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ASTHMA FOUNDATION QUEENSLAND AND NEW SOUTH WALES (A company limited by guarantee)

ABN 91 609 156 630

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Asthma Foundation Queensland

and New South Wales (and controlled entities)

ABN 91 609 156 630

Financial Report

30 June 2017


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Directors’ Report for the year ended 30 June 2017 Your Directors submit their report, together with the financial statements, made in accordance with a resolution of Directors of the Asthma Foundation Queensland and New South Wales and its controlled entities for the year ended 30 June 2017. Directors The names of each person who has been a director during the year and until the date of this report and the number of meetings attended during the financial year are as follows. The Directors were in office for the entire period unless otherwise stated.

Resigned

No of meetings held

No of meetings attended

Ian Buddery - President 5 5

Jonathan Macleod – Honorary Treasurer 5 5

Paul Sinclair 5 5

Stephen Burley 5 5

Dr Charlotte Hespe 5 3

Prof Paul Thomas 5 3

Marita Cowie 5 2

Prof Ian Yang 5 5

Richard Willis 5 5

Christopher Attard 2 November 2016 1 -

Dr Simon Bowler 2 November 2016 1 1

Susann Holzberger 2 November 2016 1 -

Michael Tauber 2 November 2016 1 1 Details of Directors’ qualifications, experience and special responsibilities can be found later in this report. No director has received or become entitled to receive any remuneration from the Foundation in their capacity as a director (2016: $nil). Purpose The purpose of the Asthma Foundation Queensland and New South Wales is to support people living with asthma today, and to free the community from asthma tomorrow. Objectives The Asthma Foundation Queensland and New South Wales aims to support people in achieving better asthma control and leading full and active lives, thereby reducing avoidable doctor and hospital visits and freeing up valuable healthcare resources.


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Strategy for Achieving the Objectives The Asthma Foundation Queensland and New South Wales strives to achieve this via a range of strategies including:

1. Funding research to grow the pool of asthma knowledge and develop more effective ways to prevent and treat asthma.

2. Providing evidence based and user friendly information and support to empower individuals to better understand and manage their asthma to stay well and reduce avoidable doctor and hospital visits due to poor knowledge, compliance and control.

3. Partnering with health professionals to provide a comprehensive education and support service for patients.

4. Delivering training and educational programs to build the capacity of carers to recognise asthma symptoms, administer asthma first aid and manage asthma emergencies appropriately across a wide range of settings.

5. Advocating on behalf of those with asthma to create asthma friendly environments. 6. Engaging with the community to raise the profile of asthma and the services available through

the Asthma Foundation Queensland and New South Wales. 7. Engaging with the community to raise funds to support the work of the Asthma Foundation

Queensland and New South Wales. 8. Contributing to and participating in the work of the collective Asthma Foundations within

Australia.

Principal Activities The principal activities undertaken continue to be:

— Funding asthma research through financial contributions towards the National Research Program of grants and scholarships, and funding a local PhD scholarship and travel grants.

— Operating a free, comprehensive information and support service including: 1800 ASTHMA Helpline, website and social media, newsletters, information packs and other resources.

— Promoting the information services of the Foundation to health professionals and encourage them to refer their patients to the 1800 ASTHMA Helpline.

— Providing training and education across a broad range of settings including: schools, childcare centres, aged care settings, sports and recreation, aged care and within the general community.

— Influencing policies and strategies to reduce air pollutants, including tobacco smoke, which are a major cause for asthma exacerbations.

— Ensuring the Foundation maintains a strong media presence. — Operating an annual fundraising program. — Dedicating resources to the advancement of national projects, including membership of

national working groups. Accountability The Board’s Finance Audit and Risk Management (FARM) Committee regularly reviews the Foundations management of its resources and achievement of the approved budget, as well as managing the risk exposure of the Foundation. This ensures that management are complying with best practice governance and risk standards ensuring that funder and donor resources are managed efficiently and responsibly. The FARM reports directly to the Board which has overarching responsibility for the Foundation governance and strategy.


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Directors’ qualifications, experience and special responsibilities 30 June 2017 Name Qualifications Experience Special

responsibilities Ian Buddery Company director with wide ranging background

in local and international information technology industry. Founder and former Chairman of eServGlobal Limited, a telecommunications software company.

President – effective 1 July 2013 (previously Vice President) and Member of Board Executive.

Jonathan Macleod

BCom, CA (Aus), CA (NZ), GAICD

Financial Advisor. Jonathan has wide ranging experience in the banking and finance sectors in both Australia and New Zealand.

Honorary Treasurer and Chair of Finance Audit and Risk Committee.

Paul Sinclair

B.Pharm, MPS, Dip. Company Director

Community Pharmacist in Sydney for past 35 years. Past President Pharmacy Guild of Australia (NSW Branch), Past National Councillor Pharmacy Guild of Australia. Board member Australian Association of Consultant Pharmacy. Former Mayor of Campbelltown.

