the financial year and the date of this report, there has not been any transaction or event of a material and unusual nature likely, in the opinion of the directors of the company, to affect significantly the operations of the company, the results of those operations, or the state of affairs of the company in future financial years.

Likely Developments and Expected Results

In 2009, Amnesty International Australia will:

• Demand Dignity for Indigenous Australians. • Campaign for an effective National Plan to Stop Violence Against Women. • Increase our support for the global movement. • Respond rapidly to international crises and individuals at risk. • Campaign for the closure of the Christmas Island detention centre. • Campaign for a Human Rights Act that protects all our rights.

The governance committee, a sub-committee of our Board, has established a working group to consult membership, supporters and partners about how Amnesty International Australia can strengthen its democracy. The project will be a key focus for the organisation in 2009.



In May 2009, Amnesty International Australia will join the global movement in launching the Demand Dignity campaign, linking poverty to human rights violations. We will begin raising awareness and campaigning on the issues of maternal mortality, housing (slums and forced evictions) and access to education. The domestic focus of our Demand Dignity campaign, Indigenous human rights, will launch in October. The organisation is committed to developing a Reconciliation Action Plan to help continue building positive relationships between Indigenous and non-Indigenous people. This Plan will form part of our contribution towards the national effort to close the 17-year life expectancy gap between Indigenous and non-Indigenous Australians. Amnesty International Australia is working in partnership with more than 50 other organisations to call on the Australian Government to implement a Human Rights Act that ensures protection of civil and political as well as economic, social and cultural rights.

Environmental Regulations

The company is not subject to any significant environmental regulations under either Commonwealth or State regulation.

Indemnification and Insurance of Directors and Officers

Indemnification

In 2002 Amnesty International Australia entered into a Deed of Indemnity and Access with each of the members of the National Executive Committee (NEC) - which is the Board of Amnesty International Australia - in accordance with rule 11 of the Company's Constitution and section 198F of the Corporations Act 2001. These indemnities remain in place for those members of the NEC in place since 2002. Subsequent Deeds of Indemnity and Access have been entered into as required with the appointment of new members to the NEC. In 2003 Amnesty International Australia entered into a Deed of Indemnity and Access with the National Director. A subsequent Deed of Indemnity and Access has been entered into with the appointment of a new National Director.

Other than those above, since the end of the previous financial year, the company has not indemnified or made a relevant agreement for indemnifying against a liability any person who is or has been an officer or director of the company.

Insurance Premiums

During the financial year the company has paid premiums of $5,335 on behalf of the company in respect of Directors’ and Officers’ liability and legal expenses insurance contracts for the year ended 31 December 2008. The company has also paid or agreed to pay, premiums in respect of such insurance contracts for the year ended 31 December 2009. Such insurance contracts insure against liabilities (subject to certain exclusions) persons who are or have been Directors or Officers of the company. Directors have not included details of the nature of the liabilities covered or the amount of the premium paid as such disclosure is prohibited under the terms of the contract.

Directorships of Public Companies

Stuart Webb is a director of the Law Institute of Victoria. Dawna Wright is a director of Women's Circus Ltd, since 23 February, 2009. No other Amnesty International Australia director holds directorships of any other public companies.

Financial Statements for the Year Ended 31 December 2008


Income Statement for the Year Ended 31 December 2008

2008 2007 Note $ $

Revenue from operating activities

Donations/fundraising Human rights defender pledges 14,300,522 13,458,632 Mail appeals 1,252,521 1,590,096 Other donations 1,540,179 1,379,254 Fundraising events 378,409 403,419 Bequests 379,442 694,914 Membership fees 620,008 721,146 Merchandising 375,047 383,315 Other revenue

Interest and other 226,167 237,512 Distributions from financial asset at fair value 18,379 163,837 Total revenue 19,090,674 19,032,125

Expenditure on Operating Activities

Human rights campaigning in Australia (7,080,361) (6,881,941) International campaigning and research (4,225,582) (3,509,040) Building our supporter base (4,176,243) (4,284,390) Fundraising (2,673,052) (2,196,155) Merchandise (371,293) (361,476) Governance and democracy (639,050) (679,493) Administration and other (913,996) (736,454) Unrealised loss on financial asset at fair value (402,233) (159,632) Total expenses (20,481,810) (18,808,581) Operating (Deficit)/Surplus 2 (1,391,136) 223,544

The income statement is to be read in conjunction with the notes to the financial report set out on pages 17 to 38.



