ASIAL Annual Report 2008

ANNUAL & FINANCIAL REPORT 2008

2008 ABN 91 000 813 365

VISION We are the is a

leading security association where membership

mark of distinction by the

and is

valued

members, public and government.

MISSION to

support our members, promote standards and

safeguard public interests.

Contents President’s Message ............................................................ 3 Secretary’s Report ................................................................ 5 The Year in Review ............................................................... 7 Local Reports ...................................................................... 12 Directors’ Profiles ............................................................... 14 Directors’ Report ................................................................ 16 Directors’ Declaration ....................................................... 18 Auditors’ Report ................................................................. 19 Income Statement ............................................................ 20 Balance Sheet ..................................................................... 21 Cash Flow Statement ....................................................... 22 Notes to the Financial Statements ............................... 23

Secretariat

President

Ged Byrnes

Chief Executive Officer

Bryan de Caires

Vice President

Fraser Duff

Manager, Membership

Tania Laird

Directors

Arthur Barker (part), Bob Bruce Peter Johnson, Kevin McDonald Tom Roche, Antony Elliott Chris Luhrmann (part)

Finance & Administration Officer

Fran Meem

Cabling & Compliance Officer

Richard Rolls

National Council (in addition to board)

Neville Kiely, Malcolm Wolfe Bill Whalley, Paul Corson

Marketing & Business Development Officer

Belinda Harris

Past President

Antony Elliott

Membership Marketing Officer

Belinda Allen

Auditors

Foster Raffan

Website & Database Co‑ordinator Nadine Keady

Solicitors/Attorney

Alexander & Associates

Acting Membership Officer

Alia Moroff

Membership Co‑ordinator

Aleisha Collis

Membership Assistant

Katrina Campbell

Membership Development Co‑ordinator

Laraine Sutton, QLD

Accounts Assistant

Vesna Kovac

Consultants Monitoring Centre Certification Inspection

ATSC

Industrial Relations

Chris Delaney

Special Consultant

Damien Smith

Regulatory Affairs Advisor (QLD) Terry Bennett

ASIAL Annual & Financial Report 2008

Board of Directors

1

ASIAL Annual & Financial Report 2008

“In 2009, the Association will mark its 40th anniversary - a major achievement.

From its humble beginnings in 1969, the Association has grown to become a professional and invaluable resource for the security industry.�

2

PRESIDENT’S MESSAGE

President’s

Message

It is my pleasure to introduce you to the Australian Security Industry Association’s 2008 Annual report. Over the year the Association has further consolidated its position as the industry’s premier national representative body and has enjoyed encouraging membership growth.

In preparing this report and revisiting the activities of the Association over the past year, I am reminded of the hundreds of voluntary hours provided by the various Branch Chairmen and their working group members, special interest group convenors and members, along with those representing the Association on the various security industry councils. These volunteers in partnership with our Secretariat are the foundation of our Association and continue to drive it forward.

As a result of prudent financial management and the continued strong financial performance of the Association over the period, your board has been able to recommend that membership fees remain unchanged for the 2008‑2009 year.

This is the second consecutive year that membership fees have been held steady, despite strong inflationary pressures.

During the course of the year we embarked on, for the first time, a national public awareness campaign designed to promote the use of ASIAL member companies and to reinforce the need for consumers to always use an appropriately licensed security provider.

At the time of writing, approximately 1,000 television and radio advertisements have been aired at a cost of over $250,000. The campaign has reached a national audience of more than 10 million across major metropolitan and regional areas.

So from Cairns to Launceston, Gympie to Bunbury, Wagga to Wollongong the ASIAL message is being spread.

The success of this industry marketing program will depend on continuity and an annual consumer awareness budget. To supplement this budget, a $50 marketing levy will be placed on each member for use solely on promoting the industry to consumers.

In 2007, as part of its investigation into organised crime, the Australian Crime Commission (ACC) released the publication Organised Crime in Australia. With organised crime estimated to cost the country in excess of $10 billion each year, the publication examines the emerging issues and trends relating to organised crime, how it affects the Australian community and the collective efforts being made by law enforcement agencies in disrupting and dismantling these criminal entities.

ASIAL Annual & Financial Report 2008

ongoing reinforcement. To ensure this happens, the Association has established

3

PRESIDENT’S MESSAGE

A strong and professional private security industry has become a critical component of Australia’s national security mix. As the peak security industry body, ASIAL has played a pivotal leadership role in helping to professionalise the industry through a range of initiatives such as the investment of more than $1 million on its compliance program and the launch of the Centre for Compliance.

ASIAL provided the ACC with the opportunity to address members across the country to assist in their review, along with promotional support of the initiative through the ASIAL web site, First Alert newsletter and Security Insider magazine.

Whether real or perceived, the opportunity for infiltration of the security industry by criminal elements is of genuine concern to the industry. The very inference damages the industry’s reputation and credibility.

It is hoped that a key outcome of the ACC investigation will be to substantiate and analyse the scope and extent of the problem facing the security industry from organised crime.

Once this has been completed, government and industry can work together to develop strategies to combat any

The acceptance and inclusion of approved industry associations as part of the regulatory mix is an encouraging development.

vulnerabilities identified to target‑harden the industry in

In 2009, the Association will mark its 40th anniversary ‑ a major

future years. In this regard, ASIAL stands willing at any time

achievement. From its humble beginnings in 1969, the

to provide input and assistance in the process.

Association has grown to become a professional and

“As the peak security industry body, ASIAL has played a pivotal leadership role in helping to professionalise the industry...”

invaluable resource for the security industry.

As we celebrate this milestone over the coming year, we will continue to provide representation for the industry and to provide you with an ever growing array of products and services to help your business grow.

Just as the Association has supported this initiative, it has also played a prominent leadership role through its

In closing I would like to give my thanks and gratitude for

participation on the various security industry councils

the continued contribution and effort exerted by the ASIAL

and advisory groups that have been established around

team led by CEO Bryan de Caires, my fellow directors,

the country.

Branch Chairmen special interest and working groups,

ASIAL Annual & Financial Report 2008

without whom the continued success and growth of this

4

Our Industry is controlled across Australia by a multitude

association would not be possible.

of Acts and Regulations, administered across six states and two territories by a variety of regulatory agencies.

