Annual & Financial Report 2011
The peak body for security professionals
ASIAL Code of Professional Conduct 1. For the purposes of ASIALâ€™s Code of Professional Conduct (the Code), Members shall include, as applicable, any of their employees and contractors. 2. Members shall conduct their activities in a professional and competent manner with respect for the public interest, maintaining the privacy and confidentiality in their dealings, and shall at all times act with integrity in dealing with clients, employees or sub-contractors, past and present, with their fellow Members and with the general public. The objective of the Code is for Members to adopt best practice industry standards. 3. Members shall not intentionally disseminate false or misleading information, whether written, spoken or implied, nor engage in false, misleading or deceptive conduct or otherwise bring the security industry into disrepute. Members have a duty to maintain truth, accuracy and good taste in advertising and sales promotion. 4. Members shall not represent conflicting or competing interests except with the express consent of those concerned given only after full disclosure of the facts to all interested parties. 5. Members shall refrain from knowingly associating with any enterprise, which uses improper or illegal methods for obtaining business. 6. Members shall not intentionally injure the professional reputation or practice of another Member. 7. Members shall comply with all applicable State and Federal legislation covering security providers and in particular statutory obligations, including but not limited to matters relating to consumer laws, occupational health and safety and workplace relations laws. 8. ASIAL is to be informed when the Memberâ€™s attention has been drawn to any breach by that Member of the Code.
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9. Members shall help to improve the body of knowledge of the profession by exchanging information and experience with fellow Members, participating in industry related programs designed to raise the standard of service delivery, and by applying their special skill and training for the benefit of others. 10. Members shall refrain from using their relationship with the Association in such a manner as to state or imply an official accreditation or approval beyond the scope of membership of the Association and its aims, rules and policies. 11. Members shall cooperate with fellow Members in upholding and enforcing the ASIAL Code of Professional Conduct. 12. Members shall have in place procedures to deal appropriately and promptly with complaints about the provision of its services and actively engage in the resolution of complaints raised via ASIALâ€™s Dispute Resolution Policy and Procedure. 13. Members shall maintain appropriate and accurate records in accordance with all relevant statutory requirements. 14. Where an alleged breach of this Code is appropriately brought to the attention of ASIAL, then ASIAL will in the first instance raise this matter in writing with the Member. ASIAL will provide the Member with the opportunity to take remedial action, if that is appropriate under the circumstances, or where remedial action should have been but has not been carried out by the Member, then ASIAL is to inform the Member that it will take the appropriate disciplinary action by way of a show cause notice why their membership should not now be cancelled.
Contents Message from the President
Directors operating report
Independent audit report to members
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
BOARD OF DIRECTORS President Vice President Directors National Reference Group (in addition to Board) Past President Auditor Solicitor/Attorney Consultants Monitoring Centre Certification Inspection Industrial Relations Special Consultant
Ged Byrnes Fraser Duff (part), Kevin McDonald Rod Anderson, Bob Bruce, Antony Elliott, Chris Luhrmann (part), Mike McKinnon, Tom Roche, Leo Silver (part) Paul Corson, Chris Cubbage, Mike Dyson, Neil McLean, Suzette Po-Williams, Neville Kiely. Antony Elliott Foster Raffan Goldrick Farrell Mullan Robin Burrows, ATSC Chris Delaney, Chris Delaney & Associates Damien Smith, Enterprise Care Pty Ltd
SECRETARIAT Chief Executive Officer & Secretary Manager, Membership Manager, Compliance & Regulatory Affairs Finance & Administration Manager, Professional Development Communications Officer Cabling Officer Membership Officer Membership Coordinator Membership Coordinator Membership & Website Coordinator Membership Assistant
Bryan de Caires Belinda Allen Peter Johnson Fran Meem Tania Laird Angela Maan Richard Rolls Gordana Kundevski Alexandra Firth Ashlyn Kapinga Nadine Keady Jennifer Ellis
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message from the
President It is my pleasure to present you with the Australian Security Industry Association’s 2011 Annual Report. You may recall that at the Association’s AGM on the 7th of October 2009 the membership voted to adopt a new Constitution to allow the Association to apply to become a Registered Industrial Organisation of Employers. Last year I announced that ASIAL had been successful in its application as an Industrial Organisation of Employers and therefore be able to formally represent members on IR issues (both Fair Work Australia and Federal Court). Our first year under this regime includes the following achievements. The Association’s first postal Board election was conducted under the auspices of the Australian Electoral Commission. The Security Services Industry Award 2010 awareness campaign was rolled out across the country through funding from the Federal Government’s Shared Industry Assistance Projects program. Your Board authorised the full pay out of the loan on Security Industry House, which your Association now owns outright. After three years work, Professor Rick Sarre, Centre for Regulation and Market Analysis (University of South Australia) and Professor Tim Prenzler, Centre of Excellence in Policing and Security (Griffith University) released the findings of their benchmark study - Private Security and Public Interest. As the first ever comprehensive study of the security industry in Australia the report not only identifies the dimensions of the industry, but also addresses and provides recommendations for regulation, preferred legal empowerments and immunities, occupational health and safety concerns, and, perhaps most importantly, the pre-requisites for effective partnerships between public and private personnel. ASIAL provided financial and in-kind support along with administrative assistance and advice. The bulk of the funds were provided by the Australian Research Council. The key aims of the project were to provide data to assist government in policy development related to the industry and to facilitate effective crime prevention partnerships between government and private security. ASIAL has also this year gained Approved Security Industry Association status in Queensland. This adds to our existing approved status in the ACT, NSW and Victoria. All security firms operating in Queensland are now required as a condition of their licence, to be a member of an Approved Security Industry Association. As an approved Association, ASIAL will take on a key role of improving the
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integrity of the security industry in Queensland, which is regulated under the Security Providers Act 1993. At Security 2010, I announced the development of a program to professionalise the Electronic security sector of our Industry. At its February meeting in Brisbane, the ASIAL board endorsed the establishment of a Technical Security Certification scheme. This scheme has been designed to provide a pathway for technicians to progress within the security industry and for their skill levels to be recognised. This vendor neutral certification program provides industry recognition of capabilities across a broad range of areas, including access control, alarms, CCTV and the underpinning IT requirements for the security industry. I trust that employers and technicians alike will embrace this initiative as it seeks to provide a long overdue advance for the technical sector of the industry. The program aims to provide security equipment installers with greater clarity on their career pathways and provide a means of encouraging further professionalism within the sector. It is our desire that a truly national Certification program will assist Council Of Australian Governments (COAG) with its stage two objective of harmonisation of the technical sector. This year also marked the launch of the Association’s Member recognition program, whereby eligible corporate Members are recognised once they have attained specified membership milestones. The four recognition categories include: • Platinum – 25 years or more of continuous membership • Gold –16 – 24 years of continuous membership • Silver – 11 – 15 years of continuous membership • Bronze – 6 - 10 years of continuous membership As we look forward to the future, I urge you all to actively engage and contribute to your association, to enable us to continue to effect positive change and to improve the standing and professionalism of our industry. In closing I would like to give my thanks and gratitude for the contribution and effort exerted by the ASIAL secretariat led by our Chief Executive Officer Bryan de Caires, my fellow Directors, State Convenors, Special Interest Groups and State Reference Groups, without whom the continued success and growth of this association would not be possible.
