2020 ASIAL Annual and Financial Report by ASIAL

ADVICE & SUPPORT WHEN YOU NEED IT MOST

2020 ANNUAL & FINANCIAL REPORT

ASIAL membership gives you access to specialist advice, support and services to support your every need to help your business succeed. VISION A safe and secure Australia.

MISSION To continue to be the leading security association where membership is a mark of distinction that is valued by our members, the public and government.

www.asial.com.au

BOARD OF DIRECTORS President

Kevin McDonald

Vice President

John Gellel

Directors

Rod Anderson, Brian Foster, Fred Khoury, Suzette Po-Williams, Rachaell Saunders, Michael Smith

CONTENTS President’s Report

Secretary’s Report

GROWTH

Bryan de Caires, Chris Delaney, John Fleming, Peter Johnson, Scott Corcoran, Neil McLean, Darryl Milling, and Robert Seth (in addition to the Board)

Membership

Celebrating 50 Years

INDUSTRY PROMOTION

SUPPORTING MEMBERS

Auditor

SDJA

PROVIDING ADVOCACY

Solicitor/Attorney

Goldrick Farrell Mullan

DRIVING PROFESSIONAL STANDARDS

DIRECTOR PROFILES

FINANCIAL REPORT

Directors’ Operating Report

Directors’ Declaration

Auditor’s Independence Declaration

Report Required Under Subsection 255(2A)

Independent Audit Report

Statement of Profit or Loss and Other Comprehensive Income

Statement of Financial Position

Statement of Changes In Equity

Statement of Cash Flows

Notes to the Financial Statements

National Reference Group

Consultants 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

Finance and Administration Manager

Sunny Moon

Marketing and Communications Officer

Anna Ho

Marketing & Communications Coordinator

Brenda Jackson

Member Liaison Officer

Tania Laird

Senior Membership Officer

Alexandra Firth

IT Systems Support Officer Nadine Keady Membership Coordinator

Leonie Fraser

Membership Coordinator

Lindsay Li

Membership Coordinator

Kiara Hutchinson

Membership and Cabling Coordinator

Lisa Collier

President’s Report I am pleased to introduce the 2020 Annual and Financial Report for the Australian Security Industry Association Limited. The 2019-20 year has been an eventful and challenging one for the Association on many fronts. However, with the support of members and the Secretariat team we have come through stronger and with our reputation further strengthened. In July, the Association celebrated its 50th anniversary with a gala dinner held at the spectacular Sydney Town Hall. Among those who addressed the 450 guests present included The Hon Nick Minchin, son of ASIAL’s founding President, Devon Minchin. July also saw the release of the ASIAL funded Australian Strategic Policy Institute Report ‘From board room to situation room: why corporate security is national security’ and ASIAL’s Guidelines For Dealing With Discrimination, Harassment, Sexual Harassment and Bullying. In August, the Association’s podcast series continued with an interview with Nick Aldworth, Former National Coordinator Protect and Prepare, Counter Terrorism Policing National HQ, New Scotland Yard. The podcast covered discussion of the impact the 2017 terrorist attacks in the UK had on protective security thinking and how, in collaboration with others, the UK Counter-Terrorism Police are attempting to galvanise the whole of the private sector in playing an integrated role in keeping people safe.

Through September and ensuing months, ASIAL played an active role in contributing to development of a Workforce Development Plan for the Security Industry lead by Jobs Queensland. The final document will be considered by the Queensland government. In October over 300 Security industry executives gathered to celebrate excellence and achievement at ASIAL’s Annual Industry Awards. In the addition to the ASIAL Awards, the evening also included the Outstanding Security Performance Awards and the Australian Security Medals Awards. Once again demonstrating ASIAL’s commitment to collaboration and providing a platform for the industry to get together and celebrate all that is good about our industry. In November, ASIAL entered into Memorandums of Understanding with the Australian Information Security Association, (ISC)² and the New Zealand Security Association. These MoUs reaffirm ASIAL’s strategic focus of creating a framework for cooperation and collaboration across different areas of security. In December I addressed the Leadership in Counter Terrorism Alumni Association (LinCT-AA) International Terrorism Forum attended by 500 law enforcement and terrorism experts from around the world. The presentation addressed the importance of public/ private partnership and the need to strengthen security capability.

From 1 January 2020, ASIAL’s Code of Practice for Mobile Security Patrols came into effect. The Code provide ASIALs members with a practical guide for the delivery of mobile security patrol services. With the unfolding COVID-19 outbreak, through February, March and April members were kept abreast of developments through regular e-newsletter updates. In February, following data provided by state and territory security licensing regulators, we published the ASIAL Security Industry Licensing Report 2020. The report provides comprehensive data on the number of individual and company security licence holders across the country. In March, the COVID-19 pandemic took hold across Australia. The introduction of strict lockdown measures meant that many sectors of our industry were hit hard, as pubs, clubs, cinemas, restaurants, music and sporting venues were all shut down. At the same time, other sectors of the industry were busy servicing the needs to supermarkets, hotel quarantine centres and temperature screening staff entering factories and offices. The ASIAL Secretariat continued to operate throughout the COVID-19 pandemic, providing members with advice and support through this challenging period. March saw the release of the Australian Security Research Centre report supported by ASIAL on Occupational Violence, Aggression and Duty of Care in Australia. During April and May the Association contributed to the preparation of COVID-19 guidance materials prepared by Safe Work Australia and liaised with State and Territory Security Industry regulators to deliver a series of virtual licensing updates, as well as the Australian Taxation Office. In May the Association expanded its e-learning course catalogue with the introduction of courses on COVID-19 Awareness, Infection Control in the Workplace, Coping with Change in the Workplace, Effective Practices When Working from Home, Leading Virtual Teams and Running Effective Virtual Meetings. Finally, in June a Full Bench of the Fair Work Commission handed down its decision in the ‘Ordinary Hours of Work case’ – a long running dispute between the United Workers’

50th anniversary gala dinner, Sydney Town Hall

ABN 91 000 813 365

Secretary’s Report

Union and the Security Industry. The decision in favour of ASIAL ensures that members can continue to allocate ordinary hours and overtime in roster cycles of up to 8 weeks in an efficient and cost-effective manner. I would like to acknowledge the efforts of Tim McDonald from Moray and Agnew Lawyers who were engaged to defend the industry position, assisted by Chris Delaney, ASIAL’s Workplace Relations Advisor. Risk Governance The Board continues to set clear expectations of management on the governance of both financial and non-financial risk. Supporting this are the Finance Committee and Risk Committee which undertake reviews and seek information from the business and make recommendations and offer advice to the Board. The Board also measures its adherence to accepted not for profit governance standards. The Board with support from the Committee’s has oversight of the Risk Management Framework of the Association. This oversight includes managing risk consistent with the Associations risk appetite and strategy. During the year several matters were considered in detail by the Board including: - COVID-19 risk management both financial and non-financial - Compliance with the AICD Not for Profit Governance Principles - Monitoring the risk framework with regular risk register reporting - Investment strategy and insurance - Reviews with Association Auditor

Despite a challenging year which saw the economy battered by bushfires, floods and the COVID-19 pandemic, the Association was able to post a strong result for the year. The strong foundation has enabled the Association to undertake a wide range of activities and to achieve a great deal for the industry over the past year. Whilst revenue fell slightly, this was offset by a reduction in expenses. The Government’s cash boost and payroll tax relief payments totalling $65,550 contributed to generating a surplus of $104,075 for the year. Encouragingly member subscription income rose by 3.2%, reflecting the outstanding value for money offered by membership of the Association. The annual growth in membership underscores the vital role the Association performs and the support it provides particularly during difficult times. With Microsoft no longer providing updates or technical support for its Windows Server 2008 from early 2020, the Association invested $47,000 in February 2020 to build a network based in the Microsoft 365 cloud. The investment proved a timely one during the COVID-19 pandemic enabling ASIAL Secretariat staff to work remotely and continue to provide advice and support to members. Another significant expense incurred during the year was the $83,000 spent on legal expenses to defend the industry position before a full bench of the Fair Work Commission. The decision in favour of ASIAL ensures that members can continue to allocate ordinary hours and overtime in roster cycles of up to 8 weeks in an efficient and cost-effective manner. All unspent revenue raised through the member marketing levy over the past year will be invested in the year ahead to fund a range of initiatives to promote awareness of the important role the security industry performs. Finally, whilst it has been a demanding year, thanks to the ongoing support of the ASIAL Board of Directors, Convenors, members and Secretariat team the Association has come through stronger and more focused.

All in all, it has been a year during which much has happened, at the end of which the Association has emerged in a strong and healthy position.

Bryan de Caires, Chief Executive Officer and Secretary

The Association continues to be the leading security association where membership is a mark of distinction, and we remain committed to the vision of a safe and secure Australia.

5-Year Performance Summary (2016-2020)

In closing, I would like to thank my fellow Board members, State and Territory Convenors and the Secretariat, lead by Bryan de Caires for the contribution they have made in ensuring the ongoing growth and success the association.

