Our Support | Your Confidence
Annual Report 2020
Annual Report 2020 | 1
2 | Annual Report 2020
Contents 04
President’s Report
06
CEO’s Report
08
Audit and Risk Committee’s Report
10
Financial Statements
44
Regions
46
Committees
Annual Report 2020 | 3
A President’s Report Dr Anthony Coxon
s I reflect on 2020, I can’t help but feel a tinge of satisfaction at our achievements, mixed with the realisation that there is still so much more to be done. This hasn’t been an easy year with COVID-19 dominating the health landscape. We have all been affected by the pandemic in some way, particularly Melbourne-based chiropractors. While there has been plenty of fear, frustration and anxiety, there is a growing comfort that, ‘this too shall pass.’ As we look forward to our economy and communities opening, it feels very much like a metaphor for the chiropractic profession. The best thing we can do is care for our patients and there is a feeling that the ‘chiropractic summer’ is just around the corner. SAFER CARE VICTORIA Through 2019 the advocacy of the ACA was evident, with face-to-face meetings with all the heads of federal and state health or their senior advisors, in the lead up to the Council of Australian Governments (COAG) in November. The only exception being the Victorian Minister of Health, Jenny Mikakos. From COAG the matter was passed on to the Australian Health Ministers Advisory Council (AHMAC) in December. While this issue is not over, we viewed this development as a small win for the profession. The next steps will include the development of an Australianbased Best Practice Consensus for chiropractic paediatric care. This will not only give guidance to practitioners, but confidence to stakeholders and provide a platform for the eventual lifting of the CBA interim restriction. The ACA have had encouraging discussions with the College of Chiropractic Paediatrics (CCP) regarding merging
4 | Annual Report 2020
CCP into ACA. Such a union would combine CCP’s wealth of paediatric knowledge and professional connection with the administrative and advocacy support of the ACA. We are hopeful this will progress in 2021. COVID-19 2020 will forever be remembered as the year of COVID-19. However, through this adversity, the value of ACA membership has shone through. As with Safer Care Victoria, it was our goal to ensure members received ongoing, accurate and timely information. The rapidly unfolding situation provided an environment for confusion and misinformation, as evident on many social media channels. The feedback from membership suggested our regular emails gave you a level of comfort during this difficult time. Most impressive was the seamless move of ACA staff to remote/home working. While no-one anticipated a global pandemic, we previously had in place a mitigation strategy should we lose access to our Parramatta headquarters. This risk mitigation meant that member services continued to be delivered at the same high standard, despite the different working environment. BALANCED BUDGET This financial year will see the ACA return a surplus of $677,196. Discounting income from the restructure transfers this amount to $20,463. A solid 2020 financial year combined with a very good start with 2021 subscriptions, has given the Board a great deal of confidence to move forward with some of the big projects planned for the next 12 months. This should see the value of ACA membership significantly improved.
CONSIDER A CHIRO
STRATEGIC DIRECTION
After a few false starts, Consider a Chiro had its public launch during Spinal Health Week (SHW) in August. SHW was initially moved from May in the hope of avoiding lockdowns and our message being lost with the intense media coverage of COVID-19. In the end this did not work out for Melbourne with Stage 4 restrictions, however the national media coverage we achieved was extensive. This showed we were on the right track with our messaging to increase the reputational standing of the profession.
Our direction has a focus of inclusiveness, professionalism and patient-centred care. These are attributes we feel are important to all ethical chiropractors, regardless of practice style or philosophical viewpoint. We strive to be the leaders in the areas of spinal healthcare and that through our actions, ‘More Australians value and experience chiropractic care for their health and wellbeing.’
Consider a Chiro will be the platform for our media, marketing and advocacy for the next three to five years. I would like to acknowledge the work of the Public Engagement Committee, the ACA Marketing & Communications team and our public relations partner OPR, for developing such an effective campaign.
Ultimately, we see the ACA representing the centre 80% of chiropractors. Our growth has been encouraging, but we still have a long way to go. UPCOMING BIG PROJECTS Looking forward, we see the following projects as our focus for the next 12 months: • Major update of our IT platform to improve member engagement. • Continued rollout of
Consider a Chiro – with a focus on drawing the public to ACA chiropractors. • Expansion and further development of the Australasian Institute of Chiropractic Education (AICE). • Australian based Best Practice Consensus for paediatric chiropractic care. • Development of the Australian Chiropractic Education and Research Foundation (ACERF). I would like to take this opportunity to thank the ACA Board, the ACA staff and the many volunteer chiropractors who contribute their time and expertise for the betterment of the ACA. We are, first and foremost a membership organisation and your continued support and engagement is greatly appreciated. We will continue to do our best to serve ACA chiropractors and positively contribute to the betterment of health for all Australians.
Annual Report 2020 | 5
or misinterpret this direction, however our actions are about improving reputation and utilisation of chiropractors.
CEO’s Report Dr Matthew Fisher
P
reparing our Annual Report enables a time for reflection on past events and learning from it, if it improves what we do into the future. The ACA has been on this journey for some time and we keep learning from experiences and move forward. When I look at some of our key markers of achievement over the past financial year they include: • Membership growth of 10%. • Satisfaction measures above 85%. • High engagement with membership through electronic platforms. • Demonstrated effectiveness in advocacy. • Improved relationships with policy makers and regulators. • Growth in positive media stories. • Our Reconciliation Action Plan. Our direction is based on inclusiveness, professionalism in action and tolerance with boundaries; public interest and public benefit is at the core. It appears that some people in the profession either misunderstand
6 | Annual Report 2020
When reviewing the key matters that have ‘consumed’ the ACA from July 2019 to June 2020, the major topics were not surprising: Safer Care Victoria and COAG Health Council advocacy; COVID-19 advocacy and communications; continuing with our directions, evolution, and performance; our Reconciliation Action Plan; Consider a Chiro and AICE. As I said, our intent is to improve the reputation and standing of chiropractors in Australia and to ultimately achieve the outcome that more Australians experience and value the care provided by ACA chiropractors. Of course, this needs to be done within the boundaries set by National Law as it pertains to regulated health services as the ACA is captured by the legislation. Therefore, we give considered thought and engage partners, whether legal or PR, to assist us with achieving the
outcome on your behalf. A few facts I would also like to place on record about the ACA: 1. The ACA is the largest funder of capacity building in tertiary education, postgraduate and undergraduate scholarships, and research projects in Australia with over $400,000 in the past two years and a total of over $2.3 million in the past 11 years – this is identifiable in our annual accounts. 2. The ACA has commissioned two research summary reviews of evidence to guide practice – the first in 2016 and are about to release the revision this year. This was done to enable practitioners to better understand where evidence stands in both quality and quantity plus to guide where we may further invest. 3. The ACA has an extensive CPD library available to members and continues to build upon this plus the advent of AICE and advanced learning pathways will further enhance
this. 4. The ACA is the only publicly active defender and promoter of the profession in Australia and we will continue to do so in a credible and appropriate manner. 5. Our insurance partner, Guild Insurance and its law firm, Meridian lawyers, are the acknowledged leading groups in this area and are very active in working with the ACA to give you greater comfort and certainty in practice. The adage that people would prefer to be on Qantas than an alternative when there is a problem, rings a bell here. 6. The ACA HR Service through Wentworth Advantage supported on average 5% of the membership in any given month during the past year – it is the only service available to chiropractors. The rolling total demonstrates a great adoption and utilisation by members because of its relevance.
TWO-YEAR REVIEW OF PROGRESS FROM RESTRUCTURE WHICH TOOK EFFECT 1 JULY 2018 In the proposal that went to members in 2017, the following was stated as the advantages in a restructure to create: • a single voice in advocacy; • better services to members; • increased operational effectiveness; • greater economies of scale; • portability of membership; • unity in message; • uniform delivery of member benefits Australia wide with consistency in fees and services for overall improved member value; and • redistributing resources and time away from duplicated administrative processes towards better delivery of services and outcomes for members.
one CEO. A review of progress as of 30 June 2020 indicates the following: 1. Membership subscriptions have remained the same for three financial years: 2018-19 through 2020-21. 2. Membership (as of 30 June) has grown from 2,354 in 2018 to 2,397 in 2019 to 2,614 in 2020 – a growth of 11%. 3. Membership satisfaction is above 85% and our Net Promoter score has increased. 4. According to our annual accounts, the cost of business, excluding research funding, depreciation and corporate social responsibility has decreased. 5. Policy development has become more efficient. 6. Advocacy has become more effective. 7. Public engagement has become more streamlined and impactful.
Further, the advantages proposed (not listed above) included:
8. Breadth of CPD available nationally has increased.
1. Opportunity to better communicate and promote the profession to stakeholders and the wider community.
9. Investment in technology platform has been enhanced.
2. Better access to resources and expertise nationwide. 3. Ability of the Board to act decisively and for decisions to be implemented across the country. 4. Regional Committees able to focus mainly on member services. 5. Clearer management, authority and responsibility where one CEO is tasked with delivering on the strategic objectives and budget and business planning. 6. Unified market branding eliminating confusion of the CAA brand by one Board and
10. Governance is more consistent and in keeping with industry best practice. Realising the full benefits of restructure continue, however the achievements to date have been realised in a challenging environment not only for the profession but for the Australian community. In conclusion, I would like to thank the people of the ACA who have committed to what we are aiming to achieve – the Board, the staff and the members of the profession who contribute to what we do on your behalf. Additionally, I would like to thank our business partners and networks for assisting us to realise our vision.
