Annual Report

2013/2014 ANNUAL REPORT 2013 | 2014

The ADAVB is an association of dentists committed to advancing the art, science and ethics of dentistry, the care of the oral health of all Victorians and the professional lives of its members.

COUNCIL, FAC AND STANDING COMMITTEES 2013/2014 Branch Council President Dr J Cherry Vice President Dr B Cvetkovic Immediate Past President Dr G Burt Honorary Secretary, Federal Councillor Dr M Bowman Federal Councillors Dr A Barnes A/Prof N Hewson Executive Councillors Dr Ben Keith Dr E Milford Councillors Dr D Curnow Dr N Dobromilsky Dr A Gikas A/Prof M Hopcraft Dr S Liew Dr G Morris Dr G Sanghvi Dr W Shnider Dr A Stewart Constitution & Policy Committee A/Prof N Hewson (C) Dr M Bowman (HS) Dr C Callahan Dr S Cottrell Dr S Liew Continuing Professional Development Committee Dr B Keith (C) Dr J Levecke (Appointed Nov 2013) Dr L Mark Dr K Pandya Dr A Sahhar (RG&SC Rep) Dr A Solomon Prof M Tyas AM Dr D Watkins Dr A Barberi (RG&SC Rep) (Resigned March 2014) Dr E Chen (Resigned March 2014) Dr E Lim (Resigned Sep 2013) Ms C Jovanovic (non-voting member) (Appointed March 2014) Dr L Phu (Appointed March 2014) Ex-Officio Dr J Cherry Dr M Bowman

Defence & Advisory Committee Dr K Homewood (C) Dr I Cernavin Dr G Barton (Appointed March 2014) Dr D Curnow Dr K Morris (Appointed June 2014) Dr G Ward Dr P Wright Dr E Kilov (ADATB Rep) Dr J Chen (Resigned May 2014) Dr P Hays (Resigned Feb 2014) Disputes & Ethics Committee Dr A Gikas Dr A Barnes (DC) Dr G Morris Dr J Rattray Dr A Stewart (C) Mr R Story AM, RFD Dr F Wardlaw Honours & Awards Committee A/Prof N Hewson (C) Dr A Barnes Dr R King AM Dr J Matthews (HS) Mr R Story AM, RFD Oral Health Committee Dr A Gikas (C, PR) Dr J Fernando (DC) Dr K Georgalis (HS,T) Dr N Cader Dr N Chawla Dr N Cochrane (Until Nov 2013) Dr C Darby (non-voting member) Ms A DiPaolo (DHAA) Dr J Fedorova Ms S Kearney (DHSV) (Until Feb 2014) Ms S Sofronoff (DHSV) Dr G Sanghvi (Alt PR) Dr J Ward Dr S Wise (Appointed Feb 2014) Dr J Yap Professional Provident Fund Policy Advisory Committee Dr T Cutler (C) Dr R De Poi (DC) Dr S Liew Dr J Locke Dr B Taylor Public Dentistry Committee Dr E Milford (C) (Alt PR) Dr E Chen Dr K Hallett Dr S Koshy Dr S Nguyen Dr R Shankumar

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Dr W Shnider (PR) Dr M Stephens Dr J Vasanthakumar Recent Graduates & Students Committee Dr A Bhide (2009 grad) (C) (Until Dec 2013) Dr A Barberi (2010 grad) (C) Dr O Cvekus (2011 grad) nonvoting member Dr A Gokhale (2012 grad) nonvoting member Ms C Jovanovic (FYS, MDS) Dr K Lai (2013 grad) Dr S Liew (Alt PR) Mr M Mladenovic (FYS, La Trobe) Dr L Phu (2011 grad) (DC) Dr A Sahhar (2012 grad) Dr G Sanghvi (PR) Dr A Sproll (2013 grad) Dr A Tan (2012 grad) Mr T Webb (PYS, MDS) (Appointed Jan 2014) Ms E Pow (La Trobe) Sports & Social Committee Dr L Wordsworth (C) Dr T Chan Dr S Cran Dr S Fairbairn Dr G Sanghvi (PR) Dr B Moore Dr E Nguyen Dr T Probert Dr J Sternson Dr B Cvetkovic (Alt PR) Third Party Committee Dr A Pacella (C) Dr D Brown Dr C Chang Dr J X R Chen Dr F Davis Dr G Fast Dr R I Gillies Dr G Morris (Alt PR) Dr T Probert Dr J Skilton Dr N Dobromilsky (PR)

Year in Review

PRESIDENT’S FOREWORD own and operate large clinics, and an increasing percentage of our members are employed dentists rather than practice owners. Different types of advice and support are needed for this group. Funding for public dental practices remains static, so this limits growth in employment in this sector and the ADA is turning its attention to this need for the foreseeable future. Scope of practice issues and the structured professional relationship between dentists and operative auxiliaries is still not clearly defined.

On a more positive note, the Child Dental Benefits Scheme has got off to a good start in Victoria. Many eligible children will be able to access quality preventive and restorative care and enjoy the ongoing benefits of good oral health. I appreciate the excellent work done by Branch staff and the Federal Office in preparing summaries and guidelines for practitioners’ everyday use.

Our Practice Plus team provides advice on all aspects of practice set-up, management, compliance and accreditation. The decision to provide all members with free access to the Practice Support Services Manual was a key value addition during 2013/2014.

The Privacy Manual, published recently and sponsored by Guild Insurance is another example of the Branch at work providing resources to make your practising life easier.

My year as ADAVB President was full of interest and challenges.

eviDent continues to gain momentum with exciting new projects. The eviDent board is looking at fundraising models so it can continue its valuable work.

I enjoyed meeting so many of you, our members, at Group meetings, CPD activities, sporting and social events, and hearing your opinions and concerns.

Good communication between the Branch office, the Council and Committees and the membership generally, is vital. We strive to support you in all aspects of your professional lives.

The Continuing Professional Development Committee and staff have given us some innovative programs this year. The breakfast and dinner meetings in city venues were well-supported by members. Particular thanks for their work on the August 2014 Convention.

It takes sustained effort to arrange this, the biggest CPD event on our calendar.

I also enjoyed representing you at meetings with dental profession and industry leaders, the two Victorian dental schools, and with the Minister of Health and his opposition counterpart. I attended the opening of the new hygienist course at RMIT. Council recently decided that ADAVB should meet with representatives of the Dental Hygienists Association of Australia to discuss matters of common interest.

The Oral Health Committee has worked tirelessly to promote better oral health. Their representatives worked at the Baby and Toddler Show and were involved in the Smokefree Smiles project and support the LiveLighter program. The articles they produce for the Better Health Channel are constantly referenced.

The sheet on Dry Mouth was accessed over 140,000 times in 2013/2014.

I also attended a large number of educational and social events run for the benefit of dental students and recent graduates. At Council, we are aware of the changes in the dental landscape which makes professional life so challenging for our youngest members. Our surveys, taken in two consecutive years, indicated an increase in underemployment and unemployment amongst recent graduates. Despite valiant efforts by all Branches and the ADA Inc., dentistry remains on the Commonwealth skilled occupation list. Therefore overseas trained dentists continue to register and seek work in Australia.

Corporate entities, including private health insurers,

I would also like to commend the communications team for their work on the website. The new look and layout is stylish and functional. Our digital media presence continues to evolve. We have regular blog posts and you can follow us on Facebook and Twitter.

Two former Branch Presidents - Drs Anne Stewart and Greg Morris - stepped down from Council in June 2014. I sincerely thank them for the many years they

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Year in Review

devoted to helping the profession and the Branch. To all Councillors, Committee members and Group office bearers, thanks for your time, effort and ideas. To our CEO, Garry Pearson, and all the Branch staff, my sincere thanks for everything you have done for me and the ADAVB this past year.

Health Committee, which has responsibility for advising on the Statewide Oral Health Promotion Plan.

The Branch continued its representation on the Smoking Cessation and Oral Health project being managed by Quit Victoria. This project will update resources for dental practices seeking to use opportunistic interventions to assist patients ready to consider quitting use of tobacco products.

Dr Jo-Anne Cherry President 2013/14

GENERAL REVIEW Dr Andrew Gikas, Chair of the Oral Health Committee, continued as a member of the Healthy Families, Healthy Smiles Project Reference Group within the Department of Health.

Key achievements of the Branch in each of the major goal areas in the Branch Strategic Plan, were:

Governance and Administration The Branch commenced promotion of member participation in dental rescue days being conducted by the National Dental Foundation.

This led to a substantial increase in pro bono treatment being offered to welfare clients.

In October 2013 changes to the Rules were approved to comply with the Associations Incorporation Reform Act 2012.

Additional changes were made to Branch ByLaws and Branch Policy Statements (see the Constitution and Policy Committee report for details).

Over 40 members volunteered to participate in the Mobile Dental Care program with the Royal Flying Doctor Service and DHSV. Monthly visits to Robinvale have been conducted with screening, treatment and oral health promotion activities undertaken both at Murray Valley Aboriginal Cooperative and in local schools and workplaces.

At the biennial election in May - June 2014, two Council members retired after valuable service.

Dr Anne Stewart (President in 2010/11) and Dr Greg Morris (President in 2006/07) were warmly acknowledged by Council at their last meeting in June.

The Caring for your Kids’ Teeth Facebook page was maintained with additional new content uploaded each week.

New Council members who were elected to the vacant positions for 2014 - 2016 are Dr Susan Wise and Dr Kevin Morris.

Better Health Channel Fact Sheets reviewed during the 2013/14 year, include: o Teeth development in children (reviewed August 2013) o Oral piercings (reviewed August 2013) o Diabetes and oral health (reviewed August 2013) o Tooth loss in children (reviewed October 2013) o Dental treatment – overview (reviewed January 2014) o Dry mouth syndrome (reviewed March 2014)

The 2013 Director Development program focussed on increasing member engagement and targeting members in each major segment.