The recent announcement by the Council of Australian Governments (COAG) to adopt a nationally‑consistent approach to the regulation of the industry is a pleasing development. The ongoing development in regulation and licensing schemes unfolding in the states is offering

Ged Byrnes

greater uniformity and consistency than ever before.

President

SECRETARY’S REPORT

Secretary’s

Membership breakdown by turnover at 30 2008 Membership breakdown by turnover atJune 30 June 2008

Income from the Association’s annual conference and dinner was $0 - 500,000 $0strong, - 500,000 whilst investment income rose 25%. Revenue from branch functions grew 83% for the year, whilst Security Insider $500,001 - $2.5- $2.5 million $500,001 million magazine continues to perform well. $2.5 $2.5 million - $20-million million $20 million

Report

The past year has been another busy and productive one for the Association. Through careful financial management our expenditure levels have been tightly controlled and contained.

As a result, I am pleased to advise that the Association generated a surplus of $12,551 for the year.

$20 million+ $20 million+ Associate Associate Individual Individual

The national consumer awareness campaign launched in September 2007 represented an investment of over $250,000 by the Association in its members. Further resources were invested in the Association’s national membership team to further expand and improve the services and benefits provided to members.

A significant investment has also been made to further enhance the Association’s website and electronic newsletter First Alert. The aim being to consolidate our online presence.

Growth in Reserves 1999-2008 Growth in Reserves 1999-2008 2,4002,400

Membership income remained steady, due primarily to the decision not to increase membership fees in line with CPI. However, revenue generated from new member aquisition grew by 66% compared with the previous year.

2,2002,200 2,0002,000 1,8001,800 1,6001,600 $ Dollars (000’s)

10001000

800 800

800 800

600 600

600 600

400 400

400 400

200 200

200 200

$ Dollars (000’s)

$ Dollars (000’s)

10001000

1,2001,200

20032003

20042004

20052005

20062006

20072007

20082008

Membership breakdown by turnover at 30 June 2008

$0 - 500,000 $500,001 - $2.5 million $2.5 million - $20 million $20 million+ Associate

19991999 20002000 20012001 20022002 20032003 20042004 20052005 20062006 20072007 20082008

The Association has a solid financial platform from which it can grow and expand. Looking forward, the Association is exploring the purchase of a building to house the Secretariat and to provide an additional revenue stream through tenanted office space.

I would like to acknowledge the support of the ASIAL Board and the Branch Chairmen over the past year. I would also like to recognise the contribution of ASIAL’s loyal Secretariat team for all of their hard work over the past year.

Individual

Bryan de Caires Secretary

ASIAL Annual & Financial Report 2008

1,2001,200

1,4001,400 $ Dollars (000’s)

Membership Revenue Growth 2003-2008 Membership Revenue Growth 2003-2008

5

ASIAL Annual & Financial Report 2008

6

“...the Association continues to play an active role in representing the interests of members through participation on security industry councils in NSW, VIC and WA, along with numerous industry liaison and advisory groups across all states and territories.�

THE YEAR IN REVIEW

The Year

in Review

The success of the Security 2007 Conference & Exhibition held in July marked the start of another productive year for the Association.

The event generated unprecedented media coverage and placed the industry firmly and squarely in the national spotlight.

Building on this, a major focus for the Association over the year was the launch of a national marketing awareness campaign. This is the first time that the Association has been in a position to fund and implement a national campaign to promote its members.

The extensive campaign featured broadcaster and journalist Bob Hughes, who has been on air in Sydney for 21 years, including commercial stations such as 2WS‑FM and 2‑Day‑FM and the ABC’s respected radio outlet 702AM. The adverts, aired in metropolitan and regional areas, urge consumers to always use appropriately licensed security personnel and to ensure that they were members of ASIAL. Among the television and radio stations to broadcast the adverts included: Television ‑ Channel 7, Channel 9, Prime Canberra and Southern Cross Hobart. Radio ‑ 2UE Sydney, 3AW Melbourne, 4BC/4BH Brisbane, 5AAA Adelaide, 6PR/6IX Perth, Heart FM Hobart, HOFM Hobart, Heart FM Launceston, 4CA Cairns, 4TO Townsville, 2WG Wagga Wagga, Star FM Dubbo, 3BG Bendigo, 6TZ Bunbury, Mix 104.9 Darwin, ZINC 96.1 Gympie, 2CA 105.3 Canberra, 2CC Canberra.

The adverts were also made available through the Association’s website.

Providing assistance to NSW members to comply with new classification requirements for licence holders; explaining the requirement for operators in Victoria to undertake Continuing Professional Development to meet their licensing requirements; informing members of their compliance implications under the Anti‑Money Laundering and Counter Terrorism Funding legislation administered by AUSTRAC; notifying security operators in Queensland of new provisions in the Security Providers Act which requires security equipment installers, security advisors and security firms to be licensed.

ASIAL Annual & Financial Report 2008

Another primary focus for the Association over the year under review has been its participation and input in the regulatory reform process taking place around the country. As each State and Territory conducts reviews of their respective regulatory regimes, we have been faced with amending legislation, new regulations and changed requirements. The Association has been kept busy over the year responding to members’ needs across the country. Some of the issues addressed include:

7

THE YEAR IN REVIEW

In addition, the Association continues to play an active role in representing the interests of members through participation on security industry councils in NSW, VIC and WA, along with numerous industry liaison and advisory groups across all states and territories. Through representation on various Australian Standards Committees and submissions to various government reviews, the Association has also made a significant contribution to the further development of industry standards.

The Association has held regular briefings with State and Territory Ministers, Shadow Ministers and industry regulators.

In addition, submissions have been provided in response to the QLD Regulatory Impact Statement relating to the Security Providers Act; the WA Security & Related Activities (Control) Amendment Bill 2007 and the Australian Crime Commission.

Rarely does a week go by when the Association is not approached by electronic or print media to make comment. This is important as it provides valuable exposure to the community, not only of the Association but also members.

As additional resources are directed to developing our public relations strategy, our aim is to maximise and better leverage media opportunities as they arise on your behalf.

ASIAL membership continues to consolidate as improved and more specific benefits and services are brought on stream.

Amongst some of the improvements made to services include:

ASIAL Annual & Financial Report 2008

Online jobs and careers resource ‑ in late 2007 ASIAL partnered with SEEK to launch a tailored jobs and careers resource for the security industry offering discounted rates for jobs posted through the ASIAL portal.