The Hon. Justice Stephen Burley

Justice of the Federal Court of Australia, BA, LLB (Syd Uni), LLM (London School of Economics)

Justice Burley practiced at the Bar from 5 Wentworth Chambers, Sydney, from 1993 until 2016. He was appointed Senior Counsel in 2007. Whilst at the Bar, he practiced in commercial law, specializing in patent, copyright, trade mark, designs and confidential information cases and many of his cases involved pharmaceutical, telecommunications or other high technology subject matter.

Prof Paul Thomas

BSc(Hons,Pharm),MB,BS, MRCP, MD, FRCP,FRACP, MoHPEd

Professor Paul Thomas is a clinical academic at UNSW and Consultant Respiratory Physician at the Prince of Wales’ Hospital. He trained in the UK, worked at the Brompton Hospital, London and was a Fulbright Postgraduate Researcher at the University of California San Francisco before moving to Australia. He has a career long interest in asthma with over 200 research and clinical publications in respiratory medicine and an active research programme in the techniques of breath analysis. He has attracted research grants from national and international funding bodies, is involved in undergraduate and postgraduate teaching and continues to play an active role in clinical respiratory medicine.

Marita Cowie BA (Clin Psych), BBus (Comm), MEd

Marita is the CEO of the Australian College of Rural and Remote Medicine. She is a current member of a number of ministerial, commonwealth and state government committees relating to general practice, health and medical education.


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Name Qualifications Experience Special

responsibilities Associate Professor Charlotte Hespe

MBBS(Hons) USyd, CH(Lon), FRACGP, FAICD, GCUT(UNDA)

GP in inner city Glebe for the past 20 years. A partner in a busy 18 doctor, three-nurse Practice which sees a broad diversity of patients, offering the full range of medical services (including travel, counselling, minor surgical, women's health etc).The Practice is engaged with teaching both medical students and GP Registrars. Charlotte also works part time in an academic setting as Head of General Practice / Primary Care Research at the Sydney School of Medicine, University of Notre Dame Australia. Charlotte is a Director and Chair for Central and Eastern Sydney PHN and Deputy Chair for the NSW/ACT faculty RACGP.

Prof Ian Yang MBBS (Hons), PhD, FRACP, Grad Dip Clin Epid, FAPSR, FThorSoc

Ian is a Consultant Thoracic Physician and Director of Thoracic Medicine at The Prince Charles Hospital, and Head of the Northside Clinical School of The University of Queensland. He has wide ranging interests in airway disease, lung malignancy and the role of genetics in these fields. He is Chair of the National COPD Committee of the Lung Foundation Australia, and a member of the COPD Guidelines Committee.

Richard Willis MBusProcMgt, MlnfTech, GradDipMgt, BEng,GAICD, FAIM

Richard is an experienced director and executive with tertiary qualifications in business management, business process management, information technology and engineering. He has extensive experience (30 years) in not-for-profit, private and public sector organisations and his own companies. He is currently a director with Skills Institute Australia and two private companies.


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Significant Changes in the State of Affairs During the 2015-16 financial year, it was agreed through a vote of members on 24 November 2015 (AFNSW) and 25 November 2015 (AFQ) that Asthma Foundation of NSW and The Asthma Foundation of Queensland would merge and form a new single organisation called Asthma Foundation Queensland and New South Wales, effective on the Merger Date of 30 June 2016. Significant work has been undertaken to merge the staffing, systems, processes and legal and compliance structures required for the merger. The NSW and QLD foundations continued trading financially as separate organisations until 30 June 2016. From 1 July 2017, trading commenced under the new merged organisation, and ceased trading under the NSW and QLD foundations. The merger has resulted in greater centralisation of functions and systems in order to achieve efficiencies, and enable a greater percentage of resource to be deployed on mission focused activities. Contributions on Winding Up Asthma Foundation Queensland and New South Wales does not have share capital. The members’ liability is limited by guarantee. Each member’s liability is limited to $1. In the event of the Foundation being wound up, the total amount that members of the Foundation are liable to contribute is $9 based on current 9 members. Auditor’s Independence and Non-audit Services The Directors have received an independence declaration from the auditor which is included on page 10. On behalf of the Board

……………………………… Director Director I Buddery J Macleod

Dated at Sydney: 29/09/17


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Directors' Declaration The Directors of Asthma Foundation Queensland and New South Wales declare that:

• the financial statements, comprising the consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of cash flows, consolidated statement of changes in equity, and accompanying notes, are in accordance with the Australian Charities and Not-for-profits Commission Act 2012 and comply with Australian Accounting Standards – Reduced Disclosure Requirements and the Australian Charities and Not-for-profits Commission Regulation 2013 (ACNC Regulation 2013);

• the attached financial statements and notes thereto give a true and fair view of the consolidated entity’s financial position as at 30 June 2017 and of its performance, for the financial year ended on that date; and

• there are reasonable grounds to believe that the consolidated entity will be able to pay all of its debts, as and when they become due and payable.

