20 11
Master Builders Association of the ACT and Controlled Entity Financial Statements FOR THE YEAR ENDED 30 JUNE 2011
Contents
Contents.............................................................................................................................................Page Treasurer’s Report.......................................................................................................................................................3 2010 - 2011 Financial Report.................................................................................................................5 Operating Report..........................................................................................................................................5 Statement by Members of the Council of Management................................................................9 Independent Audit Report to the Members..............................................................................10-11 Statement of Comprehensive Income................................................................................................ 12 Statement of Financial Position............................................................................................................ 13 Statement of Changes to Equity........................................................................................................... 14 Statement of Cash Flows......................................................................................................................... 15 Notes to the Financial Statements.................................................................................................16-35
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Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
Treasurer’s Report
It is pleasing that this being my third report as Treasurer I am able to once again to reflect on a sound financial performance for Master Builders Association of the ACT and our related entity, MBA Group Training. Last year I was able to provide some comforting commentary on the response by the Australian economy against a background of uncertainty delivered a year earlier in the form of the Global Financial Crisis. The positive aspect of Australia’s economic performance against other developed economies during that previous year was in many ways staggeringly above average. This was reflected further in the ACT’s performance against other Australian jurisdictions. We have continued to defy expectations until now but indicators are that greater diligence will be needed to steer our way through the coming year or so. Tight financial management and constant scrutiny of our operations, both principles essential in good times and bad, will take on greater prominence with further uncertain times ahead. Despite all of the challenges, the volatility in world markets, and changes to the way we conduct our business, history does tell us that this is not the first time the industry has had to ride out a storm. The industry is resilient and there is much data to support the reality that there will be work ahead. Canberra Construction Snapshot and Australian Construction Industry Forecast data provides some room for optimism. The annual under build on residential dwellings in Australia alone says there is much work ahead. In providing the consolidated financial report to reflect the relationship between the Master Builders Association of the ACT and MBA Group Training, I present the following overview of the activities and performance of each entity during the 2010-11 financial year.
Master Builders Association of the ACT: A surplus of $250,145 has been recorded for MBA-ACT as the parent entity for the financial year ending 30 June 2011. This result exceeded the original budget forecast surplus notwithstanding some higher expenses associated with employment of a new technical services manager to provide assistance in building quality and planning issues. In ongoing uncertain economic times currently being experienced, the executive committee maintains a position where borrowings by the Association are kept at a minimum. We still retain the 400m² of space on the upper level of our building that
has income potential. There have been some discussions with potential users. All revenues and expenditures are closely monitored to ensure that delivery of member services are not put at risk and every opportunity is provided to enhance those services. Membership has remained steady during the financial year. Our major showpiece event, the Master Builders and Boral Excellence in Building Awards continues to achieve its objective to showcase the Association and work of members. We look to it as well as other events to provide excellent member networking opportunities. Communication with the membership is vital and a lot of work has taken place this year to further improve our website and other communication mediums to help members in their businesses. A budget surplus has been set and confirmed for the 2011-12 financial year. I remain confident that given the processes we have in place to monitor and adjust our activities I will be able to report on a sound result for MBA-ACT this time next year.
Master Builders Group Training: The result of MBA Group Training in the past year is a reflection of not only continued Government support for training activities but the diligence and hard work of the staff. It is a well known fact that our training operation has had to deal with difficult trading periods in the past and has required financial support by MBAACT. Pleasingly, we have achieved a surplus of $760,538 for the year ending 30 June 2011. We know with the continued uncertainty surrounding the financial markets and the impacts on activity in building and construction, our results can be varied and often quite quickly. This is why it is important for us to remain vigilant in this part of our operation. We slightly increased our apprentice numbers during the last year and pleasingly in the face of the predicted uncertainty placement with industry continued to be strong. As reported in the previous financial year, Construction Industry Induction Card (White Card) training kept the skills centre quite busy in the first half of the financial year with a steady stream of courses maintained into the new year. Builder’s licensing training continues to be in strong demand and we have introduced other new courses for work health and safety, energy rating and green building. Funding by the Commonwealth to recognize skills of existing workers has also ensured a busy training operation.
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
3
Treasurer’s Report (continued)
During the year we have been looking at the options around future expansion of our training activities and continue to discuss measures to facilitate that growth. This has included investigations of nearby land. We are currently preparing to provide additional covered space and storage area to cater for our outdoor training which is constantly in use. This will ensure more year round opportunities for training and better protection for those in training. Again, this has been a pleasing year for MBA Group Training and we look forward to the challenges ahead.
Conclusion: I conclude this report by thanking my executive committee colleagues for their diligence and support in helping us all keep our eye on the financial ball. The accounts team capably lead by Senior Management Accountant, Louise McCallum continues to produce timely and detailed information. It is with this information at hand that we can closely monitor the financial performance of the entities. I look forward to being in a position to report just as positively next year.
Simon Butt Treasurer
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Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
OPERATING REPORT for the year ended 30 June 2011
Your Members of the Council of Management present this report on Master Builders Association of the ACT and its controlled entity for the financial year ended 30 June 2011.
Members of the Council of Management The names of the Members of the Council of Management at any time during, or since the end of, the year are:
Right of Members to Resign As required to be disclosed by section 174 of the RAO Schedule (of the Workplace Relations Act 1996), in accordance with Rule 8 of the Association’s rules a member may resign from the Association by written notice addressed and delivered to a person designated for the purpose in the rules of the Association.
Mr Ross Barrett (President) Mr Simon Butt (Treasurer) Mr Sam Delorenzo resigned 8 October 2010 Mr Michael De Simone resigned 8 October 2010 Mr Peter Fairburn resigned 8 October 2010 Mr Hans Sommer Mr Peter Middleton (Alternate) Mr Andrew Kerec resigned 8 October 2010 Mr Stephen Wise (Alternate) resigned 1 November 2010 Mr Rob Purdon (Alternate) Ms Gracie Ferreira Mr David Jones appointed 8 October 2010 Mr Frank Porreca (Alternate) appointed 8 October 2010 Mr Valdis Luks appointed 8 October 2010 Mr David Howarth appointed 8 October 2010 Mr David Morgan (Alternate) appointed 8 October 2010 Mr Alan Seymour (Alternate) appointed 6 December 2010 Members of the Council of Management have been in Council since the start of the financial year to the date of this report unless otherwise stated.
