2012 ASIAL Annual and Financial Report

ANNUAL & Financial Report 2012

T h e p e ak b od y f o r secur it y pr o f essio nals

Vision We are the leading security association where membership is a mark of distinction and is valued by the members, public and government.

Mission To support our members, promote standards and safeguard public interests.

www.asial.com.au

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Contents Message from the President

4

Secretary’s report

5

Operating report

6

Director profiles

14

Directors operating report

17

Independent audit report to members

21

Statement of comprehensive income

22

Statement of financial position

23

Statement of changes in equity

24

Statement of cash flows

24

Notes to the financial statements

25

BOARD OF DIRECTORS President Vice President Directors

Past President

Ged Byrnes Kevin McDonald Rod Anderson, Bob Bruce (part), Antony Elliott, Mike McKinnon, Tom Roche, Leo Silver, Damian Waters (part) Paul Corson (part), Peter Georgiou (part), Peter Johnson, Chris Luhrmann, Neville Kiely, Neil McLean, Darryl Milling (part), Suzette Po-Williams, Tania Tomuli (in addition to Board) Antony Elliott

Auditor Solicitor/Attorney

Foster Raffan Goldrick Farrell Mullan

Consultants Monitoring Centre Certification Inspection Industrial Relations Compliance & Regulatory Affairs Special Consultant

Robin Burrows, ATSC Chris Delaney, Chris Delaney & Associates Peter Johnson, Corporate Application Damien Smith, Enterprise Care Pty Ltd

National Reference Group

SECRETARIAT Chief Executive Officer & Secretary General Manager Manager, Membership Finance & Administration Manager, Professional Development Cabling Officer Database & Website Officer Manager, Marketing & Communications Marketing & Communications Coordinator Membership Officer Membership Coordinator Membership Coordinator Membership Coordinator

Bryan de Caires John Fleming Sylva Pechackova Fran Meem Tania Laird Richard Rolls Nadine Keady Angela Maan Stephanie Lee Alexandra Firth Fiona Rounds Kamiya Tanwar Ashlyn Kapinga

ASIAL Annual & Financial Report 2012 3

Message from the

President

As I write what will be my final message as President of ASIAL, it is with much pride and satisfaction that I present you with the Australian Security Industry Association’s 2012 Annual Report.

In this report you will read about the many accomplishments the Association has achieved over the past year and more importantly, you will see how these achievements inform the work that we do to achieve our mission of supporting members, promoting standards and safeguarding public interests.

Over the course of the past year, your Association has been particularly active in representing the interests of the industry to government across the country and in providing members with support and advice.

$2.5 million Shared Industry Assistance Program to assist employers better understand their workplace obligations.

It is clear that through our collaboration with FWO, we have assisted in providing the industry with a better understanding of its obligations under the Awards and the Fair Work Act 2009.

As we look ahead, it is apparent that a strong and active association is vital to the industry’s future growth and success. With the removal of the mandatory membership requirement in NSW from November 2012, belonging to a recognised peak industry body will become an even greater point of difference.

The Association has further consolidated its position as the industry’s peak body and continues to provide strong leadership for the industry.

I urge you all to actively engage with and contribute to your association. In doing so you will not only benefit yourself, but you will be making a positive contribution to effect change in what is an increasingly important and growing industry sector.

The ASIAL initiative to develop a Security Technician Certification program is a significant one for the industry.

Designed as a means of providing security technicians with a clear career pathway, the program is also a proactive initiative to attract and retain appropriately skilled workers capable of meeting the future needs of the industry.

In closing I would like to give my thanks and gratitude for the contribution and effort exerted by the ASIAL secretariat ably led by our Chief Executive Officer Bryan de Caires, my fellow Directors, State Convenors, Special Interest Group members and State Reference Groups, without whom the continued success and growth of this association would not be possible.

As ASIAL’s profile grows, its views are increasingly being sought by state and territory governments. As a result we are forging stronger ties with government and law enforcement agencies around the country. A case in point is the relationship the Association has developed with the Fair Work Ombudsman (FWO). After identifying a low-level of compliance in 2009, FWO called for leadership from the security industry to help drive behavioural change.

To assist the industry, FWO provided funding to the Australian Security Industry Association in 2010 under its

Ged Byrnes, President, ASIAL

“As ASIAL’s profile grows its views are increasingly being sought by government.”

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Secretary’s report

The Association enjoyed another successful year with membership subscriptions continuing to grow, despite ongoing uncertainty about proposed regulatory changes in NSW. A surplus of $250,170 for the year was posted.

In achieving this, it is worth noting that membership subscription fees have remained unchanged for a number of years.

Membership subscriptions continue to account for a significant proportion of the Association’s revenue base. The strong performing areas for the year included membership subscriptions, monitoring centre certification, Security 2011 and the Association’s Cabling Registry.

Whilst not meeting budget, Security Insider magazine, publications, industry briefings and the Centre for Compliance continue to provide members with a valuable service.

The Association continues to invest in promoting its members to consumers through an ongoing awareness campaign which this year included television advertising.

Further enhancements and improvements have been made to the Association’s customer relationship management system and web site. In addition, resources have been expended in designing and developing the Security Technician Certification program which aims to provide professional recognition for security technicians.

During the course of the year the Association embarked on a substantial maintenance program for Security Industry House, involving the replacement of the roof, tiling of the front entrance area and installation of an automated front door. In June 2012 Aon Risk Solutions were engaged to provide a current market value of Security Industry House, a value of $2,270,000 was provided.

Accumulated reserves rose to $2,701,284, providing a strong financial base from which the Association can work to improve and expand the services it provides to members.

Finally, I would like to acknowledge the support and commitment provided by the ASIAL Board, Convenors and Secretariat staff over the past year. In particular, I would like to make special mention of the generous and unwaivering support provided by Ged Byrnes to both the Secretariat and myself during his tenure as President.

Bryan de Caires Chief Executive Officer & Secretary

Equity

Membership

ASIAL Annual & Financial Report 2012 5

Operating report The 2011/2012 year was another busy one for the Association. Over the course of the year the Association’s Secretariat handled over 40,000 telephone, email and fax enquiries (equivalent to 850 per week). With a raft of significant changes, ASIAL has sought to continue to provide value to its members and the industry as a whole.

The Association’s membership remained relatively stable, with 3,212 members at the end of June 2012. Of these 2,871 were corporate, 226 associate, 106 individual, 4 affiliate and 5 life members.

In May 2012, the Fair Work Ombudsman released his follow up report into the security industry. The report welcomed a significant increase in compliance within Australia’s security industry, with the industry’s level of compliance rising from just 47% in 2009 to 75% in 2011. In releasing the results of a second targeted education and compliance campaign, the Fair Work Ombudsman Nicholas Wilson described them as “a fantastic improvement”.

After identifying a low-level of compliance in 2009, the Fair Work Ombudsman called for leadership from the security industry to help drive behavioural change. To assist the industry, the Fair Work Ombudsman provided funding to the Australian Security Industry Association in 2010 under its $2.5 million Shared Industry Assistance Program to assist employers better understand their workplace obligations.

The marked improvement in compliance levels within Australia’s security industry can be attributed to the willingness of the industry to respond to the education and information campaign developed and implemented

by ASIAL and supported by FWO. ASIAL and FWO have collaborated closely over the past 2 years to create a platform for greater co-operation and communication, an approach that has assisted in providing the industry with a better understanding of their obligations under the Awards and the Fair Work Act 2009.

Customer Relationship Database The Association has continued to build and enhance its customer relationship management database during the year, providing members with access to higher levels of services and benefits. These included the addition of new data fields, reporting capabilities and the ability to search for a member by business size and length of membership.

In early 2012 the Association’s Secretariat migrated to paperless storage of member records through its Customer Relationship Management system.

