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geelongchamberofcommerce

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GEELONG CHAMBER OF COMMERCE ANNUAL REPORT 2013

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FAST FACTS 4|

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Geelong Retail Network

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“We will survive this, there’s no doubt about that. And because we have been looking ahead, looking to the future we have actually pre-empted this and we’ve started to make inroads into new areas.”

“It’s time for our state and federal governments to take action and get behind this key regional and state asset. Avalon deserves more certainty.”

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“Considerable work has been done to transition the city for a ‘future without traditional manufacturing.”

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partners and recognised as the leading organisation representing and supporting business and industry.

Strategies To achieve its stated objectives, the organisation has adopted strategic themes summarised in the following key words: Connections, Information, Advocacy and Education which are embedded in the company’s three advocacy pillars: Driving Business Growth, Reducing Business Barriers and Advancing Geelong’s Future.

Key Performance Measures The company measures its own performance through the use of both quantitative and qualitative benchmarks. The benchmarks are used by the Directors to assess the financial sustainability of the company and whether the company’s short-term and long-term objectives are being achieved. Number of members Revenue Profit Cash on hand 31st December

2013 740 $1,097,281 $153,173 $397,589

2012 628 $751,948 $181,935 $341,070

Directors’ Qualifications & Experience Jacqueline Frances Armitage Director (resigned 30/6/2013) Qualifications AIDC, Management Diploma Mt Eliza School of Management Experience GM - GMHBA Health Insurance, GM Offshore Operations - Sitel Australia, COO - Minerva Telelink, Call Centre Consulting - Optus Professional Services, Contact Centre Manager - AMP Direct Banking, National Customer Service Manager - TNT Express Worldwide. Special Responsibilities Chair, Membership and Marketing Committee.

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Immediate Past President (until April 2013). Kylie Jane Warne Director Qualifications Master of Business (Marketing), BA (Social Science/Political Science) Experience 13 years working within Multinationals, 2 years local Government, 6 years small business owner/operator Special Responsibilities Vice President (until April 2013) President (from April 2013) Executive Committee.

Director’s Meetings During the financial year, 11 meetings of Directors were held. Attendances by each Director were as follows:

Jacqueline Armitage Roxanne Bennett Ed Coppe Joanne D’Andrea Mark Edmonds John Fitzgerald Julie Hope Peter Landers Norm Lyons David Mackay Geoff Neilson David Peart Mark Sanders John Sisley Paul Smart Jim Walsh Kylie Warne

No. eligible to attend 5 8 3 11 8 11 11 11 11 11 8 11 11 3 7 3 11

No. attended 3 7 9 7 7 9 10 9 11 8 8 9 4 11

The entity is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If the entity is wound up, the constitution states that each member is required to contribute a maximum of $10 each towards meeting any outstanding obligations of the entity.

Auditor’s Independence Declaration The lead auditor’s independence declaration for the year ended 31st December 2013 has been received and can be found on page 1 of the financial report. This directors’ report is signed in accordance with a resolution of the Board of Directors.

Director: Kylie Warne President Dated this 3rd day of March 2014

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Note

2013

2012

$

$

1,097,281

751,948

REVENUE FROM ORDINARY ACTIVITIES Revenue from Ordinary Activities

2

EXPENSES FROM ORDINARY ACTIVITIES Depreciation

6,717

5,227

394,867

241,325

Consulting fees

40,119

12,321

Promotions

28,174

1,931

Rent

12,440

13,645

Employee Benefits Expense

Sponsorship

106,254

62,825

Event organisation

190,001

161,021

Advertising Office Expenses Other

3

5,967

2,653

55,624

37,629

103,953

31,436

TOTAL EXPENSES FROM ORDINARY ACTIVITIES

944,116

570,013

PROFIT/(LOSS) FOR THE YEAR

153,165

181,935

Items that will not be reclassified to profit or loss

-

-

Items that will be reclassified subsequently to profit or loss when specific conditions are met

