ASIAL Annual Financial Report 2015

2015 ANNUAL & FINANCIAL REPORT

The peak body for security professionals

ABOUT ASIAL

VISION

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

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

www.asial.com.au

MISSION To support our members, promote standards and safeguard public interests.

ANNUAL REPORT 2014-15

CONTENTS Statement of comprehensive income

19

Statement of financial position

20

16

Statement of changes in equity

20

Directors’ declaration

18

Statement of cash flows

21

Independent audit report to members

18

Notes to the finanacial statements

21

President’s report

2

Secretary’s report

3

Operating report

4

Director profiles

14

Directors’ operating report

BOARD OF DIRECTORS President

Kevin McDonald

Vice President Directors

Chris Luhrmann Rod Anderson, Brian Foster, John Gellel, Mike McKinnon, Neil McLean, Damian Waters (part), Ged Byrnes (part), Antony Elliott (part).

National Reference Group Past President Auditor Solicitor/Attorney Consultants Monitoring Centre Certification Inspection Industrial Relations

John Fleming, Janine Hill, Chevelle Millhouse, Darryl Milling, Suzette Po-Williams, Robert Seth (in addition to the Board) Ged Byrnes Foster Raffan Goldrick Farrell Mullan Robin Burrows, ATSC Chris Delaney, Chris Delaney & Associates

Compliance and Regulatory Affairs

Peter Johnson, Corporate Application

Special Consultant

Damien Smith, Enterprise Care Pty Ltd

SECRETARIAT Chief Executive Officer and Secretary

Bryan de Caires

General Manager

John Fleming

Manager, Finance and Administration

Fiona Rounds

Manager, Marketing and Communications

Kirsty Jagger

Marketing and Communications Officer Manager, Membership Senior Membership Officer Database and Website Officer Member Liaison Officer

Erika Bates Sylva Pechackova Alexandra Firth Nadine Keady Tania Laird

Membership Coordinator

Leonie Fraser

Membership Coordinator

Hayley Priestnall

Membership and Cabling Coordinator Membership and Accounts Coordinator

ASIAL 2015 Annual & Financial Report

Jane Moujali Ivy Xu

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ASIAL

PRESIDENT’S REPORT It is my great pleasure to present this year’s ASIAL President’s Report. It has been another successful year for the Association and similarly for the industry, which continues to see growth in the number of providers, employees and revenue.

ASIAL

IS REGULARLY THE FIRST (AND ONLY) SECURITY ASSOCIATION CONTACTED FOR GUIDANCE AND INPUT

This growth has been fuelled, in part, by the take up of new technology solutions and the outsourcing of core services. The alarm monitoring landscape continues to evolve as the NBN rollout gains momentum; There is a growing focus on GPRS and IP solutions; Selfmonitoring solutions are becoming popular; And Telstra entering the market will make the coming years an exciting time for the electronics sector.

ASIAL’s marketing team have done a great job this year in growing our social media presence, with our Facebook, LinkedIn and Twitter accounts exceeding targeted expectations. And the “Little Red Riding Hood” consumer awareness campaign, developed and launched during the year, commenced its national rollout in July 2015.

Unfortunately, the failure of some manpower security providers to provide minimum pay and conditions continues to be of concern. These companies, whilst not representative of the majority, have a detrimental impact on our industry.

20 years +

SERVED BY PAST PRESIDENTS ELLIOTT AND BYRNES – WE THANK THEM

“Sham contracting” and “phoenixing” appear to be on the rise, driving down pricing to unsustainable levels, which has a marked effect on competitiveness and professionalism in the industry. There are NO winners. ASIAL continues to work closely with the Fair Work Ombudsman (FWO) to identify those companies, educate and inform members and clients alike. During the year the FWO was active in taking action against 17 security companies. The numbers in isolation do not sound significant, but even one is one too many.

Planning was undertaken during the year for the second phase of the FWO Local Government Procurement Initiative, commencing in August 2015, supported by ASIAL and United Voice. Procurement officers and security providers are now “on notice”, as FWO prepares to audit local councils to ensure compliance with their legal obligations.

Membership of ASIAL continues to be a mark of distinction. To ensure this is upheld, members are required to adhere to ASIAL’s Professional Code of Conduct. Failure to do so comes with consequences.

Over the past year, 246 members were expelled.

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ASIAL continues to actively engage with regulators, government, the media and key stakeholders in providing a respected voice for members and the industry as a whole on a broad range of issues.

We are regularly the first (and only) security association contacted for guidance and input.

ASIAL’s professionalism and measured approach means that our input is actively sought and valued.

This is a key strength of the Association.

Recently ASIAL responded to the Productivity Commission’s comprehensive Report into Mutual Recognition Schemes. The report acknowledged ASIAL’s concerns about how current arrangements are failing the industry and our recommendations for the future.

Likewise, when planning for the security arrangements for the 2018 Gold Coast Commonwealth Games commenced, ASIAL was approached to provide input and advice.

People listen to what we have to say.

In October 2014 board elections were held. Past Presidents Antony Elliott and Ged Byrnes both stood down after more than 20 years each of dedication to the Association. On behalf of all Board Members, I would like to acknowledge their contribution to the growth and success of our Association.

As a Registered Employer Organisation, ASIAL’s Board elections were conducted by the Australian Electoral Commission. Brian Foster, John Gellel, Chris Luhrmann, Rod Anderson, Neil McLean, Mike McKinnon, Damian Waters (since resigned) along with myself were elected to the Board.

I would like to take this opportunity to thank my fellow Board Members, State Convenors and Special Interest Group members, who all generously give their time and expertise for the advancement of the industry.

I would also like to thank the ASIAL Secretariat team and our expert consultants who keep the Association moving in the right direction, and provide advice and assistance to members in times of need.

Finally, thank you to you, our members. Without your ongoing support we would not be where we are today.

Kevin McDonald President, ASIAL

ASIAL 2015 Annual & Financial Report

ASIAL

SECRETARY’S REPORT I am pleased to report that the Association delivered a strong performance for the year, posting a surplus of $118,518.

Whilst the total number of members fell by five per cent, overall member subscription and acquisition revenue was much stronger than forecast. Likewise, revenue from cabling registration, certification (including Security Technician Certification and monitoring centres) and interest/rental also performed well.

Total income was lower than the previous year, partly due to the annual Security Exhibition & Conference being held twice during 2013-2014 and not at all during 2014-2015. However, prudent management of the Association’s expenses (expenses were down almost four per cent from the previous year) ensured that a small surplus was posted for the year.

The Association’s commitment to continuous improvement was highlighted by the investment in upgrading the member Customer Relationship Management (CRM) system. The successful implementation in February of the new CRM system has delivered improvements in operational efficiency and, importantly, an improved overall experience for members.

The ongoing promotion of ASIAL members has continued, with $94,655 spent on a range of consumer awareness activities. The balance of revenue generated through the member marketing levy will be invested in further consumer awareness initiatives over the coming year.

The three yearly valuation of Security Industry House resulted in the valuation of the building increasing to $2,500,000.

As a result of this, accumulated reserves increased to $3,350,955 providing an excellent platform for the Association to invest in a range of exciting new benefits and services for members, such as the ASIAL e-learning platform which will be launched in late 2015.

Finally, I would like to acknowledge the ASIAL Board, State Convenors and staff for their support and commitment over the past year.

Bryan de Caires Chief Executive Officer & Secretary

5-Year Performance Summary (2011-2015) $3,500,000 $3,000,000 $2,500,000 Total Income

$2,000,000

Total Expenses

$1,500,000

Profit/Loss

$1,000,000

Equity

$500,000 $0 2011

ASIAL 2015 Annual & Financial Report

2012

2013

2014

2015

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OPERATING REPORT

MEMBERSHIP THE ASIAL SECRETARIAT TEAM

NEW

272

NEW ASIAL MEMBERS IN 2014-2015

180K+ PHONE CALLS AND EMAILS HANDLED IN 2014-2015

9%

INCREASE IN RECOGNITION PROGRAM PARTICIPATION

A strong and engaged member base is the lifeblood of ASIAL. Without the support of our members we would not be able to represent the interests of the industry nor provide the wide range of benefits and services we do.

