2021 Annual & Financial Report

2021 ANNUAL & FINANCIAL REPORT THE PEAK BODY FOR SECURITY PROFESSIONALS

ASIAL 2021 Annual & Financial Report

1

ASIAL membership provides the very best specialist security industry advice and support to help your business succeed.

VISION A safe and secure Australia.

MISSION To continue to be the leading security association where membership is a mark of distinction that is valued by our members, the public and government.

www.asial.com.au 2

ABN 91 000 813 365

BOARD OF DIRECTORS

SECRETARIAT

President

John Gellel

Bryan de Caires

Vice President

Rachaell Saunders

Chief Executive Officer and Secretary General Manager

John Fleming

Directors

Tamara Bayly, Brian Foster, Mark Guiney, Fred Khoury, Kevin McDonald, Michael Smith, Suzette Po-Williams

Finance and Administration Manager

Sunny Moon

Auditor

SDJA

Marketing & Communications Coordinator

Brenda Jackson

Solicitor/Attorney

Goldrick Farrell Mullan

Marketing & Communications Assistant

Kathleen Smith

IT Systems Support Officer

Nadine Keady

Senior Membership Officer

Alexandra Firth

Membership Coordinator

Leonie Fraser

Member Liaison Officer

Tania Laird

Membership and Cabling Coordinator

Lisa Collier

Membership Coordinator

Kiara Hutchinson

CONSULTANTS Monitoring Centre Certification Inspections

Robin Burrows ATSC

Industrial Relations

Chris Delaney Chris Delaney & Associates

Compliance & Regulatory Affairs

Peter Johnson Corporate Application

Corporate Communications

Steve Cropper Reputation Australia

Special Consultant

Damien Smith Enterprise Care Pty Ltd

CONTENTS President’s Report

04

Auditor’s Independence Declaration

25

Secretary’s Report

06

Report Required Under Subsection 255(2A)

26

Growing Membership

07

Independent Audit Report

27

Support Through Challenging Times

10

29

Strong and Effective Industry Representation

12

Statement of Profit or Loss and Other Comprehensive Income

Supporting Our Members

14

Statement of Financial Position

30

The Latest Information & Advice

16

Statement of Changes In Equity

31

Compliance & Regulatory Support

18

Statement of Cash Flows

32

Director Profiles

20

Notes to the Financial Statements

33

Directors’ Operating Report

22

ASIAL Code of Professional Conduct

54

Directors’ Declaration

24

PRESIDENT’S REPORT As we move into the new financial year, we have a golden opportunity to reappraise our position as an industry and lay down the foundations for continuing success in the future.

That well-worn phrase, “The new normal” is especially meaningful to us now as our industry prepares to face significant challenges in the next few years. With a united voice and a shared purpose, we can ensure that Security companies in Australia maintain and even grow their business in a rapidly changing world.

standards. This way we can deliver uniformly high standards in security services for clients across Australia. Sadly, the states and territories do not yet share this point of view and the work continues to convince all parties of the benefits to industry and indeed the nation from a Team-Australia approach.

The past financial year has been remarkable for the Security Industry, in particular the way we have adapted to constantly changing conditions imposed by COVID. The industry has shown itself to be resilient, resourceful and creative which has contributed to continuity of services and a steady income stream for the majority of the industry.

On a higher level, for the first time, the industry investigated in 2020-21 how people outside the industry viewed security in the context of their own lives. We have developed our understanding of the public’s priorities with respect to their personal and professional safety. The inaugural Australian Security Confidence Index, commissioned by ASIAL and conducted by Nielsen IQ, set the benchmark for us to work from in making the clever country feel more and more like the safe country too. It will be revealing to conduct the survey again in 2022 and measure how far we have moved the needle in terms of creating a sense of increased security in the hearts of Australians. This will be an important challenge for our industry in the coming year.

This has been due in very large part to the energy and effort of the out-going ASIAL President, Kevin McDonald, who has devoted over 20 years voluntarily to ASIAL and the industry. As I move from my previous role as Vice-President to President of ASIAL, I acknowledge Kevin’s efforts and accomplishments and thank him on behalf of our industry for his years of service.

Despite the rigours of 2020-21, the industry has made important gains. At one level, we created a new Code of Practice for the vexed area of Subcontracting, tightening up practices and setting ourselves up to deliver services to clients at a higher standard, irrespective of local regulatory regimes in various states or territories. We also helped develop a new national standard in Monitoring Centre Management (AS2201.2), which for the first time included cyber and risk management, which are both core considerations in today’s security management.

The industry has been conducting a never-ending campaign in the halls of government Australia-wide in pursuit of an even playing field in regulation. As we all know, we work in a patchwork quilt of varying regulatory standards across state borders. This often means excessive costs in insurance for example, for security operators who work across borders. It gives rise to inconsistencies in service delivery from state to state and is a source of frustration for many security companies. The Automatic Mutual Recognition Amendment, which passed the Federal Parliament in June 2021, could have been a major step forward in achieving continuity and consistency across state borders. Or at least it would, if some States and Territories had not determined in advance that they would claim exemption from it. Their argument – that inconsistencies in regulatory standards makes their own state vulnerable to cross-border operators working in their state – highlights what ASIAL has been telling governments for 20 years. It graphically demonstrates that all governments in Australia must put aside their own narrow self-interest and work as a team to adopt nationally consistent regulatory

4

ABN 91 000 813 365

It was saddening to see a negative element creep into the discourse from within our own ranks, including social media, during the past year. When the industry stands to gain so much from a united voice, dissent, especially dissent for dissent’s sake, only weakens our collective strength and makes us doubt ourselves. Now more than ever, it is crucial that the industry stand united and take collective ownership of the objectives before us.

The Security 2025 project lays out in detail the key issues confronting the industry’s prosperity in coming years. As the name suggests, Security 2025 identifies the coming challenges to be met to ensure the industry is set up for success in a fast-changing world. Security 2025 is the base platform on which the ASIAL Board will proceed. It frames the chief initiatives to be rolled out in next few years and informs the priorities, budgets and personnel to be allocated to achieving those near-term goals. The report is comprehensive and I will not detail it here. The key elements are: 1. Equipping the industry with the skilled personnel and technical expertise to deliver value-added advice and services to clients, particularly in the area of cyber security 2. Repositioning the industry in the minds of customers and the public at large as a central member of Australia’s Frontline Security Team 3. And as part of the points above, taking immediate steps to secure a skilled labour supply to equip the industry to deliver increasing levels of service and personnel in a world that will need more security – not less.

We must prioritise recruitment of skilled personnel right now – not just to satisfy current needs but to ensure we can meet future demand. To do this, we must make Security an attractive career choice for new entrants to the labour market. To that end, we are developing a communication strategy designed to highlight the appeal of a job in security with a real career path that can attract desirable salaries and exposure to exciting career opportunities.

Increasing apprenticeships, especially in electronics, presents younger workers with an attractive career path and adds tangible value to the industry. On a larger scale, it is a meaningful way for the industry to make a genuinely valuable contribution to the Australian economy.

We should also address the long-overdue issue of encouraging women to enter the security industry. The traditional model of ‘big boys’ occupying security jobs does not have meaning any more in the 21st century, considering the diversity and increasing levels of technical sophistication in the industry. The opportunity here is to update the industry’s image and make ourselves more meaningful and more attractive in the broader recruitment spectrum. But this is something that ASIAL cannot do alone. It will take an allof-industry approach to deliver meaningful outcomes in the critically important recruitment space and we will roll out an initiative to achieve that during the coming financial year.

I wish to point out that this difficult year, more than most years, the ASIAL Secretariat has gone above and beyond the call of duty and has continued to deliver valuable results for the industry. It is easy and even fashionable to pin the industry’s problems on the hard-working people in our Secretariat. But knowing them as I do, I can state categorically that CEO Bryan de Caires and his team deliver for the industry every day and we too often take them for granted. I take this occasion to acknowledge and thank them.

Even more importantly, it is appropriate that all of us in the industry give ourselves a well-earned pat on the back for achieving growth in our sector, delivering more to our clients with less and making a significant, albeit sometimes overlooked contribution to Australia’s ongoing success.

John Gellel President ASIAL

With a united voice and a shared purpose, we can ensure that Security companies in Australia maintain and even grow their business in a rapidly changing world.

ASIAL 2021 Annual & Financial Report

5

SECRETARY’S REPORT With the COVID-19 pandemic continuing to disrupt the everyday lives and activities of Australians, the past year was one of the Association’s busiest and most challenging. The Association rose to the challenge with the Secretariat team responding to 294,000 inbound and outbound emails/calls and sending out 1.9 million email notifications.

It is testament to the support provided to members throughout the pandemic that the Association achieved strong member renewals and 112 additional new members joining during the year.

Whilst total income for the year was down on the previous year, due to the cancellation of face-to-face industry events (such as the Security 2020 Exhibition and Conference, 2020 Australian Security Industry Awards for Excellence and industry breakfast briefings) and reduced investment income (due to lower interest rates) this was offset by a reduction in total expenses for the year.

A surplus of $110,421 was posted for the year. The threeyearly re-evaluation of Security Industry House saw a gain of $862,366, resulting in total comprehensive income for the year of $972,787.

5-Year Performance Summary (2017-2021)

The Association continued to make significant investments in a range of initiatives to better service the needs of members.

Among these include engaging the Australian Security Research Centre to identify and explore opportunities which will allow the industry to professionalise further and enhance its overall capability. The report, to be published in September, will provide a roadmap of where private security is headed.

Other important research included engaging NielsenIQ to take a pulse of the Australian population with regards to personal and workplace safety, resulting in the Australian Security Confidence Index published in March 2021.

To strengthen its communications capability and provide greater advocacy for members, the Association engaged Reputation Australia to provide corporate communications advice and develop strategies on a wide range of industry issues and initiatives. The marketing and communication team’s activities has seen the reach of ASIAL’s communication channels grow significantly over the past year. Planning was undertaken to roll out a comprehensive communications campaign to promote the important role performed by the industry later this year.

Another significant member initiative embarked on during the year was a major upgrade of the Association’s member management system. Once completed, the new system will provide members with an enhanced user interface and experience.

Despite the challenging environment faced during the past financial year, thanks to the efforts of the dedicated Secretariat team, ASIAL Board of Directors, Convenors and the continued support of members, the Association has pulled through in good shape.