Balance Sheet as at 31 December 2008 2008 2007 Note $ $ Assets

Current Assets Cash and cash equivalents 3 4,040,393 4,409,918 Trade and other receivables 4 496,802 473,850 Inventories 6 95,382 81,816 Other current assets 5 298,751 342,673 Available for sale financial asset 9 - 81,358 Financial assets at fair value through profit or loss 9 1,067,643 1,451,497 Total Current Assets 5,998,971 6,841,112 Non-Current Assets Property, plant and equipment 7 1,703,760 2,107,223 Intangible assets 8 165,371 - Total Non-Current Assets 1,869,131 2,107,223 Total assets 7,868,102 8,948,335

Liabilities

Current Liabilities Trade and other payables 10 1,090,348 890,081 Provisions 12 433,124 _399,858 Total Current Liabilities 1,523,472 1,289,939

Non-Current Liabilities Other payables 10 221,786 217,151 Provisions 13 148,839 76,104 Total Non-Current Liabilities 370,625 293,255 Total liabilities 1,894,097 1,583,194 Net assets 5,974,005 7,365,141 Accumulated Surplus Retained surplus 5,974,005 7,365,141 Accumulated Surplus 5,974,005 7,365,141

The balance sheet is to be read in conjunction with the notes to the financial report set out on pages 17 to 38.



Cash Flow Statement for the Year Ended 31 December 2008

2008

$ 2007

$

Cash Flows from Operating Activities Note

Cash receipts in the course of operations 18,845,229 18,330,126 Interest received 226,167 241,717 Payments to the International Secretariat and other Amnesty International sections

(4,238,209)

(3,454,130)

Payments to employees and suppliers (14,715,548) (14,226,938)

Net Cash Flows provided by Operating Activities 3b 117,639 890,775

Cash Flows from Investing Activities Distributions from financial asset at fair value through profit or loss

18,379

-

Purchase of financial asset at fair value through profit or loss

(18,379)

(1,451,497)

Purchase of property, plant and equipment (289,194) (1,837,476) Purchase of intangible asset (197,970) -

Net Cash Flows Used in Investing Activities (487,164) (3,288,973)

Net (decrease)/increase in cash held (369,525) (2,398,198)

Cash at the beginning of the financial year 4,409,918 6,808,116

Cash at the end of the financial year 3a 4,040,393 4,409,918

The cash flow statement is to be read in conjunction with the notes to the financial report as set out in pages 17 to 38.



Statement of Changes of Equity for Year Ended 31 December 2008

Accumulated surplus

Total

$ $ At 1 January 2007 7,141,597 7,141,597 Profit for year 223,544 223,544

At 31 December 2007 7,365,141 7,365,141

At 1 January 2008 7,365,141 7,365,141 Deficit for the period (1,391,136) (1,391,136)

At 31 December 2008 5,974,005 5,974,005

The statement of changes in equity is to be read in conjunction with the notes to the financial report as set out in pages 17 to 38.

Notes to the Financial Statements for the Year Ended 31 December 2008


1. STATEMENT OF ACCOUNTING POLICIES

The following significant accounting policies adopted in the preparation of the financial report are:

a. Basis of preparation

The financial report is a general purpose financial report which has been prepared in accordance with Accounting Standards, Urgent Issues Group Consensus Views, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. It has been prepared on the basis of historical costs, except for available-for-sale investments and financial assets at fair value through the profit and loss that have been measured at fair value. The accounting policies have been consistently applied, unless otherwise stated. The financial report is presented in Australian dollars, unless otherwise stated. The words ‘operating surplus’ have been substituted for the term ‘profit’ in the prescribed income statement.

b. Statement of compliance

The financial report complies with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS). New Accounting Standards and UIG Interpretations

Australian Accounting Standards and UIG Interpretations have been recently issued or amended but are not yet effective. These other standards have not been adopted for the year ended 31 December 2008. The directors have yet to finalise their assessment of the impact of these new standards and interpretation.

c. Income tax

Amnesty International Australia (AIA) is exempt from income tax in Australia under Division 50 of the Income Tax Assessment Act 1997. As specified by the Australian Taxation Office (ATO), AIA completes an annual self-assessment to confirm the exemption. d. Revenue recognition

Fundraising, bequests, donations and membership fees

Contributions from individuals, local groups and networks of Amnesty International Australia are treated as fundraising revenue and are recognised when received. Sale of merchandise and publications

Revenue is recognised when the significant risks and rewards of ownership have passed to the buyer and can be measured reliably. Risks and rewards are considered passed to the buyer at the time of delivery of the goods to the customer. Interest revenue

Interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset. Distributions from financial asset at fair value

Distributions from the financial asset at fair value through the profit and loss are recognised when received. Currently, it is AIA’s policy to reinvest all distributions.