Signed in accordance with subsection 60.15(2) of the ACNC Regulation 2013 on behalf of the directors:

………………………..Director Director I Buddery J Macleod

Dated at Sydney:

29/09/17

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Level 11, 1 Margaret St Sydney NSW 2000

Australia

Tel: +61 2 9251 4100 Fax: +61 2 9240 9821

www.bdo.com.au

DECLARATION OF INDEPENDENCE BY KIERAN GOULD TO THE DIRECTORS OF ASTHMA

FOUNDATION QUEENSLAND AND NEW SOUTH WALES

As lead auditor of Asthma Foundation Queensland and New South Wales and its controlled

entities for the year ended 30 June 2017, I declare that, to the best of my knowledge and

belief, there have been no contraventions of any applicable code of professional conduct in

relation to the audit.

Kieran Gould

Partner

BDO East Coast Partnership

Sydney: 29 September 2017

BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.

ASTHMA FOUNDATION QUEENSLAND NEW SOUTH WALES (A company limited by guarantee)

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Statement of profit or loss and other comprehensive income for the year ended 30 June 2017

Notes 2017 $

2016 $

Revenue Proceeds from fundraising 3 1,842,211 - Grant income 1,729,197 - Sale of goods 1,090,966 - Education training income 6,811 - Other income (includes sale of merchandise) 246,582 - Interest from investments 150,038 - Dividends from investments 276,050 - Gain on disposal of fixed assets 22,101 - Changes in the fair value of financial assets 497,496 - Total Revenue 5,861,452 - Expenses Cost of sales 6(b) 70,700 - Administration expenses 152,928 - Research grants and scholarships 402,400 - Employment expenses 6(d) 2,943,152 - Depreciation 6(a) 141,935 - Premises 6(c) 572,837 - Technology & communications 269,113 - Insurance 17,070 - Motor vehicle 10,953 - Other expenses 545,778 - Total Expenses 5,126,866 - Surplus for the year attributable to the members of Asthma Foundation Queensland and New South Wales and its controlled entities

734,586 -

Other Comprehensive Income - - Total Comprehensive Income for the year attributable to the members of Asthma Foundation Queensland and New South Wales and its controlled entities

734,586

-

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.


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Statement of financial position as at 30 June 2017 Notes 2017

$ 2016

$ Assets Current Assets Cash and cash equivalents 7 893,996 833,017 Trade and other receivables 8 29,906 64,880 Other current assets 9 54,122 64,000 Inventories 11,179 25,432 Total Current Assets 989,203 987,329

Non-Current Assets Financial assets at fair value through profit or loss 10 9,987,508 8,956,724 Property, plant and equipment 11 3,292,755 3,420,446 Other non-current assets 110,051 110,051 Total Non-Current Assets 13,390,314 12,487,221 Total Assets 14,379,517 13,474,550

Liabilities Current Liabilities Trade and other payables 12 657,990 602,854 Employee benefits 13 180,282 159,229 Total Current Liabilities 838,272 762,083 Non-Current Liabilities

Trade and other payables 12 394,811 286,157 Employee benefits 13 28,755 43,217 Total Non-Current Liabilities 423,566 329,374

Total Liabilities 1,261,838 1,091,457

Net Assets 13,117,679 12,383,093

Equity Contributions reserve 9,142,594 9,142,594 Retained earnings (89,624) - Other reserves 14 4,064,709 3,240,499

Total Equity 13,117,679 12,383,093

The above statement of financial position should be read in conjunction with the accompanying notes.


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Statement of changes in equity for the year ended 30 June 2017

Contributions reserve

Retained Earnings

Research Reserve

Pearl Sheppard

Fund

Matthew Hayes

Memorial Fund Total

$ $ $ $ $ $ Balance at 1 July 2015 - - - - - - Surplus for the year - - - - - - Other Comprehensive Income - - - - - - Total Comprehensive Income - - - - - - Contributions from merged entities 9,142,594 - - - - - Balance at 30 June 2016 9,142,594 - 854,469 2,096,220 289,810 12,383,093

Contributions reserve

Retained Earnings

Research Reserve

Pearl Sheppard

Fund

Matthew Hayes

Memorial Fund Total

$ $ $ $ $ $ Balance at 1 July 2016 9,142,594 - 854,469 2,096,220 289,810 12,383,093 Surplus for the year - 734,586 - - - 734,586 Other Comprehensive Income - - - - - - Total Comprehensive Income - 734,586 - - - 734,586 Transfer to/(from) reserves - (824,210) 781,589 39,153 3,468 - Balance at 30 June 2017 9,142,594 (89,624) 1,636,058 2,135,373 293,278 13,117,679

