2011 annual report

Annual Report 2011

Contents List

PA Research Foundation Overview 3

Chairman’s Report 4

Board Members 5

Research Funded in 2010-11 7

Highlights 9

Thank you and Acknowledgements 14

Corporate Governance 15

Financial Report 16

This document is available in electronic format at www.pafoundation.org.au PA Research Foundation 199 Ipswich Road WOOLLOONGABBA Q 4102 Phone 07 3176 2359 ISSN 1839-5554 © PA Research Foundation 2011

PA Research Foundation Annual Report 2010 – 2011 2

19 September 2011 Mr Geoff Wilson MP Minister for Health GPO Box 48 Brisbane Q 4001 Dear Minister I am pleased to present the Annual Report 2010 – 2011 for the PA Research Foundation. I certify that this Annual Report complies with:

• the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standards 2009, and

• the detailed requirements set out in the Annual Report Requirements for Queensland

Government Agencies Yours sincerely Robert Bowen Chairman


Research for Life The PA Research Foundation raises funds for groundbreaking, lifesaving research—to develop better diagnoses, treatments and preventions for some of Australia’s biggest health challenges. This research reduces human suffering and enhances quality of life; it reduces the burden on already stretched health care budgets, and fosters Australian ingenuity and industry. Each year provides the Foundation with new opportunities to fund exceptional research projects proposed by the many talented and dedicated clinicians, scientists, nursing and allied health professionals on the Princess Alexandra Hospital campus. Funds directly benefit the PA’s groundbreaking research projects in areas such as cervical cancer, prostate cancer, skin cancer, leukaemia, breast cancer, heart disease, immunology, kidney disease, diabetes, liver disease, transplantation and arthritis. All research funded by the Foundation goes through a rigorous selection process to ensure it is of genuine scientific merit, and does not replicate any other research anywhere in the world. All funds raised therefore contribute to the highest calibre research, to tackle some of the most challenging health problems facing us as a nation. Thanks to the donations of PA Hospital patients, staff, individuals, families, communities and businesses—millions of dollars have been raised—this research has improved the lives of literally millions of people around the world. The PA Research Foundation would like to take this opportunity to thank the PA Hospital for their ongoing support and commitment to the Foundation. As well as the many individuals, families and businesses who have supported our vital work in the past. We look forward to working with you further in the future, as we continue to foster research for life.


CHAIRMANS REPORT

The PA Research Foundation was established nearly thirty years ago to raise funds to support the Princess Alexandra Hospital. The foundation makes raising funds for medical research carried out on the PA Hospital campus our primary goal. During this financial year the Foundation has significantly increased the delivery of funds for this medical research. In a challenging end to the financial year, marked by some of the most severe natural disasters on record, our supporters helped us generate over $1.5million in revenue. Significant funds were raised from our donors, with major support from the Australian Leisure and Hospitality breast cancer campaign and of course form the Great Brisbane Duck Race which continues to be our feature event. I am delighted to report during the 2010-11 financial year we committed over $1.8 million to new research, including grants of $900,000 from the hospital's Private Practice Trust Fund. Past researchers funded by the Foundation have continued to see their projects approved for NHMRC and ARC research grants confirming our position as a vital support mechanism for promising early stage medical research. This year also saw the Foundation use our network of health and medical professionals to support a number of health promotion activities including a health check at the worksite of one of our corporate partners Mirvac, and a weekly nutrition spot on Ten News. In addition we combined with Triple M radio station to conduct our first Mandate which saw 40 men participate in a range of health checks to promote International Men’s Health Week. To each and every one of our donors, thank you for your continued contribution to the great work and achievements of our research community. To our growing team of corporate partners and sponsors, thank you on behalf of the Foundation for your participation in our community fundraising activities. In conclusion, I would like to thank our dedicated staff in the Foundation office and my fellow Board members for their time, dedication and guidance throughout the year. I look forward to further growth of our fundraising income, which will continue to support health and medical research that saves lives and improves the health of our community. Robert Bowen Chairman


Our Board

Mr Robert Bowen CHAIRMAN

Mr Bill Deutrom DEPUTY CHAIRMAN

Mr Les Watson

Dr Richard Ashby

Prof David Thiele AO Mr Richard Bowly Prof Ian Frazer

Mr Andrew Griffiths

Mr Michael Wille OAM

Mr Robert Vines

Mr Cameron Buchanan

Ms Heather Tyrell Company Secretary

Company Secretary Ms Heather Tyrell Honorary Solicitor Mr Michael Back Foundation Staff Damian Topp Chief Executive Officer Simone Plunkett Director – Marketing and Communications Jenny Cotter Office Manager Kerstin Petrick Accounts Manager Kylie Hay Marketing and Communications Coordinator Emily Harrington Fundraising and Communications Coordinator


Research Support Each year the Foundation invites applications from health researchers on the campus. Applications are then assessed by the Research Committee, an independent team of qualified medical professionals, and awarded based on merit and funds available. This year the foundation awarded $1.2 million worth of support. The philosophy of awarding research grants is to:

• Reward and further promote groups successful in securing competitive funding. • Attract new researchers to the campus. • Provide assistance to new researchers in the early stage of their research career and, • Promote the culture of collaboration and group work which is a major strength of the PA

research environment. • All applications are based on scientific quality, relative to the field of research, track record of

the researcher or research group and innovation.