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
5
OPERATING REPORT for the year ended 30 June 2011 Superannuation Trustees As required to be disclosed by the RAO Schedule (of the Workplace Relations Act 1996), no officer of the Association holds any position in relation to acting as a trustee of a superannuation entity or exempt public sector superannuation scheme, where a criterion for the officer holding such a position is that the officer is an officer of a registered organisation. The following is a listing of members who are trustees of superannuation funds:
Superannuation Trustees
6
Name Company
Name Company
Orlando Sajler
Poise Pty Ltd
Darren Orchard
G & H Aluminium Fabricators
Terry Davis
Davis S & J M
Mark Sutton
SMI Fitout Pty Ltd
Stewart Fawcett
Adept Building Pty Ltd
Peter Wright
Jorge Moreno
Herron Cleaning Services Pty Ltd
Construction Control Holdings Pty Ltd
Gabriel Gaha
Gaha Group Pty Ltd
Ross Burke
Modern Plaster Pty Ltd
Trevor Duncan
Duncan Homes Pty Ltd
Phil Robinson
Robinson Building Group
Steven Elliott
Ellcon
Stephen Seckar
Jewel Enterprises Pty Ltd
Robert Rosin
Rosin Building Pty Ltd
Sam Delorenzo
Delorco Pty Ltd
Ross Barrett
Woden Contractors Pty Ltd
Mladen Rogic
Modern Creative Designs Pty Ltd
Ken Hopkins
Hopkins, Ken
Bernado Da Silva
B & M Scaffolding Pty Ltd
Jason Duncan
Duncans Plumbing Services Pty Ltd
John MacGilvray
J J Joinery
Peter Sarris
NDH Constructions Pty Ltd
Tony Milne
Saltbush Roofing Pty Ltd
David Howarth
Blackett Homes (AUST) Pty Ltd
Harry Haralambous
HDL Projects Pty Ltd
Simon Butt
Manteena Pty Ltd
Bob Rutherford
Rutherford R.D
Simon Butt
Strine Construction Pty Ltd
Craig Williams
Swic Pacific
Boris Stojanoski
Bost Pty Ltd
Stefan Stefanac
Patrician Homes Pty Ltd
Chris Hudina
CDH Developments Pty Ltd
Tony Trobe
TT Architecture (ACT) Pty Ltd
Michael Medic
Adria Constructions Pty Ltd
Mark O’Shea
Kenro Services
Bruce Harman
H & H Subcontractors
Patrick Kirkland
Get Real Painting & Maintenance
Robert Fraser
QBG Constructions
David Cooper
Cooper D & L
Robert Purdon
Purdon Associates Pty Ltd
Wayne Richards
Erincole Building Services Pty Ltd
Craig Elvin
Elvin Group Pty Ltd
Andrew Haydon
Haydon & Company Pty Ltd
Wayne Gregory
Canberra Sand & Gravel Pty Ltd
Cathy Aloe
FGC Developments
Anthony Ikic
Aztec Homes
Anthony Lucas
Caliber Kitchens
Ian Carroll
Carroll Constructions (ACT) Pty Ltd
Anthony Ikic
Aztec Homes
Tony Lawless
A & J Bathrooms Pty Ltd
Ken Horsham
Community Housing Canberra Ltd
John Fielding
Bellavarde Constructions Pty Ltd
Ivan Domazet
Doma Constructions Pty Ltd
Peter Morrison
Able Landscaping Pty Ltd
Graham Woods
Plan-It Build
John Ainsworth
ABA Construction Managers Pty Ltd
Alan Joyce
Workrite Commercial Interiors
David Charman
John Hailey
Hailey, John
Charman Earthmoving & Heavy Haulage Pty Ltd
Alastair MacCallum
AMC Projects Pty Ltd
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
OPERATING REPORT for the year ended 30 June 2011
Superannuation Trustees (continued) Name Company
Name Company
Peter Jacob
Deemro Pty Ltd
Tony Marburg
Marburg Management Pty Ltd
Josip & Angelo Turcin
Solitaire Homes
Ian Carter
PBS Building (ACT) Pty Ltd
Bruce Douglas
Douglas Joinery Pty Ltd
Don Rowling
Col Alexander
Canberra Investment Corporation
A C & R Commercial Kitchens Pty Ltd
Paul Powderly
Bob Beaver
Beasec Enterprises Pty Ltd
Colliers International (ACT) Pty Ltd
Mimmi Freebody
MMM Bathrooms
Werner Kley
W.J & L.S Constructions Pty Ltd
Mike Raffety
Raffety, Mike
George Tanchevski
Classic Constructions
Mark De Jager
W T Partnership
Braden Roy Shield
Professional Tiling Services
Andrew Foster
Drewaire Constructions Pty Ltd
Patrick Seears
Seears Workwear
David Sutton
Sutton D
John Collet
Stephen Wise
Defire (ACT) Pty Ltd
Cercol Construction Services Pty Ltd
John Dennehy
Snowmax Pty Ltd
Robert Vidovic
M & R Investments Pty Ltd
David Sevi
Whiteholme (Canberra) Pty Ltd
Ric Butt
Strine Construction Pty Ltd
Bernie Wilson
Truss Me
Graham Reilly
John Harris
O’Connor J S Harris & Co
Huon Management Services Pty Ltd
Rade Draskovic
Viewmax Pty Ltd
Terry Fox
George Haridemos
New Age Living
Foxy’s Landscaping Australia Pty Ltd
Jason Korda
Contemporary Kitchens
Rohan Arnold
Mass Australia Pty Ltd
Peter Middleton
Woden Contractors Pty Ltd
Paul Bombardier
DSB Landscape Architects
Joe Pratezina
Monarch Building Solutions Pty Ltd
Andrew Cappuccio
Cappuccio A
Tim Swain
BDA Architects Pty Ltd
Andrew Kerec
Renaissance Homes
Barry Morris
Steven Beljanski
Clarke & Di Pauli Pty Ltd
Amalgamated Property Group Pty Ltd
Dennis Milin
Milin Bros Pty Ltd
Paul Hinds
Hinds Constructions
Joe Tokich
Helkeast Pty Ltd
Michael De Simone
Canberra Contractors Pty Ltd
John Queneau
Q Projects Pty Ltd
Nick Rowe
Rick Meneghel
Artistic Concrete Pty Ltd
NJR Building & Construction Pty Ltd
Antoni Paragalli
Paraco Projects
Peter Vincent
P & K Joinery Pty Ltd
Michael O’Brian
Ram Constructions
Peter Leary
Steve Barnsley
Mail Mcdonald Barnsley Pty Ltd
Reliance Building Services (AUST) Pty Ltd
Michael Cooper
Baxter Engineering (ACT) Pty Ltd
Jim Taylor
Taylor Jim Plumbing
Paul Thoms
The Playground People
Peter Glen
Glen Peter Constructions Pty Ltd
Ken Horsham
Community Housing Canberra Ltd
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
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OPERATING REPORT for the year ended 30 June 2011
Review of Operations
Number of Members
The consolidated profit of the consolidated group amounted to $1,010,683 (2010: $739,785). The profit of the parent entity amounted to $250,145 (2010: $198,698).
The number of persons who, at the end of the financial year, were recorded on the Register of Members was 1,119 (2010: 1,095).
A review of operations of the association and its subsidiary during the financial year and the results of those operations found that preparing the Journal in-house assisted in achieving an increase of revenue of 6% which resulted in an increase of profit of 36%.
Number of Employees
Significant Changes in the State of Affairs No significant changes in the association’s state of affairs occurred during the financial year.
The number of persons who were, at the end of the financial year, employees of the Association was 15, measured on a full time equivalent basis. Signed in accordance with a resolution of the Members of the Council of Management.