Annual Report 2020 | 7
B Audit and Risk Committee’s Report Mr Martin Baird Chair
oards often delegate work to committees to more effectively deal with complex or specialised issues. Committees make recommendations to the full board which retains collective responsibility for decisionmaking. The ACA Constitution requires the formation of an Audit and Risk Committee (see Rule 24.3 below) which includes non-director member representation as a key member oversight measure.
the company’s investments and investment strategy.
The work of the Audit and Risk Committee is guided by its Charter which is the Board’s formal delegation of its role and responsibilities (the current Charter is available at members. chiro.org.au/agm) and its agreed annual workplan. It is useful to consider the activities of the Committee during the last year against the key elements of the Charter and the workplan including;
vi) Risk management: at each meeting the Committee considers risks identified in the Enterprise Risk Register (developed by management in line with ISO 31000:2018 for approval by the Board) and
i) Structure: the Committee comprises of Directors Dr Anthony Coxon, Dr Damian Kristof and Dr Warren Genders, member representative Dr Scott Charlton and myself. ii) Meetings: the Committee has met five times since the last AGM and provided an update for each Board meeting. iii) Financial oversight: the Committee reviewed and recommended the Board approve the 2020 budget. Each meeting considers progress against that budget and reviews the profit and loss, balance sheet and cash flow statements in detail together with management’s explanations of key variances. The Committee was pleased to note the substantial financial turnaround since prior years. iv) Investment: during the year, the Committee reviewed and recommended the Board approve the Investment Policy Statement and maintains regular oversight of
8 | Annual Report 2020
v) External audit: the Committee recommended the Board approve the auditor’s 2020 annual audit plan and reviewed the auditor’s report and recommendations for change. I am pleased to report that the auditors issued an unqualified opinion, did not identify any material financial errors and were complimentary of the company’s control systems and management’s financial reporting processes.
the status of management’s risk mitigation strategies. The Committee leads an in-depth discussion with the Board at least twice per year over-sighting ACA’s risk management practices. The Committee also reviews the company’s annual insurance renewal program – a key risk mitigation strategy. vii) Policies: the Committee oversights ACA’s policy framework and regularly reviews individual policies prior to Board approval. Looking back at the last year, I am confident that the Committee has added value to the work of the Board and would like to thank management (especially the Chief Financial Officer, Kim Hall) for their work in support of
the Committee. I would also like to thank the other Committee members for their time, energy and positive contributions to the Committee’s work. EXCERPT FOR THE ACA CONSTITUTION 24.3 Audit and Risk Committee As at the date of adoption of this Constitution, an Audit and Risk Committee must be established by the Board, which: (a) must comprise at least 4 and not more than 9 committee members appointed by the Board: (b) must include: (i) an individual with financial
expertise, such as a qualified accountant or auditor or other finance professional; (ii) a current Director to act as chairperson; and (iii) if possible, one member who has had previous experience in the area of risk and/or is legally qualified; and (iv) one non-director independent member to represent the members. (c) will assist the Board in the effective discharge of its responsibilities in the areas of statutory reporting, internal control systems, risk management systems, insurance and legal proceedings, and the internal and external audit functions.
Annual Report 2020 | 9
Financial Statements for the Year Ended 30 June 2020 2019-20 Financial Report The decision to restructure and integrate to form a single National entity from 1 July 2018 has enabled improved performance and enhanced service to members. The company continued its representations on behalf of the chiropractic profession, giving support to its members to strengthen their professional status as primary healthcare practitioners whilst working towards increased operational effectiveness. A surplus of $727,357 is declared for the year. Total members’ funds are $6,357,965 which includes the net assets acquired through business combinations as a result of restructure. Not all entities have completed the process of winding up therefore it is expected that members’ funds will increase further in the financial year 2020-21. The company’s financial result can be summarised as follows: • There were increases in referral fees, endorsement fees, membership revenue, rental income and contributions from CAA Entities due to the combination of business operations and government stimulus received. There were decreases in marketing and communications, events and an unrealised loss on investments due to COVID-19 impacts. • Expenses decreased in most areas of operations due to the continued aggregation and review of business operations. Contributors to the decreases were administration expenses, IT, employee expenses, meetings and travel, marketing and communications, AICE and CPG’s due to improved operations and COVID-19 impacts. The variances in property expenses and depreciation and amortisation expenses are a result of a change in accounting standards and office leases. There was increased research funding providing ongoing support of MRES, PhD’s and Back Complaints in Elders – Chiropractic project.
ACA Membership (excluding students) Age/Generation
Southern 1338 Northern 568
Female 1124
Female
10 | Annual Report 2020
Male
Generation Z 1996-2012
Male 1490
Silent Generation 1925-1945
Eastern 1186
Baby Boomers 1946-1964
Western 576
Generation Y 1982-1995
Gender
Generation X 1965-1981
Membership by Region
Australian Chiropractors Association Limited and its Controlled Entities ABN 50 050 096 038
Financial Statements - 30 June 2020
Annual Report 2020 | 11
Australian Chiropractors Association Limited and its Controlled Entities Contents For the year ended 30 June 2020 Directors' report Auditor's independence declaration Statement of profit or loss and other comprehensive income Statement of financial position Statement of changes in equity Statement of cash flows Notes to the financial statements Directors' declaration Independent auditor's report to the members of Australian Chiropractors Association Limited and its Controlled Entities
2 7 8 9 10 11 12 30 31
General information The financial statements cover Australian Chiropractors Association Limited and its Controlled Entities. The financial statements are presented in Australian dollars, which is Australian Chiropractors Association Limited and its Controlled Entities' functional and presentation currency. Australian Chiropractors Association Limited and its Controlled Entities is a not-for-profit unlisted public company limited by guarantee. The financial statements were authorised for issue, in accordance with a resolution of directors, on 4 September 2020. The directors have the power to amend and reissue the financial statements.
1
12 | Annual Report 2020
Australian Chiropractors Association Limited and its Controlled Entities Directors' report For the year ended 30 June 2020 The directors present their report, together with the financial statements, on the company for the year ended 30 June 2020. Directors The names of each person who has been a director during the year and to the date of this report are: Name: Title: Qualifications: Experience and expertise: Special responsibilities: Name: Title: Qualifications: Experience and expertise: Special responsibilities:
Name: Title: Qualifications: Experience and expertise: Special responsibilities:
Mr M. Baird Director BBus, FCPA, FGIA, FAICD ACA Director, appointed 28/05/2018 CAAN Director 2013-2018 Audit & Risk Committee Chair Dr A. Bennett Director MChiro, BSc (Anat) ACA Director, appointed 28/05/2018 - 18/10/2019 CAAN Director 2016-2018 Audit & Risk Committee Practice Advisory Committee Women in Chiropractic Committee Dr A. Coxon Director/President B.App.Sc (Chiro) ACA Director, appointed 28/05/2018 CAAN Director 2017-2018 Executive Committee Audit & Risk Committee Public Engagement Committee
Name: Title: Qualifications: Experience and expertise: Special responsibilities:
Dr J. de Voy Director/Vice President DC; DO, DICCP ACA Director, appointed 28/05/2018 Executive Committee Member Engagement Committee
Name: Title: Qualifications: Experience and expertise:
Dr W. Genders Director BA Ed., BSc (Anat), MChiro, GAICD ACA Director, appointed 28/05/2018 CAAN Director 2015-2018 Audit & Risk Committee CPD Committee Chair Conduct & Ethics Committee
Special responsibilities:
Name: Title: Qualifications: Experience and expertise: Special responsibilities:
Dr A. Lawrence Director DC ACA Director, appointed 28/05/2018 CAAN Director 1990-1995; 2012-2018 CAAN President 2015-2018 Executive Committee Policy Committee Practice Advisory Committee Guild Risk Management Committee
2
Annual Report 2020 | 13
Australian Chiropractors Association Limited and its Controlled Entities Directors' report For the year ended 30 June 2020 Name: Title: Qualifications: Experience and expertise: Special responsibilities:
Dr D. Cahill Director B.App.Sc (Chiro) ACA Director, elected 18/10/2019 Policy Committee Tertiary Education & Research Committee
Name: Title: Qualifications: Experience and expertise: Special responsibilities:
Dr D. Kristof Director B,Chiro AdvDip (Naturopathy) ACA Director, elected 18/10/2019 Audit & Risk Committee Public Engagement Committee
Name: Title: Qualifications: Experience and expertise:
Dr B. Whittingham Director DC ACA Director, appointed 28/05/2018 - 21/08/2019 CAAN Director 2017-2019 TER Committee Practice Advisory Committee
Special responsibilities: Name: Title: Qualifications: Experience and expertise:
Mrs N. Quinn Director BA – Politics and Journalism ACA Director, appointed 23/01/2020
Name: Title: Qualifications: Experience and expertise: Special responsibilities:
Dr J. Tsavasilis Director MClinChiro, BHsc(Chiro) ACA Director, appointed 23/01/2020 Member Engagement Committee Women In Chiropractic Committee ARRPN Committee
Members guarantee In accordance with the Company's Constitution, every member, while remaining as a member or within one year afterwards, of the company undertakes to contribute an amount not exceeding $1 per member to the assets of the National Association in the event of it being wound up. The amounts contributed are for payment of debts and liabilities of the National Association contracted before ceasing to be a member, the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves. At 30 June 2020, the number of members was 3,668 (2019: 3,447). Objectives of the Australian Chiropractors Association Limited The Australian Chiropractors Association Limited (ACA) is a not-for-profit company limited by guarantee. The Company is bound by the terms of its Constitution, which outlines the objectives of the company. The objectives are broad and permit the Company to engage in a wide range of activities focused on members, member services, advocacy, research, education and quality in governance for the betterment of the chiropractic profession. A strategic plan prepared for the period 2018-2023 outlines six strategic pillars to be addressed during the life of the plan. This strategic plan has been developed by the Board of the Company to guide the company's work over the coming years to focus ACA's efforts and resources to achieve the greatest impact for its members and the Australian community. It requires ACA to think and act differently, actively engaging with members of the profession and stakeholders to articulate a compelling narrative about the value of chiropractic care and the benefit of membership.
