ADVANCING EYE RESEARCH ANNUAL REPORToria.org.au/wp-content/uploads/2012/02/ORIA-Financials... · 2018-11-02 · Valuation Gains/(Losses) on available-for-sale financial assets (471,052)

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O R I AADVANCING EYE RESEARCHThe Ophthalmic Research Insitute of Australia

ANNUAL REPORT2017/18FINANCIAL STATEMENTS

2 2017/18 ANNUAL REPORT

FINANCIAL STATEMENTSIn accordance with a resolution of the directors, the directors submit herewith the financial statements of The Ophthalmic Research Institute of Australia for the year ended on 30 June 2018 and report as follows:

1. MEETINGS OF DIRECTORSDuring the financial year four meetings of directors were held. Attendances were:

Board Members Number Eligible to

AttendNumber Attended

Prof Stephanie Watson, NSW – Chair 4 4Prof Mark Gillies, NSW – Vice Chair 4 3Prof Richard Mills, SA – Honorary Secretary 4 2A/Prof Paul Healey, NSW – Honorary Treasurer 4 4Dr Fred Chen, WA 4 3Prof Jonathon Crowston, VIC – resigned 9 September 2017 2 1Dr Jennifer Fan Gaskin, VIC 4 3Dr Clare Fraser, NSW 4 4Prof Stuart Graham, NSW 4 1*Dr George Kong, VIC – joined 29 October 2017 2 2Dr Gerald Liew, NSW – resigned 28 October 2017 2 2Prof David Mackey, WA 4 4Prof Peter J McCluskey, NSW 4 3Prof Paul Mitchell, NSW – resigned 28 October 2017 2 2Dr John Males, NSW 4 2Dr Chameen Samarawickrama, NSW – joined 29 October 2017 2 2A/Prof Andrea Vincent, New Zealand 4 4Dr Andrew White, NSW 4 3

* A leave of absence was requested from, and provided by the Chair.

2. INDEMNIFYING OFFICER OR AUDITORThe company has not during or since the financial year in respect of any person who is or has been an officer or auditor of the company or a related body corporate indemnified or made any relevant agreement forindemnifying against a liability incurred as an officer including costs and expenses in successfully defending legal proceedings or paid or agreed to pay a premium in respect of a contract of insurance against a liability incurred as an officer for the costs or expenses to defend legal proceedings.

3. PRINCIPAL ACTIVITIESThe principal activity of the company in the course of the financial period was to provide funds for ophthalmic research. There has been no significant change in the nature of this activity during that period.

3FINANCIAL STATEMENTS

4. OPERATING RESULTS(1) OPERATING REVENUERevenue is mainly derived from investing in shares and interest bearing securities.

2017/18 2016/17Net dividend, interest and trust distribution income $ 616,435 $ 690,524Less Expenses 64,123 47,156

$ 552,312 $ 643,368 (2) OPERATING SURPLUSThe surplus of the company before other comprehensive income for the year ended 30 June 2018 was$1,007,176 (2017: $1,989,482). This amount is comprised of the following:

2017/18 2016/17Trust Fund $ 1,004,854 $ 2,011,277Administration 2,322 (21,795)

$ 1,007,176 $ 1,989,482

Other comprehensive income before grants and Director of Research allocation amounted to a profit of $230,155 (2017: profit of $568,764) and included a gain on rearrangement of investments of $701,207 (2017: loss of $99,081) and valuation loss on available-for-sale financial assets of $471,052 (2017: profit of $667,845).

5. REVIEW OF OPERATIONSThe surplus for the year was $1,007,176 compared to $1,989,482 in 2017. Distributions from legacies and donations decreased to $451,425 from $1,366,328 in 2017. During the financial year we received $359,775 being the transfer of funds from the Renensson Estate.The administrative operations of the institute for the year resulted in a surplus of $2,322 compared with a deficit of $21,795 in 2017.

6. DIVIDENDSThe company’s Articles of Association preclude the payment of dividends to any of its members.

7. STATE OF AFFAIRSThere has been no significant change in the state of affairs of the company occurring during the year.

8. LIKELY DEVELOPMENTSAt the date of this report, there are no known unusual developments that will affect the results of the company’s operations in subsequent financial years.