Principal Activities The principal activities of the association during the financial year were to represent all sectors of the local housing and construction industry. Events Subsequent to the End of Reporting Period
President
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the association, the results of those operations, or the state of affairs of the association in future financial years.
Treasurer
Likely Developments and Expect Results of Operations
Dated this 6th day of September 2011
The association expects to maintain the present status and level of operations. Likely developments in the operations of the association and the expected results of those operations in future financial years have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the association. Environmental Regulation The association’s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a state or territory.
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Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
STATEMENT BY MEMBERS OF THE Council of Management
We R Barrett and S Butt, being two members of the Council of Management of the Master Builders Association of the ACT, do state on behalf of the Council that in the opinion of the Council: 1. The financial statements and notes comply with the Australian Accounting Standards, mandatory professional reporting requirements and other authoritative pronouncements of the Australian Accounting Standards Board;
(iii) The financial records of the Master Builders Association of the ACT have been kept and maintained in accordance with the RAO Schedule and the RAO Regulations; (iv) The information sought in any request of a member of the Master Builders Association of the ACT or a Registrar duly made under section 272 of the RAO Schedule has been furnished to the member or Registrar; and
2. The financial statements and notes comply with the reporting guidelines of the Industrial Registrar for purposes of section 270 of the RAO Schedule;
(v) There has been compliance with any order for inspection of financial records made by the Commission under section 273 of the RAO Schedule.
3. The financial statements and notes give a true and fair view of the financial performance, financial position and cash flows of the reporting unit for the financial year to which they relate;
Signed in accordance with a resolution of the Members of the Council of Management passed on the 6th September 2011.
4. At the date of this report there are reasonable grounds to believe that the Master Builders Association of the ACT will be able to pay its debts as and when they fall due; and 5. During the financial year to which the financial report relates and since the end of that year:
President
(i) Meetings of the Council were held in accordance with the rules of the organisation including the rules of the branch concerned; (ii) The financial affairs of the Master Builders Association of the ACT have been managed in accordance with the rules of the organisation including the rules of the branch concerned;
Treasurer Dated this 6th day of September 2011
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
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INDEPENDENT AUDIT REPORT To the Members
Report on the Financial Report We have audited the accompanying financial report of of the ACT and controlled entity (the association) which comprises the statement of financial position as at 30 June 2011, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the statement by members of the Council of Management (the council).
Council’s Responsibility for the Financial Report The council of the association is responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Associations Incorporation Act 1991 (ACT) and for such internal control as the council determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preperationof the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the council, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have provide a basis for our audit opinion.
Auditor’s Responsibility Our responsibility is to express an opinion. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.
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Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
INDEPENDENT AUDIT REPORT To the Members
Auditor’s Opinion In our opinion, the financial report of the Master Builders’ Association of the ACT and controlled entity (the association) is in accordance with the Associations Incorporations Act 1991 (ACT) and the Workplace Relations Act 1996, including: (i) giving a true and fair view of the association’s financial position as at 30 June 2011 and of its performance for the year ended on that date; and (ii) complying with Australian Standards.
A.B Papps, PricewatehouseCoopers, 44 Sydney Ave, Forrest ACT 2603 Dated this 7th day of September 2011
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
11
STATEMENT OF COMPREHENSIVE INCOME for the Year Ended 30 June 2011
Consolidated Group Note
2011 $
2010 $
2010 $
9,632,382
9,060,654
3,354,772
3,142,052
(5,901,605)
(5,701,568)
(1,472,663)
(1,359,314)
(363,248)
(352,732)
(311,687)
(293,931)
Rent expense
(34,417)
(30,226)
(34,417)
(30,226)
Meetings and seminars
(15,965)
(13,467)
(15,905)
(13,062)
Printing, postage and stationery expense
(192,826)
(204,239)
(135,263)
(117,552)
Subscriptions
(147,657)
(137,880)
(139,392)
(130,912)
Consultant expense
(499,374)
(576,929)
(97,364)
(243,796)
Motor vehicle expense
(64,874)
(80,462)
(48,913)
(62,000)
Donations and sponsorship
(36,478)
(11,700)
(10,932)
(8,000)
Building awards expense
(421,744)
(283,031)
(421,744)
(283,031)
Worker’s compensation expense
(238,005)
(217,765)
(9,491)
(10,873)
Insurance expense
(63,314)
(62,637)
(37,041)
(34,634)
Skills Centre expenses
(13,493)
(14,802)
(13,493)
(14,802)
20,938
(9,473)
3,176
(3,176)
Other expenses
(649,637)
(623,958)
(359,498)
(338,045)
Profit for the year
1,010,683
739,785
250,145
198,698
-
-
-
-
Total comprehensive income for the year
1,010,683
739,785
250,145
198,698
Total comprehensive income attributed to members of the entity
1,010,683
739,785
250,145
198,698
Revenue
2
Employee benefits expense Depreciation and amortisation expense
Bad debts income/(expense)
Other comprehensive income
12
2011 $
Parent Entity
3
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
STATEMENT OF FINANCIAL POSITION as at 30 June 2011
Consolidated Group Note
Parent Entity
2011 $
2010 $
2011 $
2010 $
ASSETS CURRENT ASSETS Cash and cash equivalents
6
4,496,214
2,758,376
1,953,561
1,270,124
Trade and other receivables
7
887,206
1,260,842
315,139
393,571
Inventories
8
2,243
2,052
2,243
Other financial assets
9
Other current assets
10
TOTAL CURRENT ASSETS
620,000
2,052 620,000
30,576
116,202
23,829
35,676
5,416,239
4,757,472
2,294,772
2,321,423
NON-CURRENT ASSETS Trade and other receivables
7
Property, plant and equipment
11
8,419,676
8,540,289
8,230,618
8,376,128
Intangible Assets
12
59,451
50,459
59,451
50,459
Other non-current assets
10
TOTAL NON-CURRENT ASSETS TOTAL ASSETS
8,958
8,958
4,545
4,545
4,545
4,545
8,483,672
8,604,251
8,294,614
8,440,090
13,899,911
13,361,723
10,589,386
10,761,513
CURRENT LIABILITIES Trade and other payables
13
869,099
1,409,187
319,265
805,731
Short-term provisions
14
112,413
66,230
96,846
52,218
Other current liabilities
15
108,576
110,229
108,575
105,229
1,090,088
1,585,646
524,686
963,178
TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Long-term provisions
14
48,555
25,492
41,712
25,492
Other non-current liabilities
15
500,000
500,000
500,000
500,000
548,555
525,492
541,712
525,492
1,638,643
2,111,138
1,066,398
1,488,670
12,261,268
11,250,585
9,522,988
9,272,843
11,739,660
10,728,977
9,001,280
8,751,235
521,608
521,608
521,608
521,608
12,261,268
11,250,585
9,522,988
9,272,843
TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Retained earnings Reserves TOTAL EQUITY
23
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
13
STATEMENT OF CHANGES IN EQUITY For the Year Ended 30 June 2011
CONSOLIDATED GROUP
Balance at 1 July 2009
Retained Earnings $
Asset Revaluation Reserve $
Total $
9,989,192
521,608
10,510,800
739,785
-
739,785
-
-
-
COMPREHENSIVE INCOME Profit for the year Other comprehensive income for the year TOTAL COMPREHENSIVE INCOME Balance at 30 June 2010
739,785 10,728,977
739,785 521,608
11,250,585
COMPREHENSIVE INCOME Profit for the year Other comprehensive income for the year TOTAL COMPREHENSIVE INCOME Balance at 30 June 2011
PARENT ENTITY
Balance at 1 July 2009
1,010,683
1,010,683
-
-
1,010,683
1,010,683
11,739,660
521,608
12,261,268
Retained Earnings $
Asset Revaluation Reserve $
Total $
8,552,537
521,608
9,074,145
198,698
-
198,698
-
-
-
COMPREHENSIVE INCOME Profit for the year Other comprehensive income for the year TOTAL COMPREHENSIVE INCOME Balance at 30 June 2010