The Association has 2,756 members (2,409 Corporate; 183 Associate; 156 Individual; three Affiliate and five life members), down 156 from the previous year. ASIAL continues to receive strong support from members who value the professional advice and support we provide.

MEMBER COMMUNICATION ASIAL’s dedicated team process applications, renewals, and respond to the telephone and email enquiries of current and prospective members. Often phone and email enquiries relate to compliance, HR/ IR, technical issues, events and/or accessing products and services.

In 2014-15, the Secretariat attended to more than: •• 15,756 inbound calls •• 95,804 incoming emails And initiated more than: •• 18,893 outbound calls •• 49,905 outbound emails As a member focused organisation, we strive to provide members with the highest level of customer

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service. We continually look for new ways to improve productivity and provide a better overall customer experience. One example of this was the introduction of wireless telephone headsets for the membership team, enabling them to respond to member needs more promptly.

WEBSITE AND DATABASE UPGRADE During the course of the year the Association consolidated its processes and IT infrastructure to deliver a more streamlined and efficient system.

As part of the consolidation process, a major project was the move to full website integration with our customer database. The result has been an improvement in operational efficiency and, importantly, an improved overall experience for members who can now login and access: •• ASIAL Community (Special Interest Group and State Reference Group): A private area where members can connect with ASIAL and each other without external distractions.

•• Online Membership Account: Members now have the option to self-service; manage their membership(s), access invoices, print membership certificates, renew and update details.

•• Member Resources: Depending on ASIAL membership type, members have access to a range of online resources.

ASIAL 2015 Annual & Financial Report

TANIA LAIRD & PETER JOHNSON

RECOGNITION PROGRAM The member recognition program continues to go from strength to strength, with a nine per cent increase in the participation rate. There are now almost 700 long standing members, including 14 Platinum Members, 86 Gold Members, 312 Silver Members and 279 Bronze Members.

SAFE WORKPLACE MANAGEMENT SYSTEM In October, ASIAL launched its Safe Workplace Management System; tailored to meet the needs of security companies of all size. The system provides members with a cost effective means of managing their health and safety obligations.

COMPLAINTS The Association continues to actively manage complaints and disputes in accordance with its complaints and Dispute Resolution Policy and Procedures. In 2014-15 there were 18 complaints registered with ASIAL as compared with 11 in 2013-14.

Of these five related to manpower (issues related to manhandling and inaction by guards) and five related to electronics (issues related to the transfer of monitored lines between monitoring

ASIAL 2015 Annual & Financial Report

CHRIS DELANEY

centres involving the failure in providing access codes to facilitate the transfer of those lines as well as poor equipment performance and goods not received). Of the remaining complaints, four related to IR for incorrect payment of wages and breach of contract, two to defamatory advertising, one non payment of invoices and one to training.

In handling the complaints received, it is clear that with the application of sound business practices and better communication with clients many of these issues could have been avoided.

Of the majority of complaints received, outcomes were achieved through mutual agreement.

Participation in the ASIAL Member Recognition Program has risen by 9%.

The program now recognises14 Platinum Members, 86 Gold Members, 312 Silver Members and 279 Bronze Members.

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OPERATING REPORT

MARKETING, EVENTS AND COMMUNICATIONS ASIAL’s marketing and communications team has primarily focused its efforts on increasing engagement with members through new and longstanding communications channels.

1,000+ NEW TWITTER AND LINKEDIN FOLLOWERS

MEDIA RELATIONS ASIAL remains the ‘go to’ organisation for comment on industry related matters. In 2014-15, ASIAL secured 21 media mentions. This included mentions in the Daily Telegraph, Perth Now, Australian Financial Review and on A Current Affair. The Association also contributed articles to a number of trade publications, including Australian GovLink and Electrical Solutions.

MEMBER COMMUNICATIONS

75K

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ASIAL’s monthly blog has also been opened up to guest bloggers. So far, seven guest blogs have been published. These blogs are shared in our e-news, as well as on LinkedIn and Twitter.

M

IT

Members are able to submit media releases and announcements for posting on the ASIAL website and sharing through Twitter, a benefit increasingly being used by members.

AD

ADMIT 1

UNIQUE VISITS TO THE ASIAL WEBSITE IN 2014-15

Members continue to be provided with regular industry news and regulatory updates through our fortnightly e-newsletter, First Alert, and Member Bulletins.

61.5% INCREASE IN EVENT ATTENDANCE IN 2014-15

WEBSITE ASIAL’s upgraded website was launched in March 2013 and provides improved functionality for members. In 2014-15, the number of unique website visitors increased by 5.2 per cent.

SECURITY INSIDER Security Insider turned 21 during the year and celebrated with special coverage in the October/ November edition. The Association engaged the Audited Media Association of Australia (AMAA – an independent media audit service) to audit the industry journal for the period of April 2014 to March 2015. AMAA issued ASIAL with a CAB Certificate

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confirming the average number of copies printed and delivered for distribution within the 12-month period.

The average national net distribution is 3,321.

SOCIAL MEDIA ASIAL’s social media following continues to evolve and grow. On Twitter and LinkedIn we have amassed 3,045 followers, up from 2,000 in the previous year.

YouTube views have also risen, up 3.5 per cent.

When ASIAL’s Facebook page was launched in November 2014, the aim was to attract 600 followers

by December 2015. By 30 June 2015 this target had already been surpassed with 860 followers amassed.

CONSUMER AWARENESS CAMPAIGN In 2014, we developed two colourful promotional videos. The consumer awareness video reappropriated the story of Little Red Riding Hood to raise awareness of the importance of using a licenced security professional who is a member of ASIAL, whilst the industry focussed video explained the benefits and services provided by the Association. The videos have generated hundreds of views on YouTube.

The Red Riding Hood video will form a central element of further consumer awareness campaigns.

EVENTS Events continue to be core to membership engagement and in 2014-15, with a strong rise in event attendance over the year, driven partly by the introduction of webinars.

WEBINARS We hosted 12 webinars and a received a total of 228 registrations. Webinars have allowed us to engage with members who, either due to time commitments or location, find it a more convenient way to keep in touch on issues of importance to their business.

BREAKFAST BRIEFINGS We hosted 21 breakfasts attended by 767 people.

The strong attendance numbers reflect that the ‘old fashioned’ way of networking face-to-face is still valued by many of our members.

ASIAL 2015 Annual & Financial Report

CONSUMER AWARENESS CAMPAIGN

2014 AUSTRALIAN SECURITY INDUSTRY AWARDS FOR EXCELLENCE

MEDIA RELATIONS

2014 AUSTRALIAN SECURITY INDUSTRY AWARDS FOR EXCELLENCE Winners of the 19th Annual Australian Security Industry Awards for Excellence were celebrated at The Ivy in October 2014. Organised by ASIAL, the awards provide an opportunity to recognise and encourage excellence within the security industry.

In May 2015, ASIAL announced that the 2015 Australian Security Industry Awards for Excellence would take on a global perspective with the launch of the Outstanding Security Performance Awards in Australia, following the signing of an agreement with the World Excellence Awards.

ASIAL 2015 Annual & Financial Report

ASIAL’s social media following continues to evolve and grow. On Twitter and LinkedIn we have amassed 3,045 followers, up from 2,000 in the previous year; exceeding targeted expectations.

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OPERATING REPORT

ELECTRONICS ASIAL continues to interact with government, industry and members in addressing a wide range of issues facing the electronics security sector, through involvement in a number of influential forums.

ASIAL

ENGAGES WITH GOVERNMENT

5,702

TOTAL CABLERS REGISTERED WITH ASIAL

NATIONAL BROADBAND NETWORK (NBN) In 2014-15 the direction of the NBN changed; moving to Multi Technology Mix (MTM), which will reduce costs and installation times for deployment of the NBN. This major change in direction will eliminate all NBN equipment from the customer’s premises. NBN will only be offering a VOIP solution and there will be no battery backup or UNI-V ports.