9. SHARE OPTIONSNo share options were issued during the year.

10. DIRECTORS’ BENEFITSWith the exception of the grants made or allocated to Professor Mark Gillies, Professor David Mackey and Dr George Kong, no director of the company has since the end of the previous financial year received or become entitled to receive a benefit not disclosed in the accounts as directors’ emoluments by reason of a contract made by the company or a related corporation with the directors, or with a firm in which he or she has a substantial financial interest.


STATEMENT OF FINANCIAL POSITIONFOR THE YEAR ENDED 30 JUNE 2018

NOTE 2017/18$

2016/17$

Current AssetsCash and Cash Equivalents 3 1,217,979 2,554,053Receivables 4 232,418 180,522Investments 5 11,328,512 9,486,908

12,778,910 12,221,484Non-Current AssetsPlant & Equipment 6 2,157 3,720Total Assets 12,781,067 12,225,204Current LiabilitiesPayables 7 466,478 490,637Provisions 8 - 23,310

466,478 513,947Net Assets 12,314,589 11,711,257EquityGeneral Fund 13 (a) - -Capital FundsResearch Fund 9 2,503,890 2,438,183Settled Funds 10 472,556 472,556Financial Assets Reserve 11 1,109,328 1,580,380Capitalised Profit on Re-arrangement of Investments, Capital Distributions & Transfers

12 7,396,293 6,695,085

11,482,067 11,186,204Retained Income- Available for grants 13 (b) 832,522 525,053Total Equity 12,314,589 11,711,257

The accompanying Notes form part of these financial statements.

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TRUST FUND STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 30 JUNE 2018

NOTE 2017/18$

2016/17$

IncomeDividends received from:Other Corporations 536,816 608,087Adjustment for imputation credits - (1,991)Total Dividends 536,816 606,096Interest received from:Other Entities 27,123 21,236Trust distributions received from:Other Entities 52,495 63,192The Richard and Ina Humbly Foundation 37,064 65,502ANZSRS ORIA Grant 50,000 -

703,498 756,026Legacies - Anselmi Estate• Ivy May Stephenson• Renensson Bequest• The Estate of The Late Mary H TildenSundry Income

-4,586

359,775 -

1,118

1,193,8403,265

-103,721

1,581Total Income for the Year 1,068,977 2,058,433ExpensesCommission Paid 64,123 47,156

64,123 47,156Surplus For The Year 1,004,854 2,011,277Other Comprehensive IncomeValuation Gains/(Losses) on available-for-sale financial assets (471,052) 667,845Profit/(Loss) on Re-arrangement of Investments 701,207 (99,081)Total other comprehensive income 230,155 568,764Surplus for the year before allocation 1,235,009 2,580,041Grants Allocated/made during the year 14 459,000 439,205Allocation to Director of Research - Victoria 15 175,000 203,000

634,000 642,205Total Comprehensive Income/(Loss) 601,009 1,937,836

Profit/(Loss) Attributable to Members of the Entity 370,854 1,369,072Total Other Comprehensive Income/(Loss) Attributable to Members of the Entity

230,155 568,764


FINANCIAL STATEMENTS


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ADMINISTRATION STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 30 JUNE 2018

NOTE 2017/18$

2016/17$

IncomeMembership Subscriptions 154,416 150,650Total Income 154,416 150,650ExpensesAccountancy Fees 19,214 31,451Auditors’ Remuneration 16 5,500 5,750Bank Charges 120 190Consulting Fees - 10,000Depreciation 1,562 2,997General Expenses 3,501 9,802IT & Webpage Expenses 866 1,912Insurance 6,655 2,164Printing & Stationery 5,222 5,771Staff Salaries 38,372 52,042Legal Fees 2,405 -Admin expenses – reimbursement to RANZCO 63,226 -Superannuation Contribution 17,695 9,269Salary Sacrificed Benefits - 25,200Provision Employee Benefits (23,310) (4,689)Meeting and Travelling Expenses 11,064 20,586Total Expenses 152,094 172,445Surplus/(Deficit) For The Year 13(a) 2,322 (21,795)Other Comprehensive Income - -Total Comprehensive Income 2,322 (21,795)




STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 30 JUNE 2018

NOTE 2017/18$

2016/17$

Cash Flows From Operating ActivitiesReceiptsDividends Received 571,155 570,258Interest Received 27,123 21,236Trust Distributions 88,190 127,461Legacies 364,361 1,300,826Other Revenue 1,118 3,572Member subscriptions - 150,650Contributions from the Eye Surgeons’ Foundation 100,000Contributions from ANZSRS, NSW Branch and Eye Surgery Foundation