$6.0m $5.5m $5.0m $4.5m $4.0m

Bryan de Caires

$3.5m

Chief Executive Officer and Secretary

$3.0m $2.5m $2.0m $1.5m $1.0m $0.5m $0.0m

2017

2018

2019

Total income Surplus/Loss

6

ABN 91 000 813 365

2020

Total Expenses Equity

2021

GROWING MEMBERSHIP In a year in which the Security Industry adjusted to the new COVID normal featuring lockdowns and uncertainty, where the economy went in and out of recession, ASIAL continued to provide tailored advice and support to its members throughout.

The importance of the service provided by the Association to the industry during this difficult time was underscored by a 4.25% growth in membership to 2,749 (an increase of 112 members over the year).

Throughout, the ASIAL Secretariat team of 11 staff has continued to engage with members and provide support.

This engagement is reflected in the 294,000 inbound and outbound emails/calls handled by the Secretariat, and the 1.9 million email notifications sent out.

5-Year Membership

2,749

3,000

2,623

2,639

2,578

2,637

2,500

2,000

1,500

1,000

500

0 June

2017

June

2018

June

2019

June

2020

June

2021

ASIAL 2021 Annual & Financial Report

7

2020-2021 HIGHLIGHTS

2,749 MEMBERS ACROSS AUSTRALIA UP 4.25%

46

MEMBERS

25+ years

428 MEMBERS

16-24 years

360

343

MEMBERS

11-15 years

MEMBERS

6-10 years

6,482 REGISTERED CABLERS UP 2.7% 8

ABN 91 000 813 365

MEMBER ENGAGEMENT

Website Page Views

Document Downloads

469,000

9,628

Podcast Downloads

Inbound and Outbound Emails/Calls Handled by the ASIAL Secretariat

3,968

294,000

Email Notifications

ASIAL Registered Cablers

1.9 Million

6,482

DOCUMENTS DOWNLOADED INCREASE 28% ASIAL 2021 Annual & Financial Report

9

SUPPORT THROUGH CHALLENGING TIMES

During the challenging COVID pandemic period, the Association redoubled its efforts to provide members with access to expert one-one industry advice on compliance, industrial relations, technical and practical issues.

Through almost 2 million email notifications, ASIAL communicated breaking news and information to members through its extensive communication networks and relationships within government and the industry.

Unfortunately, due to the COVID pandemic many of ASIAL’s scheduled face-to-face industry events were unable to be held. However, in their place the Association organised a series of virtual webinars and videos to keep members informed. Among the topics addressed were COVID-19 and Workplace Impacts presented by the Fair Work Ombudsman; COVID-19 Strategies for Recovery and Business Advice presented by CPA Australia; a Legislation and Investment Update by Australian Super; An introduction to Tenders; Mental Health in the Security Industry; Horizon Part 1, The Big Challenges and Part 2, Beyond the Horizon; plus regulatory updates covering Central North Queensland, NT, VIC, SA, WA and QLD. A limited number of Industry Breakfast Briefings were held in NSW, ACT, TAS and QLD due to COVID-19 restrictions.

10

ABN 91 000 813 365

Through almost 2 million email notifications, ASIAL communicated breaking news and information to members through its extensive communication networks and relationships within government and the industry.

ASIAL 2021 Annual & Financial Report

11

STRONG AND EFFECTIVE INDUSTRY REPRESENTATION The reach of ASIAL’s communication channels continues to grow and the Association was regularly approached by media for commentary and input on industry issues and developments.

Media appearances and articles included 7.30 Report (ABCTV); 2UE News and affiliated radio stations; Wall Street Journal; Fairfax news (VIC, NSW, QLD and WA); the Australian; Herald-Sun; Daily Telegraph; Courier Mail; Adelaide Advertiser; NT News; Mercury; Geelong Advertiser and Cairns Post; 7 News; West Australian; ABC Radio (WA); NSW Central West Press; Metro FM Radio network; Australian Security Magazine; My Security; Security Solutions Magazine; Security Electronics and Networks; The Bursar; Property Manager; The Australian Local Government Yearbook; Pubs and Clubs; Facilities Perspectives; Aged Care Australia; Child Care Australia and Cyber Security Magazine.

MEDIA Media Mentions 2019-2020 2020-2021

Total Audience Reach Potential

73

2019-2020

120

SOCIAL MEDIA FOLLOWERS + 13.27% + 9.62% + 12.57%

12

ABN 91 000 813 365

874 3,025 12,873

2020-2021

26 million

59 million

READERSHIP

10,000 MEDIA RELEASES

Interview on ABC 7.30 Report

13

VIDEOS PRODUCED 2020 – year in review; Subcontracting Code of Practice; Australian Security Confidence Index, The Horizon Project, International Security Officers’ Day and International Security Officers’ Day Patron Nick Kaldas, with 609 total views of videos.

PODCAST DOWNLOADS

3,968 ASIAL 2021 Annual & Financial Report

13

SUPPORTING OUR MEMBERS

Technical and Licensing Support

Redundant Centre Certification

Expert advice, help and guidance on technical security matters.

ASIAL’s program provides certification that a Monitoring Centre’s critical business functions will either continue to operate despite serious incidents or disasters that might otherwise have interrupted them, or will be recovered to an operational state within a reasonably short period at a redundant centre located elsewhere.

Monitoring Centre Certification

Regulatory and Compliance Support

ASIAL’s certification programs include the highly respected Monitoring Grading Scheme program for alarm monitoring centres which has operated for more than 25 years. ASIAL’s program has 36 participating monitoring centres.

Licensing and regulatory compliance advice and support from highly experienced industry specialist.

Class 5 Capability Certification of Control Equipment ASIAL provides Certification for Class 5 Capability of Control Equipment with respect to AS/NZS 2201.1:2007.

14

E-Learning Platform ASIAL’s eLearning catalogue of over 100 courses provides professional development for members.

Timely News and Information

Free Jobs Board

Industry news, articles and research through ASIAL’s Security Insider magazine, First Alert e-newsletter, member bulletins, member only website content, social media channels and podcasts.

ASIAL Security Jobs Board is a complimentary service that allows members to post job vacancies at no charge. There is a fee for non-members.

ABN 91 000 813 365

Safe Workplace Management System

Workplace Relations

ASIAL’s SWMS program is a cost-effective WHS system tailored to the Security Industry that has been designed to meet the requirements of Australian Standard 4801 and Safety Standard ISO45001.

Expert over the phone advice on Industrial Relations including, hiring and dismissal of employees, rates of pay, Enterprise Bargaining Agreements, annually updated Award Rates of Pay Schedules and more. ASIAL Code of Practice Protective Security Services Subcontracting was released in the 2020-2021 financial year.

Research

Complaints

Security Industry research conducted over the last year includes the ASIAL Australian Security Confidence Index 2021 and the Horizon 2025 research project.

13 complaints against members were received in 2020-2021, down from 21 from the previous year.

ASIAL 2021 Annual & Financial Report

15

THE LATEST INFORMATION & ADVICE

ASIAL Workplace Relations On a daily basis, members are provided with help and support in dealing with a wide range of issues affecting the smooth operation of their business. Apart from the seemingly constant changes to legislation and regulations, members seek advice on dealing with employee issues – everything from rates of pay and award interpretation or applying leave provisions, through to employees refusing to follow directions to allegations of unfair dismissals or adverse action.

The COVID-19 pandemic has been particularly challenging for many businesses and with each new lockdown or restriction members are variously affected by loss of work or high demand in different areas. The frustration arising from inconsistent approaches by various governments has often created workplace difficulties surrounding the rights and responsibilities of both employers and employees. ASIAL workplace relations has provided sound practical advice, education and templates to assist members through these difficult times. We have also advocated industry concerns to both State and Commonwealth governments.

Decisions on which workers should and which must be vaccinated has caused confusion. Clients demand vaccinated security personnel while Government Health Orders are unhelpful when attempting to deal with employees who refuse to wear masks, or gloves, or to be vaccinated.

JobKeeper 2.0 The JobKeeper scheme was extended from 28 September 2020 until 28 March 2021.

There were two separate extension periods, for each extension period an additional actual decline in turnover test applied and the rate of the JobKeeper payment was different.

ASIAL Subcontractor Code of Practice for Protective Security Services - the ASIAL Code of Practice covering the use of subcontractors was finalised during the year and came into effect from 1 July 2021. The next step will be the development of an accreditation process for end users to operate to support the Code.

Changes to Awards/Legislation

The COVID-19 pandemic has been particularly challenging for many businesses and with each new lockdown or restriction members are variously affected by loss of work or high demand in different areas.

16

ABN 91 000 813 365

Throughout the year the issue of Casual employment has created confusion and concern for many in the Security Industry. First, we had Workpac v Skene, then Workpac v Rossato with Federal Court decisions providing the Casual Loadings as well as access to various forms of paid leave.

Then, the Commonwealth enacted legislation to outlaw “double-dipping” and redefine Casual employment. Next, we must develop submissions to the Fair Work Commission (FWC) to deal with award variations necessitated by the change in the Fair Work Act 2009.

Wage Theft Laws Both the Queensland and Victorian Government passed laws on “Wage Theft”. The laws also amend other legislation, allowing for the criminal prosecution of employers of an offence of “stealing” through failing to pay an employee in accordance with a lawful industrial instrument, including penalty rates and superannuation.

Review of Private Security Act Victoria - ASIAL lodged submissions as part of the review of the Private Security Act 2004. From a workplace relations perspective, we have focused on sham contracting, misuse of ABN holder, the need to prohibit international student and holiday visa holders from access to a security license and the need for more effective and focused enforcement by regulators.

Workplace Health and Safety The Work Health and Safety Act 2019 (WA) (the Act) was passed by the Western Australian Parliament on 3 November 2020. Most provisions will not come into effect until the second half of 2021 or possibly even 2022.

The Act incorporates the OSH and MSI Acts into a single act covering all WA workplaces. For the most part, it embraces the Commonwealth Model WHS Law which is harmonised across the other states and territories, save for Victoria.

Annual Wage Review In June 2021, the Fair Work Commission announced a minimum wage increase of 2.5% to come into effect in most awards from the first full pay period on or after 1 July 2021.

Updated Pay Schedules for Security Services Industry Award 2021 were made available to members.

Protective Security COVID continued to impact on the protective security sector, and particularly in areas of hospitality and events. Response, recovery and renewal remain a business challenge. For protective security providers, the challenge has been to find ways of managing their business to take advantage of opportunities generated by COVID. There was a strong demand for ASIAL services from members with requests for information, clarification, advice and support associated with ever changing COVID challenges.

Support and advice included, cross border travel, permit requirements, safe work plans, hygiene advice and training, mental health support, industrial relations, business development, licensing, along with direct presentation to governments, authorities, and regulators.