It is vital that stakeholders in the migration of back to base security and medical alarms be informed about the NBN developments and communicate with their customers to offer solutions that maintain the security systems integrity. ASIAL continues to engage with NBN and filter this information out to members.

With all of the changes happening in the telephony environment, ASIAL continues to advocate that security installation work must be carried out by a licenced security technician that holds an Australian Communications and Media Authority (ACMA) cablers registration card.

ASIAL CABLING REGISTRY UPDATE On the 1 July 2014 the Cabling Provider Rules changed:

4,881

CABLERS OPTED FOR ‘OPEN’ REGISTRATION DURING 2014-15

•• Requiring any cabler performing specialised cabling work, which is aerial, underground, optical fibre, structured, coaxial or broadband, to hold the necessary competencies relevant to perform that cabling work. These qualifications have been deemed essential for the development of a skilled labour force that can work on newer IP technologies and the NBN.

they should go about gaining competencies to continue to legally work in the industry. Registered Training Organisations have responded to the changes, offering courses to either upgrade from Restricted to Open Registration and also gain specialised cabling competencies.

ASIAL, other cabling registrars and the International Copper Association of Australia have worked together to establish a website that provides guidance for consumers and industry regarding the rollout of the NBN, www.registeredcablers.com.au.

ASIAL’s introduction of an online application and renewal process for cabling registrations has provided cablers with an easy, convenient way of registering and uploading the required information.

During the 2014/2015 financial year cabling registrations grew by 166 to a total of 5,702 at 30 June 2015.The majority (4,881) opted to gain ‘Open’ registration as opposed to the limited ‘Restricted’ cabling registration (805), with the remaining balance (16) being for ‘Lift’ work.

SECURITY TECHNICIAN CERTIFICATION ASIAL continues to support the development and professional growth of technicians through the STC Program; an ASIAL initiative to address a skills shortage for technicians. As well as providing a career pathway for security technicians, the STC Program is also an initiative to attract and retain skilled workers capable of meeting the future needs of the industry.

•• Requiring proof of supervised on-thejob experience; 360 hours for open registrations and 80 hours for restricted registrations. This proof cannot include classroom cabling activities.

Because of these key changes, ASIAL’s cabling registry has been kept busy responding to cablers updating their competencies and questioning how

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ASIAL 2015 Annual & Financial Report

NATIONAL ALARM RESPONSE PROTOCOL UPDATE We have continued to engage with the National Emergency Communications Working Group (which includes communications representatives from Police, Fire and Ambulance services across Australian and New Zealand) to finalise development of a National Alarm Response Protocol. ASIAL believes a standardised National Alarm Response Protocol will provide opportunity for emergency service operators and the security industry to work together for the benefit of all stakeholders.

MONITORING CENTRE GRADING The Association continues to operate the highly respected Monitoring Centre Grading scheme in accordance with Australian Standard 2201.2:2004 (Intruder Alarm Systems – Monitoring Centres). The ASIAL scheme seeks to provide customers with the reassurance that the standards applied at a monitoring centre are independently audited on a regular basis. All applications can now be made through ASIAL’s updated website.

ASIAL 2015 Annual & Financial Report

During the year the Association commenced discussion and development of a redundant centre certification scheme. With the growth in use of data centres and cloud-based solutions has come a commensurate growth in the importance of data sovereignty and business continuity planning.

In the event of a catastrophic failure, ASIAL’s Redundant Centre Certification scheme is intended to ensure a monitoring centre’s critical business functions will continue to operate or will be recovered to an operational state within a reasonable period.

ASIAL believes a standardised national alarm response protocol will provide opportunity for emergency service operators and the security industry to work together for the benefit of all stakeholders.

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OPERATING REPORT

MANPOWER

ASIAL ENGAGES WITH STATE REGULATORS

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PARTICIPANTS IN MONITORING CENTRE GRADING PROGRAM

84%

OF ASIAL MEMBERS ARE SMEs

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We continue to provide support and advice to members in dealing with the complexity of jurisdictional licensing, compliance requirements, business demands, areas of dispute and assistance in responding to Regulator’s requests. ASIAL’s Manpower Special Interest Group (SIG) continues to address these and other issues, and provide opportunity for members to raise issues of concern.

MUTUAL RECOGNITION Jurisdictional licensing continued to be the ‘bugbear’ for many organisations working cross borders, particularly those located at border points. Whilst individuals have the option of mutual recognition to work interstate, mutual recognition does not exist for businesses. The mutual recognition process for an individual continues to be abused and a concern for Regulators. Mutual recognition was designed for individuals holding a licence in one jurisdiction and who are seeking to apply for a similar licence in another jurisdiction. The time for a uniform and consistent national system of licensing is long overdue.

ASIAL has made a submission to the Productivity Commission issues paper on mutual recognition with a recommendation that mutual recognition should be expanded to include businesses. This would make it easier for security organisations to achieve multi jurisdictional licences with reduced paperwork.

ASIAL is confident that the submission was well received and we look forward to a positive outcome although a national licence would be a more suitable outcome.

ASIAL made a submission to the Productivity Commission issues paper on mutual recognition with a recommendation that it should be expanded to include businesses.

INTERSTATE MONITORING CENTRES Following two years of submissions, discussions and lobbying, ASIAL was pleased that in December 2014 the Queensland Office of Fair Trading amended legislation reducing red tape for interstate alarm monitoring centres. These changes exempt interstate monitoring centres and their staff from the need to hold a Queensland security firm licence and an individual licence when monitoring Queensland premises.

SECURITY TRAINING The review of security training by the Australian Skills Quality Authority (ASQA) confirmed the push for ‘volume of learning’ to be a primary consideration in reviewing the quality of training, placing a demand on the duration of the training provided at different certificate levels. An example is that a Certificate II may need a minimum of 600 hours, with a Certificate III needing a minimum of 1,200 hours of demonstrated ‘volume of learning’.

ASIAL has made known its concerns over implementation of the ‘volume of learning’ principle and the detrimental impact it may have on attracting suitable people to the security industry. The principle is also in conflict with several jurisdictional Regulators who have determined the required training hours to achieve a Certificate suitable for security licensing.

ASIAL 2015 Annual & Financial Report

OPERATING REPORT

INDUSTRIAL RELATIONS As a registered organisation of employers, ASIAL represents both the security industry and individual members in the Fair Work Commission (FWC), with the Fair Work Ombudsman (FWO), Unions and Regulators.

2014-15 provided us with many challenges.

While dealing with the day-to-day problems important to members, we have also been heavily involved in matters of importance for the industry as a whole.

ROAD SAFETY REMUNERATION TRIBUNAL (RSRT) – CIT INQUIRY On 27 April 2015 the President of the Tribunal held a hearing to determine how to proceed with converting Draft Orders in to a Road Safety Remuneration Order. The Draft Order in its current form covers the following matters: •• Application and operation •• Dispute resolution and adverse conduct protection •• Contracts, including pre-employment and pre-engagement checks •• Payment related matters, including payments to contractor drivers and personal protective equipment

SAFE DRIVING PLANS, RISK ASSESSMENTS, TRAINING AND DRUG AND ALCOHOL POLICIES On 29 April 2015 the President of the RSRT issued a statement giving the parties a reasonable opportunity to make written submissions to the RSRT for its consideration in relation to the draft order, and to make comments to the RSRT on those written submissions, including witness statements and other evidence in support, by 22 July 2015 in preparation for hearings later in 2015.

TRANSPORT CASH IN TRANSIT AWARD 2010 4-YEARLY REVIEW FWC has commenced receiving submissions on the 4 yearly review of this award. Submissions have been received from the TWU, ASIAL, Linfox Armaguard, AiG and Business SA. Comment has also been canvassed on the “Exposure Draft” relating to this award.

ASIAL 2015 Annual & Financial Report

ASIAL has filed submissions in reply to the TWU proposed variations and submissions on the “Exposure Draft”. ASIAL has also requested that the FWC be mindful that there is concurrently an inquiry in to sectors in the Cash in Transit industry within the meaning of the Transport (Cash in Transit) Award 2010 and that there should be consistency between the CIT Award and any RSRT Orders.