-

-

153,165

181,935

Other comprehensive income

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

Note

2013

2012

$

$

ASSETS Current Assets Cash and Cash Equivalents

4

397,589

341,070

Receivables

5

117,055

100,540

Prepayment Total Current Assets

3,917

-

518,561

441,610

Non-Current Assets Plant & Equipment

6

63,970

27,672

Intangible Asset

7

85,000

45,000

Total Non-Current Assets

148,970

72,672

TOTAL ASSETS

667,531

514,282

LIABILITIES Current Liabilities Income in Advance

8

158,851

161,113

Payables

9

69,447

84,985

Short-term provisions

10

20,055

5,595

248,353

251,693

9,192

5,768

9,192

5,768

TOTAL LIABILITIES

257,545

257,461

NET ASSETS

409,986

256,821

Retained Earnings

409,986

256,821

TOTAL EQUITY

409,986

256,821

Total Current Liabilities Non-Current Liabilities Long-term provisions Total Non-Current Liabilities

10

EQUITY

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Retained Earnings Balance at 31.12.11

Total

$

$

74,886

74,886

181,935

181,935

Comprehensive income Profit for the year Other comprehensive income for the year

-

-

Total comprehensive income for the year

181,935

181,935

Balance at 31.12.12

256,821

256,821

153,165

153,165

Comprehensive income Profit for the year Other comprehensive income for the year

-

-

Total comprehensive income for the year

153,165

153,165

Balance at 31.12.13

409,986

409,986

2013

2012

$

$

979,846

761,994

8,658

5,692

(848,970)

(523,010)

139,534

244,676

Purchase of Plant & Equipment and Intangible Asset

(83,015)

(62,902)

NET CASH FLOWS FROM INVESTING ACTIVITIES

(83,015)

(62,902)

56,519

181,774

341,070

159,296

397,589

341,070

Note CASH FLOWS FROM OPERATING ACTIVITIES Receipts Receipts from Customers Interest Payments Payments to suppliers and employees NET CASH FLOWS FROM OPERATING ACTIVITIES

11

CASH FLOWS FROM INVESTING ACTIVITIES

NET INCREASE/DECREASE IN CASH HELD CASH AT 1 JANUARY CASH AT 31 DECEMBER

4

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NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation The Geelong Chamber of Commerce Limited has elected to early adopt the Australian Accounting Standards – Reduced Disclosure Requirements as set out in AASB 1053: Application of Tiers of Australian Accounting Standards and AASB 2010–2: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements. Accordingly, the entity has also early adopted AASB 2011–2: Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project – Reduced Disclosure Requirements and AASB 2012–7: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements in respect of AASB 2010–6: Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial Assets and AASB 2011–9: Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income. The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements of the Australian Accounting Standards Board and the Corporations Act 2001. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise. The financial statements, except for the cash flow information, 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 amounts presented in the financial statements have been rounded to the nearest dollar. Accounting Policies (a)

Revenue recognition

Membership is recognised on a basis that reflects the timing, nature and value of the benefits provided in accordance with AASB 118. Donations and Corporate sponsorships are recognised as revenue when received in accordance with AASB 1004. All revenue is stated net of the amount of goods and services tax (GST). (b)

Cash and Cash Equivalents

For the purposes of the cash flow statement, cash and cash equivalents include 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. (c) Receivables Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of recognition. Collectability of debts is reviewed on an ongoing basis. The directors believe that the full amount of debt is recoverable, and no doubtful debt provision have been made at 31 December 2013. Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest rate method, less any accumulated impairment. (d)

Plant and Equipment

Plant and equipment are brought to account at cost or at independent or directors’ valuation less, where applicable, any accumulated depreciation or amortisation. The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows which will be received from the assets’ employment and subsequent disposal. The expected net cash flows have not been discounted to their present values in determining recoverable amounts. Depreciation The depreciable amount of all fixed assets is depreciated over their useful lives commencing from the time the asset is held ready for use. A summary of the depreciation method and depreciation rates for each class of attached is as follows. Class of Asset Plant & Equipment Leasehold Improvement (e)

Method

Depreciation Rate

Diminishing Value

20%

Prime Cost

10%

Intangible Assets

Intangible assets are initially recognised at the purchase price. At each balance date the carrying value of the assets are reviewed to ensure that they do not differ materially from the asset’s fair value at reporting date. Where necessary, the asset is revalued to reflect its fair value.

