together we’re fighting for better treatments and improved ... · south australians now and into...

Annual Report

2019

Together we’re fighting for better treatments and improved care in hospitals

2 | Annual Report 2019 | 2

The Hospital Research Foundation Group supports people in the community by funding vital health and medical research

and improved patient care in our hospitals.

The Queen Elizabeth Hospital

Royal Adelaide Hospital

Modbury Hospital

Flinders Medical Centre

South Australian country hospitals

Lyell McEwin Hospital

Jamie Larcombe

Centre

With the kind support of our donors and ticket buyers in the Hospital Research Home Lottery we fund research and patient care activities at the following hospitals and healthcare providers:

We also provide funding for lifesaving clinical and scientific research at the following research institutes and universities:

SUPERCYCLE

Women and Children'sHospital

Noarlunga Hospital


In 2019 The Hospital Research Foundation launched “Together.Fight.” – a message which shows what’s possible if the community comes together to fight the common enemy of disease in whatever form it takes. Little did we know at that time, that South Australia and people across the globe would spend the first half of 2020 literally fighting a life-and-death battle against a deadly virus. Not to mention the devastating bushfires which ravished our state and nationally over summer.

These challenges serve as stark reminders of the importance and power of medical research and highlight that efforts to fund research and patient care are not just necessary, but essential.

The summer’s bushfires galvanised our national community. People coming together to fight. The impact of these fires on emergency service workers and those directly affected has taken many forms, with mental health and post-traumatic stress often being the impact that goes untold and unnoticed.

The COVID-19 pandemic has galvanised our global community. People staying apart but working together to fight. And fight we did at THRF, by funding numerous projects to help on the frontline and supporting vulnerable patient groups.

Until an effective vaccine can be developed and widely available, we will continue to live with limited travel and social distancing measures in place. This is what life is like in the absence of just one vaccine; we can only imagine how different our lives would be if other breakthroughs had not been achieved by our hardworking researchers.

Medical research is vital. Medical research changes and saves lives. And medical research is what drives us at THRF; finding cures, improving care.

While we couldn’t have foreseen the COVID-19 crisis, at THRF we have been putting measures in place for many years to ensure we are prepared for any crises which may threaten our operations, income and more.

The incredible results achieved in 2019, which includes the best funds-to-research ratio in THRF history of 90.4%, has ensured we can ride any storm and still continue to be there for the community when they need it most.

In a time when there is some public concern about fundraising transparency, we are extremely proud of this ratio.

The efficiency of our model, which includes an extensive Group of charities and partners plus commercial activities which also cover administration costs, allows us to have even greater impact on the health and wellbeing of South Australians.

Of most importance though, is the support of our community. To our generous donors and ticket buyers in the Hospital Research Home Lottery – thank you!

Because of you, in 2019 THRF Group was able to increase our support to more than 50 areas of research and patient care across all South Australian communities and public hospitals.

This spans the full scope of healthcare from pregnancy to end-of-life, and the many devastating diseases in between. It also includes many rare and hard-to-treat diseases, crisis assistance and supporting the community’s most vulnerable – bringing hope to every South Australian during their time of need.

Donors and Lottery ticket buyers can feel extremely proud that their contribution has had an even greater impact!

Message from the Chair


Because of this support, we have grown to be the largest non-government funder of medical research and patient care in South Australia. We are at a scale where we can drive initiatives to deliver tangible outcomes and we take real pride in the impact we are able to achieve.

Our highly-skilled Board of Directors, who all volunteer their time, have done a wonderful job in overseeing the viability and corporate governance of such an important organisation to the health of every South Australian. I thank them for their ongoing commitment.

They complement the hard-working teams at the coalface of our Group, superbly led by CEO Paul Flynn, who strive to provide outcomes for the community in the most efficient manner possible.

Our 2019 Impact Report outlines the achievements made across the breadth of the Group, many of which result in tangible health outcomes for our community.

And while it’s great to celebrate these achievements, there is always more to be done. Towards the end of 2019 we opened a Project

Message from the Chair _continued

Grant round for researchers which attracted our highest-ever number of applications (189) and we could only end up awarding nine grants. This shows the huge need for more medical research and patient care funding in South Australia.

If there’s anything the events of 2020 have taught us, it’s the importance of medical research to keep our communities safe.

Now more than ever, we need to maximise investment in research and patient care so that together, we can win the fight against deadly diseases.

It is only together that we can continue the fight to find cures and improve treatments for our loved ones.

We look forward to your ongoing support in 2020 and beyond.

#togetherfight

Dr Stephen Rodda Chair

In 2019, your donation had an even bigger impact! Thanks to you, we have been able to extend our support to more than

50 areas of research and patient care in South Australian hospitals and communities!