1. STATEMENT OF ACCOUNTING POLICIES (continued) e. Cash and cash equivalents

For the purposes of the statement of cash flows, cash includes cash on hand, at-call or short term deposits with a maturity date of three months or less, and are with banks or financial institutions and also those funds held within Amnesty International Australia Groups bank accounts.

f. Trade and other receivables

Trade receivables are recognised initially at fair value, and subsequently measured less an allowance for uncollectible amounts. The collectability of debts is assessed at the balance sheet date and specific provision is made for any doubtful accounts.

g. Inventories

Inventories are carried at the lower of cost and net realisable value. Costs incurred in bringing each product to its present location and condition are accounted for as follows: Finished goods – cost of direct materials, on a weighted average basis. Net realisable value is the estimated selling price in the normal course of operations, less estimated costs necessary to make the sale.

h. Property, plant and equipment

Plant and equipment is stated at cost less accumulated depreciation and any impairment in value. Assets are depreciated over their estimated useful lives, using the straight line method, from the date of acquisition. Depreciation rates used for each class of asset, for the current and previous years, are as follows: 2008 2007 IT equipment 33.3% 33.3% Plant and equipment 25% 25% Leasehold improvements term of lease term of lease

Impairment

The carrying values of plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets or cash-generating units are written down to their recoverable amount. The recoverable amount of plant and equipment is the greater of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using the rates attaching to national government securities at the balance sheet date, which most closely match the expected remaining useful life of the related asset.

Impairment losses are recognised in the income statement.



1. STATEMENT OF ACCOUNTING POLICIES (continued) h. Property, plant and equipment (continued)

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in the income statement in the year the item is derecognised. i. Intangibles

Intangible assets were acquired separately and initially measured at cost. Following initial recognition intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. Intangible assets with finite lives are amortised over the useful life of 5 years and the amortisation expense is recognised in the income statement in the expense category consistent with the function of the intangible asset.

j. Recoverable amounts of assets

At each reporting date, assets are reviewed to determine whether there is any indication that an asset may be impaired. Where an indicator of impairment exists, a formal estimate of the recoverable amount is made, and where the carrying amount of an asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount. Recoverable amounts are determined for individual assets, unless the value in use cannot be estimated independently from other assets. In this case, the recoverable amount is determined for the cash-generating group of assets to which it belongs. k. Leases

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged on a straight line basis as expenses over the lease term. Operating lease incentives are recognised as a liability when received and subsequently released over the term of the lease to the income statement. l. Trade and other payables

Trade and other payables are carried at amortised cost, and are recognised for amounts to be paid in the future for goods or services received, whether or not billed to the company. Trade payables are normally settled within normal trading terms. m. Provisions

Provisions are recognised when AIA has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Where AIA expects some or all of the provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the income statement net of any reimbursement.



1. STATEMENT OF ACCOUNTING POLICIES (continued) m. Provisions (continued)

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. n. Employee benefits

Wages, salaries and annual leave

Liabilities for employee benefits for wages, salaries and annual leave represent present obligations resulting from employees’ services provided up to the balance sheet date, calculated at undiscounted amounts based on remuneration rates that the company expects to pay, expected to be settled within 12 months.

Long service leave

Liabilities for employee benefits for long service leave represent the present value of the estimated future cash outflows to be made by the employer resulting from employees’ services provided up to the balance sheet date. The provision is calculated using expected future increases in wage and salary rates, including related on-costs and proportion rates based on expected settlement dates and on turnover history. Those entitlements which are not expected to be settled within twelve months are discounted using the rates attaching to national government securities at the balance sheet date, which most closely match the terms of maturity of the related liabilities.

Superannuation plans

Contributions are made by AIA to defined contribution superannuation funds and are charged as expenses when incurred. o. Foreign currency translations

Both the functional and presentation currency of AIA is Australian dollars. Foreign currency transactions are converted to Australian dollars at the rates of exchange ruling at the dates of the transactions. Amounts receivable and payable in foreign currencies at the balance sheet date are converted at the rates of exchange ruling at that date. Gains and losses from conversion of assets and liabilities, whether realised or unrealised, are included in the income statement in the year in which the exchange rates change.



1. STATEMENT OF ACCOUNTING POLICIES (continued) p. Goods and services tax

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:

• Where the amount of GST incurred is not recoverable from the Australian Tax Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense.

• Receivables and payables are stated with the amount of GST included. The net amount of GST

recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet.

Cashflows are included in the statement of cashflows on a gross basis. The GST component of cashflows arising from investing activities which are recoverable from, or payable to, the ATO are classified as operating cashflows.

q. Pro bono services and in-kind support

AIA receives pro bono services or donations from a range of providers including legal, information technology and human resource specialists. For 2008, AIA has assessed the fair or market value of these professional services or goods at $97,265 (2007: $203,934). The value of these services goods are recognised in the accounts as income with an equivalent expense.