3
14 | Annual Report 2020
Australian Chiropractors Association Limited and its Controlled Entities Directors' report For the year ended 30 June 2020 The Board has recognised the importance of monitoring and evaluation and will ensure that progress under each of the goals is reported against regularly. The strategic pillars are: 1. LEADERSHIP The ACA is the recognised leader in the development and promotion of standards that apply to the chiropractic profession and spinal health. 2. ADVOCACY Working with members and stakeholders to promote the ACA and its goals to ensure advocacy delivers value for members and the community. 3. MEMBER SERVICE Provide services that support members to make their practice life easier. 4. RESEARCH Support research that builds the evidence base for chiropractic care 5. PUBLIC ENGAGEMENT To promote neuro-musculoskeletal and other positive health behaviours by Australians through awareness, participation and education. 6. GOVERNANCE Through our culture and business acumen, ACA invests in our people, technology, systems and other assets to execute our strategy through enhanced capacity and capability. Strategy for achieving the objectives To achieve these objectives, the Company has adopted the following strategies: * identify skill set required for the Board and assist the development of directors; * evaluate and manage risk; * regularly review the Board's strategic plan taking into account requirements and staff training in order to achieve changes in environment; * evaluate operational procedures, staffing strategic directives; * regularly survey members; and * review and monitor income and expenditure against budget allocations.
4
Annual Report 2020 | 15
Australian Chiropractors Association Limited and its Controlled Entities Directors' report For the year ended 30 June 2020 Performance measures The activities of the Company are measured against the Board's strategic plan and its objectives. The success that the ACA is seeking becomes defined as: * The financial performance of the company measured against the budget agreed to by the board. * The penetration into the registered profession with subsets of % growth and retention in defined segments of the membership. * The cultural alignment with the expressed values of the ACA. * Member satisfaction measures. * Reputation measures of the profession within the Australian community. Review of operations and future developments The Company provided leadership and representation for the chiropractic profession while ensuring its continued integration as a single National entity. The Company continued to contribute to the health of the community through education, health promotion, humanitarian grants and its Reconciliation Action Plan. In addition, the Company established the Australasian Institute of Chiropractic Education (www.aice.org.au) to lead the development of advanced learning pathways for the profession to enable the community to make informed choices in care. The ACA continued to provide funding for research and support of tertiary education institutions and students, including its scholarship for an eligible Aboriginal & Torres Strait Islander student to study chiropractic. These activities played an integral part in working toward achieving the ACA's strategic objectives. The underlying intent of these activities reinforces the ACA's commitment in supporting members which aims to improve the access of chiropractic care for Australians. The decision to restructure and integrate as a National entity from 1 July 2018 has enabled improved performance in advocacy, public engagement and portability of membership. Services to members continued to be enhanced and we continue to work towards increased operational effectiveness and greater economies of scale. The future developments for 2021 include the decision to change our technology platform to improve the operational effectiveness of the ACA and member experience, continuing with advocacy to maintain and improve the role of chiropractors in the Australian healthcare system and to improve the public understanding of the chiropractor in the community through our Consider a Chiro campaign. Meetings of directors The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2020, and the number of meetings attended by each director were: Directors' Meetings Held Attended Mr M. Baird Dr A. Bennett Dr A. Coxon Dr J. de Voy Dr W. Genders Dr A. Lawrence Dr D. Cahill Dr D. Kristof Dr B. Whittingham Mrs N. Quinn Dr J. Tsavasilis
10 2 10 10 10 10 8 8 1 6 6
Audit & Risk Committee Held Attended
9 2 10 10 10 10 7 8 1 6 6
Held: represents the number of meetings held during the time the director held office.
5
16 | Annual Report 2020
4 2 4 4 3 -
4 2 3 3 2 -
Australian Chiropractors Association Limited and its Controlled Entities Directors' report For the year ended 30 June 2020 Company secretary The following person held the position of company secretary at the end of the financial year: Kim Tompkin appointed on 3 July 2017. Auditor's independence declaration A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report. This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001. On behalf of the directors
___________________________ Dr A. Lawrence Director
___________________________ Dr A. Coxon Director
4 September 2020
6
Annual Report 2020 | 17
To the Board of Directors of Australian Chiropractors Association Limited and its Controlled Entities Auditor’s Independence Declaration under section 307C of the Corporations Act 2001 As lead audit director for the audit of the financial statements of Australian Chiropractors Association Limited and its Controlled Entities for the financial year ended 30 June 2020, I declare that to the best of my knowledge and belief, there have been no contraventions of: (a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(b)
any applicable code of professional conduct in relation to the audit.
Yours sincerely Nexia Sydney Audit Pty Ltd
Vishal Modi Director
Registered company auditor number: 486119 Dated this 4th day of September 2020
18 | Annual Report 2020
Australian Chiropractors Association Limited and its Controlled Entities Statement of profit or loss and other comprehensive income For the year ended 30 June 2020
Revenue Income Expenses Administration Expenses Information Technology Property Expense Employee Benefit Expense Meeting and Travel Governance Annual Conference Research Marketing and Communications Member Services AICE & CPG's Depreciation and amortisation expense Corporate Social Responsibility C.A.A. Supplies Finance costs - lease liabilities
Note
2020 $
2019 $
5
5,542,493
4,907,940
4
4
Surplus/(deficit) before income tax expense
(550,146) (641,927) (224,553) (287,527) (153,837) (376,726) (2,346,569) (2,415,463) (111,919) (176,164) (183,088) (182,741) (208,791) (188,351) (244,228) (167,305) (296,684) (378,199) (219,306) (262,413) (109,708) (175,107) (164,783) (83,635) (38,444) (28,368) (9,636) (13,241) 677,196
Income tax expense
(465,622)
-
Surplus/(deficit) after income tax expense for the year attributable to Australian Chiropractors Association Limited and its Controlled Entities
-
677,196
(465,622)
Items that will not be reclassified subsequently to profit or loss Gain on the revaluation of land and buildings, net of tax
450,000
625,000
Other comprehensive income for the year, net of tax
450,000
625,000
1,127,196
159,378
Other comprehensive income
Total comprehensive income for the year attributable to Australian Chiropractors Association Limited and its Controlled Entities
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 8
Annual Report 2020 | 19
Australian Chiropractors Association Limited and its Controlled Entities Statement of financial position As at 30 June 2020 Note
2020 $
2019 $
Current assets Cash and cash equivalents Trade and other receivables Financial assets Other assets Total current assets
7 8 10 9
1,627,344 127,639 2,642,022 75,583 4,472,588
987,898 125,765 2,719,819 74,812 3,908,294
Non-current assets Financial assets Property, plant and equipment Right-of-use assets Total non-current assets
11 12 13
155,728 3,374,600 1,072,986 4,603,314
155,728 2,987,835 3,143,563
9,075,902
7,051,857
Assets
Total assets Liabilities Current liabilities Trade and other payables Lease liabilities Employee benefits Provisions Other liabilities Total current liabilities
14 15 16 17 18
172,869 196,244 533,784 853,477 1,756,374
395,835 487,951 115,000 765,130 1,763,916
Non-current liabilities Lease liabilities Employee benefits Total non-current liabilities
19 20
890,381 71,182 961,563
57,172 57,172
Total liabilities
2,717,937
1,821,088
Net assets
6,357,965
5,230,769
1,991,928 4,366,037
1,541,928 3,688,841
6,357,965
5,230,769
Equity Reserves Retained earnings
21
Total equity
The above statement of financial position should be read in conjunction with the accompanying notes 9
20 | Annual Report 2020
Australian Chiropractors Association Limited and its Controlled Entities Statement of changes in equity For the year ended 30 June 2020 Asset Revaluation Reserve
Capital Reserve
Retained Earnings
Total equity
$
$
$
$
Balance at 1 July 2018
-
-
2,865,645
2,865,645
Acquisitions through business combinations
886,928
-
1,318,818
2,205,746
Deficit after income tax expense for the year
-
-
Other comprehensive income for the year, net of tax
625,000
-
Total comprehensive income for the year
625,000
-
(465,622)
159,378
-
30,000
(30,000)
-
1,511,928
30,000
3,688,841
5,230,769
Asset Revaluation Reserve
Capital Reserve
Retained Earnings
Total equity
$
$
$
$
Transfer to Reserve Balance at 30 June 2019
Balance at 1 July 2019
(465,622)
(465,622)
-
625,000
1,511,928
30,000
3,688,841
5,230,769
-
-
677,196
677,196
Other comprehensive income for the year, net of tax
450,000
-
-
450,000
Total comprehensive income for the year
450,000
-
677,196
1,127,196
1,961,928
30,000
4,366,037
6,357,965
Surplus after income tax expense for the year
Balance at 30 June 2020
The above statement of changes in equity should be read in conjunction with the accompanying notes 10
Annual Report 2020 | 21
Australian Chiropractors Association Limited and its Controlled Entities Statement of cash flows For the year ended 30 June 2020 Note Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers (inclusive of GST)
2020 $
2019 $
5,467,490 4,846,377 (5,462,782) (5,215,265)
Dividends received Interest received Contributions from CAA entities Interest and other finance costs paid
4,708 80,144 13,464 642,282 (13,241)
(368,888) 88,942 19,475 172,952 -
Net cash from/(used in) operating activities
727,357
(87,519)
(18,478) -
(424,168) (33,440) 433,383
Net cash used in investing activities
(18,478)
(24,225)
Cash flows from financing activities Repayment of lease liabilities
(69,433)
-
Net cash used in financing activities
(69,433)
-
Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash obtained from business combination
639,446 987,898 -
Cash flows from investing activities Payments for investments Payments for property, plant and equipment Proceeds from disposal of investments
12
Cash and cash equivalents at the end of the financial year
7
1,627,344
(111,744) 989,518 110,124 987,898
The above statement of cash flows should be read in conjunction with the accompanying notes 11
22 | Annual Report 2020
Australian Chiropractors Association Limited and its Controlled Entities Notes to the financial statements For the year ended 30 June 2020 Note 1. Basis of Preparation Australian Chiropractors Association Limited (the Company) applies Australian Accounting Standards Reduced Disclosure Requirements as set out in AASB 1053: Application of Tiers of Australian Accounting Standards and AASB 2010 2: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements. The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The Company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. 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 are presented in Australian dollars, which is Australian Chiropractors Association Limited's functional and presentation currency. The financial statements was authorised for issue by the directors of the company on the date specified in the Directors' Report Note 2. Significant accounting policies New or amended Accounting Standards and Interpretations adopted The company has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The key new accounting standards were AASB 1058 Income of Not-for-Profit Entities, AASB 15 Revenue From Contract with Customers and AASB 16 Leases and its amendments to the extent relevant to the financial statements of the Company. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. The adoption of these Accounting Standards and Interpretations impacted the Company as described below. AASB 15 Revenue from Contracts with Customers The company has adopted AASB 15 from 1 July 2019. The standard provides a single comprehensive model for revenue recognition. The core principle of the standard is that an entity shall recognise revenue to depict the transfer of promised goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard introduced a new contract-based revenue recognition model with a measurement approach that is based on an allocation of the transaction price. This is described further in the accounting policies below. Credit risk is presented separately as an expense rather than adjusted against revenue. Contracts with customers are presented in an entity's statement of financial position as a contract liability, a contract asset, or a receivable, depending on the relationship between the entity's performance and the customer's payment. Customer acquisition costs and costs to fulfil a contract can, subject to certain criteria, be capitalised as an asset and amortised over the contract period.
