friends of the royal botanic gardens, · 2 from the president the friends was formed 31 years ago...

Annual Report

2012/13

GATE LODGE, 100 BIRDWOOD AVENUE, MELBOURNE VIC 3004 ABN 43 438 335 331

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ANNUAL REPORT OF THE FRIENDS FOR THE YEAR ENDED 30 JUNE 2013

Patron The Honourable Alex Chernov AC QC, Governor of Victoria

Council President Catherine Trinca # Vice-President Susan Chandler * Immediate Past President Janet Thomson Secretary Adnan Mansour * Treasurer Angela Mitchell # Members Peter Kelly # Prof Tim Entwisle † Dr Richard Kirsner * Irwin Newman # Frank Phillips † Marta Salamon * Richard Smith # Lee Tregloan #

* Retires Annual General Meeting 2013 # Retires Annual General Meeting 2014

† Ex-officio Member of Council

Trustees of the Friends’ Trust Fund

F V Phillips (Chairman), M Castro (Secretary), P Griffin AM and Janet Thomson

Friends’ Staff

Manager, Administration Virginia Henderson Administrative Officer Dr Marguerite Hancock Finance Officer Karlene Taylor Botanical Illustration Teachers Dianne Emery, Mali Moir (contractor) and Helen Burrows (contractor)

Editor, Botanic News Meg Miller

Conveners of Committees at 30 June 2013 Botanical Illustrators Joanna Brownell (Acting) Editorial Advisory Janet Thomson Events & Catering Robyn Robins Executive/Finance Adnan Mansour Grants Catherine Trinca Growing Friends Michael Hare Helping Hands Irwin Newman I T and Equipment Dr Richard Kirsner Membership & Marketing Lee Tregloan Operations Susan Chandler Publications Meg Miller Volunteers John Goodwin

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From the President The Friends was formed 31 years ago to support Melbourne‘s much loved Royal Botanic Gardens and to promote an interest in gardens and plants among members and the wider community.

Over the years the activities have grown to include a wide spectrum of interests from the outstanding skills of the Botanic Artists, to the hands-on propagation work of the Growing Friends, the fascinating articles in Botanic News and the many excellent talks, discussion groups and excursions organised throughout the year. All the events of the current year are reported in more detail later in the report. The Gardens The funds generated by activities and the income from the Trust Fund the Friends established 26 years ago enabled $114,289 to be donated to the Gardens to support a variety of worthwhile projects and research. The year saw the completion of the ‗Working Wetlands‘ project to which the Friends contributed $210,000 in total. During the year, the Gardens approached the Friends for assistance initiating a project to replace paths with boardwalks in the Fern Gully, which, many members will be aware, is regularly closed because of problems with the paths. The sum of $36,559 was contributed during the year for the initial planning phase, and Council has committed approximately a further $74,000, to be paid when the Gardens are ready to commence work.

Details of all the Friends' contributions to the Gardens in the year can be seen in the ‗Grants to the Gardens‘ section of the report. A Bequest In August 2012, the Friends received a bequest from the estate of Mrs Leila Rachel Paterson of $20,000. Mrs Paterson had been a member of the Friends for 17 years, and this generous gift is much appreciated. Council considered the most appropriate use of these funds and decided to transfer them to the Trust Fund from which they will continue to support the Gardens for many years to come. The Friends extend their condolences to Mrs Paterson's family and friends. Director and Chief Executive of the Royal Botanic Gardens 2012 saw the retirement of Dr Philip Moors as Director and Chief Executive Officer of the Gardens after 20 years of outstanding leadership. He also served as an ex-officio member of the Council and his valuable counsel will be missed. In gratitude for his contribution to the Gardens and the Friends an Honorary Life Membership was bestowed on him at the Friends' Annual General Meeting in November 2012.

Professor Tim Entwisle assumed the role in March 2013 and has joined the Council as an ex-officio member. We look forward to many years of constructive partnership. The Plant Craft Cottage Inc. (PCC) This organisation was the first volunteer organisation formed to assist the Royal Botanic Gardens and nurtured the early days of both the Friends and the Gardens' Voluntary Guides. Its primary interests, however, have been plant based crafts, such as basketry, plant dyes, etc., and also the maintenance of the PCC and its garden situated near the Temple of the Winds in the northern part of the Gardens. This cottage was originally the home of Ferdinand von Mueller and is the oldest residence in Victoria regularly open to the public.

The Councils of both organisations agreed during the year that it was in the best interests of both membership groups to merge the PCC with the Friends, enabling the PCC to continue all its activities as one of the Friends' committees.

Logistically, this merger was a complicated process involving, amongst other legal requirements, both organisations holding Special General Meetings. The whole process was ably controlled by Maurice Castro, former Treasurer of the Friends. The President and Council extend their thanks to him for his hard work in bringing the two organisations to a successful merger on 1 July 2013.

We welcome the PCC members and look forward to a mutually beneficial relationship.

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Appreciation During the past year, many volunteers have contributed their time, skill and energy to every aspect of the Friends' operations. We particularly note the 10 years service of the retired Treasurer, Maurice Castro, whose wise and careful guidance of the Friends' finances has placed our affairs in their current sound position. We are happy that Maurice is to continue as Secretary of the Friends' Trust Fund, so that his expertise and kind, gracious manner will not be lost to us entirely. The organisation also receives support from all those who attend our activities and botanical illustration classes, who buy plants, greeting cards and calendars and make donations to the Trust Fund. On behalf of the Council I extend our thanks to everyone involved.

Thanks also go to the Gate Lodge team, Virginia Henderson, Marguerite Hancock and Karlene Taylor, for their cheerfulness, excellent work and support. Council is also most appreciative of the contributions made by Dianne Emery, Mali Moir and Helen Burrows, whose Botanical Art classes go from strength to strength.

As President, I value greatly the help and support I have received from the Secretary, Treasurer and Council members and everyone else involved with the Friends. I thank them all.

The Council of the Friends Six Council meetings were held during the year on alternate months commencing August 2012. Regular reports presented to Council included the Director‘s report covering key developments in the Melbourne and Cranbourne Gardens, and reports from the Executive and Finance Committee, the Trustees and the Operations Committee. Executive and Finance Committee The Committee, comprising the Council's office bearers, is usually convened in the period leading up to Council meetings. The primary role of the Committee is to examine and consider the financial and business affairs of the Friends and report to Council as appropriate. Administration The year was a busy one with the new Associations Incorporation Reform Act 2012 coming into force on 26 November 2012. A working group, headed by Richard Smith and backed up by Maurice Castro, Peter Kelly and Adnan Mansour, was established to review changes that were required to the Friends‘ Statement of Purposes and Rules by the AGM 2013. The Council agreed to change the Rules and not adopt the Model Rules. In addition, the legislation for Australian Charities and Not-for-Profits Commission (ACNC) had been passed by the Senate and required consideration.

A merger between the Friends and the Plant Craft Cottage Group was approved by Council in February 2013. The merger was endorsed at a Special General Meeting on 20 May 2013 when members also approved the necessary changes to the Friends‘ Statement of Purposes and Rules to allow the merger to take place on or after 1 July 2013. A working group was formed to oversee the merger: Maurice Castro (Chair), the Secretary, President, Peter Kelly and Richard Smith.

Amongst other administrative issues, a review took place of the document concerning Responsibilities of Office Bearers, Council members and Committee Conveners. An Equal Opportunity Policy for the Friends had been added to its policy folder and was rolled out to FRBGM voluntary groups via conveners.

