annual report - plan international australia

Annual Report2001

Honorary Board of Directors:Wendy E McCarthy AO (Chair)Andrew S Forgas (Deputy Chair)Brian F DunkleyQuentin A L Bryce AOThe Hon. Michael H LavarchDr Peter A C MacdonaldMaxine McKew (resigned 16/01/2001)Fiona J Sharkie (appointed 10/11/2000)Rilka WarbanoffMargaret Winn

Secretary:Brian F Dunkley

National Executive Director:Ian Wishart (appointed 08/01/2001)

Registered Office:Level 1, 533 Little Lonsdale StreetMelbourne Victoria 3000Telephone: (03) 9670 0030Facsimile: (03) 9670 1130

Auditors:PricewaterhouseCoopers333 Collins StreetMelbourne VIC 3000

Solicitors:Corrs Chambers Westgarth (Pro Bono Services)600 Bourke StreetMelbourne VIC 3000

Bankers:Commonwealth Bank of Australia385 Bourke StreetMelbourne Vic 3000

PLAN International Australia(Company Limited By Guarantee)A.C.N. 004 875 807 / A.B.N. 49 004 875 807

Company Particulars

2

Plan is a member of the Australian Council for Overseas Aidand complies with its code of conduct

3

In respect of the financial year ended 30 June 2001,the directors of PLAN International Australia(hereinafter referred to as PLAN Australia), the Company, submit the following report:

1. Directors of the Company Currently in OfficeThe names of the directors in office at the date of this report are:Wendy E McCarthy AO (Chair)Andrew S Forgas (Deputy Chair)Brian Dunkley (Secretary)Quentin A L Bryce AOThe Hon. Michael H LavarchPeter A C Macdonald Fiona SharkieRilka WarbanoffMargaret Winn

2. Principal ActivitiesThe principal activities of PLAN Australia during theyear were raising funds for Foster Parents PlanInternational Inc. (hereinafter referred to as PLANInternational) for overseas development programs inspecified developing countries, management andparticipation in these program activities, especiallythose funded by the Australian Government.There were no significant changes in the nature ofthe Company’s activities during the year.

3. Operational ResultsOrdinary activities for the year resulted in a surplus of$1,472 (2000 $1,591,325 surplus.) Funds remitted toPLAN International of $8,760,000 were $1,905,000higher than last year, which incorporated theremittance of the Year 2001 surplus of $1,591,325. No tax is payable, as the Company is exempt fromincome tax.

4. DividendsIn accordance with the Memorandum of Association,no dividends are permitted. The operating surplus isremitted to PLAN International.

5. Review of OperationsRevenue for the year was $10,967,420 an increase of$295,238 over the previous year. The increase is mainlyattributed to accounting treatment of ‘Pledges inAdvance’ ($1,186,899), normally recorded as a liabilityin the accounts but taken to revenue in accordance withlocal and overseas accounting standards. The impact oflower AusAID accreditation was evident this financialyear with grants of $1,670,978 being nearly one milliondollars below last year’s amount.

During the year, the total number of supportedchildren and their families assisted by PLAN Australia,on behalf of its sponsors, fell by 232 to 19,856.

Total PLAN Australia disbursements for the year of$10,965,948 is a significant increase of $1,885,091over the previous year. The increase is due to ahigher amount remitted to PLAN International of$8,760,000 (2000 $6,856,000) for programexpenditure. The additional remittance of $1,905,000includes the surplus of $1,591,325 as at the end ofthe year 2000.

6. Changes in the State of AffairsIn March 2000, the Committee for DevelopmentCooperation, a joint AusAID/Non GovernmentOrganisation (NGO) committee, completed theaccreditation of PLAN Australia and awarded PLAN Australia Base accreditation.PLAN Australia reapplied for full accreditation duringMay 2001 and since that time has completed allprocedures and protocols necessary to regain fullaccreditation. The Board is optimistic that fullaccreditation will be achieved but an official decisionwill not be received until October 2001.

7. Events Subsequent to Balance DateThe directors are not aware of any matter orcircumstances not otherwise dealt with in this reportthat has significantly or may significantly affect theoperations of the company, the result of thoseoperations or the state of affairs of the company insubsequent financial years, other than the applicationfor full accreditation by AusAID mentioned above.The Directors believe full accreditation will not have a significant impact on the amount of AusAIDgrants received in the FY 2002 but will do so infuture years.

8. Likely DevelopmentsIn the opinion of the Directors, there are no likelydevelopments which would have a significant effecton the Company’s operations or results.

9. Directors’ BenefitsSince the end of the previous financial year, nodirector of the Company has received, or becomeentitled to receive, a benefit by reason of a contractmade by the Company or a related body corporatewith the Director or with a firm of which the Directoris a member, or with a company in which the Directorhas a substantial financial interest except as reportedin Note 19. Related Parties.The Directors receive no remuneration for theirservices as Directors of the Company.

