Download - Jmf 2012 audit
Jamaica Medical Foundation Limited
Financial statements
October 31, 2012
Jamaica Medical Foundation Limited
Contents
Page
Independent auditors’ report 1
Statement of financial position as at October 31 3
Statement of income and accumulated surplus for year ended October 31 4
Statement of cash flows for year ended October 31 5
Notes to the financial statements 6
Additional information – Auditors’ report 12
Additional information – Detailed income and expenditure account 13
Additional information – Schedule of income and expenditure for the Prostate Cancer Research Fund 14
Independent auditors’ report
To the Members of
Jamaica Medical Foundation Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Jamaica Medical Foundation Limited,
which comprise the statement of financial position as at October 31, 2012, and the statement of
comprehensive income and accumulated surplus and statement of cash flows for the year then
ended, and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view
in accordance with the International Financial Reporting Standard for Small and Medium-sized
Entities (IFRS for SMEs) and with the requirements of the Jamaican Companies Act, and for such
internal control as management determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with International Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
Auditors’ Responsibility (Cont’d) We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of
Jamaica Medical Foundation Limited as at October 31, 2012, and of its financial performance and
cash flows for the year then ended in accordance with the International Financial Reporting
Standard for Small and Medium-sized Entities (IFRS for SMEs) and the requirements of the
Jamaican Companies Act..
Report on Other Legal and Regulatory Requirements
We have obtained all the information and explanations which, to the best of our knowledge and
belief, were necessary for the purposes of our audit.
In our opinion, proper accounting records have been kept, so far as appears from our examination
of those records, and the accompanying financial statements are in agreement therewith and give
the information required by the Jamaican Companies Act in the manner so required.
Kingston, Jamaica
May 15, 2013 Chartered Accountants
Jamaica Medical Foundation Limited
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Statement of financial position as at October 31
Note 2012 2011 $ $
Assets Non-current assets
Investments (3) 17,430,851 19,128,910
17,430,851 19,128,910
Current assets Receivables (4) 6,600 7,120 Taxation recoverable (5) 2,432,478 2,308,675 Cash and cash equivalents (6) 2,852,118 3,137,159
5,291,196 5,452,954
Total assets 22,722,047 24,581,864
Reserves Accumulated surplus 22,322,322 24,250,964
Total reserves 22,322,322 24,250,964
Fund
Prostate Cancer Research Fund (7) 329,825 266,275
Total fund 329,825 266,275
Current liabilities
Payables and accruals (8) 69,900 64,625
Total liabilities 69,900 64,625
Total fund and liabilities 399,725 330,900
Total reserves and liabilities 22,722,047 24,581,864
The notes on the accompanying pages 6 to 10 form an integral part of these financial statements. Approved for issue by the Board of Trustees on May 15, 2013 and signed on its behalf by: ____________________________ ________________________ Oliver E. Jones Lloyd A. Vermont, Snr.
Chairman Hon. Secretary
Jamaica Medical Foundation Limited
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Statement of income and accumulated surplus for year ended October 31
Note 2012 2011 $ $
Income Fund raising income – banquet - 2,036,000
Less: Related expenses - (1,528,695)
- 507,305 Other direct costs – donations for charitable medical expenses (415,725) (325,000)
Finance income (9) 1,416,734 1,528,206 Prostate Cancer Research Fund income – Donations 63,550 -
1,064,559 1,710,511 (Loss)/gain from changes in fair value of investments (2,325,561) 2,880,290 Foreign exchange gain/(loss) 54,011 (1,487)
Administrative and other expenses (658,101) (774,975)
(Deficit)/surplus for the year before transfer (1,865,092) 3,814,339 Transfer of Prostate Cancer Research Fund surplus (63,550) -
(Deficit)/surplus for the year (1,928,642) 3,814,339 Accumulated surplus at start of year 24,250,964 20,436,625
Accumulated surplus at end of year 22,322,322 24,250,964
The notes on the accompanying pages 6 to 10 form an integral part of these financial statements.