$5m $4.5m $4.0m

Total income

$3.5m $3.0m

Total Expenses

$2.5m

Surplus/ Loss

$2.0m $1.5m

Equity

$1.0m $0.5m

Kevin McDonald President ASIAL

$0.0m

2016

2017

2018

2019

2020

ASIAL 2020 Annual & Financial Report

GROWTH Membership The past year has been extremely challenging for business, government and the wider community, with severe bush fires, floods and the far reaching impact of the COVID-19 pandemic to deal with. Throughout, the ASIAL Secretariat has continued to provide members with trustworthy, reliable and timely advice and support on a broad range of issues. Whether compliance or regulatory issues, technical and industrial relations advice or COVID-19 related information and advice, ASIAL continues to be there for its members. Despite these challenges, the Association welcomed 313 new members during the year, at 30 June 2020 total membership stood at 2,637 (a net annual gain of 53 members). Growth in membership is important as it further strengthens the Associationâ&#x20AC;&#x2122;s ability to advocate for the industry and provide a strong voice on important issues.

ABN 91 000 813 365

Our membership base continues to represent the entire industry, including security personnel, cash management, electronic security, wholesalers and distributors, locksmiths and physical security, training, investigations as well as major users of security. Whilst members remain our primary focus, we have also reached out to a broad range of key stakeholders, including government, regulators, consumers and the media, who all play a vital role in helping us support the security industry.

2019-2020 HIGHLIGHTS

2,637 MEMBERS ACROSS AUSTRALIA Platinum members (25+ years)

Gold members (16-24 years)

395

6,309

MEMBER LEVELS

343

Silver members (11-15 years)

408

Bronze members (6-10 years)

474,746

ASIAL Registered Cablers

Website page views

7,512

4,600

Document downloads

225,000

Podcast downloads

Emails and inbound calls handled by ASIALâ&#x20AC;&#x2122;s Secretariat in 2019-2020

ASIAL 2020 Annual & Financial Report

Celebrating 50 years The Associationâ&#x20AC;&#x2122;s commitment to professional development and networking opportunities was highlighted by its successful program of industry events. Industry Breakfast Briefings held across the country during the year attracted over 600 participants. The COVID-19 pandemic forced the postponement of events scheduled to be held during March, April, May and June. The 2019 Security Exhibition & Conference attracted attendance of 6,193 (up 15% on the previous year) and the ASIAL Conference was another sell out event.

ABN 91 000 813 365

In July, ASIAL celebrated its 50th anniversary with a special Gala Dinner held at Sydney Town Hall. Among the 450 distinguished guests included The Hon Nick Minchin (son of ASIALâ&#x20AC;&#x2122;s founding President, Devon Minchin), senior representatives from law enforcement agencies and regulators, along with past and present ASIAL Presidents. In October, ASIAL staged the 24th Annual Australian Security Industry Awards for Excellence in collaboration with the 5th annual Australian Outstanding Security Performance Awards and 9th Annual Australian Security Medals Awards.

Since its establishment 50 years ago, ASIAL has performed a key role safeguarding and upholding standards as well as driving innovation. It has a strong voice for fairness and integrity, representing the interests of industry to state and federal governmentsâ&#x20AC;?. Prime Minister Scott Morrison

ASIAL 2020 Annual & Financial Report

INDUSTRY PROMOTION MEDIA

ASIAL generated 73 media mentions with a combined potential audience reach of:

26 million ASIAL WEBSITE

The ASIAL web site www.asial.com.au underwent a major refresh during the year. Over the past 12 months the website generated:

The 34th annual event provided an excellent showcase for the industry, attracting a total attendance of:

6,193 attendees

+15% from the previous year

ABN 91 000 813 365

120,115

474,746

visitors

page views

SOCIAL MEDIA

PODCASTS

ASIAL’s social media channels enjoyed strong organic growth across all platforms:

ASIAL’s Podcast series has so far generated over:

+42% +12% +06%

4,600 downloads SECURITY INSIDER MAGAZINE

Produced on a quarterly basis, the magazine has a distribution of:

10,000 subscribers

WEBINARS

Webinars were provided on: Compliance and regulation Tax support for small business Cybersecurity Industrial Relations Video Surveillance

SUPPORTING MEMBERS Advice and Support Access to ASIAL’s experienced team of professionals is never more than a phone call or email away.

Monitoring Centre Certification ASIAL’s program has 35 participating monitoring centres.

Control Equipment Class 5 Capability Certification ASIAL provides Certification for Class 5 Capability of Control Equipment with respect to AS/NZS 2201.1:2007.

Complaints 21 complaints against members were received in 2019-20, down from 24 from the previous year.

ABN 91 000 813 365

First Alert e-newsletter First Alert is distributed bi-monthly to over 5,000 contacts (during the COVID-19 pandemic distribution increased to daily)

e-learning platform ASIAL’s elearning platform provides access to 100 online short courses.

Redundant Centre Certification ASIAL’s program provides certification that a Monitoring Centre’s critical business functions will either continue to operate despite serious incidents or disasters that might otherwise have interrupted them or will be recovered to an operational state within a reasonably short period at a redundant centre located elsewhere.

Compliance ASIAL’s Compliance & Regulatory Affairs Advisor handled over 12,500 phone and email enquiries from members.

Free Jobs Board Members have free access to post jobs on the ASIAL jobs board.

Safe Workplace Management System ASIAL’s SWMS program has been designed to meet the requirements of Australian Standard 4801 and Safety Standard ISO45001.

Research ASIAL supported publication of reports by the Australian Strategic Policy Institute (From board room to situation room: why corporate security is national security), Australian Security Research Centre (Occupational Violence, Aggression and Duty of Care in Australia) and the ASIAL Security Industry Licensing Report 2020.

Workplace Relations ASIAL’s Workplace Relations Advisor handled over 11,000 calls and emails from members and represented members on over 200 separate matters involving FWO, the Fair Work Commission and disputes with employees.

ASIAL 2020 Annual & Financial Report

PROVIDING ADVOCACY ASIAL has been an active and vocal advocate for the industry through interaction with the media, engagement with government and regulators and representation of the industry on industrial relations issues.

Workplace Relations The past year has seen many changes to regulations, applications to vary award conditions and of course there has been the COVID-19 pandemic. Providing members with advice and assistance and the information necessary to operate a compliant workplace continues to be a priority through webinars, bulletins, podcasts and regular articles. Members have been provided with professional guidance and representation in matters affecting workplace relations from employment contracts, Enterprise Bargaining Agreements, disciplinary and dismissal matters, retrenchment, through to award interpretation and wage schedules. There has been a strong focus on educating and encouraging clients, including Government, to award contracts on reputation and competency as opposed to the lowest price. Zombie Enterprise Bargaining Agreements, sham contracting and underpayment of wages continue to make it difficult for compliant providers to secure profitable contracts.

ABN 91 000 813 365

COVID-19 - The COVID-19 pandemic has significantly changed how we work, with working from home, more webinars, podcasts and on-line meetings becoming the norm. In order to keep members informed ASIAL has had to adapt and respond through the greater use of virtual meetings, podcasts and email newsletters. 4 yearly Modern Award Reviews The 4 yearly Modern Award Review finally concluded in the midst of COVID-19, Jobkeeper and award variations to allow for a range of measures to assist employees and employers deal with the crisis. A new plain English Security Services Industry Award 2020 (the SSIA) came into effect on 18 June 2020. Applications to vary Award Provisions - An application by the United Workers’ Union to vary the Security Services Award 2010 after a long running dispute with the industry over the allocation of overtime during roster cycles was defended by ASIAL on behalf of the Security Industry and subsequently rejected by the Fair Work Commission.

The decision in favour of ASIAL is of major importance. It ensures that the industry will continue to have the flexibility to allocate ordinary hours and overtime in roster cycles of up to 8 weeks in an efficient and costeffective manner. ASIAL engaged Tim McDonald from Moray and Agnew Lawyers assisted by Chris Delaney, ASIAL’s Workplace Relations Advisor to defend the industry position and seek to maintain the status quo. Separate applications to vary the award for shoes to be provided by employers as part of a uniform and a new classification added to the award for a Hospital Security classification were heard by the Fair Work Commission (the Commission). The Commission agreed with ASIAL’s submissions that both applications were without merit and were subsequently dismissed. The Commission also endorsed ASIAL’s submissions that Casual overtime payments do not include the 25% Casual loading. Annual Wage Review - In June 2020, the Fair Work Commission handed down its decision in the Annual Wage Review. As a direct result of the devastating effects of COVID-19 on employment and the economy the Commission departed from its usual practice and the wage increase of 1.75% will this year be introduced in three separate periods. Most security industry workers will have their increase available from the first full pay period after 1 November 2020.

Regulatory Affairs The Association has played an important role in assisting members in meeting their compliance and regulatory obligations, providing support with business forms, standard operating procedures, business plans and direct representation with regulators. The risks of noncompliance requirements are significant, from financial penalties, criminal charges and direct impacts on business owners, managers and potentially personal assets. The Association experienced increased demand for its compliance systems and tools, including the ASIAL Safe Work Management system, document templates and resources, human resources advice and training, contractor management and licence records and checking. Access to this support has greatly assisted members in meeting audit requirements and regulator demands. The COVID-19 pandemic has resulted in increased member demand for assistance in complying with issues arising from the pandemic. In addition to access to online support information, assistance was provided regarding interpretation of government COVID determinations including border access, safety requirements, business operation and staff movement. Requests for assistance were also received in the area of debt management. The Association also provided input to COVID safe workplace guidelines prepared by Safe Work Australia. Ensuring members are kept informed of the latest regulatory changes, compliance obligations and legislative reviews is a key focus for the Association.

