ABN 14 073 675 457 Annual Report 30 June · ABN 14 073 675 457 Annual Report 30 June 2016 . The...

The Humour Foundation

ABN 14 073 675 457

Annual Report

30 June 2016


Contents

1

Directors’ report ....................................................................................................................................................... 2

Lead auditor’s independence declaration ................................................................................................................ 5

Statement of comprehensive income ..................................................................................................................... 6

Statement of financial position ................................................................................................................................ 7

Statement of changes in members’ funds .............................................................................................................. 8

Statement of cash flows .......................................................................................................................................... 9

Notes to the financial statements .......................................................................................................................... 10

Directors’ declaration ............................................................................................................................................. 23

Declaration by Chief Executive Officer .................................................................................................................. 25

Independent auditor’s report ................................................................................................................................. 26


Directors’ report For the year ended 30 June 2016

2

Directors’ report The directors present their report together with the financial report of The Humour Foundation (the Company or the Foundation) for the financial year ended 30 June 2016 and the auditor’s report thereon.

1. DirectorsThe directors of the Company at any time during or since the end of the financial year are:

Director Experience, special responsibilities and other directorships Peter W Jess Peter was appointed as a director on 17 January 1997. Peter was a founding member

of the Foundation and is currently Treasurer. Peter is the principal of PJA Accountants. Peter is Chairman for Tomax Logistics Pty Ltd and Envirogrower Pty Ltd. He is also a Director of the Indigenous Sports Network Pty Ltd, Image Sportivo Internationale Pty Ltd, Sports Health Check Ltd, and Global Sports Solutions Pty Ltd. Peter is a Chartered Accountant, Certified Public Accountant, Chartered Tax Advisor and Chartered Secretary and Administrator. Peter holds a Master of Law and a Diploma of Business/Accounting.

Mark G Smith (FAMI, CPM, FAIM, FAICD)

Mark was appointed as a director on 29 November 2004. Mark has extensive global experience in the Manufacturing and FMCG sectors across Australasia, USA, UK and Asia Pacific. He was the Managing Director of Cadbury Schweppes Australia and New Zealand from 2003-2007. Over a 16 year career with the Cadbury Schweppes group, he held senior management positions in Australia, the UK and North America, including Director of Marketing for Cadbury Trebor Basset in the UK. Mark was also the past Chairman of Manassen Foods Group and has held senior marketing management positions with Unilever and Uncle Toby's. Current directorshipsNon-Executive Director and Chairman of Patties Foods since April 2013 Non-Executive Director of GUD Holdings since 2009 Non-Executive Director of Toll Holdings since 2007 Non-Executive Director of The Humour Foundation since 2004 and Chairman since 2009 Chairman of Enactus since 2007

Tristan Landers Tristan was appointed as a director on 24 June 2009. Tristan is a management consultant and the Principal of IN21, leading a practice of strategy and change professionals. Tristan has led a number of businesses and teams in financial services and consulting with experience and expertise in leadership, strategy development, retail banking, organisational change, sustainability, organisation culture and diversity, community investment, Indigenous community development and banking, process optimisation and people development. Tristan has a Bachelor of Arts, a Bachelor of Laws and is a Graduate of the Australian Institute of Company Directors. Tristan is a director of YWCA Australia, YWCA NSW and Cutcliffe Consulting Pty Ltd, also trading as IN21, and an Ambassador of the Australian Indigenious Education Foundation. Tristan resigned from the board on the 14 July 2016.


Directors’ report (continued) For the year ended 30 June 2016

3

1. Directors (continued)

2. Company secretaryMelinda Farrell was appointed to the position of company secretary on 9 January 2008. Melinda has managementexperience across a variety of sectors. She has been in her current role of Chief Executive Officer of The HumourFoundation since 2007. Melinda has a Master of Business Administration and Bachelor of Education.

3. Directors’ meetingsThe number of directors’ meetings (including meetings of Committees of Directors) and number of meetingsattended by each of the directors of the Company during the financial year are:

Director Board Meetings Finance Committee

Meetings Fundraising

Committee Meetings Attended Entitled Attended Entitled Attended Entitled

Peter W Jess 5 8 2 2 1 1Mark G Smith 8 8 2 2 - -Tristan Landers 7 8 - - - -Damien Meredith 4 8 - - 1 1David Pettigrew 7 8 - - 1 1

4. Members’ liabilityThe Foundation is a company limited by guarantee. In the event of the Foundation being wound up, the liability ofeach member is limited to $20. The total amount that members of the Company are liable to contribute as at 30June 2016 is $300 (2015: $380).