222,850

PaymentsCommissions (64,123) (47,156)Research Grants Paid (609,452) (591,352)Payments to Director of Research - Victoria (203,000) (157,000)Other (122,848) (180,221)Net Cash (Used in)/Provided by Operating Activities 17 275,375 1,298,275

Cash Flows From Investing ActivitiesProceeds from Re-arrangement of Investments 3,307,440 551,493Payments for Property, Plant & Equipment - -Payments for Investments (4,918,889) (619,294)Net Cash Used in Investing Activities (1,611,449) (67,801)Net(Decrease)/Increase in Cash and Cash Equivalents (1,336,074) 1,230,474Cash and Cash Equivalents at 1 July 2017 2,554,053 1,323,579Cash and cash equivalents at 30 June 2018 3 1,217,979 2,554,053


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1. STATEMENT OF ACCOUNTING POLICIESThe financial statements are for the Ophthalmic Research Institute of Australia, incorporated and domiciled in Australia. The Ophthalmic Research Institute of Australia is a company limited by guarantee.

(A) BASIS OF PREPARATIONThe financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) and the Australian Charities and Not-for-profits Commission Act 2012.The accounting policies set out below have been consistently applied to all years presented, unless otherwise stated. The financial report has been prepared on an accruals basis and is based on historical costs and does not take into account changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair values of the consideration given in exchange for assets.The following is a summary of the significant accounting policies adopted by the company in the preparation of the financial report.

(B) INCOME TAXThe company is an approved research institute and is exempt from income tax.

(C) TRANSFERS TO CAPITAL FUNDS(i) Capital profits and losses on disposal of investments & capital distributions.

Realised capital profits and losses on disposal of investments are brought to account in the trust fund as profit/ (loss) on rearrangement of investments, however, these amounts are transferred to capital funds and do not form part of retained income available for grants.Capital Distributions and special dividends together with associated imputation credits recognised in the statement of comprehensive income are also transferred to the capital fund and do not form part of retained income available for grants.

(ii) General Research Capital FundTen percent of the net surplus of the General Fund including imputation credits are transferred to the General Research Capital Fund this financial year.

(iii) Allocation of Income to Each FundDuring the year ended 30 June 1993, the investments of the company were separated into the D.W. Research Fund and the General Fund in the ratio of 72% and 28% respectively. As the flow of investment and donation income to and from the two funds does not occur in the same proportion, the ratio of the D.W. Research Fund and the General Fund is no longer at 72% and 28%.Income from the General Fund which comprises of all funds except the D.W. Research Fund, is allocated as follows:Research Fund 10.0%Esme Anderson 51.4%G.J.Williams 8.9%B. Mitchell 8.9%Dame Ida Mann 12.5%R. & L. Lowe Research 8.3%

If and when further donations are received by specific fund(s) the allocation of future income will be distributed to each fund in accordance with its revised proportion to the General Fund.Fifty percent of the income derived from the D.W. Research Fund and its investments is allocated to the Director of Research Victoria.



(D) CASH AND CASH EQUIVALENTSFor the purpose of the statement of cash flows, cash and cash equivalents include cash on hand and at call deposits with banks.

(E) INVESTMENTSInvestments are carried at fair value. Changes in fair value will be held in an equity reserve until the asset is disposed, at which time the changes in fair value will be brought to account through the statement of comprehensive income.

(F) REVENUEInterest and dividends are recognised when received.Grants, donations and distributions income are recognised when received.

(G) GOODS AND SERVICES TAX (GST)All revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense.Receivables and payables in the statement of financial position are shown inclusive of GST.

(H) FINANCIAL INSTRUMENTSRecognition and Initial MeasurementFinancial instruments, incorporating financial assets and financial liabilities, are recognised when the entity becomes a party to the contractual provisions of the instrument.Financial instruments are initially measured at fair value plus transactions costs where the instrument is not classified as at fair value through profit or loss. Financial instruments are classified and measured as set out below.Classification and Subsequent Measurement(i) Loans and receivables

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

(ii) Held-to-maturity investmentsHeld-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the entity’s intention to hold these investments to maturity. They are subsequently measured at amortised cost using the effective interest rate method.

(iii) Available-for-sale financial assetsAvailable-for-sale financial assets are non-derivative financial assets that are either designated as such or that are not classified in any of the other categories. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.

(iv) Financial liabilitiesNon-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost using the effective interest rate method.