Council had agreed at their October 2012 meeting that the Friends‘ current database was no longer proving effective in reducing the manual workload in the office and that they should move to an integrated online database. Details of the system acquired and the work done to implement it are included in the Information Technology and Equipment section later in the report. The Friends record their grateful appreciation for the many hours of work and expert support that Graeme Lunt, a volunteer, contributed to this project. Special thanks also go to our dedicated and talented group of office volunteers.

In 2007, the Friends‘ Council agreed that the Friends should commence sorting and organising old documents and records for storage in the RBG archives as part of the State Botanical Collection. It was hoped that this would ensure that the Friends‘ historical records were properly maintained and accessible, subject to certain conditions, to researchers, historians and

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others. Bronwen Merrett, an experienced archivist, had set the project on track and managed it until sadly she became ill and subsequently died in 2011. Other volunteers became involved in the project and the first consignment of thirteen boxes was taken to the RBG Library in 2012. The second consignment of around nineteen archival boxes is expected to be despatched within a few months.

Appointment of Auditors At the Annual Meeting in November 2012, Baumgartner Partners retired as auditors of the Friends and DFK Collins were appointed.

Financial Results The audited Financial Statements of the Friends can be found on pages 18-28.

Income increased significantly from $398,972 in 2012 to $457,779. The major contributors to this increase were the bequest of $20,000 discussed earlier in this report and the continued growth in the popularity of the Botanic Art classes and workshops. Expenditure grew less rapidly from $389,744 to $401,814. This increase is about in line with inflation, however within the expenses were some major variations between years. The largest reduction was in exhibition expenses because there was only one exhibition in 2013 while 2012, uniquely, had 2 exhibitions. This expense reduction was largely offset by the increases in the numbers, and therefore the cost, of the Botanical Art classes and workshops and in the costs of producing the Friends' merchandise, although this was largely an effect of the timing of production rather than a substantial increase in costs of production. These factors combined to generate a Profit before grants and transfers of $55,965 (2012 - $9,228). The 2012 reported profit was adversely affected by a change in the method of quantifying income received in advance which reduced both income and profit by $23,578.

Grants were paid to the Gardens of $11,500 (2012 - $6,500) and the bequest on page 7 was transferred to the Trust Fund in the year, there was no such transfer in 2012. The Total comprehensive income after the payment of these amounts was $24,465 (2012 - $2,728). The substantial grants made by the Trust Fund to the Gardens are discussed later in this report. The total assets of the Friends at 20 June 2013 were $410,496 (2012 - $375,892). The increase is almost entirely represented by Funds held on short-term deposits. The increase in liabilities from $119,669 in 2012 to $129,808 in 2013 results mainly from increases in income received in advance for art classes, events and membership.

Management of the Friends seeks to achieve the dual objectives of meeting the needs and expectations of members and of providing significant financial support to the Gardens. At the end of the financial year the Friends are in a strong position to meet these two objectives for the foreseeable future. Grants to the Gardens One of the main purposes of the Friends is to provide financial support to the Gardens. This support is provided in the form of grants for a variety of purposes.

Grants are funded from two sources: surpluses from activities undertaken for members and non-members of the Friends, and from the income, donations and bequests to the Friends' Trust Fund.

Grants paid during the 2012/13 financial year again have been significant. The following table shows in each case the purpose and the amount paid during the year.

Friends’ Operating Surpluses

Friends’ Trust Fund

Total

General Purpose Grant $6,500 $6,500

Purchase of artworks from TABI 2012 Exhibition for State Botanical Collection

$5,000 $5,000

Working Wetlands = final instalments $ 40,000 $40,000

Staff Scholarships $ 9,860 $ 9,860

Helen McLellan Research Grant $ 16,370 $ 16,370

Fern Gully Project – initial instalments $ 36,559 $ 36,559

Total $ 11,500 $102,789 $ 114,289

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Grants paid to the RBG over the past five years

The Trust Fund is now the main ongoing source of funding for grants to the RBG. The Fund assumed this role when the Helen McLellan Bequest was placed at the core of the Trust Fund corpus in 2008. Grants Committee The Grants Committee works to coordinate the funding of the Friends to the Gardens across all sources. It is comprised of the Friends‘ President, Secretary, and Treasurer, and the four Trustees of the Trust Fund.

The Committee meets as required to determine the source of funding of the grants. It also sometimes meets with the Director and Chief Executive of the RBG, for example when the funding of a significant project is discussed or when longer-term issues of mutual interest arise. Friends of the Royal Botanic Gardens, Melbourne Trust Fund The annual report and audited financial statements for the Trust Fund are on pages 29-39 of this document. The Chairman of Trustees, now an ex-officio member of Council, regularly reports to Council on the Trust Fund performance and other related issues. Friends’ Scholarship Scheme The Friends award two major special purpose grants each year. The Friends' Scholarship Scheme offers grants to a total value of $10,000 p.a. to assist the personal development of staff of the Royal Botanic Gardens Board. Scholarships announced at the Friends‘ AGM in November 2012 were:

Catherine Gallagher (Plant Sciences & Biodiversity Division) for the Botanical Nomenclature Course, RBG Kew Dr Pina Milne (Plant Sciences and Biodiversity Division) for the Bryophyte and Lichen Workshop in New Zealand Millie Wee (Melbourne Gardens) for the Study Tour of Queensland Botanic Gardens: RBG Palm and Bamboo Collection Development

Friends’ Helen McLellan Research Grant The Friends‘ Helen McLellan Research Grant with a value of up to $20,000 p.a. was launched in November 2010 with the object of providing support for a scientific research initiative which might not otherwise be undertaken by the RBG at the time. The second annual recipients were announced at the 2012 AGM. The winning research project was awarded to Sharon Willoughby, Manager, Public Programs RBG Cranbourne and Dr David Kendal, Post Doctoral Fellow, ARCUE for their project Gardening beyond our boundary.

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The Friends are indebted to Professor David Cantrill and Peter Kelly for their assistance in assessing scholarship applications and to Professor Cantrill for evaluating research grant submissions. Operations Committee The Operations Committee meets bi-monthly on alternate months to the Council. During the year, Vice-President Susan Chandler succeeded outgoing Vice-President Susan Brookes as Committee Chair. The Committee membership includes the Conveners of all the Friends' committees, the Secretary and Treasurer, several senior RBG staff members and representatives of the RBG Public Program Volunteers (Voluntary Guides, Gardens Ambassadors and Children's Garden Volunteers) and the Plant Craft Cottage.

The Operations Committee provides a forum in which the conveners report and discuss their programmes, activities and events. As well as providing a valuable communication link between the Friends and the RBG, it permits the discussion of new ideas and a coordinated approach to the Friends' activities. Recommendations are made to Council for consideration when appropriate.

The Committee acknowledges the contribution made by the RBG staff, namely Nic Capp, Chris Cole and Kylie Regester, the President of the Plant Craft Cottage, Jean Walker, and the representatives of the RBG Public Program Volunteers, Suzanne Katz and Rosemary Cotter. Significant Events since June 2013 As discussed earlier in this report, on 1 July 2013 the Plant Craft Cottage Inc. was merged into the Friends. This merger brought financial assets of $39,021 and liabilities of $18,681 being net assets of $20,340 to the Friends as well as 106 additional members. The Cottage also contains an extensive library of plant and plant craft publications for the use of participants in the activities and workshops the group runs. These activities and workshops are now available to all members of the Friends. Council expects the merger to be of benefit to both membership groups.