AIA also receives considerable in-kind support from other individual supporters and no assessment of the value of this support has been attempted. r. Disposal of surplus

Rule 7.1 of AIA’s Memorandum of Association prohibits the distribution of any surplus to Members. All income must be applied towards the promotion of the objects of AIA.

In 2005 the NEC determined that AIA should hold a certain level of reserves. Reserves are cash and cash equivalents, plus land and buildings. The amount of the reserves are determined through an annual risk based assessment based on Amnesty International guidelines. s. Volunteer workers

AIA receives considerable services from its many volunteers. No assessment of the monetary value of this support has been attempted.



1. STATEMENT OF ACCOUNTING POLICIES (continued) t. Significant accounting judgements, estimates and assumptions

The preparation of the financial report requires the making of estimates and assumptions that affect the recognised amounts of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities. The estimates and assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

Significant 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 only affects that period, or in the period of revision and future periods if the revision effects both current and future periods.

u. Investments and other financial assets

Financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement are classified as either financial assets at fair value through profit or loss, loans and receivables, held to maturity investments, or available-for-sale investments, as appropriate. When financial assets are recognised initially, they are measured at fair value. The company determines the classification of its financial assets after initial recognition and, when allowed and appropriate, re-evaluates this designation at each financial year-end. AIA has loans and receivables, available-for-sale financial assets and financial assets at fair value as detailed below.

(i) Financial assets at fair value through profit & loss

Financial assets classified as held for trading are included in the category ‘financial assets at fair value through profit or loss’. Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term with the intention of making a profit. Gains or losses on financial assets held for trading are recognised in profit or loss and the related assets are classified as current assets in the balance sheet.

(ii) Loans and receivables

Loans and receivables are non derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are carried at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired. These are included in current assets, except for those with maturities greater than 12 months after balance date, which are classified as non current.



1. STATEMENT OF ACCOUNTING POLICIES (continued) u. Investments and other financial assets (continued)

(iii) Available-for-sale-financial assets

Available-for-sale-financial assets are those non-derivative financial assets that are designated as available-for-sale or are not classified as financial assets at fair value through profit or loss, held to maturity investments, or loans and receivables. After initial recognition available-for-sale investments are measured at fair value with gains or losses being recognised as a separate component of equity until the investment is derecognised or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is recognised in profit or loss.

The fair value of investments that are actively traded in organised financial markets is determined by reference to quoted market bid prices at the close of business on the balance sheet date.

v. Fundraising activities

As a Charitable Institution and with Fundraising Authority issued by the NSW Government, AIA is subject to various state legislation and their reporting requirements as detailed below.

Charitable Fundraising Act 1991

This Act and supporting regulations prescribe the manner in which fundraising appeals are to be conducted, controlled and reported in NSW. The amounts shown in Note 21 are in accordance with S23 (3) of the Act, Sections 5, 7 and 8 of the Regulations and Authority Condition 7. Donations and bequests

Donations and bequests are returned as income as and when received in AIA’s offices or deposited in AIA’s bank account. As specified in the Act, unsolicited donations, members’ donations and bequests are not treated as fundraising income when determining information required under the Act. Costs of fundraising

Costs in Note 21 include all direct fundraising costs in accordance with the Act. The inclusion of indirect costs is discretionary. Indirect costs include overheads such as rent, light, power, insurance and the time spent by accounting and office staff administering appeals and receipting but not directly involved in appeals.

Mail appeals donations and cost allocation

Mail appeals are targeted at both Members and non-Members. When determining what constitutes fundraising activities as required under the Act, revenue received from members is excluded and a comparable share of costs attributed to Members is also excluded. The allocation of both revenue and expenses on Mail appeals for 2008: 76.6% to non-Members, 23.4% to Members. (2007: 77.1% to non-Members, 22.9% to Members.)

No costs were attributed to Members for a share of Raffle, Candle Day or Event costs even though some members would have supported both. The impact on results is not material. Events have both a campaigning and fundraising objective. In 2007 event costs were allocated 50/50 between campaigning costs and fundraising costs. In 2008 this allocation was reviewed and changed to 75/25 due to events having an increased campaigning focus.



