2017 ASIAL Annual & Financial Report

2017

Annual & Financial Report

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

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

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

www.ASIAL.com.au

2017 Annual & Financial Report President’s Report

02

Independent Audit Report To Members

22

Secretary’s Report

03

Statement of Comprehensive Income

24

Operating Report

04

Statement of Financial Position

25

Director Profiles

16

Statement of Changes In Equity

26

Directors’ Operating Report

18

Statement of Cash Flows

27

Directors’ Declaration

20

Notes To The Financial Statements

28

Board of Directors President

Kevin McDonald

Vice President

Chris Luhrmann (part)

Directors

Rod Anderson, Brian Foster, John Gellel, John Hadden (part), Mike McKinnon (part), Neil McLean (part), Rachaell Saunders, Michael Smith (part), Robin Stenzel (part)

National Reference Group

Chris Delaney, John Fleming, Derek Hagstrom, Peter Johnson, Chevelle Millhouse, Suzette Po-Williams and Robert Seth (in addition to the Board)

Auditor

Foster Raffan

Solicitor/Attorney Consultants, Monitoring Centre

Goldrick Farrell Mullan

Certification Inspection

Robin Burrows, ATSC

Industrial Relations

Chris Delaney, Chris Delaney & Associates

Compliance & Regulatory Affairs

Peter Johnson, Corporate Application

Special Consultant

Damien Smith, Enterprise Care Pty Ltd

Secretariat Chief Executive Officer and Secretary

Bryan de Caires

General Manager

John Fleming

Manager, Membership

Sylva Pechackova

Finance and Administration Manager

Fiona Rounds

Marketing and Communications Manager

Natalie Shymko

Marketing and Events Coordinator

Anna Ho

Member Liaison Officer

Tania Laird

Senior Membership Officer

Alexandra Firth

Database and Website Officer

Nadine Keady

Accounts Assistant

Helen Luther

Membership Coordinator

Leonie Fraser

Membership and Cabling Coordinator

Jane Capizzi

Membership Coordinator

Naz Najafi

Membership Coordinator

Purva Das

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

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President’s Report It is my pleasure to introduce you to the Australian Security Industry Association Limited’s 2017 Annual and Financial Report.

I am pleased to advise that the Association has continued to maintain its position as the industry’s peak representative body throughout Australia and has enjoyed membership growth over the past year.

Among some of the highlights over the past year include:

2018 Gold Coast Commonwealth Games In April, Commissioner Lee of the Fair Work Commission approved the Multi-Employer Enterprise Bargaining (Greenfields) Agreement (MEEBA) to cover 4,200 security officers working at the 2018 Commonwealth Games on the Gold Coast. The MEEBA is the first of its kind for the security industry and was drafted and negotiated on behalf of employers by ASIAL’s Workplace Relations Adviser, Chris Delaney.

The approval was the culmination of over 18 months work by ASIAL and GOLDOC and provides a great incentive for security employers and security officers to play a vital role in a major international sporting event hosted by Queensland and attended by athletes and officials from around the world.

In addition to this, ASIAL has been engaged by the Commonwealth Games Organising Committee to provide an eLearning platform for the 4,200 security officers who will work at the 2018 Games.

Launch of the Individual Professional Recognition program Targeting security professionals committed to the highest standards, the program sets the benchmark for individuals looking to progress their careers and to be recognised by employers, peers and end users. Individuals meeting the entry criteria are eligible to receive the p ostnominal credential of either MASIAL, AFASIAL, FASIAL or FASIAL (Life).

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Life Members

Board Elections

Two new life members were honoured with the Association’s highest accolade, that of life membership. Antony Elliott and Ged Byrnes, were both recognised for their outstanding contribution to the growth and development of the Association.

In November the results of the Board elections conducted by the Australian Electoral Commission were announced.

Strategy Planning Session In February the Association held a strategy planning session involving industry leaders from around the country to determine the key priorities for the Association. It was agreed that the security industry’s role is to assist in the protection of Australian society from security threats.

Among the key priorities identified included:

• To gather industry data and research to enable better informed member planning and decision making; • To more effectively communicate the industry’s capabilities; • To provide leadership in raising compliance and professional standards; • To achieve nationally uniform and consistent security licensing; • Forge greater industry collaboration.

Members of the ASIAL Board have been tasked with championing these priorities to ensure there is an effective strategy put in place to achieve the Association’s goals.

Good Governance Good governance practices is a fundamental part of any successful organisation, including ASIAL’s. During the year the Association through the services of an external consultant undertook a whole of organisation approach to governance. The overall report card was very positive, however a few areas were identified to ensure the Association continues its high level of governance into the future.

Also worthy of note is that the Association continues to actively enforce its Code of Professional Conduct. During the course of the year, the Association’s Disciplinary Committee has convened to consider members alleged to have breached the Association’s Code of Practice. As a result, during the course of the year 27 members were recommended to the Board for expulsion for among other reasons failing to undertake a compliance audit or failing to hold a valid security licence. A further 98 members were expelled for other reasons, including failing to pay their membership fee.

In preparing this report and revisiting the achievements of the Association over the past year, I am reminded of the contribution made by my fellow board members, Convenors, Special Interest Group members and members.

The efforts of members in partnership with our Secretariat are the basis of our Association’s ongoing success.

In closing I would like to give my thanks and gratitude for the continued contribution and effort exerted by the ASIAL team led by Chief Executive Officer, Bryan de Caires, fellow directors, Branch Chairmen, special interest and working groups, without whom the continued success and growth of this Association would not be possible.

Kevin McDonald President

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

Secretary’s Report The past year has been a successful and productive one for the Association.

5-Year Performance Summary (2013-2017) $4.0m $3.5m

As a result, I can advise that the Association returned a stronger than forecast performance for the year, returning a surplus of $77,479.

Through its dedicated Secretariat team, the Association has provided members with access to a broad range of benefits and services, as well as providing strong industry advocacy and representation across a wide range of areas. In addition, the Association played a key role in facilitating the provision of security personnel for the 2018 Gold Coast Commonwealth Games.

ASIAL’s membership subscription income remains strong, with a net increase in the number of members achieved for the year. The Association’s event activities performed well during the year, as did Security Insider magazine and the ASIAL Cabling Registry. Income generated from strategic partnerships also grew strongly over the course of the year. Prudent cost management ensured that overhead expenses for the year were down 5.4% against budget.

The Association has continued its campaign to educate consumers through the contribution of articles to trade publications as well as providing media comment on a range of topical issues. A portion of the member marketing levy revenue raised during the year was spent on consumer awareness activities. The remaining balance will be combined with the member marketing levy revenue for 2017-2018 to fund an extensive consumer awareness campaign promoting the important role the industry performs in the Australian economy.

$3.0m $2.5m

Total income

$2.0m

Total Expenses

$1.5m

Profit/Loss Equity

$1.0m $0.5m $0.0m

2013

2014

2015

2016

2017

Accumulated reserves increased to $3,512,846, further consolidating the Association’s financial position. The solid performance over the past decade has ensured that ASIAL is well placed to provide strong advocacy and deliver new benefits and services to members.