12
Annual Report 2020 | 23
Australian Chiropractors Association Limited and its Controlled Entities Notes to the financial statements For the year ended 30 June 2020 Note 2. Significant accounting policies (continued) AASB 16 Leases The company has adopted AASB 16 from 1 July 2019. The standard replaces AASB 117 'Leases' and for lessees eliminates the classifications of operating leases and finance leases. Except for short-term leases and leases of low-value assets, right-of-use assets and corresponding lease liabilities are recognised in the statement of financial position. Straight-line operating lease expense recognition is replaced with a depreciation charge for the right-of-use assets (included in operating costs) and an interest expense on the recognised lease liabilities (included in finance costs). In the earlier periods of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under AASB 117. However, EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results improve as the operating expense is now replaced by interest expense and depreciation in profit or loss. For classification within the statement of cash flows, the interest portion is disclosed in operating activities and the principal portion of the lease payments are separately disclosed in financing activities. For lessor accounting, the standard does not substantially change how a lessor accounts for leases. AASB 1058 Income of Not-for-Profit Entities The company has adopted AASB 1058 from 1 July 2019. The standard replaces AASB 1004 'Contributions' in respect to income recognition requirements for not-for-profit entities. The timing of income recognition under AASB 1058 is dependent upon whether the transaction gives rise to a liability or other performance obligation at the time of receipt. Income under the standard is recognised where: an asset is received in a transaction, such as by way of grant, bequest or donation; there has either been no consideration transferred, or the consideration paid is significantly less than the asset's fair value; and where the intention is to principally enable the entity to further its objectives. For transfers of financial assets to the entity which enable it to acquire or construct a recognisable non-financial asset, the entity must recognise a liability amounting to the excess of the fair value of the transfer received over any related amounts recognised. Related amounts recognised may relate to contributions by owners, AASB 15 revenue or contract liability recognised, lease liabilities in accordance with AASB 16, financial instruments in accordance with AASB 9, or provisions in accordance with AASB 137. The liability is brought to account as income over the period in which the entity satisfies its performance obligation. If the transaction does not enable the entity to acquire or construct a recognisable non-financial asset to be controlled by the entity, then any excess of the initial carrying amount of the recognised asset over the related amounts is recognised as income immediately. Where the fair value of volunteer services received can be measured, a private sector not-for-profit entity can elect to recognise the value of those services as an asset where asset recognition criteria are met or otherwise recognise the value as an expense. Revenue recognition The company recognises revenue as follows: Revenue from contracts with customers Revenue is recognised at an amount that reflects the consideration to which the company is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the company: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised. Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are recognised as a refund liability.
13
24 | Annual Report 2020
Australian Chiropractors Association Limited and its Controlled Entities Notes to the financial statements For the year ended 30 June 2020 Note 2. Significant accounting policies (continued) Member fees The Company's membership subscription year is 1 July to 30 June. Fees are payable annually in advance. Only those member fee receipts that are attributable to the current financial year are recognised as revenue. Fee receipts relating to periods beyond the current financial year are shown, excluding any applicable taxes, in the Statement of Financial Position as Fees in Advance, under the heading of current liabilities. Dividend revenue Dividends are recognised when the entity’s right to receive payment is established. Interest revenue Interest is recognised using the effective interest method. All revenue is stated net of the amount of goods and services tax (GST). Other revenue Other revenue is recognised when it is received or when the right to receive payment is established. Income tax The tax expense recognised in the statement of profit and loss and other comprehensive income relates to current income tax expense plus deferred tax expense (being the movement in deferred tax assets and liabilities and unused tax losses during the year). Current tax is the amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for the year and is measured at the amount expected to be paid to (recovered from) the taxation authorities, using the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. 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 parent prepares its income tax returns by reference to the application of the principle of mutuality to the revenue and expenses of the Group. The principle of mutuality is a common law principle arising from the premise that individuals cannot profit from themselves. Accordingly, receipts from members are deemed to be mutual income and not subject to income tax, and expenses in connection with mutual activities are therefore not deductible for taxation purposes. All other receipts and payments are classified in accordance with taxation legislation. Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification. An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the company's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current. A liability is classified as current when: it is either expected to be settled in the company's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.
14
Annual Report 2020 | 25
Australian Chiropractors Association Limited and its Controlled Entities Notes to the financial statements For the year ended 30 June 2020 Note 2. Significant accounting policies (continued) Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Trade and other receivables Other receivables are recognised at amortised cost, less any allowance for expected credit losses. Financial instruments Recognition, initial measurement and derecognition Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the financial instrument, and are measured initially at fair value adjusted by transactions costs, except for those carried at fair value through profit or loss, which are measured initially at fair value. Subsequent measurement of financial assets and financial liabilities are described below. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires Classification and subsequent measurement of financial assets Except for those trade receivables that do not contain a significant financing component and are measured at the transaction price, all financial assets are initially measured at fair value adjusted for transaction costs (where applicable). For the purpose of subsequent measurement, financial assets other than those designated and effective as hedging instruments are classified into the following categories upon initial recognition: - Amortised cost; - Fair value through profit or loss (FVPL); or - Equity instruments at fair value through other comprehensive income (FVOCI) All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade receivables which is presented within other expenses. Classifications are determined by both: The entities business model for managing the financial asset; and The contractual cash flow characteristics of the financial assets All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade receivables, which is presented within other expenses.
15
26 | Annual Report 2020
Australian Chiropractors Association Limited and its Controlled Entities Notes to the financial statements For the year ended 30 June 2020 Note 2. Significant accounting policies (continued) Subsequent measurement financial assets Financial assets at amortised cost Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVPL): - They are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows; and - The contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding. After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and most other receivables fall into this category of financial instruments as well as long-term deposit that were previously classified as held-to-maturity under AASB 139. Financial assets at fair value through profit or loss (FVPL) Financial assets that are held within a different business model other than ‘hold to collect’ or ‘hold to collect and sell’ are categorised at fair value through profit and loss. Further, irrespective of business model financial assets whose contractual cash flows are not solely payments of principal and interest are accounted for at FVPL. All derivative financial instruments fall into this category, except for those designated and effective as hedging instruments, for which the hedge accounting requirements apply (see below). Equity instruments at fair value through other comprehensive income (Equity FVOCI) Investments in equity instruments that are not held for trading are eligible for an irrevocable election at inception to be measured at FVOCI. Under Equity FVOCI, subsequent movements in fair value are recognised in other comprehensive income and are never reclassified to profit or loss. Dividend from these investments continue to be recorded as other income within the profit or loss unless the dividend clearly represents return of capital. Impairment of Financial assets AASB 9’s impairment requirements use more forward looking information to recognize expected credit losses - the ‘expected credit losses (ECL) model’. Instruments within the scope of the new requirements included loans and other debt-type financial assets measured at amortised cost and FVOCI, trade receivables and loan commitments and some financial guarantee contracts (for the issuer) that are not measured at fair value through profit or loss. The Group considers a broader range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument. Trade and other receivables The Group makes use of a simplified approach in accounting for trade and other receivables and records the loss allowance at the amount equal to the expected lifetime credit losses. In using this practical expedient, the Group uses its historical experience, external indicators and forward-looking information to calculate the expected credit losses using a provision matrix.