PA Research Foundation Project Grants 2010 Dr Catherine Cheung Haematology, Division of Cancer Services Expression of novel growth factors in bone marrow of chronic lymphocytic leukaemai (CLL) $75 000 Ms Marion Mitchell Nursing Practice Development Unit Delirium and long-term cognitive impairment in ICU patients $75 000

PA Research Foundation Nursing & Allied Health Grants 2010 Ms Veronique Chachay Nutrition and Dietetics Department The role of resveratrol in the management of non-alcoholic fatty liver disease (NAFLD) $25 000 A/Prof Jennifer Fleming Occupational Therapy Evaluation of the utility of a newly developed virtual reality prospective memory (PM) task in individuals with traumatic brain injury (TBI) $25 000 A/Prof Pim Kuipers CFDHR Efficacy-oriented care: An intervention with brain injured patients, family members,nurses and allied health professionals $25 000

PA Research Foundation New Appointment Grant 2010 Dr Eduardo Pimenta Hypertension Unit Effect of adrenalectomy and spironolactone on the severity of obstructive sleep apnoea in patients with primary aldosteronism $75 000 A/Professor Andrew Barbour Department of Surgery "Biomarkers for Stage 111 Melanoma Recurrence" $75 000 Dr Katrina Campbell Department of Nutrition and Dietetics “The effect of dietary sodium on blood pressure and cardiovascular risk in patients with chronic kidney disease: a blinded randomised crossover trial'' $75 000 A/Professor Carmel Hawley


Department of Nephrology “The Utility of Serial NT-proBNP Monitoring For Predicting Cardia Outcomes in the Dialysis Population'' $75 000 Dr Ali Naderi Oncology,Division of Cancer Services "A pre-clinical study of combined Androgen Receptor and MEK inhibition as a targeted therapy in Estrogen Receptor negative Bre” $75 000 Dr Trisha O’Moore-Sullivan Department of Diabetes and Endocrinology “Use of aldosterone blockade to improve myocardial fibrosis in obesity” $75 000 A/Professor Benedict Panizza Queensland Skull Base Unit "Development of neurotropism in cutaneous squamous cell carcinoma of the head and neck" $75 000 Dr Elizabeth Powell Department of Gastroenterolgy and Hepatology “Non-invasive assessment of liver injury in subjects with fatty liver disease" $75 000 A/Professor Ian Scott Department of Internal Medicine “A new prescribing technology for older patients'' $75 000 In addition to the funding of research through the annual grants, the foundation provided over $600,000 worth of support to projects through direct fundraising programs. Some of this funding included a three year commitment to the Melanoma research of Professor Peter Soyer, purchase of a new fluorescence microscope microscope for the Australian Prostate Cancer Research Centre and supporting research fellows in breast cancer and rheumatoid arthritis research.


Highlights …

The Great Brisbane Duck Race 2010

They paddled, splashed and waddled their way over the course in record numbers resulting in a record fundraising effort of over $114,000 to support cancer research.

The winner of The Great Brisbane Duck Race, Nicola from Windsor said "I owe my life to the PA, the least I could do when I heard about the Duck Race was to buy a Flotilla of ducks to show my support, I never thought I would win". Nicola was almost in tears when we told the good news and said the timing could not have been more perfect as her old car has seen better days. Nicola says that she owed her life to a PA funded research project headed up at the PA Hospital by Professor Bryan Burmeister. She was part of the special 17 year international project which is the first of its kind to prove the effectiveness of radiation therapy in curing melanoma. It is now benefiting patients across the globe including Nicola. “I am a lucky duck in more ways than one, thank you so much to the PA and the invaluable research that they have helped make possible." She said The funds raised from The Great Corporate Duck Race Challenge and The Great Brisbane Duck Race will go to support cancer research in the areas of prostate cancer, skin cancer, leukaemia and breast cancer.

The success of the Great Brisbane Duck Race could not have been achieved without the outstanding efforts of the Sponsors. From the Presenting Sponsors Sci-Fleet Toyota who put up a brand new car as the first prize, followed by the second prize of $5000 cash thanks to Bankwest, to the record media coverage from Network 10, Classic Hits 4KQ and Quest Newspapers. Last but not least the people that make the race happen on the water, Waterway Constructions and Bowen Tug & Barge.


Highlights … Australian Leisure and Hospitality (ALH) Breast Cancer Fundraiser LH On Wednesday 18 August, ALH handed over a remarkable fundraising effort of $236,000 for Breast Cancer Research The ALH Breast Cancer Fundraiser is a partnership between ALH Group and the PA Research Foundation to help raise crucial funds during the month of July for a team of researchers who are working on finding better treatments, care and outcomes for women living with breast cancer. ALH Pubs across Queensland pledged their Friday nights to fundraise for the PA Research Foundation to support breakthrough breast cancer research projects at the PA.

The PA Research Foundation would like to thank Trevor Smith and the ALH Group and their patrons for their outstanding fundraising efforts for this campaign which will make a significant difference to the funding of vital breast cancer research projects at the PA. Hotel Care Month PA Toasts Queensland Hotels September was a month to raise your glass and make a “shout” for good health as the Queensland hotel industry raised more than $210,000 for medical research. More than 250 hotels and bottle shops across the state rallied together to raise funds for the PA Research Foundation and Mater Foundation to support health research. Since QHA Hotel Care began six years ago they have raised over ONE MILLION DOLLARS. Every cent donated by the hotels, bottle shops and their patrons has gone directly to the cause – to improve the health of the community throughout Queensland. A very special thanks to Queensland Hotels Association Justin O’Connor, Bob Singleton, Keri Crompton, the Sponsors and all the participating hotels and bottle shops throughout Queensland.