The Council is of the opinion that the solvency and viability of the Friends are not now nor in the foreseeable future likely to be affected by adverse circumstances.

Botanical Illustrators Botanical Art Classes The Friends' classes in botanical illustration have remained very well attended. It was decided that from the first term of 2013, a Sunday afternoon class should be added, meaning that classes would be held seven days a week. The year is divided into four eight-week terms, roughly following the school year, with classes mainly during the day and evening classes on Tuesday and Wednesday. These are taught by Dianne Emery, Mali Moir and Helen Burrows, all of whom have developed a devoted following. Average enrolments per term during the year were 130. Workshops A series of workshops on special subjects was given through the year:

John Pastoriza-Piñol, 'Mastering Masking Fluid and the ¼ NEEF Comb', July 2012

Anita Barley, 'Ferns of the Royal Botanic Gardens', September 2012

Hillary Parker, 'Finding Your Artistic Voice through Composition' (one-day masterclass), November 2012

John Pastoriza-Piñol, 'Waterlily Workshop', January 2013

Tim Jones, 'Silverpoint Workshop', January 2013

Dianne Emery, 'Summer Fruits Workshop', January 2013

Kate Nolan, 'Discover the Secrets of Black Backgrounds', April 2013

Janet Matthews, 'Leaves in Colour Pencil and Watercolour', April 2013

The Friends are continuing to hold a regular series of four-day Beginners' Workshops. It is strongly recommended that new and inexperienced students take one of these before they join term classes. Taught by Dianne Emery, Mali Moir and Helen Burrows, they are held during the term breaks and are extremely popular, with 100 students enrolling during 2012/13. Many of these students then proceed to term classes. Exhibitions The Art of Botanical Illustration (TABI) exhibition was held in Domain House from 10 until 25 November 2012. The guest speaker on opening night was landscape designer and

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Gardening Australia presenter John Patrick, the caterer was Heather Martin and wine was supplied by Buller Wines. Many of the guests mentioned the high quality of the paintings and the skill of the artists represented. It was a very successful and well attended opening night. Altogether, there were 145 paintings, representing the work of 77 artists. The Celia Rosser Medal was awarded to two artists: Beverley Lewis, represented by her pencil and colour pencil work Callistemon phoeniceus, and Merle McIntyre, who had three works in the exhibition—Banksia tricuspis, Usnea sp growing on Callitris verrucosa Cone and Schizophyllum commune on Betula pendula. For the first time a 'People‘s Choice' prize was awarded with a $500 voucher donated by Eckersley‘s, Prahran going to the winning artist. This was Paul Rovis, who received a total of 108 votes for his dramatic image of a dry leaf of the Acer japonicum. Runners up were Beverley Lewis (91 votes) for Callistemon phoeniceus and Anita Barley (82 votes) for Wisteria sinensis. A total of 1610 votes were submitted.

Once TABI was finished, the Illustrators turned their attention to the next exhibition, From the Forest to the Foreshore, which will be held in Domain House from Saturday 5 to Sunday 20 October 2013. Other Activities Three meetings with guest speakers were held with good attendances:

Norma Bathie, President of the Floral Art Society of Victoria, 'Floral Design', July 2012

Jenny Phillips, botanical artist and teacher, 'Forty-Two Years of Botanical Art', September 2012

Professor David Cantrill, Chief Botanist and Director, Plant Sciences and Biodiversity, National Herbarium of Victoria, 'The Naming of Plants', March 2013

Editorial Advisory Committee The refreshed design and two-column format, approved by Council in June 2012, was used for the first time in the Spring edition of Botanic News and was well received.

Supporting the Editor, Meg Miller, continues to be a priority for the Committee in addition to constantly seeking volunteers with appropriate skills to assist her; planning future editions; seeking new contributors and sourcing a range of relevant and interesting articles. We congratulate and thank Meg Miller who produced her fortieth edition as Editor of Botanic News with the excellent Autumn edition. Meg has generously given countless hours to the Friends on a voluntary basis.

In June, Council approved an increase in the number of pages in Botanic News from 16 to 20 to meet extra space requirements resulting from the merger of the Plant Craft Cottage with the Friends. Events The responsibility of the Events Committee is to provide a full and varied program for the enjoyment of members, and the 2012/13 year saw many changes and outstanding results. Illustrated talks were scheduled in the evenings only and weekend seminars were introduced as a strategy to attract younger members. Attendance figures are over 60% up on the previous year with one event selling out to a capacity 120 and being repeated for a further 80 attendees. The Winter Feast of Film ran for the last time in the winter of 2012 due to intellectual property regulations preventing continuance in the current format. There was a change in Convener during the year and several retirements from long standing committee volunteers. The year's program was as follows: Illustrated Talks Lynsey Poore Gardens of Paris (presented twice due to demand) Lynsey Poore Guilfoyle‘s Garden John Patrick Journey to Himalayan Kingdom of Bhutan Dr Philip Moors Heard Island: Ice, Fire and Penguins Damon Young Philosophy in the Garden Terry Smyth Botany in Remote China Sophie Matthiesson Monet and the Plantsmen Clive Blazey Seeds: Why What You Eat Matters

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Workshops Photography for Plants and Landscapes with Glenn Guy Gardening Essentials with Michèle Adler Insiders’ Walks Inside the National Herbarium of Victoria Library of the National Herbarium of Victoria La Trobe‘s Cottage and Garden Fern Gully to Herb Garden Fit Friends' Rambles Old Treasury Building to Melbourne Museum Darebin Parklands Train trip to Kyneton Botanic Gardens Discovering the Glen Ferrie Estate A Walk in Monet‘s Garden, NGV Guided Tours The Art of Botanical Illustration 2012 (two tours) Summer Visit to the Growing Friends' Nursery Talking Plants Winter Hellebores Spring Tree Peonies Summer Bromeliads Autumn Australian Natives Day Trips Alowyn Gardens and Lubra Bend in the Yarra Valley Art Gallery of Ballarat, Botanical Art Exhibition Salvias at Gruyere, Yarra Valley Special Event Government House Gardens Escorted by John Patrick Growing Friends The Spring and Autumn Sales were again very successful and continued the growth experienced last year with the income from both sales exceeding that of earlier years. Some of the increase can be attributed to a modest rise in plant prices, but the major contributor is more people buying more plants. It is of interest that only about a third of the customers at these sales are members of the Friends. This means that the general public continues to appreciate the fact that the Growing Friends propagate plants that are not available from normal retail nurseries.

The continuance of the Myrtle Rust Control Protocol has meant that the Nursery has remained closed for sales to Friends on Fridays. However, with the cooperation and help of the RBG staff, who spray plants prior to Sale Day, three Friends' Friday Sale Days were reintroduced spaced between the main sales. The income from these days in part made up for that lost by the lack of the regular Friday Nursery sales so that the total income for the 2012/13 year exceeded that of the previous year. Because the Myrtle Rust Control Protocol prohibits bringing plant material into the RBG, our ability to expand the Nursery‘s range of plants has also been limited. Helping Hands The activities for the year were similar to last year: mainly maintenance with a little new planting at Eastern Lodge and some replacement planting at 'E' Gate Lodge. The appearance of both gardens has benefited substantially from the work done by these volunteers.

The refurbishing of the hardstand area and adjacent gardens at 'E' Gate Lodge is still to be done.

The number of volunteers involved was fairly constant, with all working one half-day each month.

