SPASA Australia Annual Report 2019

ANNUAL REPORT

2019

The Other Side Landscapes - Lighting Feature

CONTENTS OUR ORGANISATION

2

OUR DIRECTORS

3

ADVISORY GROUPS

4

CHAIRPERSON REPORT

5

FINANCE REPORT

7

2019 ACCOMPLISHMENTS

8

A BETTER LIFE

17

AWARDS OF EXCELLENCE WINNERS

18

2019 SPONSORS & PARTNERS

23

AUDITED FINANCIAL REPORT

24

Queensland Family Pools - Inground Spa

37 South Pools - Pool Landscape Design

OUR ORGANISATION Dear Members, Welcome to the 2019 Annual General Report for the Swimming Pool & Spa Association of Australia Ltd (SPASA) and its consolidated entities.

Our function is to empower the industry in the development, promotion and delivery of quality representation, resources, benefits and services to its members.

SPASA is the largest peak Swimming Pool & Spa industry body in the southern hemisphere and is dedicated to the improvement of the health and happiness of the community through the promotion and growth of the pool, spa and outdoor living industries.

The Association represents the entire Australasian aquatic leisure industry, recognising five key pillars to ensure relevance and credibility to all members.

These are: • People: to empower and develop members through improved skills and knowledge • Promotion: of a professional trade delivering exceptional products that improve the health and wellness of the community • Representation: to advocate responsible outcomes for members and consumers at local, state, federal and international levels • Member Services: to provide exclusive products, services and networking delivered locally representing all sectors of the industry • Corporate Support: to adopt a consistent improvement model for an effective and efficient corporate structure Our members improve the lives of a large percentage of the community by facilitating the health, fun and wellness of swimming.

Lindsay McGrath Chief Executive Officer

PAGE 2

SPASA AUSTRALIA - ANNUAL REPORT 2019

OUR DIRECTORS

Rob Kruber Chairperson Spa Industries

Troy Cartwright Poolwerx

Lynley Papineau Aquatic Leisure Technologies

Neil Davey Crackerjack Consulting

Adam Jaworski Fluidra

John Daniel Jade Swimming Pools

Andrew Jakovac Majestic Pools & Landscapes

Garth Jackson Triton Pool & Spa Inspections

Elena Gosse Australian Innovative Systems

Stefan Ossenberg Protector Aluminium

Resigned 29/7/19

OUR TEAM Lindsay McGrath Luke Daly Peter Holland Rodney Smith Melinda Zoanetti

Chief Executive Officer Membership Executive QLD RTO Manager Membership Executive SA Accounts Manager

SPASA AUSTRALIA - ANNUAL REPORT 2019

Spiros Dassakis Nicole Daws Suzie Kent David Stennett

Chief Operating Officer RTO Administrator Communications Manager Sales & Media Manager

PAGE 3

Placid Pools - Freeform Pool up to $50,000

ADVISORY GROUPS SPASA’s commitment to providing quality representation and services to our members is unwavering.

Advisory Groups are dedicated committees formed to ensure the collective voice of local members is heard and valued. Committee members play a key role providing advice and feedback to the SPASA Executive and Board in line with the strategy’s and objectives of SPASA. Understanding • Input provided and sought from members and stakeholders. SPASA’s investment in dedicated field staff has increased its ability to collect information from groups and individuals.

Policy Research & Development • Advisory Groups are created to provide guidance and peer review for regional and specific policies. Multiple groups are providing monthly or quarterly feedback to SPASA on a diverse range of standards, guidelines and best practice documents.

Approval Mechanism • Ethical and good governance processes are followed including Board direction on strategy and risk management.

Understanding

Monitoring

Research

Communication

Approval

Execution • Implementation through various channels of advocacy, representation and promotions.

Communication • Workshops such as the 2019 Pool Barrier Forums (AS 1926.1) held nationwide provided each region with direct input into current execution of policies.

Monitoring • Review against the association objectives and the projects assumptions are held regularly with monthly reporting to the Board.

PAGE 4

Execution

SPASA AUSTRALIA - ANNUAL REPORT 2019

CHAIRPERSON REPORT SPASA continues to improve and expand its reach and delivery of our primary constitutional objective to “promote and grow the industry”. More training, advocacy and promotions were delivered to industry and consumer than ever before.

Membership volume ended the calendar year at 834 members, which is a 17% attraction of new members throughout 2019. For a mature industry, this growth highlights the positive changes being made by SPASA to add value to businesses. Last year’s investment of dedicated development staff, Luke Daly and Rodney Smith worked tirelessly and SPASA welcomed new members from all regions including our first Northern Territory, Tasmania and New Zealand members.

COVID-19 will provide a challenge for all business including our Association. As the association has been designed to evolve and be self sustainable, I am confident that the structure and strategies in place will see SPASA deliver value to our Members even in these unprecedented times.

SPASA’s emphasis on the creation of a professional network of skilled trades people is supported by our Registered Training Organisation. Our dedicated and professional staff, RTO Manager Peter Holland and Training Administrator Nicole Daws oversaw the addition of new qualifications, courses and workshops resulting in largest volume of education engagement in our history.

After the success of SPLASH! Pool & Spa Trade Show in 2018 and the expansion of the SPLASH! Magazine, SPASA invested in the purchasing the Pool+Spa Magazine. David Stennett the Media SPASA AUSTRALIA - ANNUAL REPORT 2019

Sales Manager, added this to his portfolio to extend SPASA’s reach to more businesses and provides content and skills to transition towards consumer promotion of the pool and spa industry.

The Awards of Excellence exceeded forecasts number of attendees with the Queensland Awards gala having over 30% of first time attendees. In addition to the Australian events, May 2019 saw SPASA host the first ever Pool & Spa Show Auckland, New Zealand providing a new and dedicated promotional event directed at consumers to purchase a new pool or spa.

The attendees at the Leadership Convention held in August 2019 received world class speakers prior to the National Awards of Excellence. SPASA continues to add new programs to improve leadership skills with Women in Leadership webinars held through the year.

The role of SPASA to promote pools and spas must be balanced with the protection of the industry with hundreds of hours are being dedicated to lobbying for consistent regulations. Fencing standard AS1926.1 highlighted the importance of the value provided with over 3000 submission s received, after SPASA held workshops nationally.

The commitment of Spiros Dassakis in lobbying all levels of government continues to set a standard that is the envy of other associations.

Communications exploded in 2019, with significant social media supporting our traditional events, Suzie Kent SPASA’s Communications Manager has ensured more businesses and consumers are receiving valued and promotional information.

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Splish Splash Pools - Concrete Pool over $100,000

When reflecting on my second year as Chairperson, I am proud of what we have achieved, but even with the best plans the world can throw a curve ball like we are experiencing with Covid 19.

This is when Associations show their importance to an industry and SPASA has done just that, with lobbying for our Members to become essential services to keeping our Industry up to date with all Government announcements and just being there for support. Individually these times would be impossible to navigate through but together our industry will not just survive but flourish.

The Boards goal was to build a sustainable association to represent and serve our industry.

The performance of SPASA through this epidemic has been outstanding and we should all be proud and continue to support our association.

Progress does not happen without hard work and dedication. I would like to take this opportunity to thank SPASA CEO, Lindsay McGrath for his unwavering dedication and passion for our industry. Congratulations on delivering a strategy that benefits not only our members but all of our industry.