Together we are saving more lives!

https://my13.digitalexperience.ibm.com/3d774658-d5bd-41eb-984e-056f12308183/dxdam/cb/cb7919fa-5c1e-4e18-9e97-c4cef509a7ee/THRFG-Impact-Report-2019-F-web-compressed_V1.pdf


As South Australia’s most impactful health charity, we are committed to our purpose of doing all we can to protect the health and wellbeing of our community.With your ongoing support, we are able to achieve that purpose and have done so for over 50 years.

That is why we are delighted that in 2019 we achieved our best funds-to-research and patient care ratio in the history of The Hospital Research Foundation Group!

90.4% of our gross profit in 2019 was allocated to our purpose – an incredible figure in the profit-for-purpose sector!

We are extremely proud of the impact we have on the health of our communities with these grants, and are very grateful for the generous support of donors and ticket buyers in the Hospital Research Home Lottery who make this possible.

The ongoing trust of the community drives our work, so it makes us even more pleased to report back with this result.

Rest assured, when you donate to THRF Group, your money ends up where it’s meant to! And in a timely fashion.

In 2019, our support increased to more than 50 areas of research and patient care across all public hospitals and research institutions in South Australia.

From cancer, heart disease, stroke, diabetes, dementia and many more, we are fighting for better treatments and improved care for you and your loved ones.

And when faced with a crisis like coronavirus or bushfires, our sound financial management means we have the ability to not only survive these challenges, but dedicate emergency funds to the healthcare areas affected by these disasters.

In fact, rather than be hindered by these crises, we have stepped up our operations and gone above and beyond to ensure we are there for the community in their time of need.

This is a huge credit to the success of our commercial business activities and responsible financial management – overseen by a passionate Board of Directors led by Chair Dr Stephen Rodda – to withstand the economic realities which are hitting the globe.

We are also pressing ahead with growth objectives, so we can further our impact within the community.

We are in the process of welcoming more charities to THRF Group, joining the seven which currently sit under our umbrella across different disease areas, to build efficiencies and maximise the health outcomes we can deliver.

We are also planning to relocate to a new office to house our growing teams, while increasing our long-term assets and commercial income.

All of these moves, as our past decisions have attested, will set us up to withstand any economic challenges thrown at us and grow our impact for South Australians now and into the future.

Thank you to all our supporters for joining our fight against deadly diseases and illnesses, helping to find better treatments and cures informed by the latest research.

We can’t do it alone, but together with your support and the hard work of our researchers and health professionals, we have a fighting chance.

We are stronger together.

Paul Flynn Chief Executive Officer

Message from the CEO


Dr Stephen RoddaDr Stephen Rodda (Chair) is the Executive Director: Innovation and Commercial Partnerships at The University of Adelaide. Dr Rodda has 16+ years of experience in the areas of scientific research, research management, technology commercialisation, investment management and corporate governance. He is passionate about the successful translation of research into outcomes that deliver social and economic benefit to our communities. Educated at the University of Adelaide, he gained a first-class honours degree, a PhD in Biochemistry and was awarded the University Medal. Subsequently he was awarded the prestigious CJ Martin and Arthritis Foundation fellowships for post-doctoral training at Harvard University. Dr Rodda holds an MBA, is a Fellow of the Australian Institute of Company Directors and has undertaken the Advanced Management Program (AMP) at the Harvard Business School. He is also Chair of Cost-Bry Pty Ltd (trading as BiomeBank).

John MacPhail John MacPhail (Deputy Chair) is a partner of Lynch Meyer Lawyers, a leading Adelaide law firm providing a range of services for small-to-medium enterprises, large corporations and not-for-profit organisations. John has more than 30 years’ experience working in commercial law in firms in London, Sydney, Melbourne, and Adelaide as an intellectual property and technology law specialist. He is a past President of the Copyright Society of Australia, and taught part-time as a postgraduate university law lecturer and professional examiner on intellectual property subjects. As a practising lawyer he advises clients working in a wide range of industries, particularly medical and healthcare, biotechnology, wine, retail, sports, education and research, marketing and sponsorship, and ITC. In addition to his role as Deputy Chair, John is Chair of the Human Resources and Remuneration Sub Committee and the Governance and Risk Sub Committee.

Board Members


Professor Peter Hewett Professor Peter Hewett is a Clinical Professor of Surgery with the Adelaide University Discipline of Surgery and is Head of Colorectal Surgery at The Queen Elizabeth Hospital. He has published more than 130 articles in peer reviewed journals and has held three NHMRC grants. Prof Hewett has developed and is the coordinator of the Adelaide University Masters Course in Minimally Invasive Surgery. He is chairman of Colorectal Surgery which is a busy eight-surgeon private colorectal practice based in North Adelaide.