10. Directors’ Interests in ContractsSince the date of the last Directors’ Report, no Director has declared, pursuant to Section 231 of the Corporations Act 2001, an interest in anycontract by virtue of their directorships ormemberships of other entities except as reported in Note 19. Related Parties.

Directors’ Report

FINANCIAL STATEMENTS PLAN International Australia

4


Directors’ Report (continued)

11. Information on Directors currently in office

Wendy E McCarthy AOBA Dip EdBoard member since May 1996.Elected Chair November 1998.Chancellor, University of Canberra.Member, State of Environment Advisory Committee.Chair, Look of the City Committee. Executive Director,McCarthy Management Pty Ltd, Chair, McGraths.Director, Professional Search. Author.

Andrew S ForgasDDABoard member since October 1991. Past ChairmanPLAN International Australia. Chairman of PowergripIndustries (Aust) Pty Ltd. Managing Director,Midshipman Pty Ltd. Chair, Forgas Investments Pty Ltd.

Brian F DunkleyFCPA LL.B.ACIS FAICDBoard member since August 1996. Accountant.Managing Director, Bridun Pty Ltd. Director andCompany Secretary, i-view Group Ltd.

Quentin A L Bryce AOBA LL.B LLD hc MacqBoard member since February 1996. Principal, TheWomen’s College within the University of Sydney.President, Women’s Cricket Australia. PresidingMember, NSW Constables Education Program. Chair,National Breast Cancer Centre Network. CouncilMember, Central Queensland University. Member,Sydney IVF Ethics Committee.

The Hon. Michael H LavarchLL.BBoard member since August 1997. FormerCommonwealth Attorney General and member ofFederal parliament. Currently Secretary-General ofthe Law Council of Australia. Research Fellow to theNational Institute for Law Ethics and Public Affairs,Griffith University.

Dr Peter A C MacdonaldMBBS MRCGP DA DRCOGBoard member since February 2000. MedicalPractitioner. Former NSW State MP. Chairperson OzGreen Australia. Board member of NatureConservation Council, NSW and SchizophrenicFellowship NSW.

Fiona SharkieB. Bus.“Board member since November 2000. GeneralManager – Marketing & Women’s Programmes, The Heat Group Pty Ltd.

Rilka WarbanoffBoard member since November 1998. Chief ExecutiveOfficer, Spring Search & Selection, executive searchand recruitment. Board member of St Vincent’sHospital Foundation. Telstra Business Women’sAwards, Victorian Finalist 2001.

Margaret WinnBoard member since November 1998. Health andDevelopment consultant, working on reproductiveand sexual health projects in Asia-Pacific Region andAfrica.

5


Directors’ Report (continued)

Committee and Special Responsibilities

Finance & Audit Committee: Sub Committee of the Board: Brian F Dunkley (Chair) Wendy E McCarthy AO Andrew S Forgas

Programs Committee: Sub Committee of the Board: Margaret Winn (Chair) Dr Peter Macdonald

Marketing Committee: ✣ Did not meet. Sub Committee of the Board: Rilka Warbanoff (Chair) Wendy E McCarthy

International Representatives: Directors of PLAN Australia on the Board of PLAN International are: Andrew S Forgas Director Wendy E McCarthy AO Director

12. Indemnification And Insurance Of OfficersPLAN International provides cover worldwide which includes officers of national organisations. The policy doesnot specify the premium for each national organisation nor individual Directors and executive officers. The Directors’ and officers’ liability insurance provides cover against all costs and expenses involved indefending legal actions and any resulting payments arising from a liability to persons (other than the Company)incurred in their position as Director or executive officer unless the conduct involves a willful breach of duty oran improper use of inside information or position to gain advantage.

13. Environmental RegulationsPLAN Australia is committed to comply with all environmental legislation, regulations, standards and codes of practice relevant to its particular activities. It is also committed to keeping abreast of all occupational,health and safety issues.

As far as PLAN Australia is aware there has been no breach of any relevant legislation. The Company is notsubject to significant environmental regulation.

Signed in accordance with a resolution of the Board of Directors.

Wendy McCarthy Brian DunkleyDIRECTOR DIRECTOR

Dated this 27th day of September 2001 at Melbourne.

Statement of Directors’ Meetings Attendance:

Board of Finance and Audit International

Directors Committee ProgramsCommittee

Director Held* Attended Held* Attended Held* AttendedWendy E McCarthy 5 5 5 5Andrew S Forgas 5 5 5 5Brian F Dunkley 5 5 5 5Quentin A L Bryce 5 4The Hon. Michael H Lavarch 5 4Dr Peter A C Macdonald 5 3 6 3Maxine McKew (resigned 16/01/2001) 3 1Fiona J Sharkie (appointed 10/11/2000) 2 2Rilka Warbanoff 5 4Margaret Winn 5 4 6 6*Reflects the number of meetings held during the time the director held office.