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

Bryan de Caires Chief Executive Officer and Secretary

“

ASIAL’s membership subscription income remains strong, with a net increase in the number of members achieved for the year. The Association’s event activities performed well during the year, as did Security Insider magazine and the ASIAL Cabling Registry.

”

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

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OPERATING REPORT

Membership Our members are at the heart of what we do.

Our Membership

New Member Initiatives

As a membership body, service is core to our organisation and directly impacts our members and our relationship with them. Our focus is on delivering products and services that are tailored to meet the needs of members.

The Association has launched a number of exciting new member initiatives over the past financial year, these include:

Membership grew from 2,594 on 30 June 2016 to 2,623 on 30 June 2017 (2,275 corporate, 150 associate, 188 individual, four affiliate and six life members).

ASIAL has a dedicated membership team whose role it is to provide exceptional customer service and answer queries from members and prospective members. In 2016/2017, the Association welcomed 324 new members across Australia, a 24 per cent increase in new member acquisitions compared to the previous financial year. We strive to actively engage with members and pride ourselves on providing personalised service which members value. This contributed to an improved member retention rate of 89 per cent (85 per cent in the previous financial year).

Some 2016/2017 statistics include: –– 72 per cent of new membership applicants used our online form;

11.5k Page views of ASIAL Member Search Directory

–– Find an ASIAL member search directory had 11,477 page views; –– 65 per cent of ASIAL website users accessed the site via desktop, 30 per cent mobile, 5 per cent tablet; –– ASIAL has 15,000 contact records on its database. 50 per cent of these contacts indicated a gender. Of those, 85 per cent were male vs 15 per cent female.

Marketing emails: (i.e. First Alert member newsletter, industry events update, cabling update, non-member industry newsletter) During the 2016/2017 financial period over 242,000 emails were sent out using our eMarketing platform with an average 42 per cent open rate and 2.7 per cent bounce rate.

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Launched in July 2016, the ASIAL Individual Professional Recognition program sets the benchmark for security professionals looking to progress their careers and to be recognised by employers, peers and end users. Individuals who meet the entry criteria are eligible to receive the p ost-nominal credential of either MASIAL, AFASIAL, FASIAL or FASIAL (Life).

The program has received a positive response, with a number of members opting to join the program to advance their careers.

• ASIAL Security / Jobs Board

324

New members joined

–– 4,385 document downloads between 1 July 2016 – 30 June 2017; –– My account login only area of the website was accessed over 5,200 times;

• ASIAL Individual Professional Recognition Program

6.5k Views on our jobs listing page

The ASIAL Security Jobs Board was launched on 26 September 2016 and allows members to advertise vacant positions for free. Since the launch, the Association received 120 job posts. Job seekers can now search for employment opportunities in the security sector and also subscribe to daily job alerts to notify them of any new job posts. As at the end of June 2017, almost 300 contacts subscribed to ‘Job Alerts’.

Additionally, the traffic to the jobs listing page has grown to over 6,500 views.

VW Finance As the approved Automotive Financier and Fleet Manager for ASIAL members, Volkswagen Financial Services-Fleet (VWFS), offers a range of tailored benefits to ASIAL members for company vehicles. Interested members now have access to an online enquiry form which is available from the ASIAL website and the VW website.

Safe Workplace Management System (SWMS) The ASIAL Safe Workplace Management System is a total WHS system, designed to comply with AS4801 and tailored to the Australian security industry.

Since its launch in October 2014, the system has experienced strong year on year growth, with more and more members using the system.

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

Based on member feedback, the ASIAL Secretariat is in the process of building new SWMS templates for both the electronics and manpower sectors.

The following testimonial from one user reflects the positive feedback we receive about the scheme.

“We are current subscribers of the ASIAL SWM System and find it a very valuable tool in assisting us with our Work Health and Safety obligations. The system is easy to use and replaces our manual templates and it is easy to upload documents. We particularly find most helpful the employee and contractor registration templates with email alerts received for licence expiry dates, allowing us to follow up with the guards regarding their licence details.

The Hazardous Substances Register is also helpful in recording all relevant details for hazardous substances as well as sending email alerts for the MSDS (SDS) issue and expiry date and therefore minimising risks on our work sites.”

Keith Veness - Border/ID Security Pty Ltd

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

The ASIAL eLearning platform More and more members are utilising the ASIAL eLearning platform to gain additional training and personal development for their personal and employee needs. The most popular courses in this financial year were Alcohol and Other Drugs in the Workplace, How to Communicate Effectively, Customer Service, and Handling Angry and Upset Customers.

New ASIAL Platinum members, Aldo and Grace Fabris from Tank Security.

Security professionals, Rob Seth and Arthur Barker were among the first to join the ranks of Fellow within the ASIAL Individual Professional Recognition Program. Pictured here with ASIAL CEO, Bryan de Caires

ASIAL Member Recognition Program The Association now has over 1,000 members participating in the corporate recognition program. The program recognises 20 Platinum Members, 329 Gold Members, 280 Silver Members and 388 Bronze Members.

Queensland Audit and Member Compliance As an approved security industry association in Queensland, ASIAL is required to assess a member’s compliance with its code once every three years. The Queensland Government’s legislative requirements for an audit of all members holding a Queensland security firm licence requires security providers to demonstrate that they follow good business practices and have current policies and procedures in place to run their businesses.

The Association has engaged the services of a chartered accounting firm to conduct compliance audits on behalf of its members. There were 614 members who are required to undertake the Queensland audit, a 6 per cent increase on last year.

During the course of the financial year 227 members were issued with a compliance certificate, five resigned subsequent to audit and 12 ASIAL members operating in Queensland were expelled due to non-compliance of the statutory audit requirement.

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

The member focused approach taken by the Association as related to compliance audits is reflected by the following testimonial: “Thank you, you guys are amazing and so understanding.”

Peter Pearce - ThinkBox Solutions Pty Ltd

Complaints and Dispute Resolution ASIAL continues to actively manage complaints and disputes in accordance with its Complaints and Dispute Resolution Policy and Procedure. In 2016/2017 there were 26 complaints registered with the Association, compared to 14 in 2015/2016.

Of these, 13 related to electronics issues (including failure to provide alarm codes, incorrect installation of CCTV and faulty equipment), six related to manpower (including abusive, and threatening behaviour by security guards), four were concerning award issues and three for unpaid invoices.

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

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OPERATING REPORT

Marketing and Communications Over the past year ASIAL’s marketing and communications team has primarily focused on membership retention, through improved communications, the greater use of social media channels, and the staging of topical industry events and webinars. The response has been positive, with higher levels of member engagement.

Media relations

Email communications

ASIAL remains the ‘go to’ organisation for comment on industry related matters. With the purchase of Meltwater, a media intelligence platform, we were able to determine that ASIAL’s media exposure captured 134 results. This included mentions in The Australian, ABC news, The Huffington Post Australia, The Age, SMH, regional newspapers and a number of trade publications. The Association also contributed to a number of trade publications including Australian GovLink and Clubs and Pubs Manager.

These 134 results translated to a circulation figure of 26,457,141. Articles on Security 2017 and the 2016 Australian Security Industry Awards for Excellence were included as part of these results.