SECURITY SERVICES INDUSTRY AWARD 2010 4 YEAR REVIEW The 4 year review is continuing with hearings scheduled for a Full Bench of the Fair Work Commission later in 2015 to deal with contentious matters. Some minor variations have already been determined.

ASIAL, FAIR WORK OMBUDSMAN (FWO) AND THE AUSTRALIAN TAXATION OFFICE (ATO) ASIAL, FWO and the ATO have commenced dialogue aimed at dealing with problems associated with two issues adversely affecting compliance in the security industry: phoenixing and sham contracting (misuse of ABN holders).

LOCAL GOVERNMENT PROCUREMENT INITIATIVE FWO will investigate targeted Local Government bodies in capital cities and regional centres across each of the states throughout Australia in 201516. This part of the campaign will commence with interviews with the CEOs, senior managers and procurement officials and work down the supply chain.

ASIAL, FWO and the ATO have commenced dialogue aimed at dealing with two issues adversely affecting compliance in the security industry: phoenixing and sham contracting.

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OPERATING REPORT

REGULATORY AFFAIRS

ASIAL

CONTINUES TO ENGAGE WITH REGULATORY AUTHORITIES

ASIAL communicated and met regularly with security industry regulators and joined regulators on industry committees and review panels including the ‘Loud and Clear’ review into Language Literacy and Numeracy (LL&N) within the security industry, and the strategic industry review of training for the security industry undertaken by the Australian Skills Quality Authority (ASQA). ASIAL also provided industry participation and comment for other enquiries, including the Senate Standing Committee on Rural and Regional Affairs and Transport Inquiry into Airport and Aviation Security, Australian Standards reviews and legislative amendments impacting on the security industry.

SECURITY TRAINING abc

ASIAL PARTICIPATED IN THE REVIEW INTO LANGUAGE LITERACY AND NUMERACY

ASIAL REPRESENTED THE SECURITY INDUSTRY AT NUMEROUS INQUIRIES

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The ASQA review into training in the security industry identified shortcomings in the duration of security training courses, poor assessment strategies, assessments not conducted in accordance with the principles of assessment and the rules for providing training evidence, the lack of trainer and assessor qualifications and/or the lack of industry experience by trainers presenting the security training.

As a member of the review management committee, ASIAL highlighted industry concerns over interpretation of an ASQA ‘volume of learning’ guide due to what may be an unintended consequence; reducing the available pool of entrants to certain sectors of the security industry and in particular the manpower sector.

Recognising the difficulties in attracting and retaining suitable people to work within the security industry, ASIAL continued to work with governments across the broad training sectors, including industry training boards, skills councils, education departments and managers of priority funding programs. This included support from ASIAL for security training to be included in the Northern Territory skilled occupation priority list providing funded training positions for the security industry.

ASIAL 2015 Annual & Financial Report

ANTI-MONEY LAUNDERING AND COUNTER TERRORISM With anti-money laundering and counter terrorism remaining a high government priority, ASIAL continued to represent the security industry at the Australian Transaction Reports and Analysis Centre (AUSTRAC) roundtable industry meetings.

The meetings have been designed to maintain industry focus and commitment to the intelligence and data collection strategies and to ensure the security industry and in particular CIT sector meets compliance reporting requirements whilst recognising and managing the cost and operational impact on security businesses.

DISCIPLINARY COMMITTEE The ASIAL Disciplinary Committee’s role is to investigate breaches of the ASIAL Professional Code of Conduct and to make recommendations to the Board. The Disciplinary Committee is comprised of: •• Damien Smith, independent legal representative •• Ged Byrnes, ASIAL Board representative •• Bryan de Caires, CEO, ASIAL •• Peter Johnson, ASIAL Compliance and Regulatory Affairs Advisor The Disciplinary Committee met twice during the year to discuss disciplinary matters relating to the behavior of members. Among the issued discussed included: •• Failure to provide the association with details of required security licence and registration details; •• Non-compliance with the Queensland mandatory audit requirement.

During the course of the year 246 members were expelled from the Association (compared with 280 in 2014).

The Disciplinary Committee’s role is to investigate breaches of the ASIAL Professional Code of Conduct.

ASIAL 2015 Annual & Financial Report

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DIRECTOR

PROFILES PRESIDENT

CEO

Kevin McDonald, General Manager, Business Improvement, MSS Security Pty Ltd

Bryan de Caires, Chief Executive Officer and Secretary

Kevin is a security industry professional with more than 30 years’ experience in both the electronic and manpower sectors. His knowledge across the broad industry spectrum covers all aspects from sales through to customer delivery, general management and business improvement placing him in an ideal position to understand and appreciate the concerns of the members.

Bryan de Caires has 25 years’ senior management experience across a range of industry sectors.

His early career was as a senior editor with Euromoney Publications Plc; a global finance and business publisher based in London. In 1990 he moved to Australia to take up a position as General Manager with business media company AIC (later renamed Terrapinn). In 1997 he was appointed Managing Director of the company’s exhibition business. Prior to joining ASIAL in 2000, he spent a year as National Manager, Professional Development with the Australian Human Resources Institute. Bryan is a Member of the Australian Institute of Company Directors.

Kevin is committed to the integrity, standards and improvement of the security industry. As the current President and a Director he is fortunate to be able to assist in achieving these goals and raise the industry’s profile.

Kevin has been a Director since 2001 and was actively involved in the Association through State and Special Interest Working Groups for many years prior to being elected to the Board.

He has qualifications in Security Risk Management and Marketing Management and is a Licenced Security Consultant in NSW.

VICE PRESIDENT Chris Luhrmann, Founder and Principal of SIA Security Chris has 27 years’ experience in law enforcement and the private security and investigation industries, serving with the New South Wales and Queensland Police Services. He has held positions as an investigator, intelligence analyst/officer, and officer in charge and team leader in both local and specialist squads. Chris has gained a wide range of skills, which include conducting security and surveillance operations both internationally and domestically.

FROM TOP: KEVIN MCDONALD, CHRIS LUHRMANN, BRYAN DE CAIRES, ROD ANDERSON

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Since 1990, he has been involved in specialist weapons, tactical and VIP protection teams and has trained police in firearms, operational skills and tactics. He is also a qualified electrical technician experienced in the use, installation and repair of security and electronic equipment. Chris is a member of the Australian Institute of Company Directors and has vocational training in Business Management.

DIRECTORS Rod Anderson, JP – Security and Training Consultant, Standsure Security Consulting Rod has over 40 years’ security and related experience, specifically in the areas of management, operations, training and business development.

After a distinguished 20 year career in the Australian Regular Army, Rod progressed through a number of senior management positions within ISS Security (previously Group 4 Securitas) including Regional General Manager of Western Australia, and then later as the Regional General Manager of Queensland and the Northern Territory, General Manager Special Operations, National Business Manager and finally National General Manager Operations. He has extensive experience in the delivery of security and protection to defence bases, aviation, maritime and critical infrastructure. Rod has also served on a number of security industry review committees and has a number of tertiary qualifications in business; training, HR and security related disciplines and is a licensed security consultant and trainer in NSW.

ASIAL 2015 Annual & Financial Report

Brian Foster, Senior Advisor – Business Growth, SNP Security Pty Ltd

Mike McKinnon, Managing Director, MSS Security

Brian is a senior professional manager with exceptional experience in the security industry evidenced by a career spanning over 40 years.

Continuous promotion in executive roles to managing director, with parallel appointments to associated boards, brings to ASIAL a person with sound business judgement, strategic thinking, a leader and considerate team player with accomplished interpersonal skills. Brian is a perceptive, intuitive and energetic individual with a collaborative style, a good communicator with strong established networks. Over the period Brian has represented on a broad range of committees and advisory boards, encompassing community engagement, event security, training, property and facilities management, sustainability and corporate governance. Brian was admitted as a Foundation Fellow of the Australian Institute of Company Directors and is a Fellow of the Australian Institute of Management. He was re elected to the ASIAL board in 2014 and has previously served as the Vice President.

