ASIAL Annual Report 2018 by ASIAL

2018

Annual & Financial Report

The Australian Security Industry Association Limited (ASIAL) is the peak industry body that represents the security industry in Australia. ASIAL provides support to members who deliver quality services to their customers.

Vision We are the leading security association where membership is a mark of distinction and is valued by the members, public and government.

Mission To support our members, promote standards and safeguard public interests. www.asial.com.au

2018 Annual & Financial Report President’s Report

Directors’ Operating Report

Secretary’s Report

Directors’ Declaration

Operating Report

Auditor’s Independence Declaration

Director Profiles

Independent Audit Report

Statement of Comprehensive Income

Statement of Financial Position

Statement of Changes In Equity

Statement of Cash Flows

Notes To The Financial Statements

Board of Directors President

Kevin McDonald

Vice President

John Gellel

Directors

Rod Anderson, Brian Foster, John Hadden, Rachaell Saunders, Michael Smith, Robin Stenzel (part)

National Reference Group

Chris Delaney, John Fleming, Janine Hill, Peter Johnson, Chevelle Millhouse, Neil McLean, Darryl Milling, Suzette Po-Williams and Robert Seth (in addition to the Board)

Auditor

Foster Raffan

Solicitor/Attorney

Goldrick Farrell Mullan

Monitoring Centre Certification Inspection

Robin Burrows, ATSC

Industrial Relations

Chris Delaney, Chris Delaney & Associates

Compliance & Regulatory Affairs

Peter Johnson, Corporate Application

Special Consultant

Damien Smith, Enterprise Care Pty Ltd

Secretariat Chief Executive Officer and Secretary

Bryan de Caires

General Manager

John Fleming

Manager, Membership

Sylva Pechackova

Finance and Administration Manager

Sunny Moon

Marketing and Communications Officer

Anna Ho

Marketing & Communications Coordinator

Emily Caws

Member Liaison Officer

Tania Laird

Senior Membership Officer

Alexandra Firth

IT Systems Support Officer

Nadine Keady

Accounts Assistant

Wasundara Ranatunga

Membership Coordinator

Leonie Fraser

Membership and Cabling Coordinator

Jane Capizzi

Membership Coordinator

Keiryn Bensilum

President’s Report I am pleased to introduce the 2018 Annual and Financial Report for the Australian Security Industry Association Limited. The past year has been another busy and productive one for the Association on a number of fronts. Thanks to our committed team and strong member base, the Association continues to go from strength to strength. Among some of the highlights over the past year include:

Fair Work Ombudsman Inquiry into the procurement of security services by local government The release by FWO of the findings into the procurement of security services by local government, highlighted the opportunity for councils to work with the regulator to improve supply chain governance efforts. ASIAL originally approached the FWO with concerns that the procurement practices of Local Government were potentially in breach of s550 of the Fair Work Act by forcing prices to unsustainably low levels, resulting in legitimate employers missing out on Local Government contracts and employees being underpaid The Inquiry examined the labour procurement arrangements relating to the engagement of security services by 23 local councils across all states and the Northern Territory. The report highlighted the important role that organisations at the top of labour supply chains can play in influencing workplace practices and promoting compliance with workplace laws. FWO have recommended that local councils amend their security services tender documents to reflect best practice on contracting labour and ensure that the amounts paid in their contracts are sufficient for contractors and subcontractors to cover employee entitlements. Whilst welcoming the release of the report, ASIAL was disappointed that it did not take a more holistic approach to Local Government procurement practices which

have forced prices down to unsustainably low levels. To fully address the issues raised in the report, all levels of the supply chain need to take responsibility for acting in accordance with workplace laws. The Association will continue to advocate for improved procurement practices across all levels of government.

2018 Gold Coast Commonwealth Games

level training requirement at a Certificate II rather Certificate III level. The Association has been invited to address meetings of the Security Industry Regulators Forum during the course of the year and the Australia New Zealand Counter Terrorism Committee crowded places review.

Promoting industry capability

Working with the Gold Coast Games Organising Committee, the Association played an important role in the development of the Fair Work approved Multi Employer Enterprise Bargaining Agreement and in delivering an eLearning platform for the 4,200 Games Security Officers. Given the size and scope of the Games, it was inevitable that there would be operational challenges. To their credit the prime security providers were able to rise to the challenge to overcome these, meaning the contingency plans GOLDOC had in place were not required to be activated. Overall the Games were a great success, both from a sporting and security perspective and all those who worked at the Games should give themselves a pat on the back.

Advocacy The Association continues to be a strong industry advocate on a number of fronts, from the proposed introduction of labour hire licensing schemes in Queensland, Victoria and South Australia, to the counter terrorism role of security personnel in crowded places. The security industry was exempted from the labour hire licensing legislation in South Australia. In Queensland the Association continues to engage with the Office of Industrial Relations to amend the definition of labour hire as it relates to security. ASIAL’s representative played an important role in progressing the review and development of the Security Operations training package. The result being a training package that will better meet the needs of the industry and which maintains the entry

Through its involvement in the organisation of the industry’s premier event (Security 2017 Exhibition & Conference) and annual Awards for Excellence, ASIAL continues to provide opportunities for the industry to showcase innovation and excellence. The Association is also committed to investing in research initiatives that explore industry challenges and capabilities. The most recent of which being the support provided to the Australian Strategic Policy Institute report on the security Industry’s capability relating to Counter Terrorism.

Code enforcement The Association is committed to enforcing its Code of Professional Conduct. During the course of the year 14 members were expelled for non-compliance related issues, compared with 27 in 2017. The expulsion reflects the Association’s commitment to enforcing its Code of Conduct. In conclusion, I would like to acknowledge my appreciation to my fellow board directors, Convenors, special interest working groups, and the ASIAL team led by Bryan de Caires for all their hard work over the past year. With the Association celebrating its 50th anniversary in 2019, we are well placed to represent the needs of our industry for another 50 years.

Kevin McDonald President

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

Secretary’s Report The Association enjoyed a successful year generating a surplus of $51, 421 for the year. When other comprehensive income is included (namely the 3- yearly revaluation of Security Industry House which saw an increase of $1,050,000) the total comprehensive income for the year was $1, 101, 421. Membership subscription income continues to underpin the Association’s activities. A small net growth in member numbers was achieved for the year. The Association’s annual conference and other event activities performed well during the year, as did the ASIAL Cabling Registry. Income generated from strategic partnerships remained steady. The appointment of the ASIAL eLearning Platform by the Gold Coast Commonwealth Games Organising Committee to deliver training for the 4,200 Games Security Officers also contributed to the positive financial result. Through careful cost management expenses for the year were down against budget, the most significant contributor to this was lower than budgeted staffing costs. Revenue generated through the member marketing levy has been carried over to the 2018-2019 financial year to enable a more extensive consumer awareness campaign to be conducted, commencing in August 2018. Security Industry House has proven to be a sound investment for the Association. The construction of the Crows Nest station as part of the Sydney Metro project commenced in 2018 represents a significant infrastructure project in the area. Given its proximity to the

Sydney Metro Crows Nest station project and other proposed developments in the area, it is anticipated that this will have a positive impact on the valuation of Security Industry House. Accumulated reserves rose to $4, 614, 267, enabling the Association to continue to develop and deliver a growing range of services to members and provide stronger advocacy for the industry. The ongoing success of the Association is testimony to the tremendous support and commitment provided by the ASIAL Board of Directors, Convenors, members and the ASIAL Secretariat staff.

Bryan de Caires Chief Executive Officer and Secretary

5-Year Performance Summary (2014-2018) $5m Equity (includes 2018 revaluation of Security Industry House + $1.05 million)

$4.5m $4.0m $3.5m $3.0m $2.5m

“

The ongoing success of the Association is testimony to the tremendous support and commitment provided by the ASIAL Board of Directors, Convenors, members and the Secretariat staff.

”

Total income

$2.0m

Total Expenses

$1.5m

Profit/Loss Equity

$1.0m $0.5m $0.0m

2014

2015

2016

2017

2018

OPERATING REPORT

Membership and Communications The Associationâ&#x20AC;&#x2122;s primary focus is on delivering a high level of customer service to its members. The Association provides practical advice and support to members on a broad range of issues, from compliance and regulatory issues through to technical and industrial relations. The Association continues to be a vocal advocate for the industry through engagement with state and territory licensing regulators, the Fair Work Ombudsman, law enforcement agencies, Standards and through submissions on a range of issues. Membership overall grew from 2,623 on 30 June 2017 to 2,639 on 30 June 2018. Membership growth in the ACT, Victoria and WA was particularly strong. During in 2017/2018 the Association welcomed 314 new members across Australia, whilst 298 members resigned or were expelled from the Association.