8

www.asial.com.au ‑ the ASIAL web site continues to establish itself as the authoritative online portal for the security industry in Australia. The site undergoes continual development and enhancement to ensure that it remains relevant and easy to use.

Online newsletters ‑ the Association’s monthly email newsletter, First Alert, has recently undergone a major makeover. As subscribers grow, the newsletter has become an increasingly important means of providing timely updates on issues of local and national importance.

Breakfast briefings ‑ the quarterly breakfast functions conducted by the Association continue to attract growing attendance levels, with more than 1500 participants attending functions over the past year.

Presenters have included The NSW Minister for Police, The Hon David Campbell, The Queensland Attorney General, The Hon Kerry Shine, representatives from the Australian Crime Commission, AUSTRAC, State and Territory Police Forces, industry regulators and government procurement officers. The briefings provide an excellent opportunity for members to be briefed face‑to‑face on a range of issues affecting their business.

Branch Working Groups and Special Interest Groups ‑ the strong support received from members on the various Branch Working Groups and Special Interest Groups reflects the passion and commitment of many of our members. These groups have continued to meet and contribute to the important work of the Association, participating on a range of issues, including code and protocol development, training requirements, local liaison groups and councils, and a variety of submissions.

THE YEAR IN REVIEW

Over the next 18 months additional studies will be published covering the regulation of the industry, public policing relationships, the legal powers of private security personnel and OH & S issues in the security industry.

Professional development Through the Centre for Compliance a range of tailored courses have been made available to members. These include Running a Business in the Private Security Industry and Electronic Security Project Management.

Whilst the uptake of participants undertaking ASIAL’s Continuing Professional Development (CPD) in Victoria has been slower than expected, there are signs that some momentum is now building with a growing number of enquiries and participants signing up.

Security Insider ‑ the Association’s bi‑monthly publication continues to go from strength to strength, providing members with articles on topical issues as well as providing a healthy financial return to the Association.

Publications ‑ a range of practical new member publications has been made available this year, these include: Fitness for Work template and online tutorial for employees and supervisors Security Officer’s notebook Installers’ OH & S plan Guarding/Patrol OH & S plan Recruitment Selection tools Performance Appraisal tools

As well as courses tailored specifically for the industry, members have access to a wide range of other subject areas, including communication skills, compliance and governance, front‑line management, IT and computing applications, managing people and business, procurement and contract management, project management, recruitment and performance management and self development. The sophisticated learning management system has the capacity to allocate, track and report on CPD points where this is a requirement for licensing purposes (such as in the case of Victoria).

ASIAL’s professional development program reflects the Association’s commitment to ongoing learning to improve the knowledge of licensed security practitioners. The Association is seeking to build on this and is currently exploring a number of certification initiatives across a range of activities.

Disciplinary Procedures tools

The 3‑year ARC‑funded benchmark research project conducted by Rick Sarre, Professor of Law & Criminal Justice, School of Commerce, University of South Australia and Professor Tim Prenzler, School of Criminology & Criminal Justice, Griffith University is progressing well.

Data has been collected from the Australian Bureau of Statistics and regulatory agencies which is being analysed in relation to growth patterns and dimensions of security industries in Australia. The first study to be published over the coming months will be the growth and trends in the security industry.

ASIAL Annual & Financial Report 2008

Research

9

THE YEAR IN REVIEW

Industrial Relations

Cabler Services

The industrial relations landscape has changed dramatically over the past year with the change of Federal government. ASIAL’s Industrial Relations advisory service provided through Chris Delaney has provided members with guidance during this period of change.

During the year, the total number of ASIAL registered cablers fell by 1.36% to 5,138 (30 June 2008). Over the corresponding period, the number of formerly transitional‑registered cablers upgrading to full registration with ASIAL increased from 996 to 1,003.

During the course of the year the Association has responded to more 3,000 member enquiries relating to industrial relations issues, represented members at over 45 State and Federal tribunal hearings and mentions, meetings with Unions, the Workplace Ombudsman, Department of Workplace Relations and the Workplace Authority. As we attempt to interpret new legislation and the effects this will have on our members, the role we provide will only grow.

Nationwide, cabling registrations across all registrars have experienced small declines or at best, only marginal growth. The Registrars have continued to express to the Australian Communications and Media Authority (ACMA) their concern at this persistent trend.

Over the past year we have seen: The implementation of a national industrial relations system bringing incorporated companies into the Federal system and leaving unincorporated companies in the state systems; Changes to minimum employment standards causing a wholesale change to the calculation of sick and annual leave entitlements; The abolition by the Rudd government of AWAs and the introduction of another ‘no disadvantage test’. Thousands of AWAs are yet to be assessed for fairness and most will fail ‑ creating huge exposure to underpayment of wages claims.

What we now face includes: Participation in Award Modernisation in an attempt to create one national award from the 20+ awards which regulate our industry’s workforce across Australia;

ASIAL Annual & Financial Report 2008

Changes to unfair dismissal laws affecting all employers, but directly affecting those with less than 100 employees and more than 15 employees;

10

The introduction of new national minimum employment standards affecting all employees; The prospect that States will hand over industrial relations responsibilities for unincorporated businesses to the federal system.

For its part, the ACMA has embarked on a review of the operation of the registration system, including the grace period applicable to renewals submitted after registration expiry deadlines. The ACMA has also begun an awareness program promoting the national cabling regulatory requirements, targeting architects, building designers and engineers, building owners and managers, and construction contractors such as electrical, data and security.

THE YEAR IN REVIEW

The past year has been another busy one for ASIAL’s National Electronic Security Special Interest Group, which is led by its convenor, Neville Kiely. Among the issues addressed include participation in the review and rewrite of AS 2201.1:2007; AS 2201.5:2008 and the review in progress of AS 2201.2:2004.

The group is also currently developing consumer Guideline documents covering the connection of smoke detectors to existing monitored electronic security systems and the compilation of a general information document re the entire AS 2201 Intruder Alarms Standard.

Significant effort has been invested in liaising with emergency service providers across the country with regard to alarm response policies and the development of a National Protocol for Vehicle Alert Escalation to Police.

The group has also provided input into minimum standards for CCTV surveillance in licensed clubs, hotels and related licensed premises in NSW and the South Australian Metropolitan Fire Service false fire alarm user‑pays policy.