The above statement of changes in equity should be read in conjunction with the accompanying notes


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Statement of cash flows for the year ended 30 June 2017 Notes 2017

$ 2016

$ Cash flows from operating activities Receipts from fundraising 1,842,211 - Receipts from grant income 1,729,197 - Sale of goods 1,200,063 - Other income 319,964 - Payments to suppliers and employees (4,528,712) - Research expenditure (402,400) - Net cash flows from/(used in) operating activities 160,323 - Cash flows from investing activities Dividends received 276,050 - Interest received 150,038 - (Purchase)/ proceeds on sale of investments (533,289) - Proceeds for disposal of plant & equipment 28,000 Purchase of plant and equipment 11 (20,143) - Net cash flows from investing activities

(99,344) -

Net Increase in cash and cash equivalents 60,979 Cash and cash equivalents at the beginning of the financial year

833,017 -

Cash and cash equivalents at the end of the financial year

893,996 833,017

The above statement of cash flows should be read in conjunction with the accompanying notes.


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Notes to the financial statements for the year ended 30 June 2017 1. Corporate Information The financial statements for the year ended 30 June 2017 were authorised for issue in accordance with a resolution of directors on 18th September 2017. Asthma Foundation Queensland and New South Wales is a not-for-profit unlisted company limited by guarantee and incorporated and domiciled in Australia. The nature of the operations and principal activities of Asthma Foundation Queensland and New South Wales are described in the Directors’ report. The registered office and principal place of business is Level 13, Tower B, Citadel Towers, 799 Pacific Highway, Chatswood, NSW 2067. 2. Summary of significant accounting policies a) Basis of preparation The financial statements are general purpose financial statements which have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements, other authoritative pronouncements of the Australian Accounting Standards Board and the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act 2012) and the Charitable Fundraising Act 1991, as appropriate for not-for-profit oriented entities. The financial statements have been prepared in Australian dollars, the Foundation’s functional and presentation currency, rounded to the nearest dollar. The financial statements have been prepared on a historical cost basis, except for financial assets, which are measured at fair value. The accounting policies described below have been consistently applied to all years presented unless otherwise stated. These financial statements do not comply with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IASB”). Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Asthma Foundation of Queensland and New South Wales ('company') as at 30 June 2017 and the results of all subsidiaries for the year then ended. Asthma Foundation of Queensland and New South Wales Limited and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'. Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases. Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the consolidated entity.


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Notes to the financial statements for the year ended 30 June 2017 (continued) 2. Summary of significant accounting policies (continued) b) Financial assets All equity investments are measured at fair value. Equity investments are measured at fair value through profit or loss. At initial recognition, the group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. Changes in the fair value of financial assets at fair value through profit or loss are recognised in other income or other expenses in the income statement as applicable. Interest income from these financial assets is included in the net gains/(losses). Dividend income is presented as other revenue. Impairment of financial assets The Foundation assesses at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial assets is impaired.Financial assets are considered impaired when there has been a significant or prolonged decline in the value below initial cost. c) Plant and equipment Cost and valuation Plant and equipment are valued at cost, less accumulated depreciation and any accumulated impairment.

Depreciation Depreciation is provided over the estimated useful life of the following assets:

— Furniture and fittings -over 10 years Straight line — Computer equipment -over 2-3 years Straight line — Leasehold improvements – over 7 years Diminishing value

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. Gains and losses on disposal of an item of plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of the plant and equipment and are recognised net in the Statement of Profit or Loss and Other Comprehensive Income. d) Taxes Income taxes Asthma Foundation Queensland and New South Wales is a non-profit making company and is exempt from income tax under sub-section 50-5 of the Income Tax Assessment Act 1997. Goods and Services Tax (GST) Revenue, expenses and assets are recognised net of the amount of GST except:

— Where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or part of the expense item as applicable; and

— Receivables and payables are stated in the Statement of Financial Position with the amount of GST included.