Lindsay leads a professional and passionate team who continue to put in the hard yards to not only support our members but also propel our industry forward.

Thank you to Spiros Dassakis, Nicole Daws, Luke Daly, Peter Holland, Suzie Kent, Rodney Smith, David Stennett and Melinda Zoanetti who gets a special thanks for accounts support as SPASA continues to grow.

The SPASA Board is very exciting to be a part of.

Amongst our board members, we possess a very diverse and incredibly strong array of skill sets that combined, ensure that SPASA continues to provide our industry with the best representation possible.

Thank you to my fellow board members, Troy Cartwright, John Daniel, Neil Davey, Elena Gosse, Garth Jackson, Andrew Jakovac, Adam Jaworski, Lynley Papineau, and Stefan Ossenberg.

In summary, the past 12 months has seen SPASA consolidate in many areas for sustainability and growth in areas that add value to members. I am confident that the future will see more members, benefits and influential representation by our Member driven association.

Rob Kruber Chairperson

PAGE 6

SPASA AUSTRALIA - ANNUAL REPORT 2019

FINANCE REPORT It is our pleasure to submit to members the consolidated Annual Report of the Swimming Pool & Spa Association of Australia Ltd (SPASA).

The results demonstrate a continued focus on building a strong and sustainable financial position for the Association, with net earnings of $69,102 and continued strong performances in all business streams supporting the overall result.

SPASA reports all entities in a consolidated manner, including the Registered Training Organisation (RTO), the Trustee of the Water Tight trust fund and its New Zealand operations.

This provides a total true and correct report of all financial operations within SPASA Australia’s responsibility.

It is important to note the significant variance to prior year is due to the biennial SPLASH! Trade Expo in 2018 as well as investments made in education, people and projects all aimed at building for the sustainable future of the Association. This focus on a sustainable future also included the purchase of an office in South Australia moving the local team to a new and more modern premises and farewelling the leased site of over two decades.

The Association’s external Auditors, Loren Datt Audit have conducted the Audit Report for the year ending 31 December 2019, herein attached for Members.

Key points from the results include: • Operational efficiency and growth programs resulted in a full year net surplus of $69,102 with Net Assets and Equity of $4,336,651; • Membership has increased with 17% more members joining SPASA, with pro rata fees increasing the membership revenue by 4% over prior year; • The Investment strategy saw the acquisition of the Pool+Spa Media business, which extends the Associations print and media portfolio to continue supporting the Industry; • Training revenue grew by 27% over 2018 and represented 14% of total income.

Investments have been made to expand courses and qualifications to meet the industry’s educational and professional development requirements; • An investment was made to purchase an office in South Australia to help meet the future requirements of the industry, with a value of $837,690. The SPASA office in NSW is also owned by the Association with a valuation reflecting $770,000.

In addition to its financial results the Association continues to work on building both efficient and smart practices to support operations as well as corporate governance and financial management to support members long term interests.

Garth Jackson Finance Audit and Compliance Committee Chairperson

SPASA AUSTRALIA - ANNUAL REPORT 2019

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Rainwise Clearview - Fibreglass Pool up to $40,000

2019 ACCOMPLISHMENTS

834 Members

MEMBERSHIP Members are our greatest asset.

The association continues to consolidate its position as the peak body representing the swimming pool and spa industry in Australia. Strong membership growth continues to be the foundation which underpins SPASA Australia’s reputation as the pre-eminent voice in representing, supporting and promoting the industry.

TRAINING & EDUCATION - A CAREER OF CHOICE SPASA helps to empower and develop industry professionals by facilitating diverse career path opportunities through training and be the information source consumers seek providing confidence in our product, skills and trades.

Our purpose, vision and values drives us to develop trade and career skills to every sector of the swimming pool and spa industry as well as affiliated industries such as landscaping and design, sales, and marketing as well as the retail sector.

SPASA does this through: Researching what skills are needed in our industry and businesses, both now and in the future Identifying current and emerging trends in the economy and how they impact on Australia’s skills needs.

Revising our qualifications and training programs to better match what people learn with the skills needs of our industries and businesses Keeping employers informed about trends in their industry, listening to their concerns and getting their feedback on qualifications and training packages PAGE 8

SPASA AUSTRALIA - ANNUAL REPORT 2019

575 Workshop Attendees

TRAINING & EDUCATION - GROWTH There are around 5,000 RTOs in Australia. Currently, SPASA Australia’s Training Division is the only registered training organisation (RTO) in Australia dedicated entirely to the swimming pool and spa industry.

To strengthen our industry, SPASA has worked together with a variety of stakeholders and government, to ensure that a forecasted increase in workforce is underpinned by upgrading existing swimming pool and spa qualifications.

Ultimately, this translates into industry wide upskilling as well as making the swimming pool and spa industry attractive to new entrants.

SPASA Training - New Additions to our Training Scope

317

A long-term training philosophy based on industry feedback, demographics, economics, and other factors has allowed SPASA to develop strategies to answer tomorrows workforce questions and needs – today.

Qualification & Shortcourse Completions

Since its launch in 2012, the RTO has expanded its qualification offering so that it can service more internal and external industry participants. Current qualification offering now includes: Pool & Spa Qualifications • • • •

CPC40808 Certificate IV in Swimming Pool & Spa Building CPP31218 Certificate III in Swimming Pool & Spa Service CPP41319 Certificate IV n Swimming Pool & Spa Service 10660NAT Swimming Pool Safety Inspection Qualification

Business & Retail Qualifications

2732 Units of Competency (distributed)

• • • • • • •

BSB40215 Certificate IV in Business BSB40615 Certificate IV in Business Sales BSB42015 Certificate IV in Leadership and Management BSB42518 Certificate IV in Small Business Management BSB50215 Diploma of Business BSB51918 Diploma of Leadership and Management SIR30216 Certificate III in Retail

General Building & Related Qualifications • CPC40110 Certificate IV in Building and Construction • AHC30916 Certificate III in Landscape Construction

SPASA AUSTRALIA - ANNUAL REPORT 2019

PAGE 9

Jagun Pools + Landscapes - Renovation up to $25,000

CLIMATE CARE CERTIFIED The Climate Care Certification Program is the industry’s efficiency and sustainability certification program, for the promotion of a Climate Care Certified Product, System or Installation/Retrofit/Construction.

The program is successfully creating a new benchmark for swimming pools and spas which utilises: Water Efficiency/Sustainabilty

Sustainable Designs

Energy Efficiency

Efficient Innovations

Noise Reduction Measures

SustainableTreatments

Through the program, the pool and spa industry is promoted to regulators and homeowners who are supported and empowered to reduce water and energy consumption.

This program encourages positive decision making towards owning an environmentally sustainable swimming pool and/ or spa....whilst saving money at the same time!

BENEFITS OF CERTIFICATION INDUSTRY BENEFITS

THE NEW BENCHMARK IN

ENVIRONMENTAL SUSTAINABILITY

• Highlight your product/system/installation’s environmentally sustainable qualities • Show your commitment to preserving the environment and to industry best practice • Proof that claims being made have been verified by the peak industry body • Interested parties have the ability to search in one place for your approved product/system/installation CONSUMER BENEFITS • Purchase with confidence knowing that you are choosing a certified environmentally sustainable solution • Enjoy the benefits of choosing a solution which utilises water efficiency, energy efficiency, noise reduction measures, environmentally sustainable designs or efficiency/sustainability innovations • Reduce your overall carbon footprint whilst saving money

PAGE 10

SPASA AUSTRALIA - ANNUAL REPORT 2019

MEMBER BENEFITS SPASA enables members to take advantage of exclusive benefits, products and services through its alliance with key partners and sponsors, helping them expand and differentiate their business in a competitive market.