6


Corporate Governance Statement

Board of Directors and its CommitteesThe Board is responsible for the overall CorporateGovernance of the Company including its strategicdirection, establishing goals for management andmonitoring the achievement of these goals.

The Board has also established a framework for themanagement of the Company including a system ofinternal control and the establishment of appropriateethical standards.

Composition of the BoardThe names of the Directors of the company in officeat the date of this statement are set out in theDirectors’ Report on page 3 of these financialstatements.

Finance and Audit CommitteeThe Finance and Audit Committee meet prior toBoard meetings.

The Committee is charged with the responsibility ofadvising on the establishment and maintenance ofinternal controls and appropriate ethical standards forthe management of the economic entity.

The responsibility of the Finance and AuditCommittee include, but are not restricted to:• reviewing financial information and statements;• reviewing external audit reports to ensure that

prompt remedial action is taken by management torectify major deficiencies or breakdowns in controlsor procedures which have been identified;

• liaising with the external auditors to ensure thatthe statutory audits are conducted in an effectivemanner;

• monitoring procedures to ensure compliance withstatutory requirements and

• monitoring procedures to ensure that the companyassets are protected from defalcation, fraud, theftand other forms of diminution.

The committee reviews the monthly financialstatements and the Annual Report and makesrecommendations to the Board for the approval andadoption of the reports.

Internal Control FrameworkThe Board acknowledges that it is responsible for theoverall internal control framework, but recognisesthat no cost effective internal control system willpreclude all errors and irregularities.

Ethical StandardsThe Board sets out the standards in accordance withwhich each Director, manager and employee of theeconomic entity are expected to act. Therequirement to comply with these ethical standards iscommunicated to all employees.

All Directors, managers and employees are expectedto act with the utmost integrity and objectivity,striving at all times to enhance the reputation andperformance of the economic entity.

The Role of StakeholdersThe Board of Directors aims to ensure that thestakeholders are informed of all major developmentsaffecting the consolidated entity’s state of affairs.Information is communicated to shareholders asfollows:• the Annual Report is distributed to all shareholders

and stakeholders (unless a stakeholder hasspecifically requested not to receive the document).The Board ensures that the Annual Report includesrelevant information about the operations of theconsolidated entity and details of futuredevelopments, in addition to the other disclosuresrequired under the Corporations Act 2001.

The Board encourages full participation ofshareholders at the Annual General Meeting toensure a high level of accountability and identificationwith the economic entity’s strategy and goals.

7


The Directors declare that the financial statementsand notes set out on pages 8 to 19;

(a) comply with Accounting Standards, theCorporations Regulations 2001 and othermandatory reporting requirements, and

(b) give a true and fair view of the company’sfinancial position as at 30 June 2001 and of its performance as represented by the results of its operations and its cash flows, for the financial year ended on that date.

In the Directors’ opinion:

(a) the financial statements and notes are inaccordance with the Corporations Act 2001;and

(b) there are reasonable grounds to believe thatthe company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with aresolution of the Directors.

Wendy McCarthyDIRECTOR

Brian DunkleyDIRECTOR

Dated this 27th day of September 2001 at Melbourne.

Directors’ Declaration Independent Audit Report

To the members of PLAN International Australia:

ScopeWe have audited the financial report of PLANInternational Australia (the Company) for the financialyear ended 30 June 2001 as set out on pages 8 to 19.The Company’s Directors are responsible for thefinancial report which includes the financialstatements of the Company. We have conducted anindependent audit of the financial report in order toexpress an opinion to the members of the Company.

Our audit has been conducted in accordance withAustralian Auditing Standards to provide reasonableassurance as to whether the financial report is free ofmaterial misstatement. Our procedures includedexamination, on a test basis, of evidence supportingthe amounts and other disclosures in the financialreport, and the evaluation of significant accountingestimates. These procedures have been undertakento form an opinion as to whether, in all materialrespects, the financial report is presented fairly inaccordance with the Accounting Standards, othermandatory professional reporting requirements andthe Corporations Act 2001 in Australia so as topresent a view which is consistent with ourunderstanding of the Company’s financial position,and performance as represented by the results of itsoperations and its cash flows.

The audit opinion expressed in this report has beenformed on the above basis.

Audit opinionIn our opinion, the financial report of the Company isin accordance with:

(a) the Corporations Act 2001, including:

(i) giving a true and fair view of the Company’sfinancial position as at 30 June 2001 and ofits performance for the financial year endedon that date; and

(ii) complying with Accounting Standards andthe Corporations Regulations 2001; and

(b) other mandatory professional reportingrequirements.

PricewaterhouseCoopersChartered Accountants

Stephen J CouglePartner

Melbourne1 October 2001

8


Statements of financial performanceFor the year ended 30 June 2001

Notes 2001 2000$ $

Revenue from Ordinary Activities 3 10,967,420 10,672,182

Other expenses from ordinary activitiesOverseas projects 8,760,000 6,856,000Community education 55,755 64,497Fundraising costs

* public 889,914 934,906* government 159,390 191,165

Administration 1,100,889 1,034,289Surplus of revenue over disbursements from ordinary activities 1,472 1,591,325

The above statements of financial performance should be read in conjunction with the accompanying notes.