With the growing complexities of compliance legislation and the increase in different regulatory bodies impacting on the security industry, ASIALâ&#x20AC;&#x2122;s relevance in this area increases each year, reflected by requests from members for assistance. As an Approved Security Industry Association in Queensland, 218 members were issued with audit compliance certificates, 60 have been notified that an audit is due, three (3) are being processed and four (4) resigned after audit notification. Two (2) ASIAL members operating in Queensland were expelled due to non-compliance of the statutory audit requirement.

The COVID-19 pandemic has significantly changed how we work, with working from home, more webinars, podcasts and on-line meetings becoming the norm.

ASIAL 2020 Annual & Financial Report

DRIVING PROFESSIONAL STANDARDS Commensurate with the increased responsibilities and expectations placed on the security industry comes the need for higher professional standards and ethical practices. ASIAL continues to provide leadership by driving industry standards and best practice to effect a change in the way the industry operates and how customers view and value security. Examples of this over the past year include development of a Code of Practice for Mobile Security Patrols and a Guideline for Dealing with Discrimination, Harassment, Sexual Harassment and Bullying.

Protective Security It has been a challenging year for the protective security sector. Issues relating to wage theft, sham subcontracting and ‘zombie’ Enterprise Bargaining Agreements continue to tarnish the industry. The race to the bottom mentality, driven in part by customers who should know better (including government and large commercial infrastructure projects) results in lower service standards. While the need for a competitive marketplace is recognised, this should not be at the expense of quality and compliance with all obligations.

ABN 91 000 813 365

The Association urges customers (both government and corporate) to lead by example and support providers who provide quality service and operate in compliance with their workplace obligations. The COVID-19 pandemic has impacted significantly on some parts of the protective security sector, particularly hospitality, cash in transit, aviation and event security, whilst other parts (retail security and hotel quarantine security) have experienced strong demand. While the industry’s provision of COVID-19 security services has received positive feedback, it has also come under some criticism. ASIAL led the security industry through timely COVID-19 updates and information. Through the provision of over the phone advice and support, website updates and e-newsletters members have been kept fully informed of developments. Finalisation of the Certificate II and III in Security Operations training package and national acceptance by Security Regulators of the recommended fourteen common units of competency for entry level licensing was welcomed by ASIAL. ASIAL has long advocated the need for nationally uniform and consistent entry level training requirements. That said, variations in jurisdictional selection of units for the Certificate III in Security Operations continues to be a frustration. ASIAL will continue to work with Security Regulators in moving towards national consistency in training and licensing requirements.

Standards Australia ASIAL has actively participated in supporting standards development for the security industry and are currently committee members for Australian Standards and the International Electrotechnical Commission (IEC). During the year, the electronics committee EL-031 (chaired by John Fleming, GM, ASIAL) submitted a proposal to Australian Standards to withdraw the aged AS4806 CCTV standard and adopt the IEC 62676 series of digital CCTV standards. This was finalised in April 2020 and will now be known in Australia as the AS/ NZS 62676 series, Video Surveillance Systems (VSS) for use in security applications. The new standard for Electronic access control are AS/NZS IEC 60839.11.1:2019 Systems and Components, AS/NZS IEC 60839.11.2:2019 Application Guidelines, they have also been fully adopted and were released in December 2019. ASIAL is represented on MB029: Private Security Detection Dogs which is developing a standard to cover the welfare, competency and use of security and detection dogs.

Training

ASIAL Cabling Registry

Artibus Innovation who were commissioned by the Australian Government, undertook a review of vocational education and training for the technical security Industry. The Technical Advisory Group involving employers, industry, Registered Training Organisations (RTOs) and regulators completed the review of Technical Security Certificate II and Certificate III.

As an Australian Communications and Media Authority (ACMA) Cabling Registrar, ASIAL’s cabling registry has been kept busy responding to cablers wanting 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 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.

The review of the Certificate IV in Security Management and Certificate IV in Security Risk Analysis, Diploma of Security Risk Management and Certificate III in Investigative services were also completed this year. Regulators and RTO’s will transition to the new training packages during 2020.

National Broadband Network ASIAL has continued to engage with NBN Co to ensure information is provided to members and registered cablers 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 are kept informed of 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.

During the 2019/2020 financial year cabling registrations grew by 2%, to reach 6,309 active registrations on 30 June 2020. The majority of registrants choosing to apply for or renew their ‘Open’ registration continues to increase (5,572) as opposed to declining numbers for the ‘Restricted’ cabling registration (525), with only a few now remaining (11) for ‘Lift’ work. ASIAL continues to engage with ACMA and other cabling registrars to promote ongoing compliance and training in this sector.

While the need for a competitive marketplace is recognised, this should not be at the expense of quality and compliance with all obligations.

Security installation work must be carried out by a licenced security technician that holds an Australian Communications and Media Authority (ACMA) cablers registration card with the appropriate cabling competencies.

ASIAL 2020 Annual & Financial Report

DIRECTORS PROFILES PRESIDENT

VICE PRESIDENT

CHIEF EXECUTIVE OFFICER

KEVIN MCDONALD

JOHN GELLEL

BRYAN DE CAIRES

General Manager, Business Improvement, MSS Security Pty Ltd

General Manager, Kastle Systems

Chief Executive Officer and Secretary

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.

John has more than 20 yearsâ&#x20AC;&#x2122; experience in the security industry. Prior to joining Kastle Systems as General Manager in 2016, 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.

DIRECTOR

ROD ANDERSON

BRIAN FOSTER

FRED KHOURY

Security and Training Consultant, Standsure Security Consulting

Principal, Perspective IQ Pty Ltd

Managing Director, Access Group Solutions

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.

Brian’s career in the security industry spans over 50 years working as a senior manager and Director. He has over 20 years of cumulative service as a Director and Vice President of ASIAL.

DIRECTOR

RACHAELL SAUNDERS

MICHAEL SMITH

SUZETTE PO-WILLIAMS

Chief Executive Officer, National Protective Services

Business Consultant

Customer Service Manager, Central Monitoring 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 ASIAL Board in 2015. Rachaell was appointed to the board of the Portable Long Service Leave Authority in 2019.

Michael has 20 years of experience in the security industry. His drive is industry growth and recognition. He has worked for both Australian and international companies, private and public. He has a Bachelor of Commerce, is a CPA and a member of the AICD.

Fred has more than 30 years’ experience working in the security industry, specifically manpower. Fred is passionate about working with and promoting security professionals in order to achieve industry growth and influence.

Suzette has more than 20 years’ experience in the security industry which has included all aspects, from guarding, patrols, risk management, training and monitoring.

Not pictured: Bryan De Caires and Rod Anderson

Financial Report - For the year ended 30 June 2020

Directors’ Operating Report Your board of directors submit this operating report for the year ended 30 June 2020. 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 18 and 19 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

Fred Khoury

Kevin McDonald

Suzette Po-Williams

Rachaell Saunders

Michael Smith

Key objectives of the Association The Association’s key strategic priorities are: 1. 2. 3. 4.

Driving industry research and data sharing Promoting the industry’s role and capabilities Raising ethical and professional standards Working toward national uniform and consistent security licensing standards 5. Forging stakeholder collaboration

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. Nature of operations and principal activities 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. Number of recorded Members The number of Members recorded in the Register of Members of the Organisation as at 30 June 2020 for the purposes of section 254 (2) (f) of the Fair Work (Registered Organisations) Act 2009 was 2,637.

Strategy for achieving these objectives

Employees

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

The company employed 12 employees as at 30 June 2020 (2019:13 employees).

• • •

•

• •

•

Promoting the industry’s role and capabilities; Driving industry research and data sharing; Providing advocacy through engagement with regulators, government and through industry submissions; Raising ethical and professional standards through the development of industry codes of practice and guidelines; Providing industry representation as a Registered Organisation of Employers under the Fair Work (Registered Organisations) Act 2009; 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; 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; Forging stakeholder collaboration; 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.

ABN 91 000 813 365

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: i. A trustee of a superannuation entity of an exempt public sector superannuation scheme or 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. Operating Results for the Period and Review of Operations The Association earned a net profit for the year of $104,975 (2019: $64,239). The Association’s reserves grew to $4,783,481. The Association remains committed to its policy of reinvesting surpluses into the maintenance and improvement of services to members, whilst using the balance to maintain appropriate 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.

Significant Events after Balance Date

Directors Attendance at Board meetings

No significant events have taken place after the balance date.

Rod Anderson (0/5)

Brian Foster (5/5)

John Gellel (5/5)

Fred Khoury (5/5)

Kevin McDonald (5/5)

Rachaell Saunders (4/5)

Michael Smith (5/5)

Suzette Po-Williams (5/5)

Likely Developments and Expected Results Directors have budgeted for a loss of $59,943 for the coming year. 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. Loans, grants and political donations No loans, grants or political donations were made during the course of the year. Proceedings on behalf of the company 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

Attendance at National Reference Group meetings Rod Anderson (0/1)

Scott Corcoran (1/1)

Chris Delaney (0/1)

John Fleming (1/1)

Brian Foster (1/1)

John Gellel (0/1)

Peter Johnson (1/1)

Darryl Milling (1/1)

Kevin McDonald (1/1)

Neil McLean (1/1)

Suzette Po-Williams (1/1)

Rachaell Saunders (1/1)

Rob Seth (1/1)

Michael Smith (1/1)

A copy of the auditors’ independence declaration, as required under section 307C of the Corporations Act 2001, is set out on page 23.