As in the previous financial year, Council agreed to only increase Branch subscription rates by 2%, lower than inflation yet again. This was because the dental profession has been experiencing difficult economic circumstances since the closure of the Chronic Disease Dental Scheme in late 2012.

A new Fact Sheet was provided to the Better Health Channel on Dental Erosion.

Directors and members of the Finance and Audit Committee again participated in director training programs, especially related to financial responsibilities of directors, risk management and strategic planning.

Between 1 July 2013 and 30 June 2014, the Dry Mouth Fact Sheet was the most frequently viewed of the dental resources on the Better Health Channel (137,915 page views) while Teeth Development in Children was the next most viewed (99,037 page views).

The National Dental Foundation Victorian State Coordinator is now hosted within the ADAVB office.

Members of the Oral Health Committee again promoted effective oral hygiene at the Baby and Toddler Show 2014.

Oral Health Dr Greg Morris and Mr Garry Pearson were appointed as members of the DHSV Population

New PowerPoint presentations for member use in oral health promotion were developed and

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Year in Review

included in the Document Exchange on the Branch website.

An updated Privacy Manual was distributed courtesy of generous sponsorship by Guild Insurance.

Continuing Professional Development Representation and Affiliation The Early Clinical Essentials program was a key offering for younger members.

Senior Branch representatives met with Minister for Health, The Hon. David Davis regarding State and Federal dental funding.

The Leadership Development Program conducted

by Leadership Victoria for health professional associations was successfully completed in 2013 and offered once again in 2014.

Further meetings were held with the AHPRA Victoria General Manager to discuss notification and disciplinary processes.

Extensive preparatory work was completed for the Branch Convention scheduled for August 2014.

ADAVB was represented on the Victorian Statewide Oral Health Promotion Strategy Steering Committee, and was pleased to authorise its logo being included on the Plan which has now been published by the Department of Health.

A new mentoring program was developed in partnership with Leadership Victoria, which saw over 80 experienced members offer to assist 30 recent graduates. Following evaluation of the 2014 program, it is hoped to expand this offering to more newly registered practitioners.

The Branch provided substantive input to ADA Inc. submissions on: o AWPA Skilled Occupation List Submission o DBA Private consultation - 5 registration standards and CPD guidelines o Final report on ADAVB New Graduate Workforce survey o National code of conduct on unregistered health practitioners o Competition Policy Review o Senate Inquiry into out-of-pocket health care costs o Abolition of ANHPA o Abolition of HWA o Department of Environment consultation discussion paper on the Minamata Convention o MSAC CBCT recommendation to restrict MBS item number use to exclude General Dentists o DBA Public consultation - 5 registration standards and CPD guidelines.

Dental Workforce Education and Training The Branch highlighted workforce oversupply issues in a number of ways during 2013/14, including: Presentations to student seminars; and A further workforce survey, which demonstrated continuing underemployment of new and recent graduates, and reduced average hourly remuneration.

Third Parties Input was provided to the ADA Inc’s brochure that outlines key points about dental care and private health insurance.

ADAVB and Guild Insurance Ltd provided extensive support to members involved in Medicare CDDS audits in accordance with entitlements under the GIL Dentists Liabilities Policy. A checklist for members to aid their compliance with CDDS obligations and audit processes was published with advice from Meridian Lawyers.

• ADAVB submissions were made in relation to: o Competition Policy Review (June 2014) o Inquiry into the impact of the Carbon Tax on health services (February 2014) o Victorian State Pre-Budget 2014/2015 (December 2013) o Further submission - Private Hospitals and Day Procedure Centre Legislation (August 2013) following an earlier one during 2012/13 o Comment on the discussion paper 'Reform to deductions for education expenses' released by the Treasury on 31 May 2013 (July 2013) o DBA Private consultation - 5 registration standards and CPD guidelines (November 2013).

Dental Practice Safety and Quality The very substantial suite of practice administration resources offered within the Practice Support Services Manual was made available to all members at no cost for the first time.

Extensive support was provided to members registering to undergo dental practice accreditation.

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Year in Review

which have obligations to the ACNC, such as eviDent, will continue to report to them until the legislation is passed.

It has been a challenging year for the Branch financially but, being a Convention year, we are cautiously optimistic that a better surplus result will be achieved for 2014/15. We continue to work towards managing the Branch’s finances to enable provision of the best possible support to members.

REPORTS FINANCE AND AUDIT COMMITTEE The surplus result of $20,214 is lower than anticipated for the 2013/14 financial year, which was chiefly due to reduced income from various sources.

As foreshadowed in last year’s report, unemployment and underemployment of recently registered dentists and the subsequent financial pressures on them has been a concern. A number of members reclassified to part time and concessional classes. The Branch has been working to provide greater support to younger members through various initiatives, including the Employers’ Guide and a mentoring program.

After many years service, I have chosen to stand down from Council, and therefore from my role as FAC Chair. It has been a pleasure to serve the membership in this way.

Dr Greg Morris Chair

In addition to these measures, the Branch and the ADA Inc. have recognised financial pressures on all members by introducing a relief package for those working only a small number of hours and providing the option of instalment payments for subscription renewals. Also noteworthy was the decision to make the valuable collection of practice administration resources in the Practice Support Services Manual available to members as a free member benefit.

COMMUNITY RELATIONS AND PROFESSIONAL CONSULTANT SERVICES – (ADAVB ASSISTED DISPUTE RESOLUTION SERVICES ADRS) The service continues to utilise the expertise and time of the ADAVB CRO/PCs and the workload remains steady. Dr Dianna Evans continued to assist in managing this load and, from time-to-time, locums Dr Tony Robertson and Dr Ruth Paluch have assisted.

Branch subscription rates were increased by less than CPI in 2013/14 and again for 2014/15. With subscription revenues increased by only 2% in each year and inflation of 2.5-3%, efficiencies are being implemented to certain expenditures.

The ADA Tasmania Branch has been utilising the ADRS since mid-2013. Both the public and Branch members can ring to seek advice from the team.

Recently the ADA TAS newsletter published a letter from a member who had been assisted by a CRO/PC, stating the value and appreciation of this service. In early May I attended a CPD day in Hobart with presenters from Guild Insurance, Meridian Lawyers and the DBA. This was very successful in outlining risk management strategies.

Guild Insurance premiums have increased by 9% for the 2014/15 subscription period, as was actuarially required, and the Branch will continue to monitor the effect of this increase and other financial pressures on membership figures.

Financial support for the eviDent Foundation will be reduced for 2014/15, given that projects have not required the level of support previously provided for in the budget, and the Foundation has now commenced more active fundraising. It is hoped that this will generate significant income over a relatively short period and allow eviDent to support itself into the future.

Team members have delivered lectures to new graduates and final year students, as well as facilitating the Branch’s annual transition to practice seminar.

The CRO/PCs have continued with professional development, including peer review sessions. As a result of one of these workshops and discussions with the Guild Insurance claims team, ADAVB has streamlined a number of administrative tasks. Early in 2014 the CRO/PCs assisted in collating, interpreting and then generating advice on the CDBS. Together with ADA Inc. advice, ADAVB provided members with guidance prior to, and in the early establishment of the scheme. This was considered a high priority due to the experience the membership had with the CDDS and the importance of entering the scheme wellprepared.

ADA Tasmanian Branch Members are now being provided with support from the ADAVB CRO/PCs and the Member Assistance Program (MAP) has also been extended to cover them. Guild funding has been extended to allow for the CRO/PC support; while Tasmanian Branch Members are being encouraged to contribute to the Benevolent Fund as Victorian Branch Members do, thus funding MAP services.

The Finance and Audit Committee is in the process of reviewing the Branch’s investments, on advice from JB Were, with a view to increasing returns and building reserves to support members into the future.

The ADAVB CRO/PCs have continued to develop a good relationship with the Health Service Commissioner’s investigative staff and, in some cases, successfully managed claims through the ADRS. This is beneficial as it saves members the time

Legislation is likely to go through Federal Parliament shortly to abolish the Australian Charities and Not-for-profit Commission (ACNC). Organisations

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Year in Review

and stress involved investigation.

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prolonged

statutory

BENEVOLENT FUND The Board of Trustees - Dr Bruce Drysdale, Dr Ann Goodrich and Dr Greg Tilley, together with the Branch President and Hon. Secretary ex officio, is pleased to present its report.

However, inadequate records continue to result in good clinical work being let down by poor records in a number of cases. This has also been highlighted in some health fund audits - lack of records has meant that it is not possible to demonstrate or support explanations put forward by some members who have been audited.

Compared to the previous relatively steady financial year, the Fund has encountered two very genuine requests for assistance from members with serious health or family issues causing major financial problems due to cessation of practice.

The CRO/PC team relies heavily on other people for assistance and advice. I thank Mrs Maria Omizzolo, the Community Relations Administrative Officer, without whom the CRO/PCs would be inundated not only with our usual workload but with a huge administrative burden as well. I also thank the Guild Insurance claim team and members of both panel lawyer firms, Meridian Lawyers and K&L Gates, for their contributions leading to the efficient running of this highly regarded member service.

Discussions have taken place with those concerned, together with considerable compassionate assistance from our CEO Mr Garry Pearson.

Quite substantial financial support has been provided and thankfully acknowledged.

The Fund is an essential aspect of the Branch’s care of its members, and the trustees in turn encourage all members to donate annually. It should also be reminded that the Members Assistance Plan (MAP) is another responsibility of the Fund, underlining the need for both sources of finance - Branch revenue and the generosity of members - to retain a safe margin.

Dr Eryn Agnew Community Relations Manager/Professional Consultant

MEMBERSHIP Statistics at 30 June for 2013 and 2014 show:

Active (private) Active (Government Service) Practising Spouse Concessional Restricted Hours

2013 2296

2014 2281

208

203

27

28

304

359

Concessional – 70/30

62

55

Concessional Retired

66

67

Concessional – Post Graduate

25

51

5 14 781 3788

5 14 718 3781

Concessional – Service Honorary and Honorary Life Student/ADC candidates TOTAL

The Fund’s financial position is incorporated in the Statement of Profit and Loss of Other Comprehensive Income in this Annual Report.