Jamaica Medical Foundation Limited
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Statement of cash flows for year ended October 31
2012 2011 $ $
Cash flows from operating activities: (Deficit)/surplus for the year (1,928,642) 3,814,339 Surplus from Prostate Cancer Research Fund 63,550 - Adjustments for: Loss/(gain) in value of investments 2,325,561 (2,880,290)
Interest and dividends from investments (Note 9) (1,416,734) (1,528,206)
(956,265) (594,157) Decrease in receivables - 50,000
Increase in payables and accruals 5,275 4,625
Net cash used in operating activities (950,990) (539,532)
Cash flows from investing activities: Dividends received 899,780 927,099 Interest received (net of withholding tax) 393,671 453,689
Increase in investments (627,502) (1,425,519)
Net cash provided by/(used in) investing activities 665,949 (44,731)
Net decrease in cash and cash equivalents (285,041) (584,263)
Cash and cash equivalents at beginning of year 3,137,159 3,721,422
Cash and cash equivalents at end of year (Note 6) 2,852,118 3,137,159
The notes on the accompanying pages 6 to 10 form an integral part of these financial statements.
Jamaica Medical Foundation Limited
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Notes to the financial statements
1. Identification and activities
The Jamaica Medical Foundation Limited (the Foundation) was incorporated under the Laws of Jamaica as a company limited by guarantee and not having a share capital. It is a charitable organisation supported by medical and private sector individuals and bodies. Through public information activities, the Foundation aims to improve medical knowledge, services and quality of care. The Foundation is domiciled in Jamaica with its principal place of business located at 3 Richmond Avenue, Kingston 10, Jamaica. The affairs of the Foundation are managed by a Board of Trustees and a related entity provides administrative and professional services. Except where otherwise stated these financial statements are expressed in Jamaican Dollars.
2. Summary of significant accounting policies
The financial statements are prepared in accordance with the International Financial
Reporting Standard for Small and Medium-Sized Entities (IFRS for SMEs) issued by the
International Accounting Standards Board (IASB). The significant accounting policies that
have been used in the preparation of these financial statements are summarised below. These
have been consistently applied for all the years presented.
a Management judgements and sources of estimation uncertainty
When preparing the financial statements management makes estimates and assumptions that affect the amounts reported in the financial statements. The actual results may differ from these estimates.
There were no critical judgements, apart from those involving estimation, that management made in the process of applying the Foundation’s accounting policies that have a significant effect on the amounts recognised in the financial statements.
The estimates and assumptions which have the most significant risk of causing a material adjustment to the carrying amounts of assets and liabilities relate to estimation of fair value of investments. Details of the estimation of fair value is shown in Note 2f.
b Income recognition
Income represents income from fund raising events and income from long-term and short-term investments. Income is measured with reference to the fair value of consideration received or receivable and is accounted for in the period to which it relates.
Jamaica Medical Foundation Limited
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c Financial instruments
A financial instrument is any contract that gives rise to both a financial asset in one entity and a financial liability or equity instrument in another entity. Financial assets and liabilities are recognised in the Foundation’s statement of financial position when it becomes a party to the contractual provisions of the instruments.
The financial instruments carried in the statement of financial position are: Financial assets:
Investments, receivables and cash and cash equivalents;
Financial liabilities: Payables and accruals.
The particular recognition methods adopted are disclosed in the respective accounting policies associated with each item.
d Cash and cash equivalents
Cash and cash equivalents consist of current and savings account balances, cash on hand and highly liquid short-term deposits with maturity dates of three (3) months or less on average, that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.
e Receivables
Receivables are initially recognised at transaction price and subsequently measured at amortised cost. A provision for doubtful debt is recognised when there is an indication that the receivable is impaired.
f Investments
Investments in quoted shares are initially recognised at cost, which includes transactions costs, and subsequently re-measured at fair value based on quoted bid prices. Gains and losses arising from changes in fair value of investments are recognised in surplus or deficit.
g Payables and accruals
Payables are initially recognised at transaction price and subsequently measured at amortised cost.
h Foreign currency
Transactions in foreign currencies are converted at the rates of exchange ruling at the dates of those transactions. Foreign currency balances are translated at the rates of exchange ruling at the end of the reporting period. Exchange differences as a result of fluctuations in exchange rates are reflected in surplus or deficit.