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

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

(I) IMPAIRMENT OF ASSETSAt each reporting date, the entity reviews the carrying values of its assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the statement of comprehensive income.Where it is not possible to estimate the recoverable amount of an individual asset, the entity estimates the recoverable amount of the cash-generating unit to which the asset belongs.

(J) ACCOUNTING POLICIESNew Accounting Standards for Application in Future PeriodsAASB 1058: Income of Not-for-Profit Entities (applicable to annual reporting periods beginning on or after 1 January 2019).This Standard is applicable when an entity receives volunteer services or enters into other transactions where the consideration to acquire the asset is significantly less than the fair value of the asset principally to enable the entity to further its objectives.The significant accounting requirements of AASB 1058 are as follows:• Income arising from an excess of the initial carrying amount of an asset over the related amount

being contributions by owners, increases in liabilities, decreases in assets and revenue should be immediately recognised in profit or loss. For this purpose, the assets, liabilities and revenue are to be measured in accordance with other applicable Standards.

• Liabilities should be recognised for the excess of the initial carrying amount of a financial asset (received in a transfer to enable the entity to acquire or construct a recognisable non-financial asset that is to be controlled by the entity) over any related amounts recognised in accordance with the applicable Standards. Income must be recognised in profit or loss when the entity satisfies its obligations under the transfer.

A private sector not-for-profit entity may elect to recognise volunteer services or a class of volunteer services as an accounting policy choice if the fair value of those services can be measured reliably, whether or not the services would have been purchased if they had not been donated. Recognised volunteer services should be measured at fair value and any excess over the related amounts (such as contributions by owners or revenue) immediately recognised as income in profit or loss.The transitional provisions of this Standard permit an entity to either: restate the contracts that existed in each prior period presented in accordance with AASB 108 (subject to certain practical expedients); or recognise the cumulative effect of retrospective application to incomplete contracts on the date of initial application. For this purpose, a completed contract is a contract or transaction for which the entity has recognised all of the income in accordance with AASB 1004: Contributions.Although the directors anticipate that the adoption of AASB 1058 may have an impact on the entity’s financial statements, it is impracticable at this stage to provide a reasonable estimate of such impact.AASB 2016-8: Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit EntitiesAASB 2016-8 (issued December 2016) inserts Australian requirements and authoritative implementation guidance for not-for-profit entities into AASB 9: Financial Instruments and AASB 15: Revenue from Contracts with Customers as a consequence of AASB 1058: Income of Not-for-Profit Entities.AASB 2016-8 mandatorily applies to annual reporting periods beginning on or after 1 January 2019. Earlier application is permitted, provided AASB 1058 is applied for the same period.



Creditors and Accruals (523) 18,033Grants Payable 292,001 269,604Director of Research - Victoria (refer note 15) 175,000 203,000

466,478 490,637

ReconciliationReconciliation of the carrying amount of plant and equipment at the beginning and end of the current and previous financial year:Carrying amount at beginning of year 3,720 6,717Additions - -Disposal of Equipment - -Less: Depreciation expense (1,562) (2,997)Carrying amount at end of year 2,157 3,720

7. PAYABLES

NOTE 2017/18$

2016/17$

General Account 793,734 2,046,907

D.W. Research Fund Account 424,245 507,1461,217,979 2,554,053

Sundry Debtors 232,418 180,522232,418 180,522

Shares in Listed Corporations & Other Securities 11,328,512 9,486,908Total Available-for-sale Financial Assets 11,328,512 9,486,908Total Investments 11,328,512 9,486,908

Office Equipment - at cost 13,151 13,151Less: Accumulated Depreciation (10,993) (9,431)

2,157 3,720

4. RECEIVABLES

5. INVESTMENTS

6. PLANT AND EQUIPMENT

2. MEMBERS’ GUARANTEEIf the company is wound up the Memorandum of Association states that each member is required to contribute a maximum of $10.00 each towards meeting any outstanding obligations of the company.