Australian Communication and Electrical Alliance (ACEA) ACEA is a forum of industry participants established to provide a co‑ordinating role for cabling Standards and the advisory arm of the former Australian Communications Industry Forum (ACIF, now known as the Communications Alliance), with the practical operations of the five accredited registrars.

ACEA has taken on a number of roles including the Standards development work of the Cabling Advisory Group (CAG), previously with ACIF, and the brief of the former Cabling Industry Committee (CIC), of which ASIAL was a founding member, which has over a number of years worked to develop industry codes and a skills maintenance program for the cabling sector.

Earlier this year, ASIAL became a member of ACEA, and gained a place on the ACEA Board. An early activity for ASIAL in this role will be to assist in the development and implementation of the skills maintenance program, which is currently under consideration by ACMA as a mandatory initiative (tied to registration). Previously the CIC had negotiated unsuccessfully with ACMA to deliver the program as a voluntary endeavour.

Measures are also in train for registrars to begin recognising two new registration endorsements for the Open category.

Commonly known as ‘Cable Tester’ endorsements, these will be made available to registered cablers who supply documentary evidence of having completed an approved training course in the testing of Structured and Optical Fibre cabling installations. ASIAL intends to adopt the new endorsements as soon as practicable.

Disciplinary Matters ASIAL’s Disciplinary Committee met twice during the course of the year to address a range of issues and to put forward recommendations to the ASIAL Board for consideration.

ASIAL Annual & Financial Report 2008

Electronic

11

STATE AND TERRITORY UPDATE

State and Territory Update WA

Through the Alarm Response Working Group (of which ASIAL is a member), significant progress has been made with WA Police and other emergency services in developing a response to manage alarm response issues, including reducing the number of false alarms.

The Minister for Police, The Hon John Kobelcke announced the establishment of the WA Security Industry Advisory Council. ASIAL is represented on the Council through its branch Chair, Arthur Barker. The Council is working through a raft of issues, including an industry code of conduct.

South Australia

Through negotiations with the South Australian Metropolitan Fire Service, ASIAL worked through a number of issues relating to a change to procedures for privately monitored fire alarms.

This includes agreement by SAMFS to a transitional 3 month introductory period.

ASIAL has participated at bi‑annual Security Industry Consultation Group meetings organised by the Office of Business and Consumer Affairs.

ASIAL Annual & Financial Report 2008

Victoria

12

ASIAL through its President, Ged Byrnes has been an active participant on the Victorian Security Industry Advisory Council. ASIAL representatives have also provided leadership through participation on the various VSIAC sub‑committees.

ASIAL has continued to offer tailored professional development courses and materials for members in Victoria to meet their Continuing Professional Development requirements.

In late June the Association provided advertising and editorial support for the security careers supplement that appeared in the Herald Sun newspaper.

In September 2007, under the auspices of Reframing the Future (an initiative of the Council of Australian Governments), ASIAL provided support to the Effective Networking ‑ Industry Training Networks initiative.

STATE AND TERRITORY UPDATE

Queensland

ASIAL has played an active role in lobbying the Queensland government to ensure that changes to the Security Providers Act meet industry needs. The introduction of a broader licensing regime and the comprehensive probity checking of those working in the industry will mark a significant turning point for the security industry in Queensland.

ASIAL has conducted an extensive campaign to promote the new security licensing requirements in Queensland, including a direct mail and email campaign, printed A3 posters distributed to security wholesalers and suppliers, and hand outs on what the changes will mean.

ASIAL has been represented on numerous committees and interest groups, including the Police & Security Industry Advisory Committee.

During the year Terry Bennett, a former Group General Manager of Group 4 (now ISS) and former Chair of ASIAL’s Queensland Branch, took up the position of Regulatory Affairs Advisor for Queensland. The position provides the Association with a local representative who can liaise with government and unions on a range of industry issues.

New South Wales

After a wait of two years the Security Industry Regulation 2007 was released in August 2007.

Requirements included the need for all licensed operatives to re‑apply for their licence under revised categories and for additional training upgrades in specialist categories.

The introduction of the new licensing requirements has resulted in the suspension of over 7,500 licences and a reduction in the number of entrants into the Industry.

In September, the Minister for Police, The Hon David Campbell announced the re‑establishment of the NSW Security Industry Council with the appointment of 12 Council members. ASIAL is represented on the Council through its CEO.

The year has seen a strengthening of the relationship between the industry and the NSW Police which has enabled a more collaborative partnership to be developed.

ASIAL through the NSW ITAB has applied for the electronic security traineeship entry level requirement to be reduced to 16 years to allow year 10 entry. This is an important ASIAL initiative, designed to develop genuine training and career paths within this area of the Industry, is nearing fruition.

Australian Capital Territory Discussions have been held with the Australian Federal Police to develop a closer working relationship with the industry.

Tasmania

The Association has enjoyed improved interaction with the Tasmanian Police thanks to the participation of Inspector Michael Grant at our breakfast meetings.

The Association has approached the Police Commissioner requesting a representative from the security industry participate on the Crime Prevention and Community Safety Council.

ASIAL Annual & Financial Report 2008

13

DIRECTORS’ PROFILES

Directors’ Profiles Ged Byrnes ‑ President Ged is a Director of Protection Pacific Security, a Melbourne based company, which has been operating since 1992.The Company provides Security Services including Alarm installation, Access control, CCTV, guards and Patrols. The Company also operates its own 24‑hour Control Room.

Ged can draw from a broad range of experience across all facets of the industry and offer an understanding of issues that affect ASIAL Members. He has worked in the security industry for 26 years 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.

Fraser Duff ‑ Vice President Fraser is the Managing Director of Passmore Duff Pty Ltd a corporate risk management advisory and training company. The firm has been successfully operating since 1996 and has more recently been recognised for specializing in the development of interactive online safety and security e‑learning training programs, delivered under their international brand “CARM Training.”

ASIAL Annual & Financial Report 2008

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).

14

Fraser is also a counsellor on the main council of NSW Business Chamber formally known as Australian Business Limited (ABL).

Fraser has been a Director of ASIAL since 2000 at which time he established and chaired the National Training Committee for a period of 2 years. In 2002 he was elected to the position of ASIAL Honorary Secretary and since taking on that position established and chaired the ASIAL Investment and Finance Committee up until 2007.