ASIAL Member recognition program ASIAL’s member recognition program continues to build momentum, with 368 members now participating. The breakdown of those participating is Platinum (11), Gold (39), Silver (185) and Bronze (133).

Industry compliance has improved

“The Association’s Secretariat received over 40,000 enquiries during the course of the year.”

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First Alert newsletters

Events and industry briefings

The Association’s monthly electronic newsletter, First Alert, continued to provide timely updates on news and industry events to members throughout the year.

The newsletter’s distribution list grew from 5,385 recipients each month to 6,965.

During the course of the year the Association attracted approximately 2,000 attendees to its industry briefings and events, including the Security 2011 conference, gala dinner, cocktail reception and the Australian Security Industry Awards for Excellence. In addition, the Security 2011 Exhibition, organised by Diversified Exhibitions Australia attracted over 4,000 participants.

The Association’s events attracted strong attendance over the year

Bruce Blythe addresses the Security 2011 Conference

Security 2011Exhibition & Conference was a great success

ASIAL Annual & Financial Report 2012 7

2011 Australian Security Industry Awards for Excellence In their 17th year, the 2011 Australian Security Industry Awards for Excellence held at Crown Melbourne provided an opportunity once again to recognise excellence in the industry. This year’s awards were judged by an independent panel chaired by ASIAL’s Manager for Compliance & Regulatory Affairs, Peter Johnson. Panel members included Dr Roger Lough AM (independent consultant and company director specialising in technologies for defence), Damian McMeekin (Head of Group Security, ANZ Bank), Jennifer McAuley (Department of Human Services) and Alan Ross (CEO, CPSISC).

industry’s future leaders. Featuring an exceptional teaching faculty, the three-day program provides practical and interactive insights into the key factors to successfully managing and growing a security business. Feedback received from participants on the program has been extremely positive.

Participants at the Security Industry Leadership program

Consumer awareness campaign 2010/2011

The industry’s high achievers were recognised The award winners included: • Individual Achievement Award (Technical) - Andrew Keddy of Spectrum Fire & Security • Individual Achievement (General) - Adam Motum of MSS Security • Integrated Security Solution Award (Projects > $250,000) - SAAB Security • Integrated Security Solution Award (Projects < $250,000) - Pacom Systems and CDS Security • Security Management Award - Qantas Contracted Security Services Unit • Special Security Event Award - Paramax • Special Security Event Award - Spectrum Fire & Security • Special Security Event Award - SNP Security • In House Security Team Award - BlueScope Steel Security

The Association’s ongoing consumer awareness campaign featured over 640 television adverts aired across a varied range of programs and time slots on Channel 9 and on Pay TV stations (including BBC Knowledge, The Comedy Channel, Discovery Channel, Fox Sports, History Channel, Sky News and Lifestyle Home).

In addition to the television campaign, ASIAL also had a strong presence at The President’s Cup Fan Zone in Queensbridge Square, Southbank Melbourne from the 17th-20th November 2011. A huge LED super screen aired the “Think Security…Think ASIAL” commercial 40 times a day for the duration of the tournament to an audience of approximately 120,000 people.

Media/Communications The Association has used a range of communication channels (including print, radio and TV) to get its message across to the wider community. The Association has also been regularly approached to provide comment on a number of industry issues and current affairs.

Security Industry Leadership program

Security Insider magazine

As part of its ongoing commitment to professional development, ASIAL has continued to run the Security Industry Leadership program. Designed specifically for managers and business owners in the security industry, the program focuses on developing the skills of the

Now in its nineteenth year of publication, Security Insider magazine continues to provide members with access to timely and relevant news and information. In addition to the print version, an electronic edition is circulated to a further 6,000+ people.

8 ASIAL Annual & Financial Report 2012

Industrial relations

ASIAL has been active over the past year representing the interests of both the security industry and individual members with government, Fair Work Australia, Fair Work Ombudsman, bureaucrats and unions.

The new modern award system has now been in place for more than two years along with the Fair Work Act 2009.

ASIAL has identified issues affecting members arising from the modern awards and was the only industry association to make submissions to vary the Security Services Award 2010 and the Transport Industry Cash in Transit Award 2010. It is anticipated that Fair Work Australia will deal with our submissions by the end of 2012.

During the course of the year, the Association made submissions on and included a classification in the Security Services Industry Award 2010 for the proposed Aviation Protection Officer.

Through discussions with all of the major political parties in the Australian Capital Territory, ASIAL was instrumental in delaying the start date for the ACT Portable Long Service Leave Levy as well as achieving some modifications to the legislation.

The Fair Work Ombudsman (FWO) follow up audit campaign focusing on wages and conditions, sham contracting and phoenixing in the private security industry was completed in March 2012. In his report the FWO praised the industry for the improvements in compliance.

ASIAL’s national education campaign was instrumental in achieving these improvements as was its continuing assistance with members involved in issues with FWO. ASIAL has supported and represented members in unfair dismissals, adverse actions, discrimination and underpayment of wages claims, assisted with enterprise agreements and disputes with unions and the FWO. With the recent Annual Wage review ASIAL has been able to secure approval of all rate schedules through the FWO ensuring members with access to accurate rate schedules acceptable to the FWO. In the year ahead ASIAL understands that the security industry has been independently assessed a “high risk” for phoenixing and both the Australian Taxation Office and FWO will be running targeted campaigns on this and sham subcontracting.

"ASIAL has supported and represented members on a broad range of industrial relations issues."

The Association will continue to identify issues affecting members and the industry and will continue to represent the best interests of members and the industry to Government agencies and industrial tribunals.

ASIAL Annual & Financial Report 2012 9

Complaints,

Compliance & Regulatory Affairs

Compliance and Regulatory issues continue to impact on the day to day operation of members.

ASIAL’s Centre for Compliance continues to provide a comprehensive resource for security providers in meeting their compliance obligations. Through proactive communication with members the Association has provided regular updates on regulatory and compliance changes.

Despite the responsibility of all members to have in place a complaints management program to handle complaints received from clients, the Association received twentynine (29) formal complaints about the conduct or performance of members during the reporting period.

Of these, thirteen (13) related to the manpower sector, fifteen (15) to the electronic sector and one (1) to training.

Formal Complaints by State and Category

In handling the complaints received, it is clear that with better communication with clients and the application of good business practices (including better documentation and agreements) many of these complaints could be avoided.

The majority of complaints received achieved outcomes through mutual agreement. Several complaints involving electronic security installations were solved through rectification of poor equipment performance, re-installation and/or re-location of inappropriately located equipment. In one instance this involved the removal of the equipment and refunding of payment.

Whilst there has been some progress in the push for national harmonisation of security licensing through the efforts of the Council of Australian Governments, regulatory variations across Australia continue to impact on operational efficiencies and the cost of providing a professional security service. Within the compliance and regulatory affairs portfolio, ASIAL continues to support member concerns through interaction and meetings with regulators.

“The majority of complaints received were resolved through ASIAL’s mediation.”

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ASIAL continues to provide industry response and representation to AUSTRAC which has established one of the most demanding compliance and reporting programs impacting on the security industry and in particular the cash in transit industry sector.

Among the many submissions made by the Association over the course of the year include: • the Victorian Parliament Drugs and Crime Prevention Committee Inquiry into violence and security arrangements in Victorian hospitals (July 2011); • NBN Co submission covering Technical Alarm Issues (September 2011); • South Australia Department for Health and Ageing Proposed amendments to the Code of Practice for the Storage and Transport of Drugs of Dependence (January 2012); • Kings Cross Precinct Liquor Accord (January 2012); Department of Broadband and the Digital Economy Battery Backup Capability on the National Broadband Network (February 2012); • ACT Justice and Community Safety Directorate Review of Security Workplace Rights Information Session (March 2012); • ACT Office of Industrial Relations Portable Long Service Leave Scheme (March 2012); • Victorian electronic form lodgement process, Victorian licensing renewal training; • Tasmanian re-qualification training which necessitated direct political representation; • SafeWork SA in Holidays Act Options Paper 10 (March 2012); • Queensland Crowd Control Guideline Amendment (April 2012); • WA Department of Racing, Gaming and Liquor proposal to require Licensed Crowd Controllers to undertake Responsible Service of Alcohol (RSA) training (May 2012); and

Strategic Partners The Association continues to maintain a strong working partnership with its strategic partners who include Aon, AustralianSuper, Diversified Exhibitions Australia and Goldrick Farrell Mullan.