Statements of financial positionAs at 30 June 2001

Notes 2001 2000$ $

Current AssetsCash Assets 5 531,480 2,115,974Receivables 6 152,552 37,476Investments 7 2,945,000 2,620,000Prepayments 7 – 17,164

Total Current Assets 3,629,032 4,790,614

Non-Current AssetsInvestments 7 – 350,000Property, plant & equipment 8 115,191 137,746

Total Non-Current Assets 115,191 487,746

TOTAL ASSETS 3,744,223 5,278,360

Current LiabilitiesPayables 9 2,279,510 1,009,882Provisions 10 51,586 56,536Other 1(D) 3,082 1,139,480

Total Current Liabilities 2,334,178 2,205,898

Non-Current LiabilitiesProvisions 11 7,204 2,577Other 1(D) – 77,191

Total Non-Current Liabilities 7,204 79,768

TOTAL LIABILITIES 2,341,382 2,285,666

NET ASSETS 1,402,841 2,992,694

EQUITYFunds available for future use 12 1,402,841 2,992,694

TOTAL EQUITY 1,402,841 2,992,694

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

9

Statements of cash flowsFor the year ended 30 June 2001

Notes 2001 2000$ $

Cash flows from operating activitiesReceipts from donors 7,783,580 7,900,358Payments to suppliers and employees (2,317,517) (1,848,521)

5,466,063 6,051,837Interest received 230,513 159,385Government grants received 1,767,881 2,650,284Payments to PLAN International for programs and services (9,012,019) (7,071,827)Net cash inflows from operating activities 22 (1,547,562) 1,789,679

Cash flows from investing activitiesPayments for property, plant and equipment (61,932) (73,750)Investments in unlisted securities – (150,000)Proceeds from sale of investments 25,000 150,000Net cash (outflow) from investing activities (36,932) (73,750)

Net Increase (Decrease) in cash held (1,584,494) 1,715,929Cash held at beginning of the financial year 2,115,974 400,045Cash held at the end of the financial year 5 531,480 2,115,974

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


10


Note 1. Summary of significant accounting policiesThis general purpose financial report has beenprepared in accordance with Accounting Standards,other authoritative pronouncements of the AustralianAccounting Standards Board, Urgent Issues GroupConsensus Views and the Corporations Act 2001.

It is prepared in accordance with the historical costconvention. Unless otherwise stated, the accountingpolicies adopted are consistent with those of theprevious year.

As a result of applying the revised AccountingStandard AASB 1018 Statement of FinancialPerformance, revised AASB 1034 Financial ReportPresentation and Disclosures and AASB 1040Statement of Financial Position for the first time, anumber of comparative amounts were represented orreclassified to ensure comparability with the currentreporting period.

PLAN Australia is a not-for-profit organisation and isa recognised charitable institution formallyincorporated as a public company limited byguarantee, and these accounts comply with such ofthe prescribed requirements as are relevant to thefinancial statements.

A. Organisation and PurposeThe PLAN group is an international, humanitarian,child-focused development organisation, withoutreligious, political or governmental affiliation.

PLAN’s prime purpose is to provide sustainablecommunity development programs for the alleviationof poverty and the advancement of the education,health, habitat and livelihood of needy children, theirfamilies and communities in developing countries orwhere such programs may be needed because of war,disaster or other major social disturbances. PLANAustralia is an independent non-sectarian, not-for-profit company limited by guarantee. PLAN’s purposein Australia is to raise awareness and funds forsustainable community development programs in thedeveloping world as well as manage and participatein PLAN’s program activities, especially those fundedby the Australian Government. PLAN Australia alsoworks to build understanding and relationshipsbetween the children, their families and communitiesin the developing world, and sponsors and donors inAustralia who provide ongoing financial support.

PLAN Australia is an autonomous member of thePLAN International worldwide group, made up of anumber of similar legal entities. These separatenational supporting entities are located in Australia,Belgium, Canada, Denmark, Finland, France,Germany, Japan, Republic of Korea, Netherlands,Norway, Sweden, United Kingdom, and United Statesof America. The members jointly subscribe to anagreement that establishes PLAN International as theservice arm of the worldwide group.

B. Basis of AccountingThe financial statements have been prepared on thebasis of historical costs, and except where stated, donot take into account current valuations of non-currentassets. PLAN Australia has not adopted a policy ofrevaluing its non-current assets on a regular basis, andthey are not stated at amounts in excess of theirrecoverable amounts. The accounting policies havebeen consistently applied, unless otherwise stated.

C. Revenue RecognitionRevenue is recognised for the major businessactivities as follows:

Donation and grant incomeRevenues relating to donation and grant income arerecognised in the Statement of Financial Performanceupon receipt of the funds.