1. STATEMENT OF ACCOUNTING POLICIES (continued) v. Fundraising activities (continued)

Donor acquisition

Bank charges incurred in receiving income from face to face approaches to the public through designated fundraising organisations and mass media appeals are recognised as a direct cost of fundraising. All donations with purchases of merchandise and one-off donations from non-Members are assumed to be the result of general campaigns and are reported as such.

w. Correction and reclassification of comparative information

There was a reclassification of ($159,632) relating to Revenue from Outside Operating Activities for the 31 December 2007 comparative. The amount relates to unrealised losses on financial assets, and was originally included within the Interest and Other revenue category in 2007. For the current financial year, given the increase in the unrealised losses on financial assets for the year, AIA has reclassified this amount as a separate item included within the Operating Expenses for the year, thus changing the Total Revenue amount to $19,032,125 (2007: $18,872,493) and the Total Expenses amount to $18,808,581 (2007: $18,648,949). Additionally, the financial assets at fair value through profit and loss have been reclassified from non current to current, to reflect the liquid nature of these items.



2. OPERATING SURPLUS The operating surplus has been arrived at after charging / (crediting) the following items: 2008 2007 $ $ Amortisation expense 32,599 - Depreciation expense 692,657 542,294 Write-down of inventory to net realisable value 4,592 2,104 Operating lease / rental expense 717,544 692,928 Cost of goods sold 152,609 147,749 Employee benefit expense 5,431,986 4,580,012 3. CASH AND CASH EQUIVALENTS Cash at bank and on hand 2,018,144 2,409,918 Bank short term deposits 2,022,249 2,000,000 4,040,393 4,409,918 Cash at bank and on hand earns interest at floating rates based on daily bank deposit rates. The short term deposits are held as a Bank Bill with the Commonwealth Bank of Australia. It has a

face value of $2,029,043, earns interest at a rate of 4.38% and will mature on 12 January 2009. The fair value of cash and cash equivalents is $4,040,393 (2007: $4,409,918). a. Reconciliation of cash For the purposes of the cash flow statement, cash includes cash on hand and at bank and short

term deposits at call. Cash at the end of the financial year as shown in the cash flow statement and is reconciled to the related item in the balance sheet as follows:

2008 2007 $ $ Cash on hand 2,901 2,893 Group bank accounts 41,305 46,322 Cash at bank 696,359 381,447 At call deposit 1,277,579 1,979,256 Bank short term deposits - maturing within 90 days 2,022,249 2,000,000 Cash assets 4,040,393 4,409,918



3. CASH AND CASH EQUIVALENTS (continued)

b. Reconciliation of operating surplus to the net cash flows provided by operating activities

2008 2007

$ $

Operating (Deficit) / Surplus for the year (1,391,136) 223,544

Adjustments for:

Amortisation Depreciation Distributions-financial asset at fair value Unrealised loss-financial asset at fair value Loss on disposal of assets Sale / (receipt of financial asset)

32,599 692,657 (18,379) 402,233

- 81,359

- 542,294 -

- 12,814 (81,359)

Net cash provided by operating activities before changes in assets and liabilities

(200,667)

697,293

Changes in assets and liabilities during the financial year

(Increase) / decrease in inventories (13,566) (24,485) (Increase) / decrease in other assets 43,923 (126,095) (Increase) / decrease in receivables (22,952) (56,318)

Increase / (decrease) in creditors Increase / (decrease) in provisions

204,900 106,001

370,640 29,740

Net cash provided by operating activities

117,639

890,775

4. TRADE AND OTHER RECEIVABLES 2008 2007 $ $ Trade receivables 129,088 109,436 Other receivables 367,714 364,414 496,802 473,850

Trade receivables are non-interest bearing and are generally due on 30 day terms and are normally

settled on 60-day terms. Other receivables are non-interest bearing and consist mainly of GST amounts owing from the ATO

and recognition of income received in 2008 but banked in 2009, and are normally settled within 60 days.

For terms and conditions relating to related parties, refer to Note 20. The carrying values of receivables are a reasonable approximation of fair value



4. TRADE AND OTHER RECEIVABLES (continued) a) Aged receivables

Year Ended 31 December 2008

0-30 Days $

31-60 Days $

61-90 Days $

> 90 Days $

Total $

Trade receivables 8,915 3,607 115,315 1,251 129,088 Other receivables 344,955 4,109 18,650 - 367,714

353,870 7,716 133,965 1,251 496,802

Year ended 31 December 2007

0-30 Days

$ 31-60 Days

$ 61-90 Days

$ > 90 Days

$ Total $

Trade receivables 4,732 3,310 93,030 8,364 109,436 Other receivables 364,414 - - - 364,414

369,146 3,310 93,030 8,364 473,850

5. OTHER CURRENT ASSETS 2008 2007 $ $ Prepayments 106,098 154,334 Other Assets 192,653 188,339 298,751 342,673

Other assets represent bonds and deposits paid on activist resource centres around Australia. No

Other Assets are past due.