SPASA strives to provide research, data, networking and leadership opportunities. Tangible benefits to time and business management, cash flow, exclusivity and market share.

ADVOCACY & INDUSTRY REPRESENTATION

SUSTAINABILITY PROGRAM

INSURANCE SERVICES

BUSINESS SOLUTIONS

ONLINE CONTRACTS

HUMAN RESOURCES & SAFETY

COACHING & MENTORING

FLEET SERVICES

PRODUCT SAFETY & COMPLIANCE

VEHICLE TENDERING

LEGAL ADVICE & INFORMATION

FUEL EXPENSES MANAGEMENT

MEDIA & PROMOTION

MEDIA & PROMOTION

For more information on any of our services visit spasa.com.au

SPASA AUSTRALIA - ANNUAL REPORT 2019

PAGE 11

Unique Freeform Pools - Pool & Spa Combination - Vinyl Lined

PROMOTION - MARKETING & COMMUNICATION SPASA provides avenues for members to develop brands, services and programs through the various media outlets and platforms. SPASA promotes to consumers and regulators that members deliver professional trade skills and exceptional products that improve the health and wellness of the community.

SPASA promotes growth and demand for the Pool, Spa and Outdoor living sector through best practice marketing to trade, members and consumers. The development of brands, services and programs are to support and increase the positive view of pool ownership and utilisation of professional trades, products and services.

5214

483,023

Social Media Followers

People reached via digital, print & expos

9 Major Industry Events

PAGE 12

19,440 Member & Consumer Enquiries

SPASA AUSTRALIA - ANNUAL REPORT 2019

PROMOTION - SPASA LEADERSHIP The SPASA Leadership Convention was held at the Hilton Adelaide on 2 August 2019, delegates from around the country engaged with world class keynote speakers, beginning with Matt Church, who guided the audience on a journey of discovering positive tactics in creating work worth doing, cultures worth belonging to and leaders worth following.

Dave Staughton’s fun and interactive presentation was based on real sales experience and taught the essential strategies of successful sales leaders and how to build a high performance team to help businesses grow in a turbulent and disrupting market.

“…the biggest thing I took away was the power of the word, how you portray your thoughts and feelings to your team and how just a simple phrase and how you interpret the result in front of you changes people’s mindsets…“ Anita Zaplin - Summer Daze Pools & Inspections “…It was a great perspective from three very different speakers, I really enjoyed it and will ensure to spend more time reading and encouraging my team rather than managing and working on the day-to-day…”

Jonas Ryberg - Fluidra

The final session for the day was delivered by Matina Jewell, an inspiring story of lessons in leadership from the frontlines of change, providing key takeaways in finding a way forward in highpressure situations and being the catalyst for teamwork, empowerment and cooperation.

SPASA AUSTRALIA - ANNUAL REPORT 2019

PAGE 13

Aloha Pools - Enclosed/Indoor Pool

PROMOTION - NETWORKING

WOMEN IN L E A D ER S H I P

SPASA meetings provide regular access to the latest and most relevant industry networks and information including regulatory affairs, technical standards and sustainability issues.

The specific sector network meetings provide members with regular access to Government regulators and key partners to the industry.

Recognising the need to develop great women leaders, SPASA introduced the SPASA Women in Leadership Program. Working with acclaimed leadership Coach Ros Ronning, the program included a series of webinars and workshops thorughout 2019, presenting the skills and knowledge needed to form the foundations of leadership.

Meetings provide an excellent resource for our members to connect to other likeminded industry leaders while also accessing the latest information from key industry and government speakers.

The program was developed by women for women who have leadership roles. The aim was to create a community of likeminded women leaders, by offering support, education and networking opportunities.

Agendas for each round of meetings are distributed in advance ensuring members and the broader industry has every opportunity to attend.

Member companies often present and/or host at the various meetings, which provides the vehicle to showcase products, services and best practice process directly to other members.

PAGE 14

SPASA AUSTRALIA - ANNUAL REPORT 2019

PROMOTION - SPASA EXPOS SPASA held the 2019 Pool, Spa & Outdoor Living Expo in NSW, SA and for the first time in New Zealand and the three Expos all exceeded expectations. In NSW and SA, there were considerable increases in attendance by both exhibitors and consumers over the previous year.

The inaugural Expo in New Zealand was a hailed a great success with many businesses and visitors promising to return in 2020.

“The show for Davey has been great. Everyone is so excited and engaged to buy a pool. We have met so many families and we are having a great time.”

Amanda Minogue - Davey Pool Products “The Expo was far more valuable than we had anticipated. We were very impressed by the quantity of quality enquiry we received.

Robert Luijten - Luijten Landscapes

Visitors were encouraged to bring their house plans and photos for one on one consultations and were very keen to learn more about the latest technology that was available. They were able to also take advantage of the many specials on offer and had exclusive access to the launch of new models of pools, spas, equipment and accessories.

Despite the challenging economic climate, exhibitors provided very positive feedback and reported solid leads and sales.

SPASA AUSTRALIA - ANNUAL REPORT 2019

PAGE 15

Blue Stone Pools - Pool & Spa Combination - Concrete

REPRESENTATION Advocacy remains high on the SPASA agenda, with significant committee and resource involvement on Australian Standards and associated Working Groups. Whether it is safety barriers, electrical standards, fibreglass pool manufacture & installation or energy efficiency of pool pumps, SPASA is present and active in lobbying and ensuring the views and interests of members and the broader industry resonate in all forums.

SPASA has enjoyed an outstanding year of

3000+ responses to SPASA’s 1926.1 workshops

advocacy on behalf of members, the broader swimming pool and spa industry, and the community. We are regarded by government, regulators and the media as the go-to organisation on all things swimming pool and spa related. This reputation does not come easily. It takes passion, hard-work and dedication by staff and volunteers.

It also takes clever ideas, research, analysis, strategy, and experience.

2019 SPASA Advocacy touch points included:

Submission on

Easy an d Transparent Trading Consultation Paper (NSW) Aug 2018

Building Stronger Foundations Discussion Paper

Implementing the NSW Government Response to the Shergold Weir Building Confidence Report June 2019

SPASA AUSTRALIA - ANNUAL REPORT 2019

• SPASA 1926.1 workshops - 3000+ responses - The largest volume of replies ever provided to Standards Australia for a single public comment document • State & Federal Regulators • State & National Associations • Australian Competition & Consumer Commission • Australian Pesticides and Veterinary Medicines Authority • Artibus Innovation • Department of Climate Change and Energy Efficiency • State and regional Water Boards • Australian Building Code Board • Department(s) of Health

PAGE 16

GOVERNANCE SPASA’s corporate governance systems guide the way we manage the association, minimise risk and ensure integrity. The Board is responsible for the overall governance and strategic direction of SPASA Australia. The volunteer Directors meet regularly during the year to consider, determine and review strategies and policies.