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NOTE 2: REVENUE 2013

2012

$

$

764,993

477,125

92,216

91,652

Revenue from Operating Activities Subscriptions Government Grants Interest Other Total Revenue from Ordinary Activities

8,658

5,692

231,414

177,479

1,097,281

751,948

NOTE 3: EXPENSES Other Expenses Bank Charges

4,527

3,726

Insurance

3,759

3,833

Miscellaneous

6,199

4,209

Website development

16,507

2,682

Accounting/Bookkeeping

24,651

116

3,922

3,028

44,388

13,842

103,953

31,436

Relocation Expenses Other Expenses Total Other Expenses

NOTE 4: CASH AND CASH EQUIVALENTS Cash at Bank

110,676

43,252

Short Term Deposits

286,913

297,818

Total Cash and Cash Equivilents

397,589

341,070

Debtors

117,055

100,540

Total Receivables

117,055

100,540

NOTE 5: RECEIVABLES CURRENT

(a) Provision for Impairment of Receivables Current trade and term receivables are non-interest bearing and generally on 60 day terms relating to membership subsscription for 2014. These receivables are assessed for recoverability and a provision for impairment is recognised when there is objective evidence that an individual trade or term receivable is impaired. The directors have determined that there are no receivables currently subject to impairment. (b) Credit risk The company does not have any material credit risk exposure to any single receivable or group of receivables. The following table details the company’s trade and other receivables exposed to credit risk (prior to collateral and other credit enhancements) 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 company and the customer or counterparty to the transactions. Receivables that are past due are assessed for impairment by ascertaining solvency of the debtors and are provided for where there are specific circumstances indicating that the debt may not be fully repaid to the company. The balance of receivables that remain within initial trade terms (as detailed in the table) are considered to be of high credit quality. Gross Amount 2013

$

Past due and Past due but not impaired (Days overdue) Within initial impaired trade terms <30 31-60 61-90 >90 $ $ $ $ $ $

Trade and terms receivables

117,055

-

71,452

34,792

2,280

8,531

106,244

Total

117,055

-

71,452

34,792

2,280

8,531

106,244

2012 Trade and terms receivables

100,540

505

4,468

82,556

7,079

6,437

87,024

Total

100,540

505

4,468

82,556

7,079

6,437

87,024

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NOTE 6: PLANT & EQUIPMENT 2013

2012

$

$

At Cost Plant and Equipment Less Accumulated Depreciation Total Plant & Equipment

95,012

51,997

(31,042)

(24,325)

63,970

27,672

Reconciliations of the carrying amounts of each class of plant & equipment at the beginning and end of the current financial year is set out below. Plant & Equipment

Leasehold Improvement

Total

$

$

$

Balance at 1 January 2012

14,997

-

14,997

Additions

17,902

-

17,902

-

-

-

Depreciation expense

(5,227)

-

(5,227)

Balance at 31 December 2012

27,672

-

27,672

2,530

40,485

43,015

-

-

-

Depreciation expense

(5,697)

(1,020)

(6,717)

Balance at 31 December 2013

24,505

39,465

63,970

Disposals at WDV

Additions Disposals at WDV

NOTE 7: INTANGIBLE ASSET 2013

2012

$

$

Geelong Business Excellence Awards

85,000

45,000

Total intangible assets

85,000

45,000

The purchase price of this asset includes further instalments not yet defined. Refer to Note 19 for further information.

NOTE 8: INCOME IN ADVANCE Members Subscriptions for 2014 year

158,851

161,113

Total Income in advance

158,851

161,113

13,171

13,318

NOTE 9: PAYABLES CURRENT Trade Creditors Accrued payables

-

15,000

PAYG Withholding

43,751

10,390

GST Payable

43,751

46,277

69,447

84,985

Annual Leave

20,055

5,595

TOTAL

20,055

5,595

Long Service Leave

9,192

5,768

TOTAL PROVISIONS

29,247

11,363

NOTE 10: PROVISIONS CURRENT

NON-CURRENT

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NOTE 11: RECONCILIATION OF NET RESULT FOR THE YEAR TO NET CASH FLOWS FROM OPERATING ACTIVITIES 2013 Profit after income tax

2012

$

$

153,165

181,935

6,717

5,227

Non-Cash Flows in Profit Depreciation Changes in Assets and Liabilities: Increase/(decrease) in Employee Entitlements Increase/(decrease) in Payables