6. INVENTORIES 2008 2007 $ $

Finished goods 95,382 81,816



7. PROPERTY, PLANT AND EQUIPMENT 2008 2007 $ $

Plant and equipment, at cost 1,317,409 1,118,058 Less: accumulated depreciation (762,500) (419,540) Net Plant and equipment 554,909 698,518 Leasehold improvements, at cost 1,779,305 1,692,567 Less: accumulated depreciation (630,454) (283,862) Net Leasehold improvements 1,148,851 1,408,705 Total cost 3,096,714 2,810,625 Total accumulated depreciation (1,392,954) (703,402) Total Property, plant and equipment 1,703,760 2,107,223

Reconciliations of the carrying amounts for each class of property, plant and equipment are set out below:

2008 2007 $ $ Plant and equipment:

Carrying amount at beginning of the year 698,517 386,234 Additions 202,457 616,838 Disposals - (12,814) Depreciation (346,065) (291,741) Carrying amount at the end of the year 554,909 698,517 Leasehold improvements:

Carrying amount at beginning of the year 1,408,705 438,620 Additions 86,738 1,220,638 Depreciation (346,592) (250,553) Carrying amount at the end of the year 1,148,851 1,408,705

Total Property, plant and equipment: Carrying amount at beginning of the year 2,107,223 824,854 Additions 289,194 1,837,477 Disposals - (12,814) Depreciation (692,657) (542,294) Total carrying amount at the end of the year 1,703,760 2,107,223



8. INTANGIBLES 2008 2007 $ $

Intangible assets, at cost 197,970 - Less: accumulated depreciation (32,599) - Total Intangible assets 165,371 -

Reconciliations of the carrying amounts for each class of intangibles are set out below: Intangibles : Carrying amount at beginning of the year - - Additions 197,970 - Depreciation (32,599) - Carrying amount at the end of the year 165,371 -

9. FINANCIAL ASSETS Current Available-for-sale financial assets:

Listed shares at fair value - 81,358 Financial assets at fair value through profit and loss:

Investment in managed fund 1,067,643 1,451,497 Total current financial assets 1,067,643 1,532,855

The managed funds reflect a portion of AIA’s financial reserves. 10. TRADE AND OTHER PAYABLES Current Trade payables 751,463 389,502 Other payables & accruals 338,885 500,579 1,090,348 890,081 Non current Lease incentive accrual 221,786 217,151 221,786 217,151

Trade payables are non-interest bearing and are settled on the terms specified by the supplier,

normally settled on 60-day terms Other payables are also non-interest bearing and are normally settled within 60 days. The lease

incentive accrual is an accounting adjustment which spreads rent incentives over the life of the lease.

For terms and conditions relating to related parties, refer to Note 20. The carrying values of payables are a reasonable approximation of fair value, due to the short term

nature.



10. TRADE AND OTHER PAYABLES (continued) The table below summarises the maturity profile of the financial liabilities at 31 December 2008.

Year Ended 31 December 2008

0-30 Days $

31-60 Days $

61-90 Days $

> 90 Days $

Total $

Trade payables 705,623 10,928 1,161 33,751 751,463 Other payables 338,885 - - - 338,885

1,044,508 10,928 1,161 33,751 1,090,348

Year ended 31 December 2007

0-30 Days

$ 31-60 Days

$ 61-90 Days

$ > 90 Days

$ Total $

Trade payables 382,909 3,709 2,884 - 389,502 Other payables 500,579 - - - 500,579

883,488 3,709 2,884 - 890,081

11. EMPLOYEE BENEFITS - SUPERANNUATION

AIA makes contributions to defined contribution superannuation funds. The amount recognised as an expense in the income statement is $398,018 (2007: $330,683). 12. CURRENT LIABILITIES - PROVISIONS

2008 $

2007 $

Long service leave 144,776 143,619 Annual leave 288,348 256,239

433,124 399,858



13. NON-CURRENT LIABILITIES - PROVISIONS

2008 $

2007 $

Make good provision 45,720 - Long service leave 103,119 76,104

148,839 76,104

(a) Movement in provisions

Movements in each class of provision during the financial year, other than provisions relating to employee benefits, are set out below:

Make good provision

$

At 1 January 2008 - Arising during the year 45,720 Utilised -

At 31 December 2008 45,720

(b) Nature and timing of provisions

(i) Make good provision

In accordance with the lease agreement for our Queensland Action Centre, Amnesty International Australia must restore the premises to its original condition at the end of the lease term in 2012. A provision of $45,720 was raised in 2008 in respect of the company’s obligation to remove leasehold improvements from these leased premises and is included in the carrying amount of the leasehold improvements.

(ii) Long service leave

Refer to note 1(n) for the relevant accounting policy.