Annual Exhibition & Conference The Security 2017 Exhibition & Conference which returned to Sydney in July 2017 proved to be a tremendous success. The event attracted over 6,500 attendees, including exhibitors, exhibitions, speakers and media. The conference was another sell out event featuring keynote speakers, former Commander of Counter Terrorism and Special Tactics, Assistant Commissioner Mark Murdoch, Futurist Shara Evans from Market Clarity, Head of Security for the Gold Coast 2018 Commonwealth Games Cooperation (GOLDOC) Danny Baade and Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell.

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

Awards for Excellence The 22 Annual Awards for Excellence and 3rd Annual Outstanding Security Performance Awards attracted a record number of nominations and a sold out dinner. nd

50 million Potential Audience reached by 294 media mentions

ASIAL Industry Breakfast Briefings Industry Breakfast Briefing sessions were held in Adelaide, Brisbane, Canberra, Hobart, Melbourne, Perth and Sydney over the course of the year, with a strong attendance.

Continuing Professional Development The Association administers an increasing number of licence holders in Victoria who are required under the Private Security Act 2004, Section 26 (3) to accrue 12 Continuing Professional Development points over the course of each financial year.

ASIAL Individual Professional Recognition Program The Individual Professional Recognition program is gradually building, as security professionals looking to progress their careers have sought to attain the postnominal credential of either MASIAL, AFASIAL, FASIAL or FASIAL (Life).

Safe Workplace Management System

6500+

Attendees at The Security 2017 Exhibition & Conference

1180

members participating in the ASIAL corporate recognition program.

ASIAL eLearning Platform The platform provides access to more than 100 short courses on a broad range of topics. The ASIAL eLearning management system was selected by the Gold Coast Organising Committee to provide online learning to the more than 4,000 Commonwealth Games Security Personnel.

First Alert (eNewsletter) Distributed to members every two weeks, First Alert provides regular updates on topical industry news and developments.

ASIAL member recognition program The Association now has 1,180 members participating in the corporate recognition program. The program recognises 24 Platinum Members (25+ years), 331 Gold Members (16-24 years), 291 Silver Members (11-15 years) and 534 Bronze Members (6-10 years).

Security Insider magazine With a CAB audited circulation of 2,802 and additional digital circulation of more than 10,000, Security Insider magazine provides accurate and timely information to members. The magazine underwent a redesign with a new logo, layout, fonts and colour palettes to deliver a more inviting read.

The ASIAL Safe Workplace Management System provides a total WHS system, designed to comply with AS4801 and tailored to the Australian security industry. The system is available to members at a highly competitive rate.

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

OPERATING REPORT

Monitoring centre certification

Email communications

The Association’s highly respected monitoring centre certification has been in operation for almost 30 years. Over 30 monitoring centre operations are certified through ASIAL in accordance with AS2201.2.

Members are updated on important industry news, regulatory updates, member benefits and event invitations through email communications. In addition, ASIAL’s Registered Cablers receive a bi-monthly email newsletter.

Media relations

Social media

ASIAL’s media exposure increased by 119% over the year This included media mentions in The Daily Telegraph, Herald Sun, The Australian, numerous regional newspapers and trade publications. The total potential reach for the 294 media mentions was just over 50 million people. ASIAL’s CEO appeared on Channel Ten’s The Project TV program in February 2018. The Association also continues to work closely with trade publications such as Australian Govlink, Clubs, Build Australia and Pubs Manager and other security publications such as Asia Pacific, Australian Security Magazine and Security Solutions for the Australian Security Awards.

The Association’s social media channels provide an increasingly important means of engaging with members and industry professionals. ASIAL’s Twitter followers grew by 10% and LinkedIn by 40%. The Association’s social media reach is fast approaching the 10,000 followers mark.

Security Industry House Security Industry House (owned by ASIAL) is located within 50 metres of the new Crows Nest integrated station development which is part of the Sydney Metro project, Australia’s biggest urban rail project. The development along with other plans proposed by North Sydney Council in the Crows Nest area is anticipated to have a positive effect on the valuation of Security Industry House.

Website

The ASIAL website www.asial.com.au attracted 95,071 unique visitors during 2017-2018, of which 67.8% found the website organically rather than through paid advertising or searches. Among the key website statistics for the year included:

95,071

Unique visitors

426,707

3.10

Pages per session

Page views

2:48

137,848

Average session time

User sessions

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

Advertise with the peak body for security professionals in Australia *Security Jobs Board is FREE for ASIAL members who can post an unlimited number of job vacancies online. Nonmembers can advertise for a small subscription fee.

www.asial.com.au/jobs

SECURITY

POST A JOB

Find or Post job opportunities today.

J BS BOARD

Australian Security Industry Association Limited

ASIAL Security Jobs Board The ASIAL Jobs Board provides members with access to a free platform to advertise vacant positions.

Queensland audit and member compliance As an approved security industry association in Queensland, ASIAL has engaged the services of a chartered accounting firm to conduct compliance audits on behalf of its members. During the course of the financial year 191 members were issued with a compliance certificate, 3 resigned subsequent to audit notification, 9 surrendered their licence or let it lapse and 1 failed to sign the statutory declaration form. A total of 4 ASIAL members operating in Queensland were expelled due to non-compliance of the statutory audit requirement.

Cash in Transit Code of Practice During the year the Association released the Cash In Transit Code of Practice, a practical guide to assist members to meet their WHS responsibilities and importantly mitigate risks associated with the transportation and delivery of cash and/ or other valuables by use of armoured, semiarmoured or non-armoured vehicle(s).

Social media followers fast approaching

10k

Complaints and dispute resolution ASIAL continues to actively manage complaints and disputes in accordance with its Complaints & Dispute Resolution Policy and Procedures. The number of formal complaints decreased this year. In 2017/2018 there were 17 complaints registered with the Association, compared to 26 in 2016/2017. A possible explanation for this decrease is that member organisations are dealing with complaints directly, negating the need for a formal complaint being made to the Association. Of the 17 complaints, 12 related to the electronic sector, 2 to the manpower sector, 1 for incorrect payment of wages and super, 1 to an RTO not issuing a certificate after completion of a course and 1 alleged illegal clamping of a vehicle.

10%

Growth in Twitter followers

Several electronic complaints dealt with postinstall issues, the transferring of monitored lines between monitoring centres, namely difficulties experienced due to the failure in providing access codes to facilitate the transfer. They also related to equipment that was sold not being fit for purpose. The manpower sector complaints primarily related to threatening behaviour of the security guards.

119%

With the majority of complaints received, outcomes were achieved through mutual agreement between the parties. It is clear that with good business practices and good communication with clients many of these issues could have been avoided.

Increase in media exposure

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

OPERATING REPORT

Personnel The provision of guarding and associated personnel security services remained under pressure during the year with pricing, compliance, training and expectations being the main pressure points. Whether it is protecting crowded places, providing security at sporting events and concerts, hospitals, critical infrastructure, military bases, licensed premises, shopping centres, ports, airports, courts, cash management and transportation, installing alarms, access control and CCTV systems or physical security measures, the security industry performs a vital role in the Australian economy and is often the first responders to incidents.

“

The release of the 2017 Federal Government’s Strategy for Crowded Places from Terrorism, has provided an opportunity for ASIAL to meet with Government, Police and intelligence agencies to foster closer engagement with the security industry as a valued participant.

”

With a competitive pricing market influenced by variables such as organisation size, structure, compliance, staff quality and availability, the influence clients have on pricing continued to reduce profit margins and at times pressure some organisations to fail compliance requirements. A recent report (June 2018) from the Fair Work Ombudsman (FWO) following an inquiry into the procurement of security services by local governments, was critical of some security providers resulting in 26 formal cautions, 4 infringement notices, 15 compliance notices, 1 enforceable undertaking and 1 litigation. It was unfortunate that the FWO report failed to recognise ASIAL’s concerns in initiating the inquiry of targeting all aspects of the supply chain - from ‘price makers’ to the ‘price takers’ where tenders awarded on the lowest price is often confused as value for money. ASIAL continues to encourage FWO to take action against organisations whose procurement practices are driven by the lowest cost - often in breach of s550 of the Fair Work Act and encouraging non-compliant conduct from the security provider.