Director Experience, special responsibilities and other directorships

Damien Meredith Damien was appointed as a director on 24 June 2009. Damien is the Chief Operating Officer Kia Motors Australia. Damien is also a director of D. Meredith Pty Ltd.

David Pettigrew David was appointed as a director on 24 June 2009. David has worked in the not for profit sector for over 17 years and is currently the Director and owner of Nourish NFP Pty Ltd, a consultancy to the not for profit sector.


Directors’ report (continued) For the year ended 30 June 2016

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5. Company objectives, strategies and principal activitiesMission and objectivesTo be the leading Australian humour in health charity by promoting and delivering the positive health benefits ofhumour in a sustainable and effective manner.

Principal activities and strategiesThe principal activities of the Company during the course of the financial year were to raise funds to operatevarious programs designed to achieve the following short and long term objectives:

Short term

• To grow revenue to meet the short term needs of programs in a sustainable manner.

Long term

• Deliver the health benefits of humour to the Australian community.• Promote awareness and understanding of how the Company makes a positive difference through humour.• Drive sustainable sources of funding in order to meet future program needs.

There were no significant changes in the nature of the activities of the Company during the year.

6. Review of performanceDuring the year the Company's income mainly came from donations, grants and fundraising. Expenses wereprimarily incurred through program costs and maintaining the national office.

The operating deficit for the year ended 30 June 2016 was $487,782 (2015: $39,807 surplus).

Apart from operating surplus, performance is measured by the number of people that visited each of the 23designated hospitals across Australia each year.

7. Significant changes in the state of affairsIn the opinion of the directors there were no significant changes in the state of affairs of the Company thatoccurred during the financial year under review.

8. Lead auditor’s independence declarationThe Lead auditor's independence declaration is set out on page 5 and forms part of the Directors' report for thefinancial year ended 30 June 2016.

This report is made in accordance with a resolution of the directors:

Mark Smith

Chairman

Dated at Melbourne, this 4th day of November 2016


Statement of comprehensive income For the year ended 30 June 2016

6

Statement of comprehensive income In AUD Note 2016 2015 Income 4 3,576,825 3,232,090 Marketing costs (3,117) (561)Administration costs (481,992) (373,478)Program costs (2,053,170) (1,817,919)Fundraising costs (1,554,442) (1,038,111)Operating (deficit)/surplus before interest income (515,896) 2,021 Interest income 28,114 37,786 (Deficit)/surplus for the year (487,782) 39,807 Other comprehensive income - -Total comprehensive income for the year (487,782) 39,807

The notes on pages 10 to 22 are an integral part of these financial statements.


Statement of financial position As at 30 June 2016

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Statement of financial position In AUD Note 2016 2015 Assets Cash and cash equivalents 6 1,519,547 1,907,421Trade and other receivables 7 101,724 100,391Prepayments 7,360 18,784Total current assets 1,628,631 2,026,596 Trade and other receivables 7 60,415 58,972Property, plant and equipment 8 8,544 19,353Intangible assets 9 74,084 105,265Total non-current assets 143,043 183,590Total assets 1,771,674 2,210,186 Liabilities Trade and other payables 10 173,985 161,738Employee benefits 11 81,468 66,154Total current liabilities 255,453 227,892 Employee benefits 11 65,681 43,972Total non-current liabilities 65,681 43,972Total liabilities 321,134 271,864Net assets 1,450,540 1,938,322 Equity Retained surplus 1,450,540 1,938,322Total equity 1,450,540 1,938,322



Statement of changes in members’ funds For the year ended 30 June 2016

8

Statement of changes in members’ funds

in AUD

Retained surplus Total

Balance as at 1 July 2014 1,898,515 1,898,515 Surplus for the year 39,807 39,807Other comprehensive income - -Total comprehensive income for the year 39,807 39,807

Balance as at 30 June 2015 1,938,322 1,938,322 Balance as at 1 July 2015 1,938,322 1,938,322 Deficit for the year (487,782) (487,782)Other comprehensive income - -Total comprehensive income for the year (487,782) (487,782)

Balance as at 30 June 2016 1,450,540 1,450,540 The notes on pages 10 to 22 are an integral part of these financial statements.