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Notes to the financial statements for the year ended 30 June 2017 (continued) 2. Summary of significant accounting policies (continued) The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the Statement of Financial Position. Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of the cash flows arising from investing and financing activities, which is recoverable or payable to, the taxation authority, are classified as operating cash flows. e) Employee benefits Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled within 12 months of the reporting date are recognised in current liabilities in respect of employees' services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Other long-term employee benefits The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are recognised in non-current liabilities, provided there is an unconditional right to defer settlement of the liability. The liability is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Defined contribution superannuation expense Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred. f) Impairment of non-financial assets At each reporting date, assets are reviewed to determine whether there is any indication that an asset is impaired. Where an indicator of impairment exists, a formal estimate of the asset’s 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 recoverable amount. An asset’s recoverable amount is higher of its fair value less costs to sell and value in use. In assessing the value in use of plant and equipment the Asthma Foundation Queensland and New South Wales takes into account the depreciated replacement cost of an asset which is the replacement cost of the asset less, where applicable, accumulated depreciation. An impairment for a non-revalued asset is recognised in the Statement of Profit or Loss and Other Comprehensive Income. However an impairment for a revalued asset is recognised directly against the investment reserve for the class of asset to the extent that it does not exceed the amount in the investment reserve. Amounts in excess of the reserve are recognised in the Statement of Profit or Loss and Other Comprehensive Income. g) Cash and cash equivalents Cash and cash equivalents in the Statement of Financial Position comprised of cash at bank and in hand and short term deposits with an original maturity of three months or less. These amounts are stated at the lower of cost and net realisable value.


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Notes to the financial statements for the year ended 30 June 2017 (continued) 2. Summary of significant accounting policies (continued) For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above. h) Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Foundation and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised: Bequests, general donations and fundraising Bequests, general donations and fundraising are recognised upon receipt of the cash or goods.

Control of a right to receive consideration of the donation is attained, usually evidenced by the receipt of cash.

Grants Grants received, which may be unspent at the reporting date and are for a specific project not

yet completed are only recognised as income when the project occurs or the terms and conditions are met as these amounts are repayable if not fully utilised on the specific project.

Services Rendered Control of the right to be compensated for the services provided and can be reliably measured. Interest Control of a right to receive consideration for the provision of, or investment in, assets has been

attained. Dividends Control of a right to receive consideration for the investment in assets is attained, and usually

evidenced by approval of the dividend at a meeting of shareholders. i) Trade and other receivables Trade and other receivables are recognised and carried at the original invoice amount less an allowance for uncollectible amounts. An allowance for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off when identified. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. j) Trade and other payables Trade and other payables are carried at cost and represents liabilities goods and services provided to the Asthma Foundation Queensland and New South Wales prior to the end of the year that are unpaid. k) Inventory Inventory is carried at the lower of cost or net realisable value. The cost is the purchase price of the items. The inventory is made up of supplies purchased for educational resources. l) Fundraising activities As a charitable Institution, Asthma Foundation Queensland and New South Wales has requirements under the Charitable Fundraising Act 1991. This act prescribes the manner in which fundraising appeals are conducted, controlled and reported in NSW. These are shown in note 3, 4, and 5 of the financial statements.


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Notes to the financial statements for the year ended 30 June 2017 (continued) 2. Summary of significant accounting policies (continued) m) Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification. An asset is current when: it is expected to be realised or intended to be sold or consumed in normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within twelve months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when: it is expected to be settled in normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within twelve months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. All other liabilities are classified as non-current. Deferred tax assets and liabilities are always classified as non-current. n) Operating leases Leases where the lessor retains the substantially all the risks and benefits of the ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as the lease income. Operating lease payments are recognised as an expense in the Statement of Profit or Loss and Other Comprehensive Income on a straight-line basis over the term of the lease. o) Research grants & scholarships expensed The Foundation on a calendar year basis allocates resources towards the provision of research grants and scholarships based on an external application process managed by the Asthma Australia National Research Council. It is the policy of the Foundation to make an annual payment to the National Research Council for this purpose. p) Critical accounting judgments, estimates and assumptions The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.


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Notes to the financial statements for the year ended 30 June 2017 (continued) 2. Summary of significant accounting policies (continued) Impairment of non-financial assets other than indefinite life intangible assets The company assesses impairment of non-financial assets at each reporting date by evaluating conditions specific to the company and to the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value less costs of disposal or value-in-use calculations, which incorporate a number of key estimates and assumptions. Employee benefits provision As discussed in note 2(f), the liability for employee benefits expected to be settled more than 12 months from the reporting date are recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account. Information to be furnished under the Charitable Fundraising Act 1991 3. Details of aggregate gross income and total expenses of fundraising activities

2017

$ 2016

$ Gross proceeds from fundraising Appeals 148,619 - Art Union tickets 28,690 General donations 186,561 - Major Gifts (including Corporate/Trust and Foundations/Sponsorships)

177,462 -

Bequests 1,255,365 - Community Fundraising 45,514 - Total gross proceeds from fundraising 1,842,211 - Less: Total direct costs of fundraising activities (including direct and indirect staff costs)

(509,050)

-

Net surplus obtained from fundraising 1,333,161

-


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Notes to the financial statements for the year ended 30 June 2017 (continued) 4. Statement showing how funds received are applied for Charitable Purposes