The projection for 2021 and beyond is a progressive message, whilst respecting what has come before.

the message

A BETTER LIFE everyone deserves a pool and spa

what we deliver

üPromoting members as the first option to consumers

üMember services that add value

üInvestment in our people, building professionals through career development

üRepresenting and influencing policy as the major stakeholder for the industry

üA sustainable, ethical and responsible association

PAGE 17

who we are

The Swimming Pool & Spa Association of Australia Ltd (SPASA Australia) is Australia’s Peak Swimming Pool & Spa Industry Body that innovates, educates and governs for the benefit of members and consumers, resulting in a better community.

25 25

the vision

25% growth of member businesses by 2025

SPASA AUSTRALIA - ANNUAL REPORT 2019

Cronulla Pools - Courtyard/Plunge Pool

AWARDS OF EXCELLENCE WINNERS The SPASA Australia Awards of Excellence is the swimming pool and spa industry’s most prestigious awards program, attracting entries from every region in Australia and showcasing achievements in construction, design, manufacturing, supply, products, retail and service.

The program provides our members with the only Australia-wide opportunity to showcase their best efforts to their peers, industry, government and their local community. These awards are the ultimate recognition of being leaders in their field.

We would like to congratulate and thank all sponsors, entrants and judges involved in the 2019 Awards. View our gold winning members on the following pages; the full complement can be viewed on the SPASA website.

SPASA AUSTRALIA - ANNUAL REPORT 2019

PAGE 18

POOL OF THE YEAR

CONCRETE POOL BUILDER OF THE YEAR

NSW & ACT SA VIC WA National

NSW & ACT QLD SA WA National

Urban Escape Adelaide Classic Pools Laguna Pools Blue Stone Pools Urban Escape

Award Pools Group Environ Pools Elite Pool Constructions Imperial Pools Environ Pools

SUPPLIER OF THE YEAR

PRODUCT OF THE YEAR

NSW & ACT QLD SA VIC WA National

NSW & ACT QLD SA VIC WA National

Europe Imports Focus Products Fluidra Driclad Pool Technology Agent Sales & Services Focus Products

Pentair Water Australia Ascon Pool Sunbather Driclad Pool Technology Sunline Australia Sunbather

RETAILER OF THE YEAR

EDUCATION TRAINING AWARD

NSW & ACT QLD SA WA National

NSW & ACT WA National

Davison Pool & Spa Service Swimart Jindalee Prospect Pool + Spa The Pool Shop - Floreat Swimart Jindalee

SPA OF THE YEAR QLD VIC WA National

Placid Pools Out from the Blue Quality Dolphin Pools Quality Dolphin Pools

COMMERCIAL PROJECT OF THE YEAR NSW & ACT QLD SA WA National

Suncatcher Pools Surfside Pools Commercial State Wide Pool Services Australia Imperial Pools Suncatcher Pools

EMPLOYEE OF THE YEAR NSW & ACT QLD Inspections SA WA National Inspections

Mark Beckett - Pristine Pool & Spa Service Anita Zaplin - Summer Daze Pools &

Todd Jones - Prospect Pool & Spa Kerstin Bottrell - Fluidra Anita Zaplin - Summer Daze Pools &

FIBREGLASS POOL BUILDER OF THE YEAR NSW & ACT QLD SA WA National

Bombora Pools & Spas Leisure Pools North Brisbane Rainwise Clearview Aquatic Leisure Technologies Rainwise Clearview

SPASA AUSTRALIA - ANNUAL REPORT 2019

Clark Rubber Franchising Reece Irrigation & Pools Clark Rubber Franchising

MARKETING CAMPAIGN OF THE YEAR QLD SA WA National

Poolwerx Australian Outdoor Living Kreepy Krauly Poolwerx

SUSTAINABLE PRODUCT AWARD SA VIC WA National

Sunbather Pentair Water Australia Sunline Australia Sunbather

VINYL LINED MODULAR POOL QLD SA VIC WA National

Classic Pools QLD Classic Pools SA Driclad Pool Technology Classic Pools WA Classic Pools QLD

PORTABLE SPA VIC WA National

SWIM SPA

QLD & National

Endless Spas Spa World Osborne Park Endless Spas Placid Pools

CONCRETE POOL UP TO $50,000 NSW & ACT QLD SA VIC WA National

Cloud 9 Pools Queensland Family Pools Australian Outdoor Living Seaspray Pools Quality Dolphin Pools Queensland Family Pools

PAGE 19

Urban Escape - Pool of the Year

CONCRETE POOL UP TO $100,000

POOL & SPA COMBINATION – FIBREGLASS

NSW & ACT QLD SA VIC WA National

NSW & ACT QLD SA VIC WA National

Cronulla Pools Placid Pools Elite Pool Constructions Out From The Blue Boardwalk Pools Placid Pools

Bombora Pools & Spas Leisure Pools North Brisbane Freedom Pools Compass Pools Melbourne Barrier Reef Pools Bombora Pools & Spas

CONCRETE POOL OVER $100,000

POOL & SPA COMBINATION – VINYL LINED

NSW & ACT SA VIC WA National

WA & National

Splish Splash Pools Elite Pool Constructions Enki Pools Graziani Pools & Landscapes Splish Splash Pools

FIBREGLASS POOL UP TO $40,000 NSW & ACT QLD SA WA National

Coastline Pools Leisure Pools North Brisbane Rainwise Clearview Barrier Reef Pools Rainwise Clearview

FIBREGLASS POOL UP TO $60,000 NSW & ACT SA VIC WA National

Mark Pollard Pools & Outdoor Designs Port Lincoln Fibreglass Horizon Pools Barrier Reef Pools Horizon Pools

FIBREGLASS POOL OVER $60,000 NSW & ACT SA VIC WA National

Narellan Pools Central West & Blue Mountains Riverscape Landscaping & Pools Compass Pools Melbourne Barrier Reef Pools Compass Pools Melbourne

FREEFORM POOL UP TO $50,000 QLD & National

Placid Pools

FREEFORM POOL UP TO $100,000 NSW & ACT QLD National

Suncatcher Pools Placid Pools Placid Pools

POOL & SPA COMBINATION – CONCRETE NSW & ACT SA VIC WA National

PAGE 20

Urban Escape Elite Pool Constructions Laguna Pools Blue Stone Pools Urban Escape

Unique Freeform Pools

VINYL LINED IN-GROUND POOL QLD SA VIC WA National

Aqualon Interiors Pleasure Pools Albatross Swimming Pools Unique Freeform Pools Albatross Pools

ENCLOSED / INDOOR POOL NSW & ACT SA VIC National

Local Pools & Spas Adelaide Classic Pools Aloha Pools Aloha Pools

COURTYARD/PLUNGE POOL NSW & ACT SA VIC WA National

Cronulla Pools Elite Pool Constructions Aloha Pools North Shore Pools & Landscaping Cronulla Pools

LAP POOL – CONCRETE NSW & ACT QLD VIC WA National

Adept Pools Environ Pools Icon Pools The Waters Edge Pool Design & Landscaping The Waters Edge Pool Design & Landscaping

LAP POOL – FIBREGLASS NSW & ACT SA VIC WA National

Coastline Pools Freedom Pools Compass Pools Melbourne Barrier Reef Pools Compass Pools Melbourne

LAP POOL – VINYL LINED WA & National

Unique Freeform Pools

IN-GROUND SPA NSW & ACT QLD VIC WA National

Splish Splash Pools Queensland Family Pools Out from the Blue Quality Dolphin Pools Quality Dolphin Pools