Statement of cash flows For the year ended 30 June 2016

9

Statement of cash flows In AUD Note 2016 2015 Cash flows from operating activities Cash receipts from customers 3,575,492 3,210,450Cash paid to suppliers and employees (3,990,037) (3,158,432)Cash (used in)/generated from operations (414,545) 52,018Interest received 28,114 37,786Net cash (used in)/from operating activities 6 (386,431) 89,804 Cash flows from investing activities Purchase of property, plant and equipment 8 - (1,553)Purchase of intangibles 9 - (48,520)Acquisition of term deposits (1,443) (1,730)Net cash used in investing activities (1,443) (51,803) Cash flows from financing activities - -Net cash from financing activities - - Net (decrease)/increase in cash and cash equivalents (387,874) 38,001Cash and cash equivalents at beginning of year 1,907,421 1,869,420Cash and cash equivalents at end of year 6 1,519,547 1,907,421



Notes to the financial statements For the year ended 30 June 2016

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Notes to the financial statements 1. Reporting entity

The Humour Foundation (the Company or the Foundation) is a company incorporated and domiciled in Australia. The address of the Company's registered office is Level 1, 28 Bridge St, Pymble, NSW 2073.

The Foundation is a company limited by guarantee. In the event of the Foundation being wound up, the liability of each member is limited to $20. The number of members as at 30 June 2016 was 15 (2015: 19).

The Company is a not-for-profit entity and is primarily involved in raising funds to operate various programs designed to use the benefits of humour to promote quality of life.

2. Basis of preparation

(a) Statement of compliance The financial statements are general purpose reduced disclosure financial statements which have been prepared in accordance with Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board (AASB), the Charitable Act (1946), the Charitable Collections Regulations (1947) WA and the Australian Charities and Not-for-profits Commission Act 2012.

The financial statements were approved by the Board of Directors on 4th November 2016.

(b) Basis of measurement The financial statements have been prepared on the historical cost basis.

(c) Functional and presentation currency These financial statements are presented in Australian dollars, which is the Company's functional currency.

(d) Use of estimates and judgements The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

It was concluded that judgements and estimates made by management on the application of Australian Accounting Standards did not have a significant effect on the financial report.


Notes to the financial statements (continued) For the year ended 30 June 2016

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3. Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

(a) Financial instruments (i) Non-derivative financial assets

Financial assets are recognised initially on the date at which the Company becomes a party to the contractual provisions of the instrument.

The Company's non-derivative financial assets are cash and cash equivalents and trade and other receivables.

Cash and cash equivalents comprise cash balances and call deposits with original maturities of three months or less from the acquisition date that are subject to an insignificant risk of changes in their fair value, and are used by the Company in the management of its short-term commitments.

Trade and other receivables are recognised initially at fair value and are subsequently measured at amortised cost, less any impairment losses (see note 3(d)).

(ii) Non-derivative financial liabilities Financial liabilities are recognised initially on the date at which the Company becomes a party to the contractual provisions of the instrument. The Company derecognises a financial liability when its contractual obligations are discharged or cancelled or expire.

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

The Company's non-derivative financial liabilities are trade and other payables. Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are measured at amortised cost using the effective interest method.

(b) Property, plant and equipment (i) Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.

Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net within other income in profit or loss.

(ii) Subsequent costs and depreciation The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.

Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value.



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3. Significant accounting policies (continued) (b) Property, plant and equipment (continued) (ii) Subsequent costs and depreciation (continued)

Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset.

The estimated useful lives for the current and comparative years are as follows: • Office equipment 3-4 years

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(c) Intangible assets (i) Recognition and measurement

Intangible assets that are acquired by the Company and have finite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses.

(ii) Subsequent expenditure and amortisation Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the

specific asset to which it relates. All other expenditure is recognised in profit or loss as incurred. Intangible assets are amortised on a straight-line basis in profit or loss over their estimated useful lives, from the date that they are available for use.

The estimated useful lives for the current and comparative years are as follows: • Computer software 3-4 years

Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(d) Impairment of financial assets A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.

Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Company on terms that the Company would not consider otherwise or indications that a debtor or issuer will enter bankruptcy.

The Company considers evidence of impairment for receivables at both a specific asset and collective level. All individually significant receivables are assessed for specific impairment and those found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Receivables that are not individually significant are collectively assessed for impairment by grouping together receivables with similar risk characteristics.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account against receivables. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.



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3. Significant accounting policies (continued) (e) Employee benefits (i) Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions to a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognised as personnel expenses in profit or loss in the periods during which services are rendered by employees.