Highlights …

Great Brisbane Duck Race Team Winners PA High Tea – Scone Off

Smiddy’s Fun Run Breast Cancer Appeal Ambassador

Cancer Survivors Day Prostate Cancer Appeal Ambassador


Highlights … Educating the community One of several community health presentations that the Foundation organise to raise awareness of health issues in our community was the Mandate Health Check in conjunction with Triple M MANDATE – making a stand for men’s health PA Research Foundation in conjunction with Triple M were able to round up a group of Aussie males and put them through their health checks much to the delight of their partners. Forty men including swimming legend Duncan Armstrong, cricketer Matt Hayden, Channel Ten’s Bill McDonald, and Triple M’s Marto, Skip and Sully took part in the inaugural ‘Mandate’, which took place at the PA Hospital. The attendees were subject to skin cancer tests, BMI tests, blood tests and screening for diabetes and high blood pressure. Triple M’s Marto, himself a skin cancer survivor, said it was important that men knew a quick health check could save their life. “Aussie men are tough. They wear stubbies in winter, can build a house with one hand and are impervious to the ailments that send regular people to the doctor,” he said. “This all sounds like a laugh, until you hear the statistics: Aussie blokes will die, on average, six years earlier than women from cancer, heart attacks and strokes – and just as many men die of prostate cancer as women die of breast cancer. “Add to the mix heart disease, renal failure, bowel cancer, cardiovascular disease and of course skin cancer and it’s no wonder men turn up at emergency more times than they’ve forgotten anniversaries.” Close to 50 per cent of the participants recorded a BMI above their recommended healthy range, while a third of the group recorded a high score on their diabetes questionnaire. Over half of the men participating in the check up revealed they had not been to see a doctor in ten years stating they didn’t have time.


PA Research Foundation thanks you The Foundation greatly appreciates the dedicated support of the many individuals who make gifts to support health and medical research. Without you we could not continue to make a different to the health and well being of the community. The life saving research we support would not have made in to medical practice if it wasn’t for your generous and passionate support. Each year we are overwhelmed by the commitment of our donors who provide the PA Research Foundation with much needed funds to assist our researchers in finding life saving medical breakthroughs. Almost 4,000 people gave an individual gift to the Foundation and many of these people have supported the research work of the foundation for many years. On behalf of the Foundation board, the staff team and our researchers, we wish to extend our heart felt appreciation to the many people who have given a donation of all monetary value. Our success is your success. Research today! Saving lives tomorrow! Our Volunteers We would like thank our kind hearted and dedicated volunteers who have donated their time to support us throughout the year. They have helped us tremendously by assisting in fundraising events, running of the PA Research Foundation’s information booth and providing us with general assistance whenever we need it most. We would also like to acknowledge and thank all of the generous Suncorp Bank and Great Brisbane Duck Race volunteers who donated a day’s work to offer their services at various fundraising events and assisted with general administration duties. As we do not always have the necessary funds to hire permanent staff for specific events and duties we rely heavily on the members of the community to donate their time to assist us in furthering our cause. We greatly appreciate our volunteer’s time and commitment that they have so generously given to us. Our Corporate Partners Our success is also due to a number of strong corporate partnerships with businesses who share our commitment to making health and medical research possible. Special thanks to Australian Leisure and Hospitality, Australian Liquor Marketers, Queensland Hotel Association, Spirit Hotels, Mirvac, Austereo, 4KQ, Network Ten, Quest Community Newspapers, Sci-Fleet Toyota, Bankwest, Results Web Design, Fergies Print and Mail


Corporate Governance The PA Research Foundation is a statutory body incorporated under the Hospital Foundations Act 1982 (QLD). As a statutory body the Foundation is subject to the provisions of the Financial Accountability Act 2009 (QLD). The Foundation is audited annually by external auditors representing the Queensland Audit Office and the Auditor General. The Foundation is governed by a voluntary Board which is responsible for the overall strategic direction of the Foundation, overseeing its operations and establishing policies and procedures. The Foundation is endorsed by the Australian Taxation Office as an Income Tax Exempt Charity (ITEC) and is a Deductible Gift Recipient (DGR) under the Income Tax Assessment Act 1997 (Cth). It is endorsed for GST concessions under A New Tax System (Goods and Services Tax) Act 1999 (Cth) and it is exempted under the Fringe Benefits Tax Assessment Act 1986 (Cth). The Role of the Board The Board and management have been entrusted with the responsibility of ensuring that monies provided by donors, sponsors and the general public are effectively and efficiently managed. Board members serve in a voluntary capacity and therefore receive no fees for their services on the Board or Committees. The role of the Board includes:

• Maintaining high levels of accountability to our stakeholders and external regulators

• Monitoring the performance of the CEO

• Raising organisational awareness of the external environment

• Ensuring compliance with statutory, financial, social and corporate governance responsibilities

• Providing strategic direction and developing, examining and approving strategies, policies, plans and budgets

• Monitoring risk and ensuring the presence of adequate risk management controls and reporting procedures

• Ensuring the Foundation acts legally, ethically, responsibly and openly

Executive Management The Board delegates responsibility for implementing strategies approved by the Board and day-to-day management to the Chief Executive Officer, who in turn is accountable to the Board.


PA RESEARCH FOUNDATION FINANCIAL STATEMENTS 2010-11

Contents Page No. Statement of Comprehensive Income 2 Statement of Financial Position 3 Statement of Changes in Equity 4 Statement of Cash Flows 5 Notes To and Forming Part of the Financial Statements 6 Management Certificate 27 General Information These financial statements cover the PA Research Foundation. The PA Research Foundation is established by Order in Council under the Hospitals Foundations Act 1982 and is a statutory body within the meaning given in the Financial Accountability Act 2009. In accordance with the provisions of the Financial Accountability Act 2009 and other prescribed requirements, these statements have been prepared: • To provide an accounting for the custody and management of moneys and resources under the

control of the PA Research Foundation; and • To disclose the results of operations of the PA Research Foundation during the year and to

indicate the financial position of the PA Research Foundation at the end of the year. The principal place of business of the PA Research Foundation is: Ground Floor, Building 1 Princess Alexandra Hospital 199 Ipswich Road WOOLLOONGABBA QLD 4102 For information in relation to the Foundation's financial statements please call (07) 3176-2359, email [email protected] or visit the Foundation’s Internet site www.pafoundation.org.au . Amounts shown in these financial statements may not add to the correct sub-totals or totals due to rounding.