3. CASH AND CASH EQUIVALENTS

13

Employee Benefits - 23,310

NOTE 2017/18$

2016/17$

Anselmi EstateBalance 1 July 2017 290,979 290,979Allocation during year - -Transfer during year - -Balance 30 June 2018 290,979 290,979

Ivy May Stephenson EstateBalance 1 July 2017 30,376 30,376Allocation during year - -Transfer during year - -Balance 30 June 2018 30,376 30,376TOTAL 2,503,890 2,438,183

GeneralBalance 1 July 2017 2,116,828 914,702Allocation to Capital:- 10% Surplus & Imputation Credits & Other Legacies 65,707 42,507- Capitalised Bequests - 1,159,619Transfer from Capital:- Amount transferred to Income - -

Balance 30 June 2018 2,182,535 2,116,828

8. PROVISIONS

9. RESEARCH CAPITAL FUND


D.W. Research Funds 200,000 200,000Esme Anderson 124,326 124,326G.J. Williams 25,500 25,500B. Mitchell 26,023 26,023Dame Ida Mann (Est. 31/03/84) 56,707 56,707Ronald & Lois Lowe 40,000 40,000

472,556 472,556

10. SETTLED FUNDS

11. FINANCIAL ASSETS RESERVE

Balance 1 July 2017 1,580,380 912,535Revaluation increment/(decrement) (471,052) 667,845Balance 30 June 2018 1,109,328 1,580,380

Financial assets reserve records unrealised gains on revaluation of financial assets to fair value.


Balance 30/06/17

$

Allocation of Realised Profit/(Loss) on

Rearrangement of Investments & Capital

distributions &Transfers $

Balance 30/06/18

$Research FundGeneral 126,786 26,159 152,945Anselmi Estate 45,413 9,370 54,783Ivy May Stephenson 117 24 141D.W. Research Funds 4,975,585 345,685 5,321,270

Esme Anderson 893,699 182,738 1,076,437G.J. Williams 153,456 31,642 185,098B. Mitchell 151,520 31,641 183,161Dame Ida Mann 214,053 44,440 258,493Ronald & Lois Lowe 134,456 29,508 163,964

6,695,085 701,208 7,396,293

NOTE 2017/18$

2016/17$

(a) AdministrationAccumulated Deficits - 1 July 2017 - -Total Comprehensive Income 2,322 (21,795)Total available for appropriation 2,322 (21,795)Aggregate of amounts transferred from Administration 13 (a)

(2,322) 21,795Accumulated Deficits - 30 June 2018 - -

(b) Trust FundRetained income - 1 July 2017 525,053 379,902Total Comprehensive Income 370,854 1,369,072Total available for appropriation 895,907 1,748,974

Aggregate of amounts transferred to General/Capital FundsAdministration 13 (b) 2,322 (21,795)Research Trust (65,707) (1,202,126)Retained income - 30 June 2018 832,522 525,053

13. ACCUMULATED FUNDS

12. CAPITALISED PROFIT ON RE-ARRANGEMENT OF INVESTMENTS, CAPITAL DISTRIBUTIONS & TRANSFERS

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2017/18$

2016/17$

Dr Guei-Sheung Liu, A/Prof Alex Hewitt, A/Prof Bang Bui, Dr Anna 50,000*Dr Fred Chen 50,000Dr Anna King and Dr Amy Fon Li 50,000Dr Sandy Hung & Mrs Sandra Staffieri 50,000Dr Vivik Gupta & *Prof Stuart Graham 49,700Prof Justine Smith 49,850A/Prof R Max Conway, Dr Svetlana Cherepanoff, Dr Michael Giblin, Prof Richard Epstein, A/Prof Anthony Joshua, Dr Wenchan Wong & Ms Amparo Herrera-Bond

50,000

Dr Michele C Madigan & *Prof Peter J McCluskey 46,600Dr Srujana Sahebjada 49,105Dr Jia Jia Lek 47,650Dr Yuyi You & A/Prof Alexander Klistorner 48,450Dr Michelle Sun, A/Prof Andrea O’Connor & Dr John Wood 47,850Dr Isabel L Sanchez & A/Prof Ian Trounce 43,500 -Dr Thomas Edwards & Doron Hickey 49,500 -Dr Raymond Wong & Dr Samuel Lukowski 50,000 -

Dr Anthony Clark 50,000 -Prof David Mackey*& Ms Lisa Kearns 49,500 -Dr Flora Hui 46,500 -Prof N Di Girolamo 49,500Prof Robyn Jamieson, D Leszek Lisowski, A/Prof John Grigg, A/Prof Ulrike Grunert, A/Prof Michele Madigan

50,000

Prof Jamie Craig, Dr Mona Awadalla & A/Prof John Landers 47,500Dr Elin Gray, Dr Tim Isaacs & Prof Mel Ziman 49,500Dr Yu Xiang George Kong* 48,500Dr Weiyong Shen & Prof Mark Gillies* 50,000Sub total 584,000 539,205