ASIAL Disciplinary Committee The ASIAL Disciplinary Committee met two times during the year to discuss a range of disciplinary matters involving the actions and behaviour of member companies. A range of actions against members were taken following these meetings.

The Disciplinary Committee’s role is to investigate breaches of the ASIAL Professional Code of Conduct and to make recommendations to the Board. The Disciplinary Committee is comprised of an independent legal representative, a representative from the Board, the Association’s Chief Executive Officer and the Association’s Manager of Compliance and Regulatory Affairs.

The Association has in place a range of sanctions that it can impose on a member, ranging from remedial action, financial sanctions or expulsion from the membership.

During the course of the year, 234 Members were expelled from the Association, up from 171 in 2011.

• NSW Security Industry Amendment Bill 2012 (June 2012).

ASIAL will continue to commit the required resources to ensure that the interests of its members and the industry as a whole are represented to government.

ASIAL Annual & Financial Report 2012 11

Professional recognition for security technicians

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Security Technician Certification program

During the course of the year, the Association invested significant time and resources in developing the Security Technician Certification program (STC). The program is an ASIAL industry initiative to provide professional recognition and an industry recognised career pathway for technicians working in the security industry.

The Australian Communications and Media Authority (ACMA)’s 2012 upgrade of cabler training requirements, in effect from 1 July 2012, will require all cabling providers undertaking work on structured, optical fibre or co-axial cabling installations to attain the relevant formal advanced specialised competencies (registration endorsements).

The STC credential is a technical certification program that covers alarms, access control and CCTV. Through a combination of self-paced study, face-to-face theory and practical assessments at approved assessment centres (located in Adelaide, Brisbane, Melbourne, Sydney and Perth), participants are required to demonstrate their theory and practical skills.

Affected cablers hold current Open registrations without these endorsements, and have been allowed a 2-year grace period until 1 July 2014 to complete the necessary ‘gap’ training or obtain equivalent RPL assessment.

Conversely, cablers completing the Open course after this date and requiring the upgraded specialised training will receive it as part of their training organisation’s meeting of its own obligations under the changes.

Designed to provide a career pathway for security technicians, the program is also a proactive initiative to attract and retain appropriately skilled workers capable of meeting the future needs of the industry. Units associated with the program can be recognised as competency based units under the Australian Quality Training Framework.

The program incorporates 3 levels of recognition: Certified Security Technician, Advanced Security Technician and Master Security Technician.

Developed and administered by the Australian Security Industry Association Ltd (ASIAL), the STC program is an ASIAL initiative to address the skills shortage faced by the electronic security sector.

The online training, face to face theory and practical assessments are provided by Integracom Management Group Pty Ltd, a nationally recognised Registered Training Organisation.

ACMA has indicated it will police the changes after the deadline via contracted random auditing of providers working in the above areas.

Registrars have assisted ACMA in disseminating its authorised information on the changes and ASIAL, having conducted a communications campaign during June 2012, is receiving a steady stream of enquiries from registered cablers regarding compliance. Continuing awareness will be maintained via mailed renewedregistration packs, while further, more detailed ACMAauthorised information is awaited.

Via its website, ASIAL continues to remind Restricted registered cablers to check the legal work scope permitted by their qualifications against the range of cabling tasks they are undertaking.

ASIAL Cabling Registry Over the past year ASIAL’s cabling registry has continued to grow, with total registrations at 30 June 2012 of 5476, up from 5362 over the previous year.

New Open registrations during the past financial year were slightly under four times the number of Restricted registrations, while the need to upgrade skill levels and formal qualifications saw continuing upgrading. ASIAL Open registrations currently outnumber Restricted registrations by approximately 4 to 1, at 4354 to 1106.

Ged Byrnes Director

Kevin McDonald Director

Crows Nest, 27 August 2012.

ASIAL Annual & Financial Report 2012 13

Director

profiles Ged Byrnes – President Ged is a Director of Protection Pacific Security, a Melbourne based company, which has been operating since 1992. The company provides security services including alarm installation, access control, CCTV, guards and patrols. The company also operates its own 24-hour control room. Ged can draw from a broad range of experience across all facets of the industry and offer an understanding of issues that affect ASIAL Members. He has worked in the security industry since 1980 and his experience includes all aspects of design, installation and monitoring of intruder detection systems and associated devices such as access control and CCTV systems. Ged is a member of the Institute of Security Management and Past Victorian Chairman of ASIAL, a position he held for seven years.

He has an Associate Diploma of Security Management and Certificate of Security Management.

He represented ASIAL on the National Executive Council from 1995-2002 and represented ASIAL on the Victorian Police Security Liaison Group, Control Room Operators Group and Alarm Response Consultative Committee. He was re-elected to the National Executive Council in 2003 and elected as Vice President in 2004. Ged was elected to the position of President in 2006.

Kevin McDonald – Vice President Kevin has been involved in the security industry for over 30 years. His career started with Wormald Security in the 1970s and he has extensive experience in electronic security, sales, contracting, operations and monitoring. He has held sales and operational management positions in a number of nationally based security companies and now holds the position of Business Improvement Manager for the Signature Security Group (a division of Tyco Int.). Kevin is a member of the National Electronic Security Special Interest Group. Kevin has a Cert IV in Security Risk Management a Diploma in Marketing Management is a licensed security consultant.

Kevin sits on the ASIAL Disciplinary Committee.

Bryan de Caires - Chief Executive Officer & Secretary Bryan de Caires has over 22 years experience in senior management positions. His early career was as a senior editor with the leading global finance and business publisher based in London, Euromoney Publications Plc. In 1990 he moved to Australia to take up a position as General Manager of AIC (later renamed Terrapinn) - a business media company. In 1997 he was appointed Managing Director of the company’s exhibition business. Prior to joining ASIAL in 2000, he spent a year as National Manager, Professional Development with the Australian Human Resources Institute. He was appointed Chief Executive Officer and Secretary in 2006. Bryan is Deputy Chair of NSW Crime Stoppers.

Tom Roche Tom has worked in the security industry for over 25 years including 18 months secondment to Securicor in the UK in the early 1990’s. Since assuming leadership of SNP in 1995, he has been responsible for the strategic management and financial performance of the company. Tom is a current Board Member of ASIAL, and CPSISC (Construction & Property Services Industry Skills Council). In addition, he chaired the Property Services Industry Training Advisory Board NSW (PSITAB) during 2007/08 and reviewed licensing and training requirements for the NSW Security Industry. Tom has a Bachelor of Arts degree majoring in Economics and also holds a Master of Management degree. He additionally holds a Certificate IV in Risk Management.

Rod Anderson Rod is the Business Manager, Australia / New Zealand, for the Advent Security Group. He has over 36 years security and related experience, specifically in the areas of management, operations, training and business development. After a distinguished 20 year career in the Australian regular Army, and prior to joining Advent, Rod progressed through a number of senior management positions within ISS Security including Regional General Manager of WA, and then later as the Regional General Manager of QLD and the NT, General Manager Special Operations, National Business Manager and finally National General Manager Operations. He has extensive experience in the delivery of security and protection of defence bases, aviation, maritime and critical infrastructure. Rod has also served on a number of security industry review committees and has a number of tertiary qualifications in business, HR and security related disciplines and is a licensed security consultant and trainer in NSW. He was appointed to the ASIAL Board in mid-2010.