Mike has been involved in the security industry for more than 25 years and was appointed to the ASIAL Board in mid 2010. Professional studies include a Bachelor of Business Degree as well as qualifications in Local Government Administration. Mike is a Certified Practicing Accountant (CPA) and spent a considerable number of years in professional practice and finance before making the move to general management of commercial enterprises. He is currently the Managing Director of MSS Security Pty Ltd; Australia’s leading security personnel provider and oversees the operations of the Australian business, operating across all Australian States and Territories. This gives a national insight to the issues impacting the industry. Mike also has the unique perspective of having been a significant client within the industry whilst with the Qantas Group for a number of years. This period included managing their contracted security screening services, equipment suppliers and their in-house alarm monitoring and identification teams. Mike also brings a wealth of knowledge and experience gained in security electronic wholesaling, safe manufacturing and distribution, monitoring and electronic solutions.

John Gellel, General Manager, Honeywell Security Group Since 2007 John has been the General Manager for Honeywell Security Group (HSG), across Australia and New Zealand. His career in the security industry started in 1998 and he joined Ademco Group (part of Honeywell Security Group) in 2001, where he has held various roles in sales, marketing, operations and management. John has extensive experience in the wholesale electronic security market and regularly spends time with installation companies in various locations to understand market trends and challenges which they face. He has both sales and technical knowledge on electronic security sub-categories; alarms, CCTV, access control, home automation and fire. John takes an active interest in researching global emerging trends and technologies in the electronic security industry. John has a Master of Business Administration (MBA) from ACU Business, an Advanced Diploma of Management from Australian Institute of Management (AIM) and is Six Sigma Green Belt certified. John has been a member of the Australian Institute of Management since 2008 and volunteers as a professional and personal mentor for various people.

ASIAL 2015 Annual & Financial Report

Neil McLean, Business Development Manager, ARA Security Neil has been involved in the security industry for over 30 years. Following his appointment as ASIAL State Convener for South Australia in 2008, he was elected to the Board in 2012. Neil has worked in the guarding and patrol, monitoring and electronic sectors of the industry during his career. His extensive experience means he has a broad understanding of the issues faced across our industry. He has extensive experience in design installation, monitoring and service requirements for electronic security, access control and CCTV system. He is a strong supporter of the role ASIAL plays in representing, presenting and advocating the highly professional role the industry plays to both consumers and government regulators alike, but also in the professional services and support that ASIAL provides to assist our members.

FROM TOP: BYRAN FOSTER, JOHN GELLEL, MIKE MCKINNON, NEIL MCLEAN

Ged Byrnes, Director, Protection Pacific Security and Antony Elliott, Managing Director, E & C Security Systems Pty Ltd both stood down from the Board prior to the 2014 Board Elections. Damian Waters tendered his resignation to the Board on 22 May 2015.

15

ASIAL FINANCIAL

REPORT 2015 DIRECTORS’ OPERATING REPORT

•• O ngoing consumer awareness campaigns and interaction with the media and other key stakeholders;

Your directors submit this operating report for the year ended 30 June 2015. 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.

Their qualifications, experience and special responsibilities are set out on pages 14 and 15 of this Annual and Financial Report.

•• G rowth and development of professional development opportunities and industry certification schemes;

Director Rod Anderson

Chris Luhrmann

Ged Byrnes (part)

Mike McKinnon

Antony Elliott (part)

Kevin McDonald

Brian Foster (part)

Neil McLean

John Gellel (part)

Damian Waters (part)

Following Board elections conducted by the Australian Electoral Commission in November 2014, Brian Foster and John Gellel were elected (replacing Ged Byrnes and Antony Elliott who did not stand for re-election). In May 2015 Damian Waters tendered his resignation from the Board.

Key objectives of the Association The Association’s key strategic priorities are: •• To promote a positive image of the industry through an improved consumer awareness of the contribution the industry makes to the Australian economy; •• T o promote the highest levels of professionalism within the industry through effective enforcement of the Association’s Code of Practice, industry certification programs and the development of professional development opportunities; •• T o provide strong advocacy for the industry by acting as a respected and unified voice for the industry in seeking to influence decision-makers on public policy issues at a local and national level; •• P rovide value to members regardless of their size and to ensure that membership continues to be viewed as a ‘mark of distinction’ which is valued by consumers.

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

These include: •• A dvocacy for the industry through the lodgment of industry submissions in response to legislative reviews affecting the industry, whether relating to licensing, industrial relations or work, health and safety; •• C ollaboration with agencies such as the Fair Work Ombudsman, NBN Co and through engagement with security industry regulators to address issues that affect the industry;

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•• O ngoing improvements to the Association’s IT systems to better serve the needs of members; •• A commitment to the continuous improvement of the Association’s online communications channels to ensure that they best serve the needs of members and the broader community; •• T he introduction of practical new member benefits and services, such as the Safe Workplace Management System and ASIAL eLearning platform.

Measurement of the Association’s performance The Association measures performance through a range of metrics, including member acquisition and retention rates; growth in member subscription and non-subscription revenue; media exposure and profile; and financial performance against budget.

Corporate Structure 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 2015 for the purposes of section 254 (2) (f) of the RAO Schedule was 2756.

Employees The company employed 13 employees as at 30 June 2015 (2014:12 employees).

Rights of Members to resign In accordance with section 174 of the RAO Schedule, a member may resign from membership of the Organisation by written notice addressed and delivered to the Chief Executive Officer as per 11.1 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

ABN 91 000 813 365 | ASIAL 2015 Annual & Financial Report

ASIAL FINANCIAL

REPORT 2015 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 $118,518 (2014: $179,468). The Association’s reserves grew to $3,350,955.

The Association remains committed to its policy of reinvesting a significant proportion of prior year surpluses into maintaining and improving services to members, whilst using the balance to build sufficient reserves for when they are needed. Over the past year further investment has been made to enhance the Association’s Customer Relationship Management system.

Significant Changes in the State of Affairs No significant change in the state of affairs of the Company occurred during the financial year.

of loss it suffers as a result of wrongful, wilful or fraudulent acts of its directors, officers and employees. This contract complies with Section 199B of the Corporations Act 2001.

Proceedings on Behalf of the Company No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings.

Auditors Foster Raffan continues to act as auditors in accordance with Section 327 of the Corporations Act 2001.

Directors’ Emoluments and Transactions No emoluments have been received or are due and receivable

by Directors from the company or any related body corporate.

Directors Meetings

No significant events have taken place after the balance date.

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.

Likely Developments and Expected Results

Directors Attendance at Board meetings

Directors have budgeted on a loss of $26,511 for the coming year, which includes a provision for the launch of an online learning management system for members and additional secretariat personnel. 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.

Rod Anderson 3 (5)

Chris Luhrmann 5 (5)

Ged Byrnes 2 (2)

Kevin McDonald 5 (5)

Antony Elliott 2 (2)

Mike McKinnon 4 (5)

Brian Foster 2 (3)

Neil McLean 5 (5)

John Gellel 3 (3)

Damian Waters 4 (5)

Significant Events after Balance Date

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

Neil McLean 1 (1)

John Fleming 1 (1)

Chevelle Millhouse 1 (1)

Janine Hill 1 (1)

Darryl Milling 0 (1)

Peter Johnson 0 (1)

Rob Seth 1 (1)

Proceedings on behalf of the company

Chris Luhrmann 1 (1)

Damian Waters 1 (1)

No person has applied for leave of Court to bring proceedings to which the person is a party for the purpose of taking responsibility on behalf of the company for all, or any part of these proceedings.

Kevin McDonald 1 (1)

Suzette Po-Williams 1 (1)

Mike McKinnon 1 (1)

Damian Waters 1 (1)

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

Indemnification and Insurance of Directors and Officers During the year, the company has paid a premium in respect of a contract insuring directors and officers against: (a) liability arising from wrongful acts committed in their capacity as directors and officers of the company, but excluding dishonesty, fraud, malicious conduct or wilful breach of duty; and (b) the costs of legal representation in relation to such liabilities. The premium paid was $13,360, which also includes cover for the company in respect

ASIAL 2015 Annual & Financial Report | ABN 91 000 813 365

A copy of the auditors’ independence declaration, as required under section 307C of the Corporations Act 2001, is set out on page 18.