PA RESEARCH FOUNDATION STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2011

Notes 2011 2010

$ $

INCOME FROM CONTINUING OPERATIONS REVENUE

Bequests and Donations

771,311

891,728 Functions, Special Events and Other Fundraising

521,765

130,724 Interest Revenue

165,663

127,077

Other Revenue 2

140,000

171,149

Total Income from Continuing Operations

1,598,739

1,320,678

EXPENSES FROM CONTINUING OPERATIONS

Employee Benefits Expense 351,173 321,784

Fundraising Expenses 210,273 189,571

Administration 51,747 51,032

Audit Fee - Audit of Accounts 13,000 18,000

Research Grants Paid 989,259 396,011

Total Expenses from Continuing Operations

1,615,452 976,398

Operating Result from Continuing Operations

(16,713)

344,280 Total Comprehensive Income

(16,713)

344,280 This statement should be read in conjunction with the accompanying notes.


PA RESEARCH FOUNDATION STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2011

Notes 2011 2010

$ $

CURRENT ASSETS

Cash and Cash Equivalents 3 2,823,316 2,651,328

Receivables 4 88,267 117,937

Inventories 15,024 10,840

Total Current Assets

2,926,607

2,780,105

TOTAL ASSETS

2,926,607

2,780,105

CURRENT LIABILITIES

Payables 5 213,164 49,390

Accrued Employee Benefits 6 18,464 19,023

Total Current Liabilities

231,628

68,413

TOTAL LIABILITIES

231,628

68,413 NET ASSETS

2,694,979

2,711,692

EQUITY

Accumulated Surplus 2,694,979 2,711,692

TOTAL EQUITY

2,694,979

2,711,692

This statement should be read in conjunction with the accompanying notes.


PA RESEARCH FOUNDATION STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2011

Accumulated Surplus TOTAL

2011 2010 2011 2010

$ $ $ $

Balance as at 1 July 2010 2,711,692 2,367,412 2,711,692

2,367,412

Operating Result from Continuing Operations (16,713) 344,280 (16,713) 344,280

Balance as at 30 June 2011 2,694,979 2,711,692 2,694,979

2,711,692 This statement should be read in conjunction with the accompanying notes


PA RESEARCH FOUNDATION STATEMENT OF CASH FLOWS


Note 2011 2010

$ $

Cash flows from operating activities Inflows:

Receipts from Donations, Bequests and other Fundraising

1,338,526 973,039

Interest received 153,075 123,760

Other revenue

141,811 175,220

GST input tax credits from ATO 97,170 24,031

GST collected from customers Outflows:

18,174 11,558

Supplies and services (302,960) (249,611)

Employee expenses (351,731) (320,181)

Research grants paid (811,959) (396,011)

GST paid to suppliers (110,118) (45,106)

Net Cash Provided by/(used in) Operating Activities

8a

171,988

296,699

Net Increase/(Decrease) in Cash Held

171,988

296,699

Cash and cash equivalents at beginning of financial year

2,651,328

2,354,629

Cash and cash equivalents at end of financial year

8b

2,823,316

2,651,328

These statements should be read in conjunction with the accompanying notes.


PA RESEARCH FOUNDATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2011 Note 1: Summary of Significant Accounting Policies Note 2: Other Revenue Note 3: Cash and Cash Equivalents Note 4: Receivables Note 5: Payables Note 6: Accrued Employee Expenses Note 7: Key Executive Management Personnel Note 8: Reconciliation of Operating Surplus to Net Cash from Operating Activities Note 9: Contingencies Note 10: Commitments Note 11: Financial Instruments Note 12: Related Parties



FOR THE YEAR ENDED 30 JUNE 2011 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Statement of Compliance and Basis of Preparation The PA Research Foundation has prepared these financial statements in compliance with section 43 of the Financial and Performance Management Standard 2009. These financial statements are general purpose financial statements, and have been prepared on an accrual basis in accordance with Australian Accounting Standards and Interpretations. In addition, the financial statements comply with Treasury's Minimum Reporting Requirements for the year ending 30 June 2011, and other authoritative pronouncements. With respect to compliance with Australian Accounting Standards and Interpretations, the PA Research Foundation has applied those requirements applicable to not-for-profit entities, as the PA Research Foundation is a not-for-profit statutory body within the meaning given in the Financial Accountability Act 2009. Except where stated, the historical cost convention is used. (b) Cash and Cash Equivalents For the purposes of the Statement of Financial Position and the Statement of Cash Flows, cash assets include all cash and cheques receipted but not banked at 30 June as well as deposits at call with financial institutions. It also includes term deposits with short periods to maturity that are readily convertible to cash on hand at the PA Research Foundation’s or issuer's option and that are subject to a low risk of changes in value. (c) Receivables Trade and other debtors are recognised at the amounts due at the time of sale or service delivery i.e. the agreed purchase/contract price. Settlement of these amounts is required within 30 days from invoice date. The collectability of receivables is assessed periodically with allowance being made for impairment. All known bad debts were written-off as at 30 June. (d) Inventories Inventories held for sale are valued at the lower of cost and net realisable value. Cost is assigned on a weighted average basis and includes expenditure incurred in acquiring the inventories and bringing them to their existing condition. Expenses associated with marketing, selling and distribution are deducted to determine net realisable value.