2008 2007

Number of employees (Full time equivalent at year end) 78 69



14. OPERATING LEASE COMMITMENTS AIA has entered into commercial leases on certain buildings and items of office equipment. The leases on buildings have an average life of between 1 and 7 years with renewal terms included

in the contracts. Renewals are at the option of AIA. Most lease contracts provide for escalating lease payments based on general inflationary indices.

The leases for office equipment have an average life of between 2 and 5 years with renewal terms

included in the contracts. Renewals are at the option of AIA. There are no restrictions placed upon the lessee by entering into these leases. Future minimum rentals payable under non-cancellable operating leases as at 31 December 2008

are as follows:

2008 2007 $ $ Within one year 783,266 752,713 After one year but not more than 5 years 1,828,522 2,461,131 More than 5 years

- 49,892

Total 2,611,788 3,263,736

15. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

AIA’s principal financial instruments comprise of cash, short term deposits and investments in managed fund. AIA also has other financial instruments such as trade receivables and trade payables which arise directly from its operations. The main risks arising from AIA’s financial instruments are interest rate risk, equity price risk and liquidity risk.

A. Interest rate risk

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of financial instruments. Cash and cash equivalents, as defined in note 3a, are the only financial instruments of the company exposed to changes in interest rates. It is AIA’s policy to invest cash with a recognised financial institution. Total interest earned was $236,313 (2007: $237,701). The weighted average interest rate was 6.38% (2007: 6.02%).

The following table demonstrates the sensitivity to a reasonable possible change in interest rates, with all other variables held constant, of the company’s income statement through the impact on floating rate financial assets and financial liabilities. The sensitivity of the income statement is the effect of the assumed changes in interest rates on the net interest income for one year, based on the floating rate financial assets and financial liabilities held at 31 December 2008. The sensitivity analyses do not take account of actions by the company that might be taken to mitigate the effect of such changes.



15. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)

A. Interest rate risk (continued)

Increase in basis points Effect on equity and

income statement 2008

$ 2007

$ +200 81,000 88,000 Decrease in basis points Effect on equity and

income statement 2008

$ 2007

$

-100 (40,000) (44,000)

B. Liquidity risk and funding management

Liquidity risk is the risk that the company will be unable to meet its payment obligations as and when they fall due. To limit this risk, management has set aside financial reserves (currently invested in managed funds and bank bills) in addition to its core cash base, manages assets with liquidity in mind, and monitors future cash flows and liquidity on a monthly basis. This incorporates an assessment of expected cash flows. Refer to Note 10 for the ageing assessment of financial liabilities.

C. Equity price risk

Equity price risk is the risk that the fair value of equities decreases. The non-trading equity price risk exposure arises from the company’s managed fund investment. The effect on the income statement and equity as a result of a change in the fair value of the managed fund investment at 31 December 2008 due to a reasonably possible change in the following market indices, with all other variables held constant, is as follows:

Market indices Increase in

indices (%) Effect on equity and income statement

2008 $

2007 $

Managed fund +5 53,000 73,000 Market indices Decrease in

indices (%) Effect on equity and income statement

2008 $

2007 $

Managed fund -10 -107,000 -145,000



16. CORPORATE INFORMATION

The financial report of Amnesty International Australia for the year ended 31 December 2008 was authorised for issue in accordance with a resolution of the directors on 3rd April 2009.

AIA is a public company incorporated and domiciled in Australia and limited by guarantee. The members are members of the public who have paid the annual membership fee. As at 31

December 2008 there were 15,577 members (2007: 16,389 members). A maximum amount of $100 is guaranteed by each member in the event that the company is wound up.

17. SEGMENT INFORMATION Amnesty International Australia operates in one industry - human rights campaigning, awareness

raising and fundraising and in one geographical area - Australia. 18. AUDITOR’S REMUNERATION 2008 2007 $ $

Audit of financial report - Ernst & Young 35,400 34,990 Other assurance related services - Ernst & Young - 2,000 19. DIRECTORS REMUNERATION

All directors at both national and regional level provide their services free of charge. No

remuneration was paid to directors except for some reimbursement of expenses incurred in the course of their duties.

20. RELATED PARTIES

(a) Directors

The names of each person holding the position of Director of AIA during the financial year are: Nicole Bieske, James Sharp, Dawna Wright, Michael Butler, Georgina Perry, Catherine Cooper, Sheena Graham, Caroline Wood, Russell Solomon, Perdita Sonntag, Anthony Mitchell, Maree Klemm, Toni Matulick, Denise Skiffington, Sarah Holloway, Tracy Crisp, Gregory Luckman, Helen Patricia Corbett, Stuart Webb, Peter Hanley, Debra Johnson, Alice Linacre and Clare Wiseman

There were no loans to Directors at any time in the year ended 31 December 2008. If a Director from time to time purchases goods from the company it is on the same terms and conditions as available to employees.