16
Annual Report 2020 | 27
Australian Chiropractors Association Limited and its Controlled Entities Notes to the financial statements For the year ended 30 June 2020 Note 2. Significant accounting policies (continued) Classification and measurement of financial liabilities The Group’s financial liabilities include borrowings and trade and other payables. Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the Group designated a financial liability at fair value through profit or loss. Subsequently, financial liabilities are measured at amortised cost using the effective interest method except for derivatives and financial liabilities designated at FVPL, which are carried subsequently at fair value with gains or losses recognised in profit or loss (other than derivative financial instruments that are designated and effective as hedging instruments). All interest-related charges and, if applicable, changes in an instrument’s fair value that are reported in profit or loss are included within finance costs or finance income. Property, plant and equipment Land and buildings are shown at fair value, based on periodic, at least every 3 years, valuations by external independent valuers, less subsequent depreciation and impairment for buildings. The valuations are undertaken more frequently if there is a material change in the fair value relative to the carrying amount. 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. Increases in the carrying amounts arising on revaluation of land and buildings are credited in other comprehensive income through to the revaluation surplus reserve in equity. Any revaluation decrements are initially taken in other comprehensive income through to the revaluation surplus reserve to the extent of any previous revaluation surplus of the same asset. Thereafter the decrements are taken to profit or loss. Plant and equipment Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. In the event that the carrying amount of plant and equipment is greater than its estimated recoverable amount, it is immediately written down to its estimated recoverable amount. The recoverable amount is assessed on the basis of the expected net cash flows which will be received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred. Depreciation Property, plant and equipment, other than freehold land, are depreciated at rates calculated to allocate the cost less the estimated residual value over the estimated useful life of each asset. The depreciation rates used for each class of depreciable asset are shown below: Buildings Improvements Furniture and Equipment
2.5% 20% 6.66% - 33.33%
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
17
28 | Annual Report 2020
Australian Chiropractors Association Limited and its Controlled Entities Notes to the financial statements For the year ended 30 June 2020 Note 2. Significant accounting policies (continued) An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the company. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits. Right-of-use assets A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset. Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the company expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities. The company has elected not to recognise a right-of-use asset and corresponding lease liability for shortterm leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred. Impairment of non-financial assets Goodwill and other intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit. Trade and other payables These amounts represent liabilities for goods and services provided to the company prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. Lease liabilities A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred. Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
18
Annual Report 2020 | 29
Australian Chiropractors Association Limited and its Controlled Entities Notes to the financial statements For the year ended 30 June 2020 Note 2. Significant accounting policies (continued) Provisions Provisions are recognised when the company has a present (legal or constructive) obligation as a result of a past event, it is probable the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost. 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. Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period. Employee benefits Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled. Other long-term employee benefits The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Defined contribution superannuation expense Contributions are made to employee superannuation funds and are charged as expenses when incurred. All employees are entitled to varying levels of benefits on retirement, disability or death. The superannuation plans or equivalent provide accumulated benefits. Contributions are made in accordance with the statutory requirements of each jurisdiction. The Company has no legal obligation to cover any shortfall in the Funds' obligations to provide benefits to employees on retirement. Fair value measurement When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market. Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. Goods and Services Tax ('GST') Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.
19
30 | Annual Report 2020
Australian Chiropractors Association Limited and its Controlled Entities Notes to the financial statements For the year ended 30 June 2020 Note 2. Significant accounting policies (continued) Receivables and payable are stated inclusive of GST. 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 tax authority, are presented as operating cash flows. Note 3. Critical accounting judgements, estimates and assumptions The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below. Coronavirus (COVID-19) pandemic Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the company based on known information. This consideration extends to the nature of the products and services offered, customers, supply chain, staffing and geographic regions in which the company operates. Other than as addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may impact the company unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic. Estimation of useful lives of assets The company determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down. Impairment of non-financial assets other than goodwill and other indefinite life intangible assets The company assesses impairment of non-financial assets other than goodwill and other indefinite life intangible assets at each reporting date by evaluating conditions specific to the company and to the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value less costs of disposal or value-in-use calculations, which incorporate a number of key estimates and assumptions. Incremental borrowing rate Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is estimated to discount future lease payments to measure the present value of the lease liability at the lease commencement date. Such a rate is based on what the company estimates it would have to pay a third party to borrow the funds necessary to obtain an asset of a similar value to the right-of-use asset, with similar terms, security and economic environment.
20
Annual Report 2020 | 31
Australian Chiropractors Association Limited and its Controlled Entities Notes to the financial statements For the year ended 30 June 2020 Note 3. Critical accounting judgements, estimates and assumptions (continued) Employee benefits For the purpose of measurement, AASB 119: Employee Benefits (September 2011) defines obligations for short-term employee benefits as obligations expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related services. The Company has determined that it expects most employee benefits to be taken within 24 months of the reporting period in which they were earned and that this change did not have a material impact on the amounts recognised in respect of obligations for employees' leave entitlements. The liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account.
21
32 | Annual Report 2020
Australian Chiropractors Association Limited and its Controlled Entities Notes to the financial statements For the year ended 30 June 2020 Note 4. Result for the Year The result for the year includes the following specific expenses: 2020 $ Depreciation and amortisation: - Furniture and equipment - Buildings - Buildings right-of-use - Leasehold improvements
Employee benefits expense: - Superannuation contributions
Property Expense: - Rent expense on operating lease - Other property expenses - Make good provision (reversal)/expense
2019 $
19,392 32,948 83,070 29,373
22,596 21,875 39,164
164,783
83,635
2020 $
2019 $
189,918
193,327
2020 $
2019 $
171,822 97,015 (115,000)
217,022 90,604 69,100
153,837
376,726
2020 $
2019 $ -
Loss on disposal of assets
47,084
22
Annual Report 2020 | 33
Australian Chiropractors Association Limited and its Controlled Entities Notes to the financial statements For the year ended 30 June 2020 Note 5. Income 2020 $ Referral Fees Endorsement Fees Interest Received Members Subscriptions Annual Conference AICE & CPG's Marketing and Communications Member Services Dividend Income Unrealised (loss)/gain on managed investments Sundry Income Government stimulus Contributions from CAA entities C.A.A. Supplies
2019 $
817,948 259,006 13,464 3,007,010 234,339 104,261 175,741 148,495 80,760 (77,797) 86,984 50,000 642,282 -
694,542 232,703 19,475 2,976,900 209,585 48,347 199,497 180,225 88,942 62,056 12,863 172,952 9,853
5,542,493
4,907,940
Note 6. Income tax expense The Company is liable for income tax only on income derived from non-members and from investments with outside entities. 2020 $ Current tax expense
2019 $ -
-
As at 30 June 2019 the company had carried forward tax losses of $1,111,809. 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. Note 7. Current assets - Cash and cash equivalents 2020 $ Cash on hand Cash at bank
23
34 | Annual Report 2020
2019 $
5,861 1,621,483
2,271 985,627
1,627,344
987,898
Australian Chiropractors Association Limited and its Controlled Entities Notes to the financial statements For the year ended 30 June 2020 Note 8. Current assets - Trade and other receivables 2020 $ Accrued referral fees Accrued endorsement fees Membership subscriptions Sundry debtors Accrued interest receivable Provision for doubtful debts
40,447 24,076 6,198 56,386 4,987 (4,455)
2019 $ 34,312 20,100 2,147 66,949 3,036 (779)
127,639
125,765
2020 $
2019 $
Note 9. Current assets - Other assets
Conference advances & prepayments
75,583
74,812
Note 10. Current assets - Financial assets
At amortised cost - Interest bearing deposits At fair value through profit or loss - Managed investments
2020 $
2019 $
600,000
600,000
2,042,022
2,119,819
2,642,022
2,719,819
2020 $
2019 $
155,728
155,728
Note 11. Non-current assets - Financial assets
At amortised cost - Interest bearing deposits
24
Annual Report 2020 | 35
Australian Chiropractors Association Limited and its Controlled Entities Notes to the financial statements For the year ended 30 June 2020 Note 12. Non-current assets - Property, plant and equipment 2020 $
2019 $
Land and buildings - at fair value Less: Accumulated depreciation
3,375,000 (54,823) 3,320,177
2,925,000 (21,875) 2,903,125
Leasehold improvements - at cost Less: Accumulated depreciation
195,820 (195,820) -
195,820 (166,447) 29,373
Fixtures and fittings - at cost Less: Accumulated depreciation
191,465 (137,042) 54,423
172,988 (117,651) 55,337
3,374,600
2,987,835
Reconciliations Reconciliations of the written down values at the beginning and end of the current financial year are set out below: Land and Leasehold Furniture Buildings Improvements and Equipment $ $ $
Total $
Balance at 1 July 2019 Additions Revaluation increments Depreciation expense
2,903,125 450,000 (32,948)
29,373 (29,373)
55,337 18,478 (19,392)
2,987,835 18,478 450,000 (81,713)
Balance at 30 June 2020
3,320,177
-
54,423
3,374,600