(i) Other long-term employee benefits The Company’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Remeasurements are recognised in profit or loss in the period in which they arise.

(ii) Short-term employee benefits Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(f) Income (i) Donations and fundraising

The Humour Foundation is a not for profit organisation and receives significant income from donations and fundraising. Donations and proceeds from fundraising are recorded as income when they are received.

(ii) Grants and sponsorship Grants received on the condition that specified services are delivered, or conditions are fulfilled, are considered reciprocal. Such grants are initially recognised as a liability, and then subsequently recognised in income as services are performed or conditions are fulfilled. Income from non-reciprocal grants is recognised when received.

(iii) Interest income Interest income is recognised as it accrues in profit and loss using the effective interest method.

(g) Income tax The Company is a registered charity and is exempt from income tax under Section 50-5 of the Income Tax Assessment Act 1997.



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3. Significant accounting policies (continued) (h) New standards and interpretations not yet adopted

A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 July 2015, and have not been applied in preparing these financial statements. Those which may be relevant to the Company are set out below. The Company does not plan to adopt these standards early.

AASB 9 Financial Instruments (2014)

AASB 9, approved in December 2014, replaces the existing guidance in AASB 139 Financial Instruments: Recognition and Measurement. AASB 9 includes revised guidance on the classification and measurement of financial instruments, including a new expected credit loss model for calculating impairment on financial assets, and the new general hedge accounting requirements. It also carries forward the guidance on recognition and derecognition of financial instruments from AASB 139.

AASB 9 is effective for annual reporting periods beginning on or after 1 January 2018. The Company is assessing the potential impact on its financial statements resulting from the application of AASB 9 though it is not likely to have a material impact.

AASB 15 Revenue from Contracts with Customers

AASB 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces existing revenue recognition guidance, including AASB 118 Revenue, AASB 111 Construction Contracts and IFRIC 13 Customer Loyalty Programmes.

AASB 15 is effective for annual reporting periods beginning on or after 1 January 2018. The Company is assessing the potential impact on its financial statements resulting from the application of AASB 15.

AASB 16 Leases

AASB 16 Leases removes the lease classification test and requires all leases (including operating leases) to be brought onto the balance sheet. The definition of a lease is also amended and is now the new on/off balance sheet test for lessees.

AASB16 is effective for annual reporting periods beginning on or after 1 January 2019. Early adoption will be permitted for entities that also adopt AASB 15 Revenue from contracts with customers.

The Company or the Foundation is not currently intending to adopt this standard early and the extent of the impact has not been determined.



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4. Income

In AUD 2016 2015 Donations 2,927,019 2,163,913Grants and sponsorship 290,646 362,985Fundraising 359,160 705,192 3,576,825 3,232,090

5. Personnel expenses

In AUD 2016 2015 Wages and salaries 923,508 730,102Increase in liability for annual leave 667 12Superannuation contributions 89,591 71,428

1,013,766 801,542

6. Cash and cash equivalents

In AUD 2016 2015 Bank balances 1,518,998 1,907,287Cash on hand 549 134Cash and cash equivalents in the statement of cash flows 1,519,547 1,907,421

Reconciliation of cash flows from operating activities

In AUD 2016 2015 Cash flows from operating activities (Deficit)/surplus for the year (487,782) 39,807 Adjustments for: Depreciation and amortisation expense 41,990 26,589 (445,792) 66,396Change in trade and other receivables (1,333) (40,761)Change in prepayments 11,424 25,317Change in trade and other payables 12,247 24,639Change in employee benefits 37,023 14,213Net cash (used in)/from operating activities (386,431) 89,804



16

7. Trade and other receivables

In AUD 2016 2015 Current Accrued income 19,633 4,266Net GST receivable 24,191 45,765Other receivables 57,900 50,360 101,724 100,391

Non-current Term deposits 60,415 58,972 60,415 58,972Total 162,139 159,363

8. Property, plant and equipment

Office equipment

In AUD Cost Balance at 1 July 2014 103,113Additions 1,553Balance at 30 June 2015 104,666 Balance at 1 July 2015 104,666Additions -Balance at 30 June 2016 104,666 Depreciation Balance at 1 July 2014 74,706Depreciation for the year 10,607Balance at 30 June 2015 85,313 Balance at 1 July 2015 85,313Depreciation for the year 10,809Balance at 30 June 2016 96,122 Carrying amounts At 1 July 2014 28,407