20. RELATED PARTIES (continued)

(b) Key management personnel remuneration

Short-term Post Employment

Salary Incl. Leave Paid

Salary Packaging

Bonus Superannuation

Total

$ $ $ $ $

2008 580,274 91,394 - 56,112 727,780

2007 612,840 80,541 16,054 55,129 764,564

(c) Transactions with the international movement of Amnesty International and other

Amnesty sections. Each year Amnesty International Australia contributes to the international movement via the International Secretariat according to an assessment based on Amnesty International Australia previous financial results. The 2008 assessment incurred was $4,210,343 (2007: $3,307,393). Actual assessment payments made were $4,210,343 (2007: $3,307,393). During the year Amnesty International Australia purchased publications and campaign materials from the International Secretariat. The company also incurred costs on behalf of the international movement which were deducted from assessment payments.

As at 31 December 2008, an amount of $7,498 (2007: $33,694) is due to the international movement and an amount of $16,657 (2007: $19,740) is due from the international movement.



21. CHARITABLE FUNDRAISING ACT (NSW) 1991 a) Details of aggregated gross income and total expenses of fundraising appeals:

Results of fundraising appeals 2008 2007

$ $ Gross proceeds from fundraising appeals 15,763,728 14,971,212 Less: Direct costs of fundraising appeals (4,537,531) (4,529,429) Net surplus from fundraising appeals 11,226,197 10,441,783

b) Details showing how funds received were applied to Charitable purposes:

Application of net surplus obtained from fundraising appeals:

Campaigning, merchandise, governance etc costs 14,590,396 13,383,066 Unrealised loss on financial asset at fair value 402,233 159,632 Administration Expenses 913,966 _736,454 Total application 15,944,278 14,279,152

The shortfall between the $11,226,197 (2007: $10,441,783) surplus available from fundraising appeals conducted and total distribution of $15,994,278 (2007: $14,279,152) was provided by the following sources

Donations (from Members) 1,707,901 1,860,188 Membership fees 620,008 721,146 Bequests 379,442 694,914 Merchandising 375,047 383,315

Interest and other 244,547 401,349 3,326,945 4,060,912

c) Fundraising appeals conducted during the financial year: Fundraising appeals were conducted during the financial year by mail, telephone and face to face street fundraising. In addition funds were raised by a raffle, the Candle Day appeal, donations from non-Members and numerous fundraising events. Donations and fundraising in this note follow the definition in the Charitable Fundraising Act. As such each differs from that in the income statement (due to the classification imposed by the Act). However in total they agree.



21. CHARITABLE FUNDRAISING ACT (NSW) 1991 (continued) d) Comparisons of certain monetary figures and percentages:

2008 2007

$ % $ % Total cost of fundraising/ 4,537,531 29% 4,529,429 30% gross fundraising income 15,763,728 14,971,212 Net surplus from fundraising/ 11,226,197 71% 10,441,783 70% gross fundraising income 15,763,928 14,971,212 Total costs of campaigning, merchandise, governance etc/

15,944,278

78%

14,279,152

76%

total expenditure 20,418,810 18,808,581 Total costs of campaigning, merchandise, governance etc/

15,944,278 84%

14,279,152

75%

total income received 19,090,674 19,032,124

e) Details of Results of Fund Raising Appeals

Fundraising: Revenue/Expense Comparison

2008 2007

Types of appeal Revenue Expenses Ratio of cost to Revenue

Revenue Expenses Ratio of cost to Revenue

Candle Day 22,760 9,119 40% 47,917 23,652 49% Mail Appeals 959,306 354,859 37% 1,225,487 400,558 33% Non-member regular giving/donations

14,403,253 4,053,584 28% 13,294,389 3,988,141 30%

Events 378,409 119,969 32% 403,419 117,078 29%

Total 15,763,728 4,537,531 29% 14,971,212 4,529,429 30%

Amnesty International Australia recognised that Candle Day 2007 did not meet the 40% guideline

set out in Standard Authority Condition 8, and reviewed the conduct of the event. For 2008 the ratio of costs to revenue both overall and by fundraising category is within the 40%

guideline. Street face to face fundraising is highly cost effective when considered over a longer period as all fees are paid up front.

For 2008 distributions and unrealised losses on our investments (financial asset at fair value) have

been separately itemised for greater transparency. To allow consistent comparison, the 2007 comparatives have additional information to show distributions and unrealised losses. These adjustments do not effect the ratios previously shown in the 2007 Annual Financial Report.

2008 aia annual financial report

Documents