Jamaica Medical Foundation Limited
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3. Investments
Interest rate 2012 2011 % p.a. $ $
Pan Caribbean Financial Services Limited GOJ INV BD 2018/2019 BP 7.780 1,014,494 1,009,690 Barita Investments Limited GOJ VR 2013/2014 Series BA 7.655 4,057,046 4,038,145
Scotia Investments Jamaica Limited Caribbean Income Fund US$12,357
(2011 - US$11,780)
1,122,113 1,016,384 Quoted shares (Note 3i) 11,237,198 13,064,691
Total 17,430,851 19,128,910
3i. Quoted Shares
2012 2011
Number of shares
2012 $
Number of shares
2011 $
Carerras Limited 94,590 5,173,127 89,190 5,797,350 National Commercial Bank Jamaica Limited
104,037 2,100,507
100,337 2,908,770
Scotia Group Jamaica Limited
86,200 1,829,164
81,550 2,024,071
Jamaica Money Market Brokers Limited – 8.75% preference shares
667,000 2,134,400
667,000 2,334,500
Total 11,237,198 13,064,691
4. Receivables
2012 2011 $ $
Interest on short-term deposits: Pan Caribbean Financial Services Limited 5,394 6,842 Barita Investments Limited 1,206 278
Total 6,600 7,120
5. Taxation recoverable
i The Foundation was granted Charitable Organisation status in 1988 under Section 13(i) (q) of the Income Tax Act. In 1992 the Foundation was granted exemption from income tax under Section 12(h) of the Income Tax Act.
Taxation recoverable represents tax withheld on interest income earned by the
Foundation.
ii In light of the Foundation’s tax exempt status no provision for deferred tax is included
in these financial statements.
Jamaica Medical Foundation Limited
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6. Cash and cash equivalents
Interest rate
2012
2011
% p.a. $ $
Cash at bank - National Commercial Bank Jamaica Limited J$ Savings account 0.45 159,275 83,865 J$ Current account 12,653 100,365 *Prostate cancer – J$ Current account (Note 7) 320,127 256,577 Short-term deposits – NCB Capital Markets Limited 43,268 130,958 Pan Caribbean Financial Services Limited 4.6 2,140,083 2,503,723 Barita Investments Limited 2.5 – 4.3 176,712 61,671
Total 2,852,118 3,137,159
*Included in the funds of the Foundation at the end of the year is an amount of $9,698 (2011 – $9,698) due to the Prostate Cancer Research Fund.
7. Prostate Cancer Research Fund
The Foundation established the Prostate Cancer Research Fund to contribute to the Prostate Cancer Medical Research Study to be carried out in Jamaica in collaboration with the Jamaica Urological Society and the University Hospital of the West Indies. Movement on the Fund balance is as follows:
2012 2011 $ $
Balance at beginning of year 266,275 266,275 Donations received during the year 63,550 -
Balance at end of year 329,825 266,275
The above balance is represented by a designated bank account. (Note 6).