Valuations of land and buildings The consolidated entity’s property at 4/30 Atchison Street, St Leonards NSW 2065 was independently valued on 20 March 2018 by Civic MJD at $875,000. The valuation was based on direct comparison method which compares the current property to similar properties in the same location and condition. The consolidated entity’s property at 40 Dudley Street, West Melbourne was independently valued on 11 October 2019 by Westlink Consulting at $2,500,000. The valuation was based on direct comparison method which compares the current property to similar properties in the same location and condition. Note 13. Non-current assets - right-of-use assets 2020 $ Land and buildings -right of use Less: Accumulated depreciation
25
36 | Annual Report 2020
2019 $
1,156,058 (83,072)
-
1,072,986
-
Australian Chiropractors Association Limited and its Controlled Entities Notes to the financial statements For the year ended 30 June 2020 Note 14. Current liabilities - Trade and other payables
Trade and other payables GST payable
2020 $
2019 $
162,560 10,309
342,663 53,172
172,869
395,835
2020 $
2019 $
Note 15. Current liabilities - Lease liabilities
Lease liability
196,244
-
Note 16. Current liabilities - Employee benefits
Annual leave Long service leave
2020 $
2019 $
286,118 247,666
266,371 221,580
533,784
487,951
2020 $
2019 $
Note 17. Current liabilities - Provisions
Provision for lease make good
-
115,000
Note 18. Current liabilities - Other liabilities
Receipts in advance Rent free liability
2020 $
2019 $
853,477 -
730,726 34,404
853,477
765,130
2020 $
2019 $
Note 19. Non-current liabilities - Lease liabilities
Lease liability
890,381
-
Note 20. Non-current liabilities - Employee benefits 2020 $ Long service leave
71,182
2019 $ 57,172
26
Annual Report 2020 2019 | 37
Australian Chiropractors Association Limited and its Controlled Entities Notes to the financial statements For the year ended 30 June 2020 Note 21. Equity - Reserves
Revaluation reserve Capital reserve
2020 $
2019 $
1,961,928 30,000
1,511,928 30,000
1,991,928
1,541,928
Note 22. Related party transactions Key management personnel Disclosures relating to key management personnel are set out in subsequent note. Transactions with related parties Transactions entered into during the year with Directors, their firms and associates are within normal customer relationship on terms and conditions no more favourable to those available to other members and customers including the payment of usual member subscriptions and receipt of normal benefits of memberships. Receivable from and payable to related parties There were no trade receivables from or trade payables to related parties at the current and previous reporting date. Loans to/from related parties There were no loans to or from related parties at the current and previous reporting date. Note 23. Key management personnel disclosures Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity is considered key management personnel. The Directors of the Australian Chiropractors Association Limited during the year were Mr M. Baird, Dr A. Bennett, Dr A. Coxon, Dr J. de Voy, Dr W. Genders, Dr A. Lawrence, Dr D. Cahill, Dr D. Kristof, Dr B. Whittingham, Mrs N. Quinn and Dr J. Tsavasilis M. Fisher was appointed the Chief Executive Officer from 4 August 2014. Payments to directors are within the maximum director remuneration pool amount authorised by the members. The totals of remuneration paid to key management personnel including directors of Australian Chiropractors Association Limited during the year are as follows:
Key management personnel remuneration
27
38 | Annual Report 2020 2019
2020 $
2019 $
410,118
397,298
Australian Chiropractors Association Limited and its Controlled Entities Notes to the financial statements For the year ended 30 June 2020 Note 24. Capital and leasing commitments 2020 $ Operating leases Minimum lease payments under non-cancellable operating leases: - not later than one year
2019 $
-
151,407
Operating leases have been taken out for rent. Lease payments are increased by a fixed percentage on an annual basis to reflect market rentals. Note 25. Contingencies In the opinion of the Directors, the Company did not have any contingencies at 30 June 2020 (2019: Nil). Note 26. Contingent assets Following the restructure Chiropractors' Association of Australia (Western Australia) Ltd (CAA WA) is still undergoing the process of winding up. It is estimated that the winding up will be completed in the next financial year and the expected restructure contributions from CAA WA is $430,000 Note 27. Cash flow Information Reconciliation of net income to net cash provided by operating activities: 2020 $ Profit/ (Loss) for the year Non-cash flows in profit / (loss) - depreciation and amortisation - net loss on disposal of property, plant and equipment - capital loss on disposal of financial assets - net unrealised (gain)/loss on financial asset Changes in assets and liabilities: - (increase)/decrease in trade and other receivables - (increase)/decrease in inventories - (increase)/decrease in other assets - increase/(decrease) in trade and other payables - increase/(decrease) in provisions - increase/(decrease) in income in advance Cash flow from operations
2019 $
677,196
(465,622)
164,783 77,797
83,635 47,084 4,543 (62,056)
(1,874) (769) (222,966) (55,157) 88,347
29,920 15,004 12,965 31,638 209,247 6,123
727,357
(87,519)
Note 28. Events after the reporting period The impact of the Coronavirus (COVID-19) pandemic is ongoing and while the current financial performance is positive up to 30 June 2020, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided. No other matter or circumstance has arisen since 30 June 2020 that has significantly affected, or may significantly affect the company's operations, the results of those operations, or the company's state of affairs in future financial years.
28
Annual Report 2020 | 39
Australian Chiropractors Association Limited and its Controlled Entities Notes to the financial statements For the year ended 30 June 2020 Note 29. Company Details The registered office and principal place of business of the company is: Australian Chiropractors Association Limited Level 1 75 George Street PARRAMATTA NSW 2150
29
40 | Annual Report 2020
Australian Chiropractors Association Limited and its Controlled Entities Directors' declaration For the year ended 30 June 2020 In the directors' opinion: ●
the attached financial statements and notes comply with the Corporations Act 2001, the Australian Accounting Standards - Reduced Disclosure Requirements, the Corporations Regulations 2001 and other mandatory professional reporting requirements;
●
the attached financial statements and notes give a true and fair view of the company's financial position as at 30 June 2020 and of its performance for the financial year ended on that date; and
●
there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001. On behalf of the directors
___________________________ Dr A. Lawrence Director
___________________________ Dr A. Coxon Director
4 September 2020
30
Annual Report 2020 | 41
Independent Auditor’s Report to the Members of Australian Chiropractors Association Limited and its controlled entities Report on the Audit of the Financial Report Opinion We have audited the financial report of Australian Chiropractors Association Limited and its controlled entities (the Company), which comprises the statement of financial position as at 30 June 2020, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration. In our opinion, the accompanying financial report of the Company 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 2020 and of its financial performance for the year then ended; and
ii) complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Regulations 2001. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the ‘auditor’s responsibilities for the audit of the financial report’ section of our report. We are independent of the Company in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Directors’ responsibility for the financial report 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 - Reduced Disclosure Requirements and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
31
42 | Annual Report 2020
Auditor’s responsibility for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: •
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
•
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Nexia Sydney Audit Pty Ltd
Vishal Modi Director
Registered company auditor number: 486119 Dated on this 11th day of September 2020 32
Annual Report 2020 | 43
Regions Northern Dr Mark McEwan, Regional Committee Chair Like the rest of the world, the Northern Regional Committee has spent a large portion of 2020 responding to the change caused by the COVID-19 pandemic. The Committee has worked closely with the Regional Manager on adapting plans and providing guidance, advice and recommendations about how to best support members and tackle local issues through this time. Ensuring members have been kept up-to-date about local QLD and NT changes has been a priority through this period, along with a significant amount of advocacy, particularly in QLD on issues such as massage therapy, border restrictions and telehealth with local third party insurers, such as WorkCover QLD.
activity in QLD and NT. Feedback from the annual ACA member survey and local knowledge and feedback drawn from the Committee members networks are also utilised in the development of the action plan, to ensure that activities and priorities are relevant and fit for purpose to support the needs of the Northern Region members.
Even though the second half of the past year has meant adaption and change, the Northern Region Action Plan 2018-19 was concluded at the end of 2019. A 202021 Action Plan was developed and has started to be implemented, albeit with some tweaks given the current external environment.
The Committee was fortunate to start the year with a face-to-face meeting in Brisbane in January. This meeting was attended by CEO Dr Matthew Fisher and Vice President Dr John de Voy. The Committee was able to make good use of the time together to progress planning for the region, discuss local issues and to provide Northern Region feedback to the ACA Board. The Committee also welcomed Dr Andrew Vincent and Dr Tracy Kennedy-Shanks to the meeting to consider a new strategy to deal with Queensland WorkCover roadblocks and to discuss increasing student support and the issue of developing the next generations of leadership in the region.
The Northern Region Action Plan establishes key priority and strategic activity areas to support overarching ACA strategy in the region and to provide members with strong local action and
As Chair, I have participated in half yearly meetings with the other Regional Chairs, ACA President Dr Anthony Coxon, CEO Dr Matthew Fisher and all four Regional Managers. These meetings allow the
regions to work together to share ideas and provide local feedback directly to the ACA Board. Representatives from the Northern Region have also been participating in a National Workers Compensation working group. Across the year, the Committee has also provided recommendations to the Board on a variety of issues including the Consider a Chiro campaign, local budget and activities. Committee members have participated in stakeholder meetings with the Regional Manager and provided representation at events within the region, including student graduation events. As restrictions ease, the Committee will be looking to the future, including the provision of local face-to-face seminars and social events so that members have the opportunity to interact with their colleagues in person. The Committee is a very collegial committee and I’d like to thank the members for their time, service and contribution: Drs Craig Matthews, Matthew Doyle, Josh Shea, Fraser McClymont, Daryl Ansell, Greg Goggin and Anita Marcinkowski.