FOR THE YEAR ENDED 30 JUNE 2011 (e) Property, Plant & Equipment Items of property, plant and equipment with a cost or other value equal to or in excess of the following thresholds are recognised for financial reporting purposes in the year of acquisition:

Buildings and Infrastructure $10,000 Land $1

Other (including heritage & cultural) $5,000 Items with a lesser value are expensed in the year of acquisition. There were no assets held as at 30 June 2011. (f) Revenue Revenue from fundraising activities, special events, functions and donations are recognised as income when received. The amount and timing of receipts is dependent on a number of fundraising activities including direct mail donations, personal and corporate donations and special events. Revenue from services rendered is recognised and sale of goods are recognised as other revenue when the revenue has been earned. Interest revenue is recognised on an accruals basis at the interest rate applicable to the financial assets.

(g) Service provided by Princess Alexandra Hospital

Contributions of services are recognised only if the services would have been purchased if they had not been donated and their fair value can be measured reliably. Where this is the case, an equal amount is recognised as revenue and an expense.

(h) Payables Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed purchase/contract price, gross of applicable trade and other discounts. Amounts owing are unsecured and are generally settled on 30 day terms. (i) Employee Benefits Employer superannuation contributions, annual leave levies and long service leave levies are regarded as employee benefits. Payroll tax and workers' compensation insurance are a consequence of employing employees, but are not counted in an employee's total remuneration package. They are not employee benefits and are recognised separately as employee related expenses.



FOR THE YEAR ENDED 30 JUNE 2011 (i) Employee Benefits (cont’d) Wages, Salaries and Sick Leave Wages and salaries due but unpaid at reporting date are recognised in the Statement of Financial Position at the current salary rates. For unpaid entitlements expected to be paid within 12 months, the liabilities are recognised at their undiscounted values. Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised. As sick leave is non-vesting, an expense is recognised for this leave as it is taken. Superannuation Employer superannuation contributions due but unpaid at reporting date are recognised in the Statement of Financial Position at the current superannuation rate. Key executive management personnel and remuneration Key executive management personnel and remuneration disclosures are made in accordance with the section 5 Addendum (issued in May 2011) to the Financial Reporting Requirements for Queensland Government Agencies issued by Queensland Treasury. The Key executive management personnel and remuneration are disclosed in Note 7. Remuneration of Board Members

No Board Member received or was entitled to receive any fees or other benefits during the year. Long Service Leave All employees are entitled to long service leave under their employment agreements. During the reporting period no employee was eligible to receive a long service leave payment.



FOR THE YEAR ENDED 30 JUNE 2011 (j) Research Grants Paid Research grants awarded are expensed in the period in which they are paid or invoiced. Grants approved by the Board which remain unpaid at balance date are recorded as Commitments. Refer also to Note 10 Commitments. (k) Taxation The Foundation is a charitable institution exempt from Income Tax. The Foundation has been endorsed by the Commissioner of Taxation as an income tax exempt charity pursuant under Subdivision 50-B of the Income Tax Assessment Act 1997. The Foundation is exempted from Fringe Benefits Tax under section 123D of the Fringe Benefits Tax Assessment Act 1986. (l) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of 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 expense. Receivables and payables in the statement of financial position are shown inclusive of GST (m) Provisions

Provisions are recorded when the Foundation has a present obligation, either legal or constructive as a result of a past event. They are recognised at the amount expected at the reporting date for which the obligation will be settled in a future period. Where the settlement of the obligation is expected after 12 or more months, the obligation is discounted to the present value using an appropriate discount rate.

There were no Provisions as at June 2011.

(n) Judgements and assumptions The preparation of financial statements necessarily requires the determination and use of certain critical accounting estimates, assumptions, and management judgements that have that potential to cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Such estimates, judgements and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods as relevant. Estimates and assumptions that have a potential significant effect are outlined in the following financial statement note: Contingencies – note 9



FOR THE YEAR ENDED 30 JUNE 2011 (o) Rounding and Comparatives Amounts included in the financial statements are in Australian dollars and have been rounded o the nearest $1 unless disclosure of the full amount is specifically required. Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period. (p) Issuance of Financial Statements The financial statements are authorised for issue by the Chief Executive Officer and the Chairman at the date of signing the Management Certificate. (q) Financial Instruments Recognition Financial assets and financial liabilities are recognised in the Statement of Financial Position when the Foundation becomes party to the contractual provisions of the financial instrument. Classification Financial instruments are classified and measured as follows: - Cash and cash equivalents - held at fair value through profit or loss - Receivables - held at amortised cost - Held to maturity investment - held at amortised cost - Payables - held at amortised cost The Foundation does not enter into transactions for speculative purposes, or for hedging. Apart from cash and cash equivalents, the Foundation holds no financial assets classified at fair value through profit or loss. All other disclosures relating to the measurement and financial risk management of financial instruments held by the Foundation are included in Note 11 (r) New and Revised Accounting Standards AASB 9 Financial Instruments (December 2010) and AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128,131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127] become effective from reporting periods beginning on or after 1 January 2013. The main impacts of these standards on the PA Research Foundation are that they will change the requirements for the classification, measurement and disclosures associated with financial assets. Under the new requirements, financial assets will be more simply classified according to whether they are measured at either amortised cost or fair value. Pursuant to AASB 9, financial assets can only be measured at amortised cost if two conditions are met. One of these conditions is that the asset must be held within a business model whose objective is to hold assets in order to collect contractual cash flows. The other condition is that the contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.