Dr Bruce Drysdale Chair

STANDING COMMITTEE REPORTS CONSTITUTION AND POLICY COMMITTEE The primary role of the Constitution and Policy Committee is to advise Council on matters related to the Branch Rules, By-Laws and Branch Policy Statements. The Constitution and Policy Committee was extremely active and continued to fine-tune the Rules, By-Laws and Branch Policy Statements.

VALE

Rules

The deaths of the following members during the period July 2013 to June 2014 are recorded with sadness.

In October 2013, at the AGM, significant changes to the Rules were approved to comply with the Associations Incorporation Reform Act 2012.This involved amendments to Rules 3, 4, 8, 11, 12, 15, 17, 23, 33, 38, 41, 48, 49, 56, 59, 61, 62, 76, 80, 81, 82, 86, 89, 90, 95, 101, 104, 105, 107, 109, 111, 114, 118 and 119.

BERGMAN, John COCHRANE, Nathan DAWKINS, John HILL, Anthony LEONG, Allin LYNCH, Eugene MARTINI, Ekke McNEILL, David James PURDUE, Ronald (President 1973-74) TILMANIS, John TREVAN, Peter

By-Laws In July 2013, Branch Council amended By-Law 2 “Ethics” to align it with ADA Inc. By-Law II, to By-Law 3 “Management of Disputes and Ethical Complaints” to clarify the requirements around attendance of

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Year in Review

Members at ethics hearings, By-Law 6.2 “Composition and Objects of Standing Committees” and By-Law 9 “Branch Indemnity Scheme”

needs. The Committee is supported by a professional team, delivering more than 40 CPD activities annually.

The highlights, included: The What’s the Evidence series - (i) Caries and Its Sequelae and (ii) Common Clinical Questions were well attended by over 180 delegates;

In February, Branch Council amended By-Law 4 “The Regional Groups of the Branch” and By-Law 8 “Membership and Subscriptions” to allow Student Membership for some postgraduate students.

The hands-on workshops were popular, and in particular, the ones on relative analgesia, medical emergencies and infection control conducted in the Branch’s training rooms;

The following month Branch Council amended By-Law 2 “Ethics” to align it with changes to ADA Inc. By-Law II, By-Law 3 “Management of Disputes and Ethical Complaints” to clarify members obligations, By-Law 6.2 “Composition and Objects of Standing Committees” to retitle the “Sports and Social Committee and By-Law 7 “Affiliation” to reduce the percentage of members of an affiliated organisation who are required to be ADAVB Members from 100% to 80%.

The events held in Ballarat, Bendigo, Lorne, Shepparton, Warrnambool and San Remo were each a success, with many delegates expressing gratitude to the presenters for giving up their valuable time to share their expertise with them;

Branch Policy Statements

The Early Clinical Essentials series, created together with the Recent Graduates and Students Committee are increasingly gaining popularity, where learning is a key focus along with sharing with one another;

In July 2013 Branch Policy Statement 1.26 “Identifying and Handling a Conflict of Interest” was amended by Branch Council.

In December 2013 Branch Policy Statements 1.7 “Benefits, Reimbursement and Remuneration for Branch Officers” and 1.26 “Identifying and Handling a Conflict of Interest” were amended by Branch Council.

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In March 2014, Branch Policy Statements 1.5 “Council” and 1.6 “Executive” were rescinded and a new Branch Policy Statement 1.27 “Occupational Health and Safety” was approved by Branch Council.

The following policies were also amended by Branch Council 1.2 “ Finance”, 1.9 “Branch Communications”, 1.11 “CR Community Relations Officers/Professional Consultants and Community Relations Manager”, 1.12 “Knowledge Management Administration”, 1.13 “Branch Archives”, 1.19 “Employee Disciplinary”, 1.20 “Employee Disputes Resolution and Grievance Handling” 1.22 “Records Management”, 1.20 “Employee Disputes Resolution”, 1.21 “Employee Termination”, and 1.25 “Distribution of Member Contact Details”.

The Committee focused on planning the 2014 Convention which has the theme Evolution and Revolution in Dentistry. The convention program for dentists will feature international and local experts who will present on the fundamentals of dental diseases, as well as the latest treatment modalities covering the full scope of dental practice.

As Chair, I am delighted to be working with the talented experts in the Committee and I remain deeply indebted to every member for their contribution and professionalism. It is with their commitment and altruism that we are able to provide independent, evidence-based quality CPD programs to our colleagues to support their professional development needs.

I am equally proud to work with the CPD Unit – Caroline Kaur (Manager), Nancy Mai, Samantha Jackson (current CPD Co-ordinators) and Sandie Luu (past Co-ordinator). I thank everyone for their support of the Committee’s activities throughout the year.

I would like to thank the Committee members and Ms Caroline Burrowes for their contribution to the Committee’s activities.

Assoc. Prof Neil D Hewson Chair

Dr Ben Keith Chair

CONTINUING PROFESSIONAL DEVELOPMENT COMMITTEE

DEFENCE AND ADVISORY COMMITTEE

The CPD Committee’s strategic purpose is primarily to advise and plan high quality CPD activities for members and other dental professionals. The nine members represent the diversity of dentistry with each one instrumental in the development of the programs for our fellow colleagues’ professional development

The primary role of the Defence and Advisory Committee is to provide advice on clinical and other dentally related matters to the Branch's professional indemnity insurer and solicitors.

The main activities, included:

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Year in Review

Ethics panel members who volunteer their time to professionally and confidentially try to resolve these difficult and often distressing issues.

Bi-monthly meetings to discuss new cases and the status of existing cases; Publication of articles in the Newsletter and the Australian Dento-Legal Review to update members on developments in the dento-legal area, explaining members’ obligations and the current problems associated with new and existing laws and trends such as Medicare, dental corporates etc;

Three cases were considered in the last year. Another case was deemed not to be an issue for deliberation and appropriately referred.

Council resolutions on all Disputes and Ethics matters are reported in the ADAVB Newsletter. No parties are identified. The reports aim to prevent members from finding themselves involved in similar situations by alerting them to the type of disputes that have recently occurred.

Contacting certain members to counsel them on their behaviour and, where necessary, arrange for them to obtain extra clinical teaching to improve their skills.

Dr Anne Stewart Chair

The Committee and the ADAVB, on behalf of its members, thanks Dr Igor Cernavin for his leadership as Chair of the committee for almost 13 years. We are pleased he will continue to serve on the committee and his expert advice is very much appreciated.

HONOURS AND AWARDS COMMITTEE The Honours and Awards Committee continues to address its duties, and met on two occasions. The Committee assessed and reported to Council on recommendations for awards to be made within the Branch and was involved in nominations and advice for awards external to the Branch, both for members and non-members who have made outstanding contributions to dentistry and the community.

Thanks must also go to Dr Peter Hays, who resigned as a member this year, after 10 years of service. His advice was very important in the overall running of the committee.

Dr John Chen also resigned from the Committee - We appreciate his contributions.

Contributions to the community, dentistry and/or the ADA from many of our members continue to be of exceptionally high quality. This year committee recommendations resulted in Branch Council conferring upon three dentists the Dentistry Achievement Award and three other dentists the Award for Distinguished Service.

A big thank you to the Committee members and to Ms Alison Davies and Ms Leanne Toby from Guild Insurance, Ms Kellie Dell’Oro and Mr Tamir Katz from Meridian Lawyers, and Ms Priya Milton from K&L Gates, who give up their free time for the benefit of the members.

Also the Committee had been involved in supporting two successful Order of Australia nominations. These persons warrant both our admiration and congratulations for their outstanding work and dedication.

Dr Kip Homewood Chair

DISPUTES AND ETHICS COMMITTEE The Committee’s objectives are: To conduct investigations into disputes and ethical complaints in accordance with Rules 107 and 108 and By-Laws 2 and 3;

I would like to thank the Committee members and Ms Meaghan Quinn for their contribution to the Committee’s activities.

Assoc. Prof Neil D Hewson Chair

To make recommendations to Council regarding the implementation of By Laws 2 and 3; and

ORAL HEALTH COMMITTEE

To deal with any matters which are referred to the Disputes and Ethics Committee by the Council.

Anyone notifying ADAVB of a potential dispute or ethical matter breaching the above Rules or By Laws, is sent a form which clearly sets out procedures, timelines and the limits of potential penalties which can be imposed by ADAVB.

The primary role of the OHC is to inform members, other dental professionals and the general public about the prevention of oral diseases and the maintenance of good oral health. The committee meets four times a year and, as Chair, I am very grateful and thankful to our committee members for the large amount of work and time that they donate and provide.

The Committee supports ADAVB’s efforts to have a system following the principles of natural justice. The Branch is indebted to all experienced Disputes and

The main activities undertaken by the OHC were: Maintained the ADAVB ‘Caring For Your Kids’ Teeth Facebook page;

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Year in Review

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Provided oral health advice to families at the 2014 Melbourne Baby and Toddler Show and developed resources such as the ‘What’s In Your Baby’s Bottle’ poster to help deliver targeted messages;

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Updated, reviewed and developed fact sheets for the Better Health Channel on a variety of oral health topics;

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Involvement in the “Rethink Sugary Drink” campaign, run by the Cancer Council, Diabetes Australia and the National Heart Foundation of Australia, and supported by ADA Inc;

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Provided support for Branch activities including the Health Promoting Practices pilot project and Chairside Chat fact sheets for the ADAVB Newsletter;

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series of detailed articles in the ADAVB Newsletter for the benefit of both Fund and Branch members alike.