ASIAL contacts members around once a week.

Industry news and regulatory updates are provided fortnightly through the distribution of our e-newsletter, First Alert. We also send out state specific event invitations and information pertaining to new member benefits as needed.

ASIAL’s email open rate increased from 38% in 2015-16 to 43% in 2016-17. There has been higher web traffic reflecting higher engagement with members.

2016 Security Expo

2016 Security Awards Dinner

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ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

2016 Security Award Winners

1.3m Impressions across social media

Security Insider magazine Security Insider is a bi-monthly magazine that, over the past 22 years, has established a track record of providing accurate and timely information to security professionals.

Approximately 3,000 copies are printed and distributed to members and subscribers.

The magazine also has an online distribution of 10,000. The strong circulation figure for the magazine has seen growing advertising interest over the past year.

Events

2016 Security Award Winners

96.4k Unique visits to the ASIAL website in 2016-17

4.5k Security professionals attended #SECURITY2016

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

The Association’s strong calendar of events, including local and national industry events held across the country have been well attended.

A diverse range of speakers and topics covered have ensured that members are kept up to date with what is happening in the industry.

#SECURITY2016 In July 2016, the Security Exhibition and Conference celebrated its 31st anniversary as Australasia’s premier security event.

Held at the Melbourne Convention and Exhibition Centre the event attracted over 4,500 industry professionals, which included a sold out conference and successful gala dinner at the spectacular Regent Theatre.

#SECURITYAWARDS In 2016, ASIAL organised the 21st annual Australian Security Industry Awards for Excellence in conjunction with the 2nd annual Australian Outstanding Security Performance Awards. Nominations for the awards were up on the previous year, so too were the numbers of those attending the celebratory awards dinner at Sydney’s Westin Hotel.

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OPERATING REPORT

Social media ASIAL has certainly made an impression on social media – across Facebook, Twitter and LinkedIn. In 2016-17 ASIAL amassed 2,374 Facebook followers, an increase of 54% on the previous year. For Twitter ASIAL generated 638 followers, an increase of 24% on the previous year whilst for LinkedIn 3,803 followers were gained, an increase of 10% on the previous year. It is pleasing to see such strong engagement across all channels.

In March, ASIAL subscribed to Hootsuite, a social media management system to track and manage its social network channels from a single dashboard.

Breakfast briefings ASIAL’s Industry Breakfast Briefings attracted close to a total of 500 participants over the course of the year. Artibus Innovation, NSW Police, VIC Police, Crown, the 2018 Gold Coast Games Organising Committee and Federation Square were just some of the organisations to address members.

WA industry breakfast briefing

Website

The ASIAL website www.asial.com.au attracted an increase of 13.46% unique visitor sessions during 2016-2017.

Among the key website statistics for the year included:

96,444

Unique visitors

464,294

3.34

Pages per session

Page views

2:59

139,125

Average session time

User sessions

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ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

Electronics ASIAL has continued to engage with government, industry and members in addressing a wide range of issues and providing advice. Likewise, we continue to support members through our involvement on a number of influential committees.

Standards ASIAL has participated in supporting standards development for the security industry and are currently committee members of Australian Standards and the International Electrotechnical Commission (IEC). During June 2017 Australian Standards hosted the inaugural IEC committee at their offices in Sydney. Delegates came from around the world to participate in the annual IEC Technical Committee 79 meeting. Industry experts contributed to workgroups covering Access Control Systems, CCTV (now renamed IP Video Surveillance Systems (VSS) and Building Intercom Systems. These workgroups play an important role in developing future standards.

National Broadband Network ASIAL continued to engage with the National Broadband Network (nbn) to provide information for members on the deployment of the national broadband network. In June 2017 the nbn was on target to reach five million homes and businesses that will now be able to connect to the national broadband network.

The nbn working with approved service providers will replace the existing landline phone and internet services in Australia. nbn will be using a Multi Technology Mix (MTM). This major change in direction will eliminate nbn equipment from the customer’s premises, where nbn will only be offering a VOIP solution and there will be no battery backup or UNI-V ports. It is vitally important that stakeholders in the migration of back to base security and medical alarms be informed about the nbn’s developments and communicate with their customers to offer solutions that maintain the security system’s integrity. No matter which type of technology is used to deliver the network it’s crucial that home and office wiring has been well planned.

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

ASIAL participates in supporting standards development for the industry ASIAL General Manager, John Fleming with Committee member, Les Simmonds at the IEC meeting

ASIAL continues to provide information to members and advocate that security installation work must be carried out by a licenced security technician that holds an Australian Communications and Media Authority (ACMA) cablers registration card with the appropriate cabling competencies.

5,843 Total cablers registered with ASIAL

National Alarm Response Protocol ASIAL has continued to engage with the National Emergency Communications Working Group (which includes communications representatives from Police, Fire and Ambulance services across Australian and New Zealand) to progress development of a national alarm response protocol. A standardised national response will provide an opportunity for emergency service operators and the security industry to work together for the benefit of all stakeholders. This national protocol is designed to standardise police classification of alarms and the response to alarm activations. All police triple zero services have now provided final comment and the protocol is envisaged to be finalised in the fourth quarter of 2017.

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OPERATING REPORT

+2.29% Cable Registrations

Monitoring Centre Certification

2016-17

5,843 2015-16

5,712

The Association continues to operate the highly respected monitoring centre certification program in accordance with Australian Standard 2201-2. The ASIAL scheme seeks to provide customers with the reassurance that the standards applied at a monitoring centre are independently audited on a regular basis.

All applications can now be managed online through ASIAL’s updated website.

ASIAL Cabling Registry Acting on behalf of the Australian Communications and Media Authority (ACMA) ASIAL continues to provide cablers with advice and support to comply with cabling registration requirements.

ACMA is responsible for setting out the regulatory requirements for registration and installation practices of cablers.

ASIAL’s cabling registry has been kept busy responding to cablers who wish to update their competencies and questioning how they should go about gaining competencies to continue legally working in the industry. Registered Training Organisations have responded to the changes, offering courses to upgrade from ‘Restricted’ to ‘Open’ registration and also gain specialised cabling competencies for Fibre, Structured and Coaxial. These qualifications have been deemed essential for the development of a skilled labour force that can work on IP technologies and the national broadband network.

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During the 2016/2017 financial year cabling registrations grew by 131 or 2.29% (up from 5,712 in 2015/2016). The majority of cablers (5,180) are opting for ‘Open’ registration with many (1,449) gaining the additional specialised competencies for Coaxial, Structured and Optical fibre cabling work. Numbers for the more limited ‘Restricted’ cabling registration continued to decrease (648), with the remaining balance (15) being for ‘Lift’ work.

ASIAL continues to engage with ACMA and other cabling registrars to promote ongoing compliance and training in this sector. Because of the significant changes in the operating environment for customer cabling the ACMA have been conducting Priority Compliance Audits on sites across Australia. A number of poor quality cabling practices have been identified that may lead to poor consumer experiences with nbn services.

The registered cablers website is growing in the number of views and continues to provide vital information to industry and consumers about what to do in preparing for the national broadband network. After extensive communication with ACMA and nbn both organisations are now actively promoting the website as the place to go for unbiased information on the national broadband network and smart cabling.