At 30 June 2015 19,353

At 30 June 2016 8,544



17

9. Intangible assets

Computer software

In AUD Cost Balance at 1 July 2014 92,176Acquisitions 48,520Balance at 30 June 2015 140,696 Balance at 1 July 2015 140,696Acquisitions -Balance at 30 June 2016 140,696 Amortisation Balance at 1 July 2014 19,449Amortisation for the year 15,982Balance at 30 June 2015 35,431 Balance at 1 July 2015 35,431Amortisation for the year 31,181Balance at 30 June 2016 66,612 At 1 July 2014 72,727

At 30 June 2015 105,265

At 30 June 2016 74,084

10. Trade and other payables

In AUD 2016 2015 Current Trade payables 107,461 103,377Other payables 66,524 58,361 173,985 161,738



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11. Employee benefits

In AUD 2016 2015 Current Liability for annual leave 81,468 66,154 81,468 66,154

Non-current Liability for long-service leave 65,681 43,972 65,681 43,972

12. Financial risk management and financial instruments

Overview

The Company has exposure to the following risks from its use of financial instruments: • credit risk; • liquidity risk; and • market risk.

This note presents information about the Company’s exposure to each of the above risks and its objectives, policies and processes for measuring and managing risk.

(a) Risk management framework The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework.

(b) Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. As at 30 June 2016 and 30 June 2015, there were no significant concentrations of credit risk.

Management of credit risk

The Company's cash and cash equivalents and term deposits are placed with major Australian financial institutions.

Past due receivables are actively followed up and losses occur infrequently. There was no impairment in respect of trade and other receivables during the current financial year (2015: nil).

Exposure to credit risk

The amount of the Company’s financial assets represents the maximum credit exposure. The Company’s maximum exposure to credit risk at the reporting date was:

In AUD 2016 2015 Cash and cash equivalents 6 1,519,547 1,907,421Trade and other receivables 7 162,139 159,363 1,681,686 2,066,784

As at 30 June 2016, there were no receivables past due or impaired (2015: nil).



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12. Financial risk management and financial instruments (continued)

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due.

Management of liquidity risk

The Company's policy is to regularly monitor current and expected liquidity requirements to ensure that it maintains sufficient reserves of cash to meet its liquidity requirements in the short and longer term.

The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements:

In AUD Note Carrying amount

Contractual cash flows 0-30 days 31-60 days

30 June 2016 Non-derivative financial liabilities Trade and other payables 10 173,985 173,985 173,985 - 173,985 173,985 173,985 - 30 June 2015 Non-derivative financial liabilities Trade and other payables 10 161,738 161,738 161,738 - 161,738 161,738 161,738 -

(d) Market risk

Market risk is the risk that changes in market prices will affect the Company's income or the value of its holdings of financial instruments. The Company is exposed to interest rate risk attributable to cash and cash equivalents.

Profile of interest rate risk At the reporting date the interest rate profile of the Company’s interest-bearing financial instruments was:

Note 2016 2015

In AUD Interest

rate range Carrying amount

Interest rate range

Carrying amount

Variable rate instruments Cash and cash equivalents 6 up to 2.66% 1,519,547 up to 3.34% 1,907,421 Fixed rate instruments Term deposits 7 up to 2.55% 60,415 up to 2.55% 58,972



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12. Financial risk management and financial instruments (continued)

Fair value sensitivity analysis for fixed rate instruments

The Company does not account for any fixed rate financial assets and liabilities at fair value through profit and loss. Therefore a change in interest rates at the reporting date would not affect profit or loss.

Cash flow sensitivity analysis for variable rate instruments

A change of 100 basis points in interest rates at the reporting date would have increased (decreased) the surplus by $15,794 (2015: $19,664). This analysis assumes that all other variables remain constant. The analysis is performed on the same basis for 2015.

(e) Fair values As at the reporting date, the carrying value of financial assets and liabilities as at the end of the financial year are considered to approximate their fair value due to their short-term nature.

13. Related parties

Key management personnel The following were key management personnel of the Company at any time during the reporting period, and unless otherwise indicated, were directors for the entire period:

Non-executive directors Peter W Jess Mark G Smith Tristan Landers (resigned from the board on 14th July 2016) Damien Meredith David Pettigrew

Company secretary Melinda Farrell Key management personnel compensation

The following amounts are comprised of the salary paid to the Company secretary and payments made to key management personnel in respect of their work on Clown Doctor training and development and Laughter Works presentations. Non-executive directors are not remunerated for their role as directors of the Company.