Western Dr Joshua Tymms, Regional Committee Chair The Western Regional Committee has been a relatively small committee since its inception, but we have achieved some great outcomes this year. Following on from work started by CAAWA we have finally heard back from the Radiological Council of WA that chiropractors are now eligible to use class 4 lasers in practice. This submission was started over three years ago and has come to fruition as a
44 | Annual Report 2020
result of persistent follow up from our WA office.
allows a new career path for chiropractic graduates.
The other big win was achieved with Workcover WA, the company deciding to allow chiropractors to become Workplace Rehabilitation Consultants, an area that chiropractors have never been eligible previously anywhere in Australia. It removes a barrier for chiropractors interested in working in rehabilitation and
The Committee has been in regular contact with Murdoch University, continuing to be proactively involved in supporting chiropractic students. The future of this Committee looks strong with the addition of new members Drs Matt Coxall and Wendy Peh and I look forward to their contribution.
Southern Dr Melissa Russian, Regional Committee Chair This year has seen a lot of change within the Southern Regional Committee. We had Dr Tim Leeming, the former Chair of the Committee move states and step down. We have also had several changes to the Committee members from SA and VIC. The Committee has filled all vacant positions and we are working well together and are all very motivated and enthusiastic to better meet the needs of our members. For me personally the highlight of the past year has undoubtedly been meeting so many inspiring members of the Association who work tirelessly and with such passion for the betterment of chiropractic. I have spoken with members throughout the year, a few who have expressed the sentiment that they feel not much is happening within the Southern region. It may look like this from the outside, but I can assure these members that every opportunity we get to represent chiropractic in any arena, we are there. We are building and maintaining relationships with third party insurers,
universities, allied health and tribunal bodies. As a Committee we have represented the Association at meetings with third party organisations in SA, TAS and VIC. These meetings are about ensuring that chiropractors have a seat at the table and then building on those relationships to improve our ability to contribute in these third-party environments. There is now a national committee, made up of regional committee representatives working to develop an overarching strategy to guide future advocacy in this area. It has obviously been a year where faceto-face events for CPD, social interaction and member engagement has been mostly impossible. Last year we held listening tours in regional SA, TAS and VIC which were a great success. Therefore, we are very much looking forward to resuming these tours in 2021, where our goal will continue to be to listen to you, the member about how you would like the Association to serve you.
A priority for the Southern Regional Committee has been how we can support current fifth year students and new graduates who have entered the work force. Our discussions are to let them know of the many benefits the Association offers, including special CPD series’, mentorship and the support that can benefit you during this difficult period. We also have a student podcast in the making. We are planning to hold a Gala Ball each year, rotating around the three states that make up the region. We will get the first one organised as soon as COVID-19 restrictions are lifted. As a Committee we are very much looking forward to a positive 2021. We are all eager to recommence our member engagement activities to strengthen our chiropractic community, support each other and celebrate the benefit that our chiropractic care has provided to our communities during this time.
Eastern Dr Mark Uren, Regional Committee Chair The Eastern Regional Committee have developed into a strong, cohesive unit, focussed on supporting members in NSW and the ACT. Having representatives from each state on the Committee have allowed us to better understand the needs of members across the region. Highlights of the year include the continuation of our Listening Tours. This year we visited Taree, Port Macquarie, Coffs Harbour and Newcastle. The Eastern Regional Manager also visited Mittagong, Bowral and Goulburn on route to Canberra. By engaging this way, we have welcomed several new members from each of these tours. Equally as important, we were able to connect with rural members who may otherwise feel a little disconnected geographically. We are also proud to have provided a Chiropractic Assistants Workshop in September, presented by Laurence Tham. Attendees from metro Sydney, Canberra and as far away as Coffs Harbour, enjoyed a full day of training and meeting others in their field of work. Thank you to those members who saw value in their support staff to send them to this workshop, it was very well attended.
Providing local CPD and networking events has remained an important part of the Committee’s Action Plan. Hosting three locations for the Risk Management Roadshow allowed us the opportunity to connect with our colleagues. Bringing extra events to the ACT has also been a highlight and well received by this very engaging group of members.
been challenging, but we will continue to work with our ACT Committee members and the ACT membership at large, to establish these relationships.
Unfortunately, COVID-19 put a pause on several planned events for the beginning of 2020, including our anticipated Integrative Patient Care seminar with Drs Ralph Mobbs and Sean Lal. We have rescheduled this seminar for November, depending on restrictions at that time. The Committee had planned a Focus Group for March which has also been postponed, which was to focus on the expectations and needs of members in the first four years of their careers. The Committee want to learn how to best support this group and will again, reschedule when we can once again meet face-to=face.
Although this year has thrown up many challenges, with bushfire disasters and then the multiple stresses of the COVID-19 pandemic, I feel the ACA has done an amazing job in supporting the membership and the profession at large.
The Committee continue working with local external stakeholders, including SIRA and local Primary Health Networks. Understanding processes in the ACT has
To ensure diversity, the Committee have recently welcomed second year graduate from CQUniversity Sydney, Dr Aimee Mason.
I would also like to thank the Committee members for all their hard work and commitment to supporting and representing chiropractors in NSW and the ACT and look forward to serving with them over the next year. I am particularly grateful to our Regional Manager, Suzanne Bowyer, who works tirelessly to keep the wheels of this Committee running. Suzanne does a huge amount of work and really does go above and beyond for the Association and its members.
Annual Report 2020 | 45
Committees Aboriginal and Torres Strait Islander, Rural and Remote Practitioner Network (ARRPN) Dr Joan van Rotterdam, Chair In October last year, the ACA launched its first Reconciliation Action Plan (RAP), the Reflect plan, the first in a series of four different RAP plans to be developed and actioned over the coming years. The Reflect RAP lays the foundation for future RAPs by building the framework to expand. Staff and the ARRPN Committee have been working to complete the ACA’s Reflect RAP’s actions and deliverables. Most of these actions and deliverables are now complete and the ACA is on track to complete the Reflect RAP by 31 December 2020 as planned. Across the course of the year, the Committee has worked with the ACA to also provide follow up articles and information for members about the RAP and the ACA’s RAP journey, so all members can be part of the ACA’s Reconciliation commitment. Planning and development have begun on the next phase of the ACA’s RAP journey – the Innovate RAP. The Committee are currently working on the content, with the aim of obtaining Reconciliation Australia endorsement by the end of the year for implementation from 1 January 2021. The Committee has been delighted by the way the membership and staff have embraced the RAP. All ACA Board and
Committee meetings, along with events, now deliver an acknowledgment of country ahead of meetings and events. Participation and interest in National Reconciliation Week and NAIDOC Week has also increased. We thank all the members who have provided encouragement and positive feedback about the RAP to the committee and staff. The ARRPN Committee has also participated in the ACA policy review; reviewing and amending the ACA’s policy on Aboriginal and Torres Strait Islander Health and more recently producing a new ACA Policy on Rural, Regional and Remote Health. There are several projects that the Committee have been progressing across the course of this year: • The development of a Cultural Competence Training for staff, board and members. Although COVID-19 has had a small effect on the delivery of the training, ARRPN are now exploring alternatives utilising technology and online programs. • Work has commenced on assessing how a rural general pathway could
be offered to members via AICE. Utilisation of existing programs, feasibility and demand are currently being explored. • ARRPN have begun to build an Aboriginal and Torres Strait Islander, Rural, Regional and Remote webinar and podcast library for members to access. ARRPN are currently developing content for delivery to members across the next 12 months. While face-to-face activity has been quieter this year with disruption to events such as the Koori Knockout, every opportunity is being utilised to represent members within stakeholder groups and networks, including the National Rural Health Alliance, Hands on Health Australia and SARRAH. Lastly, I’d like to acknowledge the members of the Committee- Drs Adam Carter, Alison Bennett, Lyndon Amorin-Woods, William Hayward, Fraser McClymont, Michael Shobbrook, Kevin Schwager, Clare Halpin and our board representative Julia Tsavasilis, for their time, effort and hard work over the past year.
Conduct and Ethics Dr Michael El Moussalli, Chair It has been a very interesting and challenging year with the impact of COVID-19. Overall, this past year has been a relatively quiet one for the Conduct and Ethics Committee. The Committee initially met at the ACA Conference in Melbourne and then throughout the year. The Committee provided feedback and recommendations on various documents. These included the Subluxation document and review of the ACA Code of Conduct. It is very important that the ACA Code of
46 | Annual Report 2020
Ethics reflect high standards for members to aspire to.
We wish to thank Dr Irvine for his past contribution. It is greatly appreciated.
It was very pleasing that the Committee has not been utilised to investigate disciplinary matters which is a testament to the way members have conducted themselves. However, the Committee have recently been requested to form a Conduct and Disciplinary subcommittee to investigate alleged conduct breaches by a practitioner.
The Committee encourages all ACA members to be familiar with the ACA Code of Ethics and Ahpra Code of Conduct for chiropractors and further encourages members to contact the ACA for any guidance or advice regarding ethical issues if needed.
During the year Dr Geoff Irvine tendered his resignation from the Committee.
The Committee looks forward to working together, providing support to the ACA Board when required.
Member Engagement Dr Matthew Coxall, Chair The Member Engagement Committee has hit its stride this year. The Committee members are representative of the diversive membership base, which include first to third year graduates, sole practitioners, associates and principal chiropractors across most states nationwide. Our attendance at meetings is over 90% showing commitment and a drive to achieve better outcomes as a group. We support ACA activity by providing valuable feedback, information and recommendations on membership engagement, support and services from a member perspective. Across the past year the Committee has been able to assist the board, staff and other ACA committees on many projects, including: • S1-S4 retention strategy and
resources;
• feedback on the ACA HR Service; and
• recommendations on member assistance programs;
• feedback on membership renewals campaign.