The Artibus Innovation review of the Certificate II and III in Security Operations is nearing completion. Fourteen (14) common units of competency for entry level licensing for an unarmed guard and crowd controller will form part of the review recommendation. If the recommendation is accepted and implemented by security regulators, it will form a common national platform for entry level security licensing. ASIAL has been an active participant in the review process and continues to encourage Governments, Regulators and Training Authorities to support appropriate and cost-effective entry level training and not to impose excessive training periods as a barrier for people wishing to enter the security industry. The release of the 2017 Federal Government’s Strategy for Crowded Places from Terrorism, has provided an opportunity for ASIAL to meet with Government, Police and intelligence agencies to foster closer engagement with the security industry as a valued participant. It has been recognised that private security providers and professionals play a central role in protecting crowded places and that there needs to be closer engagement with the industry.

By invitation, ASIAL now engages with Federal and State Government agencies to strengthen our industry recognition and participation in formal counter-terrorism strategies with regard to crowded places.

Mark Guiney, MD, Royal Eagle Security receives the platinum membership recognition certificate from ASIAL President, Kevin McDonald.

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

Regulatory Affairs ASIAL continues to actively engage with state and territory regulators on a broad range of issues. On invitation the Association’s CEO has addressed both meetings of the Security Industry Regulators Forum (a bi-annual Industry meeting of state and territory security industry regulators) held over the past year. The security industry is a user and in general a supporter of a regulated environment. However the faith in Regulators to appropriately regulate our industry continues to be challenged. The ‘internet of things’ (IOT), which in simple terms recognises the interconnection via the internet of computing devices embedded in everyday objects, enabling them to send and receive data, has enabled any person that can open a box and attach a ‘plug and play’ device onto a wall, to participate in our industry. The industry raised concern over the increase in sectors such as Information Technology where technicians actively install, service and operate security equipment as part of their business operation. Not only are these technicians operating without a security licence, they are not subject to probity checks which brings into question the underpinning regulatory premise of ‘probity for public safety.’ With the increased activity of the IOT, concern over cyber security and counter-terrorism surveillance and associated strategies, regulations are not being applied equally for the safety of the public.

information with regards to financial transactions. Although achieving some success over the years in reducing the reporting burden, ASIAL was pleased with the introduction of the Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2018 (No. 2) which removed the obligations for CIT providers to register as AUSTRAC reporting entities. CIT providers (solely providing cash carrying services) will no longer have obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. Advances in technology has encouraged the South Australian Government to introduce digital passes and licences via the mySA GOV app. This means that South Australians can carry selected government issued passes and licences, including security licences, on an Apple or Android smart phone or tablet device using the mySA GOV app. Although a sign of the times, legislative amendments will be required in some jurisdictions to enable a similar approach. This would require a significant review in NSW where a security licence is required to be worn when working.

Smoke alarm legislation has changed and been strengthened over recent years. ASIAL engaged with the Australian Fire and Emergency Services Council (AFAC) to publish a helpful document to summarise smoke alarm legislative changes and requirements. With the installation of hardwired interconnected smoke alarms being required in many jurisdictions, the ability for many security technicians to install compliant smoke alarms has been reduced. With the national review of security training requirements for licensing purposes, and the growing Federal government recognition of the central role the private security industry plays in protecting crowded places and critical infrastructure, talk once again returned to national licensing. ASIAL continues to raise national licensing as an industry concern. National security licensing revolves around jurisdictional sovereign rights with no jurisdiction willing to lose its rights over security licensing. ASIAL will continue to engage with Governments and Regulators to work towards the introduction of a uniform and consistent model that would reduce the regulatory and cost buden for security operators.

In support of CIT providers, ASIAL has actively engaged with AUSTRAC, the Australian Transaction Reports and Analysis Centre, in attempts to reduce the regulatory burden on security CIT providers where financial institutions and CIT providers duplicated reporting

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

OPERATING REPORT

Workplace Relations The security industry is highly competitive and heavily regulated. ASIAL provides information and advice to members seeking assistance to run the gauntlet of poor performing employees, regulators and red tape and make a modest profit. ASIAL’s Workplace Relations Advisor assists members with day to day issues as well as those affecting the industry as a whole. On an individual level members have sought and received information, advice, templates, tools and representation in all aspects of workplace relations including, employment contracts, Enterprise Bargaining Agreements, disciplinary and dismissal matters, retrenchment, award interpretation and wage schedules. On an industry level 2017/18 has seen a constant flow of State initiated regulation and legislation affecting almost all ASIAL members. ASIAL has made submissions and met with Government representatives to ensure that regulators understand the effects of their decisions on our industry. In many instances, we have recommended changes to proposed legislation.

4 yearly Modern Award Reviews The 4 yearly Modern Award Review is progressing slowly. Several Fair Work Commission conferences have taken place over (FWC) the year, most recently 22 June where the Plain English Language Draft was discussed and a number of variations resolved. Unresolved matters include the calculation of Casual overtime, payment of annual leave on termination of employment and Part Time employment all of which will be heard by a Full Bench of the FWC.

Labour Hire Licensing – Queensland, South Australia and Victoria The Queensland Government and South Australian governments have legislated for a labour hire licensing scheme to stop the exploitation and mistreatment of vulnerable workers and support legitimate operators by requiring that labour hire providers are licensed and that users of labour hire use only licensed providers. ASIAL submitted that security industry employers be exempted from having to register because of the already onerous requirements to qualify for a security business license. South Australia granted the exemption. Queensland has not. ASIAL remains concerned that the Queensland Labour Hire Licensing Division has misconstrued the relationship between the security provided and the client in particularly in relation to pubs, clubs and stadiums. It is clear to ASIAL that the concept of “direction and control” in these situations does not lie with the client but with the security provider.

Fair Work Ombudsmen Local Government Procurement Report Published

ASIAL will continue to represent the industry and attempt to reduce the significant cost burden and compliance requirements the legislation imposes on the industry. The Victorian parliament has passed similar legislation and ASIAL has been in discussion with government representatives in an effort to properly inform the debate. The Victorian Government will consider each situation on its individual merits.

Local Government Procurement Initiative The long-awaited report from the Fair Work Ombudsman has been published. It is clear that the initial objective of investigating the procurement practices of Local Government turned into an investigation of security providers. It is extremely disappointing that the report does not take action against the top of the supply chain for knowingly forcing prices down to unsustainable levels. ASIAL will continue to press the FWO to focus on the behavior of all levels Government procurement.

Portable Long Service Leave Proposal (PLSL) â&#x20AC;&#x201C; Victoria Legislation has now been passed for the introduction Portable Long Service Leave for security manpower employees in Victoria. The contribution level will be set by the scheme and is predicted to be 1.7% of ordinary time earnings.

Annual Wage Review In June 2018, the Fair Work Commission handed down its decision in the Annual Wage Review. The increase followed a strong campaign from unions and others having identified low wage growth over the last 4 years at least. From the first full pay period after 1 July 2018, employees paid minimum award rates covered by modern awards were entitled to a wage increase of 3.5% and a respective increase in most allowances.

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

11 11

OPERATING REPORT

Electronics ASIAL has continued to engage with government, industry and members in addressing a wide range of issues and providing advice. We continue to support members through our involvement on a number of influential committees. Standards ASIAL has participated in supporting standards development for the security industry and is currently a committee member for Australian Standards and the International Electrotechnical Commission (IEC).

National Broadband Network ASIAL continued to engage with NBN Co to provide information for members on the deployment of the National Broadband Network (nbn). The nbn working with approved service providers will replace the existing landline phone and internet services in Australia, this is scheduled to be finalised in 2020. It is vitally important that stakeholders in the migration of back to base security and medical alarms be informed about the nbn developments and communicate with their customers to offer solutions that maintain the security systems integrity. No matter which type of technology is used to deliver the nbn, it is crucial that home and office wiring has been well planned. ASIAL continues to provide information to members and advocate that security installation work must be carried out by a licenced security technician that holds an Australian Communications and Media Authority (ACMA) cabling registration card with the appropriate competencies.