In AUD 2016 2015 Short-term employee benefits 145,000 125,279 145,000 125,279

There were no transactions with other key management personnel in 2016 (2015: nil).



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14. Subsequent events

There have been no events subsequent to balance date which would have a material effect on the Company's financial statements at 30 June 2016.

15. Auditor’s remuneration in AUD 2016 2015 Audit services Auditor of the Company - -KPMG Australia: - -

Audit of financial report - - - - KPMG performs audit services on a pro-bono basis.

16. Fundraising appeals conducted during the financial year

Fundraising appeals conducted during the financial year ending 30 June 2016 included mail appeals, telephone appeals and various other sundry fundraising projects and general receiving of indirectly solicited donations and bequests.

In accordance with section 20 of the Charitable Fundraising (NSW) Act 1991, monies received in the course of fundraising appeals are applied according to the objects or purposes of the appeal net of proper and appropriate expenses. In some circumstances, appeal funds are not always expended in the year they are collected. The Company had a net deficit of $487,782 for the year (2015: $39,807 surplus).

In AUD 2016 2015 Result of fundraising appeals Gross proceeds from fundraising appeals 3,058,083 2,678,850Less: Direct fundraising costs (1,557,560) (1,038,110)Net surplus - public fundraising appeals 1,500,523 1,640,740 Grants 290,646 362,985Less: Fundraising costs - -Net surplus - government and corporate 290,646 362,985 Sale of goods and services 228,096 190,254Interest income 28,114 37,786Total other income 256,210 228,040

Total revenue net of direct fundraising costs 2,047,379 2,231,765 Application of net surplus obtained from fundraising appeals Clown Doctor expenditure (1,424,020) (1,216,724)Laughter Works/Boss Program (11,288) (33,277)Elder Clown (123,884) (97,552)Research (55,151) (54,893)All non-administrative employee costs (438,827) (416,031)Administrative expenses (481,990) (373,481)Net (deficit)/surplus (487,782) 39,807



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16. Fundraising appeals conducted during the financial year (continued)

In AUD 2016 2015 Comparison of certain monetary figures and percentages Direct cost of fundraising/ 1,557,560 1,038,110Gross income from fundraising 3,058,083 2,678,850 51% 39% Net surplus from fundraising/ 1,500,523 1,640,740Gross income from fundraising 3,058,083 2,678,850 49% 61% Total projects funded/ 2,053,170 1,818,477Total expenditure 4,092,720 3,230,069 50% 56% Total projects funded/ 2,053,170 1,818,477Total income less/plus transfer to/from reserves 3,604,939 3,269,876 57% 56%

17. Commitment

Minimum lease payments in the following years at reporting date were due:

In AUD 2016 2015 Not later than one year 108,308 106,184Later than one year and not later than five years 110,474 218,782 218,782 324,966

The office lease contract is for a 5 year term from 2014 to 2018. The rent is reviewed annually and any increase is indexed to CPI.

The Humour Foundation Directors’ declaration

23

Directors’ declaration In the opinion of the directors of The Humour Foundation (the Company):

(a) The Company is not publicly accountable;

(b) the financial statements and notes set out on pages 6 to 22, are in accordance with the Australian Charities and Not-for-profits Commission Act 2012, including:

(i) giving a true and fair view of the Company's financial position as at 30 June 2016 and of its performance for the financial year ended on that date; and

(ii) complying with Australian Accounting Standards and the Australian Charities and Not-for-profits Commission Regulation 2013; and

(c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of directors.

Mark Smith

Chairman



Declaration by Chief Executive Officer

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Declaration by Chief Executive Officer

I, Melinda Farrell, Chief Executive Officer of The Humour Foundation, declare in my opinion:

(a) the financial report gives a true and fair view of all income and expenditure of The Humour Foundation with respect to fundraising appeal activities for the financial year ended 30 June 2016;

(b) the statement of financial position gives a true and fair view of the state of affairs with respect to fundraising appeal activities as at 30 June 2016;

(c) the provisions of the Charitable Fundraising Act 1991 and Regulations and the conditions attached to the authority have been complied with for the financial year ended 30 June 2016; and

(d) the internal controls exercised by The Humour Foundation are appropriate and effective in accounting for all income received and applied from any fundraising appeals.

Signed in accordance with a resolution of directors.

Melinda Farrell Chief Executive Officer


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