198,698 8,751,235
198,698 521,608
9,272,843
COMPREHENSIVE INCOME Profit for the year Other comprehensive income for the year TOTAL COMPREHENSIVE INCOME Balance at 30 June 2011
14
250,145
250,145
-
-
250,145 9,001,380
250,145
521,608
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
9,522,988
STATEMENT OF CASH FLOWS For the Year Ended 30 June 2011
Consolidated Group
Parent Entity
2011
2010
2011
2010
$
$
$
$
11,586,480
9,662,303
4,405,544
3,434,770
152,119
55,143
57,005
33,029
(9,711,611)
(8,868,754)
(3,564,793)
(3,356,846)
2,026,988
848,692
897,756
110,953
62,500
50,454
36,364
33,635
Purchase of property, plant and equipment
(351,650)
(203,057)
(250,683)
(165,743)
Net cash (used in) investing activities
(289,150)
(152,603)
(214,319)
(132,108)
Net increase/ (decrease) in cash held
1,737,838
696,089
683,437
(21,155)
Cash and cash equivalents at beginning of financial year
2,758,376
2,062,287
1,270,124
1,291,279
4,496,214
2,758,376
1,953,561
1,270,124
Note CASH FLOWS FROM OPERATING ACTIVITIES Receipts from ordinary activities Interest received Payments to employees and suppliers 16
Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment
Cash and cash equivalents at end of financial year
6
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
15
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 30 June 2011
The consolidated financial statements cover the Master Builders Association of the ACT and its controlled entity (MBA Group Training Limited), and the separate financial statements cover the Master Builders Association of the ACT as an individual parent entity. The Master Builders Association of the ACT is an association incorporated in the ACT under the Associations Incorporation Act 1991.
Note 1: Summary of Significant Accounting Policies Basis of Preparation The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) and the Associations Incorporation Act 1991 (ACT).
c) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses. Plant and Equipment Plant and equipment are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount. A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(e) for details of impairment).
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 to which they apply. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated.
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 association and the cost of the item can be measured reliably. All other repairs and maintenance are recognised in profit or loss during the financial period in which they are incurred.
The financial statements have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.
The depreciable amount of all fixed assets, including buildings and capitalised lease assets, is depreciated on a straight-line basis over the asset’s useful life commencing from the time the asset is available for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. The depreciation rates used for each class of depreciable assets are:
The financial statements were authorised for issue on 6th September 2011 by the members of the association. Accounting Policies a) Income Tax No provision for income tax is necessary as the association is exempt under Section 50-15 of the Income Tax Assessment Act 1997. b) Inventories Inventories are measured at the lower of cost and net realisable value. Inventories acquired at no cost, or for nominal consideration are valued at the current replacement cost
16
as at the date of acquisition.
Depreciation
Class of Fixed Asset
Depreciation Rate
Land and Building
2.5%
Plant and Equipment
6.7 – 50%
Motor Vehicle
22.50%
The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of comprehensive income. When revalued assets are sold, amounts included in the revaluation relating to that asset are transferred to retained earnings.
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 30 June 2011 Note 1: Summary of Significant Accounting Policies (continued) d) Financial Instruments
(ii) Loans and receivables
Initial recognition and measurement Financial assets and financial liabilities are recognised when the association becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the association commits itself to either purchase or sell the asset (ie trade date accounting is adopted).
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost.
Financial instruments are initially measured at fair value plus transaction costs except where the instrument is classified “at fair value through profit or loss”, in which case transaction costs are expensed to profit or loss immediately. Classification and subsequent measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest rate method, or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. Amortised cost is the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest rate method. The association does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the requirements of Accounting Standards specifically applicable to financial instruments. (i) Financial assets at fair value through profit or loss Financial assets are classified at “fair value through profit or loss” when they are held for trading for the purpose of short-term profit taking, where they are derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in fair value (ie gains or losses) being recognised in profit or loss.
(iii) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the association’s intention to hold these investments to maturity. They are subsequently measured at amortised cost using the effective interest rate method. (iv) Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either not capable of being classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments. They are subsequently measured at fair value with changes in such fair value (ie gains or losses) recognised in other comprehensive income (except for impairment losses and foreign exchange gains and losses). When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other comprehensive income is reclassified into profit or loss. (v) Financial liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Impairment At the end of each reporting period, the association assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether impairment has arisen. Impairment losses are immediately recognised in profit or loss. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit or loss at this point.
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
17
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 30 June 2011 Note 1: Summary of Significant Accounting Policies (continued) Derecognition Financial assets are derecognised where the contractual right to receipt of cash flows expires or the asset is transferred to another party, whereby the assocaition no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expire. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.
market yields on national government bonds with terms to maturity that match the expected timing of cash flows. h) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at-call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position. i)
e) Impairment of Assets
Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed. Any consideration deferred is treated as the provision of finance and is discounted at a rate of interest that is generally accepted in the market for similar arrangements. The difference between the amount initially recognised and the amount ultimately received is interest revenue.
At the end of each reporting period, the association assesses whether there is any indication that an asset may be impaired. The assessment will consider both external and internal sources of information. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of that asset, being the higher of the asset’s fair value less costs to sell and its value-in-use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is immediately recognised in profit or loss. Where it is not possible to estimate the recoverable amount of an individual asset, the association estimates the recoverable amount of the cash generating unit to which the asset belongs.
Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods and the cessation of all involvement in those goods. Revenue from the rendering of a service is recognised upon the delivery of the service to the customer.
f) Intangible Assets
Interest revenue is recognised using the effective interest rate method, which for floating rate financial assets is the rate inherent in the instrument.
Computer Software Websites and Databases are recognised at cost. Websites and Databases have a finite life and are carried at cost less any accumulated amortisation and impairment losses. It has an estimated useful life of 3 years. It is assessed annually for impairment.