Luciana Larkin Luciana Larkin is Director, Business Advisory for William Buck, a fully integrated firm of Chartered Accountants and advisors. As a sharp and strategic thinker, she applies her expertise in financial, complex tax and business transactions to deliver effective outcomes. Luciana brings this professional expertise and strong focus on accountability and governance to the THRF Board together with experience as a trusted advisor to numerous other Corporate Boards and Not-for- Profit bodies. Luciana is also Chair of THRF’s Finance and Audit Sub Committee.

Board Members_continued

Professor John Beltrame AMLeading cardiologist Professor John Beltrame AM brings a medical perspective to the board. He has degrees in both science and medicine, and is a Fellow of the Royal Australasian College of Physicians, the European Society of Cardiology, the American College of Cardiology, the American Heart Association and the Cardiac Society of Australia and New Zealand. He is the Michell Professor of Medicine and the Director of Research for the Central Adelaide Local Health Network.


MaryLou Bishop MaryLou joined the board of THRF in 2014 and has since also become a member of our Group charity, the Centre for Creative Health. For nearly 30 years MaryLou had run a surgical devices company selling highly technical operating room equipment in to the largest hospitals across SA, WA and NT. MaryLou has a strong understanding of the medical world and the health industry. In 2014 MaryLou was elected as a Councillor to The Town of Walkerville and is now Deputy Mayor. For spiritual and artistic nurturing MaryLou has become involved in the philanthropic Chairman’s Circle which supports The Adelaide Festival of Arts.


John WoodwardJohn Woodward has 30 years’ experience in technology related change programs, projects and consulting services across industries including the energy, health, water, superannuation and entertainment sectors. John is Non-Executive Director at Statewide Super, the Deputy Mayor of West Torrens Council, Project Manager at Alinta Energy and occasional lecturer at the University of Adelaide (Masters of Project Management). John holds an MBA specialising in technology management, is a Fellow of the Australian Institute of Company Directors and Graduate of the Australian Institute of Superannuation Trustees. He is also certified Project Management Professional through the Project Management Institute. John joined the Board of The Hospital Research Foundation in 2013.


Brigadier Alison Creagh CSC (Retd)Brigadier Alison Creagh CSC (Ret’d) is a Defence Ambassador for the Australian Capital Territory, a member of the ACT Defence Industry Advisory Board and a member of the AustCyber Canberra Node Industry Advisory Group. She is also a strategic adviser to the UNSW Defence Research Institute and has been an Adjunct Lecturer and at the University of New South Wales Canberra in Cyber Security.

Brigadier Creagh is Chair of the ACT Ministerial Advisory Council for Veterans and their Families and has served as a Member of the Australian War Memorial Council. She is the President of Rowing ACT and is a Non-Executive Director for the charities, Veterans Film Festival, The Hospital Research Foundation and The Road Home, and chairs the Board of Governors for The Road Home as well as the Information Technology and Cyber Security sub-committee. She is also a Trustee for the Commando Welfare Trust and an international para-rowing classifier for FISA.

Brigadier Creagh retired from the Australian Regular Army in March 2015 after a 30-year career and continues to serve in the Army Reserve. She is also holds the honourary appointment of Representative Colonel Commandant for the Royal Australian Corps of Signals.


Rilka Warbanoff Well known as a cook, teacher, entrepreneur, author and radio personality, Rilka Warbanoff started her career in the family business, winning the South Australian Tourism Award in 1982. She later established an executive placement business, acting as a global corporate head-hunter and twice being named a finalist in the prestigious Telstra Business Woman of the Year Awards.

She was the voice of culinary culture on the Drive program on 774 ABC Melbourne before returning to Adelaide where she published Rilka’s Feasts in 2012 and joined FIVEaa as resident foodie and guest presenter.

Realising that up to 40 per cent of Australians have some type of dietary restrictions, Rilka set up her cooking school to teach people how they can prepare cost-effective, nutritious food in their own kitchens without sacrificing flavour and variety.


Paul FlynnPaul Flynn (Chief Executive Officer) came to The Hospital Research Foundation team in 2009 to take on the role of Chief Executive Officer. Paul is an innovative and entrepreneurial Executive who has earned a stellar reputation for achievement during a multifaceted career in both the Finance and Not-for-Profit sectors. He has been acknowledged for his contribution by being a previous recipient of the Ernst & Young Social Entrepreneur of the Year in SA/NT and was also previously awarded the Equity Trustees Australian CEO Award for Innovation. Paul is passionate about the opportunity to help medical and scientific researchers in their important voyage of discovery which will benefit all Australians. Paul brings advanced skills to The Hospital Research Foundation in the areas of Leadership, Sales Management, Property Development and Management, Change Management, Financial Risk Management, Employee and Organisation Development and Employee Relations. He is delighted to be working with the team at THRF as well as Hospitals and Universities, contributing to the health and wellbeing of all Australians. Paul is a non-executive Director of Cost-Bry Pty Ltd (trading as BiomeBank) and AusHealth Pty Ltd.