The Committee has worked with Moneywise and IOOF to help provide and publicise a contemporary product in a Public Offer Fund for the advantage of Branch members, if they wish to use it. There are further developments possible in this sphere involving the PPF. The Committee would welcome expressions of interest from potential new members of the PAC. In addition, the committee records its thanks for the efforts and support of the Branch CEO Mr Garry Pearson.

Dr Tim Cutler Chair RECENT GRADUATES AND STUDENTS COMMITTEE

Ran a Dental Injury Management course for Sports Medicine Australia (Vic. Branch) for the second year running, to give sports trainers an increased knowledge of the immediate management and the prevention of dental injuries.

The role of the RG&SC is to identify and address issues facing students and new graduates and support them during their transition into the dental profession. By including representation from both La Trobe and Melbourne universities, current students and graduates, the RG&SC has an ADC graduate to aid in ADAVB’s engagement with overseas trained dentists who have entered the workforce via ADC examinations.

I would like to thank Sonia Georgiades for her assistance and dedication towards helping the OHC in promoting good oral health.

We pay tribute to the late Dr Nathan Cochrane for his countless achievements during his time as Chair and a valued member of the Oral Health Committee. We honor him as an outstanding colleague and friend who will be sorely missed.

Activities undertaken, included: The ‘Starting Your Career’ workshops held for final year students of both dental schools during their ‘back to base’ weeks.

Dr Andrew Gikas Chair

Production of the Employers’ Guide containing profiles of final year students for prospective employers.

PROFESSIONAL PROVIDENT FUND POLICY ADVISORY COMMITTEE

The Introduction to the Dental Profession seminar provided advice to new graduates entering practice.

The Committee has met four times this year to perform its key functions of representing the interests of members of the Fund, providing advice to Branch Council on matters related to the operation of the Fund and other superannuation related matters, when requested. Additionally, it has fostered an ongoing relationship with the Trustee and service providers of the Fund. This serves to help facilitate efficient and effective operation of the Fund for the ongoing benefit of its members.

The Recent Graduates’ Support Forum was an interactive discussion session for recent graduates to encourage dialogue of issues faced in early practice.

The Career Choices seminar offered recent graduates with insight into furthering their career in dentistry including the multitude of pathways which they can choose to pursue.

The Committee continues to oversee the superannuation fund operation under the auspices of Moneywise and Spectrum Super - a part of the newly re-launched IOOF organisation. As in past years, there have been changes in superannuation regulations and ongoing government influences.

Held in October, the Recent Graduates’ Reunion Cocktail Party allowed networking opportunities in a social setting.

Discussing current workforce and employment issues facing new graduates and making relevant suggestions to the Branch.

There have been productive discussions across the breadth of superannuation changes, informing the

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Year in Review

Members in environment.

Actively liaising with the CPD Committee during the development of the 2014/15 Early Clinical Essentials series.

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social

The events that were organised, included: Lawn Bowls Fundraising Twilight – November 2013;

To encourage further active interaction of younger members with the Branch, the RG&SC made recommendations about using of social media to communicate with students and recent graduates.

The RG&SC plans to develop new activities and support measures, especially regarding to workforce issues.

Motorsports Day at Sandown in October 2013; Fly-Fishing Weekend Millbrook Lakes (near Ballarat), in November 2013;

I would like to thank Ms Sonia Georgiades and the Committee for their valuable contributions.

Spring Golf Day at Royal Melbourne Golf Club in October 2013;

Dr Anthony Barberi Chair

Tennis Day at Kooyong Lawn Tennis Club in February 2014;

PUBLIC DENTISTRY COMMITTEE

Autumn Golf Day at Metropolitan Golf Club in March 2014.

Public dentistry has been through a period of tremendous flux due to changes in State and Federal funding for public dental services. The National Partnership Agreement, as well as the cessation of the Teen Dental Scheme and commencement of the Child Dental Benefit Scheme, impacted on the funding and governance of the public dental sector.

The focus for these events is to continue the promotion of ADAVB sporting/social events by maintaining and expanding sponsorship to help defray members’ costs.

Thank you to the Committee members and Ms Roula Papatheodorou for their contribution in running the successful events of 2013 - 2014.

Overall, the funding boost has lead to the employment of more dentists in public clinics across Victoria, and the ability of clinics to open extended hours.

Dr Laurie Wordsworth Chair

The Committee took the lead in analysing these changes and ensuring that they meet the objectives of the ADAVB - to improve the dental health of the public and to promote the highest standards of professional dental care.

THIRD PARTY COMMITTEE This year the TPC continued to focus on health funds’ Preferred Provider (PP) schemes and their relationship with members. We also addressed a number of health fund incident reports submitted by members and gave advice which in turn provided solutions to a number of enquiries.

ADAVB took an active role in the Enterprise Bargaining Agreement for public sector dentists, by nominating BroadReach ER to act on behalf of member dentists. The committee provided advice to the Branch to ensure members’ views were represented.

The Committee continued to monitor issues arising with the purchase of Dental Corp by BUPA. One of the main concerns is that BUPA may direct patients to Dental Corp clinics which may disadvantage both BUPA PPs not working at Dental Corp practices and non-PPs. A conflict of interest may also be present as patients may not be aware of the new relationship between Dental Corp and BUPA. The Committee monitors emerging trends such as nib’s new arrangement to facilitate ‘medical tourism’, including dental treatment overseas. Many aspects of this arrangement are concerning such as nib’s “guarantee” on treatment involves local nib PPs carrying out any corrections free of charge.

The commencement of mandatory accreditation of public dental clinics impacted on the governance structures and processes and allowed the committee to provide valuable advice to the Branch on the accreditation process.

I thank Ms Caroline Burrowes and Ms Roula Papatheodorou for their contribution and the Committee members for their valuable input throughout the year.

Dr Elizabeth Milford Chair

We were also involved in DHSV’s private voucher scheme review where various recommendations were made, specifically to do with treatments available under each scheme and fees.

SPORTS AND SOCIAL COMMITTEE The primary role of the Sports and Social Committee is to organise events to bring together ADAVB

I thank Committee members for offering their time and expertise in providing guidance and assistance to

10

Year in Review

fellow members and putting back into the profession in numerous ways.

I give a special thanks to Ms Sonia Georgiades for her great work to support the TPC. Sonia's professionalism and efficiency is paramount to the smooth and productive function of the Committee.

Dr Angelo Pacella Chair

EXTERNAL REPRESENTATIVE REPORT RMIT Advanced Diploma in Oral Health (ADOH) The RMIT ADOH committee is an advisory group for the new dental hygienist course at RMIT. This course is specifically for dental assistants who are training to be dental hygienists.

Major activities: Official launch of the RMIT ADOH course and training facility by the previous Federal Health Minister, Ms Tanya Plibersek Undergoing course accreditation by the Australian Dental Council Has first and second year students in the course Dr Susan Wise

11

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2014

Economic Entity Note Continuing operations Revenue Finance income Staffing and related expenses Meetings, functions and events Administration expenses Depreciation expense Other expenses Surplus before income tax Income tax expense Surplus for the year Other comprehensive income Items that may be subsequently reclassified to profit or loss Net fair value gain on available for sale financial assets Total comprehensive income for the year Surplus attributable to: Members of the entity Surplus for the year Total comprehensive income attributable to: Members of the entity Total comprehensive income for the year

Parent Entity 2014 $

2014 $

2013 $

2

3,881,562

4,256,172

3,841,265

4,190,676

3

123,301 (2,120,526) (263,348) (805,012) (263,064) (498,010) 54,903 54,903

146,884 (1,996,544) (542,624) (703,215) (254,880) (458,775) 447,018 447,018

120,277 (2,120,526) (262,710) (803,043) (263,064) (491,985) 20,214 20,214

144,682 (1,996,544) (540,898) (701,984) (254,880) (493,110) 347,942 347,942

50,784

96,746

50,784

96,746

105,687

543,764

70,998

444,688

54,903 54,903

447,018 447,018

20,214 20,214

347,942 347,942

105,687

543,764

70,998

444,688

105,687

543,764

70,998

444,688

4

12

2013 $

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2014 Note

ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Other current assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Financial assets Property, plant and equipment TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and other payables Employee provisions

Economic Entity

Parent Entity 2014 $

2014 $

2013 $

7 8

8,637,352 103,725 121,866 8,862,943

9,214,707 183,749 131,282 9,529,738

8,430,123 100,980 121,190 8,652,293

9,064,527 176,751 130,669 9,371,947

9 11

750,326 5,677,866 6,428,192 15,291,135

674,414 5,830,194 6,504,608 16,034,346

750,326 5,677,866 6,428,192 15,080,485

674,414 5,830,194 6,504,608 15,876,555

12 13

6,633,385 311,942

7,540,776 260,650

6,620,317 311,942

7,545,876 260,650

6,945,327

7,801,426

6,932,259

7,806,526

13

35,415 35,415 6,980,742 8,310,393

28,216 28,216 7,829,642 8,204,704

35,415 35,415 6,967,674 8,112,811

28,216 28,216 7,834,742 8,041,813

15

309,820 8,000,573 8,310,393

259,036 7,945,668 8,204,704

309,820 7,802,991 8,112,811

259,036 7,782,777 8,041,813

TOTAL CURRENT LIABILITIES

2013 $

NON-CURRENT LIABILITIES Employee provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Reserves Retained earnings TOTAL EQUITY

13

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2014

Retained Earnings $

Reserves $

Total $

Balance at 1 July 2012 Surplus for the year Other comprehensive income Total comprehensive income for the year Balance at 30 June 2013

7,498,650 447,018 447,018 7,945,668

162,290 96,746 96,746 259,036

7,660,940 447,018 96,746 543,764 8,204,704

Balance at 1 July 2013 Surplus for the year Other comprehensive income Total comprehensive income for the year Balance at 30 June 2014