Ged Byrnes, President, ASIAL
Secretaryâ€™s report Over the past year the Association has successfully faced many challenges and embraced many opportunities on behalf of its members around the country. As a result, a strong performance was recorded with a surplus of $208,099 generated for the year. The foundation for the performance was strong Member acquisition (+36.7%); growth in existing membership subscriptions (+5.9%); interest and investment income (+26.2%) and publication sales (+10.2%). The better than forecast performance was also achieved through prudent financial management which saw expenses down 5.8% against budget. Underperforming areas for the year were the Centre for Compliance (-88.5%); breakfast briefings (-69.4%); seminars and Workshops (-70.5%) and Security Insider magazine (-24.7%). ASIALâ€™s authorisation as an approved security industry association in Queensland contributed to the strong growth in membership achieved over the year. Likewise, membership applications received from NSW security providers continue to be strong. However, uncertainty remains in NSW as to the direction the new state government will take regarding
co-regulation and the requirement to be a member of an approved industry association. The governmentâ€™s decision is expected to have a significant impact on all approved security industry associations. During the course of the year the Association paid off in full the loan on Security Industry House. The Association continues to invest in its members through the delivery of new member services and initiatives such as the customer relationship database upgrade and promotion through the national consumer awareness campaign. Accumulated reserves rose to $2,400,456 providing a strong platform from which the Association can further develop its advocacy role for members and the industry as a whole. In closing, I would like to thank the Board (and in particular Ged Byrnes), Convenors and Secretariat staff for their ongoing support and commitment.
Bryan de Caires Chief Executive Officer & Secretary
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The Association experienced a year of strong membership growth.
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In what has been a particularly busy and engaging year, the Association has had many highlights. Among the key highlights of the year has been the exceptionally strong growth in membership. The Association’s membership base grew by more than 5% through the financial year. As of 30 June 2011 there were 3,234 Members. A significant component of this growth came from Queensland, where mandatory membership was introduced in February 2011.
Given the ability for Members to amend their details, all Members were required to confirm their Duly Appointed Representative (DAR). A Member representative holding the DAR position is able to act on behalf of the membership, including the ability to request any required membership changes and, if eligible, to vote on behalf of the Member. ASIAL Member recognition program
ASIAL became an Approved Security Industry Association in Queensland with the introduction of the requirement on 24 February 2011 that all security firms operating in Queensland need to be a member of an Approved Security Industry Association. In this role, ASIAL will take on a key role of improving the integrity of the security industry, which is regulated under the Security Providers Act 1993.
The Association officially launched its Member Recognition Program during the 2011 Australian Security Industry Awards for Excellence, held at Crown, Melbourne on 4 May 2011. The program provides eligible long standing Corporate Members a point of difference when promoting their business.
A total of 656 new applications were received for the period, an increase of 29% on the previous financial year. In line with the Association’s commitment to higher standards and professionalism, ASIC Veda checks were conducted on all new applicants. Of the applications received, 89% were successful in obtaining membership with the Association.
For the first time, a Member Reference Guide was distributed to all new and renewing Members during the year. The Guide provided access to the many benefits of being an ASIAL Member, including usernames and passwords for the Member login area and contact details for the secretariat, licensing bodies, business support and a copy of the Association’s Professional Code of Conduct.
ASIAL Board Elections
First Alert newsletters
Following ASIAL’s registration as an Employer Organisation under the Fair Work (Registered Organisations) Act 2009, Board elections were conducted by the Australian Electoral Commission for the first time in 2010.
The Association’s monthly electronic newsletter, First Alert, continued to provide relevant and timely updates on news and industry events to Members throughout the year. The e-newsletter is distributed to more than 5,385 recipients each month.
Customer Relationship Database
Face to face industry briefings
The Association continued to make significant enhancements to its customer relationship database and online capability during the year. The changes resulted in Members gaining access to higher levels of services and benefits, including:
The Association’s industry breakfast briefings held in Sydney, Perth, Hobart, Brisbane, Adelaide, Canberra and Melbourne throughout the year continued to generate strong attendances. Speakers included the Australian Competition and Consumer Commission, Department of Commerce, The NBN Co, Department of Justice (Tas), Consumer Affairs Victoria, Australian Taxation Office, Office of Fair Trading, Queensland Fire and Rescue Service, Office of Regulatory Services, NSW Police, QLD Police, SA Police, WA Police and the Office of Consumer and Business Affairs.
• An enhanced Member Search facility for full Corporate Members; • The ability to make ‘real time’ changes to their online Member profile; and • The ability for contacts attached to a Member company to have their own personalised log-in details.
Member promotional materials
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The annual Security Exhibition and Conference continues to be the industryâ€™s premier event.
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Communication Consumer awareness campaign 2010/2011 The Association’s consumer awareness campaign featured 1,632 adverts across 68 regional radio stations during the year. The 10 second adverts aired during the news and sports break spots across Southern Cross Media Radio Stations. The Think Security, Think ASIAL campaign ran across the months of October 2010 and April 2011 The Think Security, Think ASIAL campaign was positioned on 295 taxi backs in Sydney, Brisbane, Adelaide and Perth across the months of October 2010 and April 2011. The campaign was viewed by an estimated 3 million people more than 14.5million times nationally. The campaign also included 45 bus backs in metro Melbourne. The Association has continued to connect and communicate with the wider community through various media channels, including print, radio and TV. Relationships are being built with journalists and media outlets to contact the Association when seeking an informed comment on industry issues and events. The Association has been asked to comment on a broad range of issues across most categories of media, ranging from general security issues through to specific matters relating to current affairs. Among the topics addressed include: Hotel Security, Holiday Home Security, Cash Services/Cash In Transit, Crowd Controllers and venues/events, General Building Security, Strata Security, Minimising theft in Pharmacies, Retail Security Systems, Advances in security technology, Trends in the security industry, Careers in Security and Security Guarding and Legislation. The coverage received by the Association includes: ABC Darwin, ABC National, ABC Canberra, ABC Perth, ABC Newcastle, Radio 2GB (Sydney), Radio 2UE (Sydney), Lloyd’s List Daily Commercial News, The Leader Newspaper, Sydney Morning Herald, The Age, Townsville Bulletin, Daily Telegraph, The Australian, Sunday Mail, Australian Govlink, Risk Magazine, Post Script, Retail Pharmacy, Security Solutions, Connections Magazines, Home Expert Magazine, Facility Perspective Magazine, StrataVoice, Nett magazine, Channel Seven 6pm News, Channel Seven Sunrise, Channel Nine News and Channel Ten The 7pm Project. Security 2010 Exhibition & Conference The 2010 Conference, held at the Sydney Convention and Exhibition Centre, featured an outstanding line up of international and local speakers. The exhibition, organised by Diversified Exhibitions Australia (DEA) showcased over 110 exhibitors and attracted strong visitor numbers. The Cocktail Reception sold out to more than 300 attendees and the Gala Dinner held at the historic Doltone House attracted over 550 guests.
Achievement, Integrated Security Solution, Training, Security Management, Special Event or Project and In-House Security. The awards were judged by an independent panel chaired by Peter Johnson ASIAL’s Manager for Compliance & Regulatory Affairs. The judging panel included Maralyn Bengert, Manager of Accommodation Services in the Shared Service Provider Victorian Government; Dr Roger Lough, AM, Independent consultant and company director specialising in technologies for Defence; Jennifer McAuley Department of Human Services and Alan Ross, CEO, CPSISC. Award winners included: • Individual Achievement: Binaya Thapa (Trident Security) • Special Event: MSS Security (150th Emirates Melbourne Cup Carnival) • Special Project: Strategic Protection (Perisher Snow Fields) • In-House Security Award: Sydney Convention & Exhibition Centre • Training: Central Monitoring Services • Integrated Security Solution (Above $250K): Pacom Systems • Security Management: Trident Security Highly commended: • Special Project: South Australia Police (Griffin Project) • Security Management: Warwick Brown (Panthers Group) • In-House Security Award: National Australia Bank • Integrated Security Solution (Above $250K): Chubb Fire & Security Security Insider Security Insider magazine provided members with editorial features on a range of topical industry issues. In addition to regular Industrial Relations articles, among the topics featured included trends in commercial armed robbery; interviews with industry leaders; Security services and the National Broadband Network; Australian Consumer Law; crisis decision making (Bruce T. Blythe US) and understanding the violent mind in the workplace. A special issue (February/March 2011) was dedicated to the Security Industry Services Award 2010.