National Alarm Response Protocol

Monitoring Centre Certification

ASIAL has continued to engage with the National Emergency Communications Working Group (which includes communications representatives from Police, Fire and Ambulance services across Australian and New Zealand) to progress development of a national alarm response guideline. A standardised national response will provide an opportunity for emergency service operators and the security industry to work together for the benefit of all stakeholders. We are pleased to advise that after five years of engagement, the National Emergency Communications Working Group has finalised a national guideline designed to align police classification, requirements and response to alarms and alarm activations. The guideline provides a framework for national consistency in the way in which policing jurisdictions and security companies define and respond to alarm activations.

The Association continues to operate the highly respected monitoring centre certification program in accordance with Australian Standard 2201.2. The ASIAL scheme seeks to provide customers with the reassurance that the standards applied at a monitoring centre are independently audited on a regular basis. All applications can now be managed online through ASIALâ&#x20AC;&#x2122;s website. Australian Standards has approved a case for a review of AS2201.2 Monitoring Centres. Updating Standards ensures the quality and consistency of products and services and gives businesses and consumers a greater piece of mind.

The Guideline comes into effect on 1 July 2018. From 1 July 2018, there will be a transitional period to enable Alarm Monitoring Providers to meet the Guidelines till 30 June 2019. This national guideline is a significant step forward for Police, Security Industry and the general public in addressing alarm activation practices and procedures.

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

ASIAL Cabling Registry Acting on behalf of the Australian Communications and Media Authority (ACMA) ASIAL continues to provide cablers with advice and support to comply with cabling registration requirements. ACMA is responsible for setting out the regulatory requirements for registration and installation practices of cablers.

ASIAL’s cabling registry has been kept busy responding to cablers who wish to update their competencies and questioning how they should go about gaining competencies to continue legally working in the industry. Registered Training Organisations have responded to the changes, offering courses to upgrade from Restricted to Open registration and also gain specialised cabling competencies, Fibre, Structured and Co-axial. These qualifications have been deemed essential for the development of a skilled labour force that can work on IP technologies and the National Broadband Network. During the 2017/2018 financial year cabling registrations grew by 202, up from 5843 in 2016/2017, to reach 6,045 active registrations at 30 June 2018. The majority of registrants (5,411) opted to gain ‘Open’ registration as opposed to the limited ‘Restricted’ cabling registration (621), with the remaining balance (13) being for ‘Lift’ work. ASIAL continues to engage with ACMA and other cabling registrars to promote ongoing compliance and training in this sector. Because of the significant changes in the operating environment for customer cabling the ACMA have being conducting Priority Compliance Audits on sites across Australia. The registered cablers website is growing in the number of views and continues to provide vital information to industry and consumers about what to do in preparing for the nbn. After extensive communication with ACMA and nbn both organisations are actively promoting the website as the place to go for unbiased information on the nbn and smart cabling. ASIAL partnered with the registered cabler committee to promote professional cabling practises at the Security 2017 Exhibition at the new International Convention Centre in Sydney and the Integrate show at the Melbourne Convention and Exhibition Centre.

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

ASIAL has partnered with the registered cabler committee to promote professional cabling practises

6,045 Total cablers registered with ASIAL

13 13

Directors/CEO Profiles President Kevin McDonald General Manager, Business Improvement, MSS Security Pty Ltd Kevin has more than 35 years of experience in the electronics and manpower sectors. A Director since 2001, Kevin is committed to the integrity, standards and improvement of the security industry.

Vice President John Gellel

Chief Executive Officer

General Manager, Kastle Systems

Bryan de Caires

John has more than 20 yearsâ&#x20AC;&#x2122; experience in the security industry. In 2016, John joined Kastle Systems as their General Manager. Prior to this, John spent 15 years with Honeywell Security and ADI Global Distribution. John has an MBA and an Advanced Diploma of Management.

Bryan has more than 25 years of senior management experience across a range of industry sectors. He joined the Association in 2000.

Chief Executive Officer and Secretary, ASIAL

Directors Rod Anderson

Brian Foster

Security and Training Consultant, Standsure Security Consulting

Consultant, E & C Security Systems Pty Ltd

Rod has more than 40 years of security experience, including a distinguished 20 year career in the Australian Regular Army. Rod has been a Director since 2010.

Brianâ&#x20AC;&#x2122;s career in the security industry spans over 40 years working as a senior manager and Director. He has over 15 years of cumulative service as a Director and Vice President of ASIAL.

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

John Hadden Managing Director, Top Tech Security Systems (Aust) Pty Ltd John brings to the Board over 35 years of experience working in the security industry.

Rachaell Saunders Chief Executive Officer, National Protective Services Rachaell has more than 30 years of experience in the security industry. She founded National Protective Services in 1988 and was appointed to the Board in 2015.

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

Michael Smith

Robin Stenzel

Managing Director, Prosegur

CEO, STE Advantage

Michael has 20 years of experience in the security industry in the cash management sector. His drive is to create a security industry that is highly respected. He has worked for both Australian and international companies, has a Bachelor of Commerce and is a CPA.

Robin has held Board roles with technology and investment companies and has over 20 years of experience with electronic control systems. *On 13 June 2018 tendered his resignation from the board.

Suzette Po-Williams Customer Service Manager Central Monitoring Services Suzette has more than 20 years experience in the security industry. She was appointed as a Director on 4 July 2018.

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

2018 ASIAL Financial Statements

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

FINANCIAL REPORT

FOR THE YEAR ENDED 30 JUNE 2018

Directors’ Operating Report Your directors submit this operating report for the year ended 30 June 2018. The names of the company’s directors in office during the financial year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated. A brief profile of each Director is set out on pages 14 and 15 of this Annual and Financial Report.

Measurement of the Association’s performance The Association measures performance through member acquisition and retention rates; growth in member subscription and non-subscription revenue; event attendance; media exposure and profile; and financial performance against budget. Corporate Structure

Directors Rod Anderson

Brian Foster

John Gellel

John Hadden

The Company is limited by guarantee. The liability of each member in respect of liabilities of the company, as specified in the Constitution, is limited to $100.

Kevin McDonald

Rachaell Saunders

Nature of operations and principal activities

Michael Smith

Robin Stenzel*

The principal activity of the Company during the financial year was as an Industry Association serving the needs of employers and members within the Australian Security Industry. No significant change in the nature of this activity occurred during the year.

Suzette Po-Williams** *Robin Stenzel tendered his resignation from the board on 13 June 2018. **Suzette Po-Willaims was appointed as a Director on 4 July 2018. Key objectives of the Association The Association’s key strategic priorities are: •

To promote a positive image of the industry;

•

To promote the highest levels of professionalism and standards in the industry;

•

To provide strong advocacy acting as a respected and unified voice for the industry;

•

To provide value to members to ensure that membership continues to be viewed as a ‘mark of distinction’ valued by consumers.

Strategy for achieving these objectives Through both short and long-term measures, the Association has in place strategies to achieve its strategic priorities. These include:

Number of recorded Members The number of Members recorded in the Register of Members of the Organisation as at 30 June 2018 for the purposes of section 254 (2) (f) of the Fair Work (Registered Organisations) Act 2009 was 2,639. Employees The company employed 13 employees as at 30 June 2018 (2017:14 employees). Rights of Members to resign In accordance with section 174 of the Fair Work (Registered Organisations) Act 2009, a member may resign from membership of the Organisation by written notice addressed and delivered to the Chief Executive Officer as per rule 11 of the ASIAL Constitution. Details of Trustee of Superannuation Entities No member of the Board was:

•

Providing advocacy through engagement with regulators and through industry submissions;

i. A trustee of a superannuation entity of an exempt public sector superannuation scheme or

•

Providing media comment on topical industry issues;

•

Providing member services as an approved security industry association in the ACT, QLD and VIC;

•

Performing the role as a cabling registrar under the Australian Communications and Media Authority’s Cabling Provider Rules;

ii. A director of a company that is a trustee of a superannuation entity or exempt public sector superannuation scheme where the criterion for the member being a trustee or director is that the member is an officer or member of ASIAL.

•

Promoting the use of ASIAL members through consumer awareness campaigns;

•

Providing professional development opportunities and industry certification schemes;

•

Ongoing development of the Association’s Customer Relationship Management system to ensure member needs are fully serviced;

•

Continuous development of the Association’s communications channels to ensure that they best serve the needs of members and the broader community;

•

Offering practical and affordable member benefits and services.

Operating Results for the Period and Review of Operations The Association earned a net profit for the year of $1,101,421 (2017: $77,479). The Association’s reserves grew to $4,614,267. The Association remains committed to its policy of reinvesting surpluses into the maintenance and improvement of services to members, whilst using the balance to build sufficient reserves for when they may be needed. Significant Changes in the State of Affairs No significant change in the state of affairs of the Company occurred during the financial year.