Interest ReceivedFunds are regularly transmitted to PLAN Internationalin accordance with a predetermined schedule offunding requirements. However, if any fundstransmitted to PLAN International are in excess ofcurrent disbursement needs, these are invested byPLAN International. Interest income earned on theseinvestments is then allocated back to the respectivenational organisations in accordance with anestablished formula, which is based primarily on theratio that each national organisation’s contributionbears to the total contribution from all nationalorganisations.

Donations of Goods and Services.Resources received in the form of intangible incomesuch as donated facilities, voluntary help or beneficialloan arrangements, the value of which cannot beaccurately quantified, are not included in the financialstatements. Donated services, such as community-service radio, television announcements and pressadvertisements, the value of which cannot be accuratelyquantified, are not included in the financial statements.

Nevertheless, the Directors recognise and appreciatethe inestimable value to PLAN Australia of theresources received and services voluntarily given bycorporations, groups and individuals.

D. Change in accounting policy for Advance Payments by SponsorsAdvance payments of pledges for children andfamilies represent payments by sponsors prior to theend of the financial year, applicable to periodssubsequent to that date. In previous years suchpayments were brought to account as a liability andsubsequently recognised as operating revenue whenit falls due. In accordance with the accountingstandard AASB 1004 Revenue and internationalaccounting practices, the full amount ($1,186,899),has been taken to account as revenue for thisfinancial period.

E. ReceivablesAll debtors are recognised at the amounts receivableas they are due for settlement no more than 30 daysfrom the date of recognition. Collectibility of tradedebtors is reviewed on an ongoing basis.

Notes to the financial statements30 June 2001

11

Bills of exchange have been purchased in the marketat a discount to face value. The bills are carried at anamount representing cost and a portion of thediscount recognised as income on an effective yieldbasis. The discount brought to account each period isaccounted for as interest received.

F. Foreign CurrencyTransactions denominated in a foreign currency areconverted at the exchange rate at the date of thetransaction. Foreign currency receivables andpayables at balance date are translated at exchangerates at balance date.

G. InvestmentsInvestments are brought to account at cost.Investment income is recognised on an accrual basis.The carrying amount of investments is reviewedannually by Directors to ensure it is not in excess ofthe recoverable amount of these investments.

H. Property, Plant and EquipmentDepreciation is calculated on a straight line basis towrite off the net cost of each item of property, plantand equipment over its estimated useful life.Estimates of remaining useful lives are made on aregular basis for all assets, with annual reassessmentsfor major items. The expected useful lives are asfollows:

Plant & equipment 10% – 35%Computer equipment 20% – 35%

The carrying amount of property, plant andequipment is reviewed annually by Directors toensure it is not in excess of the recoverable amountof these assets.

At 1st May, PLAN Australia relocated its operationsfrom level 4 to level 1 of its current premises. As level 1 was made available fully furnished, therewas no need to relocate or refit the existing leaseholdassets, as such the full amount has been written off inthis financial period. An independent valuation ofleasehold assets on the new floor will be undertakenin the next financial year and those assets will thenbe duly recorded.

The expected net cash flows have been discounted totheir present values in determining recoverableamounts.

I. Recoverable amount of non-current assetsThe recoverable amount of an asset is the netamount expected to be recovered through the cashinflows and outflows arising from its continued useand subsequent disposal.

Where the carrying amount of a non-current asset isgreater than its recoverable amount, the asset is writtendown to its recoverable amount. Where net cashinflows are derived from a group of assets workingtogether, recoverable amount is determined on thebasis of the relevant group of assets. The decrement inthe carrying amount is recognised as an expense in netsurplus or deficit in the reporting period in which therecoverable amount write-down occurs.

J. Leasehold improvementsThe cost of improvements to or on leaseholdproperties is amortised over the unexpired period ofthe lease or the estimated useful life of theimprovement to the entity, whichever is the shorter.In May 2001, the entity moved its operations fromlevel 4 to level 1 of its current business address. Thenew floor was provided to the entity with existingfixtures and fittings superior to those on theprevious level and at no additional cost. It wastherefore not necessary and cost prohibitive toattempt to relocate any fixtures and fittings from level4 and subsequently the full carrying amount of thoseassets were written down this year.

K. Leased Assets.There were no finance leases in operation during theyear. Other leases under which all the risks andbenefits of ownership are effectively retained by thelessor are classified as operating leases. Operatinglease payments are charged to expenses over theperiod of expected benefit.

L. Income TaxPLAN Australia is exempt from the payment ofincome tax under Suddivision 50-B of the Income TaxAssessment Act 1997.

M. Trade and other creditorsThese amounts represent liabilities for goods andservices provided to the organisation prior to the endof the financial year and which are unpaid. Theamounts are unsecured and are usually paid within30 days of recognition.