7,945,668 54,903 54,903 8,000,573

259,036 50,784 50,784 309,820

8,204,704 54,903 50,784 105,687 8,310,393

Economic Entity

Retained Earnings $

Reserves $

Total $

Balance at 1 July 2012 Surplus for the year Other comprehensive income

7,434,835 347,942 -

162,290 96,746

7,597,125 347,942 96,746

Total comprehensive income for the year Balance at 30 June 2013

347,942 7,782,777

96,746 259,036

444,688 8,041,813

Balance at 1 July 2013 Surplus for the year Other comprehensive income Total comprehensive income for the year Balance at 30 June 2014

7,782,777 20,214 20,214 7,802,991

259,036 50,784 50,784 309,820

8,041,813 20,214 50,784 70,998 8,112,811

Parent Entity

14

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2014 Economic Entity Note CASH FLOW FROM OPERATING ACTIVITIES Receipts from subscriptions Meetings, functions and events Receipts from other sources Payments to suppliers and employees Interest received Income tax paid Net cash provided by/(used in) operating activities

18(b)

CASH FLOW FROM INVESTING ACTIVITIES Proceeds from sale of investments Acquisition of investments Proceeds from sale of plant and equipment Purchase of plant and equipment Net cash used in investing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of financial year Cash and cash equivalents at end of financial year

7& 18(a)

Parent Entity 2014 $

2014 $

2013 $

1,836,495 524,291 1,228,547 (4,154,127) 98,173 -

2,272,770 781,424 1,030,068 (3,516,000) 121,498 -

1,836,495 527,564 1,183,997 (4,166,873) 95,149 -

2,272,770 769,424 975,966 (3,527,965) 119,296 -

(466,621)

689,760

(523,668)

609,491

(110,736) (110,736)

(62,081) (62,081)

(110,736) (110,736)

(62,081) (62,081)

(577,355)

627,679

(634,404)

547,410

9,214,707

8,587,028

9,064,527

8,517,117

8,637,352

9,214,707

8,430,123

9,064,527

15

2013 $

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 The financial statements cover Australian Dental Association Victorian Branch Incorporated (‘ADAVB’) as an individual entity and ADAVB and its controlled entity as an economic entity. ADAVB is an incorporated association in Victoria, incorporated under the Associations Incorporation Reform Act 2012 (Victoria).

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) of the Australian Accounting Standards Board and the Associations Incorporation Reform Act 2012 (Victoria).

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 the financial statements are presented below and have been consistently applied unless otherwise stated.

The financial statements have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

All amounts are presented in Australian dollars, unless otherwise noted.

Accounting Policies (a)

Principles of Consolidation A controlled entity is any entity ADAVB has the power to control the financial and operating policies of an entity so as to obtain benefits from its activities.

Details of controlled entity are contained in Note 10 to the financial statements. The controlled entity has a June financial year end.

(b)

Income Tax The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax expense (income).

Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable income tax rates enacted, or substantially enacted, as at the end of the reporting period.

Current tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.

Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as unused tax losses.

Current and deferred income tax expense (income) is charged or credited outside profit or loss when the tax relates to items that are recognised outside profit or loss.

Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at the end of the reporting period. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability.

16

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (b)

Income Tax (Continued) Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.

Where temporary differences exist in relation to investments in subsidiaries, branches, associates and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.

Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities, where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

(c)

Inventories Inventories are measured at the lower of cost and net realisable value.

(d)

Property, Plant and Equipment Each class of property plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses.

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 that will be received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

The cost of plant and equipment constructed within the economic entity includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the economic entity and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred.

Depreciation The depreciable amount of all fixed assets, including buildings are depreciated on a straight-line basis over the asset’s useful life commencing from the time the asset is held ready for use.

The depreciation rates used for each class of depreciable assets are: Class of fixed asset Freehold Buildings Plant and equipment Reading Room Journals

Depreciation rates 2.50% 4% to 40% 17%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the statement of comprehensive income. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.

17

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (e)

Financial Instruments Initial Recognition and Measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions of the instrument. For financial assets, this is equivalent to the date that the economic entity commits itself to either purchase or sell the asset (i.e. trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified ‘at fair value through profit or loss’ in which case transaction costs are expensed to profit or loss immediately.

Classification and Subsequent Measurement Financial instruments are subsequently measured either at fair value, amortised cost using the effective interest rate method or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.

Amortised cost is calculated as: (i) the amount at which the financial asset or financial liability is measured at initial recognition; (ii) less principal repayments; (iii) plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and the maturity amount calculated using the effective interest method; and (iv) less any reduction for impairment.

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss.

The economic entity does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the requirements of Accounting Standards specifically applicable to financial instruments. i.

Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost

ii.

Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either not capable of being classified into other categories of financial assets due to their nature or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.

Fair value Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.

Impairment At each reporting date, the economic entity assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment loss has arisen.

Impairment losses are recognised in the statement of comprehensive income.

18

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (f)

Impairment of Assets At each reporting date, the association reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value-in-use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the income statement.

Where it is not possible to estimate the recoverable amount of an individual asset, the association estimates the recoverable amount of the cash-generating unit to which the asset belongs.

(g)

Leases Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership that are transferred to the economic entity are classified as finance leases.

Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that the economic entity will obtain ownership of the asset or over the term of the lease.

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred. Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term.

(h)

Employee Benefits Provision is made for employee entitlement benefits accumulated as a result of employees rendering services up to the reporting date. These benefits include wages and salaries, annual and long service leave. Liabilities arising in respect of wages, salaries, annual leave and any other employee entitlements expected to be settled within twelve months of the reporting date are measured at their nominal amounts.

Employee entitlement expenses and revenues arising in respect of the following categories: Wages and salaries Non-monetary benefits Annual leave Long service leave.

Other types of employee entitlements are charged against the surplus on a net basis in their respective categories.

(i)

Cash and Cash Equivalents Cash and short-term deposits in the balance sheet comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less. For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

19

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (j)

Revenue Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed.

Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods and the cessation of all involvement in those goods.

Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets is the rate inherent in the instrument. Dividend revenue is recognised when the right to receive a dividend has been established.

Revenue from the provision of membership subscriptions is recognised in the membership year to which it relates but on a receipts basis.

All revenue is stated net of the amount of goods and services tax (GST).

(k)

Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

(l)

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

(m)

Critical accounting estimates and judgments The Council evaluates estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the economic entity.

Key estimates — Impairment The economic entity assesses impairment at each reporting date by evaluating conditions specific to the economic entity that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. No impairment has been recognised in respect of the year ended 30 June 2014.

(n)

Adoption of New and Revised Accounting Standards During the current year, the economic entity has adopted all of the new and revised Australian Accounting Standards and Interpretations applicable to its operations which became mandatory.

The adoption of these Standards has not had a significant impact on the financial statements of the economic entity.

20

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

New Accounting Standards for Application in Future Periods The following new and revised Standards and Interpretations have been adopted in the current year and have affected the amounts reported in these financial statements.

Standards affecting presentation and disclosure AASB CF 2013-1 ‘Amendments to the Australian Conceptual Framework’ and AASB2013-9 ‘Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments’ (Part A Conceptual Framework)

This amendment has incorporated IASB’s Chapters 1 and 3 Conceptual Framework for Financial Reporting as an Appendix to the Australian Framework for the Preparation and Presentation of Financial Statements.

The amendment also included not-for-profit specific paragraphs to help clarify the concepts from the perspective of not-for-profit entities in the private and public sectors.

As a result the Australian Conceptual Framework now supersedes the objective and the qualitative characteristics of financial statements, as well as the guidance previously available in Statement of Accounting Concepts SAC 2 ‘Objective of General Purpose Financial Reporting’. The adoption of this amending standard does not have any material impact on the consolidated financial statements.

Standards and Interpretations in issue not yet adopted At the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue but not yet effective.

Standard/Interpretation

AASB 9: Financial Instruments relevant amending standards1

Effective for annual reporting periods beginning on or after and

Expected to be initially applied in the financial year ending

the 1 January 2017

30 June 2018

AASB 1031 ‘Materiality (2013)

1 January 2014

30 June 2015

AASB 2012-13 ‘Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities’

1 January 2014

30 June 2015

AASB 2013-3 ‘Amendments to AASB135 – Recoverable Amount Disclosure for NonFinancial Assets’

1 January 2014

30 June 2015

The reported results and position of the company will not change on adoption of these pronouncements as they do not result in any changes to the company’s accounting policies. The company does not intend to adopt any of these pronouncements before their effective dates.

21

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 Economic Entity 2014 $ NOTE 2: REVENUE AND OTHER INCOME Revenue - Subscriptions - Meetings, functions and events - Commission received and administration fees - Committee and administration fees - Other income

NOTE 3: SURPLUS/(DEFICIT) FOR THE YEAR (a) Expenses: Employee benefits

2013 $

Parent Entity 2014 2013 $ $

2,237,865 435,014 702,791 25,000 480,892 3,881,562

2,169,779 935,847 671,670 21,250 457,626 4,256,172

2,237,865 435,014 702,791 25,000 440,595 3,841,265

2,169,779 935,847 671,670 21,250 392,130 4,190,676

2,120,526

1,996,544

2,120,526

1,996,544

157,216 83,230 22,618 263,064

157,217 73,709 23,954 254,880

157,216 83,230 22,618 263,064

157,217 73,709 23,954 254,880

12,744

12,744

12,744

12,744

Net loss/(gain) on disposal of plant & equipment Depreciation: - Freehold Buildings - Plant and equipment - Reading Room Journals

Rental expense on operating leases

NOTE 4: INCOME TAX EXPENSE (a) The components of the tax expense comprise: Current tax Deferred tax

(73,234) 73,234

22

(33,666) 33,666 -

(73,234) 73,234 -

(33,666) 33,666 -

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

Note

Economic Entity 2014 $

Parent Entity 2014 $

2013 $

2013 $

NOTE 4: INCOME TAX EXPENSE (b) The prima facie tax on surplus before tax is reconciled to the income tax expense as follows: Prima facie income tax payable on surplus before tax at % (2013: 30 %) Add/(Less): Tax effect of: - Non-assessable income - Non-deductible expenses - Unused tax losses not recognised Income tax expense recognised in profit or loss