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

Significant Events after Balance Date

Directors Attendance at Board meetings

No significant events have taken place after the balance date.

Rod Anderson (3/5)

Brian Foster (4/5)

Likely Developments and Expected Results

John Gellel (3/5)

John Hadden (5/5)

Directors have budgeted for a surplus of $5,724 for the coming year, which includes a provision for celebrating the Association’s 50th anniversary. The Association’s consumer awareness campaign will continue through funding from the member marketing fee. The Association has in place a number of ongoing strategic partnerships which will support initiatives aimed at raising standards and compliance among members.

Kevin McDonald (5/5)

Rachaell Saunders (5/5)

Michael Smith (5/5)

Robin Stenzel (5/5)

Attendance at National Reference Group meetings Rod Anderson (1/1)

Brian Foster (1/1)

John Gellel (0/1)

Kevin McDonald (1/1)

Loans, grants and political donations

Neil McLean (1/1)

Rachaell Saunders (1/1)

The Association has made no loans, grants or political donations over the past year.

John Fleming (1/1)

Peter Johnson (1/1)

Rob Seth (1/1)

Suzette Po-Williams (1/1)

Proceedings on behalf of the company

Chris Delaney (1/1)

Chevelle Millhouse 1/(1)

No person has applied for leave of Court to bring proceedings to which the person is a party for the purpose of taking responsibility on behalf of the company for all, or any part of these proceedings. Indemnification and Insurance of Directors and Officers During the year, the company has paid a premium in respect of a contract insuring directors and officers against: (a) liability arising from wrongful acts committed in their capacity as directors and officers of the company, but excluding dishonesty, fraud, malicious conduct or wilful breach of duty; and (b) the costs of legal representation in relation to such liabilities. The premium paid was $11,266, which also includes cover for the company in respect of loss it suffers as a result of wrongful, wilful or fraudulent acts of its directors, officers and employees. This contract complies with Section 199B of the Corporations Act 2001. Proceedings on Behalf of the Company No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings.

Darryl Milling (0/1) A copy of the auditors’ independence declaration, as required under section 307C of the Corporations Act 2001, is set out on page 21. This report is made in accordance with a resolution of the Directors.

Kevin McDonald Michael Smith Director Director

Crows Nest, 10 September 2018

Auditors Foster Raffan continues to act as auditors in accordance with Section 327 of the Corporations Act 2001. Directors’ Emoluments and Transactions No emoluments have been received or are due and receivable by Directors from the company or any related body corporate. Directors Meetings Attendance by each director at board and board committee meetings, held during the period each director held office this year, is shown below. The number of meetings is in brackets.

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

FINANCIAL REPORT

FOR THE YEAR ENDED 30 JUNE 2018

Directorsâ&#x20AC;&#x2122; Declaration In accordance with a resolution of the directors of Australian Security Industry Association Limited, we state that: (a) The financial statements and notes set out on pages 24 to 39 are in accordance with the Reporting Guidelines or Part 3 of Chapter 8 of the Fair Work (Registered Organisations) Act 2009 and: (i) comply with Accounting Standards and the Corporations Regulations 2001; and (ii) give a true and fair view of the companyâ&#x20AC;&#x2122;s financial performance, financial position and cash flow as at 30 June 2018 and of its performance for the year ended on that date; (b) in the opinion of the directors there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. (c) during the financial period to which the General Purpose Financial Report relates and since the end of that year: (i) meetings of the committee of management (the Board) were held in accordance with the Rules of the reporting unit (ASIAL); (ii) the financial affairs of the reporting unit have been managed in accordance with its Rules; (iii) the financial records of the reporting unit have been kept and maintained in accordance with RO Act and its related Regulations; and (iv) No member of the Association or a Registrar has made a request for information under section 272 of the RO Act; and (v) there has been no order for inspection of financial records made by the Commission under section 273 of the RO Act. (d) no revenue has been derived from undertaking recovery of wages activity during the reporting period.

On behalf of the Board

Kevin McDonald Michael Smith Director Director

Crows Nest, 10 September 2018

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

Auditorâ&#x20AC;&#x2122;s Independence Declaration I declare, to the best of my knowledge and belief that during the year ended 30 June 2018 there have been: (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (ii) no contraventions of any applicable code of professional conduct in relation to the audit.

Foster Raffan Chartered Accountants Level 6, 8 West Street North Sydney NSW 2060

GD Wood, FCA #18237 Holder of a current Public Practice Certificate Principal North Sydney, 10 September 2018

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

FINANCIAL REPORT

FOR THE YEAR ENDED 30 JUNE 2018

Independent Audit Report to the Members of Australian Security Industry Association Limited Report on the Audit of the Financial Report

Opinion We have audited the financial report of Australian Security Industry Association Limited (the reporting unit) which comprises the statement of financial position as at 30 June 2018, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes to the financial statements, including a summary of significant accounting policies; and the directors’ operating report. In my opinion, the accompanying financial report presents fairly, in all material aspects, the financial position of the reporting unit as at 30 June 2018, and its financial performance and its cash flows for the year ended on that date in accordance with:

Information Other than the Financial Report and Auditor’s Report Thereon The directors are responsible for the other information. The other information obtained at the date of this auditor’s report is in the Operating Report and accompanying the financial report. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

a) the Australian Accounting Standards and

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

b) any other requirements imposed by the Reporting Guidelines or Part 3 of Chapter 8 of the Fair Work (Registered Organisations) Act 2009 (the RO Act).

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have found nothing to report in this regard.

I declare that management’s use of the going concern basis in the preparation of the financial statements of the Reporting Unit is appropriate.

Responsibilities of the Board for the Financial Report

Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report. We are independent of the Reporting Unit in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code0 that are relevant to our audit of the financial report in Australia. We have also fulfilled my other ethical responsibilities in accordance with the Code. We believe that the audit evidence obtained is sufficient and appropriate to provide a basis for our opinion.

The Board of the reporting unit is responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the RO Act, and for such internal control as the Board determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the Board is responsible for assessing the reporting unit’s ability to continue as a going concern, disclosing, as applicable, matters relate d to going concern and using the going concern basis of accounting unless the Board either intend to liquidate the reporting unit or to cease operation, or have no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Report Our objective is to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the overrise of internal control.

Opinion on the Remuneration Report

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the reporting unit’s internal control.

The Board is responsible for the preparation and presentation of the remuneration report in accordance with the reporting guidelines of the reporting unit. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.

We have audited the Remuneration Report included in the statement of comprehensive income and note 3 of the financial report for the year ended 30 June 2018. In our opinion, the Remuneration Report of the company for the year ended 30 June 2018, complies with section 300A of the Corporations Act 2001. Responsibilities

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board. • Conclude on the appropriateness of the Board’s use of the going concern basis for accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Reporting Unit’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the reporting unit to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

Foster Raffan

GD Wood, FCA Principal AA2017/31 Level 6, 8 West Street, North Sydney NSW 2060 10 September 2018

• Obtain sufficient appropriate audit evidence regarding the financial performance of the entities or business activities within the reporting unit to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the reporting unit audit. We remain solely responsible for our audit opinion. We communicate within the Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We declare that we are an approved auditor, a member of Chartered Accountants Australia and New Zealand and hold a current Public Practice Certificate.