Awards for Excellence In their 16th year the 2011 Australian Security Industry Awards for Excellence honoured the very best in the categories of Individual
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“…a high level of
educative materials produced”
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Shared Industry Assistance Project to make the Modern Award clearer for security industry employers In early 2011, the Fair Work Ombudsman (FWO) in conjunction with the Australian Security Industry Association (ASIAL) commenced a national education campaign on changes to the Security Services Industry Award 2010. The campaign was funded by the Australian Government through the Fair Work Ombudsman’s Shared Industry Assistance Projects (SIAP) Grant Program, which aims to better inform employers (particularly small to medium businesses) about changes to modern awards applicable to their industry sector. Following a competitive selection process, ASIAL was one of 15 successful organisations selected to deliver the education campaign in conjunction with the FWO. The campaign provided information tailored specifically to the needs of security industry employers (ASIAL Members and non-members). The campaign featured: • 10,000 copies of a printed information guide, copies of which were placed in the February/March edition of Security Insider Magazine and supported through mail outs conducted by licensing bodies in TAS, ACT, VIC and NSW. • A dedicated website, www.securityindustryaward.com.au, was viewed more than 3,400 times and featured a downloadable copy of the guide, fact sheets, checklists, six online videos, links to the FWO website and an online question/feedback facility. • Face to face information seminars in Hobart, Brisbane, Melbourne, Adelaide, Perth, Sydney and Canberra. These seminars attracted an audience of 270 people. • A dedicated helpline, from which Chris Delaney, ASIAL’s Fair Work Liaison Officer, responded to more than 100 calls. • Ongoing communication through dedicated Security Industry Award e-newsletters and a SMS campaign. The guide, seminars and online resources covered key features of the Modern Award such as the National Employment Standards, hours of work, breaks, shift work penalties, overtime, employment status, classifications, loadings and rates of pay summaries. The Association was acknowledged for the “high level of educative materials produced” for the security industry.
awareness Industrial Relations
Complaints, Compliance & Regulatory Affairs
2011 saw the first full year of the new modern award system, changes to industrial relations laws and the first Annual Wage Review affecting Federal system employers, and the second anniversary of the Fair Work Act 2009. Other than Western Australia, all state private sector employers i.e. sole traders and partnerships were drawn into the federal system on 1 February 2011. ASIAL developed (with support of the Fair Work Ombudsman) a national education campaign targeting employers in the private security industry through free seminars, websites, a simplified guide to the award and an information hotline. The Association has supported and represented members in unfair dismissal cases, adverse actions, discrimination and underpayment of wages claims. All of which have increased as a result of changes to workplace legislation and increased union activity. In 2011 the Fair Work Ombudsman (FWO) embarked on a follow up audit campaign focusing on wages and conditions, sham contracting and phoenixing in the private security industry. The Association has sought and gained clarification on the application of meal and crib breaks, broken shifts, non armoured cash in transit, casual loadings (in Queensland) part time work and casual overtime. We expect to make submissions to vary the Security Services Industry Award 2010 in the next review period commencing January 2012. With the recent Annual Wage review ASIAL has been able to secure approval of all rates schedules through the FWO ensuring members accurate rate schedules acceptable to the FWO. ASIAL continues to identify issues affecting members and the industry and will continue to represent the best interests of members and the industry to Government agencies and industrial tribunals.
The Association continues to actively manage complaints and disputes in accordance with its Complaint and Dispute Resolution Policy and Procedures. Thirty-five (35) dispute enquiries were registered with seventeen (17) formal complaints investigated. The majority of these disputes and complaints were processed through conciliation with no disputes or complaints forwarded to the Disciplinary Committee. A common thread among the complaints and disputes received, revolved around communication and service delivery. The Association provided support, advice and guidance to both Members and the public in achieving satisfactory outcomes. Membership compliance continued, with a strong emphasis on ensuring member adherence to legislative requirements, industrial relation matters and safety issues. Specific concerns have surrounded compliance with regards to the Australian Transaction Reports and Analysis Centre (AUSTRAC) requirements for Cash in Transit (CIT) service providers. Legislative change has positioned CIT providers with management and compliance costs that are considered disproportionate to the identified risks. ASIAL continues to communicate with the Federal Government and AUSTRAC in an effort to provide CIT providers with a compliance regime that is manageable and cost effective. The last 12 months has seen a significant increase in CIT member compliance concerns and request for guidance in managing their compliance requirements. The variations and independent nature of State and Territory security Regulators continues to complicate security operations nationally. This has been particularly evident with requests from Members seeking advice on licensing, registration, training, professional development, renewal training and cross border security operations and the associated compliance requirements. Whilst implementation was to be achieved by July 2010, most State and Territory Regulators have implemented (or are in the process of moving to implement) the Council of Australian Governments (COAG) security licensing initiatives. Disciplinary Matters In accordance with the ASIAL Constitution, during the course of the year 171 members were expelled from the Association. A further 30 were expelled, but later reinstated.
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ASIAL has engaged with The NBN Co to work through migration issues with the roll out of the national broadband network.
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Representation Careers in electronic security The Association, in conjunction with Business Skills Victoria and CPSISC, produced a ‘Careers in Electronic Security’ booklet during the financial year. The booklet encouraged new entrants to consider a role in the Electronic Security Industry and was disseminated to a number of careers advisors, employers and training organisations. The booklet was funded under the Reframing the Future program as a Strategic National Initiative of the Ministerial Council for Vocational and Technical Education administered by the Commonwealth of Australia through the Department of Education, Employment and Workplace Relations. Forging partnerships A key focus for the Association has been to forge stronger partnerships with emergency services and regulatory agencies around the country. One example of this is the Memorandum of Understanding the Association entered into with The Australasian Fire and Emergency Service Authorities Council (AFAC) - the peak body for public sector fire, land management and emergency service organisations in Australia and New Zealand. Similarly, whilst the security industry is keen to embrace the opportunities proposed under the National Broadband Network roll-out, ASIAL has raised industry concerns about the migration of vital legacy services such as security and alarm panels, medical and health monitoring systems, duress systems, fire panels and help point systems. Over the past year ASIAL has engaged with The NBN Co to work through some of the migration issues. The Association continues to provide representation for its members through regular meetings with State/Territory Ministers and Regulators. ASIAL Cabling Registry The past year has seen all five Cabling Registrars largely holding the numerical line, with steady inflows of new registrations and consistent rates of renewal partially offset by non-renewals due to retirements from the industry, with large numbers of those cablers converting to the CPR (registration) regulatory framework from the former ACA licensing system either reaching or nearing retirement age during their most recent 3-year registration period. ASIAL has been no exception, enjoying modest growth with total registrations currently at 5362, up from 5267 as at time of publication of the previous ASIAL Annual Report.