The protective security sector’s involvement in the COVID response relating to quarantine programs was and continues to be a massive operation. Demand during the first half of 2021, saw the industry providing between 1,000-1,500 security officers daily to assist in the operation of hotel quarantine programs in New South Wales, South Australia, Tasmania and West Australia. On the whole the industry has provided these services in a professional and competent manner.

However, the challenges of operating hotel quarantine programs were also highlighted during the Victorian Hotel Quarantine Inquiry which identified flaws with almost every aspect of this government’s setup and oversight of the scheme. In her final report, retired Judge Jennifer Coate found that the decision to use private security guards, without adequate training in infection control, was an “orphan” that neither the Premier nor any of his ministers took any responsibility for.

What must be learnt from this experience is the importance of strong operating procedures, sound management structures and compliance practices and robust staff selection and training and an understanding of the contracted requirements. It also highlights the need for robust, transparent and ethical procurement practices that sets out clear contract deliverables that do not place anyone at an unacceptable risk.

The retention and acquisition of security personnel, particularly in the protective security services sector is an issue of ongoing concern within the industry. With the loss of work in the crowd control sector, many experienced employees have exited the industry seeking work elsewhere.

Attracting suitable new entrants to the industry has proven challenging, with many security providers struggling to fill vacancies. It was encouraging to see the NSW Government’s recognition of this issue with the development of a funded recruitment and training program for security officers. ASIAL will continue to monitor the success of the program and engage with governments around the country to seek similar supported programs.

An ongoing industry frustration is the unacceptable delays experienced in obtaining individual and business security licences due to slow processing times by security regulators.

Whilst it is understood that security regulators have had to grapple with the challenges of COVID like everyone else, individual licence processing times of 6-8 weeks or more, even longer times for businesses is not good enough.

Throughout COVID, ASIAL has continued to maintain a voice for the industry with government and regulators and to advocate on behalf of members in a “race to the top”.

ASIAL 2021 Annual & Financial Report

17

COMPLIANCE & REGULATORY SUPPORT Workplace Health and Safety

Compliance and Regulation

The COVID pandemic has underscored the importance of effective workplace health and safety (WHS) strategies. To assist members in complying with their WHS obligations, ASIAL continues to partner with Integrum Management Systems to provide a robust online solution designed specifically for the security sector, allowing frontline staff to capture data and trigger workflows with a clear audit trail.

Compliance is a key priority in supporting and maintaining security operations. It is much more than just the basic rules about taxes, accounting and safety at work laws.

Security operations are required to comply with a large and increasingly complex set of laws that have a significant impact on security operations. Security licensing, WH&S, insurance, modern slavery, labour hire, portable long service, and wage theft legislation are further complicated by jurisdictional variations.

Subscribed members have online access to safety management documentation eliminating paper-based records. The Employee Training and Licence registers ensures that all staff possess the required training, including induction training, to perform their respective work duties and administrators can record current security licences and registrations with expiry date reminders. This feature is of utmost importance to the security industry to ensure compliance on work sites and important when responding to requests for tender.

Incident reporting to record all accidents, incidents and near miss incidents is another important feature. Automatic risk calculation allows quick decisions to be made on site. Hazard and Risk Assessments forms allow for monitoring of incidents and future preventions.

The ASIAL SWMS program is an affordable WHS system tailored to the Security Industry that has been designed to meet the requirements of Australian Standard 4801 and Safety Standard ISO45001.

18

ABN 91 000 813 365

ASIAL members continue to take advantage of the many services on offer, including support with business forms, standard operating procedures, business plans and direct representation with regulators. The risks of non-compliance are costly, not just with regards to a monetary penalty, but criminal responsibility and direct impact on business owners, managers and staff.

Organisations appropriately seek professional advice, external to ASIAL, in business structures, choice of entities, and various models of compliance to manage and minimise risk, taxation and ownership. The past year has highlighted that the specifics of security licensing are not always well understood, or a priority of some accounting and legal practitioners providing advice to security providers in realigning business structures or new entrants to the security industry. Security licensing generally relates to the ABN and the entity and not multiple or Group entities. Several jurisdictions specifically reject Trust applications with security regulators placing priority on the identification of business ownership, legal responsibility, and management responsibility. ASIAL continues to work with members to ensure their compliance with security business licensing and ensure their business structures comply with security licensing requirements.

The ongoing review of the Victorian Private Security Act, although delayed by the impact of the COVID pandemic and the Inquiry into the Victorian hotel quarantine program, will see a significant increase in compliance requirements enforced by legislation. It is anticipated that the Victorian legislation will have similarities with the NSW legislation with regards to compliance. It is also anticipated that the use and abuse of individual ABN holders will be addressed.

ASIAL continues to advocate for a nationally consistent approach to security industry licensing and for the reduction of unnecessary regulatory red tape.

Throughout the year ASIAL has advocated for the introduction of Automatic Mutual Recognition to allow greater mobility of individual security licence holders. Disappointingly, some jurisdictions have flagged their intention to seek exemptions from Automatic Mutual Recognition.

ASIAL will continue to push for national consistency in security licensing requirements to address vulnerabilities that currently exist between jurisdictions, such as variations in probity, individual eligibility requirements, business suitability, fingerprinting, training, the use of criminal intelligence and the lack of a national security licence register.

Electronics - ASIAL has continued to engage with government and industry providing advice. We continue to support members through our involvement on influential committees and industry councils.

Standards – through its participation on Australian Standards and the International Electrotechnical Commission (IEC) committees, ASIAL plays a key role in standards development for the security industry.

The electronics committee EL-031 completed the draft proposal AS/NZS 2201.2 Monitoring Centres. The Draft standard for Monitoring Centres was released for Industry and public comment to Australian Standards in June 2021.

ASIAL’s General Manager, John Fleming is the chair of EL-031.

Working with the International Electrotechnical Commission (IEC) as a participating member IEC/TC79/WG13 focused on the development of standards for Building Intercom Systems IEC62820 part 1-1 and IEC 62820-1-2.

Training - Artibus Innovation has been commissioned by the Australian government to support the Industry Reference Committees (IRCs) for the Construction and Property Services industry. The Technical Advisory Group (TAG) includes representatives from employers, industry, RTOs and regulators. ASIAL is a committee member of the Property IRC and is tasked with reviewing and developing vocational education and training for the security Industry. Projects have focused on occupational analysis as a basis for rebuilding the qualification and unit structure to align with current and emerging work practices and to support a more consistent regulatory approach.

National Broadband Network – the Association continued to engage with the NBN Co to provide information for members on the deployment of the National Broadband Network (nbn).

The nbn working with approved service providers will replace the existing landline phone and internet services in Australia, this is scheduled to be finalised in 2021. It is vitally important that stakeholders in the migration of back to base security and medical alarms be informed about the nbn developments and communicate with their customers to offer solutions that

maintain the security systems integrity. No matter which type of technology is used to deliver the nbn, it is crucial that home and office wiring has been well planned.

ASIAL continues to provide information to members and advocate that security installation work must be carried out by a licenced security technician that holds an Australian Communications and Media Authority (ACMA) cablers registration card with the appropriate cabling competencies.

Monitoring Centre Certification – ASIAL continues to operate the highly respected monitoring centre certification program in accordance with Australian Standard AS2201.2 Monitoring Centres. ASIAL also provides certification for redundant Monitoring Centres and Class 5 certification.

The ASIAL scheme seeks to provide customers with the reassurance that the standards applied at a monitoring centre are independently audited on a regular basis.

ASIAL Cabling Registry Acting on behalf of the Australian Communications and Media Authority (ACMA) ASIAL continues to provide cablers with advice and support to comply with cabling registration requirements. The ACMA is responsible for setting out the regulatory requirements for registration and installation practices of cablers.

ASIAL’s cabling registry has been kept busy responding to cablers who wish to update their competencies and questioning how they should go about gaining competencies to continue legally working in the industry.

Registered Training Organisations have responded to the changes, offering courses to upgrade from restricted to Open registration and gain specialised cabling competencies, Fibre, Structured and Co-axial. These qualifications have been deemed essential for the development of a skilled labour force that can work on IP technologies and the National Broadband Network.

During the 2020/2021 financial year, cabling registrations grew by 173, up from 6,309 in 2019/2020, to reach 6,482 active registrations on 30 June 2021. The majority of registrants (5970) opted to gain ‘Open’ registration as opposed to the limited ‘Restricted’ cabling registration (502), with the remaining balance (10) being for ‘Lift’ work.

ASIAL engages with the ACMA and other cabling registrars to promote ongoing compliance and training in this sector. The registered cablers website is growing in the number of views and continues to provide vital information to industry and consumers about what to do in preparing for the nbn. After extensive communication with the ACMA and the nbn, both organisations are actively promoting the website as the place to go for unbiased information on the nbn and smart cabling.

The results from ACMAs review of the regulation of telecommunications customer cabling regulation concluded that ACMA will continue focusing on the regulation of cabling work as performed by cabling providers. This response was based on the response feedback that an unregulated market would lead to unacceptable public safety risks.

ASIAL 2021 Annual & Financial Report

19

DIRECTOR PROFILES

PRESIDENT

VICE PRESIDENT

John Gellel

Rachaell Saunders

General Manager, Kastle Systems

Chief Executive Officer, National Protective Services

John has more than 20 years’ experience in the security industry. Prior to joining Kastle Systems as General Manager in 2016, John spent 15 years with Honeywell Security and ADI Global Distribution. John has an MBA and an Advanced Diploma of Management. He has served on the ASIAL Board as a Director from 2014-2016 and as Vice-President from 2017-2021.

DIRECTOR

Tamara Bayly General Manager, Compliance, Certis Security Australia Tamara has over 18 years’ experience in the security industry, including protective services, aviation, electronics and monitoring. She is a member of the Senior Leadership team for Certis Security Australia. Prior to this, Tamara was a Police Officer in Queensland. She holds a Bachelor of Laws, Master of Security Management, Diploma of Management, and is a Certified Lead Auditor.

20

ABN 91 000 813 365

Rachaell has more than 30 years of experience in the security industry. She founded National Protective Services in 1988 and was appointed to the ASIAL Board in 2015.

Rachaell was appointed to the board of the Portable Long Service Leave Authority in 2019.

DIRECTOR

Kevin McDonald General Manager, Systems & Operational Support, MSS Security Pty Ltd Kevin has more than 35 years of experience in the electronics and manpower sectors. A Director since 2001, Kevin is committed to the integrity, standards and improvement of the security industry

DIRECTOR

DIRECTOR

Brian Foster

Michael Smith

Principal Perspective IQ Pty Ltd

Principal Smith Biz Consulting

Brian’s career in the security industry spans over 50 years, working as a senior manager and director. He has been admitted as a Fellow of the AICD, IML and ASIAL, with over 20 years cumulative service as a Director of our Association.