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

FINANCIAL REPORT

FOR THE YEAR ENDED 30 JUNE 2018

Statement of Comprehensive Income FOR THE YEAR ENDED 30 JUNE 2018 Notes

Revenue – operating – investment

2018

2017

2,523,633

2,396,522

126,306

115,773

(671,431)

(639,698)

(1,375,445)

(1,307,202)

(24,441)

(26,423)

(527,201)

(461,493)

51,421

77,479

51,421

77,479

1(o)

1,050,000

1,101,421

77,479

Expenses directly related to operating activities Employee expenses Depreciation Other expenses PROFIT BEFORE INCOME TAX Income tax expense PROFIT FOR THE YEAR Other comprehensive income TOTAL COMPREHENSIVE INCOME FOR THE YEAR

The accompanying notes form part of these financial statements

Statement of Financial Position FOR THE YEAR ENDED 30 JUNE 2018 Notes

2018 $

2017 $

Cash and cash equivalents

2,572,679

2,380,022

Trade and other receivables

468,247

460,630

Other current assets

77,117

98,580

3,118,043

2,939,232

3,618,875

2,582,552

TOTAL NON-CURRENT ASSETS

3,618,875

2,582,552

TOTAL ASSETS

6,736,918

5,521,784

CURRENT ASSETS

TOTAL CURRENT ASSETS NON â&#x20AC;&#x201C; CURRENT ASSETS Property, plant and equipment

CURRENT LIABILITIES Trade and other payables

1,921,790

1,830,683

Employee provisions

139,460

129,524

Centre for Compliance fund

17,577

2,078,827

1,977,784

43,824

31,154

2,122,651

2,008,938

4,614,267

3,512,846

3,279,225

3,227,804

1,335,042

285,042

4,614,267

3,512,846

TOTAL CURRENT LIABILITIES NON CURRENT LIABILITIES Employee provisions

TOTAL LIABILITIES NET ASSETS EQUITY Retained earnings Reserve TOTAL EQUITY

The accompanying notes form part of these financial statements

1(0)

FINANCIAL REPORT

FOR THE YEAR ENDED 30 JUNE 2018

Statement of Changes in Equity FOR THE YEAR ENDED 30 JUNE 2018

Balance at 1 July 2016 Comprehensive income for the year Balance at 30 June 2017 Comprehensive income for the year Balance at 30 June 2018

Retained Earnings

Property revaluation reserve

Total

3,150,325

285,042

3,435,367

77,479

3,227,804

285,042

3,512,846

51,421

1,050,000

1,101,421

3,279,225

1,335,042

4,614,267

The accompanying notes form part of these financial statements

Statement of Cash Flows FOR THE YEAR ENDED 30 JUNE 2018 Note

2018 $

2017 $

2,831,085

2,523,453

(2,678,663)

(2,387,571)

50,909

55,205

203,331

191,087

(10,764)

Net cash (used in) investing activities

(10,764)

NET INCREASE IN CASH HELD

192,657

191,087

2,380,022

2,188,935

2,572,679

2,380,022

CASH FLOW FROM OPERATING ACTIVITIES Receipts from members and others Payments to suppliers and employees Interest received Net cash generated from operating activities CASH FLOW FROM INVESTING ACTIVITIES Purchase of property, plant & equipment

Cash and cash equivalents at the beginning of the financial year CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR

The accompanying notes form part of these financial statements

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2018

Notes to the Financial Statements The financial statements are for Australian Security Industry Association Limited (the company) as an individual entity incorporated and domiciled in Australia. The company is limited by guarantee.

(b) Development of New Services

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation

The company is exempt from income tax as a result of being registered as an employer organisation under the Fair Work (Registered Organisation) Act 2009.

The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards (including Australian Accounting Interpretations), the Fair Work (Registered Organisations) Act 2009 (the RO Act) and the Corporations Act 2001. For the purpose of preparing the general financials statements, the company is a not-for-profit entity.

(d) Cash and Cash Equivalents

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated.

(e) Trade and Other Receivables

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 noncurrent assets, financial assets and financial liabilities.

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

Property Freehold land and buildings are shown at their fair value based on periodic, but at least triennial, valuations by external independent valuers, less subsequent depreciation for buildings. In periods when the freehold land and buildings are not subject to an independent valuation, the directors conduct directorsâ&#x20AC;&#x2122; valuations to ensure the carrying amount for the land and buildings is not materially different to the fair value.

The financial statements were authorised for issue on 10 September 2018 by the directors of the company.

Increases in the carrying amount arising on revaluation of land and buildings are recognised in the revaluation

Accounting Policies (a) Revenue Recognition Membersâ&#x20AC;&#x2122; and other subscriptions or fees are accounted for on an accrual basis when invoiced and recognised as income in equal monthly amounts over the period to which they apply.

Income in respect of the various activities of the company, with the exception of special events / functions, is recognised when invoiced. Income in respect of special events / functions is recognised when received.

Income received and expenses incurred in advance of activities are recognised when the activity is completed. If a loss is expected, a provision for the likely loss is made as soon as it becomes apparent.

All revenue is stated net of Goods and Services Tax (GST).

Trade receivables are recognised and carried at the original invoiced amount. A provision for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written-off as incurred.

None of the new standards and amendments to standards that are mandatory for the first time for the financial year beginning 1 July 2017 affected any of the amounts recognised in the current period or any prior period and are not likely to affect future periods.

Cash and cash equivalents include cash on hand, deposits held at-call with banks, other short-term highly liquid investments with original maturities of six months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position.

(f) Property, Plant and Equipment

New Australian Accounting Standards

Costs of developing new services are expensed as incurred.

reserve in equity. Revaluation decreases that offset previous increases of the same class of assets are recognised in other comprehensive income and reduce the revaluation surplus in equity. All other decreases are charged to the statement of comprehensive income. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

Office Equipment Office equipment is measured on the cost basis and is therefore carried at cost less accumulated depreciation and any accumulated impairment. In the event the carrying amount of office equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount. A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(i) for details of impairment). ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

Depreciation The depreciable amount of all fixed assets including buildings, but excluding freehold land, is depreciated over the asset’s useful life to the company 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

Buildings – straight line basis

Depreciation Rate

Office equipment – diminishing value basis

2.5% 10% – 66

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains 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. (g) Leases Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are recognised as expenses on a straight-line basis over the lease term. (h) Financial Instruments

Initial recognition and measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to either purchase or sell the asset (ie trade date accounting is adopted). Financial instruments are initially measured at fair value plus transactions costs except where the instrument is classified “at fair value through profit or loss”, in which case transaction costs are recognised in profit or loss immediately.

Classification and subsequent measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest rate method, or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. Amortised cost is the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method. Financial assets at fair value through profit or loss Financial assets are classified at ‘fair value through profit or loss’ when they are held for trading for the purpose of

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

short-term profit taking, or where they are derivatives not held for hedging purposes, or when they are designatedas such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in fair value (i.e. gains or losses) being recognised in profit or loss. 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 subsequently measured at amortised cost. Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the entity’s intention to hold these investments to maturity. They are subsequently measured at amortised cost. Financial liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Impairment At the end of each reporting period, the company assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-forsale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in profit or loss. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit or loss at this point. Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial liability, which is extinguished or transferred to another party and the fair value of consideration paid, including the transfer of noncash assets or liabilities assumed, is recognised in profit or loss. (i) Impairment of Assets At the end of each reporting period, the entity 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,

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2018

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position.

is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is recognised in profit or loss. Where the future economic benefits of the asset are not primarily dependent upon the asset’s ability to generate net cash inflows and when the entity would, if deprived of the asset, replace its remaining future economic benefits, value in use is determined as the depreciated replacement cost of an asset. Where it is not possible to estimate the recoverable amount of an assets class, the entity estimates the recoverable amount of the cash-generating unit to which the class of assets belong. Where an impairment loss on a revalued asset is identified, this is recognised against the revaluation surplus in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that class of asset.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities, which are recoverable from or payable to the ATO, are presented as operating cash flows included in receipts from customers or payments to suppliers. (n) Comparative Figures Where required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. (o) Critical Accounting Estimates and Judgments The directors evaluate estimates and judgments incorporated into the financial statements 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 company.

(j) Trade and other payables

Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the company during the reporting period which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.

(k) Employee Benefits

Provision is made for the company’s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year are also measured on a consistent manner with those liabilities expected to be settled within one year. The directors have not measured employee benefits payable later than one year at the present value of the estimated future cash outflows as it is believed that the amount would not be materially different to the current method used to calculate employee provisions. Contributions are made by the entity to employee’s superannuation funds and are charged as expenses when incurred.

(l) Provisions Provisions are recognised when the entity has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period. (m) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Key Estimates Impairment The freehold land and buildings were independently valued at 20 June 2018 by AON Valuation Services. The valuation was based on the fair value less cost to sell. The critical assumptions adopted in determining the valuation included the location of the land and buildings, the current strong demand for land and buildings in the area and recent sales data for similar properties. The valuation resulted in a revaluation increment of $1,050,000 being recognised for the year ended 30 June 2018. Together with a revaluation of $285,042 brought forward from 2017, the accumulated reserve came to $1,335,042 at 30 June 2018.