The trend towards Open category registration as a first option, combined with the upgrading of existing Restricted registrations to the Open level, continues. ASIAL Open registrations currently outnumber Restricted registrations by 3.7 to 1, at 4216 to 1129. This tendency remains consistent across all Registrars and industry sectors as more individual technicians recognise the legal-compliance inadequacy of the basic level licence (and its recognised competencies) as a qualification for work on current initiatives such as offered by the NBN. In the electronic security sector, home base of around half of ASIAL’s registered cablers, with installed systems increasingly complex and challenging, the writing could perhaps be said to have been on the wall for some time, yet observers in some quarters of the sector have reported seeing at least a slight increase in numbers of new Restricted registrations, especially in cases where the cabler’s employer underwrites the cost of training and registration. Further to information in the previous Annual Report, the Australian Communications and Media Authority (ACMA) has confirmed that no discussion of phasing out the basic licence has yet occurred or is likely to do so. Consequently, ASIAL has prepared additional information for publication in Insider and First Alert, warning Restricted registered cablers to check the legal work scope permitted by their qualifications against the range of cabling tasks they undertake, or are requested to undertake, on a regular daily basis. The ACMA may impose fines of over $1,300 on individuals for performing cabling work unregistered, or with a registration that does not appropriately qualify the holder for that work.
Ged Byrnes Director
Kevin McDonald Director
Crows Nest, 2 September 2011.
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Ged Byrnes – President Ged is a Director of Protection Pacific Security, a Melbourne based company which has been operating since 1992. The company provides security services including alarm installation, access control, CCTV, guards and patrols. The company also operates its own 24‑hour control room. Ged can draw from a broad range of experience across all facets of the industry and offer an understanding of issues that affect ASIAL Members. He has worked in the security industry since 1980 and his experience includes all aspects of design, installation and monitoring of intruder detection systems and associated devices such as access control and CCTV systems. Ged is a member of the Institute of Security Management and Past Victorian Chairman of ASIAL, a position he held for seven years. He has an Associate Diploma of Security Management and Certificate of Security Management. He represented ASIAL on the National Executive Council from 1995‑2002 and represented ASIAL on the Victorian Police Security Liaison Group, Control Room Operators Group and Alarm Response Consultative Committee. He was re-elected to the National Executive Council in 2003 and elected as Vice President in 2004. Ged was elected to the position of President in 2006. He presently represents ASIAL on the Victorian Security Industry Advisory Council and is Chairman of the VSIAC electronics committee. Kevin McDonald – Vice President Kevin has been involved in the security industry for over 30 years. His career started with Wormald Security in the 1970s and he has extensive experience in electronic security, sales, contracting, operations and monitoring. He has held sales and operational management positions in a number of nationally based security companies and now holds the position of National Operations Manager for the Signature Security Group (a division of Tyco Int.). Kevin is a member of the National Electronic Security Group. Kevin has a Cert IV in Security Risk Management a Diploma in Marketing Management is a licensed security consultant. Bryan de Caires - Chief Executive Officer & Secretary Bryan de Caires has over 20 year’s business management experience. His early career was as a senior editor with Euromoney Publications Plc - a leading global finance and business publisher based in London. In 1990 he moved to Australia to take up a position as General Manager of AIC (later renamed Terrapinn) - a business media company. In 1997 he was appointed Managing Director of the company’s exhibition business. In 1999 he joined the Australian Human Resources Institute as National Manager, -Professional Development. He joined ASIAL in 2000 and was appointed Chief Executive Officer and Secretary in 2006. Bryan is Deputy Chairman of NSW Crime Stoppers. Tom Roche Tom has worked in the security industry for over 25 years including 18 months secondment to Securicor in the UK in the early 1990’s. Since assuming leadership of SNP in 1995, he has been responsible for the strategic management and financial performance of the company. Tom is a current Board Member of ASIAL, and CPSISC (Construction & Property Services Industry Skills Council). In addition, he chaired the Property Services Industry Training Advisory Board NSW (PSITAB) during 2007/08 and reviewed licensing and training requirements for the NSW Security Industry. Tom has a Bachelor of Arts degree majoring in Economics and also holds a Master of Management degree. He additionally holds a Certificate IV in Risk Management. Rod Anderson Rod is the National General Manager Operations of ISS Security and has over 35 years security and related experience, specifically in the areas of management, operations, training and business development. Rod progressed through a number of senior management positions within ISS Security, including Regional General Manager of WA, and then later as the Regional General Manager of Qld and the NT . He has extensive experience in the delivery of security and protection of Aviation, Maritime and Critical Infrastructure. Rod has also served on a number of security industry review committees including the CPSISC Security Industry Training Review Committee and the Security Provider’s Act Review Committee in Queensland. Rod is a licensed security consultant and trainer in NSW and has an MBA, a Bachelor of Science degree and Diploma of Security Risk Management.
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Mike McKinnon Mike has been involved in the security industry for more than 20 years and was appointed to the ASIAL Board in mid 2010. Professional studies include a Bachelor of Business Degree as well as qualifications in Local Government Administration. Mike is a Certified Practicing Accountant (CPA) and spent a considerable number of years in professional practice and finance before making the move to general management of commercial enterprises. He is currently the Managing Director of MSS Security Pty Ltd, Australia’s largest security personnel provider and oversees the operations of the Australian business, operating across all Australian States and Territories. As such this gives a national insight to the issues impacting the industry. Mike also has the unique perspective of having been a significant client within the industry whilst with the Qantas Group for a number of years. This period included managing their contracted security screening services, equipment suppliers and their in-house alarm monitoring and identification teams. In addition, Mike also brings a wealth of knowledge and experience gained in security electronic wholesaling, safe manufacturing and distribution, monitoring and electronic solutions. Bob Bruce Bob’s career in the security industry has spanned more than a quarter of a century. He began as a plain clothes investigator with the Military Police and became directly involved and worked closely with the Victoria Police Criminal Investigation Branch. Bob joined Mayne Nickless Ltd as a Security Officer and over 20 years ago took up the role of National Security Manager Armaguard. Following the acquisition of Armaguard by Linfox in February 2003, Bob has taken on the role as General Manager, Security, Armaguard. Bob is Chair of ASIAL’s Cash in Transit Special Interest Group and has represented ASIAL in a number of regulatory forums including a current Ministerial appointment to the Victorian Firearms Consultative Committee. He is also a founding member of the Crime Stoppers Board of Management in Victoria, recently stepping down from the position of Deputy Chairman after 20 years service and currently holds the title of Life Member. Antony Elliott Antony was first appointed to the National Executive in 1994. He held the position of NSW Branch Chairman for many years and was Individual Member Division Chairman. He was elected President in 2001 and remained in that position until 2006. He has served on the board as a director since standing down as President and is committed to assisting with the future direction of the Association. Antony played a crucial role in ensuring industry acceptance of the Cabling Provider Rules and has contributed to preserving the security industry’s interest in this area since. Antony is the Managing Director of E & C Security Systems Pty Ltd; an electronics based security company, where he has been involved with the general management of the company for over 25 years. Leo Silver Leo is a Director of Security Communications Solutions International (SCSI), a leading developer and supplier of Alarm Transmissions Systems generally and the DirectWireless system specifically. The company derives from a successful Victorian based security business called Guard-Well Security Services and, although now focused on the provision of communication solutions, the detailed understanding of the day to day aspects of running a full service security business pervade the operations of the company. Leo has been actively involved in industry developments through his participation in the Victorian Branch Working Group of ASIAL, the National Electronic Security Special Interest Group and in his support of Australian standards for the industry. Christopher Luhrmann Christopher Luhrmann is the founder and principal of SIA Security. He has 24 years’ experience in Law Enforcement and the private security and investigation industries, serving with the New South Wales and Queensland Police Services. He has held positions as an investigator, intelligence analyst/officer, and officer in charge and team leader in both local and specialist squads. Christopher has gained a wide range of skills, which include conducting security and surveillance operations both internationally and domestically. Since 1990, he has been involved in specialist weapons and tactical & VIP Protection teams and has trained police in firearms and operational skills and tactics. He is also a qualified electrical technician experienced in the use, installation and repair of security and electronic equipment. Christopher is a member of the Australian Institute of Company Director and has vocational training in Business Management. Fraser Duff Fraser is the Managing Director of Passmore Duff Pty Ltd trading as CARM Training. The firm provides a range of corporate risk management advisory and specialist training services to government and corporations. Passmore Duff Pty Ltd, “CARM Training” has been successfully operating since 1996 and is a recognised industry leader in the development of interactive online safety and security e learning training programs. Fraser’s qualifications include an MBA from the Australian Graduate School of Management (AGSM), Advanced Diploma in Security Risk Management from CIT and Diploma in Adult Education from UTS. From 2001 to 2009 Fraser was a Councillor on the main council of NSW Business Chamber formally known as Australian Business Limited (ABL).