Michael has 20-plus years of experience in the security industry. He has worked for both Australian and international, private and public companies in general management and MD roles. He has a Bachelor of Commerce, is a CPA and a member of the AICD.

DIRECTOR

DIRECTOR

Mark Guiney

Suzette Po-Williams

Managing Director Royal Eagle Security Services

Customer Service Manager Central Monitoring Services

Mark has more than 30 years’ experience in the Electronic Security Industry in small/medium businesses with handson technical, sales and management roles. He completed an MBA in 2019 and is passionate about growing the professionalism, diversity and profile of the security industry.

Suzette has more than 20 years’ experience in the security industry which has included all aspects, from guarding, patrols, risk management, training and monitoring.

DIRECTOR

CHIEF EXECUTIVE OFFICER

Fred Khoury

Bryan de Caires

Managing Director Access Group Solutions

Chief Executive Officer and Secretary

Fred has more than 30 years’ experience working in the security industry, specifically manpower. Fred is passionate about working with and promoting security professionals in order to achieve industry growth and influence.

Bryan has more than 25 years of senior management experience across a range of industry sectors. He joined the Association in 2000.

ASIAL 2021 Annual & Financial Report

21

Financial Report For the year ended 30 June 2021

Directors’ Operating Report Your board of directors submit this operating report for the year ended 30 June 2021. 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. A brief profile of each Director is set out on pages 20 and 21 of this Annual and Financial Report.

• Continuous development of the Association’s communications channels to ensure that they best serve the needs of members and the broader community; • Offering practical and affordable member benefits and services.

Measurement of the Association’s performance

Directors Rod Anderson *

Tamara Bayly**

Brian Foster

John Gellel

Mark Guiney **

Fred Khoury

Kevin McDonald

Suzette Po-Williams **

Rachaell Saunders

Michael Smith

* Rod Anderson tendered his resignation on 21 July 2020 citing ill health. ** Following board elections in June 2021 Tamara Bayly and Mark Guiney were elected as directors, whilst Suzette Po-Williams was not re-elected.

The Association measures performance through member acquisition and retention rates; growth in member subscription and non-subscription revenue; member engagement; media exposure and profile; and financial performance against budget.

Corporate Structure 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.

Nature of operations and principal activities

• Driving industry research and data sharing

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.

• Promoting the industry’s role and capabilities

Number of recorded Members

• Raising ethical and professional standards

• Forging stakeholder collaboration

The number of Members recorded in the Register of Members of the Organisation as at 30 June 2021 for the purposes of section 254 (2) (f) of the Fair Work (Registered Organisations) Act 2009 was 2,749.

Strategy for achieving these objectives

Employees

Through both short and long-term measures, the Association has in place strategies to achieve its strategic priorities. These include:

The company employed 11 employees as at 30 June 2021 (2020:12 employees).

Key objectives of the Association The Association’s key strategic priorities are:

• Working towards nationally consistent security licensing standards

• Promoting the industry’s role and capabilities; • Driving industry research and data sharing; • Providing advocacy through engagement with regulators, government and through industry submissions; • Raising ethical and professional standards through the development of industry codes of practice and guidelines; • Providing industry representation as a Registered Organisation of Employers under the Fair Work (Registered Organisations) Act 2009; • Providing member services as an approved security industry association in the ACT, QLD and VIC; • Performing the role as a cabling registrar under the Australian Communications and Media Authority’s Cabling Provider Rules; • Promoting the use of ASIAL members through consumer awareness campaigns; • Providing professional development opportunities and industry certification schemes; • Ongoing development of the Association’s Customer Relationship Management system to ensure member needs are fully serviced;

22

• Forging stakeholder collaboration;

ABN 91 000 813 365

Rights of Members to resign In accordance with section 174 of the Fair Work (Registered Organisations) Act 2009, a member may resign from membership of the Organisation by written notice addressed and delivered to the Chief Executive Officer as per rule 11 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. Operating Results for the Period and Review of Operations The Association earned a net profit for the year of $110,421 (2020: $104,975). The Association’s reserves grew to $5,756,268.

The Association remains committed to its policy of reinvesting surpluses into the maintenance and improvement of services to members, whilst using the balance to maintain appropriate reserves for when they may be needed.

Significant Changes in the State of Affairs

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

No significant change in the state of affairs of the Company occurred during the financial year.

Attendance by each director at board and board committee meetings, held during the period each director held office this year, is shown below. The number of meetings is in brackets.

Significant Events after Balance Date

Directors Attendance at Board meetings

While the directors note the ongoing health and economic impacts relating to COVID-19, an estimate of the financial effect of this subsequent event cannot be made at the time of this financial report.

No other significant events have taken place after the balance date.

Likely Developments and Expected Results Directors have budgeted for a surplus of $25,209 for the coming year. 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 will support initiatives aimed at raising standards and compliance among members.

Loans, grants and political donations No loans, grants or political donations were made during the course of the year.

Rod Anderson (0/0)

Brian Foster (4/5)

John Gellel (5/5)

Fred Khoury (5/5)

Kevin McDonald (5/5)

Rachaell Saunders (5/5)

Michael Smith (5/5)

Suzette Po-Williams (5/5)

Attendance at National Reference Group meetings Jason Brown (0/1)

Scott Corcoran (0/1)

Chris Delaney (1/1)

John Fleming (1/1)

Brian Foster (0/1)

John Gellel (1/1)

Fred Khoury (0/1)

Peter Johnson (1/1)

Darryl Milling (1/1)

Kevin McDonald (1/1)

Neil McLean (1/1)

Suzette Po-Williams (1/1)

Rachaell Saunders (1/1)

Rob Seth (1/1)

Proceedings on behalf of the company

Michael Smith (1/1)

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

A copy of the auditors’ independence declaration, as required under section 307C of the Corporations Act 2001, is set out on page 25.

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 $8,001.65, 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.

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

John Gellel

Rachaell Saunders

Director

Director

Crows Nest, 29 August 2021

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.

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

ASIAL 2021 Annual & Financial Report

23

Financial Report For the year ended 30 June 2021

Directors’ Declaration On 29 August 2021 the Directors of Australian Security Industry Association Limited passed the following resolution in relation to the General Purpose Financial Report (GPFR) for the year ended 30 June 2021: The Directors declare that in their opinion: a) the financial statements and notes comply with the Australian Accounting Standards and the Corporations Regulations 2001; b) the financial statements and notes comply with any other requirements imposed by the Reporting Guidelines or Part 3 of Chapter 8 of the Fair Work (Registered Organisations) Act 2009 (the RO Act); c) the financial statements and notes give a true and fair view of the financial performance, financial position and cash flows of the reporting unit for the financial year to which they relate; d) there are reasonable grounds to believe that the reporting unit will be able to pay its debts as and when they become due and payable; and e) during the financial year to which the GPFR relates and since the end of that year: i. meetings of the Directors were held in accordance with the rules of the reporting unit concerned; and ii. the financial affairs of the reporting unit have been managed in accordance with the rules of the reporting unit concerned; and iii. the financial records of the reporting unit have been kept and maintained inaccordance with the RO Act; and iv. where information has been sought in any request by a member of the reporting unit or Commissioner duly made under section 272 of the RO Act has been provided to the member or Commissioner; and v. where any order for inspection of financial records has been made by the Fair Work Commission under section 273 of the RO Act, there has been compliance.

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

On behalf of the Board

John Gellel

Rachaell Saunders

Director

Director

Crows Nest, 29 August 2021

24

ABN 91 000 813 365

SDJ Audit Pty Ltd t/a SDJA ABN: 11 624 245 334 P: PO Box 324 SDJ Audit Pty Ltd t/a SDJA West Pennant Hills NSW 2125245 334 ABN: 11 624 M: 0428 074 081 P: PO Box 324 E: simon@sdja.com.au West Pennant Hills NSW 2125 W: www.sdja.com.au M: 0428 074 081 Australian Security Industry Association Limited E: simon@sdja.com.au Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 to Directors W:the www.sdja.com.au

of Australian Security Industry Association Limited For the Financial Year Ended 30 June 2021

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2021, there have been: Australian Security Industry Association Limited (i) no contraventions of the auditor independence requirements as set out in the Corporations Auditor’s Independence Declaration underand Section 307C of the Corporations Act 2001 to the Directors Act 2001 in relation to the audit; of Australian Security Industry Association Limited no contravention any applicable For (ii) the Financial Year Endedof30 June 2021 code of professional conduct in relation to the audit.

IYours declare that, to the best of my knowledge and belief, during the year ended 30 June 2021, there have been: sincerely, (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and SDJA (ii) no contravention of any applicable code of professional conduct in relation to the audit.

Yours sincerely,

Simon Joyce Director Sydney, New South Wales August 2021 SDJA

Simon Joyce Director Sydney, New South Wales 29 August 2021

Liability limited by a scheme approved under Professional Standards Legislation

3 Liability limited by a scheme approved under Professional Standards Legislation

ASIAL 2021 Annual & Financial Report

25

Financial Report For the year ended 30 June 2021

Report Required Under Subsection 255(2A) The Directors present the expenditure report as required under subsection 255(2A) on the Reporting Unit for the year ended 30 June 2021.

2021

2020

$

$

1,168,329

1,271,186

Advertising

171,203

41,838

Operating costs

898,381

1,029,122

-

-

11,740

96,028

Categories of expenditures Remuneration and other employment-related costs and expenses - employees

Donations to political parties Legal costs

On behalf of the Board

John Gellel

Rachaell Saunders

Director

Director

Crows Nest, 29 August 2021

26

ABN 91 000 813 365

SDJ Audit Pty Ltd t/a SDJA ABN: 11 624 245 334 P: PO Box 324 SDJ Audit Pty Ltd t/a SDJA West Pennant Hills NSW 2125245 334 ABN: 11 624 M: 0428 074 081 P: PO Box 324 E: simon@sdja.com.au West Pennant Hills NSW 2125 W: www.sdja.com.au M: 0428 074 081 Australian Security Industry Association Limited E: simon@sdja.com.au Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 to Directors W:the www.sdja.com.au

of Australian Security Industry Association Limited For the Financial Year Ended 30 June 2021

Independent Audit Report to the Members of 2021, Australian I declare that, to the best of my knowledge and belief, during the year ended 30 June there have been: Security Industry Association Limited no contraventions of the auditor independence requirements as set out in the Corporations For(i)the Act Financial Year Ended 30 June 2021 2001 in relation to the audit; and Report on the Audit of the Financial Report (ii)

no contravention of any applicable code of professional conduct in relation to the audit.