SPASA AUSTRALIA - ANNUAL REPORT 2019

RENOVATION UP TO $25,000

INTERNATIONAL PROJECT

NSW & ACT QLD SA VIC WA National

NSW & ACT QLD National

Aquastone Pools & Landscapes Jagun Pools + Landscapes Adelaide Classic Pools 37 South Pools The Concrete Pool Company Jagun Pools + Landscapes

RENOVATION OVER $25,000 NSW & ACT QLD SA VIC WA National

KMD The Outdoor Construction Company Jagun Pools + Landscapes Adelaide Classic Pools Neptune Pools Jubilee Pools & Landscapes KMD The Outdoor Construction Company

CONCRETE COMMERCIAL POOL UP TO $250,000 NSW & ACT WA National

Suncatcher Pools Imperial Pools Suncatcher Pools

FIBREGLASS COMMERCIAL POOL UP TO $250,000 QLD & National

Leisure Pools North Brisbane

VINYL LINED COMMERCIAL POOL UP TO $250,000 QLD WA National

Aqualon Interiors Moonlight Pools Aqualon Interiors

COMMERCIAL POOL OVER $250,000 NSW & ACT QLD SA VIC WA National

Leader Pools Surfside Pools Commercial State Wide Pool Services Australia Aloha Pools Imperial Pools Surfside Pools Commercial

COMMERCIAL SPA QLD WA National

Surfside Pools Commercial Reflections Pool & Spa Care Surfside Pools Commercial

Waterforms International Aqualon Interiors Waterforms International

POOL LANDSCAPE DESIGN NSW & ACT SA VIC WA National

The Other Side Landscapes Elite Pool Constructions 37 South Pools Mondo Landscapes 37 South Pools

INNOVATIVE PROJECT NSW & ACT QLD SA VIC WA National

Leader Pools Evo Industries Australia Elite Pool Constructions Aqua Dreamz Quality Dolphin Pools Evo Industries Australia

WATER FEATURE NSW & ACT QLD SA VIC WA National

Leader Pools Ezy Living Pools Adelaide Classic Pools Domain Pools & Landscapes Quality Dolphin Pools Domain Pools & Landscapes

LIGHTING FEATURE NSW & ACT VIC National

The Other Side Landscapes Out From The Blue The Other Side Landscapes

SUSTAINABLE PROJECT NSW & ACT QLD VIC WA National

Leader Pools Evo Industries Australia Laguna Pools Dunsborough Pool Design & Construct Laguna Pools

COMMERCIAL RENOVATION

BEST SAFETY BARRIER

QLD WA National

VIC WA National

Dean Thomas Pools Safeway Aquatic Services Dean Thomas Pools

Tough Glass Worx Sunline Australia Tough Glass Worx

DISPLAY POOL CENTRE

BEST POOL STORE

NSW & ACT QLD SA VIC WA National

NSW & ACT QLD SA VIC (AU) VIC WA National

Mark Pollard Pools & Outdoor Designs Burleigh Pools Freedom Pools Laguna Pools Barrier Reef Pools Barrier Reef Pools

SPASA AUSTRALIA - ANNUAL REPORT 2019

Davison Pool & Spa Service Swimart Jindalee Prospect Pool + Spa Poolwerx Briar Hill The Poolstore The Pool Shop - Floreat Prospect Pool + Spa PAGE 21

Quality Dolphin Pools - Spa of the Year

BEST SPA RETAILER

OPERATIONAL EXCELLENCE AWARD

SA VIC WA National

QLD

SA

VIC WA

National

Just Spas Adelaide Endless Spas Mega Spa Just Spas Adelaide

BEST MOBILE SERVICE BUSINESS NSW & ACT QLD SA VIC (AU) VIC WA National

Pristine Pool & Spa Service Reliable Pool Care Clark Rubber Enfield Clark Rubber Hobart Flowtec Leak Detection Wanneroo Pool Services Flowtec Leak Detection

BEST POOL & SPA BARRIER INSPECTOR NSW & ACT QLD

National

Robert Guthrie - Certified Pool Anita Zaplin - Summer Daze Pools & Inspections Anita Zaplin - Summer Daze Pools & Inspections

Steven Burton - Swimart Jindalee Cameron Hawkins - Fluidra Emma Johnson - Laguna Pools Robert Teraci - Clark Rubber Franchising Steven Burton - Swimart Jindalee

SPASA TRAINING EXCELLENCE AWARD NSW & ACT

QLD National

Corinne Brookhouse Amy Ahchay Corinne Brookhouse

WITH THANKS to our Judges

RETAIL SERVICE TECHNICIAN AWARD NSW & ACT QLD

SA

VIC WA

National

Melissa McPherson - Poolwerx Wagga Stephen Moore - Swimart Jindalee Tim Cain - Rainwise Clearview Craig Henry - Clark Rubber Warrnambool Don Thomson - Pool & Spa Mart Canning Bridge Melissa McPherson - Poolwerx Wagga Wagga

IN-FIELD SERVICE TECHNICIAN AWARD NSW & ACT QLD

SA

VIC WA

National

Mark Beckett - Pristine Pool & Spa Service Paul Rojahn - Atlantis Pool Services Todd Jones - Prospect Pool + Spa Lauren Tessier - All Season Services Andrew Morrison - Pool Assist Paul Rojahn - Atlantis Pool Services

POOL SALES REPRESENTATIVE AWARD QLD

SA

National

Chris Nicholls - Queensland Family Pools Ross Starkey - Rainwise Clearview Ross Starkey - Rainwise Clearview

SUPPLIER SALESPERSON AWARD NSW & ACT QLD

VIC WA

National

Mark Porter - Focus Products Michael Kettewell - Blue Glass Pebble Company John Charles - Focus Products Kerstin Bottrell - Fluidra Mark Porter - Focus Products

RISING STAR AWARD QLD

SA

National

Rob Martin - Norfolk Pools Alex Cronshaw - Australian Outdoor Living Alex Cronshaw - Australian Outdoor Living

CONSTRUCTION TRADESPERSON AWARD Qld & National

PAGE 22

Michael Barbour - Queensland Family Pools

SPASA AUSTRALIA - ANNUAL REPORT 2019

2019 SPONSORS & PARTNERS

PLATINUM

PLATINUM

Sponsor

Sponsor

GOLD

Sponsor

SPASA AUSTRALIA - ANNUAL REPORT 2019

PAGE 23

Surfside Pools Commercial - Commercial Pool over $250,000

AUDITED FINANCIAL REPORT

ABN 74 150 541 816

Financial Report - 31 December 2019

PAGE 24

SPASA AUSTRALIA - ANNUAL REPORT 2019

Swimming Pool & Spa Association of Australia Ltd Directors' report 31 December 2019 The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Swimming Pool & Spa Association of Australia Ltd (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the period ended 31 December 2019.

Directors The following persons were directors of Swimming Pool & Spa Association of Australia Ltd during the whole of the financial period and up to the date of this report, unless otherwise stated: Robert Kruber (Chairman Stefan Ossenberg (Deputy Chair- Appointed 26 July 2019) Andrew Jakovac – (Resigned as Deputy Chair- 26 July 2019) Adam Jaworski Elena Gosse Garth Jackson Lynley Papineau John Daniel Neil Davey Troy Cartwright Principal activities During the financial period the principal continuing activities of the consolidated entity consisted of: ● Representation of the Swimming Pool & Spa Industry throughout Australia Meetings of directors There were 10 monthly board meetings held during the year.