14 ASIAL Annual & Financial Report 2012

Mike McKinnon Mike has been involved in the security industry for in excess of 20 years and was appointed to the ASIAL Board in mid 2010. Professional studies include a Bachelor of Business Degree as well as qualifications in Local Government Administration. Mike is a Certified Practicing Accountant (CPA) and spent a considerable number of years in professional practice and finance before making the move to general management of commercial enterprises. He is currently the Managing Director of MSS Security Pty Ltd, Australia’s largest security personnel provider and oversees the operations of the Australian business, operating across all Australian States and Territories. As such this gives a national insight to the issues impacting the industry. Mike also has the unique perspective of having been a significant client within the industry whilst with the Qantas Group for a number of years. This period included managing their contracted security screening services, equipment suppliers and their in-house alarm monitoring and identification teams. In addition, Mike also brings a wealth of knowledge and experience gained in security electronic wholesaling, safe manufacturing and distribution, monitoring and electronic solutions.

Mike sits on the ASIAL Finance Committee, a sub-committee of the Board.

Bob Bruce Bob’s career in the security industry has spanned more than a quarter of a century. He began as a plain clothes investigator with the Military Police and became directly involved and worked closely with the Victoria Police Criminal Investigation Branch. Bob joined Mayne Nickless Ltd as a Security Officer and over 20 years ago took up the role of National Security Manager, Armaguard. Following the acquisition of Armaguard by Linfox in February 2003, Bob took on the role as General Manager, Security, Armaguard. Bob was Chair of ASIAL’s Cash in Transit Special Interest Group and has represented ASIAL in a number of regulatory forums including a current Ministerial appointment to the Victorian Firearms Consultative Committee. He is also a founding member of the Crime Stoppers Board of Management in Victoria, recently stepping down from the position of Deputy Chairman after 20 years service and currently holds the title of Life Member.

Bob stood down from the Board in February 2012.

Antony Elliott Antony was first appointed to the National Executive in 1994. He held the position of NSW Branch Chairman for many years and was Individual Member Division Chairman. He was elected President in 2001 and remained in that position until 2006. He has served on the board as a director since standing down as President and is committed to assisting with the future direction of the Association.

Antony played a crucial role in ensuring industry acceptance of the Cabling Provider Rules and has contributed to preserving the security industry’s interest in this area since. Antony is the Managing Director of E & C Security Systems Pty Ltd; an electronics based security company, where he has been involved with the general management of the company for over 25 years.

Antony sits on the ASIAL Finance Committee, a sub-committee of the Board.

Leo Silver Leo is a Director of Security Communications Solutions International (SCSI), a leading developer and supplier of Alarm Transmissions Systems generally and the DirectWireless system specifically. The company derives from a successful Victorian based security business called Guard-Well Security Services and, although now focused on the provision of communication solutions, the detailed understanding of the day to day aspects of running a full service security business pervade the operations of the company.

Leo has been actively involved in industry developments through his participation in the Victorian Branch Working Group of ASIAL, the National Electronic Security Special Interest Group and in his support of Australian standards for the industry.

Damian Waters Damian is General Manager, Security, with Armaguard. Damian has been involved in the private security industry for 10 years, and prior to this, was a member of the Victoria Police and National Crime Authority for 11 years. In his current role he is responsible for the overall security management of Australia’s largest cash-in-transit company. Operating out of over 50 locations throughout Australia and New Zealand.

Armaguard is an iconic Australian brand established in 1938 that is the dominant player in the Australian & New Zealand cash logistics, currency management and precious cargo markets. Damian has extensive experience within the cash-in-transit Industry, and also holds a Diploma of Security Risk Management.

Damian sits on the ASIAL Disciplinary Committee.

ASIAL Annual & Financial Report 2012 15

Financial report

ASIAL Board: Left to right â&#x20AC;&#x201C; Antony Elliott, Tom Roche, Damian Waters, Ged Byrnes (President), ASIAL Board: Kevin McDonald (Vice President), Leo Silver, Rod Anderson and Mike McKinnon

16 ASIAL Annual & Financial Report 2012

ABN 91 000 813 365

Directors operating report Your directors submit this operating report for the year ended 30 June 2012. The names of the company’s directors in office during the financial year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated. Their qualifications, experience and special responsibilities are set out on pages 14 and 15 of this Annual and Financial Report.

Measurement of the Association’s performance

Director

The Company is limited by guarantee. The liability of each member in respect of liabilities of the company, as specified in the Constitution, is limited to $100.

Rod Anderson Ged Byrnes Mike McKinnon Thomas Roche Damian Waters*

Robert Bruce* Antony Elliott Kevin McDonald Leo Silver

The Association measures performance through a number of metrics. These include member acquisition and retention rates; growth in member subscription and non-subscription revenue; media coverage and profile; financial performance against budget.

Corporate Structure

Nature of operations and principal activities

* In February 2012 Bob Bruce resigned from the ASIAL Board following his retirement from Armaguard. The Board appointed Damian Waters to fill the casual vacancy in February 2012.

The principal activity of the Company during the financial year was as an Industry Association serving the needs of employers and members within the Australian Security Industry. No significant change in the nature of this activity occurred during the year.

Key objectives of the Association

Number of recorded Members

The Association regularly reviews its key strategic priorities. The Association’s key objectives include: •

•

•

Awareness – to raise the profile of the Association in the minds of key stakeholders and lay a platform to allow appreciation of the differentiated service offerings it provides; Influence – to be in a position to shape regulatory policy and impact on public and media opinion on issues relating to security; Quality – to establish programs, accreditation and assessment that set appropriate quality standards for members, which in turn become the benchmark for the industry.

Strategy for achieving these objectives

Through both short and long-term measures, the Association strives to achieve its strategic objectives.

Among the initiatives implemented or in the process of implementation include: •

Development of a certification program for security technicians;

•

Lodgement of numerous industry submissions to state and federal governments;

•

Collaboration with a variety of agencies across the country, including the Australasian Fire and Emergency Service Authorities Council and NSW Police to improve the level of service provided by the industry;

•

Ongoing consumer awareness campaigns and interaction with the media and other key stakeholders;

•

Provision of professional development opportunities, such as the Security Industry Leadership Program;

•

Ongoing enhancements to the advice and service provided to members through improvements to the Association’s Customer Relationship Management system and membership procedures.

ABN 91 000 813 365

The number of Members recorded in the Register of Members of the Organisation as at 30 June 2012 for the purposes of section 254 (2) (f) of the RAO Schedule was 3,212.

Employees

The company employed 13 employees as at 30 June 2012 (2011: 11 employees).

Rights of Members to resign

In accordance with section 174 of the RAO Schedule, a member may resign from membership of the Organisation by written notice addressed and delivered to the Chief Executive Officer as per 11.1 of the ASIAL Constitution.

Details of Trustee of Superannuation Entities No member of the Board was: i.

A trustee of a superannuation entity of an exempt public sector superannuation scheme or

ii. A director of a company that is a trustee of a superannuation entity or exempt public sector superannuation scheme where the criterion for the member being a trustee or director is that the member is an officer or member of ASIAL.

ASIAL Annual & Financial Report 2012 17

Directors operating report Operating Results for the Period and Review of Operations The Association earned a net profit for the year of $250,170 (2011: $208,098). The Association’s reserves rose to $2,701,284. The Association remains committed to its policy of reinvesting a significant proportion of prior year surpluses into maintaining and improving services to members, whilst using the balance to build sufficient reserves for when they are needed. Over the past year continued improvements have been made to the Association’s customer management database and further resources have been directed towards the development of new member services. Total revenue from ordinary activities was down slightly for the year.