Opinion Yours sincerely, We have audited the financial report of Australian Security Industry Association Limited (the Reporting Unit), which comprises the statement of financial position SDJA as at 30 June 2021, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year ended 30 June 2021, notes to the financial statements, including a summary of significant Simon Joyce accounting Director policies; the directors’ declaration and the subsection 255(2A) Sydney, New Southreport.

Wales August 2021 In our opinion, the accompanying financial report presents fairly, in all material aspects, the financial position of Australian Security Industry Association Limited as at 30 June 2021, and its financial performance and its cash flows for the year ended on that date in accordance with: a) the Australian Accounting Standards; and b) the Corporations Act 2001, including: (i) giving a true and fair view of the entity’s financial position as at 30 June 2021 and of its financial performance for the year ended; and (ii) complying with the Corporations Regulations 2001. c) any other requirements imposed by the Reporting Guidelines or Part 3 of Chapter 8 of the Fair Work (Registered Organisations) Act 2009 (the RO Act).

to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

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

Information Other than the Financial Report and Auditor’s Report Thereon The directors are responsible for the other information.

The other information obtained at the date of this auditor’s report is in the Directors’ Operating Report accompanying the financial report.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Report

The Directors of the Reporting Unit are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards, the Corporations Act 2001, and the RO Act, and for such internal control as the Directors determine Basis for Opinion is necessary to enable the preparation of the financial We conducted our audit in accordance with report that gives a true and fair view and is free from Australian Auditing Standards. Our responsibilities material misstatement, whether due to fraud or error. under those standards are further described in the In preparing the financial report, the Directors are Auditor’s Responsibilities for thebyAudit of the Financial Liability limited a scheme approved under Professional Standards Legislation responsible for assessing the Reporting Unit’s ability to Report section of our report. We are independent of continue as a going concern, disclosing, as applicable, the Reporting Unit in accordance with the ethical matters related to going concern and using the going 3 requirements of the Accounting Professional and concern basis of accounting unless the Directors either Ethical Standards Board’s APES 110 Code of Ethics for intend to liquidate the Reporting Unit or to cease Professional Accountants (the Code) that are relevant operations, or have no realistic alternative but to do so.

We declare that management’s use of the going concern basis in the preparation of the financial statements of the Reporting Unit is appropriate.

ASIAL 2021 Annual & Financial Report

27

Financial Report For the year ended 30 June 2021

SDJ Audit Pty Ltd t/a SDJA ABN: 11 624 245 334 P: PO Box 324 SDJ Audit Pty Ltd t/a SDJA West Pennant Hills NSW 2125245 334 ABN: 11 624 M: 0428 074 081 P: PO Box 324 E: simon@sdja.com.au West Pennant Hills NSW 2125 W: www.sdja.com.au M: 0428 074 081 Australian Security Industry Association Limited E: simon@sdja.com.au Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 to Directors W:the www.sdja.com.au

of Australian Security Industry Association Limited For the Financial Year Ended 30 June 2021

I declareResponsibilities that, to the best of and belief, during the year ended 30audit June evidence 2021, there have whether Auditor’s formy theknowledge Audit of the based on the obtained, been: Report Financial a material uncertainty exists related to events Our objective is to obtain reasonable assurance or conditions that may cast significant doubt on nothe contraventions of the auditor requirements as set out in the Corporations about(i) whether financial report as a wholeindependence is free the Reporting Unit’s ability to continue as a going 2001 in relation to thedue audit; and or from material Act misstatement, whether to fraud concern. If we conclude that a material uncertainty error, and to issue an auditor’s report that includes exists, we are required to draw attention in our (ii) no contravention of anyisapplicable code of professionalauditor’s conduct report in relation to the audit. our opinion.

Reasonable assurance a high level to the related disclosures in of assurance, but is not a guarantee that an audit the financial report or, if such disclosures are Yours sincerely, conducted in accordance with Australian Auditing inadequate, to modify our opinion. Our conclusions Standards will always detect a material misstatement are based on the audit evidence obtained up to the when it exists. Misstatements can arise from fraud or date of our auditor’s report. However, future events error and are considered material if, individually or in or conditions may cause the Reporting Unit to the aggregate, they could reasonably be expected to SDJA cease to continue as a going concern. influence the economic decisions of users taken on the • Obtain sufficient appropriate audit evidence basis of the financial report. regarding the financial information of the entities or business activities within the Reporting Unit AsSimon part ofJoyce an audit, in accordance with the Australian to express an opinion on the financial report.

Auditing DirectorStandards, we exercise professional We are responsible for the direction, supervision judgement andSouth maintain professional scepticism Sydney, New Wales and performance of the Reporting Unit audit. We throughout audit. We also: Augustthe 2021 remain solely responsible for our audit opinion.

• Identify and assess the risks of material We communicate with the Directors regarding, among misstatement of the financial report, whether other matters, the planned scope and timing of the due to fraud or error, design and perform audit audit and significant audit findings, including any procedures responsive to those risks, and obtain significant deficiencies in internal control that we audit evidence that is sufficient and appropriate identify during our audit. to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from We declare that we are an audit firm where at least fraud is higher than for one resulting from error, one member is a registered auditor and an auditor as fraud may involve collusion, forgery, intentional registered under the RO Act. omissions, misrepresentations, or the override of Registration number (as registered by the RO internal control.

Commissioner under the RO Act): AA2017/28.

• Obtain an understanding of internal control relevant to the audit 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 Reporting Unit’s internal control.

SDJA • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.

•

•

28

Simon Joyce Evaluate the overall presentation, structure and content of theLiability financial report, including the Director limited by a scheme approved under Professional Standards Legislation disclosures, and whether the financial report represents the underlying transactions and events 29 August 2021 in a manner that achieves fair presentation.

Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and,

ABN 91 000 813 365

Sydney, New South Wales

3

Statement of Profit or Loss and Other Comprehensive Income FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021 Notes

2021

2020

$

$

3

1,639,612

1,584,496

3A

-

-

Revenue Membership subscriptions Capitation fees and other revenue from another reporting unit Levies

3B

-

-

Investment income

3, 3C

22,686

54,593

Rental revenue

3, 3D

63,512

63,342

Other operating revenue

3, 3E

471,660

752,621

2,197,470

2,455,052

Total revenue Other income Grants or donations

3, 3F

161,560

65,550

Revenue from recovery of wages activity

3, 3G

-

-

Other non-operating income

3

Total other income Total income

1,044

22,547

162,604

88,097

2,360,074

2,543,149

(187,770)

(309,132)

Expenses Expenses directly related to operating activities Employee expenses

4A

(1,168,329)

(1,271,186)

Capitation fees and other expense to another reporting unit

4B

-

-

Affiliation fees

4C

-

-

Administration expenses

4D

(826,860)

(676,654)

Grants or donations

4E

-

(56)

Depreciation

4F

(18,750)

(18,750)

-

-

Finance costs Legal costs

4G

(11,740)

(96,028)

Audit fees

14

(36,204)

(36,292)

-

-

-

-

-

(30,076)

-

-

(2,249,653)

(2,438,174)

110,421

104,975

- Gain on revaluation of land and buildings

862,366

-

Total comprehensive income for the year

972,787

104,975

Share of net loss from associate Write-down and impairment of assets

4H

Net losses from sale of assets Other expenses Total expenses Surplus for the year

4I

Other comprehensive income Items that will not be subsequently reclassified to profit or loss

ASIAL 2021 Annual & Financial Report

29

Financial Report For the year ended 30 June 2021

Statement of Financial Position FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021

Notes

2021

2020

$

$

Assets Current Cash and cash equivalents

5A

3,220,827

2,983,866

Trade and other receivables

5B

365,509

436,075

Other current assets

5C

141,639

95,115

3,727,975

3,515,056

Current assets Non-current Land and buildings

6A

4,350,000

3,506,384

Plant and equipment

6B

-

-

Non-current assets

4,350,000

3,506,384

Total assets

8,077,975

7,021,440

Liabilities Current Trade payables

7A

136,550

119,102

Other payables

7B

1,821,034

1,777,379

Employee provisions

8A

225,861

225,391

2,183,445

2,121,872

Current liabilities Non-current Other payables

7B

96,447

88,535

Employee provisions

8A

41,815

27,552

138,262

116,087

2,321,707

2,237,959

5,756,268

4,783,481

Non-current liabilities Total liabilities Net assets Equity Property revaluation reserve

30

2,197,408

1,335,042

Retained earnings

3,558,860

3,448,439

Total equity

5,756,268

4,783,481

ABN 91 000 813 365

9A

Statement of Changes in Equity FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021

Property Revaluation Reserve

Retained Earnings

Total Equity

$

$

$

1,335,042

3,343,464

4,678,506

Profit for the year

-

104,975

104,975

Other comprehensive income

-

-

-

Total comprehensive income

-

104,975

104,975

Balance at 30 June 2020

1,335,042

3,448,439

4,783,481

Balance at 1 July 2020

1,335,042

3,448,439

4,783,481

-

110,421

110,421

- Gain on revaluation of land and buildings

862,366

-

862,366

Total comprehensive income

862,366

110,421

972,787

2,197,408

3,558,860

5,756,268

Notes

Balance at 1 July 2019

Profit for the year Other comprehensive income:

Balance at 30 June 2021

ASIAL 2021 Annual & Financial Report

31

Financial Report For the year ended 30 June 2021

Statement of Cash Flows FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021

Notes

2021

2020

$

$

2,467,076

2,433,686

177,110

50,000

OPERATING ACTIVITIES Cash received Receipts from members and others Grants received Receipt from other reporting units/controlled entities

10B

-

Cash used Payments to suppliers and employees

(2,493,423)

(2,328,617)

Payment to other reporting units/controlled entities

10B

-

-

Net cash provided by operating activities

10A

150,763

155,069

Interest received

22,686

54,593

Rental income received

63,512

63,342

-

(15,776)

86,198

102,159

-

-

Other

-

-

Net cash provided by financing activities

-

-

236,961

257,228

2,983,866

2,726,638

3,220,827

2,983,866

INVESTING ACTIVITIES Cash received

Cash used Purchase of plant and equipment

6B

Net cash provided by investing activities FINANCING ACTIVITIES Cash received Other Cash used

Net change in cash and cash equivalents Cash and cash equivalents at beginning of financial year Cash and cash equivalents at end of the financial year

32

ABN 91 000 813 365

5A

Notes to the Financial Statements Note 1

Summary of significant accounting policies

•

AASB 2019-1 Amendments to Australian Accounting Standards – References to the Conceptual Framework. Application of this amendment is discussed further below.