• non-member campaign;
The Committee has also participated in workshops on supporting members during COVID-19, non-member engagement and development of the Member Engagement Strategy 2021.
• recommendations and feedback on Consider a Chiro campaign; • review of the annual member business fee survey; • assisting committees and staff with recommendations on educative materials and topics; • feedback on Practice Advisory Committee projects, guides and resources; • feedback on website resources; • development of a proposal on acknowledging long term members;
The Committee also monitor and provide feedback on monthly member engagement metrics and statistics. My thanks to Drs David Hannah, Lindy Kubric, Louis Jen, Lauren Darby, Aimee Mason, Ben Schutte and Board representative John De Voy, for their ongoing commitment, participation and considered feedback over the past 12 months.
Continuing Professional Development Dr Warren Genders, Chair The ACA CPD Committee is currently comprised of Drs Warren Genders (Chair and ACA Board representative), Michael Shobbrook, Taylor Vagg, Julie Uren and Matt Coxall with ACA staff, Glynis Grace, Shelly-Anne Cornell and Debbie Kelly. Drs Luke Nelson, Mark Feldman and Damian Kristof resigned from the Committee during the reporting period and were thanked for their contribution. The Committee met on seven occasions between July 2019 and June 2020 to discuss overall CPD strategy, development of CPD events and the introduction of the revised CPD standard in December 2019. Major achievements of the period up to December 2019 include the successful presentation of: • the ACA Conference in Melbourne in October 2019;
• the Risk Management Roadshow across eight locations nationally; and • a three state seminar series on Posture with US speaker, Dr Steven Weiniger. In 2020 with the onset of the pandemic and the cancellation of in person events, the CPD Committee guided delivery of over 50 free recorded webinars to all ACA members, a package of webinars for nonmembers and with the cooperation of the Clinical Practice, Advocacy and other ACA Committees, was able to deliver over 20 new webinars, at no charge to members. With the cancellation of SpineWeek 2020, the joint ACA/CA organising committee pivoted the event to a free, online conference and was successfully delivered over six days in June, to over 250 participants. It was then made available to all members at no charge.
The revised CPD standard came into effect on 1 December 2019 followed by a raft of supporting documentation and resources in mid-January 2020. ACA online resources were updated to reflect the changes and a regular CPD and Networking email blast developed and circulated bimonthly to highlight upcoming events, accompanied by helpful information on the revised standard. These emails have been well received. Following the successes of 2019 and despite the difficulties in the first half of 2020, the CPD Committee continued to focus on the development and delivery of events for all members and students as well as the ongoing education and support of members with respect to their CPD compliance.
Annual Report 2020 | 47
Practice Advisory Dr Brett Foote, Chair The Practice Advisory Committee was established amongst other things to advise the ACA Board on issues affecting chiropractic practice. Its first task was to review the range of practice resources held by the various arms of the CAA and review them to determine if they are still relevant and/or required by the membership and if so, review them to ensure that they are up- to-date and appropriate for all regions. The Committee is of the view that these resources, once finalised, will constitute a wonderful range of practice tools for members. They will provide invaluable
guidance for members, whether they are considering an associate position or contemplating retirement and therefore beginning to contracture their succession plan for their practice. The guides and tip sheets will be an accumulation of the knowledge, experience and wisdom of a range of members thereby serving to save members time and money. The Committee is also undertaking a review of the HICAPS item schedule to ensure that it is current and accurately reflects the range of services provided by chiropractors.
The current COVID-19 crisis has created another task for us, in identifying the need for an extensive review of infection control standards and how they might stand up to scrutiny under the light of a pandemic. Finally, I would like to thank the Practice Advisory Committee members for the time and energy they have contributed. These members, like all ACA Committee members volunteer their time and are simply wonderful in the way that they give back to their profession.
Public Engagement Dr Ashley Dent, Chair The 2019-20 year has been a big year for the Public Engagement Committee. We had very successful World Spine Day and Back to School campaigns, up on previous years. The launch of the Consider a Chiro campaign was again delayed, along with Spinal Health Week 2020, due to COVID-19. We were finally able to launch the campaign in August 2020 (just after this reporting period) and the PE Committee, alongside the ACA’s Marketing & Communications team and
OPR, were delighted with the attention from 75 media channels across all states and territories, resulting in over 18 million potential impressions. This was a resounding success placing the chiropractic profession at the forefront of many Australian minds. Now the challenge is to maintain our presence within the Australian psyche with a continued media push over the three to five year life-span of the Consider a Chiro campaign. ACA and OPR are working on a framework of media
engagement that will plug in with our existing calendar dates and events, as well as seizing opportunistic chances when they come our way. While recent years have been dominated by negative events and media for our profession, and globally through 2020, the Committee is very optimistic about the future of the Consider a Chiro campaign and its potential to shift the public’s understanding of chiropractic.
Tertiary Education and Research Dr Mark McEwan, Chair The Tertiary Education and Research Committee have been very proactive this past year, meeting five times to provide feedback and recommendations to the ACA Board. A highlight of the Committee has been the finalisation of the Chiropractic Research Summary. The Committee, along with others have donated many hours to finalising this document and are looking forward to its release to members.
48 | Annual Report 2020
The Committee have been requested to review over ten documents/papers ranging from updating consent forms to the vigorous exercise of reviewing the research summary document. Having a diverse and dedicated Committee has allowed us to provide great, robust recommendations and feedback. As Chair, I would like to thank all the members of the Committee for their
significant commitment and input on behalf of the Association and its members.
Policy Dr Andrew Lawrence, Chair The ACA Board made a decision to review all policies when the new constitution was adopted by the membership. It had been a long time since a comprehensive review had been undertaken and this task was given to the Policy Committee. The Committee under the superb management of Dr Katie Moss went to work and began to review all policies for relevance, currency and content. This triage process resulted in three categories: the policies that were suitable and did not need modification, policies that needed review but were not in need of urgent modification and those that needed to be withdrawn and reviewed immediately. Over the two and a half years this review process has spanned, the Committee has reviewed and submitted to the ACA Board 19 policies which they have approved and
published on the ACA website. The policies are grouped into five broad categories: The Role of Chiropractors; Practice Conduct; Education and Research; Chiropractic and Publicly Provided Services; Third Party, Discrimination and Trade Barriers. Policy is not a very glamorous part of an association’s profile, but it is an important part, as it gives both members and interested parties the view expressed by the organisation on pertinent issues. The policy has met approximately 10 times during the year and in between those meetings development work is done by members of the Committee to create or modify the wording of the proposed policy. The document is then circulated and any comments are included for discussion at the next meeting. The
discussion helps refine the views that the Committee think best reflects that of the Association and majority of members. This is refined over a number of meetings until the Committee decides the policy is ready for presentation to the Board for either adoption or further consideration. I would like to thank the members of the Committee for their commitment, effort and time to produce these important statements. Current committee members are Drs David Cahill, Stephen Crean, Roxanne Daniels, Adeline Soh, Greg Taylor, Mark Di Pasquale, and myself. The Committee would also like to thank Mr Bernard Rupasinghe for his assistance and wise counsel in helping to guide the process of policy development.
Women in Chiropractic Dr Paula-Stacey Thomas, Chair This year started with Dr Bettina Tornatora stepping down from the Chairperson’s role after four years of steering the infant national committee into a thriving and active group of supportive women, with each chapter in the country growing in members and engagement. With the Board’s approval, I volunteered to step into the role of Chairperson and have been following the Women in Chiropractic (WIC) charter which focuses on supporting female chiropractors primarily in the areas of: • leadership; • advocacy; and • collegiate connection. Also we said thank you and goodbye to: • Dr Susan Fergusson and welcomed Dr Amy Clibbens as our new NSW representative. • Dr Jolene Young and welcome Dr Alison Asher as our new QLD representative.
In our first meeting in February we had a plan for all the activities across the year in each region. However, as we are all very aware, by March everything changed with first wave of COVID-19 in Australia, meaning we all had to adapt and pivot all our ideas. This year ‘virtual support and connection’ has been the name of the game, as we have had four events at the time: 1. ‘Zoom the Couch’ with your WIC Committee - supporting WIC ladies and celebrating a Virtual Mother’s Day. 2. ‘Having it All’ webinar parts 1 & 2 presented by Drs Alison Bennet, Alison Asher and myself. 3. Supporting VIC WIC - reaching out on Zoom during level 4 restrictions. 4. ‘Associates and Principals: Bridging the Gap’ - presented by Drs Esyltt Graham, Chelsea Dickins, Harriet Walker, Mr Mark Werman from Wentworth Advantage and myself.
Last year WIC suggested to the CPD Committee that we should have a focus on women’s health needs at our annual ACA Conference. This was planned for October 2020 but has now been postponed until 2021 and we very much look forward to the exceptional array of speakers who have been arranged. It has become apparent to the Board that it is time to address the obvious gender disparity between the 43% of women who make up our membership and their lack of representation at a board level. It has been determined that to enhance and support more female chiropractors to step into leadership roles, that there will be some funding to go towards education and training in the areas of leadership, management and governance. The WIC Committee will play a part in assisting the Board with this directive and if that is something you are interested in, then please express your interest to the WIC Committee.
Annual Report 2020 | 49
aca@chiro.org.au 02 8844 0400 PO Box 255, Parramatta NSW 2124
chiro.org.au ABN 50 050 096 038
50 | Annual Report 2020