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Information Technology and Equipment The Friends‘ information management and recording processes go back three decades and have grown piecemeal rather than as parts of an integrated system. Following an evaluation of currently available office systems, an online association management system called iMIS100 has been chosen to replace and enhance the existing systems. This web-based system will provide an integrated back office, e-Commerce and website. It is being configured to meet the Friends‘ requirements and is expected to come into service in the first half of the 2013-2014 financial year. Membership and Marketing At the close of June 2013, the registered number of Friends‘ members had reached just on 2,500. Various activities stimulated this new interest and growth. The decision to provide members with a 10% discount on plants for the Spring Plant Sale and then the Autumn Sale was supported by many newcomers keen to benefit from the opportunity to extend their plant stocks as well as supporting the Gardens. Additional classes in the Botanic Art program along with strong interest in attending many FRBGM Events being offered through refreshing new programs also generated numbers. Media support in announcing and describing upcoming events was also effective in delivering newcomers. Along with managing the Members' tent at the Plant Sales, members of the M&M Committee are now routinely attending the illustrated lectures in order to assist with enquiries from members and others.

A mapping exercise on the locations of members proved to be revealing and will be a useful data source for future planning. A revised membership brochure generated new interest and this will now be regularly updated. Work was also completed on a new design for the FRBGM membership card which will also double as a name badge.

The monthly eNews Bulletin continues to generate positive responses and is estimated to reach the email addresses of over 2000 members. From late 2012 a ‗Book of the Month‘ program was introduced with the support of Reader‘s Feast with book sales generating donations to the Friends. A new ‗Over the Gardens Gate‘ feature established in the eNews in 2013 generated considerable interest. During the year, in response to eNews announcements, members were also able to take advantage of generous ticket offers from some special organisations including the Australian Chamber Orchestra as well as the RBG itself. Along with member discounts, the National Gallery of Victoria provided a pass for its major ‗Napoleon‘ exhibition.

In the past year, Eckersley's, provider of supplies to artists, joined our member discount program and we also welcomed Briarswood Cottage, a B&B in Mount Martha.

The support of these and the many other organisations who so generously respond for the benefit of Friends‘ members has been most welcome and warmly appreciated. The Committee looks forward to extending these valuable links and exchanges over the coming year.

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Publications At a time when there is increasing emphasis on electronic communication, Botanic News is still a very valuable reference resource for members and those associated with the RBG. This is largely due to the enthusiasm and diligence of our contributors and all who are involved in the production of Botanic News, and it is much appreciated. It is worth noting that the 16-page full-colour edition of the newsletter has reached its ten-year milestone with the Winter 2013 issue.

The 2013 Calendar broke new ground by featuring beautiful images of small creatures associated with the plant world as well as some purely botanical subjects. All paintings featured were by our botanical illustrators.

Our Christmas card featuring Dianne Emery‘s painting ‗Fruit Salad‘ was very popular and our occasional cards have continued to sell well both at Friends‘ Events and via our website.

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Volunteers Volunteering within the FRBGM includes varied and interesting activities carried out within the following areas:

Botanic News; Botanical Illustrators; Catering and Wine Service; Editorial Advisory; Events; Exhibitions; Growing Friends; Helping Hands; Information Technology; Mail Outs; Membership and Marketing; Office; Open Gardens; Packaging; Plant Sales; Publications.

From July 2013, volunteers will also support the work of the Plant Craft Cottage with the maintenance of its garden. Thanks is due to the many members who assisted the Gardens with crowd control over the Christmas period when the Titan Arum flowered.

We congratulate the following members who were presented with Volunteer Service Awards at or after the Annual General Meeting on 12 November 2012: 10 years Rosemary Ball (Growing Friends) Maurice Castro (Council—Treasurer, Trust Fund—Secretary) Mary Hicks (Growing Friends, Mail Out) Helen Johnston (Events) Meg Miller (Growing Friends, Publications—Convener, Editor—Botanic News) Irwin Newman (Council—President, Helping Hands—Convener) 15 years June Cherrey (Growing Friends) Virginia Morrison (Growing Friends, Events) 20 years Joanna Brownell (Botanical Illustrators) Alwynne Fairweather (Botanical Illustrators) Mary Gregory (Botanical Illustrators) Heather Ironmonger (Activities, Council—Vice-President, Editor—Botanic News, Plant Sales) 30 years Frank Phillips (Council—President, Trust Fund—Chair)

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We would like to thank the dedicated Volunteers for their time and hard work over the past year. Ian Alexander Ellen Allery Samira Amo Pauline Aw Rosemary Ball Ngaire Bates Sharon Beaman Diane Beddison Sue Boekel Grant Brace Margaret Brace Elly Brodie Joanna Brownell Mary Bull Elizabeth Burchell Joyce Cameron Graeme Caple Annie Carter Maurice Castro Susan Chandler June Cherrey Jan Cheyne Andrew Churchyard Thea Clark Rosemary Cotter Wendy Crebbin Kate Crocket Anne Day Tony Delves Anna Denton Pauline Dewar Hannah DiBella Fiona Dowling Catherine Drew Sandra Edlin Hilda Elton Gabrielle Endacott Helen Fahey Alwynne Fairweather Judy Firkin Jenine Fleming Ruth Flett Nicholas Fourniotis Anne Fulton Christine Georgiou Marg Goodall John Goodwin Lucinda Grace Lyn Gras Mary Gregory

Katherin Grelis Peter Griffin Judy Hajdu Geoff Hardy Michael Hare Christine Harris Helen Heath Susan Heath Wendy Henderson Mary Hicks Philip Hill Claire Hill Sue Hoare Peter Holbeach Debra Hopkins Juliana Horsfall Richard Horsfall Kay Howden Edyta Hoxley Pam Hull Heather Ironmonger Valda Jenkins Helen Johnston Roz Jones Peter Kelly Helen Kent Tessa Killmister Richard Kirsner Geoffrey Kneebone Jennifer Le Plastrier Robyn Leszczynski Beverley Lewis Mary Lewis Peter Lewis Graeme Lunt Prue Madsen Rachel Maissan Adnan Mansour Jennifer Marshall Joan Mason Naomi McConchie Jo McGrath Merle McIntyre Rosemary McMeekin Meg Miller Angela Mitchell Adrian Mohedano Janet Moritz Stuart Morris Virginia Morrison

Terry Napier Kay Nattrass Carolyn Neary Carolyn Nette Irwin Newman David O'Beirne Elizabeth O'Keefe Pam Osborn Rosia Pasteur John Pastoriza-Piñol Heather Pearce Frank Phillips David Plant Diana Plant Georgina Ponce de Leon Lynsey Poore Estelle Redlich Carolyn Renwick Catriona Ridland Robyn Robins Jan Rosenberg Paul Rovis Marta Salamon Sandra Sanger Rhonda Sinclair Pamela Smith Richard Smith Sue Spicer Chris Spreckley Lucille Strachan Bev Teague Janet Thomson Carolyn Tomkins Lee Tregloan Peter Tregloan Judy Trenberth Catherine Trinca Priscilla Troedel Christine Trumble Robyn Tymms Jane Vinecombe Sarah Walter Mary Ward Marge Watson Catherine Watson Jan Whiting Pat Williams Eileen Wilson Wendy Wilson

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INDEPENDENT AUDIT REPORT TO THE MEMBERS OF FRIENDS OF THE ROYAL BOTANIC GARDENS, MELBOURNE INCORPORATED