•

AASB 2020-4 Amendments to Australian Accounting Standards – Covid-19-Related Rent Concessions. Application of this amendment is discussed further below.

1.1 Basis of preparation of the financial statements The financial statements are general purpose financial statements and have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period, the Corporations Act 2001 and the Fair Work (Registered Organisation) Act 2009. For the purpose of preparing the general purpose financial statements, the Australian Security Industry Association Limited is a not-for-profit entity.

The financial statements, other than the Statement of Cash Flows, have been prepared on an accrual basis and in accordance with the historical cost, except for certain assets and liabilities measured at fair value, as explained in the accounting policies below. Historical cost is generally based on the fair values of the consideration given in exchange for assets. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars.

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

1.3 Significant accounting judgements and estimates The following accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period: • •

Land and buildings – refer to note 1.13 Employee provisions – refer to note 1.7

1.4 New Australian Accounting Standards Adoption of New Australian Accounting Standard requirements.

Any new and revised standards that became effective for the first time in the current financial year have been adopted. The adoption of these amendments has not had a material impact on the entity. No accounting standard has been adopted earlier than the application date stated in the standard.

The accounting policies adopted are consistent with those of the previous financial year except for the following standards and amendments, which have been adopted for the first time this financial year: •

AASB 2018-7 Amendments to Australian Accounting Standards – Definition of Material.

Application of this amendment is discussed further below.

•

AASB 2018-6 Amendments to Australian Accounting Standards – Definition of a Business. Application of this amendment is discussed further below.

Impact on adoption of AASB 2018-7 Amendments to Australian Accounting Standards – Definition of Material The amendments provide a new definition of material that states, “information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.” The amendments clarify that materiality will depend on the nature or magnitude of information, either individually or in combination with other information, in the context of the financial statements. A misstatement of information is material if it could reasonably be expected to influence decisions made by the primary users.

These amendments had no impact on the financial statements of, nor is there expected to be any future impact to the reporting unit.

Impact on adoption of AASB 2018-6 Amendments to Australian Accounting Standards - Definition of a Business The amendment to AASB 3 Business Combinations clarifies that to be considered a business, an integrated set of activities and assets must include, at a minimum, an input and a substantive process that, together, significantly contribute to the ability to create output.

Furthermore, it clarifies that a business can exist without including all of the inputs and processes needed to create outputs.

These amendments had no impact on the financial statements of the reporting unit, but may impact future periods should the reporting unit enter into any business combinations.

Impact on adoption of AASB 2019-1 Amendments to Australian Accounting Standards – References to the Conceptual Framework The Conceptual Framework is not a standard, and none of the concepts contained therein override the concepts or requirements in any standard. The purpose of the Conceptual Framework is to assist the accounting standard setter in developing standards, to help preparers develop consistent accounting policies where there is no applicable standard in place and to assist all parties to understand and interpret the standards.

This will affect those entities which developed their accounting policies based on the Conceptual Framework. The revised Conceptual Framework includes some new concepts, updated definitions and

ASIAL 2021 Annual & Financial Report

33

Financial Report For the year ended 30 June 2021

Notes to the Financial Statements recognition criteria for assets and liabilities and clarifies some important concepts.

1.

The amendments had no impact on the financial statements of the reporting unit.

3. Determine the transaction price

AASB 2020-4 Amendments to AASs – Covid-19Related Rent Concessions These amendments provide relief to lessees from applying AASB 16 guidance on lease modification accounting for rent concessions arising as a direct consequence of the Covid-19 pandemic. As a practical expedient, a lessee may elect not to assess whether a Covid-19 related rent concession from a lessor is a lease modification. A lessee that makes this election accounts for any change in lease payments resulting from the Covid-19 related rent concession the same way it would account for the change under AASB 16 Leases, if the change were not a lease modification.

The amendments had no impact on the financial statements of the reporting unit.

Future Australian Accounting Standards Requirements New standards, amendments to standards or interpretations that were issued prior to the sign-off date and are applicable to future reporting periods that are expected to have a future financial impact on the reporting unit include: AASB 2020-1 – Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-current This Standard amends AASB 101 Presentation of Financial Statements to clarify requirements for the presentation of liabilities in the statement of financial position as current or non-current. For example, the amendments clarify that a liability is classified as non-current if an entity has the right at the end of the reporting period to defer settlement of the liability for at least 12 months after the reporting period. This Standard applies to annual reporting periods beginning on or after 1 January 2023. Earlier application is permitted.

During the financial year ended 30 June 2021, the reporting unit performed a preliminary assessment of AASB 2020-1. The Committee of Management is currently assessing the impact such standards will have on the reporting unit and will not be early adopting AASB 2020-1 for the financial year ended 30 June 2021.

1.5 Revenue Revenue from contracts with customers Revenue is recognised on a basis that reflects the transfer of promised goods or services to customers at an amount that reflects the consideration the entity expects to receive in exchange for those goods or services.

Revenue is recognised by applying a five-step model as follows:

34

ABN 91 000 813 365

Identify the contract with the customer

2. Identify the performance obligations 4. Allocate the transaction price to the performance obligations 5. Recognise revenue as and when control of the performance obligations is transferred Other revenue For any revenue streams that are not defined as contracts with customers, then the revenue is recognised when the entity gains control, economic benefits are probable and the amount of the revenue can be measured reliably.

1.6 Gains and losses Sale of assets Gains and losses from disposal of assets are recognised when control of the asset has passed to the buyer.

1.7 Employee benefits A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave and termination benefits when it is probable that settlement will be required and they are capable of being measured reliably.

Liabilities for short-term employee benefits (as defined in AASB 119 Employee Benefits) and termination benefits which are expected to be settled within twelve months of the end of reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Other long-term employee benefits which are expected to be settled beyond twelve months are measured as the present value of the estimated future cash outflows to be made by the reporting unit in respect of services provided by employees up to reporting date.

Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.

Provision is made for separation and redundancy benefit payments. The reporting unit recognises a provision for termination as part of a broader restructuring when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations. A provision for voluntary termination is recognised when the employee has accepted the offer of termination.

1.8 Cash Cash is recognised at its nominal amount. Cash and cash equivalents includes cash on hand, deposits held at call with bank, other short-term highly liquid investments with original maturity of 3 months or less that are readily convertible to known amounts of cash

and subject to insignificant risk of changes in value and bank overdrafts. Bank overdrafts are shown within shortterm borrowings in current liabilities on the statement of financial position.

Financial assets at amortised cost The reporting unit measures financial assets at amortised cost if both of the following conditions are met: •

The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows and

•

The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding

1.9 Financial instruments Financial assets and financial liabilities are recognised when the reporting unit becomes a party to the contractual provisions of the instrument.

1.10 Financial assets Initial recognition and measurement Financial assets are classified, at initial recognition, and subsequently measured at amortised cost, fair value through other comprehensive income (OCI), or fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the reporting unit’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component, the reporting unit initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest’ (SPPI) on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.

The reporting unit’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the reporting unit commits to purchase or sell the asset.

Subsequent measurement For purposes of subsequent measurement, financial assets are classified in five categories: •

(Other) financial assets at amortised cost

•

(Other) financial assets at fair value through other comprehensive income

•

Investments in equity instruments designated at fair value through other comprehensive income

•

(Other) financial assets at fair value through profit or loss

•

(Other) financial assets designated at fair value through profit or loss

Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.

The reporting unit’s financial assets at amortised cost includes short-term deposits, and trade and other receivables.

Financial assets at fair value through other comprehensive income The reporting unit measures debt instruments at fair value through OCI if both of the following conditions are met: •

The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling and

•

The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding

For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in profit or loss and computed in the same manner as for financial assets measured at amortised cost.

The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value change recognised in OCI is recycled to profit or loss.

The reporting unit’s debt instruments at fair value through OCI includes investments in quoted debt instruments included under other non-current financial assets.

Investments in equity instruments designated at fair value through other comprehensive income Upon initial recognition, the reporting unit can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under AASB132 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis.

ASIAL 2021 Annual & Financial Report

35

Financial Report For the year ended 30 June 2021

Notes to the Financial Statements Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in profit or loss when the right of payment has been established, except when the reporting unit benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.

The reporting unit elected to classify irrevocably its listed and non-listed equity investments under this category.

Financial assets at fair value through profit or loss (including designated) Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term.

Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortised cost or at fair value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch.

When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the reporting unit continues to recognise the transferred asset to the extent of its continuing involvement together with associated liability.

Offsetting Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

Impairment (i)

For trade receivables that do not have a significant financing component, the reporting unit applies a simplified approach in calculating expected credit losses (ECLs) which requires lifetime expected credit losses to be recognised from initial recognition of the receivables.

Therefore, the reporting unit does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The reporting unit has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. (ii) Debt instruments other than trade receivables For all debt instruments other than trade receivables and debt instruments not held at fair value through profit or loss, the reporting unit recognises an allowance for expected credit losses using the general approach. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the reporting unit expects to receive, discounted at an approximation of the original effective interest rate.

Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognised in profit or loss.

Derecognition A financial asset is derecognised when: •

The rights to receive cash flows from the asset have expired or

•

The reporting unit has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either: a)

the reporting unit has transferred substantially all the risks and rewards of the asset, or

b)

the reporting unit has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the reporting unit has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership.

36

ABN 91 000 813 365

Trade receivables

ECLs are recognised in two stages: •

Where there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses from possible default events within the next 12-months (a 12-month ECL).

•

Where there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the debt, irrespective of the timing of the default (a lifetime ECL).

The reporting unit considers a financial asset in default when contractual payments are 90 days past due.

However, in certain cases, the reporting unit may also consider a financial asset to be in default when internal or external information indicates that the reporting

unit is unlikely to receive the outstanding contractual amounts in full. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

1.11 Financial Liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition, at amortised cost unless or at fair value through profit or loss.

All financial liabilities are recognised initially at fair value and, in the case of financial liabilities at amortised cost, net of directly attributable transaction costs.

The reporting unit financial liabilities include trade and other payables.

Subsequent measurement Financial liabilities at fair value through profit or loss (including designated) Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

Gains or losses on liabilities held for trading are recognised in profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in AASB 9 are satisfied.

Financial liabilities at amortised cost After initial recognition, trade and other payables are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in profit or loss.