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 $8,665, 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.

This report is made in accordance with a resolution of the Directors.

Proceedings on Behalf of the Company

Crows Nest, 31 August 2020

Kevin McDonald John Gellel Director Director

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. Auditors SDJA 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.

ASIAL 2020 Annual & Financial Report

Financial Report - For the year ended 30 June 2020

Directorsâ&#x20AC;&#x2122; Declaration On 31st August 2020 the Directors of Australian Security Industry Association Limited passed the following resolution in relation to the General Purpose Financial Report (GPFR) for the year ended 30 June 2020: The Directors declare that in their opinion: a) the financial statements and notes comply with the Australian Accounting Standards and the Corporations Regulations 2001; b) the financial statements and notes comply with 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); c) the financial statements and notes give a true and fair view of the financial performance, financial position and cash flows of the reporting unit for the financial year to which they relate; d) there are reasonable grounds to believe that the reporting unit will be able to pay its debts as and when they become due and payable; and e) during the financial year to which the GPFR relates and since the end of that year: i. meetings of the Directors were held in accordance with the rules of the reporting unit concerned; and ii. the financial affairs of the reporting unit have been managed in accordance with the rules of the reporting unit concerned; and iii. the financial records of the reporting unit have been kept and maintained in accordance with the RO Act; and iv. where information has been sought in any request by a member of the reporting unit or Commissioner duly made under section 272 of the RO Act has been provided to the member or Commissioner; and v. where any order for inspection of financial records has been made by the Fair Work Commission under section 273 of the RO Act, there has been compliance. This declaration is made in accordance with a resolution of the Directors.

On behalf of the Board

Kevin McDonald

John Gellel

Director Director Crows Nest, 31 August 2020

ABN 91 000 813 365

SDJ Audit Pty Ltd t/a SDJA ABN: 11 624 245 334 P: PO Box 324 SDJ Audit Pty Ltd t/a SDJA West Pennant Hills NSW 2125 ABN: 11 624 245 334 M: 0428 074 081 P: PO Box 324 E: simon@sdja.com.au West Pennant Hills NSW 2125 W: www.sdja.com.au M: 0428 074 081 E: simon@sdja.com.au W: www.sdja.com.au

Australian Security Industry Association Limited Auditorâ&#x20AC;&#x2122;s Independence Declaration under Section 307C of the Corporations Act 2001 to the Directors of Australian Security Industry Association Limited Australian Security Industry Association Limited For the Financial Year Ended 30 June 2020 Auditorâ&#x20AC;&#x2122;s Independence Declaration under Section 307C of the Corporations Act 2001 to the Directors of Australian Security Industry Association Limited IFor declare that, to the of my the Financial Yearbest Ended 30knowledge June 2020 and belief, during the year ended 30 June 2020, there have been: I declare that, to the best of my knowledge and belief, during the year ended 30 June 2020, there have no contraventions of the auditor independence requirements as set out in the Corporations (i) been: Act 2001 in relation to the audit; and (i) (ii)

no contraventions of the auditor independence requirements as set out in the Corporations no contravention of to anythe applicable code of professional conduct in relation to the audit. Act 2001 in relation audit; and

Yours (ii) sincerely, no contravention of any applicable code of professional conduct in relation to the audit. Yours sincerely, SDJA SDJA Simon Joyce Director Sydney, New South Wales Simon Joyce Director August Sydney,2020 New South Wales 31 August 2020 August 2020

Liability limited by a scheme approved under Professional Standards Legislation Liability limited by a scheme approved under Professional Standards Legislation

ASIAL 2020 Annual & Financial Report

Financial Report - For the year ended 30 June 2020

Report Required Under Subsection 255(2A) The Directors present the expenditure report as required under subsection 255(2A) on the Reporting Unit for the year ended 30 June 2020.

Categories of expenditures Remuneration and other employment-related costs and expenses - employees Advertising Operating costs Donations to political parties Legal costs

On behalf of the Board.

Kevin McDonald

John Gellel

Director Director Crows Nest, 31 August 2020

ABN 91 000 813 365

2020 $

2019 $

1,271,186

1,279,278

41,838

234,722

1,029,122

1,044,436

96,028

18,547

SDJ Audit Pty Ltd t/a SDJA ABN: 11 624 245 334 P: PO Box 324 West Pennant Hills NSW 2125 M: 0428 074 081 E: simon@sdja.com.au W: www.sdja.com.au

Independent Audit Report to the Members of Australian Security Industry Association Limited Australian Security Industry Association Limited Declaration under Section 307C of the Corporations Act 2001 to the Directors ForAuditor’s theIndependence Financial Year Ended 30 June 2020 of Australian Security Industry Association Limited Foron thethe Financial Ended 30 June 2020 Report AuditYear of the Financial Report

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2020, there have

Opinion been:

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. We have audited the financial report of Australian Security Industry Association (the Reporting which Information Other than the out Financial and Auditor’s noLimited contraventions of theUnit), auditor independence requirements as set in theReport Corporations (i) comprises the statement of financial position as at 30 Report Thereon Act 2001 in relation to the audit; and June 2020, the statement of profit or loss and other The directors are responsible for the other information. comprehensive income, statement of changes in equity The other information obtained at the date of this auditor’s (ii) of cash no contravention of ended any applicable and statement flows for the year 30 June code of professional conduct in relation to the audit. report is in the Directors’ Operating Report accompanying 2020, notes to the financial statements, including a the financial report. summary of significant Yours sincerely,accounting policies; the directors’ declaration and the subsection 255(2A) report. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of In our opinion, the accompanying financial report presents assurance conclusion thereon. fairly, in all material aspects, the financial position of SDJA Australian Security Industry Association Limited as at 30 In connection with our audit of the financial report, our June 2020, and its financial performance and its cash responsibility is to read the other information and, in doing flows for the year ended on that date in accordance with: so, consider whether the other information is materially inconsistent with the financial report or our knowledge a) theSimon Australian Accounting Standards; and Joyce obtained in the audit or otherwise appears to be materially b) theDirector Corporations Act 2001, including: misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other (i) giving a true and fair view of the entity’s financial Sydney, New South Wales information, we are required to report that fact. We have position as at 30 June 2020 and of its financial nothing to report in this regard. performance for the year ended; and

August 2020

(ii) complying with the Corporations Regulations 2001. c) 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). We 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 Directors for the Financial Report The Directors of the Reporting Unit are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards, the Corporations Act 2001, and the RO Act, and for such internal control as the Directors 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.

Basis for Opinion

In preparing the financial report, the Directors are We conducted our audit in accordance with Australian responsible for assessing the Reporting Unit’s ability to Auditing Standards. Our responsibilities under those continue as a going concern, disclosing, as applicable, standards are further described in the Auditor’s matters related to going concern and using the going Responsibilities for the Audit of the Financial Report concern basis of accounting unless the Directors either section of our report. We are independent of the Reporting intend to liquidate the Reporting Unit or to cease Unit in accordance with the ethical requirements of the operations, or have no realistic alternative but to do so. Accounting Professional and Ethical Standards Board’s Auditor’s Responsibilities for the Audit of the Financial APES 110 Code of Ethics for Professional Accountants Report (the Code) that are relevant to our auditbyofathe financial Liability limited scheme approved under Professional Standards Legislation Our objective is to obtain reasonable assurance about report in Australia. We have also fulfilled our other ethical whether the financial report as a whole is free from responsibilities in accordance with the Code. material misstatement, whether due to fraud or error,

ASIAL 2020 Annual & Financial Report

Financial Report - For the year ended 30 June 2020

SDJ Audit Pty Ltd t/a SDJA ABN: 11 624 245 334 P: PO Box 324 West Pennant Hills NSW 2125 M: 0428 074 081 E: simon@sdja.com.au W: www.sdja.com.au

and to issue an auditor’s report that includes our opinion. • Obtain sufficient appropriate audit evidence regarding Reasonable assurance is a high level of assurance, but is the financial information of the entities or business not a guarantee that an audit conducted in accordance with activities within the Reporting Unit to express an Australian Industry Association Limited Australian AuditingSecurity Standards will always detect a material opinion on the financial report. We are responsible Auditor’s Independence Declaration Section 307Cforofthe thedirection, Corporations Act 2001 to the Directors misstatement when it exists. Misstatements canunder arise from supervision and performance of the fraud or and are considered materialAssociation if, individuallyLimited Reporting Unit audit. We remain solely responsible for oferror Australian Security Industry or in the aggregate, they could expected our audit opinion. For the Financial Yearreasonably Ended 30 be June 2020 to influence the economic decisions of users taken on the We communicate with the Directors regarding, among basis of the financial report. other matters, the planned scope and timing of the audit

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2020, there have and significant audit findings, including any significant As partbeen: of an audit, in accordance with the Australian

deficiencies in internal control that we identify during our Auditing Standards, we exercise professional judgement audit. no contraventions of the auditor independence requirements as set out in the Corporations (i) professional and maintain scepticism throughout the audit. We also: Act 2001 in relation to the audit; and We declare that we are an audit firm where at least one member is a registered auditor and an auditor registered • Identify and assess the risks of material misstatement under the RO Act. (ii) no contravention of any applicable code of professional conduct in relation to the audit. of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those Registration number (as registered by the RO risks,Yours and obtain audit evidence that is sufficient and sincerely, Commissioner under the RO Act): AA2017/28. appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, SDJA misrepresentations, or the override of internal control. SDJA • 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 Simon Joyce Reporting Unit’s internal control. Director Simon Joyce • Evaluate the New appropriateness of accounting policies used Sydney, South Wales Director and the reasonableness of accounting estimates and related disclosures made by the Directors. 31 August 2020 August 2020 Sydney, New South Wales • 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. • Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the 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.