Revenue from the provision of membership subscriptions is recognised on a straight-line basis over the financial year. All revenue is stated net of the amounts of goods and services tax (GST).
g) Employee Benefits Provision is made for the association’s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may not satisfy vesting requirements. Those cash outflows are discounted using
18
Revenue and Other Income
j)
Borrowing Costs Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 30 June 2011 Note 1: Summary of Significant Accounting Policies (continued) k) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers. l)
Trade and Other Payables Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the association during the reporting period that remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.
m) Comparative Figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.
n) Provisions Provisions are recognised when the association has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period. o) Key Estimates (i) Impairment The association assesses impairment at the end of each reporting period by evaluation of conditions and events specific to the association that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions. p) New Accounting Standards for Application in Future Periods No accounting standard has been adopted earlier than the application date as stated in the standard. Other new standards, revised standards, interpretations and amending standards that were issued prior to the signing of the statement by the Members of the Council of Management and are applicable to the future reporting period are not expected to have a material impact on the association.
Where the association has retrospectively applied an accounting policy, made a retrospective restatement or reclassified items in its financial statements, an additional statement of financial position as at the beginning of the earliest comparative period will be disclosed.
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
19
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 30 June 2011
Consolidated Group
Parent Entity
2011
2010
2011
2010
$
$
$
$
4,284,021
4,397,725
-
-
421,750
283,900
-
-
-
8,400
-
-
216,975
207,700
-
-
Project income
43,313
20,682
-
-
Publication sales
40,513
38,440
40,513
38,440
Skills centre funding
-
90,000
-
90,000
SNAPS
-
1,650
-
-
Sponsorship
286,064
282,000
286,064
282,000
Subscriptions
734,438
619,320
734,438
619,320
TAE funding
147,250
134,150
-
-
Training and Rebates
875,290
940,066
-
-
User choice
887,052
592,948
-
-
7,936,666
7,616,981
1,061,015
1,029,760
Annual dinner and social events
357,337
344,964
357,337
344,964
Building centre rent
106,396
136,360
106,396
136,360
-
-
415,000
375,000
Interest
152,119
55,143
57,005
33,029
Journal advertising
149,241
34,267
149,241
34,267
-
-
400,896
376,613
765,093
570,734
1,485,875
1,300,233
8,701,759
8,187,715
2,546,890
2,329,993
772,814
784,025
772,814
784,025
Profit on sale of fixed assets
18,841
8,392
17,213
3,935
Sundry income
88,060
63,377
17,855
24,099
Worker’s compensation reimbursement
50,908
17,145
-
-
930,623
872,939
807,882
812,059
9,632,382
9,060,654
3,354,772
3,142,052
Note 2: Revenue and Other Income Revenue Revenue from employer reimbursements, sales, subscriptions, sponsorship, government grants and other grants
Employer reimbursements Government grants GTTP funding Industry training fund
Other Revenue
Rent
Service fee Total Revenue Other Income Commissions and fees
Total Other Income Total Revenue and Other Income
20
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 30 June 2011
Consolidated Group
Parent Entity
2011
2010
2011
2010
$
$
$
$
100,479
104,188
61,733
60,518
Plant and equipment
73,918
64,328
61,103
49,197
Intangibles
13,361
8,902
13,361
8,902
175,490
175,314
175,490
175,314
363,248
352,732
311,687
293,931
Note
Note 3: Profit for the Year a) Expenses Depreciation and amortisation
Motor vehicle
Land and Building Total depreciation and amortisation b. Significant Revenue and Expenses: Employer reimbursements Employee benefits expense
4,284,021
4,397,725
-
-
(5,901,605)
(5,701,568)
(1,472,663)
(1,359,314)
Note 4: Key Management Personnel Any person(s) having authority and responsibility for planning, directing and controlling the activities of the association, directly or indirectly, including its Council members, is considered key management personnel.
Key management Personnel compensation Short-term employee benefits Post-employment benefits
781,177
902,170
655,961
683,316
80,453
101,474
65,344
83,000
861,630
1,003,644
721,305
766,316
25,000
21,300
14,000
11,900
850
800
450
400
2,600,309
2,586,250
1,293,851
1,269,724
235,795
171,326
-
-
1,659,260 -
-
659,260
-
4,496,214
2,758,376
1,953,561
1,270,124
Note 5: Auditors’ Remuneration Auditing or reviewing the financial report Note 6: Cash and Cash Equivalents Cash on hand Cash at bank ITF Short-term bank deposits 21 Reconciliation of cash Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the statement of financial position as follows:
Cash and cash equivalents
4,496,214
2,758,376
1,953,561
1,270,124
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
21
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 30 June 2011 Consolidated Group
Parent Entity
2011
2010
2011
2010
$
$
$
$
Accounts receivable
872,893
1,001,737
315,139
241,427
Provision for impairment
(19,133)
(40,070)
-
(3,176)
26,406
299,175
-
155,320
7,040
-
-
-
887,206
1,260,842
315,139
393,571
-
8,958
-
8,958
887,206
1,269,800
315,139
402,529
Note 7: Trade and Other Receivables
Note
Current
Sundry debtors Interest receivable Total current trade and other receivables
Non-current Sundry debtors Total trade and other receviables
Current trade receivables are non-interest bearing loans and accounts receivable and generally are receivable within 30 days. A provision for impairment is recognised against accounts receivable where there is objective evidence that an individual trade receivable is impaired.
Credit risk The association has no significant concentration of credit risk with respect to any single counterparty or group of counterparties. The main source of credit risk to the association is considered to relate to the class of assets described as accounts receivable.
The following table details the association’s trade and other receivables exposed to credit risk with ageing analysis and impairment provided for thereon. Amounts are considered as ‘past due’ when the debt has not been settled within the terms and conditions agreed between the association and the counterparty to the transaction. Receivables that are past due are assessed for impairment by ascertaining their willingness to pay and are provided for where there are specific circumstances indicating that the debt may not be fully repaid to the association. The balances of receivables that remain within initial terms (as detailed in the table) are considered to be of high credit quality.
Consolidated Group Gross Amount
Past Due and Impaired
2011
Past due but not impaired (days overdue) <30
31-60
61-90
>90
Within initial trade terms
Trade receivables
872,893
(19,133)
307,908
23,140
38,775
-
503,070
Other receivables
33,446
-
4,125
330
110
-
28,881
906,339
(19,133)
312,033
23,470
38,885
-
531,951
Trade receivables
1,001,737
(40,070)
221,804
59,772
62,093
-
658,068
Other receivables
308,133
-
7,085
12,052 229,923
8,958
50,115
1,309,870
(40,070)
228,889
71,824 292,016
8,958
708,183
Total 2010
Total
22
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 30 June 2011 Parent Entity Gross Amount
Past Due and Impaired
2011
Past due but not impaired (days overdue) <30
31-60
61-90
>90
Within initial trade terms
Trade receivables
315,139
-
164,818
7,682
13,534
-
129,105
Other receivables
-
-
-
-
-
-
-
315,139
-
164,818
7,682
13,534
-
129,105
Trade receivables
241,427
(3,176)
21,666
31,089
17,123
-
171,549
Other receivables
164,278
-
-
- 155,320
8,958
-
Total
405,705
(3,176)
21,666
31,089 172,443
8,958
708,183
Total 2010
The association does not hold any financial assets whose terms have been renegotiated, but which would otherwise be past due or impaired. Collateral Held as Security No collateral is held as security for any of the trade and other receivable balances.