Derecognition A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability.

The difference in the respective carrying amounts is recognised in profit or loss.

1.12 Contingent Liabilities and Contingent Assets Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the relevant notes. They may arise from uncertainty as to the existence of a liability or asset or represent an existing liability or asset in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain, and contingent liabilities are disclosed when settlement is greater than remote.

1.13 Land, Buildings, Plant and Equipment Asset Recognition Threshold Purchases of land, buildings, plant and equipment are recognised initially at cost in the Statement of Financial Position. The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located.

Revaluations—Land and Buildings Following initial recognition at cost, land and buildings are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses.

Revaluations are performed with sufficient frequency such that the carrying amount of assets do not differ materially from those that would be determined using fair values as at the reporting date.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the profit or loss except to the extent that they reverse a previous revaluation increment for that class. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset is restated to the revalued amount.

The freehold land and buildings were independently valued at 30 June 2021 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.

Depreciation Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful life using, in all cases, the straight line method of depreciation. Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

ASIAL 2021 Annual & Financial Report

37

Financial Report For the year ended 30 June 2021

Notes to the Financial Statements 1.16 Fair value measurement

The depreciation rates applying to each class of depreciable asset are:

Buildings – straight line basis Plant and equipment – diminishing value basis

2021

2020

2.5%

2.5%

10-66%

10-66%

Derecognition An item of land, buildings, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal.

Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the profit and loss.

1.14 Impairment of non-financial assets All assets are assessed for impairment at the end of each reporting period to the extent that there is an impairment trigger. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use.

Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the reporting unit were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

1.15 Taxation The entity is exempt from income tax under section 50.1 of the Income Tax Assessment Act 1997 however still has obligation for Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses and assets are recognised net of GST except: •

where the amount of GST incurred is not recoverable from the Australian Taxation Office; and

•

for receivables and payables.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.

Cash flows are included in the statement of cash flows on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the Australian Taxation Office is classified within operating cash flows.

38

ABN 91 000 813 365

The reporting unit measures financial instruments, such as, financial asset as at fair value through the profit and loss, available for sale financial assets, and non-financial assets such as land and buildings and investment properties, at fair value at each balance sheet date.

Also, fair values of financial instruments measured at amortised cost are disclosed in Note 13A. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: •

In the principal market for the asset or liability, or

•

In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the reporting unit. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The reporting unit uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: •

Level 1—Quoted (unadjusted) market prices in active markets for identical assets or liabilities

•

Level 2—Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

•

Level 3—Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the reporting unit determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

External valuers are involved for valuation of significant assets, such as land and buildings and investment properties. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. For the purpose of fair value disclosures, the reporting unit has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy.

1.17 Acquisition of assets and or liabilities that do not constitute a business combination The entity did not acquire an asset or liability due to an amalgamation under Part 2 of Chapter 3 of the RO Act, a restructure of the branches of the organisation, a determination or revocation by the General Manager of the Fair Work Commission under subsections 245(1) or 249(1) of the RO Act. Note 2 Going concern The entity is not reliant on the agreed financial support of another reporting unit to continue on a going concern basis.

The entity has not agreed to provide financial support to another reporting unit to ensure they can continue on a going concern basis.

ASIAL 2021 Annual & Financial Report

39

Financial Report For the year ended 30 June 2021

Notes to the Financial Statements Note 3 Income Disaggregation of revenue from contracts with customers A disaggregation of the reporting unit’s revenue by type of arrangement is provided on the face of the Statement of Profit or Loss and Other Comprehensive Income. The table below also sets out a disaggregation of revenue by type of customer: 2021

2020

$

$

1,639,612

1,584,496

-

-

Type of customer Members Other reporting units Government

161,560

65,550

Other parties

558,902

893,103

2,360,074

2,543,149

Total revenue from contracts with customers 3A. Capitation fees and other revenue from another reporting unit Capitation fees

-

-

Other revenue from another reporting unit

-

-

-

-

-

-

-

-

3B. Levies Compulsory or voluntary levies or appeals

3C. Investment income Interest on deposits

22,686

54,593

22,686

54,593

3D. Rental revenue Properties

63,512

63,342

63,512

63,342

170,920

168,130

3E. Other operating revenue Cabling providers Events, exhibitions and sponsorships

12,608

286,790

Marketing and partnerships

96,887

103,043

Other operating revenue

191,245

194,658

471,660

752,621

161,560

65,550

-

-

161,560

65,550

3F. Grants or donations Grants - Cash Flow Boost, JobKeeper and Payroll Tax Relief Donations

3G. Revenue from recovery of wages activity

40

Amounts recovered from employers in respect of wages

-

-

Interest received on recovered money

-

-

-

-

ABN 91 000 813 365

Note 4 Expenses

2021

2020

$

$

220,475

192,275

20,945

20,888

Holders of office - leave and other entitlements

1,731

27,600

Holders of office - separation and redundancies

-

-

4A. Employee expenses Holders of office Holders of office - wages and salaries Holders of office - superannuation

Holders of office - other expenses Subtotal employee expenses holders of office

-

-

243,151

240,763

Employees other than office holders Employees - wages and salaries

791,243

853,000

Employees - superannuation

76,039

79,623

Employees - leave and other entitlements

13,002

42,341

Employees - separation and redundancies

-

-

Employees - other expenses

44,894

55,459

925,178

1,030,423

1,168,329

1,271,186

Capitation fees

-

-

Other expenses from another reporting unit

-

-

-

-

-

-

-

-

Total paid to employers for payroll deductions of membership subscriptions

-

-

Compulsory levies

-

-

Subtotal employee expenses employees other than office holders Total employee expenses 4B. Capitation fees and other expense to another reporting unit

4C. Affiliation fees Affiliation fees/subscriptions

4D. Administration expenses

Fees/allowances - meeting and conferences

-

-

1,082

7,395

Contractors/Consultants

120,600

120,000

Marketing

171,203

41,838

Conference and meeting expenses

Property expenses

1,828

-

Office expenses

100,846

94,523

Information communications technology

138,902

169,304

Other

292,399

243,594

826,860

676,654

ASIAL 2021 Annual & Financial Report

41

Financial Report For the year ended 30 June 2021

Notes to the Financial Statements Note 4 Expenses (continued)

2021

2020

$

$

Total expensed that were $1,000 or less

-

-

Total expensed that exceeded $1,000

-

-

Total expensed that were $1,000 or less

-

56

Total expensed that exceeded $1,000

-

-

-

56

18,750

18,750

-

-

18,750

18,750

-

-

11,740

96,028

11,740

96,028

Land and buildings

-

-

Plant and equipment

-

-

Intangible assets

-

-

Other

-

-

Total write-down and impairment of assets

-

-

-

-

-

-

4E. Grants or donations Grants:

Donations:

4F. Depreciation Depreciation Land buildings Plant and equipment Total depreciation 4G. Legal costs Litigation Other legal costs

4H: Write-down and impairment of assets Asset write-downs and impairments of:

4I. Other expenses Penalties - via RO Act or the Fair Work Act 2009

42

ABN 91 000 813 365

Note 5 Current Assets

2021

2020

$

$

492,585

967,055

2,728,242

2,016,811

3,220,827

2,983,866

5A. Cash and cash equivalents Cash at bank Short-term deposits

$7,259 (2020: $7,247) of the short-term bank deposits are bonds paid to the company by tenants.

5B. Trade and other receivables Current Receivables from other reporting units

-

-

Less allowance for expected credit losses

-

-

Receivable from other reporting units

-

-

365,509

436,075

-

-

Receivable from non-reporting units

365,509

436,075

Total trade and other receivables (net)

365,509

436,075

Receivables from non-reporting units Less allowance for expected credit losses

The movement in the allowance for expected credit losses of trade and other receivables is as follows: At 1 July

-

10,000

Provision for expected credit losses

-

(10,000)

Write-off

-

-

At 30 June

-

-

141,639

95,115

141,639

95,115

5. Other current assets Prepayments

ASIAL 2021 Annual & Financial Report

43

Financial Report For the year ended 30 June 2021

Notes to the Financial Statements Note 6 Non-current Assets

2021

2020

$

$

4,350,000

3,550,000

-

(43,616)

4,350,000

3,506,384

3,506,384

3,525,134

6A. Land and buildings Freehold land and building at revaluation Freehold land and building accumulated depreciation

Reconciliation of opening and closing balances of land and buildings

Balance as at start of year Additions

-

-

862,366

-

-

-

(18,750)

(18,750)

4,350,000

3,506,384

74,785

74,785

(74,785)

(74,785)

-

-

Balance as at start of year

-

14,300

Additions

-

15,776

Disposals

-

(30,076)

Revaluations Disposals Depreciation Balance as at end of year

The revalued land and buildings is the principal place of business at 41 Hume Street, Crows Nest, NSW, 2065. Management determined that these constitute one class of asset under AASB 13, based on the nature, characteristics and risks of the property.

Fair value of the properties was determined by using market comparable method.

This means that valuations performed by the valuer are based on active market prices, significantly adjusted for the difference in the nature, location or condition of the specific property. As at the date of revaluation, 30 June 2021, the property’s fair value is based on valuation performed by AON Valuation Services, an accredited independent valuer.

6B. Plant and equipment Office equipment, furniture and fittings at cost Office equipment, furniture and fittings accumulated depreciation

Reconciliation of opening and closing balances of office equipment furniture and fittings

44

Depreciation

-

-

Balance as at end of year

-

-

ABN 91 000 813 365

Note 7 Current Liabilities

2021

2020

$

$

136,550

119,102

-

-

136,550

119,102

Payable to employers for making payroll deductions of membership subscriptions

-

-

Legal costs

-

-

1,847,324

1,758,812

45,523

82,468

17,577

17,577

7,057

7,057

1,917,481

1,865,914

1,821,034

1,777,379

96,447

88,535

1,917,481

1,865,914

7A. Trade payables Trade creditors and accruals Payables to other reporting units

Settlement is usually made within 30 days.