At the 2006 ASIAL AGM Fraser was elected to the position of Vice President of the Association.

Bryan de Caires ‑ Chief Executive Officer & Secretary Bryan has over 20 years business management experience. His early career was as a senior editor with Euromoney Publication Plc ‑ the 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 (the national association representing human resource management professionals) as the national manager responsible for events and professional development. He joined ASIAL as Commercial Services Manager in March 2000. He was appointed Chief Executive Officer and Secretary in 2006.

Bryan holds a Bachelor of Honours degree and is also a Director of Crime Stoppers NSW.

Arthur Barker Arthur has over 28 years experience in providing electronic security in both military and civil applications. Formal training in electronics, explosive handling and disposal, computer programming, personnel management, standards implementation, and data communications as well as a long exposure to physical security provision at the highest levels, provides the experience for solid management and technical expertise.

As a hands‑on director, Arthur liaises directly with all players within the security industry including regulators and end users.

He oversees major projects as well as providing consulting expertise in the areas of monitoring solutions, electronic intruder detection systems, closed circuit television systems and personal or asset tracking systems. Arthur represents ASIAL on the West Australia Security Industry Advisory Council.

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 CIT (Cash in Transit Special Interest Group). 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.

DIRECTORS’ PROFILES

Antony Elliott

Kevin McDonald

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 20 years.

Kevin has been involved in the security industry for over 26 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 NSW General Manager for the Signature Security Group.

Peter Johnson

Tom Roche

Peter Johnson is a security professional of over 30 years standing and a past member of the Victoria Police for 16 years.

Peter brings experience within the Security and associated industries having gained broad industry and commercial experience through holding senior management roles in both the private and public sectors. Throughout his career, Peter has had extensive training and significant involvement in operational management, personnel management, staff assessment, risk management, investigations, training and recruitment.

Peter’s qualifications include: Advanced Diploma in Security (Risk Management), Certificate IV in Workplace Training & Assessing, and Certificate IV in Investigative Services.

Before joining the private sector, Peter was the Officer in Charge Crime Scene Section at the Victorian Police Forensic Science Laboratory, specialising in the collection, examination and evidence presentation for major criminal investigations. During his sixteen and a half years with the Police service, Peter also performed duties within the Communication and Prosecution Divisions and gained considerable experience whilst attached to the Coroner’s Office as Coroner’s Assistant.

Kevin is currently the New South Wales Branch Chairman, a position he has held since 2000, and is a member of the National Electronic Security Group. Kevin is a licensed security consultant and has a Diploma in Marketing Management.

Tom is the Managing Director of SNP Security, a fourth generation family business, established in 1923, and the largest privately owned security company in Australia.

Tom has worked in the security industry for over 20 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 2002/03 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.

Chris is the founder and principal of SIA Security. He has 20 years’ experience in Law Enforcement and the private security and investigation industries. He has served with the New South Wales and Queensland Police Services, holding positions as an investigator, intelligence analyst/officer, officer in charge and team leader in both local and specialist squads. Since 1990, he has been involved in specialist weapons and tactical 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.

He is Chairman of ASIAL’s Queensland Branch, a position he has held since 2006.

ASIAL Annual & Financial Report 2008

Christopher Luhrmann

15

DIRECTORS’ REPORT

Directors’ Report Your directors submit this report for the year ended 30 June 2008. 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 in the Annual Report.

Director Arthur Barker (ceased 7 March 2008) Robert Bruce Ged Byrnes Fraser Duff Antony Elliott Peter Johnson Christopher Luhrmann (appointed 8 March 2008) Kevin McDonald Thomas Roche

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.

The significant fall in gross overall revenue from last year can be explained by the sale of the exhibition and the loss of revenue from exhibition stand sales. When the revenue generated from the exhibition is excluded, income from all other activities was up just over 7% for the year.

Total expenses for the year rose 7.4%, a key component of this increase was the $250,000 investment in the national awareness campaign.

Significant Changes In The State Of Affairs No significant change in the state of affairs of the Company occurred during the financial year.

Significant Events After Balance Date

The principal activity of the Company during the financial year was as an Industry Association within the Australian Security Industry.

No significant events have taken place after the balance date.

No significant change in the nature of this activity occurred during the year.

The Directors have budgeted on a small surplus for the coming year. Depending on the results of non‑mutual activities, tax may again be payable.

The company employed 12 employees as at 30 June 2008 (2007: 13 employees).

Operating Results For The Period And Review Of Operations ASIAL Annual & Financial Report 2008

An ongoing priority over the past year has been the resolution of long‑standing compliance issues involving ASIAL members.

This has resulted in a number of members being terminated or expelled from the Association.

Nature Of Operations And Principal Activities

Employees

16

Over the past year continued improvements have been made to the Association’s communications channels. This included a major overhaul of the ASIAL web site and further enhancements to the electronic newsletter service, First Alert.

Additionally, resources have been directed towards local branch functions which has resulted in improved levels of attendance and participation by members.

The Association earned a net surplus for the year of $12,551 (2007: $1,455,891). The Association’s reserves rose to $2,113,415.

The Association remains committed to its policy of reinvesting a significant proportion of prior year surpluses into improving services to members nationally and promoting the use of member companies by consumers, whilst directing the balance in building reserves for when they are needed.

The investment of $250,000 on the national consumer awareness campaign is evidence of this.

Australian Security Industry Association Limited ABN 91 000 813 365

Likely Developments And Expected Results

Over the coming year the Association will explore the possibility of purchasing a property to accommodate the needs of the Secretariat and to provide an ongoing revenue stream from tenants.

The Association is planning to build on the consumer awareness program launched in 2007, to further consolidate the message to always use a licensed security professional, and to ensure that they are a member of the Association.

Ongoing support as an industry partner will be provided to the benchmark research into our industry, which will conclude over the next year.

Compliance continues to be a key focus for the Association, with a range of initiatives planned. The balance in the fund established for the Centre of Compliance is expected to be sufficient to cover this. The Association continues to benefit from the support of AON and Liberty in raising standards and the compliance monitoring of members.

DIRECTORS’ REPORT

The Association’s obligations under State legislation for compliance and continuing professional development have been provided for in the budget.

Director

Attendance at Board meetings

Arthur Barker

3 (4)

Bob Bruce

6 (6)

The Association is exploring opportunities to develop industry certification and assessment schemes across a range of sectors to further raise levels of professionalism.