Andrew Mannix Andrew Mannix is Director, Defence Mission Systems with Leidos Australia.

Prior to joining Leidos, he spent six years in the Mining Industry with Liebherr Australia. Andrew previously held General Management roles, including Surveillance and Protection Systems, Products and Logistics Businesses with BAE Systems. Andrew is a proven leader of large and diverse businesses. He spends time supporting community sporting clubs in administration and coaching. He a board member of The Road Home since late 2014 and is a Board Member of The Hospital Research Foundation.

Through spending a significant part of his career in the Defence Industry, Andrew has worked amongst people serving in our Defence Forces, shoulder to shoulder with veterans in business. He has listened to Australian service men and women before and after deployment and seen how their work has impacted their lives.

Whilst Andrew believes his contribution to The Road Home doesn’t compare to the contribution people have made in the service of their country, he is proud to be a part of The Road Home – Board of Governors. In particular, helping to make investments into important research and programs for our veterans, emergency service first responders and their families.



Financials


Financials_continued

THE HOSPITAL RESEARCH FOUNDATION INCORPORATED AND CONTROLLED ENTITIES

ABN 86 248 830 078

REPORT BY THE MEMBERS OF THE COMMITTEE FOR THE YEAR ENDED 31 DECEMBER 2019

Your committee members submit the financial report of The Hospital Research Foundation Incorporated for the financial year ended 31 December 2019.

Committee Members The names of the committee members throughout the financial year and at the date of this report are:

John MacPhail Prof Peter Hewett Prof John Beltrame Dr Stephen Rodda Brigadier Alison Creagh CSC Luciana Larkin

Valerie Timms (resigned 25th February 2019) John Woodward Mary Lou Bishop Rllka Warbanoff Andrew Mannix

Committee members have been in office since the start of the financial year to the date of this report unless otherwise stated.

Principal Acl1v1!1es

The principal activity of The Hospital Research Foundation Incorporated during the financial year was to support continued research across South Australia through vital health and medical research, and improved patient care.

Slgn1fkant Changes No significant changes in the nature of activities occurred during the financial year.

Operating Result The net surplus after income tax and payments for research, hospital support and patient care activities of $21,722,665 (2018: $17,697,313) was a profit of $7,720,502 (2018: $7,308,521).

This profit of $7,720,502 has been allocated directly to the Association's Research Reserve which has been established to ensure sufficient funds are available for forward grant commitments. This represents a Funds to Research Ratio of 90.4% of Gross Profit.

Research Reserve The Association has established a Research Reserve to ensure that sufficient funds are available for future grant commitments.

Event, After the Reporting Period

On 31 January 2020, the World Health Organisation (WHO) announced a global health emergency because of a new strain of coronavirus (COVID-19 outbreak) and the risks to the international community as the virus spreads globally beyond its point of origin. Because of the rapid iocrease in exposure globally, on 11 March 2020, the WHO classified the COVI0-19 outbreak as a pandemic. The adverse economic effects of the COVI0-19 outbreak are expected to impact the demand for lottery tickets in the near future which may lead to the Group recording a reduced gross profit in the 2020 financial year.

The full impact of the COVID-19 outbreak continues to evolve at the date of this report. The Group is therefore uncertain as to the full impact that the pandemic will have on its financial condition, liquidity and future results of operations during 2020. Management is actively monitoring the situation and its impact on the Grqup's financial condition, liquidity and operations. Given the daily evolution of the COVID-19 outbreak and the national response to curb its spread, the Group is not able to estimate the effects of the COVID-19 outbreak on its results of operations, financial condition, or liquidity for the 2020 financial year. Despite this, the Group is well placed �o continue operations through this uncertainty. At the start of the 2020 financial year1 the Group had a strong cash position of 53412341606. After settlement of all liabilities of $2219081092 the remaining cash would be $11,326,514 which is more than sufficient to meet the 2020 grant funding obligations and employee obligations. Also due to success of the first lottery in 2020 there is sufficient funds to continue operating our fundraising activities. The situation of COVID 19's impact on the business is being monitored on a regular basis and the Group has the flexibility of deferring grant funding if required to ensure the Group remains solvent.

No other matters of circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Association, the results of those operations, or the state of affairs of the Association in future financial years.

Environmental Issues The Association's operations are not regulated by any environmental regulation under a law of the Commonwealth or of a state territory.