16,471

134,106

6,064

104,383

(907,925) 818,220 73,234

(1,064,624) 896,852 33,666

(895,000) 815,702 73,234

(1,026,976) 888,927 33,666

-

-

-

-

NOTE 5: KEY MANAGEMENT PERSONNEL REMUNERATION Short-Term Benefits $

Postemployment Benefits $

Long Service Leave $

Total $

2014 Total compensation

315,781

0

7,269

323,050

2013 Total compensation

311,028

0

20,363

331,391

Note NOTE 6: AUDITOR'S REMUNERATION Remuneration of the auditor of the economic entity for: - auditing or reviewing the financial report - taxation services

Economic Entity 2014 $

19,700 4,640 24,340

23

2013 $

19,700 4,500 24,200

Parent Entity 2014 $

18,000 4,640 22,640

2013 $

18,000 4,500 22,500

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

Economic Entity 2014 $ NOTE 7: CASH AND CASH EQUIVALENTS (Continued) Cash and Cash Equivalents Term Deposits

2013 $

Parent Entity 2014 $

2013 $

8,212,352 425,000 8,637,352

8,859,707 355,000 9,214,707

8,085,123 345,000 8,430,123

8,709,527 355,000 9,064,527

8,637,352

9,214,707

8,430,123

9,064,527

The effective interest rate on short-term bank deposits was % (2013: nil %) Reconciliation of cash Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the statement of financial position as follows Cash and cash equivalents

NOTE 8: TRADE AND OTHER RECEIVABLES Current Other debtors Newsletter debtors Provision for impairment of receivables

GST input credit Receivable from controlled entity

35,482 16,161 51,643

121,834 9,331 131,165

31,742 16,161 47,903

100,602 9,331 109,933

52,082 103,725

52,584 183,749

52,030 1,047 100,980

50,177 16,641 176,751

(a)

(a) Provision for Impairment of Receivables Current trade receivables are non-interest bearing and are generally receivable within 30 days. No impairment was required at 30 June 2014 (2013: Nil).

(b) Receivable from controlled entity During the year the ADAVB provided seed funding to its controlled entity, eviDent Foundation Ltd for the purpose of providing finance to commence its operations. (c) Credit risk The economic entity and the parent entity have no significant concentration of credit risk with respect to any single counterparty or group of counterparties other than those receivables specifically provided for and mentioned within Note 8. The main source of credit risk to the economic entity and the parent entity is considered to relate to the class of assets described as ‘trade and other receivables’.

The following table details the both the economic entity’s and the parent entity’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 economic entity/parent entity and the customer or counterparty to the transaction. 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 economic entity/parent entity. The balances of receivables that remain within initial trade terms (as detailed in the table) are considered to be of high credit quality.

Collateral held as security No collateral is held as security for any of the trade and other receivable balances.

24

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 NOTE 8: TRADE AND OTHER RECEIVABLES (continued) Economic Entity

2014 Other debtors Newsletter debtors GST input credit Total

Gross Amount $

Past due but not impaired $

35,482 16,161 52,082 103,725

-

Past due but not impaired (days overdue) <30 $

31-60 $

61-90 $

>90 $

30,982 9,405

3,180

4,500 267

3,309

40,387

3,180

4,767

3,309

Within initial trade terms $

52,082 52,082

The economic entity does not hold any financial assets whose terms have been renegotiated, but which would otherwise be past due or impaired.

Parent Entity Gross Amount $

Past due but not impaired $

2014 Other debtors Controlled entity debtor Newsletter debtors GST input credit Total

31,742 1,047 16,161 52,030 100,980

2013 Other debtors Controlled entity debtor Newsletter debtors GST input credit Total

100,602 16,641 9,331 50,177 176,751

Past due but not impaired (days overdue)

Within initial trade terms $

<30 $

31-60 $

61-90 $

>90 $

-

27,242 1,047 9,405

3,180

4,500 267

3,309

37,694

3,180

4,767

3,309

52,030 52,030

-

10,500 121 4,068 14,689

-

585 585

1,062 4,734 -294 5,502

89,040 11,786 4,972 50,177 155,975

The parent entity does not hold any financial assets whose terms have been renegotiated, but which would otherwise be past due or impaired.

Note (d) Financial assets classified as loans and receivables Trade and other receivables: - Total Current - Total non-current

Economic Entity 2014 $

103,725 103,725

25

2013 $

184,364 184,364

Parent Entity 2014 $

100,980 100,980

2013 $

176,751 176,751

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 Economic Entity 2014 $ NOTE 9: FINANCIAL ASSETS Non-current Available-for-sale financial assets: - Shares in listed corporations – at market value - Other available-for-sale assets

716,204 34,122 750,326

2013 $

647,108 27,306 674,414

Parent Entity 2014 $

716,204 34,122 750,326

2013 $

647,108 27,306 674,414

NOTE 10: CONTROLLED ENTITIES Country of Incorporation

Parent Entity Australian Dental Association Victorian Branch Incorporated (‘ADAVB’)

Percentage Owned* 2014 2013 % %

Australia

-

-

Australia

100%

100 %

Subsidiaries of ADAVB eviDent Foundation Ltd * Percentage owned refers to voting power in proportion to membership

26

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 Economic Entity 2014 $ NOTE 11: PROPERTY, PLANT AND EQUIPMENT Owned Buildings At cost Less accumulated depreciation

Building Improvements At cost Less accumulated depreciation

Furniture and Equipment At cost Less accumulated depreciation

Reading Room At cost Less accumulated depreciation

Total Property, Plant and Equipment

2013 $

Parent Entity 2014 $

2013 $

5,090,400 (784,770) 4,305,630

5,090,400 (657,510) 4,432,890

5,090,400 (784,770) 4,305,630

5,090,400 (657,510) 4,432,890

1,198,257 (183,283) 1,014,974

1,198,257 (153,327) 1,044,930

1,198,257 (183,283) 1,014,974

1,198,257 (153,327) 1,044,930

937,200 (637,305) 299,895

849,685 (556,348) 293,337

937,200 (637,305) 299,895

849,685 (556,348) 293,337

520,318 (462,951 57,367

499,370 (440,333) 59,037

520,318 (462,951) 57,367

499,370 (440,333) 59,037

5,677,866

5,830,194

5,677,866

5,830,194

(a) Movements in Carrying Amounts Movement in the carrying amounts for each class of plant and equipment between the beginning and the end of the year. Furniture & fittings Furniture Building and Improve- Equipmen Reading Economic Entity & Parent Entity Buildings ments t Room Total $ $ $ $ $ Carrying amount at beginning of the year Additions Disposals Reclassification Disposals Depreciation expense Carrying amount at end of year

4,432,890 (127,260) 4,305,630

27

1,044,930 (29,956) 1,014,974

293,337 89,788 (2,273) 2273 (83,230) 299,895

59,037 20,948 (22,618) 57,367

5.830,194 110,736 (2,273) 2,273 (263,064) 5,677,866

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 Economic Entity 2014 $

Note

NOTE 12: TRADE AND OTHER PAYABLES Current Trade creditors Subscriptions in advance Other financial liabilities Fees received in advance Sundry creditors and accruals

(b) Financial liabilities at amortised cost classified as trade and other payables Trade and other payables: - Total current - Total non-current Less: Amounts received in advance Total financial liabilities as trade and other payables

19

2013 $

Parent Entity 2014 $

2013 $

187,480 1,605,424 4,328,431 303,992 208,058 6,633,385

228,498 2,006,794 4,830,452 214,715 260,317 7,540,776

185,647 1,605,424 4,328,431 295,265 205,550 6,620,317

245,598 2,006,794 4,830,452 202,715 260,317 7,545,877

6,633,385 6,633,385 (1,909,416)

7,540,776 7,540,776 (2,221,509)

6,620,317 6,620,317 (1,900,689)

7,545,877 7,545,877 (2,209,509)

4,723,969

5,319,267

4,719,628

5,336,367

NOTE 13: PROVISIONS Economic Entity 2014 $ Analysis of Employee Provisions Current Non-Current

311,942 35,415 347,357

2013 $

260,650 28,216 288,866

Parent Entity 2014 $ 311,942 35,415 347,357

2013 $ 260,650 28,216 288,866

A provision has been recognised for employee entitlements relating to annual leave and long service leave. In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based on historical data. The measurement and recognition criteria relating to employee benefits have been included in Note 1 to this report.

28

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 14: CAPITAL MANAGEMENT Management controls the capital of the Association to ensure that adequate cash flows are generated to fund its financial requirements returns from investments are maximised. The Finance and Audit Committee ensures that the overall risk management strategy is in line with this objective.

The Finance and Audit Committee operates under policies approved by Council.

The Association’s capital consists of financial liabilities, supported by financial assets.

Management effectively manages the Association’s capital by assessing the Association’s financial risks and responding to changes in these risks and in the market. These responses may include the consideration of debt levels.

There have been no changes to the strategy adopted by management to control the capital of the Association since the previous year. The strategy of the ADAVB is to have no borrowings.

Economic Entity Note

Parent Entity

2014 $

2013 $

2014 $

Total borrowings Trade and other payables Less cash and cash equivalents

6,980,742 (8,637,352)

7,829,642 (9,214,707)

6,967,674 (8,430,123)

2013 $ 7,834,743 (9,064,527)

Net debt Total equity Total capital

(1,656,610) 8,310,393 9,967,003

(1,385,065) 8,204,704 9,589,769

(1,462,449) 8,112,811 9,575,260

(1,229,784) 8,041,813 9,271,597

16.6%

14.4%

15.3%

13.3%

Gearing ratio

NOTE 15: RESERVES (a) Revaluation Reserve The Revaluation Reserve records revaluation increments and decrements (that do not represent impairment write-downs) that relate to financial assets that are classified as available-for-sale.