14. GRANTS ALLOCATED / MADE DURING THE YEAR

Deduct contributions from:The Ophthalmic Research Institute of Australia - -Eye Surgeons Foundation (Formerly RANZCO Eye Foundation) 100,000RANZCO NSW Branch 75,000 -Eye Surgery Foundation 50,000

Sub total 125,000 100,000Net 459,000 439,205

* Grant received by director



2017/18$

2016/17$

Balance as at 1 July 2017 203,000 157,000Interest for the year 1,557 387Allocation for year 175,000 203,000

379,557 360,387Payment made to Director of Research 204,557 157,387Balance as at 30 June 2018 175,000 203,000

15. FUNDS ALLOCATED TO DIRECTOR OF OPHTHALMIC RESEARCH - VICTORIA

16. AUDITORS REMUNERATION

17. RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO RESULTSFOR YEAR

Financial Statements - Audit Service 5,500 5,750Other services - -

5,500 5,750

Net Surplus/(Deficit)- Trust Fund 601,009 1,937,836- Administration 2,322 (21,795)

603,331 1,916,041Depreciation 1,562 2,997Disposal of Equipment - -Provision for Employee Benefits (23,310) (4,689)Transfer from Capital to Contribute Towards Grants - -(Increase)/Decrease in Receivables (51,895) (37,072)Increase/(Decrease) in Creditors and Accrued Expenses (18,555) (4,091)Increase/(Decrease) in Grants Payable 22,397 (52,147)Increase/(Decrease) in allocation to Director of Research - Victoria (28,000) 46,000Valuation (Gains)/Losses on available-for-sale financial assets 471,053 (667,845)(Profit)/Loss on Rearrangement of Investments (701,207) 99,081Net Cash Provided by /(used in) Operating Activities 275,375 1,298,275

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18. DISCLOSURES ON DIRECTORS AND OTHER KEY MANAGEMENT PERSONNELDIRECTORSThe following directors received grants during the year. These are detailed at note 14.Professor Mark GilliesProfessor David MackeyDr George Kong

The names of the directors who have held office during the financial year are:Prof Stephanie Watson, NSW – ChairProf Mark Gillies, NSW – Vice ChairProf Richard Mills, SA – Honorary SecretaryA/Prof Paul Healey, NSW – Honorary TreasurerDr Fred Chen, WAProf Jonathon Crowston, VIC – resigned 9 September 2017Dr Jennifer Fan Gaskin, VICDr Clare Fraser, NSWProf Stuart Graham, NSWDr George Kong, VIC – joined October 2017Dr Gerald Liew, NSW – resigned 28 Oct 2017Prof David Mackey, WAProf Peter J McCluskey, NSWProf Paul Mitchell, NSW – resigned 28 Oct 2017Dr John Males, NSWDr Chameen Samarawickrama, NSW – joined October 2017A/Prof Andrea Vincent, New ZealandDr Andrew White, NSW

KEY MANAGEMENT PERSONNELOther Key Management Personnel include Executive Officer, Anne Dunn Snape, who left the organisation in October 2017.Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

KEY MANAGEMENT PERSONNEL COMPENSATIONKey Management Personnel has been taken to comprise the directors and one member of the executive management responsible for the day to day financial and operational management of the entity.

2017/18$

2016/17$

(a) Short-term employee benefits 38,372 77,242(b) Post-employment benefits 17,695 9,269(c) Other long-term benefits - -(d) Termination benefits - -(e) Share-based payment - -

56,067 86,511



19. FINANCIAL INSTRUMENTS(A) FINANCIAL RISK MANAGEMENT POLICIES

The entity’s financial instruments consist mainly of deposits with banks, local money market instruments, short- term investments, accounts receivable and payable.The entity does not have any derivative instruments at 30 June 2018.

(i) Treasury Risk ManagementAn investment committee consisting of Board members of the entity meet on a regular basis to analyse financial risk exposure and to evaluate treasury management strategies in the context of the most recent economic conditions and forecasts.The committee’s overall risk management strategy seeks to assist the entity in meeting its financial targets, whilst minimizing potential adverse effects on financial performance.Risk management policies are approved and reviewed by the Board on a regular basis. These include credit risk policies and future cash flow requirements.

(ii) Financial Exposures and Management RiskThe main risks the entity is exposed to through its financial instruments are interest rate risk, liquidity risk and credit risk.