Indemnifying Officers or Auditors A premium has been paid in respect of a contract insuring directors, secretaries and executive officers of the Association against a liability incurred as director, secretary or executive officer.

No indemnities have been given during or since the end of the financial year, for any person who is or has been an officer or auditor of the Association.

Proceedings on Behalf of the Assodation No person has applied for leave of Court to bring proceedings on behalf of the Association or intervene in any proceedings to which the Association is a party for the purpose of taking responsibility on behalf of the Association for all or any of those proceedings.

The Association was not a party to any such proceedings during the year.

Page 1




ABN 86 248 830 078

REPORT BY THE MEMBERS OF THE COMMITTEE (CONT) FOR THE YEAR ENDED 31 DECEMBER 2019

In the opinion of the Committee of The Hospital Research Foundation Incorporated;

a) During the year ended 31 December 2019 no:

i) officer of the Association; ii) firm of which the officer is a member; or Iii) body corporate in which the officer has a substantial financial interest,

has received or become entitled to receive a benefit as a result of a contract between the officer, firm or body corporate and the Association; and

b) During the year ended 31 December 2019 no officer of the Association received directly or indirectly from the Association any payment or other benefit of a pecuniary value, other than disclosed in note 3 to the attached financial statements.

Signed in accordance with a resolution of the Committee and is signed for and on behalf of the Committee by:

Dr Stephen Rodda Chairperson

Dated thi�h day of April 2020

Page 2

John MacP hail Deputy Chairperson



In the opinion of the Committee:

THE HOSPITAL RESEARCH FOUNDATION INCORP ORATED AND CONTROLLED ENTITIES

ABN 86 248 830 078

STATEMENT BY THE MEMBERS OF THE COMMITTEE

(a) the summarised financial statements comprising the Summarised Statement of Profit or Loss and Other Comprehensive Income, Summarised Statement of Financial Position, Summarised Statement of Cash Flows and Summarised Statement of Changes in Equity and accompanying notes as set out on pages 4 to 10:

(I) comply with Australian Accounting Standards , other authoritative pronouncements of the Australian Accounting Standards Board and the Australian Charities and Not-for-profits Commission Act 2012;

(II) presents fairly the financial position of The Hospital Research Foundation Incorporated as at 31 December 2019 and its performance for the year ended on that date;

(ml are consistent with the full consolidated financial statements of the Association for the year ended 31 December 2019.

(b) at the date of this statement there are reasonable grounds to believe that the Association will be able to pay its debts as and when they become due and payable.

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

_eJ¼/d{--Dr Stephen Rodda Chairperson

Dated thi�h day of April 2020

Page 3

John MacPhail Deputy Chairperson




ABN 86 248 830 078

SUMMARISED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2019

Consolidated

Revenue

Lottery expense Fundraislng expenses Gross Proflt

Share of proflti(loss) of Associate

Employee benefits expense Depreciation and amortisation expense• administration Business Administration Net profit before funding payments

Funds paid for research, hospital support and patient care activities

Proflt for the year

Income tax benefit/ (expense) Proflt after tax

Other comprehensive income

Items that will not be reclassified subsequently to profit or loss Net gain/ (loss) on revaluation of financial assets

Other comprehensive income for the year

Total comprehensive income for the year

December 2019

66,387,491

( 32,528,640) (1,295,671) 32,563,180

(2,541)

(2,026,564) (374,271) (716,6371

29,443,167

(21,722,665)

7,720,502

7,720,502

208,576

208,576

7,929,078

December 2018

s 56,296,816

(27,358,146) 11,050,006) 27,888,664

(2,017,941) (297,208) (567,681)

25,005,834

(17,697,313)

7,308.521

7,308,521

499,729

499 729

7,808,250

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

Page 4



ASSETS Current Assets Cash and Cash Equivalents Trade and Other Receivables Financial Assets Other Current Assets Total Current Assets

Non-Current Assets Financial Assets


ABN 86 248 830 078

SUMMARISED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019

Investments Accounted for Using the Equity Method Property, Plant and Equipment Intangibles Right of use assets Total Non-Current Assets Total Assets

LIABILITIES Current Llabili ties Trade and Other Payables Provisions Right of Use Lease Liabilities Total Current Liablli ties

Non-Current Llabllities Provisions Right of Use Lease Liabilities Total Non-Current Uabtlltjes Total Liabilities