Significant Changes in the State of Affairs

Since gaining approval as a Registered Organisation of Employers, the Association now performs a more proactive role in the area of industrial relations. In June 2012, the Security Industry Amendment Bill was passed by the NSW parliament. Among the changes that will come into effect as of 1 November 2012, includes the removal of the co-regulatory partnership with industry. It is uncertain exactly what impact the removal of the mandatory membership requirement will have on the Association’s membership base.

Significant Events After Balance Date

No significant events have taken place after the balance date.

Likely Developments and Expected Results

Directors have budgeted on a loss of $74,270 for the coming year, which includes a provision for the potential loss of members with the removal of the mandatory membership requirement in NSW. The Association’s consumer awareness campaign will continue through funding from the member marketing fee. The Association has in place a number of ongoing strategic partnerships which support initiatives aimed at raising standards and compliance among members.

It is hoped the Association’s security technician certification program will succeed in raising skill levels among security technicians.

18 ASIAL Annual & Financial Report 2012

Loans, grants and political donations

The Association has made no loans, grants or political donations over the past year.

Proceedings on Behalf of The Company

No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings.

Indemnification and Insurance of Directors and Officers

During the year, the company has paid a premium in respect of a contract insuring directors and officers against: (a) liability arising from wrongful acts committed in their capacity as directors and officers of the company, but excluding dishonesty, fraud, malicious conduct or wilful breach of duty; and (b) the costs of legal representation in relation to such liabilities. The premium paid was $11,511, which also includes cover for the company in respect of loss it suffers as a result of wrongful, wilful or fraudulent acts of its directors, officers and employees. This contract complies with Section 199B of the Corporations Act 2001.

Auditors

Foster Raffan continues to act as auditors in accordance with Section 327 of the Corporations Act 2001.

Directors’ Emoluments and Transactions

No emoluments have been received or are due and receivable by Directors from the company or any related body corporate.

Directors Meetings

Attendance by each director at board and board committee meetings, held during the period each director held office this year, is shown on page 19.

The number of meetings is in brackets.

ABN 91 000 813 365

Directors operating report Directors Attendance at Board meetings Rod Anderson 4 (5) Ged Byrnes 5 (5) Kevin McDonald 4 (5) Thomas Roche 4 (5) Damian Waters 2 (2)

Bob Bruce 2 (2)* Antony Elliott 5 (5) Mike McKinnon 5 (5) Leo Silver 5 (5)

*Following Bob Bruce's resignation in February 2012, Damian Waters was appointed as a casual vacancy to the Board in February 2012.

Attendance at National Reference Group meetings Rod Anderson 1 (2) Ged Byrnes 2 (2) Antony Elliott 2 (2) Peter Johnson 2 (2) Chris Luhrmann 2 (2) Mike McKinnon 2 (2) Darryl Milling 1 (2) Tania Tomuli 2 (2) Suzette Po-Williams 2 (2) Damian Waters 1 (1)

Bob Bruce 1 (1) Paul Corson 1 (1) Peter Georgiou 0 (1) Neville Kiely 2 (2) Kevin McDonald 2 (2) Neil McLean 1 (2) Thomas Roche 2 (2) Damian Waters 1 (1) Leo Silver 2 (2)

A copy of the auditorsâ&#x20AC;&#x2122; independence declaration, as required under section 307C of the Corporations Act 2001, is set out on page 20.

This report is made in accordance with a resolution of the Directors.

Ged Byrnes Director

Kevin McDonald Director

Crows Nest, 27 August 2012.

ABN 91 000 813 365

ASIAL Annual & Financial Report 2012 19

Directors declaration In accordance with a resolution of the directors of the Australian Security Industry Association Limited, we state that:

On behalf of the Board

(a) The financial statements and notes set out on pages 22 to 34 are in accordance with the Guidelines of the General Manager, Fair Work Australia and: (i) comply with Accounting Standards and the Corporations Regulations 2001; and (ii) give a true and fair view of the companyâ&#x20AC;&#x2122;s financial performance, financial position and cash flow as at 30 June 2012 and of its performance for the year ended on that date; (b) in the opinion of the directors there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. (c) during the financial period to which the General Purpose Financial Report relates and since the end of that year: (i) meetings of the committee of management (the Board) were held in accordance with the Rules of the reporting unit (ASIAL); (ii) the financial affairs of the reporting unit have been managed in accordance with its Rules; (iii) the financial records of the reporting unit have been kept and maintained in accordance with Fair Work (Registered Organisations) Act 2009 (the Act) and its related Regulations; and

Ged Byrnes

Director Crows Nest, 27 August 2012.

Kevin McDonald

Director Crows Nest, 27 August 2012.

Auditorâ&#x20AC;&#x2122;s independence declaration

I declare, to the best of my knowledge and belief that during the year ended 30 June 2012 there have been: (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (ii) no contraventions of any applicable code of professional conduct in relation to the audit.

(iv No member of the Association or a Registrar has made a request for information under section 272 of the RAO Schedule; and (v) there has been no order for inspection of financial records made by the Commission under section 273 of the RAO Schedule.

Foster Raffan

Chartered Accountants Level 6, 8 West Street North Sydney NSW 2060

GD Wood, FCA Partner North Sydney 27 August 2012

20 ASIAL Annual & Financial Report 2012

ABN 91 000 813 365

Independent audit report to members We have audited the accompanying financial report of Australian Security Industry Association Limited (the company) which comprises the statement of financial position as at 30 June 2012 and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and the directors' declaration.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal controls as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

(a) is in accordance with the Corporations Act 2001, including:

Our responsibility is to express an opinion on the financial report based on our audit. 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 about whether the financial report is free from material misstatement.

(b) complies with the requirements of Part 3 of Chapter 8 of the Fair Work (Registered Organisations) Act 2009.

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 of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

ABN 91 000 813 365

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

In our opinion the financial report of Australian Security Industry Association Limited

(i) giving a true and fair view of the company's financial position as at 30 June 2012 and of its performance for the year ended on that date; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and

Foster Raffan Chartered Accountants

GD Wood, FCA Partner North Sydney 27 August 2012

ASIAL Annual & Financial Report 2012 21

Statement of comprehensive income FOR THE YEAR ENDED 30 JUNE 2012 Note

2012

2011

$

$

Revenue- operating

2

2,369,716

2,387,770

- investment

2

119,832

121,334

Expenses directly related to operating activities

(695,348)

(747,077)

Employee benefits

(997,412)

(880,681)

(41,928)

(52,843)

-

(32,011)

(504,690)

(588,394)

250,170

208,098

Depreciation Finance costs Other expenses

3

PROFIT BEFORE INCOME TAX Income tax expense

4

PROFIT FOR THE YEAR Other comprehensive income TOTAL COMPREHENSIVE INCOME FOR THE YEAR

14

-

-

250,170

208,098

-

-

250,170

208,098

The accompanying notes form part of these financial statements

22 ASIAL Annual & Financial Report 2012

ABN 91 000 813 365

Statement of financial position AS AT 30 JUNE 2011 Note

2012

2011

$

$

CURRENT ASSETS Cash and cash equivalents

5

1,765,291

1,483,692

Trade and other receivables

6

41,580

66,782

Other current assets

7

80,345

57,157

1,887,216

1,607,631

2,422,345

2,404,585

4,309,561

4,012,216

9

1,482,333

1,474,605

Provisions

10

62,152

52,156

Centre for Compliance fund

11

21,532

30,704

1,566,017

1,557,465

42,260

54,295

TOTAL LIABILITIES

1,608,277

1,611,760

NET ASSETS

2,701,284

2,400,456

2,650,626

2,400,456

50,658

-

2,701,284

2,400,456

TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment

8

TOTAL ASSETS CURRENT LIABILITIES Trade and other payables

TOTAL CURRENT LIABILITIES NON CURRENT LIABILITIES Provisions

10

EQUITY Retained earnings Reserve

8

TOTAL EQUITY

The accompanying notes form part of these financial statements

ABN 91 000 813 365

ASIAL Annual & Financial Report 2012 23

Statement of changes in equity FOR THE YEAR ENDED 30 JUNE 2012 $ RETAINED EARNINGS AT 1 JULY 2010