We have audited the accompanying financial report, being a special purpose financial report of the Friends of the Royal Botanic Gardens, Melbourne Inc., which comprises the balance sheet as at 30 June 2013, and the statement of profit or loss and other comprehensive income, statement of changes in equity and the statement of cash flows for the year then ended, a summary of significant accounting policies, other explanatory notes and the statement by Council. THE RESPONSIBILITY OF THE COUNCIL FOR THE FINANCIAL REPORT The Council is responsible for the preparation and fair presentation of the financial report and has determined that the accounting policies described in Note 1 to the financial statements, which form part of the financial report, are consistent with the financial requirements of the Associations Incorporation Reform Act (Vic) 2012 and are appropriate to meet the needs of the members. The Council‘s responsibilities also include establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. AUDITOR’S RESPONSIBILITY Our responsibility is to express an opinion on the financial report based on our audit. No opinion is expressed as to whether the accounting policies used, as described in Note 1, are appropriate to meet the needs of the members. We conducted our audit in accordance with Australian Auditing Standards. These auditing standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor‘s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity‘s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity‘s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Council, as well as evaluating the overall presentation of the financial report. The financial report has been prepared for distribution to members for the purpose of fulfilling the Council‘s financial reporting under the Associations Incorporation Reform Act (Vic) 2012. We disclaim any assumption of responsibility for any reliance on this report or on the financial report to which it relates to any person other than the members, or for any purpose other than that for which it was prepared. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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INDEPENDENT AUDIT REPORT TO THE MEMBERS OF FRIENDS OF THE ROYAL BOTANIC GARDENS, MELBOURNE INCORPORATED (CONT’D)

INDEPENDENCE In conducting our audit, we have complied with the independence requirements of Australian professional ethical pronouncements. AUDIT OPINION In our opinion, the financial report of the Friends of the Royal Botanic Gardens, Melbourne Inc. presents a true and fair view, in all material respects of the financial position of the Friends of the Royal Botanic Gardens, Melbourne Inc. as at 30 June 2013 and of its financial performance for the year then ended in accordance with the accounting policies described in Note 1 to the financial statements. BASIS OF ACCOUNTING AND RESTRICTION ON DISTRIBUTION AND USE Without modifying our opinion, we draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purposes of fulfilling the requirements of the Associations Incorporation Reform Act (Vic) 2012 and to comply with the accounting policies described in Note 1 to the financial statements. As a result, the financial report may not be suitable for another purpose. DFK Collins Chartered Accountants

M L Port Partner

10 October 2013 Melbourne

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FRIENDS OF THE ROYAL BOTANIC GARDENS, MELBOURNE INC

STATEMENT BY COUNCIL The Council has determined that the Friends of the Royal Botanic Gardens, Melbourne Inc. is not a reporting entity as the members can obtain information they require without examining general purpose financial reports. The Council has also determined that this special purpose financial report should be prepared in accordance with the accounting policies outlined in Note 1 to the financial statements. In the opinion of the Council:

1. the financial report set out on the following pages, presents a true and fair view of the financial position of the Friends of the Royal Botanic Gardens, Melbourne Inc. as at 30 June 2013 and its performance for the year ended on that date and;

2. at the date of this statement, there are reasonable grounds to believe the Friends of the

Royal Botanic Gardens, Melbourne Inc. will be able to pay its debts as and when they fall due.

This statement is made in accordance with a resolution of the Council, and is signed for and on behalf of the Council by: Adnan Mansour Angela Mitchell Secretary Treasurer Dated this 10

th day of October 2013

21


STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2013

Note 2013

2012

Income

$

$

Membership subscriptions

80,807

72,191

Botanical art classes and workshops

168,291

133,494

Growing Friends

60,466

55,509

Sale of merchandise

20,477

28,104

Functions and excursions

31,093

24,782

Advertising in Botanic News

250

1,081

Exhibition revenue

53,151

62,141

Interest income

16,382

14,987

Donations – bequest

20,000

-

Other revenue

6,862

6,683

457,779

398,972

Expenditure Employment expenses

129,649

140,449

Botanical art classes & workshops

113,222

95,697

Growing Friends

13,221

11,246

Cost of merchandise

10,684

3,959

Membership expenses

17,080

6,257

Functions and excursions expense

18,052

15,969

Botanic News production

11,822

16,506

Exhibition expenses

24,752

53,572

Printing, stationery and postage

16,023

14,486

Communications

8,248

4,878

Audit & accounting fees 2(a) 12,050

6,000

Bank charges

3,029

2,889

Depreciation

5,226

4,019

Insurance

3,886

3,423

Repairs and maintenance

1,209

3,287

Other expenses

13,661

7,107

401,814 389,744

Profit before grants and transfers 2 55,965

9,228

Less grants to Royal Botanic Gardens Melbourne

11,500

6,500

Less transfer to Trust Fund

20,000

-

Profit before income tax 2 24,465

2,728

Income tax expense 1(a) -

-

Total comprehensive income

24,465

2,728

The accompanying notes form part of these financial statements.

22


BALANCE SHEET AS AT 30 JUNE 2013

Note

2013

2012

$

$

CURRENT ASSETS Cash assets

3

82,978

97,945

Term deposits

300,000

256,649

Receivables

4

4,225

3,089

Prepayments

8,656

2,869

TOTAL CURRENT ASSETS

395,859 360,552

NON-CURRENT ASSETS Property, plant and equipment

5

14,637

15,340

TOTAL NON-CURRENT ASSETS

14,637 15,340

TOTAL ASSETS

410,496 375,892

CURRENT LIABILITIES Payables

6

99,746

81,481

Provisions

7

30,062

38,188

TOTAL CURRENT LIABILITIES

129,808 119,669

TOTAL LIABILITIES

129,808 119,669

NET ASSETS

280,688 256,223

MEMBERS' FUNDS Accumulated funds

280,688

256,223

MEMBERS' FUNDS

280,688 256,223


23


STATEMENT OF CASH FLOWS YEAR ENDED 30 JUNE 2013

Note 2013

2012

$

$

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from members and customers

484,557

432,597

Payments to suppliers and employees

(436,532)

(402,529)

Interest received

16,382

19,642

Payments to Trust Fund

(20,000)

-

Grants to Royal Botanic Gardens, Melbourne

(11,500)

(6,500)

Net cash provided by/(used in) operating activities

32,907

43,210

CASH FLOWS FROM INVESTING ACTIVITIES Funds placed on term deposit

(43,351)

-

Fixed asset purchases

(4,523)

(1,031)

Net Cash provided by/(used in) investing activities

(47,874)

(1,031)

Net increase/(decrease) in cash held

(14,967)