Net Assets

EQUITY Retained Earnings Financial Asset Reserve Research Reserve Total Equity

Consolidated 2019 2018

s s

34,23'!,606 22,336,432 564,958 793,435 205,522 s,n9,6B8

9,209,604 8,576,518 44,214,690 37,436,073

5,819,590 101,903

5,581,904 3,554,863 91,123 28,824 82,167

11,676,687 3,583,687 55,891,377 41,019,760

22,409,309 15,626,984 392,110 306,829

32,167 22,833,586 15,933,813

16,452 25,284 58,054 74,506 25,284

22,908,092 15,959,097

32,983,285 25,060,663

1,529,120 1,535,576 1,822,120 1,613,544

29,632,045 21,911,543 32,983,285 25,060,66 3

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

Page 5



THE HOSPITAL RESEARCH FOUNOATION INCORPORATED AND CONTROLLED ENTITIES

ABN 86 248 830 078

SUMMARISED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2019

Cash flows from operating activities Cash receipts from customers and clients Cash receipts from lotteries Payments in relation to lotteries Payments to suppliers and employees Grants paid Investment income Interest received

Net cash inflow/(outflow) from operating aCtivities

Cash floYt'S from investing activities

Payment for investments

Proceeds from sales of investments

Purchase of property, plant and equipment

Purchase of intangibles

Proceeds from sale of property, plant and equipment

Net cash inflow/(outflow) from investing activities

Cash flam from financing activities

Payment of right of use lease liability

Net cash inflow from financing actlvltfes

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

Consolidated December December

2019 2018

s s

4,765,508 5,746,932

61,284,908 49,840,533

(32,829,409) (25,822,821 I

(4,175,529) (3,735,785)

(15,163,196) (12,273,355)

163,055 178,678

559,064 319,740

14,604,401 14,253,922

(7,816,294) (5,631,018)

7,729,446 5,506,711

(2,473,526) (466,294)

(116,637) (16,814)

(1) 3,500

(2,677,012) (603,915)

(29,214)

(29,214)

11,898,174 13,650,007

22,336,432 8,686,425

34,234,606 22,336,432

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

Page 6




Al 31 December 2017


Profit for the year


Revaluation adjustment of investments Total other comprehensive Income

Transfer (to)/from reserves

Al 31 December 2018

ABN 86 248 830 078

SUMMARISED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2019

Financial Asset

Reserve

1,113,815

499,729

499,729

1,613,544

Retrospective adjustment for change in accounting policies -adoption of AASB 16: Leases

Balance at 31 December 2018 (restated) 1,613,544


Profit for the year


Revaluation adjustment of investments 208,576

Total other comprehensjve jncome 208,576

Transfer (to)/from reserves

Al 31 December 2019 1,822,120

Research Reserve

14,603,022

7,308,521

21,911,543

21,911,543

7,720,502

29,632,045

Retained earnings

1,535,576

7,308,521

(7,308,521)

1,535,576

(6,456)

1,529,120

7,720,502

(7,720,502)

1,529,120

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

Page 7

Total equity

17,252,413

7,308,521

499,729

499,729

25,060,663

(6,456)

25,054,207

7,720,502

208,576

208,576

32,983,285




ABN 86 248 830 078

DISCUSSION AND ANALYSIS FOR THE YEAR ENDED 31 DECEMBER 2019

Consolidated Statement of Profit or Loss and other Comprehensive Income

The Association recorded revenue from operating activities of $66,387,491 for the year (2018: $56,296,816), which included fundraising revenue of $3,701,737 (2018: $5,311,702), grants revenue of $716,901 (2018: $638,922), lottery income of $61,284,908 (2018: 49,840,533), interest income $559,064 (2018: $319,740), loss on asset disposal $47,905 (2018: $3,500 profit), investment income $163,055 12018: $178,678) and sundry income $9,731 (2018: $3,741).

Total expenditure for the year was $58,664,448 (2018: $48,988,295), which included lottery expenses of $32,528,640 (2018: $27,358,146), fundraising expenses of $1,295,671 (2018: $1,050,006), employee expenses of $2,026,564 (2018: $2,017,941), administrative depreciation and amortisation expenses of $374,271 (2018: $297,208), business administration expenses of $716,637 (2018: $567,681) and payment for research, hospital support and patient care activities of $21,722,665 (2018: $17,697,313),

The profit attributable to members for the year ended 31 December 2019 was $7,720,502 (2018: $7,308,521).

Consolidated Statement of financtal Positton

The Association's net assets increased by 32% during the period to $32,983,285 (2018: $25,060,663). This increase of $7,922,622 reflects the Association's operating surplus for 2019 of $7,720,502 and an unrealised gain on revaluation of financial assets of $208,576.

Total assets increased during the period by $14,871,617 or 36% to $55,891,377 (2018: $41,019,760). Cash holdings increased during the period by $11,898,174, trade and other receivables decreased by $228,477, other current assets increased by $633,086, financial assets increased by $295,424, property plant and equipment increased by $2,027,041 and intangible assets increased by $62,299.