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

Kevin McDonald Director

Chris Luhrmann Director

Crows Nest, 9 September 2015.

17

ASIAL FINANCIAL

REPORT 2015 DIRECTORS’ DECLARATION In accordance with a resolution of the directors of Australian Security Industry Association Limited, we state that: (a) The financial statements and notes set out on pages 19 to 32 are in accordance with the Guidelines of the General Manager, Fair Work Australia and: (i) comply with Accounting Standards and the Corporations Regulations 2001; and

AUDITOR’S INDEPENDENCE DECLARATION I declare, to the best of my knowledge and belief that during the year ended 30 June 2015 there have been: (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (ii) no contraventions of any applicable code of professional conduct in relation to the audit.

(ii) give a true and fair view of the company’s financial performance, financial position and cash flow as at 30 June 2015 and of its performance for the year ended on that date; (b) in the opinion of the directors there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. (c) during the financial period to which the General Purpose Financial Report relates and since the end of that year:

Foster Raffan Chartered Accountants

GD Wood, FCA Partner

Level 6, 8 West Street North Sydney NSW 2060

North Sydney 9 September 2015.

(i) meetings of the committee of management (the Board) were held in accordance with the Rules of the reporting unit (ASIAL);

INDEPENDENT AUDIT REPORT TO MEMBERS

(ii) the financial affairs of the reporting unit have been managed in accordance with its Rules;

Scope

(iii) the financial records of the reporting unit have been kept and maintained in accordance with Fair Work (Registered Organisations) Act 2009 (the Act) and its related Regulations; and (iv) No member of the Association or a Registrar has made a request for information under section 272 of the RAO Schedule; and (v) there has been no order for inspection of financial records made by the Commission under section 273 of the RAO Schedule.

On behalf of the Board

We have audited the accompanying financial report of Australian Security Industry Association Limited (the company) which comprises the statement of financial position as at 30 June 2015 and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration.

Director’s Responsibility The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Kevin McDonald Director

Chris Luhrmann Director

Crows Nest, 9 September 2015.

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Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement.

ABN 91 000 813 365 | ASIAL 2015 Annual & Financial Report

ASIAL FINANCIAL

REPORT 2015 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report.

The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial report that gives a true and fair view 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

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

Audit Opinion In our opinion the financial report of Australian Security Industry Association Limited: (a) is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the company’s financial position as at 30 June 2015 and of its performance for the year ended on that date; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and (b) complies with the requirements of Part 3 of Chapter 8 of the Fair Work (Registered Organisations) Act 2009. (c) is properly prepared on the going concern basis of accounting.

Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

Foster Raffan Chartered Accountants

GD Wood, FCA Partner

Level 6, 8 West Street North Sydney NSW 2060

North Sydney 9 September 2015.

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2015 Note Revenue – operating – investment Expenses directly related to operating activities Employee expenses Depreciation Other expenses PROFIT BEFORE INCOME TAX Income tax expense PROFIT FOR THE YEAR Other comprehensive income TOTAL COMPREHENSIVE INCOME FOR THE YEAR

ASIAL 2015 Annual & Financial Report | ABN 91 000 813 365

2 2 3 11 4 5

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2015 $ 2,226,342 112,101 (495,005) (1,191,720) (43,573) (489,627) 118,518 118,518 118,518

2014 $ 2,375,808 104,209 (621,271) (1,132,397) (32,672) (514,209) 179,468 179,468 179,468

The accompanying notes form part of these financial statements.

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ASIAL FINANCIAL

REPORT 2015 STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 30 JUNE 2015 Note

2015 $

2014 $

6 7 8

2,022,008 183,515 97,099 2,302,622

2,015,064 107,148 44,941 2,167,153

10 11

2,665,808 2,665,808 4,968,430

1,542 2,371,076 2,372,618 4,539,771

CURRENT LIABILITIES Trade and other payables Employee provisions Centre for Compliance fund TOTAL CURRENT LIABILITIES

12 13 14

1,470,355 129,001 17,577 1,616,933

1,405,926 118,215 17,577 1,541,718

NON CURRENT LIABILITIES Employee provisions TOTAL LIABILITIES

13

542 1,617,475

1,541,718

NET ASSETS

3,350,955

2,998,053

EQUITY Retained earnings Reserve TOTAL EQUITY

3,065,913 285,042 3,350,955

2,947,395 50,658 2,998,053

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

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2015 RETAINED EARNINGS AT 1 JULY 2013 Comprehensive income RETAINED EARNINGS AT 30 JUNE 2014 Comprehensive income RETAINED EARNINGS AT 30 JUNE 2015

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The accompanying notes form part of these financial statements.

$ 2,767,927 179,468 2,947,395 118,518 3,065,913

ABN 91 000 813 365 | ASIAL 2015 Annual & Financial Report

ASIAL FINANCIAL

REPORT 2015 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2015 Note CASH FLOW FROM OPERATING ACTIVITIES Receipts from members and others Payments to suppliers and employees Interest & dividend received Net cash generated from operating activities

2 17

CASH FLOW FROM INVESTING ACTIVITIES Payment for property, plant & equipment Net cash (used in) investing activities CASH FLOW FROM FINANCING ACTIVITIES Payment from Centre for Compliance Fund Net cash (used in) financing activities

14

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

6

2015 $

2014 $

2,249,265 (2,224,801) 63,987 88,451

2,371,878 (2,354,665) 59,176 76,389

(81,507) (81,507)

(2,311) (2,311)

-

-

6,944

74,078

2,015,064

1,940,986

2,022,008

2,015,064

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 The financial statements are for Australian Security Industry Association Limited (the company) as an individual entity incorporated and domiciled in Australia. The company is limited by guarantee.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation

The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards (including Australian Accounting Interpretations), the Fair Work (Registered Organisations) Act 2009 (the RO Act) and the Corporations Act 2001.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions.

Material accounting policies adopted in the preparation of these financial statements are presented below and

ASIAL 2015 Annual & Financial Report | ABN 91 000 813 365

have been consistently applied unless otherwise stated.

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

The financial statements were authorised for issue on 9 September, 2015 by the directors of the company.

Accounting Policies (a) Revenue Recognition Members’ and other subscriptions or fees are accounted for when received and recognised as income in equal monthly amounts over the period to which they apply.

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

The accompanying notes form part of these financial statements.

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NOTES TO THE

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 Income received and expenses incurred in advance of activities are recognised when the activity is completed.

If a loss is expected, a provision for the likely loss is made as soon as it becomes apparent.

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

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

(b) Development of New Services Costs of developing new services are expensed as incurred.

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

(d) Cash and Cash Equivalents

Depreciation The depreciable amount of all fixed assets including buildings, but excluding freehold land, is depreciated over the asset’s useful life to the company commencing from the time the asset is held ready for use. The depreciation rates used for each class of depreciable assets are:

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

(e) Trade and Other Receivables Trade receivables are recognised and carried at the original invoiced amount. A provision for doubtful debts is made when collection of the full amount is no longer probable.

Bad debts are written-off as incurred.

Property

Increases in the carrying amount arising on revaluation of land and buildings are recognised in the revaluation reserve in equity. Revaluation decreases that offset previous increases of the same class of assets are recognised in other comprehensive income and reduce the revaluation surplus in equity. All other decreases are charged to the statement of comprehensive income.

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Depreciation Rate

Buildings – straight line basis

2.5%

Office equipment – diminishing value basis

10% - 66.7%

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

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

In periods when the freehold land and buildings are not subject to an independent valuation, the directors conduct directors’ valuations to ensure the carrying amount for the land and buildings is not materially different to the fair value.

Class of Fixed Asset

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

(f) Property, Plant and Equipment

Freehold land and buildings are shown at their fair value based on periodic, but at least triennial, valuations by external independent valuers, less subsequent depreciation for buildings.

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

(g) Leases Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are recognised as expenses on a straight-line basis over the lease term.

(h) Financial Instruments

Initial recognition and measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to either purchase or sell the asset (ie trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transactions costs except where the instrument is classified “at fair value through profit or loss”, in which case transaction costs are recognised in profit or loss immediately.