42,179

Cash at the beginning of the financial year

97,945

55,766

Cash at the end of the financial year

8(a) 82,978

97,945

STATEMENT OF CHANGES IN EQUITY YEAR ENDED 30 JUNE 2013

Accumulated Funds

Members’ Funds

$

$

Balance as at 1 July 2011

253,495

253,495

Comprehensive income for the year

2,728

2,728

Balance as at 30 June 2012

256,223

256,223

Comprehensive income for the year

24,465

24,465

Balance as at 30 June 2013

280,688

280,688


24


NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES This financial report is a special purpose financial report prepared in order to satisfy the financial reporting requirements of the Associations Incorporation Reform Act (Vic) 2012. The Council has determined that the Friends of the Royal Botanic Gardens Melbourne Inc (the Friends) is not a reporting entity. The financial report has been prepared in accordance with the requirements of the Associations Incorporation Reform Act (Vic) 2012 and the following Australian Standards: AASB 101: Presentation of Financial Statements AASB 107: Statement of Cash Flows AASB 108: Accounting Policies, Changes in Accounting Estimates and Error AASB 110: Events after the Reporting Period AASB 112: Income Taxes AASB 1031: Materiality AASB 1048: Interpretation and Application of Standards The Council has determined that the accounting policies adopted are appropriate to meet the needs of the members. No other applicable Australian Accounting Standards, Australian Accounting Interpretations or other authoritative pronouncements of the Australian Accounting Standards Board have been applied. These financial statements do not conform with International Financial Reporting Standards. The financial report is prepared on an accrual basis and is based on historical costs, and does not take into account changing money values or, except where specifically stated, current valuations of non-current assets. The following material accounting policies, which are consistent with the previous period, unless otherwise stated, have been adopted in the preparation of this financial report: (a) Income tax The Friends is a non-profit association exempt from income tax under Section 50-10 of the Income Tax Assessment Act 1997. (b) Property, plant and equipment Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation. The depreciable amount of all fixed assets is depreciated over the useful life of the asset to the Friends commencing from the time the asset is held ready for use.

25



NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (c) Employee entitlements Provision is made for the Friends‘ liability for employee entitlements arising from services rendered by employees to balance date. Employee entitlements expected to be settled within one year together with entitlements arising from wages and salaries and annual leave that will be settled after one year have been measured at the nominal amount. Other employee entitlements payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those entitlements. Contributions are made by the Friends to an employee superannuation fund and are charged as an expense when incurred. The Friends have no legal obligation to provide benefits to employees on retirement. (d) Revenue Revenue from the sale of goods is recognised upon delivery of goods to customers. Revenue from the rendering of services is recognised upon the delivery of the service to customers and members. Membership revenue is recognised on an accrual basis. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial asset. Other revenue is brought to account as income on an accrual basis. (e) Unearned revenue Membership revenue that is received before balance date and related to the subsequent financial year is brought to account as a liability. (f) Cash For the purposes of the Statement of Cash Flows, cash includes cash on hand, at bank and on deposit. (g) Comparative figures Where required, comparative figures have been adjusted to conform with changes in presentation for the current financial year. (h) 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 the expense. Receivables and payables in the Balance Sheet are shown inclusive of GST.

26



2013

2012

$

$

NOTE 2: PROFIT BEFORE INCOME TAX

Profit before income tax has been determined after:

(a) Expenses Depreciation of plant and equipment

5,226

4,019

Remuneration of auditor - 2013 audit - DFK Collins

5,500

-

- 2012 audit - Baumgartner Partners

6,550

-

- 2011 audit - Baumgartner Partners

-

6,000

NOTE 3: CASH ASSETS

Cash on hand

300

350

Cash at bank

9,033

24,327

Cash on deposit

73,645

73,268

82,978

97,945

NOTE 4: RECEIVABLES Accrued income

2,055

1,926

Sundry debtors

2,170

1,163

4,225

3,089

27



2013

2012

$

$

NOTE 5: PROPERTY, PLANT AND EQUIPMENT

Plant and equipment at cost

37,784

36,876

Less: Accumulated depreciation

(23,147)

(21,536)

14,637

15,340

(a) Movements in carrying amounts Movements in the carrying amounts of plant and equipment between the beginning

and the end of the financial year are detailed below:

Balance at beginning of year

15,340

18,328 Additions

4,523

1,031

Disposals

-

- Depreciation expense

(5,226)

(4,019)

Carrying amount at the end of the year 14,637

15,340

NOTE 6: PAYABLES

CURRENT

Subscriptions received in advance

41,212

35,565

Functions & events paid in advance

3,023

4,073

Botanical art classes paid in advance 20,373

8,932

Botanical workshops paid in advance 6,062

10,573

Sundry creditors and accruals

29,076

22,339

99,746

81,481

28



2013

2012

$

$

NOTE 7: PROVISIONS

CURRENT Provision for employee annual leave

12,784

15,623

Provision for long service leave

17,278

22,565

Total provision for employee entitlements 30,062

38,188

NOTE 8: CASH FLOW INFORMATION

(a) Reconciliation of profit after income tax to net cash from operating activities

Profit after income tax expense for the year

24,465

2,728

Adjustments for: Depreciation

5,226

4,019

Change in operating assets and liabilities: (Increase)/decrease in trade and other

receivables

(6,923)

4,717 Increase/(decrease) in trade and other payables

6,737

6,981

Increase/(decrease) in other liabilities

11,526

16,582

Increase/(decrease) in provisions

(8,126)

8,183

Net cash from operating activities

32,907

43,210

(b) The Friends have no credit stand-by or financing facilities in place

(c) There were no non-cash financing or investing activities during the period

NOTE 9: ASSOCIATION DETAILS

The Friends is incorporated under the Associations Incorporation Reform Act (Vic) 2012 and is domiciled in Australia. The registered office and principal place of business is:

FRIENDS OF THE ROYAL BOTANIC GARDENS, MELBOURNE INC.

Gate Lodge, 100 Birdwood Avenue

MELBOURNE VIC 3004

NOTE 10: EVENTS AFTER THE REPORTING PERIOD On 1 July 2013, the Plant Craft Cottage Group Inc. was merged into the Friends of the Royal Botanic Gardens, Melbourne Incorporated. This merger brought financial assets of $39,021 and liabilities of $18,681, being net assets of $20,340, to the Friends as well as 106 additional members.

29

FRIENDS OF THE ROYAL BOTANIC GARDENS, MELBOURNE TRUST FUND

ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2013

Introduction The Friends of the Royal Botanic Gardens, Melbourne Trust Fund (the Fund) is an endorsed tax concession charity and deductible gift recipient body under taxation legislation. Its purposes are to conserve, protect and foster the development of the Royal Botanic Gardens Melbourne and the National Herbarium of Victoria. The income of the Fund is comprised of returns from its investments, tax-deductible donations, and bequests. In 2009, in consultation with the Friends‘ Council and the then Director and Chief Executive of the Royal Botanic Gardens it was agreed that the generous bequest to the Fund by the late Helen McLellan would be invested to provide a steady stream of returns whilst ensuring, over the longer run, that the Fund‘s corpus would be maintained in real terms. In this way, a steady stream of grants to the RBG could be provided on a long-term sustainable basis. The Fund‘s policy in recent times to provide not less than $100,000 per year in grants to the Gardens has now been superseded by a requirement under the public ancillary funds legislation to distribute each year a minimum of 4% of the Fund‘s opening net assets. Since 2009, the Fund has been the major funding source for the Friends‘ grants to the RBG. Coordination of funding for those grants between the Friends‘ Council and the Trust Fund has been undertaken through the Grants Committee, which is comprised of the President, Secretary and Treasurer of the Friends, and the four Trustees of the Trust Fund. The coordination links with Council were further strengthened following the passing of a special resolution at the 2012 Friends‘ Annual General Meeting by which the Chair of the Fund has become an ex-officio member of Council. More effective contact with the RBG has also been established with the Director and Chief Executive of the Royal Botanic Gardens meeting with the Grants Committee once a year to exchange views about future projects in the Melbourne Gardens and how the Friends might assist with funding. Government Regulation The Fund is a public Ancillary Fund, and is subject to the legislated guidelines for public ancillary funds which came into force on 1 January 2012. To ensure that the Fund continued to be endorsed as a tax concession charity and a deductible gift recipient body, some amendments to the Trust Deed were put to, and approved by, the Friends‘ Annual General Meeting in November 2012. Those changes to the Trust Deed were reported to the Australian Taxation Office (ATO) as required. While the majority of the changes were accepted by the ATO as being consistent with the Guidelines, it requested that changes to the clauses dealing with the Discontinuance and the Purpose of the Trust be made. The changes are procedural only, as the ATO has stated the Trust Fund continues to enjoy protection from administrative penalty under section 426-120 of the Taxation Administration Act 1953. The proposed amendments are the subject of the special resolutions in the Notice of Meeting at pages 4 and 5 of this document. The Australian Charities and Not-for-profits Commission (ACNC) was set up under the 2012 Act to regulate and administer an Australia-wide regulatory system for not for profit entities. Registration with the ACNC is a necessary precondition for access to certain Commonwealth taxation concessions such as those currently enjoyed by the Trust Fund. The Trust Fund has been duly registered with the ACNC, having met all the statutory requirements.