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ABN 91 000 813 365
Directors Operating Report Your directors submit this operating report for the year ended 30 June 2011. The names of the company’s directors in office during the financial year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated. Their qualifications, experience and special responsibilities are set out on pages 14 and 15 of this Annual & Financial Report. Director Rod Anderson Fraser Duff* Chris Luhrmann** Thomas Roche
Robert Bruce Antony Elliott Mike McKinnon Leo Silver**
Ged Byrnes Peter Johnson Kevin McDonald*
*Fraser Duff did not stand for re-election in 2010. In November 2010 Kevin McDonald was declared elected as Vice President. ** In November 2010, Leo Silver was declared elected to the Board, replacing Chris Luhrmann.
Key objectives of the Association The Association holds an annual strategic planning session involving members from around the country which provides a forum to review the Association’s strategic priorities. The Association’s key objectives include: • Awareness – to raise the profile of the Association in the minds of key stakeholders and lay a platform to allow appreciation of the differentiated service offerings it provides; • Influence – to be in a position to shape regulatory policy and impact on public and media opinion. • Quality – to establish programs, accreditation and assessment that set appropriate quality standards for members, which in turn become the benchmark for the industry. Strategy for achieving these objectives Through a range of short and long-term measures, the Association strives to achieve its strategic objectives. Among the initiatives implemented or in the process of implementation include: • The development of new members benefits, such as the law and audit service; • Ongoing media and communication campaigns to promote awareness of ASIAL; • Compliance initiatives awareness, including the Shared Industry Assistance Project awareness campaign for the Security Services Industry Award 2011; • The development of professional development activities, such as the Security Industry leadership Program; • Ongoing enhancement of the Association’s customer relationship management system; • Ongoing improvements to procedures for processing member applications; and • The introduction of the member recognition program. Measurement of the Association’s performance The Association measures performance through a range of metrics. These include member acquisition and retention rates; growth in non-subscription based revenue; media coverage 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 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
ABN 91 000 813 365
the nature of this activity occurred during the year. Number of recorded Members The number of Members recorded in the Register of Members of the Organisation as at 30 June 2011 for the purposes of section 254 (2) (f) of the RAO Schedule was 3,234. Employees The company employed 11 employees as at 30 June 2011 (2010: 12 employees). Rights of Members to resign In accordance with section 174 of the RAO Schedule, a member may resign from membership of the Organisation by written notice addressed and delivered to the Chief Executive Officer as per 11.1 of the ASIAL Constitution. Details of Trustee of Superannuation Entities No member of the Board was: i. A trustee of a superannuation entity of an exempt public sector superannuation scheme or ii. A director of a company that is a trustee of a superannuation entity or exempt public sector superannuation scheme where the criterion for the member being a trustee or director is that the member is an officer or member of ASIAL. Operating Results for the Period and Review of Operations The Association earned a net profit before tax for the year of $208,098 (2010: $63,967). The Association’s reserves rose to $2,400,456. The Association remains committed to its policy of reinvesting a significant proportion of prior year surpluses into maintaining and improving services to members, whilst using the balance in building reserves for when they are needed. Over the past year continued improvements have been made to the Association’s customer management database site and further resources have been directed towards the development new member services. Total expenses for the year fell by 3.1%, whilst total trading income was up 5.2%. A more detailed report is provided on pages 7-11. Significant Changes in the State of Affairs Since gaining approval as a Registered Organisation of Employers, the Association has performed a more proactive role in the area of industrial relations. The Association gained approval as Approved Security Industry Association in Queensland on 24 February 2011. Significant Events After Balance Date No significant events have taken place after the balance date. Likely Developments and Expected Results Directors have budgeted on a small surplus for the coming year. A decision by the new NSW Government on whether the mandatory membership requirement will be removed is still being awaited. Provision has been made in the 2012 budget for a fall off in membership revenue in NSW, should the mandatory membership requirement be removed. The Association’s consumer awareness campaign to promote the use of ASIAL member companies will continue over the coming year. Through the ongoing support of its strategic partners, the Association will develop new initiatives aimed at raising standards and compliance among members. The Association is progressing slowly with its aim of developing a technical certification and assessment scheme to further raise the level of professionalism within the industry. Loans, grants and political donations The Association has made no loans or grants over the past year. The Association made political donations to the Liberal Party of NSW ($4,850) and Liberal Party of Australia -NSW Division ($550). Proceedings on behalf of the Company No person has applied for leave of Court to bring 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.
ASIAL Annual & Financial Report 2011 17
Directors Operating Report cont.
Indemnification and Insurance of Directors and Officers During the year, the company has paid a premium in respect of a contract insuring directors and officers against: (a) liability arising from wrongful acts committed in their capacity as directors and officers of the company, but excluding dishonesty, fraud, malicious conduct or wilful breach of duty; and (b) the costs of legal representation in relation to such liabilities. The premium paid was $11,613, which also includes cover for the company in respect of loss it suffers as a result of wrongful, wilful or fraudulent acts of its directors, officers and employees. This contract complies with Section 199B of the Corporations Act 2001. Auditors Foster Raffan continues to act as auditors in accordance with Section 327 of the Corporations Act 2001. Directors’ Emoluments and Transactions No emoluments have been received or are due and receivable by Directors from the company or any related body corporate. Directors Meetings Attendance by each director at board and board committee meetings, held during the period each director held office this year, is shown in the table below. The number of meetings is in brackets. Directors Attendance at Board meetings Rod Anderson 5 (5) Bob Bruce 4 (5) Ged Byrnes 5 (5) Fraser Duff 1 (1)* Antony Elliott 5 (5) Chris Luhrmann 1 (1)* Kevin McDonald 4 (5) Mike McKinnon 5 (5) Thomas Roche 4 (5) Leo Silver 4 (4)* *Fraser Duff did not stand for re-election to the Board in November 2011. Following the postal ballot conducted by the Australian Electoral Commission, Leo Silver replaced Chris Luhrmann on the Board. Attendance at National Reference Group meeting Rod Anderson 1 (1) Bob Bruce 1 (1) Ged Byrnes 1 (1) Paul Corson 1 (1) Chris Cubbage 1 (1) Fraser Duff 0 (1) Michael Dyson 0 (1) Antony Elliott 1 (1) Peter Johnson 1 (1) Neville Kiely 1 (1) Chris Luhrmann 1 (1) Kevin McDonald 1 (1) Mike McKinnon 1 (1) Neil McLean 1 (1) Thomas Roche 1 (1) A copy of the auditors’ independence declaration, as required under section 307C of the Corporations Act 2001, is set out on page 19. This report is made in accordance with a resolution of the Directors.