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

Manpower The greatest challenge for the manpower sector of the security industry remains our ability to attract people who wish to join our ranks. Since 2015 and the Australian Skills Quality Authority (ASQA) review into the quality of training in the security industry, ASIAL has represented and presented an industry position to regulators, governments and bodies of enquiry and review regarding training, licensing and compliance.

It is frustrating that we still find training requirements the ‘hot topic’ of discussion with the finalisation of the review into the security industry training package not expected until late 2017 or early 2018.

Artibus Innovation, the appointed Skills Service Organisation (SSO) with carriage of the review, has commenced industry consultation into training requirements and the identification and development of the units of competency suitable for licensing purposes. Artibus has also included licence requirements in its review to reframe licence categories nationally. ASIAL maintains active representation and participation on the Industry Reference Committee and Technical Advisory Group to ensure a balanced response and an outcome that is reflective of the requirements of our industry.

In 2016 ASIAL presented to government and regulators an industry position of 130 hours of auditable training covering 15 units of competency for entry level training for unarmed guards and crowd controllers.

This position remains under threat with a recommendation to government by ASQA1 of regulated hours for certificate training.

ASIAL continues to represent industry in the review of the security industry training package

The recommendation has identified a range of hours for certificate training from 600 to 1200 hours (17-34 weeks) for a Certificate II and 1200 to 2400 hours (34-68 weeks) for a Certificate III. The recommendation by ASQA to government does include a sensible and proportionate changes to the VET architecture that were warranted, and industry may set specific training and assessment delivery requirements, including course duration requirements, in the relevant training package2.

The ASIAL training position for licensing purposes for an unarmed guard and crowd controller was recognised in the 170 page ASQA report to government3 and a position that the security industry should maintain.

Jeremy Rose, Artibus Innovation

ASIAL will continue to represent industry in the review of the training package and to maintain a position and approach that is sensible and proportionate to industry demands and delivery of a professional and safe security service.

1 Australian Skills Quality Authority’s (ASQA’s), A review of issues relating to unduly short training, June 2017.

2 Ibid 109.

3 Ibid 141.

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

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OPERATING REPORT

Workplace Relations Workplace Relations matters affect all of ASIAL’s members to some degree.

ASIAL provides all corporate members with access to Workplace Relations advice on individual issues such as assisting with Enterprise Bargaining Agreements, disciplinary and dismissal matters, award and rates of pay enquiries, subcontracting, employment contracts or dealing with the Fair Work Ombudsman (FWO).

At a broader industry level ASIAL’s Workplace Relations Advisor prepares submissions on Modern Award changes, legislative changes and decisions of courts and tribunals that affect the security industry at a state and federal level.

Throughout 2016/17 we have continued to provide webinars and bulletins and other learning opportunities to educate and inform members on their rights and responsibilities as employers.

Major Activities for 2016/17 ASIAL’s application to vary its rules In 2016 ASIAL made an application to the Fair Work Commission (FWC) for a variation to our eligibility rules removing unnecessary restrictions on some security businesses seeking to become corporate members. After some objections by the Australian Industry Group our application with minor alteration was approved by Senior Deputy President, Hamberger on 21 June 2017 allowing, “Companies, and enterprises, which are substantially e ngaged in the provision of security products or services to the community for reward and as such are involved in the Private Security Industry or are otherwise required to be a member of an ‘approved security industry association’ or ‘approved security industry organisation’ for the purposes of obtaining a security license under a law of any Australian jurisdiction” access to corporate membership.

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Four year Modern Award reviews The Modern Award reviews have continued throughout 2016/2017 with most of the FWC’s time being spent on common issues such as plain language re drafting, public holidays, annual leave, penalty rates, family and domestic violence provisions and casual and part-time employment.

The FWC have late in June 2017 asked interested parties to make submissions on the Exposure Draft of the Security Services Industry Award 2015. ASIAL has made submissions seeking redrafting of clauses relating to payment of outstanding leave on termination, base rates, penalty rates and suggestions concerning various additional definitions to create clarity and reduce ambiguity.

Fair Work Ombudsman/ASIAL Memorandum of Understanding (MoU) ASIAL and the FWO have now met formally on several occasions to consolidate our working relationship, which has been valuable in promoting and protecting the interests of both individual members and the industry as a whole. Topics of discussion and action have included FWO’s enforcement activities in the Security Industry, Supply Chain issues, progress of the Local Government Procurement Initiative and FWO involvement in Security 2017 and a presence at the Commonwealth Games.

Peter Beattie, GOLDOC Chair acknowledges ASIAL’s efforts at Games security launch

ASIAL and FWO are scheduled to enter into a new MoU in July 2017.

Local Government Procurement Initiative (LGPI) The LGPI is nearing completion of the compliance phase with FWO conducting audits of local government contracts with private security providers. The schedule is behind projected time lines and Fair Work advises that a detailed report will now be made public in the second half of 2017. It is anticipated that several councils will be put on notice about their procurement practices.

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

Portable Long Service Leave Proposal (PLSL) – Victoria

ASIAL re-signed its MoU with the Fair Work Ombudsman

ASIAL presented both written and oral submissions to the Victorian State Parliament’s Committee and most recently the consultants seeking comment on the development of a scheme for the implementation of PLSL in Victoria. ASIAL has made submissions strongly opposing the introduction of PLSL for the security industry.

Commonwealth Games 2018

ASIAL worked with GOLDOC to ensure the provision of private security to the GC2018 Games

As many will know ASIAL has been working closely with the Commonwealth Games Organising Committee (GOLDOC) on the procurement options for contract security for the Commonwealth Games. ASIAL has also been instrumental in drafting and negotiating with United Voice Queensland Branch, a Multi-Employer Enterprise Bargaining (Greenfields) Agreement (MEEBA). The MEEBA was filed in and approved by the FWC and will form the basis for pay and conditions for the 4,200 security officers engaged to provide private security at the Games.

This is the first MEEBA to be created in the security industry and is specifically designed to cater for the unique conditions that arise from an event of this magnitude, drawing on several major Australian security providers and security personnel from most state and territories in Australia.

ASIAL as the peak security organisation in Australia has worked closely with GOLDOC for over two years providing advice and practical assistance to ensure the provision of private security to the Games operate as smoothly and efficiently as possible.

Annual Wage Review In June 2017 the FWC handed down its decision in the Annual Wage Review. The increase took many by surprise, being around 1% higher than most predictions. From the first full pay period after 1 July 2017, employees paid minimum award rates covered by Modern Awards were entitled to a wage increase of 3.3% and a respective increase in most allowances.

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OPERATING REPORT

Advocacy and Regulatory Affairs Security organisations continued to be challenged with the demands of business compliance and the complexities of jurisdictional regulation and legislation.

ASIAL engaged with regulators and governments to provide member support including broader industry representation and member representation where required and as considered on a case by case basis. ASIAL was pleased to have on two occasions during the year, the opportunity to address meetings of the Security Industry Regulators Forum (SIRF – where state/territory security industry regulators meet) on security industry concerns and provide an industry reflection and future direction.