2017

$ 2016

$ Net surplus obtained from fundraising activities 1,333,161 - Income Education Training & other income 253,393 - Sale of goods 1,090,966 - Investment income & dividends 426,088 - Changes in the fair value of financial assets 497,496 Government grants – Federal & State 1,729,197 - 3,997,140 - Expenditure on direct services Education and Training (13,554) - Direct Information & Support Services (1,718,759) - Policy and Advocacy expenses (673,181) - Membership expenses (888) - Stewardship & Volunteer expenses (893) - Direct Services (2,407,275) - Research Grants & Scholarships (402,400) - (2,809,675) - Expenditure on indirect expenses Investment expenses (51,129) - Moving and merger costs (24,301) -

(75,430) - Expenditure on head office administration (1,710,610) - Net surplus transferred to accumulated funds 734,586

-


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Notes to the financial statements for the year ended 30 June 2017 (continued) 5. Comparisons by monetary figure and percentages

Notes 2017 $

2016 $

Gross income from fundraising 3 1,842,211 - Total cost of fundraising (including direct and other staff costs)

3 509,050 -

Total cost of fundraising as a percentage of gross income from fundraising

28% -

Net surplus from fundraising 1,333,161 - Net surplus from fundraising as a percentage of gross income from fundraising

72% -

Total cost of services (including research grants & scholarships)

4 2,809,675 -

Total direct expenditure (excluding cost of fundraising) 4,520,285 - Total cost of services as a percentage of total direct expenditure

62% -

Total income received (including net profit from fundraising) 5,330,300 - Total cost of services as a percentage of total income received

53% -

Fundraising appeals conducted during the year: General public appeals, donations, community events and sponsorship.


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Notes to the financial statements for the year ended 30 June 2017 (continued) 6. Expenses

2017 $

2016 $

(a) Depreciation expense Building 54,073 - Plant & equipment 72,083 - Motor vehicles 15,779 - Total depreciation 141,935 - (b) Costs of sales Cost for sales 70,700 - Total Cost of sales 70,700 - (c) Costs of premises Cleaning & pest control 15,668 - Rates & taxes 14,722 - Rental for premises occupied 468,337 - Repairs & maintenance 18,928 - Security expenses 3,064 - Utilities 52,118 - Total premises costs 572,837 - (d) Employment expenses Wages and salaries 2,627,509 - Employee superannuation contributions 235,769 - Other employment expenses 79,874 - 2,943,152 -

7. Cash and cash equivalents

Cash on hand 1,651 156 Cash at bank 892,345 832,061 Total Cash 893,996 833,017

8. Trade & other receivables

Trade receivables 2,710 15,764 Other receivables 27,196 49,116 Total Trade & Other Receivables 29,906 64,880

9. Other current assets

Prepayments 54,122 64,000 54,122 64,000


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Notes to the financial statements for the year ended 30 June 2017 (continued)

10. Financial assets at fair value through profit or loss The Foundation’s financial assets included in the statement of financial position are carried at their fair value.

Refer to Note 2(b) for the methods and assumptions adopted in determining fair values for investments.

2017

$ 2016

$

Non-current assets Investments – Listed companies 9,987,508 8,956,724 9,987,508 8,956,724

Price risk exposure arises from the Foundation's investment portfolio which is caused by factors specific to individual stock or factors affecting all instruments in the market. 11. Property, plant and equipment

2017 $

2016 $

Plant and equipment: At cost 738,706 718,563 Less: accumulated depreciation (415,888) (343,805) 322,818 374,758 Motor Vehicles: At cost 63,771 109,922 Less: accumulated depreciation (48,830) (73,303) 14,941 36,619 Buildings: At cost 2,190,740 2,190,740 Less: accumulated depreciation (235,744) (181,671) 1,954,996 2,009,069 Land: At cost 1,000,000 1,000,000 Less: accumulated depreciation - - 1,000,000 1,000,000 Total plant and equipment At cost 3,993,217 4,019,225 Less: accumulated depreciation (700,462) (598,779) 3,292,755 3,420,446


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Notes to the financial statements for the year ended 30 June 2017 (continued) 11. Plant and equipment (non-current) (continued) Plant &

Equipment Motor

Vehicles Buildings Land

Total $ $ $ $ $ Balance at 1 July 2016 374,758 36,619 2,009,069 1,000,000 3,420,446 Additions 20,143 - - - 20,143 Disposals - (5,899) - - (5,899) Depreciation (72,083) (15,779) (54,073) - (141,935) Balance at 30 June 2017 322,818 14,941 1,954,996 1,000,000 3,292,755

12. Trade & other payables

2017 $

2016 $

Trade & other payables (current) Trade payables 64,767 27,792 Accrued expenses 91,420 132,214 Other 16,372 63,325 Deposits for future services 485,431 379,523 657,990 602,854 Trade & other payables (non-current) Deposits for future services 149,746 151,746 Deferred rent payables 199,748 89,094 Macquarie Bank Asthma Australia Research Alliance 45,317 45,317 394,811 286,157