Total liabilities increased during the period by $6,948,995 or 44% to $22,908,092 (2018: $15,959,097). Trade and other payables increased by $6,782,325 and provisions increased by $76,449.

A right of use asset and right of use lease liability were recognised during the period as a result of adopting AASB 16 Leases. At the end of the period, the right of use asset was $82,167 and the right of use lease liability was $90,221.

Establishment of Research Reserve

The Association maintains an established research reserve to ensure that sufficient funds are available in the future to fund forward grant commitments. During the year an amount of $7,720,502 was transferred from retained earnings to this reserve. When the direct funding amount of $21,722,665 provided to research, hospital support and patient care activities is added to the $7,720,502 appropriated to the research reserve in the 2019 financial year, the total of $29,443,167 represents 90.4% of the Associations gross profit that has been spent on research, hospital support and patient care activities and or allocated to the research reserve in 2019.

Consolidated Statement of Cash Flows

Net cash inflows from operating activities in 2019 were $14,604,401 (2018: $14,253,922).

During 2019 receipts from customers and clients were $4,765,508 (2018: $5,746,392) lottery receipts were $61,284,908 (201 B: $49,840,533), payments in relation to lotteries were $32,829,409 (2018: $25,822,821), payments to suppliers and employees were $4,175,529 (2018: $3,735,785) and grants paid were $15,163,196 (2018: %12,273,355).

The net cash outflows from investing activities were $2,677,012 (2018: $603,915). Payments for the purchase of investments increased by $2,185,276, proceeds from sales of investments increased by $2,222,735, payments for property plant and equipment increased by $2,007,232, receipts from sale of property, plant and equipment decreased by $3,501 and payments for the purchase of intangibles increased by $99,823.

The Association's cash increased by $11,898,174 during the period to $34,234,606 (2018: increase of $13,650,007).

Page 8



Basis of Preparation


ABN 86 248 830 078

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019

The summarised financial statements cover the consolidated financial statements of The Hospital Research Foundation Incorporated and its controlled entities. The Hospital Research Foundation Incorporated is an Association under the Associations Incorporation Act (SA) 1985, incorporated and domiciled in South Australia.

The Hospital Research Foundation Incorporated is considered to control the operations of Australian Prostate Cancer Research Society Ltd and Repat Foundation Inc, as the Hospital Research Foundation Incorporated is the sole member of these entities.

The Hospital Research Foundation Incorporated is a not for profit organisation.

The Association's registered office and principal place of business is: The Hospital Research Foundation Inc. 60 Woodville Road WOODVILLE SA 5011

The summarised financial statements are derived from, and consistent with, the audited financial report for the year ended 31 December 2019 prepared in accordance with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board and the Australian Charities and Not-for-profits Commission Act 2012.

Australian Accounting Standards set out accounting policies that the Australian Accounting Standards Board (AASB) has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions to which they apply.

The summarised financial statements and specific disclosures have been derived from the Association's full financial report for the financial year. The summarised financial report does not and cannot be expected to, provide as full an understanding of the financial performance, financial position and financing and investing activities of the Association, and should be read in conjunction with the full financial statements which includes all disclosures required by the relevant financial reporting framework.

The financial report has been prepared on an accruals basis and is based on historic costs, modified where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

The accounting policies used in the preparation of the Association's full financial report have been consistently applied, unless otherwise stated and are, in the opinion of the Committee members, appropriate to meet the needs of the Association.

2 Segmen I Reporting

The Association predominately operates in one business and geographical segment raising funds to support research principally in South Australian hospitals.

Short-Term Post- Total Key management personnel compensation Benefit Employment

$ December 2019 Total Compensation 311,028 29,548 340,575

December 2018 Total Compensation 318,161 30,225 348,386

Remuneration of Committee Members Committee members serve on a voluntary basis and do not receive any form of remuneration from The Hospital Research Foundation Incorporated.

4 Capital and Leasing Commitments

No material capital or unrecorded lease commitments existed at 31 December 2019 (31 December 2018: $nil)

Page 9



Contingent Liabilities


ABN 86 248 830 078

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019

No contingent liabilities existed at 31 December 2019 (31 December 2018: $nil)

6 Commitments

The Association has agreed to funding commitments for research of $11,491,949 (Dec 2018: $ 11,304,441) payable to various organisations between now and the period ending 31 December 2023.

7 Funding and Solvency

The ability of the Committee to provide services at the current level of operations is dependent upon the Association maintaining and increasing the existing donor levels, sponsorship, grant funding and other additional sources of funding, as well as achieving positive operating cash flows and operational surpluses.