The invitation to ASIAL to address these meetings reflects the regards that ASIAL is held as the national peak industry body.

ASIAL reconfirmed to the SIRF its position on entry level training for unarmed guard and crowd controller licensing of 130 auditable hours of training covering 15 units of competency.

ASIAL again raised with regulators the concern over the legislated permitted process for individuals holding an ABN, in that it permits them to be engaged as sole trader(s)/contractor(s) in Victoria and Queensland.

The regulators response remains that until they have evidence of abuse of the legislated position, they are reluctant to impose further requirements on individuals.

Similar concerns were raised and response received regarding the regulator acceptance of couriers collecting cash for client banking services and where there is no guarding and protecting, there is no security activity and therefore no licence or probity requirements.

ASIAL will continue to raise concerns over such accepted practices.

Regulators have increased their activity in identifying unlicensed security operators, however industry concern remains over the continued presence of organisations and individuals providing a security activity without the appropriate security licence or registration. Although many such incidents are reported directly to regulators by industry participants, in support of concerns raised by ASIAL members, ASIAL has established a register of organisations allegedly operating without a licence or registration. ASIAL will collate the information and provide a monthly report to regulators.

Security organisations that bureau their monitoring services have been the subject of regulator licensing inspections and investigations over the last 12 months.

Regulators have recognised that many alarm installers who also provide bureau monitoring for their clients, have not held the appropriate licence or licence category that includes alarm monitoring. In most

ASIAL actively participated in legislative reviews representing members

14

jurisdictions, a licence or registration is required to install a security system, however the monitoring of an alarm system is a guarding activity and if an organisation provides that service even by subcontract, they are required to hold the appropriate licence category. The outcome of regulator inspections and investigations resulted in many warnings, time for licence amendments and application process and several prosecutions.

The Victorian Regulator, the Licensing & Regulation Division of the Victoria Police should be congratulated on the considerate manner in their dealing with organisations in breach of the legislation.

ASIAL engaged with regulators and government to advocate for the industry

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

The review of the Western Australian Security and Regulated Activities (Control) Regulations identified a historical anomaly of the classification of Class 2 security installer and consultant licence with regard to repair, maintenance and advice of certain security equipment.

The position and legislative interpretation restricts security installers and consultants from undertaking some activities without undertaking a required course in locksmithing. ASIAL has received supportive comments from the Western Australian Regulator for recommended amendments following submission to the Western Australian Police Minister.

Western Australia Police introduced an additional level of assessment for applicants applying for a security officer and crowd controller licence. The assessment follows the completion of the mandated certificate level training and prior to the licence application.

The process increases cost for applicants entering the security industry, however the regulator considered the measure appropriate following criticism of the performance of approved Registered Training Organisations.

ASIAL continued to raise national licensing as an industry concern. Regulators recognise the impact on industry participants particularly in compliance costs and national operators and those who work at State border locations.

No jurisdiction is willing to lose its sovereign rights over security licensing.

ASIAL believes with the high concern over public safety and the increase in international and national terror incidents, it is appropriate for the security industry to push for the suitable management of security companies and personnel in a national licensing model.

ASIAL will continue to challenge the areas that impact upon the legitimate and compliant operators of our industry.

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

15

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

Chief Executive Officer Bryan de Caires Chief Executive Officer and Secretary Bryan has more than 25 years of senior management experience across a range of industry sectors. He joined the Association in 2000.

Directors Rod Anderson

Brian Foster

Security and Training Consultant, Standsure Security Consulting

Owner and Principal of PerspectiveIQ Pty Ltd

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

16

Brian’s career in the security industry spans over 40 years working as a senior manager and Director. He has over 15 years of cumulative service as a Director and Vice President of ASIAL.

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

ASIAL 2016-17 Highlights

324

4,500

5,843

2,623

$77k+

New ASIAL members joined in 2016-17

Security professionals attended #SECURITY2016

Cablers registered with ASIAL

Members

Surplus generated

John Hadden

Rachaell Saunders

Michael Smith

Robin Stenzel

Managing Director, Top Tech Security Systems (Aust) Pty Ltd

Chief Executive Officer, National Protective Services

Managing Director, Prosegur

CEO, STE Advantage

John brings to the Board over 35 years of experience working in the security industry.

Rachaell has more than 30 years of experience in the security industry.

She founded National Protective Services in 1988 and was appointed to the Board in 2015.

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

Michael has 20 years of experience in the security industry in the cash management sector. His drive is to create a security industry that is highly respected.

He has worked for both Australian and international companies, has a Bachelor of Commerce and is a CPA.

Robin has held Board roles with technology and investment companies and has over 20 years of experience with electronic control systems.

17

FINANCIAL REPORT

FOR THE YEAR ENDED 30 JUNE 2017

Directors’ Operating Report Your directors submit this operating report for the year ended 30 June 2017. 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 16 and 17 of this Annual and Financial Report.

•

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

•

Offering practical member benefits and services.

Measurement of the Association’s performance

Rod Anderson

Brian Foster

John Gellel (part)

John Hadden (part)

The Association measures performance through member acquisition and retention rates; growth in member subscription and non-subscription revenue; event attendance; media exposure and profile; and financial performance against budget.

Chris Luhrmann (part)

Kevin McDonald

Corporate Structure

Mike McKinnon (part)

Neil McLean (part)

Rachaell Saunders

Michael Smith (part)

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.

Director

Robin Stenzel (part) Following Board elections conducted by the Australian Electoral Commission in November 2016, John Hadden, Michael Smith and Robin Stenzel were elected (replacing Mike McKinnon, Neil McLean and John Gellel). In February 2017 Chris Luhrmann resigned as Vice President of the Association.

Key objectives of the Association •

To promote a positive image of the industry;

•

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

•

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

•

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

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

Providing advocacy through engagement with regulators and through industry submissions;

•

Providing media comment on topical industry issues;

•

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

•

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

•

Promoting the use of ASIAL members through consumer awareness campaigns;

•

Providing professional development opportunities and industry certification schemes;

•

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

18

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 2017 for the purposes of section 254 (2) (f) of the Fair Work (Registered Organisations) Act 2009 was 2,623.

Employees The company employed 14 employees as at 30 June 2017 (2016: 14 employees).

Rights of Members to resign In accordance with section 174 of the Fair Work (Registered Organisations) Act 2009, a member may resign from membership of the Organisation by written notice addressed and delivered to the Chief Executive Officer as per rule 11 of the ASIAL Constitution.

Details of Trustee of Superannuation Entities No member of the Board was: i. A trustee of a superannuation entity of an exempt public sector superannuation scheme or ii. A director of a company that is a trustee of a superannuation entity or exempt public sector superannuation scheme where the criterion for the member being a trustee or director is that the member is an officer or member of ASIAL.

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

Operating Results for the Period and Review of Operations

Auditors

The Association earned a net profit for the year of $77,479 (2016: $84,412). The Association’s reserves grew to $3,512,846.

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

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 the Association has invested in providing members with access to an eLearning platform and ongoing enhancements to its Customer Relationship Management system.

Directors’ Emoluments and Transactions

Significant Changes in the State of Affairs

No emoluments have been received or are due and receivable by Directors from the company or any related body corporate.