Interest rate riskInterest rate risk is managed with a mixture of fixed and floating rates on investments.

Foreign currency riskThe entity is not exposed to fluctuations in foreign currencies.

Liquidity riskThe entity manages liquidity risk by monitoring forecast cash flows.

Credit riskThe maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements.The entity does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into by the entity.

Price riskThe group is not exposed to any material commodity price risk.

19

(B) F

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year

1 to

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2018 %

2017 %

2018 %

2017 %

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2017 %

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2017 %

2018 %

2017 %

2018 %

2017 %

Fina

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Cas

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1.40

1.75

1,217

,979

2,55

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17,9

792,

554,

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List

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vest

men

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N/A

N/A

--

--

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11,3

28,5

129,

486,

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11,3

28,5

129,

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Bill

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2,41

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0,52

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1,217

,979

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,930

9,66

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--

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466,

478

490,

637

466,

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Net

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17,9

792,

554,

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11,0

94,4

529,

176,

793

12,3

12,4

3211

,730

,846



(C) NET FAIR VALUESThe net fair values of listed investments have been valued at the quoted market bid price at balance date. For other assets and other liabilities the net fair value approximates their carrying value. No financial assets and financial liabilities are readily traded on organised markets in standardised form other than listed investments.The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the statement of financial position and in the notes to and forming part of the financial statements.

(D) SENSITIVITY ANALYSISInterest Rate RiskThe entity has performed a sensitivity analysis relating to its exposure to interest rate risk at balance date. This sensitivity analysis demonstrates the effect on the current year results and equity which could result from a change in this risk.

Interest Rate Sensitivity Analysis:At 30 June 2018, the effect on profit and equity as a result of changes in the interest rate, with all other variables remaining constant, would be as follows:

2017/18 Carrying Amount Interest Rate Risk

$ -1% Profit +1% Profit -1% Equity +1% EquityFinancial AssetsCash and Cash Equivalents 1,217,979 (12,178) 12,178 (12,178) 12,1782016/17 Carrying

Amount Interest Rate Risk

$ -1% Profit +1% Profit -1% Equity +1% EquityFinancial AssetsCash and Cash Equivalents 2,554,053 (25,541) 25,541 (25,541) 25,541

21

Note Level 1$

Level 2$

Level 3$

Total$

30 June 2018AssetsListed securities 5 11,328,512 - - 11,328,512Net fair value 11,328,512 - - 11,328,512

30 June 2017AssetsListed securities 5 9,486,908 - - 9,486,908Net fair value 9,486,908 - - 9,486,908

20. FAIR VALUE MEASUREMENTSFinancial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly;Level 3: unobservable inputs for the asset or liability.The following table shows the Levels within the hierarchy of financial assets and liabilities measured at fair value on a recurring basis at 30 June 2018 and 30 June 2017:

There were no transfers between Level 1 and Level 2 for assets measured at fair value during 2017 or 2016.

Listed SecuritiesFair values have been determined by reference to their quoted bid prices at the reporting date.

21. BENEFICIARY ENTITLEMENTThe company is a beneficiary of The Richard & Ina Humbley Foundation and has an entitlement to income from the foundation to be used for grants in support of research conducted into macular degeneration.The company accounts for this income on a cash basis.The income received for the year ended 30 June 2018 from the foundation was $37,064.



DIRECTORS’ DECLARATION

The directors of the company declare that:

1. the financial statements and notes as set out on pages 10-30:(a) comply with Accounting Standards and Australian Charities and Not-for-profits Commission Act 2012; and(b) give a true and fair view of the financial position as at 30 June 2018 and performance for the year ended on

that date of the company.2. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as

and when they become due and payable.

The declaration is made in accordance with a resolution of the board of Directors.On behalf of the Board.

Professor Stephanie Watson Associate Professor Paul Healey Director Director

Sydney, this 15th day of September 2018

23

AUDITORS’ REPORT

AUDITORS’ REPORT

24 2017/18 ANNUAL REPORT AUDITORS’ REPORT

O R I AADVANCING EYE RESEARCHThe Ophthalmic Research Insitute of Australia

FINANCIAL REPORT2017/18

Documents

ADVANCING EYE RESEARCH ANNUAL REPORToria.org.au/wp-content/uploads/2012/02/ORIA-Financials... · 2018-11-02 · Valuation Gains/(Losses) on available-for-sale financial assets (471,052)