8 Even ts after the Reporting Period

On 31 January 2020, the World Health Organisation (WHO) announced a global health emergency because of a new strain of coronavirus (COVID-19 outbreak) and the risks to the international community as the virus spreads globally beyond its point of origin. Because of the rapid increase in exposure globally, on 11 March 2020, the WHO classified the COVI0-19 outbreak as a pandemic. The adverse economic effects of the COVID-19 outbreak are expected to impact the demand for lottery tickets in the near future which may lead to the Group recording a reduced gross profit in the 2020 financial year.

The full impact of the COVID-19 outbreak continues to evolve at the date of this report. The Group is therefore uncertain as to the full impact that the pandemic will have on its financial condition, liquidity and future results of operations during 2020. Management is actively monitoring the situation and its impact on the Group's financial condition, liquidity and operations. Given the daily evolution of the COVID-19 outbreak and the national response to curb its spread, the Group is not able to estimate the effects of the COVID-19 outbreak on its results of operations, financial condition, or liquidity for the 2020 financial year. Despite this, the Group is well placed to continue operations through this uncertainty. At the start of the 2020 financial year, the Group had a strong cash position of $34,234,606. After settlement of all liabilities of $22,908,092 the remaining cash would be $11,326,514 which is more than sufficient to meet the 2020 grant funding obligations and employee obligations. Also due to success of the first lottery in 2020 there is sufficient funds to continue operating our fundraising activities. The situation of COVID 19's impact on the business is being monitored on a regular basis and the Group has the

No other matters of circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Association, the results of those operations, or the state of affairs of the Association in future financial years.

9 Related Parties

John MacPhail is a partner at Lynch Meyer Lawyers. During the year the Association and Controlled Entities utilised the services of Lynch Meyer Lawyers for various legal advice. The transactions were conducted under normal trading terms and conditions and there were no benefits arising out of these transactions directly attributable to the Committee Member. The total amount paid to Lynch Meyer Lawyers is summarised below, an amount of $8,665 (2018: $26,273) was outstanding at year end.

Details of the transactions were as follows:

Lynch Meyer - Legal Advice

2019 2018 s s 93,874 54,862 93,874 54,862

Professor John Beltrame, a member of the committee, is also one of the Chief Investigators in the Value Based Healthcare in Elective Coronary Stenting research. The Association is funding this trial $200,000 over a 4 year period ended on 31 December 2021. Professor John Beltrame is also a Chief Investigator researching the Potential Mechanisms and Treatment of Post-infarct Angina in Patients with Myocardial lnfartion with Non-Obstructed Coronary Arteries. The Association funded $750,000 for one year ended 31 May 2019.

Page 10



Tel: +61 8 7324 6000 Fax: +61 8 7324 6111 www.bdo.com.au

Level 7, BDO Centre 420 King William Street Adelaide SA 5000 GPO Box 2018, Adelaide SA 5001 AUSTRALIA

BDO Audit (SA) Pty Ltd ABN 33 161 379 086 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 Audit (SA) Pty Ltd 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.

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF THE HOSPITAL RESEARCH FOUNDATION INCORPORATED

Report on the Audit of the Summary Financial Statements

Opinion

The summary financial statements, which comprise the consolidated statement of financial position as at 31 December 2019, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the period then ended, are derived from the audited financial report of The Hospital Research Foundation Incorporated for the year ended 31 December 2019.

In our opinion, the accompanying summarised financial statements are consistent, in all material respects, with the audited financial report, on the basis described in the summary.

Summary Financial Statements

The summarised financial statements do not contain all the disclosures required by Australian Accounting Standards and the financial reporting requirements of the Australian Charities and Not-for-profits Commission Act 2012. Reading the summarised financial statements and the auditor's report thereon, therefore, is not a substitute for reading the audited financial report and the auditor's report thereon.

Emphasis of mater – Subsequent event

We draw attention to Note 8 of the financial report, which describes the non-adjusting subsequentevent on the impact of the COVID-19 outbreak on the entity. Our opinion is not modified with respectto this matter.

The Audited Financial Report and Our Report Thereon

We expressed an unmodified audit opinion on the audited financial report in our report dated 13 May 2020.

Committee Members’ Responsibility for the Summarised Financial Statements

The Committee Members are responsible for the preparation of the summarised financial statements on the basis described in the summary.

Auditor's Responsibility

Our responsibility is to express an opinion on whether the summarised financial statements are consistent, in all material respects, with the audited financial report based on our procedures, which were conducted in accordance with Auditing Standard ASA 810 Engagements to Report on Summary Financial Statements.

BDO Audit (SA) Pty Ltd

Andrew Tickle Director

Adelaide, 13 May 2020


Head Office 60 Woodville RoadWoodville SA 5011 hospitalresearch.com.au

p (08) 8244 1100 fax (08) 8244 1200e [email protected]

together we’re fighting for better treatments and improved ... · south australians now and into...

Documents