2,192,358

Comprehensive income

208,098

RETAINED EARNINGS AT 30 JUNE 2011

2,400,456

Comprehensive income

250,170

RETAINED EARNINGS AT 30 JUNE 2012

2,650,626

Statement of cash flows FOR THE YEAR ENDED 30 JUNE 2012 Note

2012

2011

$

$

2,430,966

2,514,280

(2,199,589)

(2,285,493)

70,066

68,238

Finance costs paid

-

(32,011)

Income tax paid

-

(12,756)

301,443

252,258

Payment for property, plant & equipment

(10,674)

(57,815)

Net cash used in investing activities

(10,674)

(57,815)

(9,170)

(15,803)

CASH FLOW FROM OPERATING ACTIVITIES Receipts from members and others Payments to suppliers and employees Interest received

Net cash generated from operating activities

14

CASH FLOW FROM INVESTING ACTIVITIES

CASH FLOW FROM FINANCING ACTIVITIES Payment from Centre for Compliance Fund Repayment of bank loan

-

(491,715)

(9,170)

(507,518)

NET INCREASE/ (DECREASE) IN CASH HELD

281,599

(313,075)

Cash and cash equivalents at the beginning of the financial year

1,483,692

1,796,767

1,765,291

1,483,692

Net cash used in financing activities

CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR

5

The accompanying notes form part of these financial statements

24 ASIAL Annual & Financial Report 2012

ABN 91 000 813 365

Notes to the financial statements FOR THE YEAR ENDED 30 JUNE 2012 The financial statements are for Australian Security Industry Association Limited (the company) as an individual entity incorporated and domiciled in Australia. The company is limited by guarantee.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) and the Corporations Act 2001.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated.

The financial statements have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

The financial statements were authorised for issue on 27 August, 2012 by the directors of the company.

Accounting Policies (a)

Revenue Recognition Membersâ&#x20AC;&#x2122; and other subscriptions or fees are accounted for when received and recognised as income in equal monthly amounts over the period to which they apply.

Income in respect of the various activities of the company, with the exception of special events / functions, is recognised when invoiced. Income in respect of special events / functions is recognised when received.

Income received and expenses incurred in advance of activities are recognised when the activity is completed.

If a loss is expected, a provision for the likely loss is made as soon as it becomes apparent.

All revenue is stated net of Goods and Services Tax (GST).

(b)

Development of New Services Costs of developing new services are expensed as incurred.

(c)

Income Tax The company is exempt from income tax as a result of being registered as an employer organisation under the Fair Work (Registered Organisation) Act 2009.

(d)

Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at-call with banks, other short-term highly liquid investments with original maturities of six months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position.

(e)

Trade and Other Receivables Trade receivables are recognised and carried at the original invoiced amount. A provision for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written-off as incurred.

(f)

Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and any impairment losses.

Property Freehold land and buildings are shown at their fair value based on periodic, but at least triennial, valuations by external independent valuers, less subsequent depreciation for buildings.

In periods when the freehold land and buildings are not subject to an independent valuation, the directors conduct directorsâ&#x20AC;&#x2122; valuations to ensure the carrying amount for the land and buildings is not materially different to the fair value.

Increases in the carrying amount arising on revaluation of land and buildings are recognised in other comprehensive income and accumulated in the revaluation surplus in equity. Revaluation decreases that offset previous increases of the same class of assets are recognised in other comprehensive income and reduce the revaluation surplus in equity. All other decreases are charged to the statement of comprehensive income.

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

Office Equipment Office equipment is measured on the cost basis and is therefore carried at cost less accumulated depreciation and any accumulated impairment. In the event the carrying amount of office equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount. A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(i) for details of impairment).

ABN 91 000 813 365

ASIAL Annual & Financial Report 2012 25

Notes to the financial statements FOR THE YEAR ENDED 30 JUNE 2012

Depreciation The depreciable amount of all fixed assets including buildings, but excluding freehold land, is depreciated over the asset’s useful life to the company commencing from the time the asset is held ready for use.

The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset

Depreciation Rate

Buildings – straight line basis

2.5%

Office equipment – diminishing value basis 10% - 66.7% The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the statement of comprehensive income. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. (g)

Leases Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are recognised as expenses on a straight-line basis over the lease term.

(h)

Financial Instruments

Initial recognition and measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to either purchase or sell the asset (ie trade date accounting is adopted). Financial instruments are initially measured at fair value plus transactions costs except where the instrument is classified “at fair value through profit or loss”, in which case transaction costs are recognised in profit or loss immediately.

Classification and subsequent measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest rate method, or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.

Amortised cost is the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method.

Financial assets at fair value through profit or loss Financial assets are classified at ‘fair value through profit or loss’ when they are held for trading for the purpose of short-term profit taking, or where they are derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in fair value (ie gains or losses) being recognised in profit or loss.

Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost.

Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the entity’s intention to hold these investments to maturity. They are subsequently measured at amortised cost.

Financial liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.

26 ASIAL Annual & Financial Report 2012

ABN 91 000 813 365

Notes to the financial statements FOR THE YEAR ENDED 30 JUNE 2012 Impairment At the end of each reporting period, the company assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in profit or loss. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit or loss at this point.

Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial liability, which is extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss. (i)

Impairment of Assets At the end of each reporting period, the entity reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is recognised in profit or loss.

Where the future economic benefits of the asset are not primarily dependent upon the asset’s ability to generate net cash inflows and when the entity would, if deprived of the asset, replace its remaining future economic benefits, value in use is determined as the depreciated replacement cost of an asset.

Where it is not possible to estimate the recoverable amount of an assets class, the entity estimates the recoverable amount of the cash-generating unit to which the class of assets belong.

Where an impairment loss on a revalued asset is identified, this is recognised against the revaluation surplus in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that class of asset.

(j)

Trade and other payables Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the company during the reporting period which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.

(k)

Employee Benefits Provision is made for the company’s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may not satisfy vesting requirements. Those cash flows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows.

Contributions are made by the entity to employee’s superannuation funds and are charged as expenses when incurred.

(l)

Provisions Provisions are recognised when the entity has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period.

(m)

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 Taxation Office (ATO).

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities, which are recoverable from or payable to the ATO, are presented as operating cash flows included in receipts from customers or payments to suppliers.

ABN 91 000 813 365

ASIAL Annual & Financial Report 2012 27

Notes to the financial statements FOR THE YEAR ENDED 30 JUNE 2012 (n)

Comparative Figures Where required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

(o)

Critical Accounting Estimates and Judgments The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the company.

Key Estimates Impairment The freehold land and buildings were independently valued at 21 May, 2012 by AON Valuation Services. The valuation was based on the fair value less cost to sell. The critical assumptions adopted in determining the valuation included the location of the land and buildings, the current strong demand for land and buildings in the area and recent sales data for similar properties. The valuation resulted in a revaluation increment of $50,658 being recognised for the year ended 30 June, 2012 (note 8).

At 30 June, 2012, the directors reviewed the key assumptions made by the valuers at 30 June 2012. They have concluded that these assumptions remain materially unchanged, and are satisfied that carrying value does not exceed the recoverable amount of land and buildings at 30 June, 2012.

(p)

Economic Dependence The company is dependent on being recognised as the peak national body representing the interests of the security industry.