Financial assets classified as loans and receivables Note
Consolidated Group
Parent Entity
2011 $
2010 $
2011 $
2010 $
887,206
1,260,842
315,139
393,571
Trade and other receivables: Total current Total non - current Sundry debtors
8,958
Total trade and other receivables
21
887,206
1,269,800
8,958 315,139
Consolidated Group Note 8: Inventories
Note
402,529
Parent Entity
2011 $
2010 $
2011 $
2010 $
1,852
1,426
1,852
1,426
391
626
391
626
2,243
2,052
2,243
2,052
-
620,000
-
620,000
-
620,000
-
620,000
-
620,000
-
620,000
Current At cost - contracts - books Note 9: Other Financial Assets Held-to-maturity financial assets
9a
a. held-to-maturity financial assets comprise: Term deposit Total held-to-maturity financial assets
21
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
23
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 30 June 2011
Consolidated Group
Parent Entity
2011 $
2010 $
2011 $
2010 $
30,576
116,202
23,829
35,676
4,545
4,545
4,545
4,545
Land and building â&#x20AC;&#x201C; At cost
8,259,769
8,268,942
8,259,769
8,268,942
Accumulated depreciation
(350,804)
(175,314)
(350,804)
(175,314)
7,098,965
8,093,628
7,908,965
8,093,628
366,811
315,339
258,460
232,025
(164,639)
(90,722)
(125,934)
(64,831)
202,172
224,617
132,526
167,194
447,230
449,794
271,468
251,643
(138,691)
(227,750)
(82,341)
(136,337)
308,539
222,044
189,127
115,306
8,419,676
8,540,289
8,230,618
8,376,128
Note 10: Other Assets
Note
Current Prepayments Non-current Other investments Note 11: Property, Plant and Equipment
Plant and equipment - at fair value Accumulated depreciation Motor vehicles - at cost Accumulated depreciation Total property, plant and equipment
24
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 30 June 2011
Movements in carrying amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Consolidated Group
Plant & Equipment
Land & Building
Motor Vehicles
Total
$
$
$
$
8,255,143
185,052
282,931
8,723,126
Additions
13,799
103,893
85,366
203,058
Disposals
-
-
(136,987)
(136,987)
(175,314)
(64,328)
(104,188)
(343,830)
Depreciation write back
-
-
94,922
94,922
Balance at 30 June 2010
8,093,628
224,617
222,044
8,540,289
(56,364)
-
-
(56,364)
Additions
47,191
51,473
230,634
329,298
Disposals
-
-
(233,196)
(233,196)
(175,490)
(73,918)
(100,479)
(349,887)
-
-
189,536
189,536
7,908,965
202,172
308,539
8,419,676
8,255,143
112,499
157,474
8,525,116
13,799
103,892
48,052
165,743
Balance at 1 July 2009
Depreciation expense
Adjustment to remove GST
Depreciation expense Depreciation write back Carrying amount at 30 June 2011 Parent Entity Balance at 1 July 2009 Additions Disposals
-
-
(82,289)
(82,289)
(175,314)
(49,197)
(60,518)
(285,029)
Depreciation write back
-
-
52,587
52,587
Balance at 30 June 2010
8,093,628
167,194
115,306
8,376,128
(56,364)
-
-
(56,364)
Additions
47,191
26,434
154,705
228,330
Disposals
-
-
(134,879)
(134,879)
(175,490)
(61,103)
(61,733)
(298,326)
-
-
115,729
115,729
7,098,965
132,525
189,128
8,230,618
Depreciation expense
Adjustment to remove GST
Depreciation expense Depreciation write back Carrying amount at 30 June 2011
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
25
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 30 June 2011
Consolidated Group Note 12: Intangible Assets Capitalised website development costs Accumulated amortisation Net carrying value Capitalised database development costs
Parent Entity
2011 $
2010 $
2011 $
2010 $
28,940
6,003
28,940
6,003
(13,383)
(2,997)
(13,383)
(2,997)
15,557
3,006
15,557
3,006
61,459
53,358
61,459
53,358
(17,565)
(5,905)
(17,565)
(5,905)
Net carrying value
43,894
47,453
43,894
47,453
Total intangible assets
59,451
50,459
59,451
50,459
Accumulated amortisation
Movements in carrying amounts
Movements in the carrying amounts for intangibles between the beginning and the end of the current financial year:
Consolidated Group
Balance at 1 July 2009 Additions Amortisation expense Balance at 30 June 2010
Website Development Costs $
Database Development Costs $
6,003
53,358
59,361
-
-
-
(2,997)
(5,905)
(8,902)
Total $
3,006
47,453
50,459
Additions
19,940
2,413
22,353
Amortisation expense
(7,389)
(5,972)
(13,361)
Carrying amount at 30 June 2011
15,557
43,894
59,451
6,003
53,358
59,361
-
-
-
(2,997)
(5,905)
(8,902)
3,006
47,453
50,459
Parent Entity Balance at 1 July 2009 Additions Amortisation expense Balance at 30 June 2010
26
Additions
19,940
2,413
22,353
Amortisation expense
(7,389)
(5,972)
(13,361)
Carrying amount at 30 June 2011
15,557
43,894
59,451
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 30 June 2011
Consolidated Group
Parent Entity
2011 $
2010 $
2011 $
2010 $
Trade creditors and accruals
582,273
1,095,494
233,860
723,763
Short-term employee benefits
286,826
313,693
85,405
81,968
869,099
1,409,187
319,265
805,731
869,099
1,409,187
319,265
805,731
-
-
-
-
869,099
1,409,187
319,265
805,731
Less annual leave entitlements
(286,826)
(313,693)
(85,405)
(81,968)
Less GST payable
(222,452)
(275,346)
(82,882)
(55,888)
Less wage accrual
(78,050)
-
(11,048)
-
Less PAYG payable
(70,757)
(98,658)
(25,472)
(35,214)
211,014
721,490
114,458
632,661
Note 13: Trade and Other Payables
Note
Current
13a
a. Financial liabilities at amortised cost classified as trade and other payables
Trade and other payables: - total current - total non-current
Financial liabilities as trade and other payables
21 Note
Note 14: Provisions Opening balance at 1 July 2010
91,722
77,710
Additional provisions raised during year
69,246
60,848
160,968
138,558
Balance at 30 June 2011 Analysis of Total Provisions Current Non-Current
112,413
66,230
96,846
52,218
48,555
25,492
41,712
25,492
160,968
91,722
138,558
77,710
Provision for Long-term Employee Benefits A provision has been recognised for employee entitlements relating to long service leave. In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based on historical data. The measurement and recognition criteria relating to employee benefits has been included in Note 1 to this report.