ABN 91 000 813 365 | ASIAL 2015 Annual & Financial Report

NOTES TO THE

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

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

In other circumstances, valuation techniques are adopted.

Amortised cost is the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method.

Financial assets at fair value through profit or loss Financial assets are classified at ‘fair value through profit or loss’ when they are held for trading for the purpose of short-term profit taking, or where they are derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in fair value (ie gains or losses) being recognised in profit or loss.

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

Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the entity’s intention to hold these investments to maturity. They are subsequently measured at amortised cost.

Financial liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.

Impairment At the end of each reporting period, the company assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-forsale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in profit or loss. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit or loss at this point.

ASIAL 2015 Annual & Financial Report | ABN 91 000 813 365

Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial liability, which is extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

(i) Impairment of Assets At the end of each reporting period, the entity reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is recognised in profit or loss.

Where the future economic benefits of the asset are not primarily dependent upon the asset’s ability to generate net cash inflows and when the entity would, if deprived of the asset, replace its remaining future economic benefits, value in use is determined as the depreciated replacement cost of an asset.

Where it is not possible to estimate the recoverable amount of an assets class, the entity estimates the recoverable amount of the cash-generating unit to which the class of assets belong.

Where an impairment loss on a revalued asset is identified, this is recognised against the revaluation surplus in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that class of asset.

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

(k) Employee Benefits Provision is made for the company’s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are

23

NOTES TO THE

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may not satisfy vesting requirements. Those cash flows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows.

are presented as operating cash flows included in receipts from customers or payments to suppliers.

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

(o) Critical Accounting Estimates and Judgments The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information.

Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the company.

Contributions are made by the entity to employee’s superannuation funds and are charged as expenses when incurred.

(l) Provisions Provisions are recognised when the entity has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period.

(m) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

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

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities, which are recoverable from or payable to the ATO,

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Key Estimates Impairment The freehold land and buildings were independently valued at 24 July, 2015 by AON Valuation Services. The valuation was based on the fair value less cost to sell. The critical assumptions adopted in determining the valuation included the location of the land and buildings, the current strong demand for land and buildings in the area and recent sales data for similar properties. The valuation resulted in a revaluation increment of $234,384 being recognised for the year ended 30 June, 2015. Together with a revaluation of $50,658 brought forward from 2012, the accumulated reserve came to $285,042 at 30 June 2015.

(p) Economic Dependence The company is dependent on being recognised as the peak national body representing the interests of the security industry.

ABN 91 000 813 365 | ASIAL 2015 Annual & Financial Report

NOTES TO THE

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

2. REVENUE

Revenue from operating activities Members’ subscriptions Exhibition, conference and seminars Member marketing fee Cabling providers registrations Magazine Breakfast briefings Grading, seminars and workshops Insurance support Special events Consultancy Strategic partnership Technician certification Statutory compliance WHS income Miscellaneous income Total revenue from operating activities Revenue from investment activities Rental income Interest and dividend Change in fair value of shares Total revenue from non-operating activities Total revenue from ordinary activities

2015 $

2014 $

1,572,427 94,655 144,173 86,554 35,989 31,876 46,502 38,548 15,779 68,500 46,738 25,850 8,500 10,251 2,226,342

1,456,419 298,015 80,375 138,965 119,873 21,395 32,398 46,633 3,375 68,500 31,139 66,825 11,896 2,375,808

48,114 63,987 112,101 2,338,443

44,927 59,176 106 104,209 2,480,017

433,616 41,194 12,305 7,025 494,140

427,718 39,564 11,890 7,881 487,053

610,186 57,930 (977) 30,441 697,580 1,191,720

574,666 53,157 (19,263) 36,784 645,344 1,132,397

3. EMPLOYEE BENEFITS Office holders Wages and salaries Superannuation Leave and other entitlements Other employee expenses Total Employees other than office holders Wages and salaries Superannuation Leave and other entitlements Other employee expenses Total Total employee expenses

ASIAL 2015 Annual & Financial Report | ABN 91 000 813 365

25

NOTES TO THE

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

4. OTHER EXPENSES

Auditor’s remuneration – audit Auditor’s remuneration – other services Industry research Industrial relations service Legal Meetings-members, directors and reference groups Website Computer support service Other Total other expenses

2015 $ 24,000 6,000 30,000 13,624 120,488 9,060 58,041 9,588 85,916 162,910 489,627

2014 $ 23,000 6,500 29,500 20,000 120,871 11,030 64,997 40,411 76,255 151,145 514,209

382,095 1,639,913 2,022,008

358,313 1,656,751 2,015,064

188,515 (5,000) 183,515

117,748 (10,600) 107,148

10,600 (5,600) 5,000

5,000 5,600 10,600

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

6. CASH AND CASH EQUIVALENTS Current Cash at bank and on hand Short-term bank deposits

$4,239 (2014 $4,130) of the short-term bank deposits are bonds paid to the company by tenants.

7. TRADE AND OTHER RECEIVABLES Current Trade receivables Less: provision for doubtful debts

Provision for doubtful debts as at 30 June 2014 Charge for year Written off Provision for doubtful debts as at 30 June 2015

26

ABN 91 000 813 365 | ASIAL 2015 Annual & Financial Report

NOTES TO THE

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Credit Risk – Trade Receivables There are no trade receivables in respect of subscriptions as they are invoiced only when received. The company’s credit terms in respect of services and activities are 30 days. Overdue debts are pursued and monitored by management. They are assessed for impairment and provided for where specific circumstances indicate that the debt may not be paid in full to the company. The company does not have any material credit risk exposure to any single receivable or group of receivables. The following table details the company’s trade receivables exposed to credit risk (prior to collateral and other credit enhancements) with ageing analysis and impairment provided thereon. The balances of receivables that remain within the initial trade terms (as detailed in the table) are considered to be of high credit quality.

Gross amount $

Past due and impaired $

Past due not impaired $

Not due not impaired $

<30 days 31-60 days 61-90 days >90 days

173,294 14,526 695 188,515

5,000 5,000

124,511 14,526 695 139,732

43,783 43,783

<30 days 31-60 days 61-90 days >90 days

93,264 21,379 3,105 117,748

9,527 448 625 10,600

20,931 2,480 23,411

83,737 83,737

2015

2014

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

Receivables that are overdue and impaired are covered by the provision for doubtful debts of $5,000.

8. OTHER ASSETS

Current Prepayments

2015 $

2014 $

97,099

44,941

433,616 61,463 495,079

427,718 51,153 478,871

41,194 41,194

39,564 39,564

32,822 32,822 569,095

28,985 28,985 547,420

9. KEY MANAGEMENT PERSONNEL REMUNERATION Short-term employee benefits Salary Annual leave accrued Total short-term employee benefits Post employment benefits Superannuation Total post employment benefits Other long-term benefits Long service leave Total other long-term benefits Termination benefits Total

ASIAL 2015 Annual & Financial Report | ABN 91 000 813 365

27

NOTES TO THE

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

10. FINANCIAL ASSETS

Non-current Available for sale financial assets - Investments in Australian listed shares

2015 $

2014 $

-

1,542

2,500,000 2,500,000 441,016 (275,208) 165,808 2,665,808

2,270,000 (2,924) 2,267,076 365,820 (261,820) 104,000 2,371,076

11. PROPERTY, PLANT & EQUIPMENT Freehold land and building- at independent valuation Less: accumulated depreciation Office equipment, furniture and fittings- at cost Less: accumulated depreciation Total property, plant and equipment

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

Office Equipment & Software $

Total $

2014 Balance at the beginning of the year Additions at cost Disposals Depreciation Carrying amount at end of year

2,268,536 (1,460) 2,267,076

133,418 2,311 (517) (31,212) 104,000

2,401,954 2,311 (517) (32,672) 2,371,076

2015 Balance at the beginning of the year Additions at cost Disposals Revaluation increment Depreciation Carrying amount at end of year