30

Investment Strategy The provision of a steady and sustainable annual income flow to fund grants to the Royal Botanic Gardens, Melbourne is a primary requirement. Accordingly, the Fund‘s investment policy aims to ensure as high a level of distributable sums as prudently achievable consistent with maintaining, in the longer term, the real capacity of the ―corpus‖. (The corpus is defined as the value of the Helen McLellan bequest received in 2008.) Strategically, the Fund is targeting a return from income and capital, but before annual drawings and costs, of 4% above the Consumer Price Index (CPI) over a market cycle. The guidelines for asset allocation are broadly, 30% for Cash and fixed interest assets, and 70% for equities. Prudent diversification across asset classes and securities will be employed to mitigate negative outcomes; and investments will be selected on the basis that a negative return after costs, in any year, will be achieved less than once every 5 years. It is recognised that, inevitably, market conditions will vary from year to year, and that deviations from the strategic targets will occur from time to time. Financial statements

Audited financial statements are at pages 32-39 and comparative figures for the previous year are shown in brackets. The Fund‘s recorded income in 2012/13 was $286,621 ($25,464); a rise of $261,157, largely due to the turnaround from a realised loss on investments of $142,033 in 2011/12 to a profit of $105,296 in the 2012/13 year. The other components of that income and corresponding figures for the preceding year were as follows: Distributions Received $9,616 ($14,715) Dividends Received $85,179 ($80,603) Franking Credits $31,910 ($30,712) Donations – Other $35,831 ($18,989) The public Appeal this year made a small but useful contribution to the year‘s income. The Trust Fund also benefited from a bequest of $20,000 from the estate of the late Leila Rachel Paterson. Total Expenditure for the current year was $52,413 ($40,368). Grants paid to the RBG totalled $102,789 in the current year ($117,417). Details of the grants are reported on pages 9-10. Grants paid to the Gardens from the Trust Fund for the four years to 30 June 2013 totalled $552,429. At 30 June 2013, the Trust Funds stood at $2,890,477 ($2,569,658) – a rise of $320,819 on the previous year.

31

Performance of the Fund This year again, the Trustees have been ably advised and assisted by UBS Wealth Management Australia Ltd. The Trustees thank our UBS Client Advisor, Mr Tim James, for his help in achieving the Fund‘s objectives in the face of continuing market challenges. Some indicators of the Fund‘s performance for the four financial years, 2009/10 to 2012/13 are shown in the following table. FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13

Net income 2.65% 6.79% 3.38% 3.09%

Imputation credits 1.26% 2.80% 1.16% 1.22%

Gross Income 3.91% 9.60% 4.56% 4.31%

Capital growth 8.09% 2.19% -9.51% 11.10%

Total return 12.00% 11.78% -.4.96% 15.41%

S&P/ASX200 Accumulation Index 13.15% 11.73% -6.71% 22.75%

Portfolio value end FY $2.575m $2.739m $2.534m $2.871m

Corpus in constant (inflation adjusted) terms, in $million (*)

$2.6m $2.7m $2.9m $3.0m

(*)The ―real value‖ of the corpus is expressed at (constant) June 2008 prices. It was estimated using the CPI, and rounded to the nearest $100,000.

Obviously, the S&P/ASX200 Accumulation Index is not a rigorously appropriate performance yardstick for the totality of the Fund‘s assets, given that almost one third of the assets are held in cash and fixed interest securities, although it is useful as an indicator of price movement for domestic equities. When evaluating the Fund‘s performance over the four years, 2009/10 to 2012/13, it should be borne in mind that more than $550,000 was paid in grants to the RBG over the period. Trustees The four Trustees of the Trust Fund are Mr Frank Phillips, Mr Peter Griffin, Mrs Janet Thomson and Mr Maurice Castro. At the start of the financial year, the Trustees elected Mr Frank Phillips as Chairman, and Mr Maurice Castro as Secretary of the Trust for the year. Mr Griffin and Mr Castro were appointed in 2009 and are therefore due to retire this year; but being eligible, they will seek re-appointment for a further four-year term at the forthcoming Annual General Meeting of the Friends.

32

FRIENDS OF THE ROYAL BOTANIC GARDENS, MELBOURNE TRUST FUND ABN: 78 402 826 907

SPECIAL PURPOSE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2013

INDEPENDENT AUDIT REPORT TO THE MEMBERS OF FRIENDS OF THE ROYAL BOTANIC GARDENS, MELBOURNE TRUST FUND

We have audited the accompanying financial report, being a special purpose financial report of the Friends of the Royal Botanic Gardens, Melbourne Trust Fund, which comprises the balance sheet as at 30 June 2013, and the statement of comprehensive income and the statement of cash flows for the year then ended, a summary of significant accounting policies, other explanatory notes and the declaration by Trustees. THE RESPONSIBILITY OF THE TRUSTEES FOR THE FINANCIAL REPORT The Trustees are responsible for the preparation and fair presentation of the financial report and has determined that the accounting policies described in Note 1 to the financial statements, which form part of the financial report, are appropriate to meet the needs of the Trustees. The Trustees responsibilities also include establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. AUDITOR’S RESPONSIBILITY Our responsibility is to express an opinion on the financial report based on our audit. No opinion is expressed as to whether the accounting policies used, as described in Note 1, are appropriate to meet the needs of the members. We conducted our audit in accordance with Australian Auditing Standards. These auditing standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor‘s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity‘s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity‘s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Trustees, as well as evaluating the overall presentation of the financial report. The financial report has been prepared for distribution to members for the purpose of fulfilling the Trustees financial reporting requirements. We disclaim any assumption of responsibility for any reliance on this report or on the financial report to which it relates to any person other than the members, or for any purpose other than that for which it was prepared. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

33

INDEPENDENT AUDIT REPORT TO THE MEMBERS OF

FRIENDS OF THE ROYAL BOTANIC GARDENS, MELBOURNE TRUST FUND (CONT’D) INDEPENDENCE In conducting our audit, we have complied with the independence requirements of Australian professional ethical pronouncements. AUDIT OPINION In our opinion, the financial report of the Friends of the Royal Botanic Gardens, Melbourne Trust Fund presents a true and fair view, in all material respects of the financial position of the Friends of the Royal Botanic Gardens, Melbourne Trust Fund as at 30 June 2013 and of its financial performance for the year then ended in accordance with the accounting policies described in Note 1 to the financial statements. BASIS OF ACCOUNTING AND RESTRICTION ON DISTRIBUTION AND USE Without modifying our opinion, we draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purposes of fulfilling the requirements of the Trustees and to comply with the accounting policies described in Note 1 to the financial statements. As a result, the financial report may not be suitable for another purpose. DFK Collins Chartered Accountants