FOR THE YEAR ENDED 30 JUNE 2011 (s) New and Revised Accounting Standards (cont’d) On initial application of AASB 9, the PA Research Foundation will need to re-assess the measurement of its financial assets against the new classification and measurement requirements, based on the facts and circumstances that exist at that date. Assuming no change in the types of transactions the PA Research Foundation enters into, it is not expected that any of the foundation's financial assets will meet the criteria in AASB 9 to be measured at amortised cost. Therefore, as from the 2013-14 financial statements, all of the foundation's financial assets will be required to be classified as "financial assets required to be measured at fair value through profit or loss". The same classification will be used for net gains/losses recognised in the Statement of Comprehensive Income in respect of those financial assets. In the case of the foundation's receivables, the carrying amount is considered to be a reasonable approximation of fair value. The most significant impact on the PA Research Foundation of the new measurement requirements is that the "held to maturity" investment described in notes 1(q), 1(v), and 11 will need to be measured at fair value as at 1 July 2013. In addition, that investment will no longer be classified as "held to maturity", as explained above. The PA Research Foundation is not yet able to predict what the fair value of this investment will be at that date. The difference between the carrying amount of this investment and the fair value as at 1 July 2013 will be recognised as an adjustment to the balance of Accumulated Surplus as at 1 July 2013. In respect of this change, the 2013-14 financial statements will need to disclose a comparison between the previous measurement classification and carrying amount as at 30 June 2013 and the new classification and fair value amount as at 1 July 2013. The PA Research Foundation plans to recognise subsequent changes in the fair value of that investment in the annual operating result. AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements [AASB 1, 2, 3, 5, 7, 8, 101, 102, 107, 108,110, 111, 112, 116, 117, 119, 121, 123, 124, 127, 128, 131, 133, 134, 136, 137, 138, 140, 141, 1050 & 1052 and Interpretations 2, 4, 5, 15, 17, 127, 129, & 1052] apply to reporting periods beginning on or after 1 July 2013. AASB 1053 establishes a differential reporting framework for those entities that prepare general purpose financial statements, consisting of two tiers of reporting requirements – Australian Accounting Standards (commonly referred to as “tier 1”), and Australian Accounting Standards – Reduced Disclosure Requirements (commonly referred to as “tier 2”). Tier 1 requirements comprise the full range of AASB recognition, measurement, presentation and disclosure requirements that are currently applicable to reporting entities in Australia. The only difference between the tier 1 and tier 2 requirements is that tier 2 requires fewer disclosures than tier 1. AASB 2010-2 sets out the details of which disclosures in standards and interpretations are not required under tier 2 reporting.



FOR THE YEAR ENDED 30 JUNE 2011 (s) New and Revised Accounting Standards (cont’d) Pursuant to AASB 1053, public sector entities like the PA Research Foundation may adopt tier 2 requirements for their general purpose financial statements. However, AASB 1053 acknowledges the power of a regulator to require application of the tier 1 requirements. In the case of the PA Research Foundation, the Treasury Department is the regulator. Treasury Department has advised that its policy decision is to require all departments to adopt tier 1 reporting requirements. In compliance with Treasury's policy which prohibits the early adoption of new or revised accounting standards unless Treasury approval is granted, the PA Research Foundation has not early adopted AASB 1053. All other Australian accounting standards and interpretations with future commencement dates are either not applicable to the PA Research Foundation’s activities, or have no material impact on the department.




2011

$ 2010

$ 2. OTHER REVENUE

Grants rescinded - 72,500

Commission Vending Machines 48,131 55,365

Fee Administrating Grants 25,000 -

Sale of Merchandise 13,961 3,623

Income from Critical Care Course 52,908 -

Income from Cognitive Care Course - 39,661

140,000

171,149

3. CASH AND CASH EQUIVALENTS

Cash on Hand and at Bank 63,108 94,585

At Call Deposits 690,650 1,130,272

Fixed Term Deposits 2,069,558 1,426,471

2,823,316

2,651,328

4. RECEIVABLES

Interest Accrued 51,845 39,257

Bequests - 46,821

Trade and Other Debtors

18,742 20,676

GST Receivable 17,680 11,183

88,267

117,937

5. PAYABLES

Trade and Other Creditors 7,607 15,565

Research Grants payable 140,030 -

Accruals 65,527 33,825

213,164

49,390




2011 $

2010 $

6. ACCRUED EMPLOYEE BENEFITS

Wages outstanding 6,320 3,632

Annual Leave Entitlements 12,144 15,391

18,464 19,023

Number of Employees at year end 6 5

7. KEY EXECUTIVE MANAGEMENT PERSONNEL a) Key Executive Management Personnel The following details for key executive management personnel include those positions that had authority and responsibility for planning, directing and controlling the activities of the PA Research Foundation during 2010-11.