Deposits for future services Represents grants received by the Asthma Foundation Queensland and New South Wales, which are unspent at the reporting date and are for a specific project not yet completed are only recognised as income when the project occurs as these amounts are repayable if not fully utilised on the specific project. Macquarie Bank asthma research alliance Represents revenue received by the Asthma Foundation Queensland and New South Wales from Macquarie Bank part of which was applied against a Research meeting in April 2010. Any future application of these funds will be undertaken with approval from Macquarie Bank, at which time the revenue will be recognised when the related project will occur. 13. Employee benefits

2017 $

2016 $

Aggregate liability for employee benefits including on-costs: Current 180,282 159,229 Non-current 28,755 43,217

Total employee benefits 209,037 202,446


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Notes to the financial statements for the year ended 30 June 2017 (continued) 14. Reserves (i) The Matthew Hayes Memorial Fund This fund was established: a) to educate asthmatics to understand how to deal with and control their asthma, in order to improve

their quality of life; b) to advance the education of those involved in the treating and teaching of asthmatics in how to

control and live with asthma; c) to educate the general public that asthma is a common, often serious and life threatening disease.

The Matthew Hayes Memorial Fund 2017

$ 2016

$ Accumulated funds at the beginning of the year 289,810 286,940 Less: Research expenditure (2,000) - Add: Donations received - - Add: Notional allocation of interest from investments 5,468 2,870

Funds transferred from retained earnings* 3,468 2,870

Accumulated funds at the end of the year 293,278

289,810

*Funds transferred from Asthma Foundation Queensland and New South Wales retained earnings are based on the notional allocation of interest to preserve the purchasing power of the capital in the Fund.

(ii) The Pearl Sheppard Fund This fund was established: i) to provide expert opinion and advice to school children with asthma and their carer’s in the

City of Greater Wollongong; ii) to provide practical asthma information, training and community support to school children

with asthma and their carer's in the City of Greater Wollongong;

The Pearl Sheppard Fund

2017 $

2016 $

Accumulated funds at the beginning of the year 2,096,220 2,106,246 Adjustment * (176,115) - Expenses paid during the year (3,398) (138) Net investment income 70,737 64,203 Fair value gains/(losses) to equity 147,929 (74,091) Funds transferred from (to) retained earnings

215,268

(10,026)

Accumulated funds at the end of the year 2,135,373 2,096,220

*An adjustment has been made to bring the balance of the Pearl Sheppard Fund into line with the Perpetual portfolio valuation.


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Notes to the financial statements for the year ended 30 June 2017 (continued) (iii) Research Reserve This reserve was established:

i) to create a Research Fund from the proceeds of a current bequest with the aim to grow the Fund further from future bequests and community donations;

ii) to support future research.

Research Reserve

2017 $

2016 $

Accumulated funds at the beginning of the year 854,469 854,469

Net transfers from retained earnings 781,589 -

Accumulated funds at the end of the year 1,636,058 854,469

Total other reserves at 30 June 2017 4,064,709 3,247,655 15. Commitments In collaboration with Asthma Australia, a National Asthma Research Program was established which aims to support the highest quality research across the country. The Foundation has committed $250,000 to Asthma Australia towards research grants and scholarships in the year to 30 June 2017. 2017

$ 2016

$ Within 1 year 250,000 250,000 250,000 250,000

A 7-year lease was entered into for new office premises in Chatswood in 2015. This lease will expire on 30th June 2022. The lease incentive provided is being taken as base rent free periods in the first 3 years. There are four lease agreements in relation to the Op Shops in Queensland. 2017

$ 2016

$ Within 1 year 287,455 418,699 After 1 year and not more than 5 years 851,573 1,338,952 After 5 years - 240,366 1,139,028 1,998,017

There is also an additional commitment to the CRM software update plan as follows: 2017

$ 2016

$ Within 1 year 19,071 15,893 After 1 year and not more than 5 years - 22,874 19,071 38,767


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Notes to the financial statements for the year ended 30 June 2017 (continued) 16. Related Party Disclosures There were no related party transactions with any Directors during the financial year ended 30 June 2017. The constitution of Asthma Foundation Queensland and New South Wales precludes the payment of dividends. 17. Key Personnel Remuneration The Directors act in an honorary capacity and receive no remuneration or benefits. 18. Events after the Reporting Date The Board of AFQN agreed, on 3 August 2017, to participate in a potential national merger. 19. Contingent Liabilities and Contingent Assets The Foundation has in place a Term Deposit backed bank guarantee in relation to office premises at 799 Pacific Highway, Chatswood. 2017