M L Port Partner

10 October 2013 Melbourne

34


DECLARATION BY TRUSTEES

The Trustees have determined that the Friends of the Royal Botanic Gardens, Melbourne Trust Fund is not a reporting entity as those to whom the Trustees are required to report pursuant to the Trust Deed can obtain information they require without examining general purpose financial reports. The Trustees have also determined that this special purpose financial report should be prepared in accordance with the accounting policies outlined in Note 1 to the financial statements. In the opinion of the Trustees:

1. the financial report set out on the following pages, presents a true and fair view of the financial position of the Friends of the Royal Botanic Gardens, Melbourne Trust Fund as at 30 June 2013 and its performance for the year ended on that date and;

2. at the date of this declaration, there are reasonable grounds to believe the Friends of the

Royal Botanic Gardens, Melbourne Trust Fund will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Trustees. Frank Phillips Maurice Castro Chairman Secretary Dated this 10

th day of October 2013.

35

Note 2013 2012

$ $

Revenue

Distributions Received 9,616 14,715

Dividends Received 85,179 80,603

Franking Credits 31,910 30,712

Donations - Other 35,831 18,989

Realised Profit(Loss) on Investments 105,296 (142,033)

Interest Received 18,789 22,478

286,621 25,464

Expenditure

Audit Fees 3,850 4,620

Accounting Fees 1,650 2,970

Depreciation 345 345

Management Fees 31,000 31,697

Office Supplies 2,162 -

Secretarial Services 1,928 736

Other 8 11,478 -

Total Expenses 52,413 40,368

Profit(Loss) before income tax and distributions to RBG 234,208 (14,904)

Income tax expense - -

Profit(Loss) after income tax 234,208 (14,904)

Unrealised increase/(decrease) in investments 189,400 (122,437)

Less grants to the Royal Botanic Gardens Melbourne (102,789) (117,417)

COMPREHENSIVE PROFIT(LOSS) FOR THE YEAR 320,819 (254,758)


STATEMENT OF COMPREHENSIVE INCOME



36

Note 2013 2012

$ $

CURRENT ASSETS

Cash and cash equivalents 2 282,225 350,595

Receivables 3 34,564 34,236

Financial Assets 4 2,589,187 2,182,738

TOTAL CURRENT ASSETS 2,905,976 2,567,569

NON-CURRENT ASSETS

Furniture & Fixtures 5 1,745 2,090

TOTAL NON-CURRENT ASSETS 1,745 2,090

TOTAL ASSETS 2,907,721 2,569,658

CURRENT LIABILITIES

Creditors and accruals 17,244 -

TOTAL LIABILITIES 17,244 -

NET ASSETS 2,890,477 2,569,658

TRUST FUNDS

Accumulated Reserves 6 2,890,477 2,569,658

TRUST FUNDS 2,890,477 2,569,658



BALANCE SHEET AS AT 30 JUNE 2013

37


Note 2013 2012

$ $

CASH FLOWS FROM OPERATING ACTIVITIES

Donations - Other 36,701 19,429

Net cash provided by/ (used in) operating activities 36,701 19,429

CASH FLOWS FROM INVESTING ACTIVITIES

Term Deposits transferred from Investment Portfolio (50,000) 250,000

Dividends Received 85,179 79,440

Interest Received 18,789 22,478

Distributions Received 9,616 14,088

Franking Credits 30,712 79,621

Management Fees (31,000) (31,697)

Share Purchases (1,433,375) (2,687,650)

Consideration on Sale of Shares 1,371,621 2,638,783

Secretarial Services (4,090) (736)

Account and Audit Fees (7,590) (7,590)

Grants Adjustment to Reserve (94,933) (117,417)

Net Cash provided by/(used in) investing activities (105,071) 239,321

Net increase/(decrease) in cash held (68,370) 258,750

Cash at the beginning of the financial year 350,595 91,845

Cash at the end of the financial year 7(a) 282,225 350,595


STATEMENT OF CASH FLOWS


38

FRIENDS OF THE ROYAL BOTANIC GARDENS, MELBOURNE TRUST FUND NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES This financial report is a special purpose financial report prepared in order to satisfy the financial reporting requirements of the Trustees. The Trustees have determined that the Friends of the Royal Botanic Gardens, Melbourne Trust Fund is not a reporting entity. The financial report has been prepared in accordance with the following Australian Standards: AASB 101: Presentation of Financial Statements AASB 107: Statement of Cash Flows AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors AASB 110: Events after the Balance Sheet Date AASB 112: Income Taxes AASB 116: Property, Plant and Equipment AASB 118: Revenue AASB 1031: Materiality No other applicable Australian Accounting Standards, Australian Accounting Interpretations or other authoritative pronouncements of the Australian Accounting Standards Board have been applied. These financial statements do not conform with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB). The financial report is prepared on an accrual basis and is based on historic costs, and does not take into account changing money values or, except where specifically stated, current valuations of non-current assets. The following material accounting policies, which are consistent with the previous period, unless otherwise stated, have been adopted in the preparation of this financial report: (a) Income Tax The Friends of the Royal Botanic Gardens, Melbourne Trust Fund is a non-profit organisation and exempt from income tax under Section 50-10 of the Income Tax Assessment Act 1997. (b) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation. The depreciable amount of all fixed assets is depreciated over the useful life of the asset to the Trust Fund commencing from the time the asset is held ready for use. (c) Revenue Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial asset. Other revenue is brought to account as income on an accrual basis. (d) Cash For the purposes of the Cash Flow Statement, cash includes cash on hand, at bank and on deposit. (e) Comparative figures Where required, comparative figures have been adjusted to conform with changes in presentation for the current financial year.

39

2013 2012

$ $

NOTE 2: CASH ASSETS

UBS 337396 CMT 39,689 18,926

UBS 337397 CMT 42,536 81,669

NAB Term Deposit 200,000 250,000

282,225 350,595

NOTE 3: RECEIVABLES

Franking Credits Refundable 31,910 30,712

Sundry Debtors 2,654 3,523

34,564 34,235

NOTE 4: FINANCIAL ASSETS

UBS 337396 Portfolio at Cost 1,650,372 1,500,436

Change in Market Value 54,410 31,812

1,704,782 1,532,248

UBS 337397 Portfolio at Cost 842,407 663,198

Change in Market Value 41,998 (12,709)

884,405 650,490

2,589,187 2,182,738

NOTE 5: FURNITURES & FITTINGS

Furniture and Fittings at Cost 3,450 3,450

Less Accumulated Depreciation (1,705) (1,360)

1,745 2,090

NOTE 6: ACCUMULATED FUNDS

Accumulated funds at the beginning of the financial year 2,569,658 2,824,416

Comprehensive profit/(loss) for the year 320,819 (254,758)

Accumulated funds at the end of the financial year 2,890,477 2,569,658

NOTE 7: CASH FLOW INFORMATION

Reconciliation of cash

UBS 337396 CMT 39,689 18,926

UBS 337397 CMT 42,536 81,669

NAB Term Deposit 200,000 250,000

282,225 350,595

NOTE 8: OTHER EXPENSES

Other expenses relates to prior year expenses for audit fees and other sundry costs.


NOTES TO THE FINANCIAL STATEMENTS

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