Current Incumbents

Position

Responsibilities

Contract

classification and appointment

authority

Date appointed to position

(Date resigned from position)

Chief Executive Officer

• strategic planning • operational planning • budget development • human resource

management • business development

Individual agreement

appointed by the board

Appointed 21 March 2011

Chief Executive Officer

(previous)

As above

As above

Appointed 1 February 2008

(resigned 31 January 2011)



FOR THE YEAR ENDED 30 JUNE 2011 b) Remuneration Remuneration for all employees of the PA Research Foundation is by individual agreement. The remuneration and other terms of employment for the key executive management personnel are specified in employment contracts. Remuneration packages for key executive management personnel comprise the following components:- ● Short term employee benefits which include:

o Base - consisting of base salary, allowances and leave entitlements paid and provided for the entire year or for that part of the year during which the employee occupied the specified position. Amounts disclosed equal the amount expensed in the Statement of Comprehensive Income.

o Non-monetary benefits – consisting of fringe benefits tax applicable to the benefit. ● Long term employee benefits include long service leave accrued. ● Post employment benefits include superannuation contributions. ● Redundancy payments are not provided for within individual contracts of employment. Contracts of employment provide only for notice periods or payment in lieu of notice on termination, regardless of the reason for termination. ● No performance bonuses are currently part of any employment agreements. Total fixed remuneration is calculated on a ‘total cost’ basis and includes the base and non-monetary benefits, long term employee benefits and post employment benefits. 1 July 2010 – 30 June 2011

Short Term Employee Benefits

Long Term Employee Benefits

Post Employment

Benefits

Termination Benefits

Total Remuneration Position

(date resigned if applicable) Base

$’000

Non-Monetary Benefits

$’000

$’000 $’000 $’000 $’000

Chief Executive Officer 34

- - 3 -

37

Chief Executive Officer (resigned 31 January 2011)

80 - - 6 - 80



FOR THE YEAR ENDED 30 JUNE 2011 b) Remuneration (cont’d) 1 July 2009 – 30 June 2010

Short Term Employee Benefits

Long Term Employee Benefits

Post Employment

Benefits

Termination Benefits

Total Remuneration Position

(date resigned if applicable) Base

$’000

Non-Monetary Benefits

$’000

$’000 $’000 $’000 $’000

Chief Executive Officer 120 - - 9 -

129

c) Performance payments No performance payments were made in either the 2010-11 or 2009-10 financial years.




8. STATEMENT OF CASH FLOWS

2011 $

2010 $

(a) Reconciliation of Cash Flows from Operations with Surplus (Deficit):

Surplus (Deficit) from Operations (16,713) 344.280

Decrease/(Increase) in Receivables 29,668 (57,735)

Decrease/(Increase) in Inventory (4,183) (10,840)

Increase/(Decrease) in Payables 163,775 16,045

Increase/(Decrease) in Employee Benefits (559) 4,949

Net Cash Provided by (Used in) Operating Activities

171,988

296,699

(b) For the purpose of the Statement of Cash Flows, Cash Held includes Cash at Bank and At Call, as follows:

Cash at Bank and on Hand 63,108 94,585

At Call Deposits and Fixed Term Deposits 2,760,208 2,556,743

2,823,316 2,651,328



FOR THE YEAR ENDED 30 JUNE 2011 9. CONTINGENCIES The Foundation has established a fund with the Queensland Community Foundation (QCF) for the purposes of generating future bequests and donations. Contributions to QCF are held in trust and invested in perpetuity with net income distributed to the PA Research Foundation in accordance with QCF Declaration of Trust. The most recent available balance of the fund was $19,058 (2010:$17,134) at 30 June 2011 of which $20,000 was contributed by the PA Research Foundation as an initial deposit prior to 2009-10. The difference in the value of the fund is contributed to the effects of the Global Financial Crisis. The Foundation expects that earnings for the 2010-11 financial year will be brought to account during the financial year ending 30 June 2012. As at the 30 June 2011 there are no indications as to what these earnings will be. There were no contingent liabilities of any significance at balance date. 10. COMMITMENTS Research Grants Research Grants awarded by the PA Research Foundation are recognised as a liability on receipt of an approved invoice for the research carried out. The grants approved by the Board which remain unpaid at balance date are recorded as Commitments. At balance date of 30 June 2011 the outstanding grants commitment was $495,000 (2010 $400,000). Research Grant Commitments

2011 $

2010 $

Research grant commitments inclusive of anticipated GST, committed to provide at reporting date, but not recognised in the accounts are payable as follows:

Not later than one year

395,000 400,000

Later than one year and not later than five years

100,000 -

Later than five years

TOTAL

495,000

400,000



FOR THE YEAR ENDED 30 JUNE 2011 Funds for Tied Projects As part of general fundraising operations the PA Research Foundation raises funds to support a particular project or area of the PA Hospital Campus. Donations, grants or other fundraising income generation by these activities are reported separately. This supports the foundation’s commitment to transparency in allocating donations received for the purpose they were given. The funds for tied projects commitment as at 30 June 2011 was $1,081,862 (2010 $1,138,815). Tied Projects Funds

2011 $

2010 $

Tied Fund commitments inclusive of anticipated GST, committed to provide at reporting date, but not recognised in the accounts are payable as follows:

Not later than one year

320,000 250,000

Later than one year and not later than five years

761,862 888,815

Later than five years

TOTAL

1,081,862

1,138,815




11. FINACIAL INSTRUMENTS (a) Categorisation of financial instruments The Foundation has the following categories of financial assets and financial liabilities: Category Note 2011 2010 $ $

Financial Assets Cash and cash equivalents 3 2,823,316 2,651,328 Receivables 4 88,267 117,937 Total 2,911,583 2,769,265 Financial Liabilities Payables 5 213,164 49,390 Total 213,164 49,390 (b) Financial risk management The PA Research Foundation’s activities expose it to a variety of financial risks - credit risk, liquidity risk, market risk and interest rate risk. Financial risk management is implemented pursuant to the PA Research Foundation’s policy. These policies focus on the unpredictability of financial markets and seek to minimise potential adverse effects on the financial performance of the Foundation. All financial risk is managed by the Finance and Risk Committee under policies approved by the Board. The PA Research Foundation measures risk exposure using a variety of methods as follows; Risk Exposure Measurement method Credit risk Ageing analysis Liquidity risk Sensitivity analysis Market risk Interest rate sensitivity analysis

(c) Credit risk exposure Credit risk exposure refers to the situation where the Foundation may incur financial loss as a result of another party to a financial instrument failing to discharge their obligation. The maximum exposure to credit risk at balance date in relation to each class of recognised financial assets is the gross carrying amount of those assets inclusive of any allowance for impairment.