NOTE 16: LEASING COMMITMENTS (a) Operating lease commitments Non-cancellable operating leases contracted for but not capitalised in the financial statements: Payable - not later than one year - later than one year but not later than five years

14,018

14,018

14,018

14,018

14,513 28,531

28,532 42,550

14,513 28,531

28,532 42,550

Non-cancellable operating leases relate to office equipment with lease terms ranging from 1 to 5 years

29

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

Note

Economic Entity 2014 $

2013 $

Parent Entity 2014 $

2013 $

NOTE 17: RELATED PARTIES The Victorian Branch of the Australian Dental Association Incorporated (‘ADA’) collects subscriptions from members of which a proportion is remitted to the ADA. ADA Inc. Membership Subscription

2,214,564

2,064,624

2,214,564

2,064,624

The following ADAVB Councillors are also ADA Councillors: Dr. A J Barnes, A/Prof. M Hopcraft and A/Prof. N D Hewson.

NOTE 18: CASH FLOW INFORMATION (a) Reconciliation of cash Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the statement of financial position as follows Cash and cash equivalents

(b) Reconciliation of cash flow from operations with surplus for the year Surplus for the year Non-cash flows in income Depreciation (Gain)/Loss on disposal of plant and equipment Gain on disposal of investments Changes in assets and liabilities: Decrease in trade receivables (Increase)/Decrease in prepayments Decrease in inventories (Decrease)/increase in trade payables Increase in other financial liabilities Increase/(Decrease) in provisions Net cash from operating activities

8,637,352

9,214,707

8,430,123

9,064,527

54,903 (25,128) 263,064

447,018 (25,386) 254,880

20,214 (25,128) 263,064

347,942 (25,386) 254,880

-

-

-

-

80,024 9,416 (405,370) (502,021) 58,491 (466,621)

(64,068) 40,294 (31,495) 53,113 15,404 689,760

75,771 9,479 (423,538) (502,021) 58,491 (523,668)

(52,674) 40,909 (24,697) 53,113 15,404 609,491

30

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 19: FINANCIAL RISK MANAGEMENT The financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payable, loans to and from subsidiaries, bills and leases.

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: Economic Entity 2014 $

Note

Financial Assets Cash and cash equivalents Loans and receivables Available-for-sale financial assets: - Shares in listed corporations – at market value - Other available-for-sale assets Financial liabilities Financial liabilities at amortised cost: - Trade and other payables - Other financial liabilities

7 8 9

12 12

2013 $

Parent Entity 2014 $

2013 $

8,637,352 103,725

9,214,707 183,749

8,430,123 100,980

9,064,527 176,751

716,204 34,122 9,491,403

647,108 27,306 10,072,870

716,204 34,122 9,281,429

647,108 27,306 9,915,692

395,538 4,328,431 4,723,969

488,815 4,830,452 5,319,267

391,197 4,328,431 4,719,628

505,915 4,830,452 5,336,367

Financial Risk Management Policies The Chairman of the Finance and Audit Committee is responsible for, among other issues, monitoring and managing financial risk exposures of the Association. He monitors the Association’s transactions and reviews the effectiveness of controls relating to credit risk and financial risk. The Finance and Audit Committee meets 4 times per year and the decisions made are minuted.

The Chairman of the Finance and Audit Committee’s management strategy seeks to ensure that the Association meets its financial targets, while minimising potential adverse effects of cash flow shortfalls.

Specific Financial Risk Exposures and Management The main risks the economic entity is exposed to through its financial instruments are interest rate risk, liquidity risk and credit risk. (a) Interest rate risk As the economic entity and the parent entity have cash investments at reporting date and are likely to continue to invest cash, any increase in prevailing interest rates would have a positive impact on the economic entity’s and the parent entity’s earnings.

Any decrease in interest rates, while reducing the economic entity’s and the parent entity’s earnings, is unlikely to have a material negative impact on earnings or the economic entity’s and the parent entity’s ability to achieve its strategic and operational objectives.

31

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 19: FINANCIAL RISK MANAGEMENT (Continued)

b)

Liquidity risk Liquidity risk arises from the possibility that the economic entity and the parent entity might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. The economic entity and the parent entity manages this risk through the following mechanisms: preparing forward-looking cash flow analyses in relation to its operational, investing and financing activities; monitoring undrawn credit facilities; obtaining funding from a variety of sources; maintaining a reputable credit profile; managing credit risk related to financial assets; only investing surplus cash with major financial institutions; and comparing the maturity profile of financial liabilities with the realisation profile of financial assets.

Financial liability and financial asset maturity analysis (economic entity) Within 1 Year 2014 2013

1 to 5 Years 2014 2013

Over 5 Years 2014 2013

Total 2014

2013

$

$

$

$

$

$

$

$

Trade and other payables (excluding est. annual leave) Other financial liabilities

395,538 4,328,431

488,815 4,830,452

-

-

-

-

395,538 4,328,431

488,815 4,830,452

Total contractual outflows

4,723,969

5,319,267

-

-

-

-

4,723,969

5,319,267

-

-

-

-

-

-

-

-

Total expected outflows

4,723,969

5,319,267

-

-

-

-

4,723,969

5,319,267

Financial assets â&#x20AC;&#x201D; cash flows realisable Cash and cash equivalents Trade, term and loan receivables Other financial assets

8,637,352

9,214,707

-

-

-

-

8,637,352

9,214,707

103,725 750,326

183,749 674,414

-

-

-

-

103,725 750,326

183,749 674,414

Total anticipated inflows

9,491,403

10,072,870

-

-

-

-

9,491,403

10,072,870

Net (outflow)/inflow on financial instruments

4,767,434

4,753,603

-

-

-

-

4,767,434

4,753,603

Financial liabilities due for payment

Less bank overdrafts

32

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 19: FINANCIAL RISK MANAGEMENT (Continued)

Financial liability and financial asset maturity analysis (parent entity) Within 1 Year 2014 2013 $ $

1 to 5 Years 2014 2013 $ $

Over 5 Years 2014 2013 $ $

Total 2014 $

2013 $

Financial liabilities due for payment Trade and other payables (excluding est. annual leave) Other financial liabilities

391,197 4,328,431

505,915 4,830,452

-

-

-

-

391,197 4,328,431

505,915 4,830,452

Total contractual outflows

4,719,628

5,336,367

-

-

-

-

4,719,628

5,336,367

-

-

-

-

-

-

-

-

Total expected outflows

4,719,628

5,336,367

-

-

-

-

4,719,628

5,336,367

Financial assets â&#x20AC;&#x201D; cash flows realisable Cash and cash equivalents Trade, term and loan receivables Other financial assets

8,430,123

9,064,527

-

-

-

-

8,430,123

9,064,527

100,980 750,326

176,751 674,414

-

-

-

-

100,980 750,326

176,751 674,414

Total anticipated inflows

9,281,429

9,915,692

-

-

-

-

9,281,429

9,915,692

Net (outflow)/inflow on financial instruments

4,561,801

4,579,325

-

-

-

-

4,561,801

4,579,325

Less bank overdrafts

(c) Credit risk Credit Risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the economic entity and the parent entity. The economic entity and the parent entity only trade with recognised and credit worthy third parties. The maximum exposure to credit risk at balance date to recognised financial assets is the carrying amount, net of any provisions for impairment of these assets, as disclosed in the Statement of Financial Position and notes to the financial statements. (d) Price risk The carrying amount of financial assets and financial liabilities recorded in the financial statements represents their respective net fair values determined in accordance with the accounting policies disclosed in Note 1 of the financial statements. The economic entity and the parent entity are not exposed to price risk on any of its cash at bank or short-term deposit amounts.

Net Fair Values Fair value estimation The fair values of financial assets and financial liabilities are presented in the following table and can be compared to their carrying values as presented in the statement of financial position. Fair values are those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an armâ&#x20AC;&#x2122;s length transaction.

Fair values derived may be based on information that is estimated or subject to judgment, where changes in assumptions may have a material impact on the amounts estimated. Areas of judgment and the assumptions have been detailed below. Where possible, valuation information used to calculate fair value is extracted from the market, with more reliable information available from markets that are actively traded. In this regard, fair values for listed securities are obtained from quoted market bid prices.

Where securities are unlisted and no market quotes are available, fair value is obtained using discounted cash flow analysis and other valuation techniques commonly used by market participants.

Differences between fair values and carrying values of financial instruments with fixed interest rates are due to the change in discount rates being applied by the market since their initial recognition by the economic entity and the parent entity. Most of these instruments which are carried at amortised cost (i.e. term receivables, loan liabilities) are to be held until maturity and therefore the net fair value figures calculated bear little relevance to the economic entity and the parent entity.

33

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 NOTE 19: FINANCIAL RISK MANAGEMENT (CONTINUED) Net Fair Values (continued) 2014

Economic Entity Financial assets Cash and cash equivalents Trade and other receivables Investments — available for sale Total financial assets

2013 Net Carrying Value $

Net Carrying Value $

Net Fair Value $

8,637,352 103,725 750,326 9,491,403

8,637,352 103,725 750,326 9,491,403

9,214,707 183,749 674,414 10,072,870

9,214,707 183,749 674,414 10,072,870

395,538 4,328,431 4,723,969

395,538 4,328,431 4,723,969

488,815 4,830,452 5,319,267

488,815 4,830,452 5,319,267

(i) (i) (ii), (iii)

8,430,123 100,980 750,326 9,281,429

8,430,123 100,980 750,326 9,281,429

9,064,527 176,751 674,414 9,915,692

9,064,527 176,751 674,414 9,915,692

(i) (iv)

391,197 4,328,431 4,719,628

391,197 4,328,431 4,719,628

505,915 4,830,452 5,336,367

505,915 4,830,452 5,336,367

Note

(i) (i) (ii)

Financial liabilities Trade and other payables Other financial liabilities Total financial liabilities

Net Fair Value $

Parent Entity Financial assets Cash and cash equivalents Trade and other receivables Investments — available for sale Total financial assets Financial liabilities Trade and other payables Other financial liabilities Total financial liabilities

Net Fair Values The fair values disclosed in the above table have been determined based on the following methodologies: (i)

Cash and cash equivalents, trade and other receivables and trade and other payables are short term instruments in nature whose carrying value is equivalent to fair value. Trade and other payables exclude amounts provided for relating to annual leave which is not considered a financial instrument.