2. REVENUE

Revenue from operating activities Members' subscriptions

$

$

1,530,788

1,409,671

255,356

218,320

Member marketing fee

111,084

101,628

Cabling providers registrations

135,092

128,810

Magazine

117,040

169,995

Breakfast briefings

41,365

44,775

Grading, seminars and workshops

50,066

52,265

Insurance support

45,000

45,000

Special events

35,460

46,764

6,569

7,860

Strategic partnership Fairwork Ombudsman project grant Miscellaneous income Total revenue from operating activities

2011

Exhibition, conference and seminars

Consultancy

2012

Revenue from investment activities

30,000

27,937

-

103,011

11,896

31,734

2,369,716

2,387,770

Rental income

49,766

53,096

Interest and dividend

70,066

68,238

Total revenue from non-operating activities

119,832

121,334

Total revenue from ordinary activities

2,489,548

2,509,104

28 ASIAL Annual & Financial Report 2012

ABN 91 000 813 365

Notes to the financial statements FOR THE YEAR ENDED 30 JUNE 2012 3. OTHER EXPENSES

Include: Bad debts Auditor’s remuneration - audit Auditor’s remuneration - other services Public relations - government Industrial relations service Donations

915 18,000

6,675

22,660

27,675

40,660

6,000

98,176

115,804

110,882

-

5,400

Legal

19,045

12,830

Meetingsmembers, directors and reference groups

52,697

51,227

Website

32,301

41,240

Computer support service

62,441

40,814

Loss on disposal of assets

21,000

1,642

-

Other

187,085

186,250

504,690

588,394

4. TAX EXPENSE The company was exempt from income tax from 1 July 2010 as a result of being registered as an employer organisation under the Fair Work (Registered Organisation) Act 2009.

5. CASH AND CASH EQUIVALENTS Current Cash at bank and on hand

2012

2011

$

$

255,289

199,484

Short-term bank deposits

1,510,002

1,284,208

1,765,291

1,483,692

$13,162 (2011 $13,592) of the short-term bank deposits are bonds paid to the company by tenants.

6. TRADE AND OTHER RECEIVABLES

Current Trade receivables Less: provision for doubtful debts Provision for doubtful debts as at 30 June 2011 Charge for year Written off Provision for doubtful debts as at 30 June 2012

61,580

86,782

(20,000)

(20,000)

41,580

66,782

20,000

30,000

-

(10,915)

-

915

20,000

20,000

Credit Risk – Trade Receivables There are no trade receivables in respect of subscriptions as they are invoiced only when received. The company’s credit terms in respect of services and activities are 30 days. Overdue debts are pursued and monitored by management. They are assessed for impairment and provided for where specific circumstances indicate that the debt may not be paid in full to the company.

The company does not have any material credit risk exposure to any single receivable or group of receivables.

ABN 91 000 813 365

ASIAL Annual & Financial Report 2012 29

Notes to the financial statements FOR THE YEAR ENDED 30 JUNE 2012 The following table details the companyâ&#x20AC;&#x2122;s trade receivables exposed to credit risk (prior to collateral and other credit enhancements) with ageing analysis and impairment provided thereon.

The balances of receivables that remain within the initial trade terms (as detailed in the table) are considered to be of high credit quality.

Gross amount

Past due and impaired

Past due not impaired

Not due not impaired

$

$

$

$

<30 days

32,574

-

-

32,574

31-60 days

21,156

12,150

9,006

-

61-90 days

100

100

-

-

2012

>90 days

7,750

7,750

-

-

61,580

20,000

9,006

32,574

2011 <30 days

22,622

-

-

22,622

31-60 days

40,084

-

-

40,084

61-90 days

13,051

8,975

4,076

-

>90 days

11,025

11,025

-

-

86,782

20,000

4,076

62,706

The company does not hold any financial assets whose terms have been renegotiated, but which would otherwise be past due or impaired.

Receivables that are overdue and impaired are covered by the provision for doubtful debts of $20,000.

7. OTHER ASSETS

Current Prepayments

2012

2011

$

$

80,345

57,157

2012

2011

8. PROPERTY, PLANT & EQUIPMENT

Freehold land and building- at independent valuation Less: accumulated depreciation Office equipment, furniture and fittings- at cost Less: accumulated depreciation

Total property, plant and equipment

30 ASIAL Annual & Financial Report 2012

$

$

2,270,000

2,224,559

-

(3,655)

2,270,000

2,220,904

353,881

355,635

(201,536)

(171,954)

152,345

183,681

2,422,345

2,404,585

ABN 91 000 813 365

Notes to the financial statements FOR THE YEAR ENDED 30 JUNE 2012 Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Land and Building

Office Equipment and Software

Total

$

$

$

2,222,462

177,149

2,399,611

Additions at cost

-

57,817

57,817

Disposals

-

-

-

2011 Balance at the beginning of the year

Depreciation

(1,558)

(51,285)

(52,843)

Carrying amount at end of year

2,220,904

183,681

2,404,585

Balance at the beginning of the year

2,220,904

183,681

2,404,585

Additions at cost

-

10,674

10,674

Disposals

-

(1,642)

(1,642)

2012

Revaluation increment

50,658

-

50,658

Depreciation

(1,562)

(40,368)

(41,930)

2,270,000

152,345

2,422,345

Carrying amount at end of year Asset revaluations

The freehold land and buildings were independently valued at 21 May, 2012 by AON Valuation Services. The valuation was based on the fair value less cost to sell. The critical assumptions adopted in determining the valuation included the location of the land and buildings, the current strong demand for land and buildings in the area and recent sales data for similar properties. The valuation resulted in a revaluation increment of $50,658 being recognised in the revaluation surplus for the year ended 30 June, 2012.

9. TRADE AND OTHER PAYABLES

Current Trade payables Employee benefits (other than office holders) Other current payables

2012

2011

$

$

123,478

104,904

30,762

27,460

83,607

79,119

237,847

211,483

78,977

71,763

Cablers registration

174,754

209,965

Membership subscriptions

986,119

980,576

Unearned income Events income

Advertising

Financial liabilities at amortised cost classified as trade and other payables.

ABN 91 000 813 365

4,636

818

1,244,486

1,263,122

1,482,333

1,474,605

237,847

211,483

ASIAL Annual & Financial Report 2012 31

Notes to the financial statements FOR THE YEAR ENDED 30 JUNE 2012 10. PROVISIONS

Current Provision for employee benefits

62,152

52,156

Non-current Provision for employee benefits

42,260

54,295

Provision for employee benefits Balance at 1 July 2011

106,451

97,788

-

8,663

Additional provision raised during the year Amounts used Balance at 30 June 2012

(2,039)

-

104,412

106,451

11. CENTRE FOR COMPLIANCE Current Movement in Centre for Compliance fund: Balance at 1 July 2011

30,704

46,506

Less: expenditure

(9,172)

(15,802)

Balance at 30 June 2012

21,532

30,704

12. SHARE CAPITAL There are no issued shares. The company is limited by guarantee. The liability of each member in respect of liabilities of the company is limited to $100.

13. SEGMENT INFORMATION

Segment locations The Company operates in one business and geographical segment being a not-for-profit industry association within the Security Industry throughout Australia.

14. CASH FLOW INFORMATION

Reconciliation of the profit for the year with cash flow from operations:

2012

2011

$

$

Non-cash items

250,170

208,099

Depreciation

41,930

52,843

(Decrease) / increase in employee provisions

(2,039)

8,666

1,642

-

Profit after tax

Loss on disposal of fixed assets Changes in assets and liabilities Decrease / (increase) in trade receivables Decrease / (increase) in prepayments Increase / (decrease) in payables

433,064 4,506

26,362

(116,765)

(18,636)

(325,395)

Increase / (decrease) in income tax payable

-

(12,760)

Net cash flow from operating activities

301,443

252,258

Increase / (decrease) in deferred income

25,202 (23,188)

The accompanying notes form part of these financial statements

32 ASIAL Annual & Financial Report 2012

ABN 91 000 813 365

Notes to the financial statements FOR THE YEAR ENDED 30 JUNE 2012 15. RELATED PARTY TRANSACTIONS Any person(s) having authority and responsibility for planning, directing and controlling the activities of the company, directly or indirectly, including any director (whether executive or otherwise) is considered key management personnel.