Directors Meetings Attendance by each director at board and board committee meetings, held during the period each director held office this year, is shown below. The number of meetings is in brackets.

No significant change in the state of affairs of the Company occurred during the financial year.

Directors Attendance at Board meetings Rod Anderson (5/5)

Brian Foster (4/5)

Significant Events after Balance Date

John Gellel (2/2)

John Hadden (3/3)

No significant events have taken place after the balance date.

Chris Luhrmann (3/3)

Kevin McDonald (5/5)

Likely Developments and Expected Results

Mike McKinnon (2/2)

Neil McLean (0/2)

Directors have budgeted for a surplus of $3,760 for the coming year, which includes a provision for 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.

Rachaell Saunders (5/5)

Michael Smith (2/3)

Robin Stenzel (3/3) Attendance at National Reference Group meeting Rod Anderson (1/1)

Brian Foster (1/1)

John Gellel (1/1)

Chris Luhrmann (1/1)

Loans, grants and political donations

Mike McKinnon (1/1)

Kevin McDonald (1/1)

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

Neil McLean (0/1)

Rachaell Saunders(1/1)

John Fleming (0/1)

Peter Johnson (0/1)

Proceedings on behalf of the company

Rob Seth (1/1)

Suzette Po-Williams (1/1)

Chris Delaney (1/1

Chevelle Millhouse 0 (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.

Darryl Milling – representing Derek Hagstrom (1/1)

Indemnification and Insurance of Directors and Officers

Arthur Barker (guest)

During the year, the company has paid a premium in respect of a contract insuring directors and officers against: (a) liability arising from wrongful acts committed in their capacity as directors and officers of the company, but excluding dishonesty, fraud, malicious conduct or wilful breach of duty; and (b) the costs of legal representation in relation to such liabilities. The premium paid was $11,266, which also includes cover for the company in respect of loss it suffers as a result of wrongful, wilful or fraudulent acts of its directors, officers and employees. This contract complies with Section 199B of the Corporations Act 2001.

A copy of the auditors’ independence declaration, as required under section 307C of the Corporations Act 2001, is set out on page 21.

Proceedings on Behalf of the Company

Kevin McDonald Michael Smith Director Director

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

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

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

Crows Nest, 6 September 2017

19

FINANCIAL REPORT

FOR THE YEAR ENDED 30 JUNE 2017

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 24 to 39 are in accordance with the Reporting Guidelines or Part 3 of Chapter 8 of the Fair Work (Registered Organisations) Act 2009 and: (i) c omply with Accounting Standards and the Corporations Regulations 2001; and (ii) g ive a true and fair view of the company’s financial performance, financial position and cash flow as at 30 June 2017 and of its performance for the year ended on that date; (b) in the opinion of the directors there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. (c) during the financial period to which the General Purpose Financial Report relates and since the end of that year: (i) m eetings of the committee of management (the Board) were held in accordance with the Rules of the reporting unit (ASIAL); (ii) t he financial affairs of the reporting unit have been managed in accordance with its Rules; (iii) t he financial records of the reporting unit have been kept and maintained in accordance with RO Act and its related Regulations; and (iv) N o member of the Association or a Registrar has made a request for information under section 272 of the RO Act; and (v) there has been no order for inspection of financial records made by the Commission under section 273 of the RO Act. (d) no revenue has been derived from undertaking recovery of wages activity during the reporting period.

On behalf of the Board

Kevin McDonald Michael Smith Director Director Crows Nest, 6 September 2017

20

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

Auditor’s Independence Declaration I declare, to the best of my knowledge and belief that during the year ended 30 June 2017 there have been: (i) n o contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (ii) n o contraventions of any applicable code of professional conduct in relation to the audit.

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

GD Wood, FCA #18237 Holder of a current Public Practice Certificate Partner North Sydney, 6 September 2017

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

21

FINANCIAL REPORT

FOR THE YEAR ENDED 30 JUNE 2017

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

Opinion We have audited the financial report of Australian Security Industry Association Limited (the reporting unit), which comprises the statement of financial position as at 30 June 2017, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended 30 June 2017, notes to the financial statements, including a summary of significant accounting policies; and the directors’ operating report.

In my opinion, the accompanying financial report presents fairly, in all material aspects, the financial position of the reporting unit as at 30 June 2017, and its financial performance and its cash flows for the year ended on that date in accordance with: a) the Australian Accounting Standards; and b) a ny other requirements imposed by the Reporting Guidelines or Part 3 of Chapter 8 of the Fair Work (Registered Organisations) Act 2009 (the RO Act).

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

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

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

Information Other than the Financial Report and Auditor’s Report Thereon

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

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

Responsibilities of the Board for the Financial Report The Board of the reporting unit is responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the RO Act, and for such internal control as the Board determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Board is responsible for assessing the reporting unit’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board either intend to liquidate the reporting unit or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Report Our objective is to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.

The directors are responsible for the other information. The other information obtained at the date of this auditor’s report is in the Operating Report accompanying the financial report.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

22

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

We declare that we are an approved auditor, a member of Chartered Accountants Australia and New Zealand and hold a current Public Practice Certificate.

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

Opinion on the Remuneration Report

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

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board.

• Conclude on the appropriateness of the Board’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Reporting Unit’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.

However, future events or conditions may cause the reporting unit to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We have audited the Remuneration Report included in the statement of comprehensive income and note 3 of the financial report for the year ended 30 June 2017.

In our opinion, the Remuneration Report of the company for the year ended 30 June 2017, complies with section 300A of the Corporations Act 2001.

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

Foster Raffan

GD Wood, FCA Partner AA2017/31 Level 6, 8 West Street, North Sydney NSW 2060 6 September 2017

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the reporting unit to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the reporting unit audit. We remain solely responsible for our audit opinion.

We communicate with the Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

23

FINANCIAL REPORT

FOR THE YEAR ENDED 30 JUNE 2017

Statement of Comprehensive Income FOR THE YEAR ENDED 30 JUNE 2017 Note Revenue – operating – investment

2 2

Depreciation Other expenses

2,396,522

2,484,497 108,411

3

(1,307,202)

(1,273,919)

10

(26,423)

(43,961)

4

(461,493)

(482,676)

77,479

84,412

–

–

77,479

84,412

5

Other comprehensive income

24

$

(707,940)

PROFIT FOR THE YEAR TOTAL COMPREHENSIVE INCOME FOR THE YEAR

$ 115,773

PROFIT BEFORE INCOME TAX Income tax expense

2016

(639,698)

Expenses directly related to operating activities Employee expenses

2017

– 16

77,479

– 84,412

The accompanying notes form part of these financial statements

Statement of Financial Position FOR THE YEAR ENDED 30 JUNE 2017 Note

2017

2016

$

$

CURRENT ASSETS Cash and cash equivalents

6

2,380,022

2,188,935

Trade and other receivables

7

460,630

400,545

Other current assets

8

98,580

106,582

2,939,232

2,696,062

TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment

10

2,582,552

2,608,975

TOTAL NON-CURRENT ASSETS

2,582,552

2,608,975

TOTAL ASSETS

5,521,784

5,305,037

11

1,830,683

1,720,955

Employee provisions

12

129,524

128,822

Centre for Compliance fund

13

17,577

17,577

1,977,784

1,867,354

CURRENT LIABILITIES Trade and other payables

TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Employee provisions

12

31,154

2,316

TOTAL LIABILITIES

2,008,938

1,869,670

NET ASSETS

3,512,846

3,435,367

3,227,804

3,150,325

285,042

285,042

3,512,846

3,435,367

EQUITY Retained earnings Reserve TOTAL EQUITY

The accompanying notes form part of these financial statements

1(0)