FOR THE YEAR ENDED 30 JUNE 2011 11. FINACIAL INSTRUMENTS (CONTINUED) The following table represents the Foundation's maximum exposure to credit risk based on contractual amounts net of any allowances:

Maximum exposure to credit risk Category Note 2011 2010 $ $ Financial Assets Cash and cash equivalents 3 2,823,316 2,651,328 Receivables 4 88,267 117,937 Total 2,911,583 2,769,265 Financial Assets No collateral is held as security and no credit enhancements relate to financial assets held by the Foundation. The Foundation manages credit risk through the use of a credit management strategy. This strategy aims to reduce the exposure to credit default by ensuring that the Foundation invests in secure assets and monitors all funds owed on a timely basis. Exposure to credit risk is monitored on an ongoing basis. No financial assets and financial liabilities have been offset and presented net in the Statement of Financial Position. The method for calculating any provision for impairment is based on past experience, current and expected changes in economic conditions and changes in client credit ratings. No provision has been made in the current financial year. No financial assets have had their terms renegotiated so as to prevent them from being past due or impaired, and are stated at the carrying amounts as indicated. Ageing of past due but not impaired are disclosed in the following tables: 2011 financial assets past due but not impaired

Less than More than 30 days 30-60 days 61-90 days 90 days Total $ $ $ $ $

Receivables 87,267 1,000 88,267 87,267 1,000 88,267



FOR THE YEAR ENDED 30 JUNE 2011 11. FINACIAL INSTRUMENTS (CONTINUED)

2010 financial assets past due but not impaired

Less than More than 30 days 30-60 days 61-90 days 90 days Total $ $ $ $ $

Receivables 117,937 117,937 117,937 117,937 (d) Liquidity risk Liquidity risk refers to the situation where the Foundation may encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The Foundation is exposed to liquidity risk in respect of its payables. The Foundation manages liquidity risk through the use of a liquidity management strategy. This strategy aims to reduce the exposure to liquidity risk by ensuring the Foundation has sufficient funds available to meet employee and supplier obligations as they fall due. This is achieved by ensuring that minimum levels of cash are held within the various bank accounts so as to match the expected duration of the various employee and supplier liabilities. The following table sets out the liquidity risk of financial liabilities held by the Foundation. It represents the contractual maturity of financial liabilities, calculated based on undiscounted cash flows relating to the liabilities at reporting date.

2011 Payable in

Category Note < 1 year 1-5 years > 5 years Total $ $ $ $ Financial Liabilities Payables 5 213,164 - - 213,164 213,164 - - 213,164

2010 Payable in

Category Note < 1 year 1-5 years > 5 years Total $ $ $ $ Financial Liabilities Payables 5 49,390 - - 49,390 49,390 - - 49,390




11. FINACIAL INSTRUMENTS (CONTINUED)

(e) Market risk The Foundation does not trade in foreign currency and is not materially exposed to commodity price changes. The Foundation is exposed to interest rate risk through cash deposited in interest bearing accounts. The Foundation does not undertake any hedging in relation to interest risk and manages its risk as per the liquidity risk management strategy. (f) Interest rate sensitivity analysis The following interest rate sensitivity analysis depicts the outcome on profit or loss if interest rates would change by +/- 1% from the year-end rates applicable to the Foundation's financial assets. With all other variables held constant, the Foundation would have a surplus and equity increase/(decrease) of $27,602 (2010: $25,567).

2011 Interest rate risk - 1% + 1% Financial Instruments Carrying

Amount Profit Equity Profit Equity

2,760,208

(27,602)

(27,602)

27,602

27,602 Fixed Term Deposits and Cash at Call Deposits Potential Impact

(27,602)

(27,602)

27,602

27,602

2010 Interest rate risk - 1% + 1% Financial Instruments Carrying

Amount Profit Equity Profit Equity

2,556,743

(25,567)

(25,567)

25,567

25,567 Fixed Term Deposits and Cash at Call Deposits Potential Impact

(25,567)

(25,567)

25,567

25,567

(g) Fair Value The PA Research Foundation does not recognise any financial assets or financial liabilities at fair value. The fair value of trade receivables and payables is assumed to approximate the value of the original transactions, less allowance for impairment.




12. RELATED PARTIES Board Members The Board Members during the year ended 30 June 2011 were: Mr Robert Bowen (Chairman) Mr Arthur William Deutrom OAM (Deputy Chairman) Mr Les Watson (Chairman Health Community Council) Dr Richard Ashby AM Mr Richard Bowly Mr Andrew Griffiths Mr Michael Wille OAM Prof. Ian Frazer Prof. David Theile Mr Robert Vines Mr Cameron Buchanan Mr Damian Topp (Chief Executive Officer) Mr Nicholas Allen (Chief Executive Officer) Resigned 31/01/2011 Ms Heather Tyrrell (Board Secretary)

PA Research FoundationBuilding 1

Princess Alexandra Hospital199 Ipswich Road

Woolloongabba Qld 4102Phone: (07) 3176 2359

Fax: (07) 3176 7303

www.pafoundation.org.au

2011 annual report

Documents

raisedthis research

medical research

exceptional research

highest calibre research

financial report

pa hospital campus

annual report requirements

chairmans report