(p) Economic Dependence The company is dependent on being recognised as the peak national body representing the interests of the security industry. (q) Contingent Liabilities and Contingent Assets Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the relevant notes. They may arise from uncertainty as to the existence of a liability or asset or represent an existing liability or asset in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain, and contingent liabilities are disclosed when settlement is greater than remote. (r) Going concern As with all member- based organisations, the company is reliant on the continued financial support of its members to continue as a going concern.

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

2. REVENUE

2018 $

2017 $

1,559,465

1,524,307

Levies

Grants and/ or donations

Revenue from operating activities Membersâ&#x20AC;&#x2122; subscriptions

Exhibition, conference and seminars

142,886

112,180

Member marketing fee

145,162

122,065

Cabling providers

158,389

150,780

Magazine

56,982

106,206

Breakfast briefings

36,827

38,645

Grading, seminars and workshops

34,783

34,996

Insurance support

45,000

47,578

Special events

73,400

78,571

9,300

Strategic Partnership

68,500

82,309

GOLDOC

110,800

Statutory compliance

52,800

58,025

WHS income

23,250

21,225

7,589

5,891

Consultancy

E-learning income Miscellaneous income Total revenue from operating activities

7,765

4,444

2,523,633

2,396,522

61,753

60,568

Revenue from investment activities Rental income Interest Total revenue from non-operating activities Total revenue from ordinary activities

64,553

55,205

126,306

115,773

2,649,939

2,512,295

462,456

464,211

3. EMPLOYEE BENEFITS Office holders Wages and salaries Superannuation

51,379

44,100

Leave and other entitlements

15,290

25,543

Separation and redundancies Other employee expenses Subtotal employee expenses holders of office

8,204

9,600

537,329

543,454

Employees other than office holders Wages and salaries

625,126

656,501

Superannuation

73,267

61,648

Leave and other entitlements

82,616

3,997

Separation and redundancies

2,208

Other employee expenses

54,899

41,602

Subtotal employee expenses employees other than office holders

838,116

763,748

1,375,445

1,307,202

Total employee expenses

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2018

4. OTHER EXPENSES 2018 $

2017 $

28,000

25,000

6,000

6,500

Remuneration of auditors Financial statement audit services Other services – interim review Other services – general advices

34,000

31,500

4,716

Administration expenses - Contractors/consultants - Compulsory levies - Consideration to employers for payroll deductions - Information communications technology - Meeting expenses - Office expenses - Travel expenses Affiliation fees Bad debts written off Bank charges

96,463

95,653

993

7,410

157,434

103,135

65,841

65,627

359,447 -

271,825 -

7,189

2,148

Capitation fees

Donations – Total paid that were $1,000 or less

Donations – Total paid that exceeded $1,000

Finance costs

Grants – Total paid that were $1,000 or less

Grants – Total paid that exceeded $1,000

Industry relations service

129,891

127,451

Industry research

15,000

Legal costs – litigation

Legal costs – other legal matters

3,883

14,096

Marketing expenses

9,159

7,815

Miscellaneous expenses

1,718

6,658

914

Net loss from sale of assets Penalties via RO Act Total other expenses

527,201

461,493

790,730

511,030

5. TAX EXPENSE The company is exempt from income tax from 1 July 2010 as a result of being registered as an employer organisation under the Fair Work (Registered Organisation) Act 2009. 6. CASH AND CASH EQUIVALENTS Current Cash at bank Short-term bank deposits

1,781,949

1,868,992

2,572,679

2,380,022

$7,091 (2017 $5,530) of the short-term bank deposits are bonds paid to the company by tenants.

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

7. TRADE AND OTHER RECEIVABLES 2018 $

2017 $

Current Trade receivables

478,247

470,630

Less: provision for doubtful debts

(10,000)

468,247

460,630

10,000

31,243

Provision for doubtful debts as at 30 June 2017 Charge for year

Written off

(21,243)

10,000

Provision for doubtful debts as at 30 June 2018 Credit Risk â&#x20AC;&#x201C; Trade Receivables

The company does not have any material credit risk exposure to any single receivable or group of receivables. The following table details the companyâ&#x20AC;&#x2122;s trade receivables exposed to credit risk (prior to collateral and other credit enhancements) with ageing analysis and impairment provided thereon. The balances of receivables that remain within the initial trade terms (as detailed in the table) are considered to be of high credit quality.

Gross amount $

2017 <30 days

41,634

Past due and impaired $

Past due not impaired $

Not due not impaired $

41,634

31-60 days

384,288

34,893

349,395

61-90 days >90 days

27,502 17,206 470,630

366 9,422 9,808

27,136 7,764 69,793

391,029

2018 <30 days

377,180

31-60 days

44,508

61-90 days

15,436

>90 days

41,123

478,247

101,067

377,180

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

8. OTHER ASSETS Current Prepayments

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

77,117

98,580

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2018

9. KEY MANAGEMENT PERSONNEL REMUNERATION 2018

2017

462,456

464,211

Short-term employee benefits Salary Annual leave accrued

55,915

55,914

Total short-term employee benefits

518,371

520,125

Superannuation

51,379

44,100

Total post employment benefits

51,379

44,100

Long service leave

77,513

51,957

Total other long-term benefits

77,513

51,957

647,263

616,182

3,550,000

2,500,000

Post employment benefits

Other long-term benefits

Termination benefits

10.PROPERTY, PLANT & EQUIPMENT Freehold land and building- 3-yearly independent revaluation – June 2018 Less: accumulated depreciation Office equipment, furniture and fittings – at cost Less: accumulated depreciation Total property, plant and equipment

(4,384)

(2,924)

3,545,616

2,497,076

303,422

298,751

(230,163)

(213,275)

73,259

85,476

3,618,875

2,582,552

Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Land & Building $

Office Equipment & Software $

Total $

2,498,536

110,439

2,608,975

Additions at cost

Disposals

(1,460)

(24,963)

(26,423)

2,497,076

85,476

2,582,552

2,497,076

85,476

2,582,552

10,764

1,050,000

(1,460)

(22,981)

(24,441)

3,545,616

73,259

3,618,875

2017 Balance at the beginning of the year

Depreciation Carrying amount at end of year 2018 Balance at the beginning of the year Additions at cost Revaluation Disposals Depreciation Carrying amount at end of year

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

Fair Value Hierarchy The following table provides an analysis of financial and non-financial assets and liabilities that are measured at fair value, by fair value hierarchy. Date of valuation

Level 1 $

Level 2 $

Level 3 $

24 July 2015

2,497,076

3,545,616

Fair value hierarchy at 30 June 2017 Assets measured at fair value Freehold land and building Total Liabilities measured at fair value Total Fair value hierarchy at 30 June 2018 Assets measured at fair value Freehold land and building

20 June 2018

Total Liabilities measured at fair value Total

11. TRADE AND OTHER PAYABLES Current Trade payables Employee liabilities

2018

2017

101,156

75,198

35,212

Other current payables

96,688

97,076

Considerations to employers for payroll deductions Legal Costs - litigation Legal Costs - other legal matters

197,844 -

207,476 -

47,400

34,127

Unearned income

Events income Cablers registration Membership subscriptions

217,349

241,425

1,418,709

1,307,722

Security Insider advertising

1,319

1,819

Industry briefing

1,499

1,895

Rental income

Financial liabilities at amortised cost classified as trade and other payables

37,670

36,219

1,723,946

1,623,207

1,921,790

1,830,683

197,844

207,476

For trade payables settlement is usually made within 30 days.

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2018

12. EMPLOYEE PROVISIONS 2018 $

2017 $

Annual leave

55,915

55,914

Long service leave

77,513

51,957

Office holders

Separation and redundancies Other employee provisions Subtotal employee provisions – office holders

133,428

107,871

Employees other than office holders Annual leave

25,032

19,134

Long service leave

24,824

33,673

Separation and redundancies

Other employee provisions

Subtotal employee provisions – employees other than office holders Total employee provisions

49,856

52,807

183,284

160,678

139,460

129,524

43,824

31,154

160,678

131,138

118,571

112,111

(95,965)

(82,571)

183,284

160,678

17,577

Current Provision for employee benefits Non-current Provision for employee benefits Provision for employee benefits Balance at 1 July 2017 Additional provision raised during the year Amounts used Balance at 30 June 2018

13. CENTRE FOR COMPLIANCE Current Balance at 1 July 2017 Less: expenditure Balance at 30 June 2018

17,577

14. SHARE CAPITAL

There are no issued shares. The company is limited by guarantee. The liability of each member in respect of liabilities of the company is limited to $100.