Contributions on winding up In the event of the company being wound up, ordinary members are required to contribute a maximum of $1 each.

Honorary members are not required to contribute.

The total amount that members of the company are liable to contribute if the company is wound up is $834, based on the current ordinary members.

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

___________________________ Robert Kruber Chairman 27 April 2020 SPASA AUSTRALIA - ANNUAL REPORT 2019

PAGE 25

AUDITOR’S INDEPENDENCE DECLARATION FOR THE YEAR ENDED 31 DECEMBER 2019 As lead auditor for the audit of Swimming Pool & Spa Association of Australia Ltd for the year ended 31 December 2019, I declare that, to the best of my knowledge and belief, there have been: (a)

no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

(b)

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

This declaration is in respect of Swimming Pool & Spa Association of Australia Ltd.

LOREN DATT Registered Company Auditor Registration: 339204 Dated: 27 April 2020

PAGE 26

SPASA AUSTRALIA - ANNUAL REPORT 2019

Swimming Pool & Spa Association of Australia Ltd Contents 31 December 2019 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 Swimming Pool & Spa Association of Australia Ltd

4 5 6 7 8 20 21

General information The financial statements cover Swimming Pool & Spa Association of Australia Ltd as a consolidated entity consisting of Swimming Pool & Spa Association of Australia Ltd and the entities it controlled at the end of, or during, the period. The financial statements are presented in Australian dollars, which is Swimming Pool & Spa Association of Australia Ltd's functional and presentation currency.

Swimming Pool & Spa Association of Australia Ltd is a not-for-profit unlisted public company limited by guarantee, incorporated and domiciled in Australia. Its registered office and principal place of business is: Unit 8, 13-15 King William Road Unley South Australia 5061 A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of directors, on 27 April 2020. The directors have the power to amend and reissue the financial statements.

3

PAGE 27

SPASA AUSTRALIA - ANNUAL REPORT 2019

Swimming Pool & Spa Association of Australia Ltd Statement of profit or loss and other comprehensive income For the period ended 31 December 2019

Note

Revenue

3

Consolidated 2019 2018 $ $ 3,680,972

3,951,051

31,421

42,102

(417,210) (1,052,669) (1,049,650) (1,232) (9,403) (355,267) (717,087) (37,066)

(280,295) (1,080,488) (1,040,641) (18,000) (380) (309,856) (724,912) (70,230)

72,809

468,351

-

-

72,809

468,351

Items that may be reclassified subsequently to profit or loss Foreign currency translation

(3,707)

-

Other comprehensive income for the period, net of tax

(3,707)

-

Total comprehensive income for the period attributable to the members of Swimming Pool & Spa Association of Australia Ltd

69,102

468,351

Interest revenue Expenses Corporate and administration expenses Event expenses Employee benefits expense Occupancy expenses Depreciation and amortisation expense Marketing expenses Other expenses Finance costs Surplus before income tax expense Income tax expense Surplus after income tax expense for the period attributable to the members of Swimming Pool & Spa Association of Australia Ltd Other comprehensive income

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 4

PAGE 28

SPASA AUSTRALIA - ANNUAL REPORT 2019

Swimming Pool & Spa Association of Australia Ltd Statement of financial position As at 31 December 2019

Note

Consolidated 2019 2018 $ $

Assets Current assets Cash and cash equivalents Trade and other receivables Other Total current assets

4 5 6

2,108,206 744,323 268,993 3,121,522

3,183,320 586,258 165,635 3,935,213

Non-current assets Property, plant and equipment Right-of-use assets Intangibles Other Total non-current assets

7 8 9 10

1,646,500 894,316 1,450,000 9,987 4,000,803

770,000 1,400,000 2,170,000

7,122,325

6,105,213

Total assets Liabilities Current liabilities Trade and other payables Lease liabilities Employee benefits Provisions Other Total current liabilities

11 12 13 14 15

484,692 27,976 133,033 200,000 1,061,058 1,906,759

288,763 95,788 250,000 989,787 1,624,338

Non-current liabilities Lease liabilities Employee benefits Provisions Total non-current liabilities

17 18 19

869,320 9,595 878,915

13,326 200,000 213,326

Total liabilities

2,785,674

1,837,664

Net assets

4,336,651

4,267,549

158,750 4,177,901

162,457 4,105,092

4,336,651

4,267,549

Equity Reserves Retained surpluses

20

Total equity

The above statement of financial position should be read in conjunction with the accompanying notes 5

PAGE 29

SPASA AUSTRALIA - ANNUAL REPORT 2019

Swimming Pool & Spa Association of Australia Ltd Statement of changes in equity For the period ended 31 December 2019 Retained profits $

Reserves $

Consolidated Balance at 1 July 2018

Total equity $

162,457

3,636,741

3,799,198

Surplus after income tax expense for the period Other comprehensive income for the period, net of tax

-

468,351 -

468,351 -

Total comprehensive income for the period

-

468,351

468,351

162,457

4,105,092

4,267,549

Balance at 31 December 2018

Reserves $

Consolidated Balance at 1 July 2019

Retained profits $

Total equity $

162,457

4,105,092

4,267,549

Surplus after income tax expense for the period Other comprehensive income for the period, net of tax

(3,707)

72,809 -

72,809 (3,707)

Total comprehensive income for the period

(3,707)

72,809

69,102

158,750

4,177,901

4,336,651

Balance at 31 December 2019

The above statement of changes in equity should be read in conjunction with the accompanying notes 6

PAGE 30

SPASA AUSTRALIA - ANNUAL REPORT 2019

Swimming Pool & Spa Association of Australia Ltd Statement of cash flows For the period ended 31 December 2019 Note

Cash flows from operating activities Receipts from customers/members (inclusive of GST) Payments to suppliers and employees (inclusive of GST)

Consolidated 2019 2018 $ $

3,979,214 (3,895,114)

3,970,609 (3,809,766)

84,100 31,421 (37,066)

160,843 42,012 (70,230)

78,455

132,625

(878,388) (250,000)

(250,000)

(1,128,388)

(250,000)

Cash flows from financing activities Repayment of borrowings Repayment of lease liabilities Amounts advance to SPLASH

(4,535) (16,939)

(703,696) -

Net cash used in financing activities

(21,474)

(703,696)

(1,071,407) 3,183,320 (3,707)

(821,071) 4,004,391 -

2,108,206

3,183,320

Interest received Interest and other finance costs paid 23

Net cash from operating activities Cash flows from investing activities Payments for property, plant and equipment Payments for intangibles Net cash used in investing activities

Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the financial period Effects of exchange rate changes on cash and cash equivalents 4

Cash and cash equivalents at the end of the financial period

The above statement of cash flows should be read in conjunction with the accompanying notes 7

PAGE 31

SPASA AUSTRALIA - ANNUAL REPORT 2019

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2019 Note 1. Significant accounting policies The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

New or amended Accounting Standards and Interpretations adopted The consolidated entity 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.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Basis of preparation In the directors' opinion, the consolidated entity is not a reporting entity because there are no users dependent on general purpose financial statements.