Liability limited by a scheme approved under Professional Standards Legislation

ABN 91 000 813 365

Statement of Profit or Loss and Other Comprehensive Income FOR THE YEAR ENDED 30 JUNE 2020 Notes

2020

2019

1,584,496

1,535,408

Revenue Membership subscriptions Capitation fees and other revenue from another reporting unit

Levies

Investment income

54,593

54,390

Rental revenue

Other operating revenue

Total revenue

63,342

62,162

752,621

962,342

2,455,052

2,614,302

65,550

Other income Grants or donations

Revenue from recovery of wages activity

Other non-operating income

22,547

26,920

Total other income

88,097

26,920

Total income

2,543,149

2,641,222

(309,132)

(314,838)

(1,271,186)

(1,279,278)

unit

Affiliation fees

Administration expenses

(676,654)

(821,898)

Grants or donations

(56)

(25,000)

Depreciation

(18,750)

(57,750)

Expenses Expenses directly related to operating activities Employee expenses Capitation fees and other expense to another reporting

Finance costs Legal costs

(96,028)

(18,547)

Audit fees

(36,292)

(32,936)

Share of net loss from associate Write-down and impairment of assets

(30,076)

(26,736)

(2,438,174)

(2,576,983)

104,975

64,239

Net losses from sale of assets Other expenses

Total expenses Surplus for the year

Other comprehensive income Items that will not be subsequently reclassified to profit or loss - Gain on revaluation of land and buildings Total comprehensive income for the year

104,975

64,239

ASIAL 2020 Annual & Financial Report

Financial Report - For the year ended 30 June 2020

Statement of Financial Position FOR THE YEAR ENDED 30 JUNE 2020 Notes

2020 $

2019 $

Cash and cash equivalents

2,983,866

2,726,638

Trade and other receivables

436,075

421,933

Other current assets

95,115

75,598

3,515,056

3,224,169

Assets Current

Current assets Non-current Land and buildings

3,506,384

3,525,134

Plant and equipment

14,300

3,506,384

3,539,434

7,021,440

6,763,603

Non-current assets Total assets Liabilities Current Trade payables

119,102

105,091

Other payables

1,777,379

1,713,133

Employee provisions

225,391

141,353

2,121,872

1,959,577

Current liabilities Non-current Other payables

88,535

83,870

Employee provisions

27,552

41,650

116,087

125,520

Total liabilities

2,237,959

2,085,097

Net assets

4,783,481

4,678,506

1,335,042

Retained earnings

3,448,439

3,343,464

Total equity

4,783,481

4,678,506

Non-current liabilities

Equity Property revaluation reserve

ABN 91 000 813 365

Statement of Changes in Equity FOR THE YEAR ENDED 30 JUNE 2020 Notes

Property revaluation reserve

Retained Earnings

Total Equity

1,335,042

3,279,225

4,614,267

Profit for the year

–

64,239

Other comprehensive income:

Total comprehensive income

64,239

Balance at 30 June 2019

1,335,042

3,343,464

4,678,506

Balance at 1 July 2019

1,335,042

3,343,464

4,678,506

Profit for the year

–

104,975

Other comprehensive income:

–

Total comprehensive income

104,975

1,335,042

3,448,439

4,783,481

Balance at 1 July 2018

Balance at 30 June 2020

ASIAL 2020 Annual & Financial Report

Financial Report - For the year ended 30 June 2020

Statement of Cash Flows FOR THE YEAR ENDED 30 JUNE 2020 Notes

2020 $

2019 $

2,433,686

2,533,236

50,000

–

(2,328,617)

(2,490,784)

OPERATING ACTIVITIES Cash received Receipts from members and others Grants received Receipt from other reporting units/controlled entities

10B

Cash used Payments to suppliers and employees Payment to other reporting units/controlled entities

10B

–

Net cash provided by operating activities

10A

155,069

42,452

Interest received

54,593

54,390

Rental income received

63,342

62,162

(15,776)

(5,045)

102,159

111,507

–

Other

–

Net cash provided by financing activities

–

257,228

153,959

2,726,638

2,572,679

2,983,866

2,726,638

INVESTING ACTIVITIES Cash received

Cash used Purchase of plant and equipment

Net cash provided by investing activities FINANCING ACTIVITIES Cash received Other Cash used

Net change in cash and cash equivalents Cash and cash equivalents at beginning of financial year Cash and cash equivalents at end of financial year

ABN 91 000 813 365

Notes to the Financial Statements Note 1 Summary of significant accounting policies

•

AASB 16 Leases and amending standards, which replaces AASB117 Leases. Application of this standard is discussed further below.

•

AASB 2017-6 Amendments to Australian Accounting Standards – Prepayment Features with Negative Compensation. The adoption of this accounting standard did not have a material impact on the reporting unit’s financial statements.

•

AASB 2017-7 Amendments to Australian Accounting Standards – Long-term Interests in Associates and Joint Ventures. The adoption of this accounting standard did not have a material impact on the reporting unit’s financial statements.

•

AASB 2018-1 Amendments to Australian Accounting Standards – Annual Improvements 2015–2017 Cycle. The adoption of this accounting standard did not have a material impact on the reporting unit’s financial statements.

•

AASB 2018-2 Amendments to Australian Accounting Standards – Plan Amendment, Curtailment or Settlement. The adoption of this accounting standard did not have a material impact on the reporting unit’s financial statements.

Impact on adoption of AASB 15 Revenue from Contracts with Customers (AASB 15) and AASB 1058 Income of Not-for-Profit Entities (AASB 1058)

AASB 15 Revenue from Contracts with Customers supersedes AASB 111 Construction Contracts, AASB 118 Revenue and related Interpretations and it applies, with limited exceptions, to all revenue arising from contracts with its customers.

AASB 15 establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue be recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. AASB 15 also includes implementation guidance to assist notfor-profit entities to determine whether particular transactions, or components thereof, are contracts with customers. If a transaction is outside the scope of AASB 15, the recognition and measurement of income arising from the transaction may instead be specified by another Standard, for example AASB 1058 Income of Not-for-Profit Entities.

AASB 1058 replaces the income recognition requirements in AASB 1004 Contributions that had previously applied to the reporting unit. AASB 1058 provides a more comprehensive model for accounting for income of not-for-profit entities and specifies that:

•

the timing of revenue or income recognition will depend on whether a performance obligation is identified or a liability is recognised;

1.1 Basis of preparation of the financial statements The financial statements are general purpose financial statements and have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period, the Corporations Act 2001 and the Fair Work (Registered Organisation) Act 2009. For the purpose of preparing the general purpose financial statements, the Australian Security Industry Association Limited is a not-for- profit entity. The financial statements, other than the Statement of Cash Flows, have been prepared on an accrual basis and in accordance with the historical cost, except for certain assets and liabilities measured at fair value, as explained in the accounting policies below. Historical cost is generally based on the fair values of the consideration given in exchange for assets. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars. 1.2 Comparative amounts When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. 1.3 Significant accounting judgements and estimates The following accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period: •

Land and buildings – refer to note 1.13

•

Employee provisions – refer to note 1.7

1.4 New Australian Accounting Standards

Adoption of New Australian Accounting Standard requirements Any new and revised standards that became effective for the first time in the current financial year have been adopted. The adoption of these amendments has not had a material impact on the entity. No accounting standard has been adopted earlier than the application date stated in the standard. The accounting policies adopted are consistent with those of the previous financial year except for the following standards and amendments, which have been adopted for the first time this financial year: •

AASB 15 Revenue from Contracts with Customers, which replaces AASB 118 Revenue, and AASB 1058 Income of Not-for-Profit-Entities, which replaces in the income recognition requirements of AASB 1004 Contributions. Application of this standard is discussed further below.

ASIAL 2020 Annual & Financial Report

Financial Report - For the year ended 30 June 2020

Notes to the Financial Statements •

not-for-profit lessees can elect to recognise assets, including leases provided at significantly less than fair value, at their fair value; and

•

all not-for-profit entities can elect to recognise volunteer services at fair value if the fair value of those services can be reliably measured.

Consequently, the comparative information presented has not been restated and continues to be reported under the previous standards on revenue and income recognition. In addition, the reporting unit has applied the practical expedient and elected to apply these standards retrospectively only to contracts and transactions that were not completed contracts at the date of initial application, i.e. as at 1 July 2019. The adoption of AASB 15 and AASB 1058 did not have a material impact on the reporting unit’s financial statements.

Impact on adoption of AASB 16 Leases

AASB 16 Leases supersedes AASB 117 Leases, Interpretation 4 Determining whether an Arrangement contains a Lease, Interpretation 115 Operating Leases—Incentives and Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to recognise most leases on the balance sheet.