Ged Byrnes

6 (6)

Fraser Duff

6 (6)

Antony Elliott

6 (6)

Indemnification And Insurance Of Directors And Officers

Peter Johnson

6 (6)

Chris Luhrmann

1 (2)

Kevin McDonald

6 (6)

Tom Roche

5 (6)

National Council

Attendance at Council meetings

Arthur Barker

2 (2)

Bob Bruce

2 (2)

Ged Byrnes

2 (2)

Paul Corson

1 (2)

Fraser Duff

0 (2)

Antony Elliott

2 (2)

Peter Johnson

2 (2)

Neville Kiely

1 (2)

Chris Luhrmann

2 (2)

Kevin McDonald

2 (2)

Tom Roche

2 (2)

Bill Whalley

1 (2)

Malcolm Wolfe

1 (2)

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 $6,140, 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.

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

A copy of the auditors’ independence declaration, as required under section 307C of the Corporations Act 2001, is set out on page 18.

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

Directors’ Emoluments And Transactions

No Director has received or become entitled to receive, during or since the end of financial year, a benefit because of a contract made by the company or a related body corporate with the director, a firm of which a director is a member or an entity in which a director has a substantial financial interest.

Ged Byrnes Director

Fraser Duff Director

Crows Nest, 22nd July, 2008

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.

Australian Security Industry Association Limited ABN 91 000 813 365

ASIAL Annual & Financial Report 2008

No emoluments have been received or are due and receivable

by Directors from the company or any related body corporate.

17

DIRECTORS’ DECLARATION

Directors’ Declaration 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 28 are in accordance with the Corporations Act 2001 and: (i) comply with Accounting Standards and the Corporations Regulations 2001; and (ii) give a true and fair view of the company’s financial position as at 30 June 2008 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.

On behalf of the Board

Ged Byrnes Director

Fraser Duff Director

Crows Nest, 22nd July, 2008

Auditor’s Independence Declaration I declare, to the best of my knowledge and belief that during the year ended 30 June 2008 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

ASIAL Annual & Financial Report 2008

Chartered Accountants

18

G.D.D. Raffan Partner North Sydney, 22nd July, 2008

Australian Security Industry Association Limited ABN 91 000 813 365

AUDITORS’ REPORT

Independent Auditors’ Report to Members Report on the Financial Report We have audited the accompanying financial report of the Australian Security Industry Association Limited which comprises the balance sheet as at 30 June 2008 and the income statement, statement of changes in equity and cash flow statement for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the directors’ declaration.

The directors of the company are responsible for the preparation and fair presentation of the financial report and have determined that the accounting policies described in Note 1 to the financial statements, which form part of the financial report, are appropriate to meet the requirements of the Corporations Act 2001 and are appropriate to meet the needs of the members. The directors’ responsibility also includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

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 whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report.

The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

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 the Australian Security Industry Association Limited is in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the company’s financial position as at 30 June 2008 and of its performance for the year ended on that date; and (b) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001.

ASIAL Annual & Financial Report 2008

Foster Raffan Chartered Accountants

G.D.D. Raffan Partner Level 6, 8 West Street, North Sydney NSW 2060 22nd July, 2008 Australian Security Industry Association Limited ABN 91 000 813 365

19

INCOME STATEMENT

Income Statement for the year ended 30 June 2008 Note

2008 $

2007 $

2,407,300

3,005,049

‑

1,171,689

(623,746)

(965,600)

Salaries and related costs

(835,105)

(808,692)

Overhead expenses

(893,206)

(799,860)

REVENUE Ordinary activities

2

Sale of annual exhibition Expenses directly related to operating activities (excluding salaries)

PROFIT/ (LOSS) BEFORE INCOME TAX EXPENSE

3

55,243

1,602,586

Income tax expense

4

(42,692)

(146,695)

12,551

1,455,891

NET PROFIT/ (LOSS)

ASIAL Annual & Financial Report 2008

The accompanying notes form part of these financial statements.

20

Australian Security Industry Association Limited ABN 91 000 813 365

BALANCE SHEET

Balance Sheet as at 30 June 2008 Notes

2008 $

2007 $

CURRENT ASSETS Cash and cash equivalents

7

2,721,928

2,818,245

Trade and other receivables

8

115,142

117,700

Other

9

74,403

204,247

2,911,473

3,140,192

52,621

56,491

2,964,094

3,196,683

TOTAL CURRENT ASSETS NON‑CURRENT ASSETS Office equipment

10

TOTAL ASSETS CURRENT LIABILITIES Trade and other payables

11

605,604

768,028

Provisions

12

108,368

195,509

Centre for Compliance fund

13

88,484

100,375

802,456

1,063,912

48,223

31,907

850,679

1,095,819

2,113,415

2,100,864

2,113,415

2,100,864

2,113,415

2,100,864

TOTAL CURRENT LIABILITIES NON CURRENT LIABILITIES Provisions

12

TOTAL LIABILITIES NET ASSETS EQUITY Retained profits

TOTAL EQUITY

14

RETAINED PROFITS AT 1 JULY 2007 NET PROFIT RETAINED PROFITS AT 30 JUNE 2008

2,100,864

644,973

12,551

1,455,891

2,113,415

2,100,864

The accompanying notes form part of these financial statements.

Australian Security Industry Association Limited ABN 91 000 813 365

ASIAL Annual & Financial Report 2008

Statement of Changes in Equity for the year ended 30 June 2008

21

CASH FLOW STATEMENT

Cash Flow Statement for the year ended 30 June 2008 Notes

2008 $

2007 $

2,054,085

2,478,859

(2,333,556)

(2,539,053)

(279,471)

(60,194)

‑

1,171,689

Purchase/disposal of plant & equipment

(19,939)

(30,764)

Interest and dividend received

209,821

168,214

5,163

‑

195,045

1,309,139

Centre for Compliance

(11,891)

(99,625)

NET INCREASE/ (DECREASE) IN CASH HELD

(96,317)

1,149,320

2,818,245

1,668,925

2,721,928

2,818,245

CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from members & others Payments to suppliers & employees

NET CASH FLOWS FROM OPERATING ACTIVITIES

17

CASH FLOWS FROM INVESTING ACTIVITIES: Sale of National Exhibition

Purchase/disposal of shares

NET CASH FLOWS FROM INVESTING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIES:

Cash ‑ 1 July 2007

CASH ‑ 30 JUNE 2008

ASIAL Annual & Financial Report 2008

The accompanying notes form part of these financial statements.