8. Payables and accruals
2012 2011 $ $
Accruals - Accounting fees 69,900 64,625
Total 69,900 64,625
9. Finance income
2012 2011 $ $
Interest income 516,954 601,107 Dividends 899,780 927,099
Total 1,416,734 1,528,206
Jamaica Medical Foundation Limited
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10. (Deficit)/surplus for the year
(Deficit)/surplus for the year is stated after charging/(crediting):
2012 2011 $ $
Key management compensation (Note 12) - - Dividends and interest income (Note 9) (1,416,734) (1,528,206)
11. Expenses by nature
Total fund raising, administrative and other expenses:
2012 2011 $ $
Fund raising expenses:
Venue - 815,588 Decoration - 102,107 Advertising - 96,453 Entertainment - 60,000 Public relations - 97,000 Printing – Flyers and tickets - 93,005
Other - 264,542
- 1,528,695
Other direct costs:
Donations for charitable medical expenses 415,725 325,000
415,725 325,000
Administrative and other expenses: Administrative and professional fees 50,900 45,500
Contributions 42,000 37,272 Public relations 122,394 403,500 Meeting expenses 111,749 157,385 Honorarium to auditors 200,000 -
Other 131,058 131,318
658,101 774,975
Total 1,073,826 2,628,670
Honorarium to auditors represents honorarium for the years ended October 31, 2008 to 2011.
12. Related party transactions The members of the Board of Trustees are volunteers (Note 1). No Trustee has received payment in respect of services rendered to the Foundation, other than by way of reimbursement of incidental expenses incurred in providing such services. The Trustees are referred to as “key management personnel”. (Note 10).
13. Employee benefits
The Foundation has no employees. A related entity provides administrative and
professional services to the Foundation, for which the Foundation pays an honorarium.
(Notes 1 & 11).
Jamaica Medical Foundation Limited
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14. Financial assets and liabilities by categories
i. Financial assets
ii Financial liabilities
15. Capital management The Foundation considers its capital to be its accumulated surplus. The Foundation’s financial objective is to generate a targeted operating surplus, in order to strengthen and provide for the future continuity of the Foundation, taking into account the various competitive risks. The Foundation’s Trustees review the financial position of the Foundation at regular meetings.
The Foundation is not subject to any externally imposed capital requirements.
2012 2011 $ $
Financial assets measured at fair value: Investments (Note 3) 17,430,851 19,128,910 Financial assets measured at amortised cost less impairment: Receivables 6,600 7,120 Cash and cash equivalents 2,852,118 3,137,159
Total 20,289,569 22,273,189
2012 2011 $ $
Financial liabilities measured at amortised cost: Payables 69,900 64,625
Total 69,900 64,625
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Additional information – Auditors’ report
To the Trustees of
Jamaica Medical Foundation Limited
On Additional Information
The additional information presented on pages 13 and 14 has been taken from the accounting records of the Foundation and has been subjected to the tests and other auditing procedures applied in our examination of the financial statements of the Foundation for the year ended October 31, 2012.
In our opinion, the said information is fairly presented in all material respects in relation to the
financial statements taken as a whole although it is not necessary for a fair presentation of the state
of the Foundation’s affairs as at October 31, 2012 or of the results of its operations or cash flows
for the year then ended.
Chartered Accountants
Kingston, Jamaica
May 15, 2013
Jamaica Medical Foundation Limited
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Additional information – Detailed income and expenditure account
2012 2011 $ $
Income Fund raising income – banquet - 2,036,000 Less: Related expenses - (1,528,695)
- 507,305 Other direct costs – donations for charitable
medical expenses
(415,725) (325,000) Interest and dividends from investments 1,416,734 1,528,206
1,001,009 1,710,511
Administrative and other expenses Meeting expenses 111,749 157,385 Accounting fees – current year 69,900 64,625 – prior year (550) 8,750 Contributions 42,000 37,272 Public relations 122,394 403,500 Printing, stationery and office expenses 10,000 10,000 Annual returns fees – current year 8,000 8,100 – prior years - (10,000) Bank charges and overdraft interest 43,708 49,843 Honorarium to auditors 200,000 - Administrative and professional fees 50,900 45,500
658,101 774,975
Surplus for the year 342,908 935,536
Jamaica Medical Foundation Limited
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Additional information – Schedule of income and expenditure for the Prostate Cancer Research Fund
2012 2011 $ $
Income
Donation 63,550 -
Surplus for the year 63,550 -
© Mair Russell Grant Thornton
Member firm of Grant Thornton International Ltd