(ii) For listed available-for-sale financial assets, closing quoted bid prices at reporting date are used. (iii) For unlisted available-for-sale financial assets, fair value has been derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data. These fair values have been determined based on valuations obtained from the association’s portfolio manager. (iv) Other financial liabilities comprise amounts collected on behalf of third parties through the member annual subscriptions and fair values are measured based on amortised cost.

34

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 NOTE 19: FINANCIAL RISK MANAGEMENT (CONTINUED) Financial Instruments measured at fair value

The financial instruments recognised at fair value in the statement of financial position have been analysed and classified using a fair view hierarchy reflecting the significance of the inputs used in making the measurements. The fair value hierarchy consists of the following levels: (i)

quoted prices in active markets for identical assets or liabilities (Level 1);

(ii) inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices ) (Level 2); and (iii) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).

Economic Entity and Parent Entity Financial assets Investments - available for sale

Level 1 $

Level 2 $

Level 3 $

30 June 2014 Total $

750,326 750,326

-

-

750,326 750,326

Sensitivity analysis The following table illustrates sensitivities to the economic entityâ&#x20AC;&#x2122;s and the parent entityâ&#x20AC;&#x2122;s exposures to changes in interest rates, exchange rates and commodity and equity prices. The table indicates the impact on how profit and equity values reported at reporting date would have been affected by changes in the relevant risk variable that management considers to be reasonably possible. These sensitivities assume that the movement in a particular variable is independent of other variables.

The economic entity has performed a sensitivity analysis relating to its exposure to interest rate risk.

Profit $

Equity $

2014 +/- 2% in interest rates +/- 10% in available for sale investments

8,500 75,033

8,500 75,033

2013 +/- 2% in interest rates +/- 10% in available for sale investments

7,100 67,441

7,100 67,441

Profit $

Equity $

2014 +/- 2 % in interest rates +/-10 % in available for sale investments

6,900 75,033

6,900 75,033

2013 +/- 2% in interest rates +/-10% in available for sale investments

7,100 67,441

7,100 67,441

The parent entity has performed a sensitivity analysis relating to its exposure to interest rate risk.

The above interest rate sensitivity analysis has been performed on the assumption that all other variables remain unchanged.

35

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 20: EVENTS AFTER THE REPORTING DATE No matters or circumstances have arisen since the end of the financial year which significantly affected or may affect the operations of the economic entity and the parent entity.

NOTE 21: CONTINGENT LIABILITIES At reporting date there are no contingent liabilities (2013: $nil)

NOTE 22: ASSOCIATION DETAILS The registered office and principal place of business of the association and its related entity is: Level 3, 10 Yarra Street South Yarra Victoria 3141

36

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

STATEMENT BY THE MEMBERS OF THE COUNCIL In the opinion of the Council the financial statements and notes, as set out on pages 3 to 29 of the long form, Annual Report: 1. Presents a true and fair view of the financial position of the Australian Dental Association Victorian Branch Incorporated and the economic entity as at 30 June 2014 and of their performance for the year ended on that date in accordance with Australian accounting Standards (Including Australian Accounting Interpretations) of the Australian Accounting Standards Board.

2. At the date of this statement, there are reasonable grounds to believe that the Australian Dental Association Victorian Branch Incorporated will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Council and is signed for and on behalf of the Council by:

STATEMENT BY PRINCIPAL ACCOUNTING OFFICER I, Garry Pearson, being the person in charge of the preparation of the accompanying financial statements of the Australian Dental Association Victorian Branch Incorporated, being the Statement of Profit or Loss and Other Comprehensive Income and Statement of Financial Position of the Australian Dental Association Victorian Branch Incorporated for the year ended 30 June 2014 state that to the best of my knowledge and belief the financial statements present a true and fair view of the financial position the Australian Dental Association Victorian Branch Incorporated and the economic entity as at 30 June 2014 and their results for the year ended 30 June 2014.

37

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

38

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

39

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

BRANCH AWARDS AS AT 2014

2001 2001 2002 2002 2003 2003 2003 2004 2006 2006 2007 2008 2008 2008 2009 2011 2011 2012 2013 2013 2013 2014 2014

HONORARY LIFE MEMBERS 1959 Professor W J Tuckfield 1959 Dr F A Aird 1959 W S Wilkinson 1959 Dr J M Lewis 1961 Dr R M Gillies 1961 Dr H R Cash 1962 Dr G Finlay MM 1968 Professor A B P Amies CMG 1969 Dr K T Adamson CMG 1975 Dr J M Wark CBE 1977 Dr D F Spring OBE 1979 Dr C R Newbury CBE 1980 Dr B G H Drysdale 1984 Dr E W Kings OBE 1984 Dr S G Kings AM 1989 Dr R G Hardham 1990 Dr S C Warneke AM 1991 Assoc. Professor J K Harcourt OAM 1992 Dr F T Widdop AM 1995 Dr B E Taylor 1998 Dr R K Newbury 1998 Dr L G Oâ&#x20AC;&#x2122;Brien AO 1999 Dr P R Finch 2000 Dr P W Field 2000 Dr D S Houghton 2001 Dr N D Hewson 2005 Dr J E Matthews 2010 Dr G D Condon

DENTISTRY ACHIEVEMENT AWARD 1998 1999 2002 2002 2002 2002 2002 2003 2003 2004 2004 2004 2004 2005 2005 2007 2008 2008 2008 2009 2009 2010 2010 2010 2011 2012 2012 2012 2013

AWARD FOR DISTINGUISHED SERVICE 1985 1986 1987 1988 1988 1988 1989 1989 1990 1990 1992 1994 1995 1998 1999 1999 1999 2000 2000 2000 2001

Dr D J Hurley Dr R W King AM Dr P M Johansen Dr J A Isaacs MBE Dr A J Burns Dr M B Burns OAM Mr I Crawford (ADIA Member) Mr G L Pearson (ADAVB CEO) Dr G Knight Dr J Locke Assoc. Professor G Quail Assoc. Professor A Heggie Dr A Parker OAM Mr D Wiesenfeld Dr D Curnow Emeritus Professor L Brearley Messer AM Dr S Cottrell Mr E Mourant E Crawford Prof E Reynolds Dr D Lawry Dr J Boucher Dr C Callahan

Mrs E K Valmont (ADAVB staff) Dr R I Gillies Mr S Jensen (ADIA Member) Professor E Storey ED Dr L R A Williams Dr P R Finch Dr M M Sullivan Dr W E Chalmers Dr V C Amerena PSM.RFD. Dr D C Loader Mrs E L Feiner (ADAVB staff) Dr R H Milner Dr A E Cattermole Mr P A Rashleigh (Defence Lawyer) Dr R M Cook AM Professor M J Tyas AM Assoc. Professor R K Hall OAM Dr G R Dickinson Mr S Hutton, OAM (Dental Technician) Mr R D Story AM RFD Dr D A Behrend

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Dr J A M Robertson Dr B Feiglin Dr G Dickinson Assoc. Prof. B Levant Dr C R Newbury CBE Dr G R Oakley AM Prof. E Storey ED Dr B G H Drysdale Dr S C Warneke AM Dr A Lawrence Dr P Zimet Dr J Rattray Dr D Highfield Dr P Dalgliesh Dr P Wong Dr G Nervo Dr N Hewson Dr S Koshy Dr A M J Roseman Mr W J Besly Dr D J Whelan Dr G Bowell Dr D Goldsmith Dr S Orme Dr G Fowler Dr R Goldberg Dr S Tan Dr A Dickinson Dr D Bailey

AUSTRALIAN DENTAL ASSOCIATION VICTORIAN BRANCH INCORPORATED AND CONTROLLED ENTITIES

2013 2013 2014 2014 2014

PROFESSIONAL SERVICES

Dr R Bastiaan AM, RFD Prof M Morgan Dr N Cochrane Dr T Collett Dr B Creighton

BRANCH DETAILS – STAFF Mr G Pearson Dr E Agnew Mr G Aldous Mrs Y Bachtiar Dr S Brennan Ms C Burrowes Ms T Davine Dr D Evans

Ms S Georgiades Ms S Harvie Ms K Hore Ms K Jameson

Ms C Kaur Ms A Lane Ms S Luu Ms N Mai Ms S McMillan Dr A Monteith Dr J O’Connor Ms M Omizzolo Dr R Paluch

Ms R Papatheodorou Ms M Quinn Dr A Robertson

Mr J Stephens Dr F T Widdop AM Ms C Workman

Chief Executive Officer Community Relations Manager / Professional Consultant Communications Manager (Print) Receptionist Community Relations Officer / Professional Consultant Executive Assistant Practice+ Consultant Community Relations Officer / Professional Consultant (Locum) Administrative Officer Communications Manager (Digital) Knowledge Management Officer Senior Policy and Research Officer (Resigned September 2013) CPD and Training Manager Practice+ Coordinator CPD and Training Co-ordinator (Resigned May 2014) CPD and Training Co-ordinator Practice+ Consultant Community Relations Officer / Professional Consultant Policy and Research Officer Community Relations Assistant Community Relations Officer / Professional Consultant (Locum) Administrative Officer Operations Manager / eviDent Foundation Executive Officer Community Relations Officer / Professional Consultant (Locum) Branch Accountant Community Relations Officer / Professional Consultant Membership Officer

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Auditors

Advantage Advisors

Solicitors/Lawyers

Health Legal K & L Gates Meridian Lawyers