$ 2016

$ Bank guarantee 110,051 110,051

20. Controlled entities 2017

2016

Asthma Foundation of NSW 100% 100% The Asthma Foundation of Queensland 100% 100%


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Declaration by the President in respect of Fundraising Appeals under the Charitable Fund Raising Act 1991 for the year ended 30 June 2017 In accordance with a resolution of the Directors of Asthma Foundation Queensland and New South Wales, I declare that: - In my opinion as the President;

a) the Statement of Profit or Loss and Other Comprehensive Income gives a true and fair view of the state of all income and expenditure of Asthma Foundation Queensland and New South Wales with respect to fundraising appeals; and

b) the Statement of Financial Position gives a true and fair view of the state of affairs with respect

to fund raising appeals; and

c) the provisions of the Charitable Fundraising Act 1991 and the regulations under that Act and the conditions attached to the authority have been complied with; and

d) the internal controls exercised by Asthma Foundation Queensland and New South Wales are

appropriate and effective in accounting for all income received and applied by Asthma Foundation Queensland and New South Wales and its controlled entities from any of its fundraising appeals.

On behalf of Asthma Foundation Queensland and New South Wales _____________________________________ I Buddery President Dated at Sydney:

29/09/17

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Level 11, 1 Margaret St Sydney NSW 2000

Australia

Tel: +61 2 9251 4100 Fax: +61 2 9240 9821

www.bdo.com.au

INDEPENDENT AUDITOR'S REPORT

To the members of Asthma Foundation Queensland and New South Wales

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of Asthma Foundation Queensland and New South Wales (the

registered entity) and its subsidiaries (the Group), which comprises the consolidated statement of

financial position as at 30 June 2017, the consolidated statement of profit or loss and other

comprehensive income, the consolidated statement of changes in equity and the consolidated

statement of cash flows for the year then ended, and notes to the financial report, including a

summary of significant accounting policies, and the responsible entities’ declaration.

In our opinion the accompanying financial report of Asthma Foundation Queensland and New South

Wales, is in accordance with Division 60 of the Australian Charities and Not-for-profits

Commission Act 2012, including:

(i) Giving a true and fair view of the Group’s financial position as at 30 June 2017 and of its

financial performance for the year then ended; and

(ii) Complying with Australian Accounting Standards – Reduced Disclosure Requirements and

Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013.

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities

under those standards are further described in the Auditor’s responsibilities for the audit of the

Financial Report section of our report. We are independent of the Group in accordance with the

auditor independence requirements of the Australian Charities and Not-for-profits Commission

Act 2012 (ACNC Act) and the ethical requirements of the Accounting Professional and Ethical

Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are

relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical

responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our opinion.

BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.

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Other information

Those charged with governance are responsible for the other information. The other information

obtained at the date of this auditor’s report is information included in the registered entity’s

annual report, but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do

not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent

with the financial report or our knowledge obtained in the audit or otherwise appears to be

materially misstated.

If, based on the work we have performed on the other information obtained prior to the date of

this auditor’s report, we conclude that there is a material misstatement of this other information,

we are required to report that fact. We have nothing to report in this regard.

Responsibilities of responsible entities for the Financial Report

The responsible entities of the registered entity are responsible for the preparation and fair

presentation of the financial report in accordance with Australian Accounting Standards – Reduced

Disclosure Requirements and the ACNC Act, and for such internal control as the responsible

entities determine is necessary to enable the preparation of the financial report that is free from

material misstatement, whether due to fraud or error.

In preparing the financial report, responsible entities are responsible for assessing the Group’s

ability to continue as a going concern, disclosing, as applicable, matters related to going concern

and using the going concern basis of accounting unless the responsible entities either intends to

liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the registered entity’s financial

reporting process.

Auditor’s responsibilities for the audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is

free from material misstatement, whether due to fraud or error, and to issue an auditor’s report

that includes our opinion. Reasonable assurance is a high level of assurance, but is not a

guarantee that an audit conducted in accordance with the Australian Auditing Standards will

always detect a material misstatement when it exists. Misstatements can arise from fraud or error

and are considered material if, individually or in the aggregate, they could reasonably be

expected to influence the economic decisions of users taken on the basis of this financial report.

A further description of our responsibilities for the audit of the financial report is located at the

Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:

http://www.auasb.gov.au/auditors_responsibilities/ar3.pdf

This description forms part of our auditor’s report.

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We also report that:

(a) the financial statements show a true and fair view of the financial result of fundraising

appeals conducted during the year;

(b) the accounting and associated records have been properly kept during the year in accordance

with the Charitable Fundraising Act 1991 and the Regulations;

(c) money received as a result of fundraising appeals conducted during the year has been properly

accounted for and applied in accordance with the Charitable Fundraising Act 1991 and the

Regulations; and

(d) at the date of this report, there are reasonable grounds to believe that the company will be

able to pay its debts as and when they fall due.

BDO East Coast Partnership

Kieran Gould

Partner

Sydney: 29 September 2017

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