N. Employee Entitlements(i) Wages, salaries and annual leave

Liabilities for wages and salaries and annual leaveare recognised, and are measured as the amountunpaid at the reporting date at current pay ratesin respect of employees’ services up to that date.

(ii) Long service leaveA liability for long service leave is recognised, andis measured as the present value of the expectedfuture payments to be made in respect of servicesprovided by employees up to the reporting date.Consideration is given to expected future wageand salary levels, experience of employeedepartures and periods of service. Expected futurepayments are discounted using interest rates onnational government guaranteed securities withterms to maturity that match, as closely aspossible, the estimated future cash outflows.

O. CashFor purposes of the statements of cash flows, cashincludes cash on hand, deposits held at call withbanks, and investments in money market instrumentswhich are readily convertible to cash on hand and aresubject to insignificant risk of changes in value, net ofbank overdrafts.

P. Comparative FiguresWhere required by Accounting Standards, comparativefigures have been adjusted to conform with changes inpresentation for the current financial year.

Notes to the financial statements (continued)

30 June 2001


12



30 June 2001

Note 2. Segment informationPLAN Australia operates as a not-for-profit organisation, predominantly in Australia.

Note 3. RevenueRevenue from operating activitiesDonations and Gifts – Monetary and Non-Monetary

Child sponsorship 8,402,199 7,295,364Designated projects 291,992 301,827

8,694,191 7,597,191Legacies and bequests 236,441 226,458

8,930,632 7,823,649

Revenue from outside the operating activitiesGrants

AusAID 1,587,925 2,634,610Other 83,053 –

1,670,978 2,634,610Investment income 338,659 201,557Other income 27,151 12,366

2,036,788 2,848,533

Revenue from ordinary activities 10,967,420 10,672,182

Note 4. Operating surplus(a) Net gains and expensesSurpluses from ordinary activities before income tax expensesincludes the following specific net expenses:

ExpensesAmortisation

Leasehold improvements 45,304 13,795

DepreciationPlant and equipment 10,845 23,103Computers 28,337 5,415

Total depreciation 39,182 28,518

Other provisionsEmployee entitlements (324) 9,722

Rental Expenses relating to operating leaseLease payments 30,214 28,968

(b) Individually significant itemsExpensesSurplus funds remitted to IH 8,760,000 6,856,000

Note 5. Current assets – Cash assetsCash at bank and on hand 140,456 288,359Deposits at call 391,024 1,827,615

531,480 2,115,974

The above figures are reconciled to cash at the end of thefinancial year as shown in the statement of cash flows as follows:Balances per statement of cash flows 531,480 2,115,974

Deposits at callThe deposits are bearing various interest rates between 4.4% and 5.0% (2000 - 4.0% and 5.1%)

2001 2000$ $

13


30 June 2001

Note 6. Current assets – ReceivablesTrade debtors 21,812 24,856Other debtors 130,740 12,620

152,552 37,476

Other debtorsThese amounts generally arise from transactions outside the usual operating activities of the organisation.

Note 7. Current assets – OtherInvestments 2,945,000 2,620,000Prepayments – 17,164

2,945,000 2,637,164

InvestmentsInvestments comprise unlisted securities (at cost) of government stocks and bonds of $200,000 (2000 – $275,000) and debentures in other corporations of $2,745,000 (2000 - $2,695,000). The investments have floating interest rates of between 4.10% and 6.50%. In the prior year $350,000 of the total $2,970,000 was disclosed as a non-current investment.

Note 8. Non-current assets – Property, plant and equipmentLeasehold improvements – at cost – 114,484Less: Accumulated amortisation – 69,881

– 44,603

Plant and equipment – at cost 242,537 229,377Less: Accumulated depreciation 193,942 206,796

48,595 22,581

Computer Equipment – at cost 443,922 395,852Less: Accumulated depreciation 377,326 325,290

66,596 70,562

ReconciliationsReconciliations of the carrying amounts of each class of property, plant and equipment at the beginning andend of the current financial year are set out below.

Leasehold Plant & Computerimprovements Equipment Equipment Total

$ $ $ $Carrying amount at 1 July 2000 44,603 46,914 46,229 137,746 Additions 701 13,160 48,070 61,931Disposals – – – –Depreciation/amortisation 45,304 10,845 28,337 84,486Reclassification of assets – (634) 634 – Carrying amount at 30 June 2001 – 48,595 66,596 115,191

Note 9. Current liabilities – PayablesTrade creditors 225,745 332,532Other creditors 93,076 55,967PLAN International (Note 19) 1,960,689 621,383

2,279,510 1,009,882

Note 10. Current liabilities – ProvisionsEmployee entitlements 51,586 56,536

Note 11. Non-current liabilities – ProvisionsEmployee entitlements 7,204 2,577

2001 2000$ $


14


Note 12. Reserves and retained surpluses(a) Reserves

Memorial funds 1,055,661 596,085General funds 115,191 137,748Capital reserve 667,536 667,536Retained surplus/deficit (435,547) 1,591,325