Ged Byrnes Director Crows Nest, 2 September 2011.
Kevin McDonald Director
In accordance with a resolution of the directors of Australian Security Industry Association Limited, we state that: (a) The financial statements and notes set out on pages 20 to 33 are in accordance with the Guidelines of the General Manager, Fair Work Australia and: (i) comply with Accounting Standards and the Corporations Regulations 2001; and (ii) give a true and fair view of the company’s financial performance, financial position and cash flow as at 30 June 2011 and of its performance for the year ended on that date; (b) in the opinion of the directors there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. (c) during the financial period to which the General Purpose Financial Report relates and since the end of that year: (i) meetings of the committee of management (the Board) were held in accordance with the Rules of the reporting unit (ASIAL) (ii) the financial affairs of the reporting unit have been managed in accordance with its Rules; and (iii) the financial records of the reporting unit have been kept and maintained in accordance with Fair Work (Registered Organisations) Act 2009 (the Act) and its related Regulations; and (iv) no member of the Association or a Registrar has made a request for information under section 272 of the RAO Schedule; and (v) there has been no order for inspection of financial records made by the Commission under section 273 of the RAO Schedule. On behalf of the Board
Ged Byrnes Director Crows Nest, 2 September 2011.
Auditor’s Independence Declaration I declare, to the best of my knowledge and belief that during the year ended 30 June 2011 there have been: (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (ii) no contraventions of any applicable code of professional conduct in relation to the audit. Foster Raffan Chartered Accountants Level 6, 8 West Street, North Sydney, NSW 2060
G.D.D. Raffan Partner North Sydney, 2 September 2011
18 ASIAL Annual & Financial Report 2011
Kevin McDonald Director
ABN 91 000 813 365
Independent Audit Report to Members We have audited the accompanying financial report of Australian Security Industry Association Limited (the company) which comprises the statement of financial position as at 30 June 2011 and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and the directors' declaration. The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal controls as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. In our opinion the financial report of Australian Security Industry Association Limited (a) is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the company's financial position as at 30 June 2011 and of its performance for the year ended on that date; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and (b) complies with the requirements of Part 3 of Chapter 8 of the Fair Work (Registered Organisations) Act 2009.
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.
ABN 91 000 813 365
Foster Raffan Chartered Accountants
G.D.D. Raffan Partner North Sydney, 2 September 2011 Level 6, 8 West Street, North Sydney, NSW 2060
ASIAL Annual & Financial Report 2011 19
Statement of comprehensive income FOR THE YEAR ENDED 30 JUNE 2011
Revenue â€“ operating
Revenue - investment
Expenses directly related to operating activities
PROFIT FOR THE YEAR
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
PROFIT/ (LOSS) BEFORE INCOME TAX Income tax expense
The accompanying notes form part of these financial statements.
20 ASIAL Annual & Financial Report 2011
ABN 91 000 813 365
Statement of financial position AS AT 30 JUNE 2011
Cash and cash equivalents
Trade and other receivables
Other current assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS Property, plant and equipment
CURRENT LIABILITIES Trade and other payables
Current tax Provisions
Centre for Compliance fund
TOTAL CURRENT LIABILITIES
NON CURRENT LIABILITIES Borrowings
TOTAL NON-CURRENT LIABILITIES
ABN 91 000 813 365
ASIAL Annual & Financial Report 2011 21
Statement of changes in equity FOR THE YEAR ENDED 30 JUNE 2011
RETAINED EARNINGS AT 1 JULY 2009
RETAINED EARNINGS AT 30 JUNE 2010 Comprehensive income
RETAINED EARNINGS AT 30 JUNE 2011
Statement of cash flow FOR THE YEAR ENDED 30 JUNE 2011
CASH FLOW FROM OPERATING ACTIVITIES:
Receipts from members and others
Payments to suppliers and employees
Finance costs paid
Income tax paid
Net cash generated from operating activities
CASH FLOW FROM INVESTING ACTIVITIES: Payment for property, plant & equipment
Net cash used in investing activities
CASH FLOW FROM FINANCING ACTIVITIES: Payment from Centre for Compliance Fund
Repayment of bank loan
Net cash used in financing activities
NET INCREASE/ (DECREASE) IN CASH HELD
Cash and cash equivalents at the beginning of the financial year
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR
The accompanying notes form part of these financial statements.
22 ASIAL Annual & Financial Report 2011
ABN 91 000 813 365
Notes to the financial statements FOR THE YEAR ENDED 30 JUNE 2011 The financial statements are for Australian Security Industry Association Limited (the company) as an individual entity incorporated and domiciled in Australia. The company is limited by guarantee. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) and the Corporations Act 2001. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated. The financial statements have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The financial statements were authorised for issue on 25 August 2011 by the directors of the company. Accounting Policies (a) Revenue Recognition Membersâ€™ and other subscriptions or fees are accounted for when received and recognised as income in equal monthly amounts over the period to which they apply. Income in respect of the various activities of the company, with the exception of special events / functions, is recognised when invoiced. Income in respect of special events / functions is recognised when received. Income received and expenses incurred in advance of activities are recognised when the activity is completed. If a loss is expected, a provision for the likely loss is made as soon as it becomes apparent. All revenue is stated net of Goods and Services Tax (GST). (b) Development of New Services Costs of developing new services are expensed as incurred. (c) Income Tax The company is exempt from income tax as a result of being registered as an employer organisation under the Fair Work (Registered Organisation) Act 2009. (d) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at-call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position. (e) Trade and Other Receivables Trade receivables are recognised and carried at the original invoiced amount. A provision for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written-off as incurred.
ABN 91 000 813 365
ASIAL Annual & Financial Report 2011 23
Notes to the financial statements (f) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and any impairment losses. Property Freehold land and buildings are shown at their fair value based on periodic, but at least triennial, valuations by external independent valuers, less subsequent depreciation for buildings. In periods when the freehold land and buildings are not subject to an independent valuation, the directors conduct directors’ valuations to ensure the carrying amount for the land and buildings is not materially different to the fair value. Increases in the carrying amount arising on revaluation of land and buildings are recognised in other comprehensive income and accumulated in the revaluation surplus in equity. Revaluation decreases that offset previous increases of the same class of assets are recognised in other comprehensive income and reduce the revaluation surplus in equity. All other decreases are charged to the statement of comprehensive income. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Office Equipment Office equipment is measured on the cost basis and is therefore carried at cost less accumulated depreciation and any accumulated impairment. In the event the carrying amount of office equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount. A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(i) for details of impairment). Depreciation The depreciable amount of all fixed assets including buildings, but excluding freehold land, is depreciated over the asset’s useful life to the entity commencing from the time the asset is held ready for use. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset
Buildings – straight line basis
Office equipment – diminishing value basis 10% - 66.7% The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the statement of comprehensive income. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. (g) Leases Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are recognised as expenses on a straight-line basis over the lease term. (h) Financial Instruments Initial recognition and measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to either purchase or sell the asset (ie trade date accounting is adopted). Financial instruments are initially measured at fair value plus transactions costs except where the instrument is classified “at fair value through profit or loss”, in which case transaction costs are recognised in profit or loss immediately.