The reporting unit adopted AASB 15 and AASB 1058 using the modified retrospective method of adoption, with the date of initial application of 1 July 2019. In accordance with the transition approach, the reporting unit recognised the cumulative effect (if any) of applying these new standards as an adjustment to opening retained earnings at the date of initial application, i.e. 1 July 2019.

Lessor accounting under AASB 16 is substantially unchanged from AASB 117. Lessors will continue to classify leases as either operating or finance leases using similar principles as in AASB 117. Therefore, AASB 16 does not have an impact for leases where the reporting unit is the lessor. The reporting unit has adopted AASB 16 using the modified retrospective method of transition, with the date of initial application of 1 July 2019. Under this method, the standard is applied retrospectively with the cumulative effect (if any) of initially applying the standard recognised at the date of initial application. The reporting unit elected to use the transition practical expedient to not reassess whether a contract is or contains a lease at 1 July 2019.

ABN 91 000 813 365

Instead, the reporting unit applied the standard only to contracts that were previously identified as leases applying AASB 117 and Interpretation 4 at the date of initial application.

Before the adoption of AASB 16, the reporting unit would have classified its lease contracts (as lessee) at the inception date as either a finance lease or an operating lease.

Upon adoption of AASB 16, the reporting unit applied a single recognition and measurement approach for all leases except for short-term leases and leases of low-value assets. The standard provides specific transition requirements and practical expedients, which have been applied by the reporting unit.

Leases previously classified as finance leases

The reporting unit did not have any leases previously classified as finance leases.

Leases previously accounted for as operating leases

The reporting unit did not have any leases previously classified as operating leases.

Reporting unit as a lessor

The reporting unit is not required to make any adjustments on transition to AASB 16 where it is a lessor.

Future Australian Accounting Standards Requirements

New standards, amendments to standards or interpretations that were issued prior to the sign-off date and are applicable to future reporting periods that are expected to have a future financial impact on reporting unit include:

AASB 2020-1 – Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-current

This Standard amends AASB 101 to clarify requirements for the presentation of liabilities in the statement of financial position as current or noncurrent. For example, the amendments clarify that a liability is classified as non-current if an entity has the right at the end of the reporting period to defer settlement of the liability for at least 12 months after the reporting period. This Standard applies to annual reporting periods beginning on or after 1 January 2022. Earlier application is permitted.

During the financial year ended 30 June 2020, the reporting unit performed a preliminary assessment of AASB 2020-1. The directors are currently assessing the impact such standards will have on the reporting unit and will not be early adopting AASB 2020-1 for the financial year ended 30 June 2020.

1.5 Revenue Revenue is measured at the fair value of the consideration received or receivable. Revenue from membership subscriptions is accounted for on an accrual basis and is recorded as revenue in the year to which it relates. Receivables for services, which have 30-day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable. Interest revenue is recognised on an accrual basis using the effective interest method. Rental revenue from operating leases is recognised on a straight-line basis over the term of the relevant lease. 1.6 Gains and losses

Sale of assets Gains and losses from disposal of assets are recognised when control of the asset has passed to the buyer. 1.7 Employee benefits A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave and termination benefits when it is probable that settlement will be required and they are capable of being measured reliably. Liabilities for short-term employee benefits (as defined in AASB 119 Employee Benefits) and termination benefits which are expected to be settled within twelve months of the end of reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability. Other long-term employee benefits which are expected to be settled beyond twelve months are measured as the present value of the estimated future cash outflows to be made by the reporting unit in respect of services provided by employees up to reporting date. Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions. Provision is made for separation and redundancy benefit payments. The reporting unit recognises a provision for termination as part of a broader restructuring when it has developed a detailed formal plan for the terminations and

has informed those employees affected that it will carry out the terminations. A provision for voluntary termination is recognised when the employee has accepted the offer of termination. 1.8 Cash Cash is recognised at its nominal amount. Cash and cash equivalents includes cash on hand, deposits held at call with bank, other short-term highly liquid investments with original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value and bank overdrafts. Bank overdrafts are shown within short- term borrowings in current liabilities on the statement of financial position.

1.9 Financial instruments Financial assets and financial liabilities are recognised when the reporting unit becomes a party to the contractual provisions of the instrument. 1.10 Financial assets Initial recognition and measurement Financial assets are classified, at initial recognition, and subsequently measured at amortised cost, fair value through other comprehensive income (OCI), or fair value through profit or loss. The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the reporting unit’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component, the reporting unit initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest’ (SPPI) on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. The reporting unit’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the reporting unit commits to purchase or sell the asset. Subsequent measurement For purposes of subsequent measurement, financial assets are classified in five categories:

ASIAL 2020 Annual & Financial Report

Financial Report - For the year ended 30 June 2020

Notes to the Financial Statements •

(Other) financial assets at amortised cost

•

(Other) financial assets at fair value through other comprehensive income

•

Investments in equity instruments designated at fair value through other comprehensive income

•

(Other) financial assets at fair value through profit or loss

•

(Other) financial assets designated at fair value through profit or loss

Upon initial recognition, the reporting unit can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under AASB132 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in profit or loss when the right of payment has been established, except when the reporting unit benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.

Financial assets at amortised cost The reporting unit measures financial assets at amortised cost if both of the following conditions are met: •

The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows and

•

The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding

Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.

The reporting unit elected to classify irrevocably its listed and non-listed equity investments under this category.

Financial assets at fair value through other comprehensive income The reporting unit measures debt instruments at fair value through OCI if both of the following conditions are met: •

The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling and

•

The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding

For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in profit or loss and computed in the same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value change recognised in OCI is recycled to profit or loss. The reporting unit’s debt instruments at fair value through OCI includes investments in quoted debt instruments included under other non-current financial assets.

ABN 91 000 813 365

Financial assets at fair value through profit or loss (including designated) Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortised cost or at fair value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch.

The reporting unit’s financial assets at amortised cost includes trade receivables and loans to related parties.

Investments in equity instruments designated at fair value through other comprehensive income

Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognised in profit or loss.

Derecognition A financial asset is derecognised when: •

The rights to receive cash flows from the asset have expired or

•

The reporting unit has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘passthrough’ arrangement; and either:

the reporting unit has transferred substantially all the risks and rewards of the asset, or

the reporting unit has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

â&#x20AC;˘

The reporting unit considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the reporting unit may also consider a financial asset to be in default when internal or external information indicates that the reporting unit is unlikely to receive the outstanding contractual amounts in full. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

When the reporting unit has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the reporting unit continues to recognise the transferred asset to the extent of its continuing involvement together with associated liability.

Offsetting Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

1.11 Financial Liabilities

All financial liabilities are recognised initially at fair value and, in the case of financial liabilities at amortised cost, net of directly attributable transaction costs.

Trade receivables For trade receivables that do not have a significant financing component, the reporting unit applies a simplified approach in calculating expected credit losses (ECLs) which requires lifetime expected credit losses to be recognised from initial recognition of the receivables.

The reporting unit financial liabilities include trade and other payables.

Subsequent measurement

Financial liabilities at fair value through profit or loss (including designated) Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

Therefore, the reporting unit does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The reporting unit has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

Gains or losses on liabilities held for trading are recognised in profit or loss. Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in AASB 9 are satisfied.

(ii) Debt instruments other than trade receivables For all debt instruments other than trade receivables and debt instruments not held at fair value through profit or loss, the reporting unit recognises an allowance for expected credit losses using the general approach. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the reporting unit expects to receive, discounted at an approximation of the original effective interest rate.

Where there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses from possible default events within the next 12-months (a 12-month ECL).

Financial liabilities at amortised cost After initial recognition, trade payables and interestbearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in profit or loss.

ECLs are recognised in two stages: â&#x20AC;˘

Initial recognition and measurement Financial liabilities are classified, at initial recognition, at amortised cost unless or at fair value through profit or loss.

Impairment (i)

Where there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the debt, irrespective of the timing of the default (a lifetime ECL).

Derecognition A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

ASIAL 2020 Annual & Financial Report

Financial Report - For the year ended 30 June 2020

Notes to the Financial Statements When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in profit or loss.

1.12 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. 1.13 Land, Buildings, Plant and Equipment

Asset Recognition Threshold Purchases of land, buildings, plant and equipment are recognised initially at cost in the Statement of Financial Position. The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located.

Revaluations—Land and Buildings Following initial recognition at cost, land and buildings are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Revaluations are performed with sufficient frequency such that the carrying amount of assets do not differ materially from those that would be determined using fair values as at the reporting date. Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the profit or loss except to the extent that they reverse a previous revaluation increment for that class. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset is restated to the revalued amount. 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.

ABN 91 000 813 365

Depreciation Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful life using, in all cases, the straight line method of depreciation. Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. The depreciation rates applying to each class of depreciable asset are:

Buildings – straight line basis Plant and equipment – diminishing value basis

2020

2019

2.5%

10-66%

Derecognition An item of land, buildings, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the profit and loss.