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
27
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 30 June 2011
Consolidated Group Note 15: Other Liabilities
Parent Entity
2011 $
2010 $
2011 $
2010 $
Unearned income
14,050
31,965
14,050
26,965
Work in progress
93,910
68,678
93,910
68,678
Current
Funds held for third parties
616
9,586
615
9,586
108,576
110,229
108,575
105,229
Dunlop house loan
40,000
40,000
40,000
40,000
Unearned income
100,000
100,000
100,000
100,000
Total non-current other liabilities
500,000
500,000
500,000
500,000
Total current other liabilities Non-current
Consolidated Group Note 16: Cash Flow Information
Parent Entity
2011 $
2010 $
2011 $
2010 $
1,010,683
739,785
250,145
198,698
Depreciation and amortisation
363,248
352,734
311,687
293,933
Net gain on disposal of fixed assets
(18,841)
(8,392)
(17,213)
(3,935)
-
40,070
-
3,176
56,363
-
56,363
-
Decrease in trade and other receivables
382,594
422,600
87,390
654,650
Decrease/(increase) in financial assets
620,000
(620,000)
620,000
(620,000)
(191)
181
(191)
181
Reconciliation of cash flow from operations with profit Profit Cash flows excluded from profit attributable to operating activities Non-cash flows in profit:
Impairment expense Adjustment to fixed assets Changes in assets and liabilities:
(Increase)/decrease in inventories
85,626
377,313
11,847
399,356
(540,088)
(392,340)
(486,466)
(749,625)
(Decrease)/increase in other liabilities
(1,652)
8,792
3,346
8,793
Increase/(decrease) in employee provisions
69,246
(72,051)
60,848
(74,274)
2,026,988
848,692
897,756
110,953
Decrease in other assets (Decrease) in trade and other payables
28
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 30 June 2011
Consolidated Group Note 17: Capital and Leasing Commitments
Parent Entity
2011 $
2010 $
2011 $
2010 $
(a) Operating Lease Commitments Non-cancellable operating leases contracted for but not recognised in the financial statements Payable â&#x20AC;&#x201C; minimum lease payments - not later than 12 months
6,112
6,112
6,112
6,112
- between 12 months and 5 years
6,111
12,223
6,111
12,223
-
-
-
-
12,223
18,335
12,223
18,335
- greater than 5 years
The telephone system lease, which commenced in September 2008, is a 60 month lease, with rent payable monthly in advance.
Note 18 : Related Party Transactions Transactions with related parties The following Members of the Council and their related companies have had financial transactions with the association during the financial year. All monies received from the Members of the Council or their related companies relate to subscriptions or normal trading operations of the association. Consolidated Group Executive Member
Related Company
Total value of Transactions
Mr Ross Barrett/ Mr Peter Middleton
Woden Contractors Pty Ltd
$207,384
Mr Simon Butt/ Mr Rod Mitton
Manteena
$206,921
Mr Sam Delorenzo
Delorco
$31,082
Mr Andrew Kerec
Renaissance Homes
$2,975
Mr Hans Sommer
Village Building Company
$44,520
Mr Peter Fairburn
CE Industries
$820
Mr Damian Dawes
Smart Housing
$56,189
Mr Ian Carter/Mr Warren Ahrens
PBS Building
$16,927
Mr Mark Crawford/ Mr Micheal de Simon
Canberra Commercial Contractors
$105,261
Mr Alan Seymour/ Mr Stephen Wise
St Hilliers Contracting
$19,426
Mr David Morgan
A Murray
-
Mr Frank Porreca
Benchmark
-
Mr Rob Purdon
Purdon & Associates
$1,080
Mr Valdis Luks
G E Shaw
$12,539
Mr David Jones
Guideline Pty Ltd
$9,138
Mr David Howarth
Blackett Homes
$6,970
Mr Gracie Ferreira
Pacific Formwork
$1,415
Mr Tony Toscan
Toscan Glass
-
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
29
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 30 June 2011
Parent Entity Executive Member
Related Company
Total value of Transactions
Mr Ross Barrett/ Mr Peter Middleton
Woden Contractors Pty Ltd
$15,172
Mr Simon Butt/ Mr Rod Mitton
Manteena
$25,967
Mr Sam Delorenzo
Delorco
$950
Mr Andrew Kerec
Renaissance Homes
$2,975
Mr Hans Sommer
Village Building Company
$44,520
Mr Peter Fairburn
CE Industries
$820
Mr Alan Seymour/ Mr Stephen Wise
St Hilliers Contracting
$19,426
Mr David Morgan
A Murray
-
Mr Frank Porreca
Benchmark
-
Mr Warren Ahrens
PBS Building
$9,219
Mr Micheal de Simon
Canberra Commercial Contractors
$3,550
Mr Rob Purdon
Purdon & Associates
$1,080
Mr Valdis Luks
G E Shaw
$12,539
Mr David Jones
Guideline Pty Ltd
$9,138
Mr David Howarth
Blackett Homes
$6,970
Mr Gracie Ferreira
Pacific Formwork
$1,415
Note 19 : Events after the Reporting Period There have been no events subsequent to reporting date which require disclosure in the financial statements.
Note 20 : Contingent Liabilities and Assets There are no contingent liabilities or assets as at 30 June 2011 which require disclosure in the financial statements (2010: nil).
30
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 30 June 2011
Note 21 : Financial Risk Management The associationâ&#x20AC;&#x2122;s financial instruments consist mainly of deposits with banks and accounts receivable and payable. The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows: Consolidated Group Note
Parent Entity
2011 $
2010 $
2011 $
2010 $
Financial assets Cash and cash equivalents
6
4,496,214
2,758,376
1,953,561
1,270,124
Loans and receivables
7
887,206
1,269,800
315,139
402,529
9
-
620,000
-
620,000
5,383,420
4,648,176
2,268,700
2,292,653
211,014
721,490
114,458
632,661
211,014
721,490
114,458
632,661
Held-to-maturity financial assets - Term deposits Total financial assets Financial liabilities Financial liabilities at amortised cost - Trade and other payables
13a
Total financial liabilities
Financial Risk Management Policies The Council of Managementâ&#x20AC;&#x2122;s overall risk management strategy seeks to ensure that the association meets its financial targets, whilst minimising potential adverse effects on cash flow short falls.
Specific Financial Risk Exposures and Management The main risks the association is exposed to through its financial instruments are credit risk, liquidity risk and market risk relating to interest rate risk and equity price risk. a) Credit risk Exposure to credit risk relating to financial assets arises from the potential nonperformance by counterparties of contract obligations that could lead to a financial loss to the association. Credit risk is managed through maintaining procedures (such as regular monitoring of exposure and monitoring of the financial stability of significant customers and counterparties) ensuring, to the extent possible, that members and counterparties to transactions are of sound credit worthiness.
Risk is also minimised through investing surplus funds in financial institutions that maintain a high credit rating that the board of directorâ&#x20AC;&#x2122;s has otherwise cleared as being financially sound. Credit risk exposures The maximum exposure to credit risk by class of recognised financial assets at the end of the reporting period is equivalent to the carrying value and classification of those financial assets (net of any provisions) as presented in the statement of financial position. There is no collateral held by the association securing trade and other receivables. Trade and other receivables that are neither past due or impaired are considered to be of high credit quality. Aggregates of such amounts are detailed in Note 6. The association has no significant concentration of credit risk exposure with any single counterparty or group of counterparties. Details with respect to credit risk of trade and other receivables are provided in 6.