24 ASIAL Annual & Financial Report 2011
ABN 91 000 813 365
Notes to the financial statements Classification and subsequent measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest rate method, or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. Amortised cost is the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method. Financial assets at fair value through profit or loss Financial assets are classified at ‘fair value through profit or loss’ when they are held for trading for the purpose of short-term profit taking, or where they are derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in fair value (ie gains or losses) being recognised in profit or loss. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the entity’s intention to hold these investments to maturity. They are subsequently measured at amortised cost. Financial liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Impairment At the end of each reporting period, the company assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in profit or loss. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit or loss at this point. Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial liability, which is extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss. (i) Impairment of Assets At the end of each reporting period, the entity reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is recognised in profit or loss. Where the future economic benefits of the asset are not primarily dependent upon the asset’s ability to generate net cash inflows and when the entity would, if deprived of the asset, replace its remaining future economic benefits, value in use is determined as the depreciated replacement cost of an asset.
ABN 91 000 813 365
ASIAL Annual & Financial Report 2011 25
Notes to the financial statements Where it is not possible to estimate the recoverable amount of an assets class, the entity estimates the recoverable amount of the cash-generating unit to which the class of assets belong. Where an impairment loss on a revalued asset is identified, this is recognised against the revaluation surplus in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that class of asset. (j)
Trade and other payables Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the company during the reporting period which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.
(k) Employee Benefits Provision is made for the companyâ€™s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may not satisfy vesting requirements. Those cash flows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows. Contributions are made by the entity to employeeâ€™s superannuation funds and are charged as expenses when incurred. (l) Provisions Provisions are recognised when the entity has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period. (m) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities, which are recoverable from or payable to the ATO, are presented as operating cash flows included in receipts from customers or payments to suppliers. (n) Comparative Figures Where required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. (o) Critical Accounting Estimates and Judgments The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the company. Key Estimates Impairment The freehold land and buildings were acquired in November 2008. At 30 June 2011 the directors reviewed property prices in the area and concluded that the carrying value does not exceed the recoverable amount of land and buildings at 30 June 2011. (p) Economic Dependence The company is dependent on being recognised as the peak national body representing the interests of the security industry.
26 ASIAL Annual & Financial Report 2011
ABN 91 000 813 365
Notes to the financial statements 2011 2010 2. REVENUE $ $ Revenue from operating activities Members' subscriptions 1,409,671 1,323,198 Exhibition, conference and seminars 218,320 244,806 Member marketing fee 101,628 103,493 Cabling providers registrations 128,810 131,412 Magazine 169,995 179,848 Breakfast briefings 44,775 42,253 Grading, seminars and workshops 52,265 49,707 Insurance support 45,000 45,000 Special events 46,764 42,864 Consultancy 7,860 2,639 Strategic partnership 27,937 18,182 Fairwork Ombudsman project grant 103,011 Miscellaneous income 31,734 28,066 Total revenue from operating activities 2,387,770 2,211,468 Revenue from investment activities Rental income Interest Total revenue from non-operating activities Total revenue from ordinary activities
53,096 68,238 121,334
25,322 52,491 77,813
3. OTHER EXPENSES Include: Bad debts 915 8,836 Auditor remuneration Audit (Including $2,000 under-provision re prior year) 18,000 17,500 Other services 22,660 18,161 40,660 35,661 Public relations - government 98,176 68,610 Consulting 110,882 109,160 Donations 5,400 4,091 Legal 12,830 37,690 Meetings â€“ members,directors and reference groups 51,227 55,101 Website 41,240 16,892 4. TAX EXPENSE The prima facie tax at 30% (2010: 30%) on the profit/ (loss) from ordinary activities before income tax differs from the income tax expense as follows: Prima facie tax on profit/ (loss) from ordinary activities - 19,190 Tax effect of permanent differences: (Profit)/loss from mutual activities - 22,192 Investment incentive - (6,562) Deferred tax asset not recognised - (4,740) Other - 69 Tax expense - 30,149 The components of tax expense comprise: Current tax - 30,149 The company was exempt from income tax from 1 July 2010 as a result of being registered as an employer organisation under the Fair Work (Registered Organisations) Act 2009.
ABN 91 000 813 365
ASIAL Annual & Financial Report 2011 27
Notes to the financial statements 5. KEY MANAGEMENT PERSONNEL COMPENSATION Short term benefits Salary Superannuation Total 6. CASH AND CASH EQUIVALENTS Current Cash at bank and on hand Short-term bank deposits
327,556 28,666 356,222
317,401 28,227 345,628
199,484 1,284,208 1,483,692
141,408 1,655,359 1,796,767
$13,592 (2010 $12,745) of the short-term bank deposits are bonds paid to the company by tenants. 7. TRADE AND OTHER RECEIVABLES Current Trade receivables 86,782 529,846 Less: provision for impairment (20,000) (30,000) 66,782 499,846 Provision for impairment as at 30 June 2009 Charge for year Written off Provision for impairment as at 30 June 2010 Charge/(credit) for year Written off Provision for impairment at 30 June 2011
30,000 8,836 (8,836) 30,000 (10,915) 915 20,000
This year, for the first time, subscriptions were invoiced and accounted for when received. In prior years, they were invoiced and accounted for prior to their due date. This has had the effect of reducing trade receivables and unearned income in the balance sheet this year compared with prior years. It has not affected the income statement as subscriptions continue to be recognised as income over the period to which they relate. Credit Risk – Trade Receivables There are no trade receivables in respect of subscriptions as they are invoiced only when received. The company’s credit terms in respect of services and activities are 30 days. Overdue debts are pursued and monitored by management. They are assessed for impairment and provided for where specific circumstances indicate that the debt may not be paid in full to the company. The company does not have any material credit risk exposure to any single receivable or group of receivables. The following table details the company’s trade receivables exposed to credit risk (prior to collateral and other credit enhancements) with ageing analysis and impairment provided thereon. The balances of receivables that remain within the initial trade terms (as detailed in the table) are considered to be of high credit quality. 2011 <30 days 31-60 days 61-90 days >90 days
Gross amount $ 22,622 40,084 13,051 11,025 86,782
Past due and impaired $ - - 8,975 11,025 20,000
28 ASIAL Annual & Financial Report 2011
Past due not impaired $ - - 4,076 - 4,076
ABN 91 000 813 365
Not due not impaired $ 22,622 40,084 62,706
Notes to the financial statements 2010 <30 days 31-60 days 61-90 days >90 days
Gross amount $ 104,210 406,655 15,703 3,278 529,846
Past due and impaired $ - 11,000 15,703 3,278 29,981
Past due not impaired $ - - - - -
Not due not impaired $ 104,210 395,655 499,865
The company does not hold any financial assets whose terms have been renegotiated, but which would otherwise be past due or impaired. Receivables that are overdue and impaired are covered by the provision for impairment of $20,000. 8. OTHER ASSETS Current Prepayments 9. PROPERTY, PLANT & EQUIPMENT Freehold land and building â€“ at cost Less: accumulated deprecation Office equipment, furniture & fittings - at cost Less: accumulated depreciation Total Property, plant & equipment
2,224,559 (3,655) 2,220,904
2,224,559 (2,097) 2,222,462
355,635 (171,954) 183,681
297,818 (120,669) 177,149