1,402,841 2,992,694

MovementsMemorial fundsBalance 1 July 2000 596,085 552,596Transfer from retained surplus/deficit 459,576 43,489Balance 30 June 2001 1,055,661 596,085

General FundsGeneral fundsBalance 1 July 2000 137,748 106,310Transfer to retained surplus/deficit (22,557) 31,438Balance 30 June 2001 115,191 137,748

(b) Retained surplus/deficitRetained surplus at the beginning of the financial year 1,591,325 –Current year funds available 1,472 1,591,325Transfers to Memorial funds (459,576) –Transfers from General funds 22,557 –Funds remitted to PLAN International (1,591,325) –Retained surplus at the end of the financial year (435,547) 1,591,325

(c) Nature and purpose of reserves(i) Memorial funds

The Memorial funds reserve represents the principal of contributions designated by the Directors, inaccordance with the wishes of the donor, to remain in perpetuity or until the occurrence of a specifiedevent or for a specified period.

(ii) General fundAmounts expended on the acquisition of property, plant and equipment are appropriated from therevenue and expenditure account to the General fund during the year of acquisition, or at the time theasset is held ready for use.

As the property, plant and equipment are utilised in the operations of PLAN Australia, the depreciationcharge is included as an operating expense and an equivalent amount is released from the General fund.On the disposal of property, plant and equipment, the gain/loss is included as part of the operatingexpense and the book value is released from the General fund.

(ii) Capital ReserveThe reserve represents the surplus over the book value of a property donated to PLAN Australia andtransferred by resolution of the Board to reserves, to be held in reserves and utilised in the event of amajor publicity campaign or such other event deemed appropriate by resolution of the Board of Directors.


30 June 2001

2001 2000$ $

15

Note 13. Financial instruments(a) Interest rate risk exposures

The entity’s exposure to interest rate risk and the effective weighted average interest rate by maturityperiods is set out in the following table. For interest rates applicable to each class of asset or liability referto individual notes to the financial statements.

Exposures arise predominantly from assets and liabilities bearing variable interest rates as the entity intendsto hold fixed rate assets and liabilities to maturity.

Financial AssetsCash and deposits 5 531,480 531,480 Receivables 6 152,552 152,552Other financial assets – investments 7 2,945,000 2,945,000

531,480 3,097,552 – – – 3,629,032

Weighted average interest rate 4.98% 5.69%

Financial LiabilitiesTrade and other creditors 9 – 318,821 – – – 318,821

Weighted average interest rate

Net financial assets 531,480 2,778,731 – – – 3,310,211

Financial AssetsCash and deposits 5 2,115,974 2,115,974Receivables 6 37,476 37,476Other financial assets – investments 7 2,620,000 350,000 2,970,000

2,115,974 2,657,476 350,000 – – 5,123,450

Weighted average interest rate 4.57% 5.67% 5.77%

Financial LiabilitiesTrade and other creditors 9 388,499 – – – – 388,499

Net financial assets (liabilities) 1,727,475 2,657,476 350,000 – – 4,734,951


30 June 2001

Fixed interest maturing in:2001 Floating More Non-

interest 1 year 1 to 5 than interestrate or less years 5 years bearing Total

Notes $ $ $ $ $ $

Fixed interest maturing in:2000 Floating More Non-

interest 1 year 1 to 5 than interestrate or less years 5 years bearing Total

Notes $ $ $ $ $ $


16


Note 13. Financial instruments (continued)(b) Net fair value of financial assets and liabilities

On-balance sheetThe net fair value of cash and cash equivalents and non-interest bearing monetary financial assets andfinancial liabilities of the Company approximates their carrying amounts.

The net fair value of other monetary financial assets and financial liabilities is based upon market priceswhere a market exists or by discounting the expected future cash flows by the current interest rates forassets rates for assets and liabilities with similar risk profiles.

The carrying amounts and net fair values of financial assets and liabilities at balance date are:

2001 2001 2000 2000Carrying Net fair Carrying Net fairamount value amount value

$ $ $ $On-balance sheet financial instrumentsFinancial assetsCash 140,456 140,456 288,359 288,359Deposits 391,024 391,024 1,827,615 1,827,615Pledges Receivable 21,812 21,812 24,856 24,856Other debtors 130,740 130,740 12,620 12,620Non-traded financial assets 684,032 684,032 2,153,450 2,153,450Traded investmentsDebentures, Bills and Bonds 2,945,000 2,945,000 2,970,000 2,970,000

3,629,032 3,629,032 5,123,450 5,123,450

Financial liabilitiesTrade creditors 225,745 225,745 332,532 332,532Other creditors 93,076 93,076 55,967 55,967Non-traded financial liabilities 318,821 318,821 388,499 388,499


30 June 2001

17

2001 2000$ $

Note 14. Remuneration of DirectorsThe Directors serve in an honorary capacity and do not receive remuneration for their services as Directors of the Company.