17,884

6,646

(15,538)

35,130 58,129

Increase/(Decrease) in Income in Advance

(2,262)

Decrease/(Increase) in Prepayments

(3,917)

-

Decrease/(Increase) in Receivables

(16,515)

(42,391)

Net Cash From Operating Activities

139,534

244,676

NOTE 12: FINANCIAL RISK MANAGEMENT The company’s financial instruments consist mainly of deposits with banks, local money market instruments, shortterm investments, 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: Financial assets - Cash and cash equivalents

397,589

341,070

- Loans and receivables

117,055

100,540

Total financial assets

514,644

441,610

Financial liabilities Financial liabilities at amortised cost: - Trade and other payables

69,447

84,985

Total financial liabilities

69,447

84,985

1,400

1,100

106,122

106,000

NOTE 13: AUDITORS REMUNERATION Remuneration of the Auditor of the Company for: - Auditing or reviewing the financial report

NOTE 14: KEY MANAGEMENT PERSONNEL COMPENSATION The totals of remuneration paid to key management personnel (KMP) of the company during the year are as follows: - Key management personnel compensation

NOTE 15: CAPITAL AND LEASE COMMITMENTS (a) No capital commitments (b) Operating lease commitments Non-cancellable operating leases contracted for but not recognised in the financial statements Payable – minimum lease payments: 40,400

-

- later than 12 months but not later than five years

- not later than 12 months

168,284

-

- later than five years

261,561

-

470,245

-

NOTE 16: SEGMENT REPORTING The company operated predominantly in one industry. The principal activities of the company relate to the promotion of commerce through liaison with related community groups and government. The company operates in one geographical area, being Geelong, Victoria, Australia.

NOTE 17: MEMBER’S GUARANTEE The company is limited by guarantee. If the company is wound up, the articles of association state that each member is required to contribute a maximum of $10 each towards meeting any outstanding obligations of the company.

NOTE 18: RELATED PARTIES During the year ended 31 December 2013, all transactions between related parties were on commercial terms and conditions no more favourable than those available to other parties, unless otherwise stated. The following transactions have been noted as significant transactions and therfore disclosed in the financial statements:

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An amount of $5,352.69 including GST was paid to Harwood Andrews, of which Joanne Dâ&#x20AC;&#x2122;Andrea is a principal, for legal fees pertaining to lease agreement, employment agreement, and new articles of association. An amount of $7,903.50 including GST was paid to the event management company, Plan.It.Roxie, of which Roxanne Bennett is the director, for event management services provided for the annual dinner and the Geelong Business Excellence Awards events.

NOTE 19: CONTINGENT ASSETS AND CONTINGENT LIABILITIES During 2012, the company purchased the Geeong Business Excellence Awards. At this time the outstanding payments cannot be accurately measured as the payments are reliant on profit targets being reached. The payment will be reduced if targets are not reached. 40,000

Due on or before 30/11/2014 if profit target reached

40,000

Total contingent liabilities

NOTE 20: EVENTS OCCURRING AFTER REPORTING DATE Since 31 December 2013 no matter or circumstance has arisen which had significantly affected or which may significantly affect the operations of the organisation.

NOTE 21: COMPANY DETAILS The company is Limited by Gurantee. The registered office of the company is Geelong Chamber of Commerce 2/10 Moorabool Street, Geelong VIC 3220

DECLARATION BY DIRECTORS In accordance with a resolution of the directors of The Geelong Chamber of Commerce Limited, the directors of the entity declare that: 1. The financial statements and notes, as set out on pages 1 to 12, are in accordance with the Corporations Act 2001 and: (a) comply with Australian Accounting Standards - Reduced Disclosure Requirements; and (b) give a true and fair view of the financial position of the company as at 31 December 2013 and of its performance for the year ended on that date. 2. In the directorsâ&#x20AC;&#x2122; opinion there are reasonable grounds to believe that the entity will be able to pay its debts as and when they become due and payable.

Director Dated this 3rd day of March 2014

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Geelong Chamber of Commerce Annual Report 2013  

Full Annual Report including Presidents Report, Financials and a review of 2013

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