22

Australian Security Industry Association Limited ABN 91 000 813 365

7

NOTES TO THE FINANCIAL STATEMENTS

Notes to the Financial Statements for the year ended 30 June 2008 1. Statement Of Significant Accounting Policies

The financial report is a general purpose financial report that has been prepared in accordance with Accounting Standards, Urgent Issues Group Interpretations, other authoritative pronouncements of the Accounting Standards Board and the Corporations Act 2001.

The following is a summary of the material accounting policies adopted by the company in the preparation of the financial report. The accounting policies have been consistently applied unless otherwise stated.

Reporting Basis and Conventions

The financial report has been prepared on the accruals basis and in accordance with the historical cost convention and does not take into account changing money values or, except where stated, current valuations of non‑current assets.

Cost is based on the fair values of the consideration given in exchange for assets.

Accounting Policies (a) Revenue Recognition

Members’ and other subscriptions or fees are accounted for when invoiced and taken to profit in equal quarterly 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 accounted for when invoiced. Income in respect of special events / functions is accounted for when received.

Income received and expenses incurred in advance of activities are carried in the balance sheet as unearned income and prepayments respectively until the relevant activity is completed, when all the profit is taken up. If a loss is expected, a provision for the likely loss is made as soon as it becomes apparent.

Costs of developing new services are expensed as incurred.

The charge for current income tax expenses is based on the profit from non‑mutual activities for the year adjusted for any non‑assessable or disallowed items. It is calculated using tax rates that have been enacted or are substantively enacted by the balance sheet date.

Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the income statement except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.

Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the economic entity will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

(c) 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 balance sheet.

Australian Security Industry Association Limited ABN 91 000 813 365

ASIAL Annual & Financial Report 2008

(b) Income Tax

23

NOTES TO THE FINANCIAL STATEMENTS

Notes to the Financial Statements for the year ended 30 June 2008 (cont.) (d) Trade and other receivables

Trade receivables are recognised and carried at original invoice amount less a provision for any uncollectible debts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written‑off as incurred.

(e) Office Equipment

Office equipment is valued at its cost and reduced by depreciation.

Depreciation is calculated on the straight line basis over the useful lives of the assets to the company. The rates used are 11.25% to 50%.

(f)

Leases

Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and benefits incidental to ownership.

Operating Leases

The minimum lease payments of operating leases, where the lessor effectively retains substantially all of the risks and benefits of ownership of the leased item, are recognised as an expense on a straight‑line basis.

Finance Leases

Leases which effectively transfer substantially all of the risks and benefits incidental to ownership of the leased item to the company are capitalised at the present value of the minimum lease payments and disclosed as assets under lease. A lease liability of equal value is recognised

Capitalised lease assets are amortised over the shorter of the estimated useful life of the assets and the lease term.

Minimum lease payments are allocated between interest expense and reduction of the lease liability with the interest expense calculated using the interest rate implicit in the lease and charged directly to the Income Statement.

The cost of improvements to or on leasehold property is capitalised, disclosed as leasehold improvements, and amortised over the unexpired period of the lease or the estimated useful lives of the improvements, whichever is the shorter.

(g) Trade and other payables

Liabilities for trade creditors and other amounts are carried at cost, which is the fair value of the consideration to be paid in the future for goods and services received, whether or not billed to the company.

ASIAL Annual & Financial Report 2008

(h) Employee entitlements

24

Provision is made for employee entitlement benefits accumulated as a result of employees rendering services up to the reporting date. These benefits include wages and salaries, annual leave and long service leave.

Liabilities arising in respect of wages and salaries, annual leave and any other employee entitlements expected to be settled within twelve months of the reporting date are measured at their nominal amounts. All other employee entitlement liabilities are measured at the present value of the estimated future cash outflow to be made in respect of services provided by employees up to the reporting date. In determining the present value of future cash outflows, the interest rates attaching to government guaranteed securities, which have terms to maturity approximating the terms of the related liability, are used.

(i)

Provisions

Provisions are recognised when the company 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.

(j)

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. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST.

(k) Comparative Figures

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

Australian Security Industry Association Limited ABN 91 000 813 365

NOTES TO THE FINANCIAL STATEMENTS

Notes to the Financial Statements for the year ended 30 June 2008 (cont.)

2.

2008 $

2007 $

1,170,192 484,886 126,234 224,478 52,956 47,780 50,000 2,800 38,153 2,197,479

1,092,044 1,232,359 130,292 234,321 28,948 35,549 45,091 18,068 20,163 2,836,835

209,596 225 209,821 2,407,300

167,415 799 168,214 3,005,049

19,416 74,138 (2,012)

20,125 69,715 22,801

Revenue Revenue from operating activities Members’ subscriptions Exhibition, conference and seminars Cabling providers registrations Magazine Branch meetings Grading, seminars and workshops Insurance support Consultancy Miscellaneous income Total revenue from operating activities

Revenue from investment activities Interest Dividend Total revenue from non‑operating activities

Total revenue from ordinary activities

Profit Before Income Tax Expenses Depreciation of equipment Rent expense on operating lease ‑ minimum lease payments Bad and doubtful trade debtors

4.

Tax Expense The prima facie tax at 30% (2007: 30%) on 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 16,573 480,776 Tax effect of permanent differences: Prima facie tax on profit / (loss) from mutual activities 53,771 10,305 Capital profit not subject to income tax ‑ (175,241) Recoupment of prior year losses previously not brought to account ‑ (185,193) Over provision for income tax in prior year (30,024) Deferred tax asset not recognised 2,372 16,048 Tax expense 42,692 146,695 The components of tax expense comprise: Current tax 72,716 331,888 Recoupment of prior year losses ‑ (185,193) Over provision for income tax in prior year (30,024) 42,692 146,695 A deferred tax asset of $39,536 (including $37,164 relating to prior years) has not been recognised as it is not probable that future profits will be available against which temporary deductible differences can be utilised.

5.

Key Management Personnel Compensation Short term benefits ‑ Salary ‑ Superannuation Total

219,456 19,489 238,945

187,235 13,837 201,072

Australian Security Industry Association Limited ABN 91 000 813 365

ASIAL Annual & Financial Report 2008

3.