These are special purpose financial statements that have been prepared for the purposes of complying with the Corporations Act 2001 requirements to prepare and distribute financial statements to the members of Swimming Pool & Spa Association of Australia Ltd. The directors have determined that the accounting policies adopted are appropriate to meet the needs of the members of Swimming Pool & Spa Association of Australia Ltd. These financial statements have been prepared in accordance with the recognition and measurement requirements specified by the Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the disclosure requirements of AASB 101 'Presentation of Financial Statements', AASB 108 'Accounting Policies, Changes in Accounting Estimates and Errors', AASB 1031 'Materiality', AASB 1048 'Interpretation of Standards' and AASB 1054 'Australian Additional Disclosures', as appropriate for not-for profit oriented entities.

Historical cost convention The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive income, investment properties, certain classes of property, plant and equipment and derivative financial instruments.

Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2.

Parent entity information In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. Supplementary information about the parent entity is disclosed in note 21.

Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Swimming Pool & Spa Association of Australia Ltd ('company' or 'parent entity') as at 31 December 2019 and the results of all subsidiaries for the period then ended. Swimming Pool & Spa Association of Australia Ltd and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.

Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.

Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the consolidated entity.

8

PAGE 32

SPASA AUSTRALIA - ANNUAL REPORT 2019

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2019 Note 1. Significant accounting policies (continued) The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent.

Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss.

Foreign currency translation The financial statements are presented in Australian dollars, which is Swimming Pool & Spa Association of Australia Ltd's functional and presentation currency.

Foreign currency transactions Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

Foreign operations The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are recognised in other comprehensive income through the foreign currency reserve in equity.

The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.

Revenue recognition The consolidated entity recognises revenue as follows: Revenue from contracts with customers Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the consolidated entity: 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.

Rendering of services Rendering of services revenue is recognised upon delivery of service to customer.

Interest Interest revenue is recognised as interest accrues using the effective interest method.

Other revenue Other revenue is recognised when it is received or when the right to receive payment is established.

9

PAGE 33

SPASA AUSTRALIA - ANNUAL REPORT 2019

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2019 Note 1. Significant accounting policies (continued) Income tax As the consolidated entity is a tax exempt institution in terms of subsection 50-10 of the Income Tax Assessment Act 1997, as amended, it is exempt from paying income tax.

Consolidated entities The organisation produces consolidated reports which are set out in this document. Each entities that comprises the group separately continue to maintain individual accounts for internal, regulatory compliance and audit purposes. The entities that comprise the Group are: • Swimming Pool and Spa Association of Australia Pty Ltd • Swimming Pool and Spa Association of NSW Ltd • SPASA Australia Benefits Pty Ltd • Pool and Spa Association New Zealand Investment information, such as term deposits, cash at bank and other assets are reported on a consolidated basis.

Trust funds held are reported on a consolidated basis rather than a listing of which entities holds which trust funds. This trust information is maintained in the individual accounts of each entity for internal, regulatory compliance and audit purposes.

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 consolidated entity'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 consolidated entity'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.

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 Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off by reducing the carrying amount directly. A provision for impairment of trade receivables is raised when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Other receivables are recognised at amortised cost, less any allowance for expected credit losses.

Investments and other financial assets Financial assets at amortised cost A financial asset is measured at amortised cost only if both of the following conditions are met: (i) it is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and (ii) the contractual terms of the financial asset represent contractual cash flows that are solely payments of principal and interest.

10

PAGE 34

SPASA AUSTRALIA - ANNUAL REPORT 2019

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2019 Note 1. Significant accounting policies (continued) Impairment of financial assets The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the consolidated entity's assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain.

Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.

For financial assets mandatorily measured at fair value through other comprehensive income, the loss allowance is recognised in other comprehensive income with a corresponding expense through profit or loss. In all other cases, the loss allowance reduces the asset’s carrying value with a corresponding expense through profit or loss.

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 is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows: Buildings Leasehold improvements Plant and equipment

40 years 3-10 years 3-7 years

The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.

Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter.

An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the consolidated entity. 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.

11

PAGE 35

SPASA AUSTRALIA - ANNUAL REPORT 2019

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2019 Note 1. Significant accounting policies (continued) 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 consolidated entity 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 consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for short-term 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.

Intangible assets Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their fair value at the date of the acquisition. Intangible assets acquired separately are initially recognised at cost. Indefinite life intangible assets are not amortised and are subsequently measured at cost less any impairment. Finite life intangible assets are subsequently measured at cost less amortisation and any impairment. The gains or losses recognised in profit or loss arising from the derecognition of intangible assets are measured as the difference between net disposal proceeds and the carrying amount of the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually.

Changes in the expected pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or period.

Goodwill Goodwill arises on the acquisition of a business. Goodwill is not amortised. Instead, goodwill is tested annually for impairment, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Impairment losses on goodwill are taken to profit or loss and are not subsequently reversed.

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 consolidated entity prior to the end of the financial period 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 consolidated entity'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.

12

PAGE 36

SPASA AUSTRALIA - ANNUAL REPORT 2019

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2019 Note 1. Significant accounting policies (continued) Provisions Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result of a past event, it is probable the consolidated entity 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.

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.

Goods and Services Tax ('GST') and other similar taxes 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.

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 tax authority is included in other receivables or other payables in the statement of financial position.

New Accounting Standards and Interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 31 December 2019. The consolidated entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.

Note 2. 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. There are no critical accounting judgements, estimates and assumptions that are likely to affect the current or future financial years.

13

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SPASA AUSTRALIA - ANNUAL REPORT 2019

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2019 Note 3. Revenue Consolidated 2019 2018 $ $ Sales revenue Professional fees Membership fees Event income

Other revenue Rent Other revenue

Revenue

1,643,569 876,254 1,119,723 3,639,546

1,508,949 914,069 1,510,584 3,933,602

9,203 32,223 41,426

17,449 17,449

3,680,972

3,951,051

Note 4. Current assets - cash and cash equivalents Consolidated 2019 2018 $ $ Cash on hand Cash at bank Cash on deposit

100 1,138,533 969,573

100 2,022,989 1,160,231

2,108,206

3,183,320

Note 5. Current assets - trade and other receivables Consolidated 2019 2018 $ $ Trade receivables Less: Allowance for expected credit losses

Other receivables Receivable from SPLASH BAS receivable

802,798 (109,016) 693,782

616,048 (60,308) 555,740

16,939 33,602

2,570 27,948

744,323

586,258

Note 6. Current assets - other Consolidated 2019 2018 $ $ Prepayments

268,993

165,635

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SPASA AUSTRALIA - ANNUAL REPORT 2019

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2019 Note 7. Non-current assets - property, plant and equipment Consolidated 2019 2018 $ $ Land and buildings - at independent valuation Land and buildings - at cost

770,000 837,690 1,607,690

770,000 770,000

Plant and equipment - at cost Less: Accumulated depreciation

-

1,999 (1,999) -

Fixtures and fittings - at cost Less: Accumulated depreciation

30,384 (929) 29,455

-

Office equipment - at cost Less: Accumulated depreciation

10,314 (959) 9,355

-

1,646,500

770,000

Valuations of land and buildings The basis of the valuation of land and buildings is fair value. The land and buildings were last revalued on 20 July 2017 based on independent assessments by a member of the Australian Property Institute having recent experience in the location and category of land and buildings being valued. The directors do not believe that there has been a material movement in fair value since the revaluation date. Valuations are based on current prices for similar properties in the same location and condition.