25

FINANCIAL REPORT

FOR THE YEAR ENDED 30 JUNE 2017

Statement of Changes in Equity FOR THE YEAR ENDED 30 JUNE 2017

Balance at 1 July 2015 Comprehensive income for the year Balance at 30 June 2016 Comprehensive income for the year Balance at 30 June 2017

26

Retained Earnings

Property revaluation reserve

Total

$

$

$

3,065,913

285,042

3,350,955

–

84,412

285,042

3,435,367

–

77,479

285,042

3,512,846

84,412 3,150,325 77,479 3,227,804

The accompanying notes form part of these financial statements

Statement of Cash Flows FOR THE YEAR ENDED 30 JUNE 2017 Note

2017

2016

$

$

CASH FLOW FROM OPERATING ACTIVITIES Receipts from members and others

2,523,453

2,539,896

Payments to suppliers and employees

(2,387,571)

(2,554,984)

2

55,205

54,654

16

191,087

39,566

Interest received Net cash generated from operating activities CASH FLOW FROM INVESTING ACTIVITIES Movement in property, plant & equipment

–

127,361

Net cash (used in) investing activities

–

127,361

CASH FLOW FROM FINANCING ACTIVITIES Payment from Centre for Compliance Fund

13

–

–

–

–

Net cash (used in) financing activities 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

The accompanying notes form part of these financial statements

6

191,087

166,927

2,188,935

2,022,008

2,380,022

2,188,935

27

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

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

(c) Income Tax

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(d) Cash and Cash Equivalents

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.

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 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.

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

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

None of the new standards and amendments to standards that are mandatory for the first time for the financial year beginning 1 July 2016 affected any of the amounts recognised in the current period or any prior period and are not likely to affect future periods.

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.

The financial statements were authorised for issue on 6 September 2017 by the directors of the company.

Members’ and other subscriptions or fees are accounted for on an accrual basis when invoiced and recognised as income in equal monthly amounts over the period to which they apply.

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.

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.

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.

Accounting Policies (a) Revenue Recognition

Income received and expenses incurred in advance of activities are recognised when the activity is completed.

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

All revenue is stated net of Goods and Services Tax (GST). (b) Development of New Services Costs of developing new services are expensed as incurred.

28

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

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in fair value (i.e. gains or losses) being recognised in profit or loss.

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

Depreciation Rate

Buildings – straight line basis

2.5%

Office equipment – diminishing value basis

10% – 66.7%

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

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the statement of comprehensive income.

When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. (g) Leases Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are recognised as expenses on a straight-line basis over the lease term. (h) Financial Instruments

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

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

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

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

Financial assets at fair value through profit or loss Financial assets are classified at ‘fair value through profit or loss’ when they are held for trading for the purpose of 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

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

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

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

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

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

Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial liability, which is extinguished or transferred to another party and the fair value of consideration paid, including the transfer of noncash assets or liabilities assumed, is recognised in profit or loss. (i) Impairment of Assets At the end of each reporting period, the entity reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, 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

29

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities, which are recoverable from or payable to the ATO, are presented as operating cash flows included in receipts from customers or payments to suppliers.

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.

(n) Comparative Figures Where required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. (o) Critical Accounting Estimates and Judgments The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the company.

(j)Trade and other payables Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the company during the reporting period which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability. (k) Employee Benefits Provision is made for the company’s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year 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.

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 through to 2017. (p) Economic Dependence The company is dependent on being recognised as the peak national body representing the interests of the security industry.

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.

30

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

2 REVENUE 2017 $

2016 $

1,524,307

1,601,774

–

–

Revenue from operating activities Members’ subscriptions Levies Grants and/or donations

–

–

112,180

105,573

Member marketing fee

122,065

122,949

Cabling providers registrations

150,780

146,188

Magazine

106,206

82,838

Breakfast briefings

38,645

35,353

Grading, seminars and workshops

34,996

33,764

Insurance support

47,578

47,105

Special events

78,571

70,540

Consultancy

9,300

79,050

82,309

68,500

–

855

Statutory compliance

58,025

56,097

WHS income

21,225

16,873

5,891

6,317

Exhibition, conference and seminars

Strategic partnership Technician certification

ELearning income

4,444

10,721

2,396,522

2,484,497

Rental income

60,568

53,757

Interest

55,205

54,654

Total revenue from non-operating activities

115,773

108,411

2,512,295

2,592,908

Wages and salaries

464,211

450,531

Superannuation

44,100

42,801

Leave and other entitlements

25,543

1,434

Separation and redundancies

–

–

9,600

9,650

543,454

504,416

656,501

664,425

61,648

63,100

Leave and other entitlements

3,997

161

Separation and redundancies

–

–

41,602

41,817

763,748

769,503

1,307,202

1,273,919

Miscellaneous income Total revenue from operating activities Revenue from investment activities

Total revenue from ordinary activities 3. EMPLOYEE BENEFITS Office holders

Other employee expenses Total Employees other than office holders Wages and salaries Superannuation

Other employee expenses Total Total employee expenses

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

31

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

4. OTHER EXPENSES 2017 $

2016 $

25,000

24,000

6,500

6,000

–

1,000

31,500

31,000

– Allowances for meetings

–

–

–- Compulsory levies

–

–

–- Consideration to employers for payroll deductions

–

–

95,653

89,015

7,410

2,698

– Office expenses

103,135

105,318

– Travel expenses

65,627

63,912

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

– Information communications technology – Meeting expenses

271,825

260,943

Affiliation fees

–

–

Bad debts written off

–

5,000

2,148

10,283

Capitation fees

–

–

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

–

–

Donations – Total paid that exceeded $1,000

–

2,500

Finance costs

–

–

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

–

–

Grants – Total paid that exceeded $1,000

–

–

127,451

123,000

Industry research

–

–

Legal costs – litigation

–

–

14,096

7,339

7,815

20,835

Bank charges

Industry relations service

Legal costs – other legal matters Marketing expenses Miscellaneous expenses Net loss from sale of assets Penalties via RO Act Total other expenses

6,658

6,872

–

14,904

– 461,493

– 482,676

5. TAX EXPENSE The company is exempt from income tax from 1 July 2010 as a result of being registered as an employer organisation under the Fair Work (Registered Organisation) Act 2009.

6. CASH AND CASH EQUIVALENTS Current Cash at bank and on hand

511,030

236,396

Short-term bank deposits

1,868,992

1,952,539

2,380,022

2,188,935

$5,531 (2016 $2,127) of the short-term bank deposits are bonds paid to the company by tenants.