2,267,076 234,384 (1,460) 2,500,000

104,000 117,657 (13,736) (42,113) 165,808

2,371,076 117,657 (13,736) 234,384 (43,573) 2,665,808

28

ABN 91 000 813 365 | ASIAL 2015 Annual & Financial Report

NOTES TO THE

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

12. TRADE AND OTHER PAYABLES

Current Trade payables Employee liabilities Other current payables Unearned income Events income Cablers registration Membership subscriptions Security Insider advertising Rental income

Financial liabilities at amortised cost classified as trade and other payables

2015 $

2014 $

66,719 31,100 71,609 169,428

58,366 26,310 80,982 165,658

116,796 191,542 939,272 14,921 38,396 1,300,927 1,470,355

9,050 218,383 1,012,835 1,240,268 1,405,926

169,428

165,658

61,463 32,822 94,285

51,153 28,985 80,138

17,650 17,608 35,258 129,543

20,212 17,865 38,077 118,215

129,001

118,215

542

-

118,215 88,141 (76,813) 129,543

125,587 98,203 (105,575) 118,215

17,577 17,577

17,577 17,577

13. EMPLOYEE PROVISIONS Office holders Annual leave Long service leave Total Employees other than office holders Annual leave Long service leave Total Total employee provisions Current Provision for employee benefits Non-current Provision for employee benefits Provision for employee benefits Balance at 1 July 2014 Additional provision raised during the year Amounts used Balance at 30 June 2015

14. CENTRE FOR COMPLIANCE Current Balance at 1 July 2014 Less: expenditure Balance at 30 June 2015

15. 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.

ASIAL 2015 Annual & Financial Report | ABN 91 000 813 365

29

NOTES TO THE

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

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

17. CASH FLOW INFORMATION Reconciliation of the profit for the year with cash flow from operations: Profit after tax Non-cash items Depreciation Increase / (Decrease) in employee provisions Increase / (Decrease) in doubtful debts Changes in assets and liabilities (Increase) / decrease in trade receivables (Increase) / decrease in prepayments Increase / (decrease) in payables Increase / (decrease) in deferred income (Increase) / decrease in fixed assets (Increase) / decrease in share value Net cash flow from operating activities

2015 $ 118,518

2014 $ 179,468

10,464 11,328 (5,600)

25,021 (7,371) 5,600

(70,767) (52,158) 3,770 60,659 12,237 88,451

(63,312) 67,158 (130,063) (8,174) 8,168 (106) 76,389

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

The directors do not receive any compensation from the company other than reimbursement of their travel expenses incurred as directors.

Directors who are members of the company deal with the company on the same terms as all other members unless otherwise stated.

During the year a company controlled by a director, Antony Elliott, charged $2,185.25 (including GST) for maintaining the security system at the companyâ&#x20AC;&#x2122;s premises.

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

The carrying amounts for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies in Note 1, are as follows: Note Financial Assets Cash and cash equivalents Receivables Total Financial Assets Financial Liabilities Financial liabilities at amortised cost: Trade and other payables (excluding annual leave and deferred income)

30

6 7

2,022,008 183,515 2,205,523

2,015,064 107,148 2,122,212

12

169,428

165,658

ABN 91 000 813 365 | ASIAL 2015 Annual & Financial Report

NOTES TO THE

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Financial Risk Exposures and Management The main risks the company is exposed to through its financial instruments are credit risk, liquidity risk and market risk relating to interest rate risk.

a. Credit Risk Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss for the company.

The company’s material credit risk exposures are trade receivables and cash deposited with banks.

The company’s exposure to credit risk arising from trade receivables is dealt with in Note 7.

The company deposits cash only with government guaranteed Australian banks. Cash was with the following banks at the year end: Note ANZ ING Suncorp Rabo Direct Macquarie Bankwest ME Bank Bank of Queensland 6

2015 $ 458,980 385,859 259,976 246,704 175,319 245,026 250,144 2,022,008

2014 $ 495,267 416,047 250,127 321,558 250,060 36,902 245,103 2,015,064

b. Liquidity Risk Liquidity risk arises from the possibility that the company might encounter difficulty in settling its debts or otherwise meeting its obligations in relation to financial liabilities. The company manages this risk by preparing regular cash flow forecasts and managing credit risks.

The table below reflects undiscounted financial liabilities and cash flows from financial assets that reflect management’s expectation as to the timing of realisation. Actual timing may therefore differ from that disclosed.

Financial liability and financial asset maturity analysis Within 1 year 2015 2014 $ $ 165,189 161,529 165,189 161,529

Financial liabilities due for payment Trade and other payables Total expected outflows Financial assets – cash flows realisable Cash and cash equivalents Trade receivables Total anticipated inflows Net inflow/(outflow) on financial instruments

2,022,008 1,523,499 183,515 107,148 2,205,523 1,630,647 2,040,334 1,469,118

ASIAL 2015 Annual & Financial Report | ABN 91 000 813 365

1 to 5 years 2015 2014 $ $ 4,239 4,129 4,239 4,129

(4,239)

491,565 491,565 487,436

Over 5 years 2015 2014 $ $ -

-

Total 2015 2014 $ $ 169,428 165,658 169,428 165,658

- 2,022,008 2,015,064 183,515 107,148 - 2,205,523 2,122,212 - 2,036,095 1,956,554

31

NOTES TO THE

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

c. Market Risk Interest rate risk Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting period whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments.

At the year end all cash deposited as term deposits with Rabobank, Suncorp, ANZ, Bank of Queensland and ME Bank (approximately 62% of cash on deposit) were at fixed interest rates and cash deposited with Rabobank, ING, ANZ, Suncorp and Bankwest was variable rates (approximately 38% of cash on deposit).

Sensitivity Analysis

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

2015 $ 35,841

2014 $ 35,323

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

20. CAPITAL MANAGEMENT The directors control the capital of the entity to ensure that adequate cash flows are generated to fund its objectives.

Risk management policies are approved and reviewed by the Board on a regular basis. These include credit risk policies and future cash flow requirements.

The entity’s capital consists of retained earnings. A significant portion of the company’s net assets consists of cash and cash equivalents.

The directors aim to maintain sufficient cash and readily realisable assets to be able to cover 2 years’ operating expenses.

Retained earnings Cash and cash equivalents

3,350,955 2,022,008

2,998,053 2,015,064

21. INFORMATION TO BE PROVIDED TO MEMBERS In accordance with the requirements of the Fair Work (Registered Organisations) Act 2009, the attention of members is drawn to the provisions of sub-sections (1), (2) and (3) of section 272 which reads as follows: 1) A member of a reporting unit, or the General Manager, may apply to the reporting unit for specified prescribed information in relation to the reporting unit to be made available to the person making the application.

2) The application must be in writing and must specify the period within which, and the manner in which, the information is to be made available. The period must not be less than 14 days after the application is given to the reporting unit.

3) A reporting unit must comply with an application made under subsection (1).

22. COMPANY DETAILS The registered office and principal place of business of the company is 41 Hume Street, Crows Nest NSW 2065.

32

ABN 91 000 813 365 | ASIAL 2015 Annual & Financial Report

ASIAL CODE OF

PROFESSIONAL CONDUCT 1.

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

2.

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.

3.

4.

Members shall not intentionally disseminate false or misleading information, whether written, spoken or implied, nor engage in false, misleading or deceptive conduct or otherwise bring the security industry into disrepute. Members have a duty to maintain truth, accuracy and good taste in advertising and sales promotion.

Members shall not represent conflicting or competing interests except with the express consent of those concerned given only after full disclosure of the facts to all interested parties.

5.

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

6.

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

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.

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

9.

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

10. Members shall refrain from using their relationship with the Association in such a manner as to state or imply an official accreditation or approval beyond the scope of membership of the Association and its aims, rules and policies.

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

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

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

14. Where an alleged breach of this Code is appropriately brought to the attention of ASIAL, then ASIAL will in the first instance raise this matter in writing with the Member.

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

Security Industry House, 41 Hume Street, Crows Nest, NSW 2065 tel: 1300 127 425 | email: security@asial.com.au | web: www.asial.com.au

Supporting members, promoting standards and safeguarding public interests.