Note 8. Non-current assets - right-of-use assets Consolidated 2019 2018 $ $ Land and buildings - right-of-use Less: Accumulated depreciation

901,831 (7,515)

-

894,316

-

Note 9. Non-current assets - intangibles Consolidated 2019 2018 $ $ Goodwill - at cost

1,450,000

1,400,000

The goodwill is for the purchase of the SPLASH magazine and show. No assets or liabilities were acquired only the right to prepare the magazine and host the show.

During the current year, a further $50,000 was paid for the acquisition of the Pool and Spa Magazine. No assets or liabilities were acquired, only the right to prepare the magazine.

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SPASA AUSTRALIA - ANNUAL REPORT 2019

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2019 Note 10. Non-current assets - other Consolidated 2019 2018 $ $ Prepayments

9,987

-

Note 11. Current liabilities - trade and other payables Consolidated 2019 2018 $ $ Trade payables BAS payable Other payables

24,148 289,823 170,721

71,505 123,134 94,124

484,692

288,763

Note 12. Current liabilities - lease liabilities Consolidated 2019 2018 $ $ Lease liability

27,976

-

Note 13. Current liabilities - employee benefits Consolidated 2019 2018 $ $ Employee benefits

133,033

95,788

Note 14. Current liabilities - provisions Consolidated 2019 2018 $ $ Deferred consideration

200,000

250,000

The purchase price was $1,400,000 with $700,000 been paid up front and the remaining $700,00 being deferred and payable as follows $250,000 by 9 August 2018, a further $250,000 by 9 August 2019 and the final $200,000 by 9 August 2020.

Note 15. Current liabilities - other Consolidated 2019 2018 $ $ Deferred revenue

1,061,058

989,787

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SPASA AUSTRALIA - ANNUAL REPORT 2019

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2019 Note 16. Non-current liabilities - borrowings Financing arrangements Unrestricted access was available at the reporting date to the following lines of credit: Consolidated 2019 2018 $ $ Total facilities Bank loans

-

750,000

Used at the reporting date Bank loans

-

-

Unused at the reporting date Bank loans

-

750,000

Note 17. Non-current liabilities - lease liabilities Consolidated 2019 2018 $ $ Lease liability

869,320

-

Note 18. Non-current liabilities - employee benefits Consolidated 2019 2018 $ $ Employee benefits

9,595

13,326

Note 19. Non-current liabilities - provisions Consolidated 2019 2018 $ $ Deferred consideration

-

200,000

The purchase price was $1,400,000 with $700,000 been paid up front and the remaining $700,00 being deferred and payable as follows $250,000 by 9 August 2018, a further $250,000 by 9 August 2019 and the final $200,000 by 9 August 2020.

Note 20. Equity - reserves Consolidated 2019 2018 $ $ Revaluation surplus reserve Foreign currency reserve SPRAA contribution reserve

20,000 (3,707) 142,457

20,000 142,457

158,750

162,457

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SPASA AUSTRALIA - ANNUAL REPORT 2019

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2019 Note 21. Parent entity information Set out below is the supplementary information about the parent entity.

Statement of profit or loss and other comprehensive income Parent 2019 $

2018 $

Surplus after income tax

27,218

462,545

Total comprehensive income

27,218

462,545

Statement of financial position Parent 2019 $

2018 $

Total current assets

2,746,912

2,873,676

Total assets

5,208,344

4,273,676

Total current liabilities

1,647,365

1,515,990

Total liabilities

3,006,255

2,098,805

Equity SPRAA contribution reserve Retained surpluses

142,457 2,059,632

142,457 2,032,414

Total equity

2,202,089

2,174,871

Significant accounting policies The accounting policies of the parent entity are consistent with those of the consolidated entity.

Note 22. Events after the reporting period The association has already implemented a variety of actions, with a number of events being delayed to deal with the prolonged economical and logistical impacts of the COVID19 outbreak. Further contingency measures have been considered and will be implemented as is deemed necessary. Given the inherent unpredictability that may be put in place by governments and major partners combined with members behaviours, the actual financial impact of the COVID 19 outbreak, if any, on the association cannot be determined at this time.

No other matter or circumstance has arisen since 31 December 2019 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

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SPASA AUSTRALIA - ANNUAL REPORT 2019

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2019 Note 23. Reconciliation of surplus after income tax to net cash from operating activities Consolidated 2019 2018 $ $ Surplus after income tax expense for the period Adjustments for: Depreciation and amortisation Net loss on disposal of property, plant and equipment Change in operating assets and liabilities: Decrease/(increase) in trade and other receivables Decrease in inventories Decrease/(increase) in other operating assets Increase/(decrease) in trade and other payables Increase/(decrease) in employee benefits Increase/(decrease) in other operating liabilities Net cash from operating activities

72,809

468,351

9,403 -

380 4,607

(141,126) (113,345) 145,929 33,514 71,271

514,582 5,068 1,920 (4,276) (41,514) (816,493)

78,455

132,625

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SPASA AUSTRALIA - ANNUAL REPORT 2019

Swimming Pool & Spa Association of Australia Ltd Directors' declaration 31 December 2019 In the directors' opinion: ●

the consolidated entity is not a reporting entity because there are no users dependent on general purpose financial statements. Accordingly, as described in note 1 to the financial statements, the attached special purpose financial statements have been prepared for the purposes of complying with the Corporations Act 2001 requirements to prepare and distribute financial statements to the members of Swimming Pool & Spa Association of Australia Ltd;

●

the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards as described in note 1 to the financial statements, the Corporations Regulations 2001 and other mandatory professional reporting requirements;

●

the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 31 December 2019 and of its performance for the financial period 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

___________________________ Robert Kruber Chairman 27 April 2020

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SPASA AUSTRALIA - ANNUAL REPORT 2019

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SWIMMING POOL & SPA ASSOCIATION OF AUSTRALIA LTD Opinion We have audited the financial report, being special purpose financial report of Swimming Pool & Spa Association of Australia Ltd (the Company), which comprises the consolidated statement of financial position as at 31 December 2019, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and consolidated 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 presents fairly, is in all material respects, in accordance with Corporations Act 2001, including: a) giving a true and fair view of the Company’s financial position as at 31 December 2019 and of its performance for the year ended on that date; and b) complying with Australian Accounting Standards 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 ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other responsibilities in accordance with 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 ’at the time of this audit report.

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

Emphasis of Matter-Basis of Accounting We draw attention to Note 1 in the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the Company’s financial reporting responsibilities under the Corporations Act 2001. As a result, the financial report may not be suitable for another purpose. Our opinion is not modified in respect of this matter.

Responsibilities of The Directors for the Financial Report The directors of Swimming Pool & Spa Association of Australia Ltd are responsible for the preparation and fair presentation of the financial report and have determined that the basis of preparation described in Note 1 to the financial statements is appropriate to meet the needs of the members. The directors’ responsibility also includes such internal control as the directors determine is necessary to enable the preparation and fair presentation of the financial report that 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 the applicable, matters relating 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.

The Directors’ are responsible for overseeing the Company’s financial reporting process.

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SPASA AUSTRALIA - ANNUAL REPORT 2019

Auditor’s Responsibilities 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.

LOREN DATT Registered Company Auditor Registration: 339204 Dated: 27 April 2020

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SPASA AUSTRALIA - ANNUAL REPORT 2019

8/13 King William Rd Unley SA 5061 1300 021 482 members@spasa.com.au www.spasa.com.au ABN: 74 150 541 816