A mortgage over the land and building has been fully paid off during the year (see note 11). Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Office Equipment Land and Building and Software Total 2010 $ $ $ Balance at the beginning of the year 2,224,020 144,617 2,368,637 Additions at cost - 89,896 89,896 Disposals - (9,130) (9,130) Depreciation expense (1,558) (48,234) (49,792) Carrying amount at end of year 2,222,462 177,149 2,399,611 2011 Balance at the beginning of the year Additions at cost Disposals Depreciation expense Carrying amount at end of year
ABN 91 000 813 365
2,222,462 - - (1,558) 2,220,904
177,149 57,817 - (51,285) 183,681
2,399,611 57,817 (52,843) 2,404,585
ASIAL Annual & Financial Report 2011 29
Notes to the financial statements Asset revaluations The freehold land and buildings were acquired in November 2008. The directors reviewed the property market for the area and are satisfied that the carrying value does not exceed the recoverable amount of land and buildings at 30 June 2011. 10. TRADE AND OTHER PAYABLES Current Trade payables Employee benefits (other than office holders) Other current payables Unearned income Events income Cablers registration Membership subscriptions Advertising Financial liabilities at amortised cost classified as trade and other payables 11. BORROWINGS Current Bank loan
104,904 27,460 79,119 211,483
191,488 24,034 112,726 328,248
71,763 209,965 980,576 818 1,263,122 1,474,605
73,801 205,424 1,300,061 9,232 1,588,518 1,916,766
Non-Current Bank loan
Total bank loan
The bank loan was secured by a first mortgage over the land and buildings. 12. PROVISIONS Current Provision for employee benefits Non-Current Provision for employee benefits Provision for employee benefits Balance at the beginning of the year Additional provision raised during the year Amounts used Balance at the end of the year 13. CENTRE FOR COMPLIANCE Current Movement in Centre for Compliance fund: Balance at 1 July 2010 Less: expenditure Balance at 30 June 2011
30 ASIAL Annual & Financial Report 2011
97,788 8,663 - 106,451
115,693 (17,905) 97,788
46,506 (15,802) 30,704
70,347 (23,841) 46,506
ABN 91 000 813 365
Notes to the financial statements
14. 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. 15. SEGMENT INFORMATION Segment locations The Company operates in one business and geographical segment being a not-for-profit industry association within the Security Industry throughout Australia. 16. CASH FLOW INFORMATION Reconciliation of the profit for the year with cash flow from operations: Profit/ (loss) after tax Non-cash items Depreciation (Decrease)/increase in employee provisions Loss on disposal of fixed assets Changes in assets and liabilities Decrease/ (increase) in trade receivables Decrease/ (increase) in other debtors Decrease/ (increase) in prepayments Increase/ (decrease) in trade payables Increase/(decrease) in other current payables Increase/ (decrease) in deferred income Increase/ (decrease) in income tax payable Net cash flow from operating activities
52,843 8,666 -
49,792 (17,908) 9,130
433,064 - 4,506 (86,584) (30,181) (325,395) (12,760) 252,258
(397,632) 24,580 (12,629) 107,517 107,514 1,143,502 16,857 1,064,542
17. RELATED PARTY TRANSACTIONS Any person having authority and responsibility for planning, directing and controlling the activities of the company, directly or indirectly, including any director (whether executive or otherwise) is considered key management personnel. Key management personnel compensation is detailed in Note 5. The directors do not receive any compensation from the company other than reimbursement of their travel expenses incurred as directors. Directors who are members of the company deal with the company on the same terms as all other members unless otherwise stated. 18. FINANCIAL RISK MANAGEMENT The companyâ€™s financial instruments consist of deposits with banks and accounts receivable and payable. The carrying amounts for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies in Note 1, are as follows: Note 2011 2010 Financial Assets $ $ Cash and cash equivalents 6 1,483,692 1,796,767 Receivables 7 66,782 499,846 Total Financial Assets 1,550,474 2,296,613 Financial Liabilities Financial liabilities at amortised cost Trade and other payables (excluding annual leave and deferred income) 10 Borrowings 11 Total Financial Liabilities
ABN 91 000 813 365
211,483 - 211,483
328,248 491,714 819,962
ASIAL Annual & Financial Report 2011 31
Notes to the financial statements Financial Risk Exposures and Management The main risks the company is exposed to through its financial instruments are credit risk, liquidity risk and market risk relating to interest rate risk. a. Credit Risk Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss for the company. The company’s material credit risk exposures are trade receivables and cash deposited with banks. The company’s exposure to credit risk arising from trade receivables is dealt with in Note 7. The company deposits cash only with government guaranteed Australian banks. Cash was with the following banks at the year end: Note ANZ ING Citibank Rabo Direct 6
2011 $ 199,484 725,978 279,130 279,100 1,483,692
2010 $ 141,408 1,655,359 1,796,767
b. Liquidity Risk Liquidity risk arises from the possibility that the company might encounter difficulty in settling its debts or otherwise meeting its obligations in relation to financial liabilities. The company manages this risk by preparing regular cash flow forecasts and managing credit risks. The table below reflects undiscounted financial liabilities and cash flows from financial assets that reflect management’s expectation as to the timing of realisation. Actual timing may therefore differ from that disclosed. Financial liability and financial asset maturity analysis Financial liabilities due for payment Trade and other payables Bank loan Total expected outflows Financial assets – cash flows realisable Cash and cash equivalents Trade, term and loans receivables Total anticipated inflows Net (outflow)/inflow on financial instruments
Within 1 Year 2011 2010 $ $ 197,891 315,303 - 36,424 197,891 351,727
1 to 5 Years 2011 2010 $ $ 13,592 12,945 - 182,116 13,592 195,061
Over 5 Years 2011 2010 $ $ - - - 273,175 - 273,175
66,782 499,846 978,853 2,283,868
2011 $ 211,483 - 211,483
Total 2010 $ 328,248 491,714 819,962
- 1,483,693 1,796,767
- 66,782 499,846 - 1,550,475 2,296,613
(273,175) 1,338,992 1,476,651
c. Market Risk Interest rate risk Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting period whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments.
32 ASIAL Annual & Financial Report 2011
ABN 91 000 813 365
Notes to the financial statements At the year end all cash deposited with Rabobank and Citibank (approximately 45% of cash on deposit) was at fixed interest rates and cash deposited with ING was at variable rates (approximately 55% of cash on deposit). Sensitivity Analysis
A 2% variation in interest rates during the year would have affected the profit before income tax for the year by
Net Fair Value Fair value estimation The fair values of financial assets and financial liabilities are considered to be equal to their carrying values as presented in the statement of financial position. 19. CAPITAL MANAGEMENT The directors control the capital of the entity to ensure that adequate cash flows are generated to fund its objectives. Risk management policies are approved and reviewed by the Board on a regular basis. These include credit risk policies and future cash flow requirements. The entity’s capital consists of retained earnings. A significant portion of the company’s net assets consists of cash and cash equivalents. Note Retained earnings Cash and cash equivalents 6
2011 $ 2,400,456 1,483,692
2010 $ 2,192,358 1,796,767
20. INFORMATION TO BE PROVIDED TO MEMBERS In accordance with the requirements of the Fair Work (Registered Organisations) Act 2009, the attention of members is drawn to the provisions of sub-sections (1), (2) and (3) of section 272 which reads as follows: (1) A member of a reporting unit, or the General Manager, may apply to the reporting unit for specified prescribed information in relation to the reporting unit to be made available to the person making the application. (2) The application must be in writing and must specify the period within which, and the manner in which, the information is to be made available. The period must not be less than 14 days after the application is given to the reporting unit. (3) A reporting unit must comply with an application made under subsection (1). 21. COMPANY DETAILS The registered office and principal place of business of the company is 41 Hume Street, Crows Nest NSW 2065.
ABN 91 000 813 365
ASIAL Annual & Financial Report 2011 33
34 ASIAL Annual & Financial Report 2011
ABN 91 000 813 365
We are the leading security association where membership is a mark of distinction and is valued by the members, public and government.
ABN 91 000 813 365
To support our members, promote standards and safeguard public interests.
ASIAL Annual & Financial Report 2011 35
Security Industry House 41 Hume Street, Crows Nest, NSW 2065 Tel: 02-8425 4300 â€˘ Fax: 02-8425 4343 Email: firstname.lastname@example.org â€˘ Web: www.asial.com.au
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