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
31
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 30 June 2011 Note 21 : Financial Risk Management (continued)
The next tables reflect an undiscounted contractual maturity analysis for financial liabilities.
b) Liquidity risk
Cash flows realised from financial assets reflect management’s expectation as to the timing of realisation. Actual timing may therefore differ from that disclosed. The timing of cash flows presented in the table to settle financial liabilities reflects the earliest contractual settlement dates.
Liquidity risk arises from the possibility that the association might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. The association manages this risk through the following mechanisms: • • • •
Preparing budgets; Maintaining a reputable credit profile; Managing credit risk related to financial assets; and Only investing surplus cash with major financial institutions.
Within 1 Year
1 to 5 Years
Total contractual cash flow
2011
2010
2011
2010
2011
2010
$
$
$
$
$
$
Trade and other payables
211,014
726,490
-
-
211,014
726,490
Total expected outflows
211,014
726,490
-
-
211,014
726,490
4,496,214
2,758,376
-
-
4,496,214
2,758,376
887,206
1,260,842
-
8,958
887,206
1,269,800
-
620,000
-
-
-
620,000
Total anticipated inflows
5,383,420
4,639,218
-
8,958
5,383,420
4,648,176
Net inflow on financial instruments
5,172,406
3,912,728
-
8,958
5,172,406
3,921,686
2011
2010
2011
2010
2011
2010
$
$
$
$
$
$
Trade and other payables
114,458
632,661
-
-
114,458
632,661
Total expected outflows
114,458
632,661
-
-
114,458
632,661
1,953,561
1,270,124
-
-
1,953,561
1,270,124
315,139
393,571
-
8,958
315,139
402,529
Consolidated Group Financial liabilities due for payment
Financial assets – cash flows realisable Cash and cash equivalents Trade and other receivables Held-to-maturity financial assets
Parent Entity Financial liabilities due for payment
Financial assets – cash flows realisable Cash and cash equivalents Trade and other receivables
-
620,000
-
-
-
620,000
Total anticipated inflows
2,268,700
2,283,695
-
8,958
2,268,700
2,292,653
Net inflow on financial instruments
2,154,242
1,651,034
-
8,958
2,154,242
1,659,992
Held-to-maturity financial assets
32
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 30 June 2011 Financial assets pledged as collateral
ii. Price risk
No financial assets have been pledged as security for any financial liability.
The association is not exposed to price risk.
c) Market risk i. Interest rate risk Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting period whereby a future change in interest rates will affect future cash flows.
Sensitivity analysis The following table illustrates sensitivities to the associationâ&#x20AC;&#x2122;s exposures to changes in interest rates. The table indicates the impact on how profit and equity values reported at the end of the reporting period would have been affected by changes in the relevant risk variable that management considers to be reasonably possible. These sensitivities assume that the movement in a particular variable is independent of other variables. Profit $
Equity $
+/- 44,954
+/- 44,954
+/- 33,776
+/- 33,776
Year Ended 30 June 2011 +/- 1% in interest rates
+/- 19,531
+/- 19,531
Year Ended 30 June 2010 +/- 1% in interest rates
+/- 18,897
+/- 18,897
Consolidated Group Year Ended 30 June 2011 +/- 1% in interest rates Year Ended 30 June 2010 +/- 1% in interest rates Parent Group
No sensitivity analysis has been performed on foreign exchange risk, as the association is not exposed to foreign currency fluctuations.
Net Fair Values Fair value estimation The fair values of financial assets and financial liabilities are presented in the following table and can be compared to their carrying values as presented in the statement of financial position. Fair values are those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an armâ&#x20AC;&#x2122;s length transaction.
Fair values derived may be based on information that is estimated or subject to judgement, where changes in assumptions may have a material impact on the amounts estimated. Areas of judgement and the assumptions have been detailed below. Where possible, valuation information used to calculate fair value is extracted from the market, with more reliable information available from markets that are actively traded. In this regard, fair values listed for listed securities are obtained from quoted market bid prices.
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
33
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 30 June 2011
Consolidated Group
2011 Footnote
2010
Net Carrying Value
Net Fair Value
Net Carrying Value
Net Fair Value
Financial assets Cash and cash equivalents
(i)
4,496,214
4,496,214
2,758,376
2,758,376
Trade and other receivables
(i)
887,206
887,206
1,269,800
1,269,800
Held-to-maturity financial assets
(ii)
-
-
620,000
620,000
5,383,420
5,383,420
4,648,176
4,648,176
211,014
211,014
726,490
726,490
211,014
211,014
726,490
726,490
Total financial assets Financial liabilities Trade and other payables
(i)
Total financial liabilities Parent Group Financial assets Cash and cash equivalents
(i)
1,953,561
1,953,561
1,270,124
1,270,124
Trade and other receivables
(i)
315,139
315,139
402,259
402,259
Held-to-maturity financial assets
(ii)
-
-
620,000
620,000
2,268,700
2,268,700
2,292,383
2,292,383
114,458
114,458
632,661
632,661
114,458
114,458
632,661
632,661
Total financial assets Financial liabilities Trade and other payables
(i)
Total financial liabilities
The fair values disclosed in the above tables have been determined based on the following methodologies: (i) Cash and cash equivalents, trade and other receivables and trade and other payables are shortterm instruments in nature whose carrying value is equivalent to fair value. Trade and other payables exclude amounts provided for relating to annual leave, GST and wages accrual, which is outside the scope of AASB 139. (ii) For held-to-maturity assets the value of the term deposit on inception is used.
Note 22: Capital Management
Management ensures that the overall risk management strategy is in line with this objective. Management operates under policies approved by the Council of Management. There have been no changes to the strategy adopted by management to control the capital of the association since previous year.
Note 23: Reserves Asset Revaluation Reserve The asset revaluation reserve records the revaluation of non-current assets.
Management control the capital of the association to ensure that adequate cash flows are generated to fund its operations and that returns from investments are maximised.
34
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 30 June 2011
Note 24: Association Details The principal place of business of the association is:
Master Buildersâ&#x20AC;&#x2122;Association of the ACT 1 Iron Knob Street FYSHWICK ACT 2609
Note 25: Prescribed Disclosure Under s272 (5) of the RAO Schedule As per s272(5) of the RAO Schedule (to the Workplace Relations Act 1996) the Association gives the following notice to its members: 1) A member of the Association, or a Registrar, may apply to the Association for specified prescribed information in relation to the Association under s272(1). 2) The Association shall, on application made under subsection 272(1) by a member of the Association or a Registrar, make specified information available to the member or Registrar in such manner, and within such time, as is prescribed under s272(2). 3) A Registrar may only make an application under subsection 272(1) at the request of a member of the Association, and the Registrar shall provide to a member information received because of an application made at the request of the member under s272(3).
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011
35
FINANCIAL STATEMENTS
20 11
36
Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011