15. SEGMENT INFORMATION SEGMENT LOCATIONS

The Company operates in one business and geographical segment being a not-for-profit industry association within the Security Industry throughout Australia.

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

16. CASH FLOW INFORMATION 2018 $

2017 $

1,101,421

77,478

24,441

26,424

(1,050,000)

22,606

29,540

(21,243)

(Increase) / decrease in trade receivables

(7,617)

(38,842)

(Increase) / decrease in prepayments

21,463

8,001

(9,722)

(15,884)

Reconciliation of the profit for the year with cash flow from operations: Profit after tax Non-cash items Depreciation Revaluation Increase / (Decrease) in employee provisions Increase / (Decrease) in doubtful debts Changes in assets and liabilities

Increase / (decrease) in payables Increase / (decrease) in deferred income

100,739

125,613

Net cash flow from operating activities

203,331

191,087

17. RELATED PARTY TRANSACTIONS

Any person(s) having authority and responsibility for planning, directing and controlling the activities of the company, directly or indirectly, including any director (whether executive or otherwise) is considered key management personnel.

The directors do not receive any compensation from the company other than reimbursement of their travel expenses incurred as directors. Directors who are members of the company deal with the company on the same terms as all other members unless otherwise stated.

18. FINANCIAL RISK MANAGEMENT

The companyâ&#x20AC;&#x2122;s financial instruments consist of deposits with banks and accounts receivable and payable.

The carrying amounts for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies in Note 1, are as follows: Note Financial Assets Cash and cash equivalents

2,572,679

2,380,022

Receivables

468,247

460,630

3,040,926

2,840,652

199,343

209,372

Total Financial Assets Financial Liabilities Financial liabilities at amortised cost: Trade and other payables (excluding annual leave and deferred income)

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2018

Financial Risk Exposures and Management The main risks the company is exposed to through its financial instruments are credit risk, liquidity risk and market risk relating to interest rate risk. a. Credit Risk Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss for the company. The company’s material credit risk exposures are trade receivables and cash deposited with banks. The company’s exposure to credit risk arising from trade receivables is dealt with in Note 7. The company deposits cash only with government guaranteed Australian banks. Cash was with the following banks at the year end: Note

2018 $

2017 $

142,280

615,865

ING

628,971

358,846

Suncorp

254,563

252,858

Rabo Direct

270,189

262,696

St George

254,139

ANZ

Bankwest

255,301

128,873

ME Bank

252,384

Bank of Queensland

252,236

253,384

Westpac 6

262,616

255,116

2,572,679

2,380,022

b. Liquidity Risk Liquidity risk arises from the possibility that the company might encounter difficulty in settling its debts or otherwise meeting its obligations in relation to financial liabilities. The company manages this risk by preparing regular cash flow forecasts and managing credit risks. The table below reflects undiscounted financial liabilities and cash flows from financial assets that reflect management’s expectation as to the timing of realisation. Actual timing may therefore differ from that disclosed. Financial liability and financial asset maturity analysis Financial liabilities due for payment

Within 1 year 2018

1 to 5 years 2017

2018

Over 5 years

2017

2018

2017

Total 2018

2017

Trade and other payables

190,787

200,618

7,057

6,858

197,844

207,476

Total expected outflows

190,787

200,618

7,057

6,858

197,844

207,476

2,572,679

2,380,022

2,572,679

2,380,022

468,247

460,630

468,247

460,630

3,040,926

2,840,652

3,040,926

2,840,652

- 2,843,082

2,633,176

Financial assets – cash flows realisable Cash and cash equivalents Trade receivables Total anticipated inflows Net inflow/(outflow) on financial instruments

2,850,139 2,640,034

(7,057)

(6,858)

c. Market Risk Interest rate risk Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting period whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments. At the year end all cash deposited as term deposits with Rabobank, Suncorp, Bank West, Bank of Queensland, Westpac, St George and ME Bank (approximately 69% of cash on deposit) were at fixed interest rates and cash deposited with Rabobank, ING, ANZ and Bankwest was variable rates (approximately 31% of cash on deposit).

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

Sensitivity Analysis

A 2% variation in interest rates during the year would have affected profit before income tax for the year by

2018 $

2017 $

44,355

40,739

Net Fair Value Fair value estimation The fair values of financial assets and financial liabilities are considered to be equal to their carrying values as presented in the statement of financial position.

19. CAPITAL MANAGEMENT The directors control the capital of the entity to ensure that adequate cash flows are generated to fund its objectives. Risk management policies are approved and reviewed by the Board on a regular basis. These include credit risk policies and future cash flow requirements. The entityâ&#x20AC;&#x2122;s capital consists of retained earnings and revaluation reserve. A significant portion of the companyâ&#x20AC;&#x2122;s net assets consists of cash and cash equivalents. The directors aim to maintain sufficient cash and readily realisable assets to be able to cover 18 Months operating expenses.

Total equity

4,614,267

3,512,846

Cash and cash equivalents

2,572,679

2,380,022

20. INFORMATION TO BE PROVIDED TO MEMBERS In accordance with the requirements of the Fair Work (Registered Organisations) Act 2009, the attention of members is drawn to the provisions of sub-sections (1), (2) and (3) of section 272 which reads as follows: 1)

A member of a reporting unit, or the General Manager, may apply to the reporting unit for specified prescribed information in relation to the reporting unit to be made available to the person making the application.

2) The application must be in writing and must specify the period within which, and the manner in which, the information is to be made available. The period must not be less than 14 days after the application is given to the reporting unit. 3) A reporting unit must comply with an application made under subsection (1).

21. EVENTS AFTER THE REPORTING PERIOD There were no events that occurred after 30 June 2018, and/or prior to the signing of the financial statements, that would affect the ongoing structure and financial activities of the company. 22. COMPANY DETAILS The registered office and principal place of business of the company is 41 Hume Street, Crows Nest NSW 2065.

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

ASIAL Code of Professional Conduct 1

For the purposes of ASIALâ&#x20AC;&#x2122;s Code of Professional Conduct (the Code), Members shall include, as applicable, any of their employees and contractors.

Members shall conduct their activities in a professional and competent manner with respect for the public interest, maintaining the privacy and confidentiality in their dealings, and shall at all times act with integrity in dealing with clients, employees or sub-contractors, past and present, with their fellow Members and with the general public. The objective of the Code is for Members to adopt best practice industry standards.

Members shall not intentionally disseminate false or misleading information, whether written, spoken or implied, nor engage in false, misleading or deceptive conduct or otherwise bring the security industry into disrepute. Members have a duty to maintain truth, accuracy and good taste in advertising and sales promotion. Members shall not represent conflicting or competing interests except with the express consent of those concerned given only after full disclosure of the facts to all interested parties.

Members shall refrain from knowingly associating with any enterprise, which uses improper or illegal methods for obtaining business.

Members shall not intentionally injure the professional reputation or practice of another Member.

Members shall comply with all applicable State and Federal legislation covering security providers and in particular statutory obligations, including but not limited to matters relating to consumer laws, occupational health and safety and workplace relations laws.

ASIAL is to be informed when the Memberâ&#x20AC;&#x2122;s attention has been drawn to any breach by that Member of the Code.

Members shall help to improve the body of knowledge of the profession by exchanging information and experience with fellow Members, participating in industry related programs designed to raise the standard of service delivery, and by applying their special skill and training for the benefit of others.

10 Members shall refrain from using their relationship with the

Association in such a manner as to state or imply an official accreditation or approval beyond the scope of membership of the Association and its aims, rules and policies.

11 Members shall cooperate with fellow Members in upholding and enforcing the ASIAL Code of Professional Conduct.

12 Members shall have in place procedures to deal appropriately and promptly with complaints about the provision of its services and actively engage in the resolution of complaints raised via ASIALâ&#x20AC;&#x2122;s Dispute Resolution Policy and Procedure.

13 Members shall maintain appropriate and accurate records in accordance with all relevant statutory requirements.

14 Where an alleged breach of this Code is appropriately

brought to the attention of ASIAL, then ASIAL will in the first instance raise this matter in writing with the Member. ASIAL will provide the Member with the opportunity to take remedial action, if that is appropriate under the circumstances, or where remedial action should have been but has not been carried out by the Member, then ASIAL is to inform the Member that it will take the appropriate disciplinary action by way of a show cause notice why their membership should not now be cancelled.

ABN 91 000 813 365 I ASIAL 2018 Annual & Financial Report

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