Note 15. Retirement benefits of DirectorsNo amounts were paid on retirement from office or to prescribed superannuation funds in respect of Directors of the company.

Note 16. Remuneration of AuditorsRemuneration for audit or review of the financial reports of the entity.Auditor – PricewaterhouseCoopers 17,000 23,400

Note 17. Commitments for expenditureOperating leasesCommitments for minimum lease payments in relation to non-cancelableoperating leases are payable as follows:Within one year 90,600 74,676Later than one year but not later than 5 years 400,119 25,141Commitments not recognised in the financial statements 490,719 99,817

Note 18. Employee entitlementsEmployee entitlement liabilitiesProvision for employee entitlements

Current 51,586 56,536Non-current 7,204 2,577

Aggregate employee entitlement liability 58,790 59,113

Employee numbersAverage number of employees during the financial year 18.5 18.0


30 June 2001


18



30 June 2001

Note 19. Related partiesThe names of persons who were Directors of PLAN Australia at any time during the financial year are as follows:W E McCarthy; A S Forgas; B F Dunkley; Q A L Bryce; M H Lavarch; P A C Macdonald; M McKew; F Sharkie; R Warbanoff and M Winn.

All of these persons were also Directors during the year ended 30 June 2000, except for F Sharkie who wasappointed on 10 November 2000. In addition M McKew held office as a Director until her resignation on 16 January 2001.

Remuneration and retirement benefitsInformation on remuneration and retirement benefits of Directors is disclosed in notes 14 and 15 respectively.

Other transactions with Directors and Director-related entitiesFifth World Pty Ltd, a company associated with M Winn entered into a contract during the year for provision ofconsulting services for review of two AusAID funded water and sanitation programs in Zimbabwe and Tanzania.The contract was based on normal commercial terms and conditions.

Spring Search & Selection Pty Ltd, a company associated with R Warbanoff provided recruitment services toPLAN Australia on normal commercial terms and conditions.

Aggregate amounts of each of the above types of other transactions with Directors and their Director-related entities:Program reviews 21,958 – Recruitment services 13,900 –

Controlling entitiesThe nature of the Company’s activities and relationship with PLAN International is described in Note 1 to the Financial statements.

Amounts receivable from or payable to related partiesAggregate amounts receivable from/payable to related partiesPLAN International 1,960,689 621,383

Comprises:Intercompany loan (617,781) (365,762)Retained/Unappropriated surpluses 2,578,470 987,145

1,960,689 621,383

Other transactions with related partiesAmounts are transferred to PLAN International for program and services expenditures. The Directors are notpaid any remuneration for their services as Directors of PLAN International. Interest is received from PLANInternational on remitted funds.

Controlled entityFoster Parents Plan of Australia Pty Ltd is a dormant shelf company formed in 1991 for the purpose offacilitating the change of name from Foster Parents Plan of Australia to PLAN International Australia.The paid-up capital of $4 is held on trust by two Directors.

Note 20. Members guaranteeThe Company is limited by guarantee. If the Company is wound up, the Articles of Association states that each member is required to contribute a maximum of $20 each towards meeting any outstanding obligations of theCompany. There were 62 members as at 30 June 2001.

2001 2000$ $

19



30 June 2001

Note 21. Event occurring after reporting dateOther than the AusAID Accreditation review referred to in Item 6 of the Directors’ Report, the Directors are notaware of any matter or circumstance not otherwise dealt with in the Directors’ Report of the financialstatements that has, or may, significantly affect the operations of PLAN Australia, the results of those operationsor the state of affairs of the Company in subsequent financial years.

Note 22. Reconciliation of operating profit to net cash inflow from operating activitiesExcess of revenue over operating expenses 8,761,472 8,447,325Payments to PLAN International (8,760,000) (6,856,000)Increase/(decrease) in fund balances 1,472 1,591,325Depreciation and amortisation 84,486 42,313Change in operating assets and liabilities

Decrease (increase) in trade and other debtors (115,076) 80,806(Increase) in other operating assets 17,164 (14,232)Increase (decrease) in trade creditors (Note 9) (106,787) 79,744(Decrease) in other operating liabilities (1,428,497) –Increase (decrease) in other provisions (324) 9,723

Net cash inflow from operating activities (1,547,562) 1,789,679

2001 2000$ $

GPO Box 2818AA, Melbourne VIC, 30011/533 Little Lonsdale Street, Melbourne VIC, 3000Tel: (03) 9670 0030 Fax: (03) 9670 1130 Freecall: 1800 038 100 Email: [email protected] www.plan.org.au

All children represented are from Plan Communities. All rights reserved Plan.Editor: Gillian ChamberlainPhotography: S. Bell, S. Stoepher, T. Rindfleisch, I. WishartDesign: Motion Printed by: Adams PrintersPrinted on Onyx Bright White 80gsm paper, 100% recycled, Australian-madeGenerously subsidised by Edwards Dunlop

annual report - plan international australia

Documents