32

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

7. TRADE AND OTHER RECEIVABLES

Current Trade receivables Less: provision for doubtful debts

Provision for doubtful debts as at 30 June 2016

2017 $

2016 $

470,630

431,788

(10,000)

(31,243)

460,630

400,545

31,243

5,000

–

31,243

Written off

(21,243)

(5,000)

Provision for doubtful debts as at 30 June 2017

10,000

31,243

Charge for year

Credit Risk – Trade Receivables The company does not have any material credit risk exposure to any single receivable or group of receivables. The following table details the 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

22,331

2,295

–

20,036

31-60 days

362,104

1,432

14,488

346,184

61-90 days

16,302

4,417

11,885

–

>90 days

31,052

23,099

7,953

–

431,789

31,243

34,326

366,220

<30 days

41,634

–

–

41,634

31-60 days

384,288

–

34,893

349,395

61-90 days

27,502

366

27,136

–

>90 days

17,206

9,442

7,764

–

470,630

9,808

69,793

391,029

2016

2017

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 $10,000.

8. OTHER ASSETS Current Prepayments

98,580

106,582

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

33

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

9. KEY MANAGEMENT PERSONNEL REMUNERATION 2017

2016

$

$

464,211

450,531

55,914

57,834

520,125

508,365

Superannuation

44,100

42,801

Total post employment benefits

44,100

42,801

Long service leave

51,957

38,101

Total other long-term benefits

51,957

38,101

Short-term employee benefits Salary Annual leave accrued Total short-term employee benefits Post employment benefits

Other long-term benefits

Termination benefits

– – 616,182

589,267

2,500,000

2,500,000

(2,924)

(1,464)

2,497,076

2,498,536

10. PROPERTY, PLANT & EQUIPMENT Freehold land and building – at independent valuation – July 2016 Less: accumulated depreciation Office equipment, furniture and fittings – at cost Less: accumulated depreciation Total property, plant and equipment

298,751

298,751

(213,275)

(188,312)

85,476

110,439

2,582,552

2,608,975

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

Land & Building $

Office Equipment & Software $

Total $

2,500,000

165,808

2,665,808

2016 Balance at the beginning of the year Additions at cost

–

2,181

2,181

Disposals

–

(15,053)

(15,053)

(1,464)

(42,497)

(43,961)

2,498,536

110,439

2,608,975

2,498,536

110,439

2,608,975

Additions at cost

–

–

–

Disposals

–

–

–

(1,460)

(24,963)

(26,423)

2,497,076

85,476

2,582,552

Depreciation Carrying amount at end of year 2017 Balance at the beginning of the year

Depreciation Carrying amount at end of year

34

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

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

Date of valuation

Level 1

Level 2

Level 3

$

$

$

Fair value hierarchy at 30 June 2016 Assets measured at fair value Freehold land and building

2,498,536

–

–

Total

2,498,536

–

–

–

–

–

Freehold land and building

$2,497,076

–

–

Total

$2,497,076

–

–

–

–

–

Liabilities measured at fair value Total

Fair value hierarchy at 30 June 2017 Assets measured at fair value

Liabilities measured at fair value Total

11. TRADE AND OTHER PAYABLES 2017

2016

$

$

Trade payables

75,198

99,399

Employee liabilities

35,212

32,461

Other current payables

97,066

91,500

Consideration to employers for payroll deductions

–

–

Legal costs – litigation

–

–

Current

Legal cost – other legal matters

– – 207,476

223,360

34,127

43,414

241,425

223,137

Membership subscriptions

1,307,722

1,191,309

Security Insider advertising

1,819

–

Industry briefing

1,895

–

36,219

39,735

Unearned income Events income Cablers registration

Rental income

Financial liabilities at amortised cost classified as trade and other payables

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

1,623,207

1,497,595

1,830,683

1,720,955

207,476

223,360

35

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

12. EMPLOYEE PROVISIONS 2017

2016

$

$

Annual leave

55,914

57,834

Long service leave

51,957

38,101

–

–

Office holders

Separation and redundancies

–

–

107,871

95,935

19,134

17,029

33,673

18,174

Separation and redundancies

–

–

Other employee provisions

–

–

52,807

35,203

160,678

131,138

129,524

128,822

31,154

2,316

131,138

129,543

Other employee provisions 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 2016 Additional provision raised during the year Amounts used Balance at 30 June 2017

112,111

95,474

(82,571)

(93,879)

160,678

131,138

17,577

17,577

–

–

17,577

17,577

13. CENTRE FOR COMPLIANCE Current Balance at 1 July 2016 Less: expenditure Balance at 30 June 2017

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

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

36

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

16 CASH FLOW INFORMATION Reconciliation of the profit for the year with cash flow from operations:

2017

2016

$

$

77,478

84,412

Depreciation

26,424

(85,432)

Increase/(Decrease) in employee provisions

29,540

1,595

Increase/(Decrease) in doubtful debts

(21,243)

26,243

(38,842)

(243,273)

Profit after tax Non-cash items

Changes in assets and liabilities (Increase)/decrease in trade receivables

8,001

(9,483)

Increase/(decrease) in payables

(Increase)/decrease in prepayments

(15,884)

53,932

Increase/(decrease) in deferred income

125,613

196,668

â&#x20AC;&#x201C;

14,904

191,087

39,566

(Increase)/decrease in fixed assets Net cash flow from operating activities 17 RELATED PARTY TRANSACTIONS

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

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

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

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

6

2,380,022

2,188,935

Receivables

7

460,630

400,545

2,840,652

2,589,480

207,476

223,360

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

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

11

37

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

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

2017 $

2016 $

ANZ

615,865

380,235

ING

358,846

249,817

Suncorp

252,858

201,157

Rabo Direct

262,696

255,067

–

250,038

CBA Bankwest

128,873

97,892

ME Bank

252,384

252,445

Bank of Queensland

253,384

250,139

255,116

252,145

2,380,022

2,188,935

Westpac 6 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

1 to 5 years

2017

2016

2017

2016

2017

2016

2017

2016

$

$

$

$

$

$

$

$

Trade and other payables

200,618

221,233

6,858

2,127

–

–

207,476

223,360

Total expected outflows

200,618

221,233

6,858

2,127

–

–

207,476

223,360

2,380,022

2,188,935

–

–

–

–

2,380,022

2,188,935

Financial liabilities due for payment

Over 5 years

Total

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

460,630

400,545

–

–

–

–

460,630

400,545

2,840,652

2,589,480

–

–

–

–

2,840,652

2,589,480

–

–

2,633,176

2,366,120

2,640,034 2,368,247

(6,858)

(2,127)

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, Westpac, ING and ME Bank (approximately 79% of cash on deposit) were at fixed interest rates and cash deposited with Rabobank, ING, ANZ and Bankwest was variable rates (approximately 21% of cash on deposit).

38

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

Sensitivity Analysis

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

2017 $

2016 $

40,739

38,748

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

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

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

The entity’s capital consists of retained earnings and revaluation reserve. 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.

Total equity

3,512,846

3,435,367

Cash and cash equivalents

2,380,022

2,188,935

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

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

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

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

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

39

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.

40

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.

ABN 91 000 813 365 I ASIAL 2017 Annual & Financial Report

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