25

NOTES TO THE FINANCIAL STATEMENTS

Notes to the Financial Statements for the year ended 30 June 2008 (cont.)

6.

2007 $

14,500 2,100 7,500 11,440 35,540

16,800 2,100 7,500 15,530 41,930

55,455 2,666,473 2,721,928

30,326 2,787,919 2,818,245

Auditor’s Remuneration Remuneration of the auditors for: ‑ audit of the financial report ‑ review of cabling registrar activity ‑ review of the quarterly management accounts ‑ taxation and other services

7.

2008 $

Cash And Cash Equivalents Cash at bank and on hand Short‑term bank deposits

The landlord has a lien over a short term bank deposit of $15,987 (2007: $15,987) in respect of the premises.

8.

Trade And Other Receivables ‑ Current Trade debtors Less: provision for doubtful debts GST receivable

9.

121,702 (30,000) 91,702 23,440 115,142

130,200 (30,000) 100,200 17,500 117,700

74,403

204,247

171,485 (118,864) 52,621

153,696 (97,205) 56,491

129,398 196,996 91,605 57,416 113,351 16,838 605,604

338,493 197,035 61,774 26,991 122,076 21,659 768,028

46,900 61,468 108,368

48,814 146,695 195,509

48,223

31,907

Other Assets ‑ Current Prepayments

10. Office Equipment Office equipment ‑ at cost Less: accumulated depreciation

ASIAL Annual & Financial Report 2008

11. Trade And Other Payables ‑ Current

26

Unearned income ‑ Events income Cablers registration Membership subscriptions Advertising Trade payables Sundry payables and accrued expenses

12. Provisions Current Provision for staff entitlement Provision for income tax

Non‑Current Provision for staff entitlement

Australian Security Industry Association Limited ABN 91 000 813 365

NOTES TO THE FINANCIAL STATEMENTS

Notes to the Financial Statements for the year ended 30 June 2008 (cont.)

2008 $

2007 $

100,375 ‑ (11,891) 88,484

200,000 ‑ (99,625) 100,375

13. Centre For Compliance Movement in Centre for Compliance fund: Balance at 1 July 2007 Contribution received Less: expenditure Balance at 30 June 2008

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. Lease Commitments Operating lease ‑ premises Payable ‑ minimum lease payments ‑ not later than 6 months

35,688

35,688

The company is required to give 6 months’ notice to vacate the premises.

16. 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.

17. Cash Flow Information Reconciliation of the profit from ordinary activities after tax to the net cash flows from operating activities Profit / (loss) from ordinary activities after tax

12,551

1,455,891

(209,821) (771) ‑

(168,214) ‑ (1,171,689)

19,416 14,403 ‑

20,125 (9,506) 10,000

129,844 (148,878) (13,546) 8,498 (5,940) (85,227) (279,471)

7,822 (312,876) 1,646 (55,100) 15,012 146,695 (60,194)

Investment activity Interest and dividend Sale of assets & shares Sale of annual exhibition

Non‑cash items Depreciation of non‑current assets (Decrease) /increase in employee provisions (Decrease) /increase in bad debt provision Decrease / (increase) in prepayments Increase / (decrease) in receipts in advance Increase / (decrease) in trade creditors Decrease / (increase) in trade receivables Decrease / (increase) in other debtors Increase / (decrease) in income tax provision

Net cash flow from operating activities

Australian Security Industry Association Limited ABN 91 000 813 365

ASIAL Annual & Financial Report 2008

Changes in assets and liabilities

27

NOTES TO THE FINANCIAL STATEMENTS

Notes to the Financial Statements for the year ended 30 June 2008 (cont.)

18. Related Party Disclosures It is the nature of the organisation to elect directors who are also members of the organisation.

These directors deal with the company on the same terms as all other members and do not receive any remuneration.

19. Interest Rate Risk Exposures The company’s exposure to interest rate risks and the effective interest rates of financial assets and liabilities, both recognised and unrecognised, at the balance date are as follows:

Financial Instruments

Floating interest rate

Fixed interest rate maturing in 1 year or less

Non Interest bearing

Total

Cash

‑

2,666,473

55,455

2,721,928

Trade and Other receivables

‑

‑

91,702

91,702

‑

2,666,473

147,157

2,813,630

‑

7.2%

N/A

Trade creditors

‑

‑

130,189

130,189

Other creditors

‑

‑

475,415

475,415

‑

‑

605,604

605,604

‑

‑

N/A

Cash

‑

2,787,919

30,326

2,818,245

Trade and Other receivables

‑

‑

100,200

100,200

‑

2,787,919

130,526

2,918,445

‑

6.35%

N/A

Trade creditors

‑

‑

140,335

140,335

Other creditors

‑

‑

624,293

624,293

‑

‑

764,628

764,628

‑

‑

N/A

2008 (i) Financial assets

Weighted average Effective interest rate

(ii) Financial liabilities

Weighted average Effective interest rate

2007 (i) Financial assets

Weighted average Effective interest rate

ASIAL Annual & Financial Report 2008

(ii) Financial liabilities

28

Weighted average Effective interest rate

20. Company Details

The registered office and principal place of business of the company is Suite 306, Lawson House, 10‑12 Clarke Street, Crows Nest NSW 2065

Australian Security Industry Association Limited ABN 91 000 813 365

ASIAL Professional Code of Conduct

1.

Members shall conduct their professional activities with respect for the public interest.

2.

Members shall at all times act with integrity in dealing with clients or employees, past and present, with their fellow members and with the general public.

3.

Members shall not intentionally disseminate false or misleading information, whether written, spoken or implied, nor conceal any relevant fact. They 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

3656 Designed and Produced by RDA Creative www.rda.com.au

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.

If a member has evidence that another member has been guilty of unethical practices, it shall be their duty to inform the Association.

8.

Members shall help to improve the body of knowledge of the profession by exchanging information and experience with fellow members and by applying their special skill and training for the benefit of others.

9.

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.

10. Members shall cooperate with fellow members in upholding and enforcing the code.

Your mark of distinction Australian Security Industry Association ABN 91 000 813 365

National Secretariat PO Box 1338, Crows Nest NSW 1585 Phone: (02) 8425 4300 Fax: (02) 8425 4343 Email: security@asial.com.au

www.asial.com.au