7B. Other payables

Prepayments received/unearned revenue Net GST payable Centre for compliance fund Other current payables Total other payables

Total other payables are expected to be settled in: No more than 12 months More than 12 months Total other payables

ASIAL 2021 Annual & Financial Report

45

Financial Report For the year ended 30 June 2021

Notes to the Financial Statements Note 8 Provisions

2021

2020

$

$

Annual leave

23,861

25,964

Long service leave

8A. Employee provisions Office Holders: 91,350

87,516

Separations and redundancies

-

-

Other

-

-

115,211

113,480

Annual leave

55,461

57,651

Long service leave

97,004

81,812

-

-

Subtotal employee provisions - office holders Employees other than office holders:

Separations and redundancies Other

-

-

Subtotal employee provisions - employees other than office holders

152,465

139,463

Total employee provisions - office holders and employees

267,676

252,943

Current employee provisions

225,861

225,391

41,815

27,552

267,676

252,943

Non current employee provisions Total employee provisions - office holders and employees

46

ABN 91 000 813 365

Note 9 Equity

2021

2020

$

$

1,335,042

1,335,042

Transferred to reserve

-

-

Transferred out of reserve

-

-

862,366

-

2,197,408

1,335,042

-

-

Balance as at start of year

-

-

Transferred to reserve

-

-

Transferred out of reserve

-

-

Balance as at end of year

-

-

9A. Property revaluation reserve Balance as at start of year

Other comprehensive income Balance as at end of year

9B. Equity - other specific disclosures - funds Compulsory levy/voluntary contribution fund – if invested in assets Other funds required by rules

9C. 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.

ASIAL 2021 Annual & Financial Report

47

Financial Report For the year ended 30 June 2021

Notes to the Financial Statements Note 10 Cash Flow

2021

2020

$

$

Cash flow statement

3,220,827

2,983,866

Balance sheet

3,220,827

2,983,866

-

-

110,421

104,975

18,750

18,750

-

30,076

Interest received

(22,686)

(54,593)

Rental income

(63,512)

(63,342)

70,566

(14,142)

(46,524)

(19,517)

10A. Cash Flow Reconciliation Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement: Cash and cash equivalents as per:

Difference Reconciliation of profit to net cash from operating activities: Profit for the year Adjustments for non-cash/non-operating items: Depreciation/amortisation Net losses from sale of assets

Changes in assets/liabilities (Increase)/decrease in net receivables (Increase)/decrease in other assets Increase/(decrease) in trade payables

17,448

14,011

Increase/(decrease) in other payables

51,567

68,911

Increase/(decrease) in employee provisions

14,733

69,940

150,763

155,069

Cash inflows:

-

-

Total cash inflows

-

-

Net cash provided by operating activities 10B. Cash Flow Information Receipts from/payments to other reporting units/controlled entities

48

Cash outflows:

-

-

Total cash outflows

-

-

ABN 91 000 813 365

Note 11 Related Party Disclosures 11A. Related party transactions for the reporting period The following table provides the total amount of transactions that have been entered into with related parties for the relevant year.

2021

2020

$

$

Amounts received from related parties includes the following:

-

-

Expenses paid to related parties include the following:

-

-

Amounts owed by related parties include the following:

-

-

Amounts owed to related parties include the following:

-

-

Loans from/to related parties include the following:

-

-

Assets transferred from/to related parties include the following:

-

-

498,028

496,227

(845)

8,748

-

-

497,183

504,975

Superannuation

47,313

47,142

Total post-employment benefits

47,313

47,142

Long-service leave

8,061

26,338

Total other long-term benefits

8,061

26,338

-

-

552,557

578,454

Loans to/from key management personnel

-

-

Other transactions with key management personnel

-

-

11B. Key Management Personnel Remuneration for the Reporting Period Short-term employee benefits Salary (including annual leave taken) Annual leave accrued Performance bonus Total short-term employee benefits Post-employment benefits:

Other long-term benefits:

Termination benefits Total Note 11C: Transactions with key management personnel and their close family members

ASIAL 2021 Annual & Financial Report

49

Financial Report For the year ended 30 June 2021

Notes to the Financial Statements Note 12 Financial Instruments

2021

2020

$

$

12A. Categories of Financial Instruments Financial Assets Cash and bank balances: Cash at bank

492,585

967,055

Total cash and bank balances

492,585

967,055

2,728,242

2,016,811

At amortised cost: Short term deposits Trade receivables

365,509

436,075

Total amortised cost

3,093,751

2,452,886

Carrying amount of financial assets

3,586,336

3,419,941

136,550

119,102

45,523

82,468

Financial Liabilities Other financial liabilities: Trade creditors and accruals Net GST payable Other current payables

7,057

7,057

267,676

252,943

Total other financial liabilities

456,806

461,570

Carrying amount of financial liabilities

456,806

461,570

22,686

54,593

Employee provisions

12B. Net Income and Expense from Financial Assets At amortised cost: Interest revenue Bank charges and merchant fees

(1,078)

344

Net gain from financial assets at amortised cost

21,608

54,937

Net gain from financial assets

21,608

54,937

-

-

12C. Net Income and Expense from Financial Liabilities Net gain from financial liabilities

50

ABN 91 000 813 365

Note 12 Financial Instruments. (continued) 12D. Credit Risk The following table illustrates the entity’s gross exposure to credit risk, excluding any collateral or credit enhancements.

2021

2020

$

$

492,585

967,055

Financial assets Cash and cash balances Financial assets at amortised cost

3,093,751

2,452,886

3,586,336

3,419,941

136,550

119,102

45,523

82,468

7,057

7,057

267,676

252,943

456,806

461,570

Financial liabilities Trade payables Net GST payable Other current payables Employee provisions In relation to the entity’s gross credit risk the following collateral is held: nil.

Credit quality of financial instruments not past due or individually determined as impaired No financial asset, individually, was past its due date and there were no other recoverability issues identified. Therefore, no financial asset was assessed as being impaired.

Price risk The entity does not hold any financial assets nor liabilities that are sensitive to price risk.

12G. Asset pledged/or held as collateral

12E. Liquidity Risk

The entity does not have any assets pledged nor held as collateral.

The entity does not have any financial liabilities that are subject to contractual maturities.

12H. Changes in liabilities arising from financing activities

12F. Market Risk

The entity does not have any liabilities arising from financing activities.

Interest rate risk The entity earns interest on the cash transaction accounts as well as short-term deposits. Interest rates on the transactions accounts are minimal, while the interest rate on short-term deposits are fixed at the beginning of the term. The entity earned an average of 0.74% on short-term deposit accounts held during the year. Accounts receivable and accounts payable do not attract any interest.

ASIAL 2021 Annual & Financial Report

51

Financial Report For the year ended 30 June 2021

Notes to the Financial Statements 13 Fair Value Measurement 13A. Financial Assets and Liabilities Management of the reporting unit assessed that cash, trade receivables, trade payables, and other current liabilities approximate their carrying amounts largely due to the short term maturities of these instruments. See Note 12A for a list of these financial assets and liabilities.

13B. Financial and Non-financial Assets and Liabilities Fair Value Hierarchy The following tables provide an analysis of financial and non-financial assets and liabilities that are measured at fair value, by fair value hierarchy.

Fair value hierarchy – 30 June 2021

Date of valuation

Level 1

Level 2

Level 3

$

$

$

-

4,350,000

-

-

4,350,000

-

-

-

-

-

-

-

Level 1

Level 2

Level 3

$

$

$

-

3,506,384

-

-

3,506,384

-

-

-

-

-

-

-

Assets measured at fair value Land and buildings

30-Jun-21

Total Liabilities measured at fair value

30-Jun-21

Total Fair value hierarchy – 30 June 2020

Date of valuation Assets measured at fair value Land and buildings

30-Jun-20

Total Liabilities measured at fair value Total

52

ABN 91 000 813 365

30-Jun-20

Note 14 Remuneration of auditors

2021

2020

$

$

Financial statement audit services

25,000

25,000

Other review engagements

11,204

11,292

36,204

36,292

Value of the services provided

Total remuneration of auditors Note 15 Contingent Liabilities, Assets and Commitments Note 15A: Commitments and contingencies Operating lease commitments—as lessor The reporting unit leases out two commercial office spaces. The lease agreements are as follows:

- Part of Ground Floor, 41 Hume Street, Crows Nest, NSW, 2065. The 1-year lease commenced on 15 July 2020, with an option for an additional year. Fixed reviews of 4% annually on the anniversary date of the lease during the lease term and option period. A rent-free period of two weeks will be provided at the commencement of each new lease year.

- Part of Level 1, 41 Hume Street, Crows Nest, NSW, 2065. The 1-year lease commenced on 22 October 2019, with an option for an additional year. Fixed reviews of 4% annually on the anniversary date of the lease during the lease term and option period.

Future minimum rentals receivable under non-cancellable operating leases as at 30 June are:

2021

2020

$

$

55,816

65,925

After one year but not more than two years

-

30,556

After two years but not more than three years

-

-

After three years but not more than four years

-

-

After four years but not more than five years

-

-

Within one year

After five years

-

-

55,816

96,481

The reporting unit had no other commitments nor contingent assets/liabilities for the year ended 30 June 2021.

Note 16 Administration of financial affairs by a third party The reporting unit did not have another entity administer the financial affairs of the reporting unit for the year ended 30 June 2021 (2020: None).

Note 17 Payments to former related parties The reporting unit did not make a payment to a former related party of the reporting unit during the year ended 30 June 2021 (2020: None).

Note 18 Events after the reporting period While the directors note the ongoing health and economic impacts relating to COVID-19, an estimate of the financial effect of this subsequent event cannot be made at the time of this financial report.

There were no other events that occurred after 30 June 2021, and/or prior to the signing of the financial statements, that would affect the ongoing structure and financial activities of the reporting unit.

Note 19 Section 272 Fair Work (Registered Organisations) Act 2009 In accordance with the requirements of the Fair Work (Registered Organisations) Act 2009, the attention of members is drawn to the provisions of subsections (1) to (3) of section 272, which reads as follows: Information to be provided to members or Commissioner: (1) A member of a reporting unit, or the Commissioner, 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).

ASIAL 2021 Annual & Financial Report

53

Financial Report For the year ended 30 June 2021

ASIAL Code of Professional Conduct 1

For the purposes of ASIAL’s Code of Professional Conduct (the Code), Members shall include, as applicable, any of their employees and contractors.

8

ASIAL is to be informed when the Member’s attention has been drawn to any breach by that Member of the Code.

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.

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.

3

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

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.

13 Members shall maintain appropriate and accurate

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

14 Where an alleged breach of this Code is

6 7

54

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.

10 Members shall refrain from using their relationship

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, occupational health and safety and workplace relations laws.

ABN 91 000 813 365

appropriately and promptly with complaints about the provision of its services and actively engage in the resolution of complaints raised via ASIAL’s Dispute Resolution Policy and Procedure. records in accordance with all relevant statutory requirements.

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.

Security Industry House, 41 Hume Street, Crows Nest NSW 2065 1300 127 425 | security@asial.com.au | www.asial.com.au Supporting members, promoting standards and safeguarding public interests.