The directors do not receive any compensation from the company other than reimbursement of their travel expenses incurred as directors. Directors who are members of the company deal with the company on the same terms as all other members unless otherwise stated.

16. FINANCIAL RISK MANAGEMENT The company’s financial instruments consist of deposits with banks and accounts receivable and payable.

The carrying amounts for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies in Note 1, are as follows:

Note

2012

2011

$

$

Financial Assets

Cash and cash equivalents

5

1,765,291

1,483,692

Receivables

6

41,580

66,782

1,806,871

1,550,474

237,847

211,483

Total Financial Assets Financial Liabilities Financial liabilities at amortised cost: Trade and other payables (excluding annual leave and deferred income)

9

Financial Risk Exposures and Management The main risks the company is exposed to through its financial instruments are credit risk, liquidity risk and market risk relating to interest rate risk.

a. Credit Risk Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss for the company.

The company’s material credit risk exposures are trade receivables and cash deposited with banks.

The company’s exposure to credit risk arising from trade receivables is dealt with in Note 6.

The company deposits cash only with government guaranteed Australian banks. Cash was with the following banks at the year end: 2012

2011

$

$

ANZ

455,097

199,484

ING

523,382

725,978

Citibank

243,375

279,130

Rabo Direct

295,742

279,100

CBA

247,695

-

1,765,291

1,483,692

5

b. Liquidity Risk Liquidity risk arises from the possibility that the company might encounter difficulty in settling its debts or otherwise meeting its obligations in relation to financial liabilities. The company manages this risk by preparing regular cash flow forecasts and managing credit risks.

The table below reflects undiscounted financial liabilities and cash flows from financial assets that reflect management’s expectation as to the timing of realisation. Actual timing may therefore differ from that disclosed.

ABN 91 000 813 365

ASIAL Annual & Financial Report 2012 33

Notes to the financial statements FOR THE YEAR ENDED 30 JUNE 2012

Financial liability and financial asset maturity analysis

Financial liabilities due for payment

Within 1 year

1 to 5 years

Over 5 years

Total

2012 $

2011 $

2012 $

2011 $

2012 $

2011 $

2012 $

2011 $

224,684 224,684

197,891 197,891

13,162 13,162

13,592 13,592

-

-

237,846 237,846

211,483 211,483

Cash and cash equivalents 765,708 Trade receivables 41,580

912,071 66,782

999,583 571,622 -

-

- 1,765,291 1,483,693 41,580 66,782

807,288 978,853 999,583 571,622 582,604 780,962 986,421 558,030 -

- 1,806,871 1,550,475 - 1,569,025 1,338,992

Trade and other payables Total expected outflows Financial assets- cash flows realisable

Total anticipated inflows Net inflow on financial instruments

c. Market Risk Interest rate risk Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting period whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments.

At the year end all cash deposited as term deposits with Rabobank, CBA, ANZ and Citibank (approximately 56% of cash on deposit) were at fixed interest rates and cash deposited with Rabobank and ING was variable rates (approximately 44% of cash on deposit).

Sensitivity Analysis

Note

A 2% variation in interest rates during the year would have affected profit before income tax for the year by

2012 $

2011 $

23,039

24,479

Net Fair Value Fair value estimation The fair values of financial assets and financial liabilities are considered to be equal to their carrying values as presented in the statement of financial position.

17. CAPITAL MANAGEMENT The directors control the capital of the entity to ensure that adequate cash flows are generated to fund its objectives.

Risk management policies are approved and reviewed by the Board on a regular basis. These include credit risk policies and future cash flow requirements.

The entity’s capital consists of retained earnings. A significant portion of the company’s net assets consists of cash and cash equivalents. The directors aim to maintain sufficient cash and readily realisable assets to be able to cover 2 years’ operating expenses.

Note

2012

$

$ 2,701,284

2,400,456

5

1,765,291

1,483,692

Retained earnings Cash and cash equivalents

2011

18. INFORMATION TO BE PROVIDED TO MEMBERS In accordance with the requirements of the Fair Work (Registered Organisations) Act 2009, the attention of members is drawn to the provisions of sub-sections (1), (2) and (3) of section 272 which reads as follows: (1) A member of a reporting unit, or the General Manager, may apply to the reporting unit for specified prescribed information in relation to the reporting unit to be made available to the person making the application.

(2)The application must be in writing and must specify the period within which, and the manner in which, the information is to be made available. The period must not be less than 14 days after the application is given to the reporting unit.

(3)A reporting unit must comply with an application made under subsection (1).

19. COMPANY DETAILS The registered office and principal place of business of the company is 41 Hume Street, Crows Nest NSW 2065.

34 ASIAL Annual & Financial Report 2012

ABN 91 000 813 365

ASIAL Code

of Professional Conduct 1. For the purposes of ASIALâ&#x20AC;&#x2122;s Code of Professional Conduct (the Code), Members shall include, as applicable, any of their employees and contractors.

2. Members shall conduct their activities in a professional and competent manner with respect for the public interest, maintaining the privacy and confidentiality in their dealings, and shall at all times act with integrity in dealing with clients, employees or sub-contractors, past and present, with their fellow Members and with the general public.

The objective of the Code is for Members to adopt best practice industry standards.

3. Members shall not intentionally disseminate false or misleading information, whether written, spoken or implied, nor engage in false, misleading or deceptive conduct or otherwise bring the security industry into disrepute. Members have a duty to maintain truth, accuracy and good taste in advertising and sales promotion.

4.

Members shall not represent conflicting or competing interests except with the express consent of those concerned given only after full disclosure of the facts to all interested parties.

5.

Members shall refrain from knowingly associating with any enterprise, which uses improper or illegal methods for obtaining business.

6. Members shall not intentionally injure the professional reputation or practice of another Member.

7. Members shall comply with all applicable State and Federal legislation covering security providers and in particular statutory obligations, including but not limited to matters relating to consumer laws, work health and safety and workplace relations laws.

9. Members shall help to improve the body of knowledge of the profession by exchanging information and experience with fellow Members, participating in industry related programs designed to raise the standard of service delivery, and by applying their special skill and training for the benefit of others.

10. Members shall refrain from using their relationship with the Association in such a manner as to state or imply an official accreditation or approval beyond the scope of membership of the Association and its aims, rules and policies.

11. Members shall cooperate with fellow Members in upholding and enforcing the ASIAL Code of Professional Conduct.

12. Members shall have in place procedures to deal appropriately and promptly with complaints about the provision of its services and actively engage in the resolution of complaints raised via ASIALâ&#x20AC;&#x2122;s Dispute Resolution Policy and Procedure.

13. Members shall maintain appropriate and accurate records in accordance with all relevant statutory requirements.

14. Where an alleged breach of this Code is appropriately brought to the attention of ASIAL, then ASIAL will in the first instance raise this matter in writing with the Member.

ASIAL will provide the Member with the opportunity to take remedial action, if that is appropriate under the circumstances, or where remedial action should have been but has not been carried out by the Member, then ASIAL is to inform the Member that it will take the appropriate disciplinary action by way of a show cause notice why their membership should not now be cancelled.

8. ASIAL is to be informed when the Memberâ&#x20AC;&#x2122;s attention has been drawn to any breach by that Member of the Code.

35

ANNUAL & Financial Report 2012

Security Industry House 41 Hume Street, Crows Nest, NSW 2065 Tel: 02-8425 4300 Fax: 02-8425 4343 Email: security@asial.com.au Web: www.asial.com.au