1.14 Impairment of non-financial assets All assets are assessed for impairment at the end of each reporting period to the extent that there is an impairment trigger. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount. The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the reporting unit were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

1.15 Taxation The entity is exempt from income tax under section 50.1 of the Income Tax Assessment Act 1997 however still has obligation for Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST). Revenues, expenses and assets are recognised net of GST except: • •

where the amount of GST incurred is not recoverable from the Australian Taxation Office; and

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: •

Level 1—Quoted (unadjusted) market prices in active markets for identical assets or liabilities

•

Level 2—Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

•

Level 3—Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

for receivables and payables.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables. Cash flows are included in the statement of cash flows on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the Australian Taxation Office is classified within operating cash flows. 1.16 Fair value measurement The reporting unit measures financial instruments, such as, financial asset as at fair value through the profit and loss, available for sale financial assets, and non-financial assets such as land and buildings and investment properties, at fair value at each balance sheet date. Also, fair values of financial instruments measured at amortised cost are disclosed in Note 13A. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: •

In the principal market for the asset or liability, or

•

In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the reporting unit. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the reporting unit determines whether transfers have occurred between Levels in the hierarchy by re- assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. External valuers are involved for valuation of significant assets, such as land and buildings and investment properties. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. For the purpose of fair value disclosures, the reporting unit has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy. 1.17 Acquisition of assets and or liabilities that do not constitute a business combination The entity did not acquire an asset or liability due to an amalgamation under Part 2 of Chapter 3 of the RO Act, a restructure of the branches of the organisation, a determination or revocation by the General Manager of the Fair Work Commission under subsections 245(1) or 249(1) of the RO Act. Note 2 Going concern The entity is not reliant on the agreed financial support of another reporting unit to continue on a going concern basis. The entity has not agreed to provide financial support to another reporting unit to ensure they can continue on a going concern basis.

The reporting unit uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

ASIAL 2020 Annual & Financial Report

Financial Report - For the year ended 30 June 2020

Notes to the Financial Statements Note 3 Income

2020 $

2019 $

3A. Capitation fees and other revenue from another reporting unit

Capitation fees

–

Other revenue from another reporting unit

–

54,593

54,390

54,593

54,390

63,342

62,162

63,342

62,162

Cabling providers

168,130

164,810

Events, exhibitions and sponsorships

286,790

259,270

Marketing and partnerships

103,043

336,126

Other operating revenue

194,658

202,136

752,621

962,342

65,550

–

65,550

–

Amounts recovered from employers in respect of wages

–

Interest received on recovered money

–

3B. Levies

Compulsory or voluntary levies or appeals

3C. Investment income

Interest on deposits

3D. Rental revenue

Properties

3E. Other operating revenue

3F. Grants or donations

Grants - Cash Flow Boost and Payroll Tax Relief Donations

3G. Revenue from recovery of wages activity

ABN 91 000 813 365

Note 4 Expenses

2020 $

2019 $

4A. Employee expenses Holders of office Holders of office – wages and salaries

192,275

203,431

Holders of office – superannuation

20,888

21,220

Holders of office – leave and other entitlements

27,600

19,933

Holders of office – separation and redundancies

–

Holders of office – other expenses

–

240,763

244,584

853,000

820,383

Employees – superannuation

79,623

84,975

Employees – leave and other entitlements

42,341

57,075

Employees – separation and redundancies

55,459

72,261

Subtotal employee expenses employees other than office holders

1,030,423

1,034,694

Total employee expenses

1,271,186

1,279,278

Capitation fees

–

Other expenses from another reporting unit

–

Total paid to employers for payroll deductions of membership subscriptions

–

Compulsory levies

–

Fees/allowances – meeting and conferences

–

7,395

12,911

120,000

122,091

41,838

234,722

5,604

94,523

99,806

Information communications technology

169,304

117,631

Other

243,594

229,133

676,654

821,898

Subtotal employee expenses holders of office Employees other than office holders Employees – wages and salaries

Employees – other expenses

4B. Capitation fees and other expense to another reporting unit

4C. Affiliation fees Affiliation fees/subscriptions

4D. Administration expenses

Conference and meeting expenses Contractors/consultants Marketing Property expenses Office expenses

ASIAL 2020 Annual & Financial Report

Financial Report - For the year ended 30 June 2020

Notes to the Financial Statements Note 4 Expenses (continued)

2020

2019 $

4E. Grants or donations

Grants: Total expensed that were $1,000 or less

–

Total expensed that exceeded $1,000

–

25,000

18,750

20,482

37,268

18,750

57,750

96,028

18,547

96,028

18,547

Land and buildings

–

Plant and equipment

–

Intangible assets

–

Other

–

Total write-down and impairment of assets

–

Donations: Total expensed that were $1,000 or less Total expensed that exceeded $1,000

4F. Depreciation

Depreciation Land buildings Plant and equipment Total depreciation 4G. Legal costs

Litigation Other legal costs 4H: Write-down and impairment of assets

Asset write-downs and impairments of:

4I. Other expenses

Penalties – via RO Act or the Fair Work Act 2009

ABN 91 000 813 365

2020 $

Note 5 Current Assets

2019 $

5A. Cash and cash equivalents

Cash at bank Short-term deposits

967,055

618,181

2,016,811

2,108,457

2,983,866

2,726,638

$7,247 (2019: $7,197) of the short-term bank deposits are bonds paid to the company by tenants. 2020 $

2019 $

5B. Trade and other receivables Current

Receivables from other reporting units

–

Less allowance for expected credit losses

–

Receivable from other reporting units

–

436,075

421,933

–

Receivable from non-reporting units

436,075

421,933

Total trade and other receivables (net)

436,075

421,933

At 1 July

10,000

Provision for expected credit losses

(10,000)

Write-off

–

At 30 June

–

95,115

75,598

95,115

75,598

Receivables from non-reporting units Less provision for doubtful debts

The movement in the allowance for expected credit losses of trade and other receivables is as follows:

5C. Other current assets

Prepayments

ASIAL 2020 Annual & Financial Report

Financial Report - For the year ended 30 June 2020

Notes to the Financial Statements Note 6 Non-current Assets

2020 $

2019 $

6A. Land and buildings

Freehold land and building at revaluation

3,550,000

(43,616)

(24,866)

3,506,384

3,525,134

3,545,616

Additions

Revaluations

Disposals

(18,750)

(20,482)

3,506,384

3,525,134

2020 $

2019 $

Freehold land and building accumulated depreciation

Reconciliation of opening and closing balances of land and buildings Balance as at start of year

Depreciation Balance as at end of year

The revalued land and buildings is the principal place of business at 41 Hume Street, Crows Nest, NSW, 2065. Management determined that these constitute one class of asset under AASB 13, based on the nature, characteristics and risks of the property. Fair value of the properties was determined by using market comparable method. This means that valuations performed by the valuer are based on active market prices, significantly adjusted for the difference in the nature, location or condition of the specific property. As at the date of revaluation, 20 June 2018, the propertyâ&#x20AC;&#x2122;s fair value is based on valuation performed by AON Valuation Services, an accredited independent valuer.

6B. Plant and equipment

Office equipment, furniture and fittings at cost

74,785

117,177

(74,785)

(102,877)

14,300

Balance as at start of year

14,300

73,259

Additions

15,776

5,045

Disposals

(30,076)

(26,736)

Depreciation

(37,268)

Balance as at end of year

14,300

Office equipment, furniture and fittings accumulated depreciation

Reconciliation of opening and closing balances of office equipment furniture and fittings

ABN 91 000 813 365

Note 7 Current Liabilities

2020 $

2019 $

7A. Trade payables

Trade creditors and accruals

119,102

105,091

–

119,102

105,091

Payable to employers for making payroll deductions of membership subscriptions

–

Legal costs

–

1,758,812

1,686,198

82,468

86,171

17,577

7,057

1,865,914

1,797,003

1,777,379

1,713,133

Payables to other reporting units Settlement is usually made within 30 days. 7B. Other payables

Prepayments received/unearned revenue Net GST payable Centre for compliance fund Other current payables Total other payables are expected to be settled in: No more than 12 months More than 12 months Total other payables

Note 8 Provisions

88,535

83,870

1,865,914

1,797,003

2020 $

2019 $

8A. Employee provisions Office Holders:

Annual leave

25,964

25,922

Long service leave

87,516

59,958

Separations and redundancies

–

Other

–

113,480

85,880

Annual leave

57,651

43,520

Long service leave

Subtotal employee provisions – office holders Employees other than office holders:

81,812

53,603

Separations and redundancies

–

Other

–

Subtotal employee provisions – employees other than office holders

139,463

97,123

Total employee provisions – office holders and employees

252,943

183,003

225,391

141,353

Current employee provisions Non current employee provisions

27,552

41,650

252,943

183,003

ASIAL 2020 Annual & Financial Report

Financial Report - For the year ended 30 June 2020

Notes to the Financial Statements Note 9 Equity

2020 $

2019 $

9A. Property revaluation reserve Balance as at start of year

1,335,042

Transferred to reserve

–

Transferred out of reserve

–

Other comprehensive income

–

1,335,042

Compulsory levy/voluntary contribution fund – if invested in assets

–

Other funds required by rules

–

Balance as at start of year

–

Transferred to reserve

–

Transferred out of reserve

–

Balance as at end of year

–

Balance as at end of year 9B. Equity - other specific disclosures - funds

9C. 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.

ABN 91 000 813 365

Note 10 Cash Flow

2020 $

2019 $

10A. Cash Flow Reconciliation Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement: Cash and cash equivalents as per:

Cash flow statement

2,983,866

2,726,638

Balance sheet

2,983,866

2,726,638

–

104,975

64,239

Depreciation/amortisation

18,750

57,750

Net losses from sale of assets

30,076

26,736

Interest received

(54,593)

(54,390)

Rental income

(63,342)

(62,162)

(Increase)/decrease in net receivables

(14,142)

46,314

(Increase)/decrease in other assets

(19,517)

1,519

Increase/(decrease) in trade payables

14,011

3,935

Increase/(decrease) in other payables

68,911

(41,208)

Increase/(decrease) in employee provisions

69,940

(281)

155,069

42,452

Cash inflows:

–

Total cash inflows

–

Cash outflows:

–

Total cash outflows

–

Difference Reconciliation of profit to net cash from operating activities:

Profit for the year Adjustments for non-cash/non-operating items:

Changes in assets/liabilities

Net cash provided by operating activities 10B. Cash Flow Information Receipts from/payments to other reporting units/controlled entities

ASIAL 2020 Annual & Financial Report

Financial Report - For the year ended 30 June 2020

Notes to the Financial Statements Note 11 Related Party Disclosures 11A. Related party transactions for the reporting period

The following table provides the total amount of transactions that have been entered into with related parties for the relevant year. 2020 $

2019 $

Amounts received from related parties includes the following:

–

Expenses paid to related parties include the following:

–

Amounts owed by related parties include the following:

–

Amounts owed to related parties include the following:

–

Loans from/to related parties include the following:

–

Assets transferred from/to related parties include the following:

–

496,227

491,964

8,748

40,823

–

504,975

532,787

Superannuation

47,142

46,737

Total post-employment benefits

47,142

46,737

Long-service leave

26,338

75,870

Total other long-term benefits

26,338

75,870

–

578,454

655,394

Loans to/from key management personnel

–

Other transactions with key management personnel

–

11B. Key Management Personnel Remuneration for the Reporting Period Short-term employee benefits

Salary (including annual leave taken) Annual leave accrued Performance bonus Total short-term employee benefits Post-employment benefits:

Other long-term benefits:

Termination benefits Total Note 11C: Transactions with key management personnel and their close family members

ABN 91 000 813 365

2020 $

Note 12 Financial Instruments

2019 $

12A. Categories of Financial Instruments Financial Assets

Cash and bank balances: Cash at bank

Fair value through profit or loss Held-to-maturity investments: Short term deposits Available-for-sale assets Loans and receivables: Trade receivables

Carrying amount of financial assets

967,055

618,181

967,055

618,181

–

2,016,811

2,108,457

2,016,811

2,108,457

–

436,075

421,933

436,075

421,933

3,419,941

3,148,571

Financial Liabilities

–

Other financial liabilities: Trade creditors and accruals GST payable Other current payables Employee provisions Total

119,102 82,468 7,057 252,943

105,091 86,171 7,057 183,003

461,570

381,322

Carrying amount of financial liabilities

461,570

381,322

54,593 344 54,937

54,390 (1,309) 53,081

–

– –

54,937

53,081

Fair value through profit or loss:

12B. Net Income and Expense from Financial Assets Held-to-maturity

Interest revenue Bank charges and merchant fees Net gain from held-to-maturity Loans and receivables Net gain from loans and receivables Available-for-sale Net gain from available-for-sale Fair value through profit and loss Held for trading Net gain from held for trading Designated as fair value through profit and loss Net gain from assets designated as fair value through profit and loss Net gain at fair value through profit and loss Net gain from financial assets

The net income from financial assets not at fair value from profit and loss is $54,937 (2019: $53,081).

ASIAL 2020 Annual & Financial Report

Financial Report - For the year ended 30 June 2020

Notes to the Financial Statements 2020 $

Note 12 Financial Instruments (continued)

2019 $

12C. Net Income and Expense from Financial Liabilities At amortised cost

–

Total designated as fair value through profit and loss

–

Net gain at fair value through profit and loss

–

Net gain from financial liabilities

–

Net gain financial liabilities – at amortised cost Fair value through profit and loss Held for trading Total held for trading Designated as fair value through profit and loss:

The net income from financial liabilities not at fair value from profit and loss is $nil (2019: $nil). 12D. Credit Risk

The following table illustrates the entity’s gross exposure to credit risk, excluding any collateral or credit enhancements. 2020 $

2019 $

Financial assets

Held-to-maturity investments

2,016,811

2,108,457

436,075

421,933

2,452,886

2,530,390

Trade payables

119,102

105,091

GST payable

82,468

86,171

7,057

Loans and receivables Financial liabilities

Other current payables Employee provisions

252,943

183,003

461,570

381,322

In relation to the entity’s gross credit risk the following collateral is held: nil. Credit quality of financial instruments not past due or individually determined as impaired.

No financial asset, individually, was past its due date and there were no other recoverability issues identified. Therefore, no financial asset was assessed as being impaired. 12E. Liquidity Risk The entity does not have any financial liabilities that are subject to contractual maturities. 12F. Market Risk Interest rate risk The entity earns interest on the cash transaction accounts as well as short-term deposits. Interest rates on the transactions accounts are minimal, while the interest rate on short-term

ABN 91 000 813 365

deposits are fixed at the beginning of the term. The entity earned an average of 1.69% on short-term deposit accounts held during the year. Accounts receivable and accounts payable do not attract any interest. Price risk The entity does not hold any financial assets nor liabilities that are sensitive to price risk. 12G. Asset pledged/or held as collateral The entity does not have any assets pledged nor held as collateral. 12H. Changes in liabilities arising from financing activities The entity does not have any liabilities arising from financing activities.

13 Fair Value Measurement 13A. Financial Assets and Liabilities Management of the reporting unit assessed that cash, trade receivables, trade payables, and other current liabilities approximate their carrying amounts largely due to the short term maturities of these instruments. See Note 12A for a list of these financial assets and liabilities. 13B. Financial and Non-financial Assets and Liabilities Fair Value Hierarchy The following tables provide an analysis of financial and non-financial assets and liabilities that are measured at fair value, by fair value hierarchy.

Fair value hierarchy – 30 June 2020

Date of valuation

Level 1 $

Level 2 $

Level 3 $

30-Jun-20

–

3,506,384

–

3,506,384

–

Date of valuation

Level 1 $

Level 2 $

Level 3 $

30-Jun-20

–

3,525,134

–

3,525,134

–

Assets measured at fair value

Land and buildings

Liabilities measured at fair value

30-Jun-20

Total

Fair value hierarchy – 30 June 2019 Assets measured at fair value

Land and buildings Total Liabilities measured at fair value Total

30-Jun-20

ASIAL 2020 Annual & Financial Report

Financial Report - For the year ended 30 June 2020

Notes to the Financial Statements 2020 $

Note 14 Remuneration of auditors

2019 $

Value of the services provided

Financial statement audit services Other services Total remuneration of auditors

25,000

11,292

6,292

36,292

32,936

No other services were provided by the auditors of the financial statements.

Note 15 Contingent Liabilities, Assets and Commitments Note 15A: Commitments and contingencies Operating lease commitmentsâ&#x20AC;&#x201D;as lessor The reporting unit leases out two commercial office spaces.The lease agreements are as follows:

- Part of Ground Floor, 41 Hume Street, Crows Nest, NSW, 2065. The 1-year lease commenced on 15 July 2019, with an option for an additional year. Fixed reviews of 4% annually on the anniversary date of the lease during the lease term and option period. - Part of Level 1, 41 Hume Street, Crows Nest, NSW, 2065. The 1-year lease commenced on 22 October 2019, with an option for an additional year. Fixed reviews of 4% annually on the anniversary date of the lease during the lease term and option period. Future minimum rentals receivable under non-cancellable operating leases as at 30 June are: 2020

2019

Within one year

65,925

35,138

After one year but not more than two years

30,556

65,925

After two years but not more than three years

30,556

After three years but not more than four years

After four years but not more than five years

After five years

96,481

131,619

The reporting unit had no other commitments nor contingent assets/liabilities for the year ended 30 June 2020.

Note 16 Administration of financial affairs by a third party The reporting unit did not have another entity administer the financial affairs of the reporting unit for the year ended 30 June 2020 (2019: None).

Note 17 Payments to former related parties The reporting unit did not make a payment to a former related party of the reporting unit during the year ended 30 June 2020 (2019: None).

Note 18 Events after the reporting period There were no events that occurred after 30 June 2020, and/ or prior to the signing of the financial statements, that would affect the ongoing structure and financial activities of the reporting unit.

Note 19 Section 272 Fair Work (Registered Organisations) Act 2009 In accordance with the requirements of the Fair Work (Registered Organisations) Act 2009, the attention of members is drawn to the provisions of subsections (1) to (3) of section 272, which reads as follows: Information to be provided to members or Commissioner: (1) A member of a reporting unit, or the Commissioner, 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).

ABN 91 000 813 365

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.

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 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 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.

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.

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

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.

13 Members shall maintain appropriate and accurate

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

14 Where an alleged breach of this Code is

6 7

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.

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. records in accordance with all relevant statutory requirements.

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.

ASIAL 2020 Annual & Financial Report

ASIAL The peak body for security professionals

Security Industry House, 41 Hume Street, Crows Nest NSW 2065 1300 127 425 | security@asial.com.au | www.asial.com.au Supporting members, promoting standards and safeguarding public interests.