SDANEWS OFFICIAL MAGAZINE OF THE SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, NEW SOUTH WALES BRANCH I SPRING 2015 I RRP $8.00
Save our weekend. see pages 8-9
A cut to penalty rates is a cut to our take-home pay that we can’t afford and don’t deserve. - Tracey, A WEEKEND WORKER
SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, NSW BRANCH
WWW.SDANSW.ORG.AU PHONE 131 SDA STREET ADDRESS: Level 3, 8 Quay Street, Sydney NSW 2000 POSTAL ADDRESS: PO Box K230, Haymarket NSW 1240 E-MAIL: secretary@sdansw.asn.au
SDA NEWS EDITOR:
Bernie Smith, Level 3, 8 Quay Street, Sydney NSW 2000 Please address all correspondence to “The Secretary”.
UNION OFFICERS: SECRETARY: Bernie Smith ASSISTANT SECRETARY: Robert Tonkli PRESIDENT: Cheryl Cassell
ORGANISERS METROPOLITAN: Lena Adam, Anthony Maiatico, Anthony Attard, Jakub Werstak, Alex Velickovic, Sarah Moody, Caroline Israel, Chris Stefanovski, Angela Ghanime, Mina Papadopoulos, Tina Callaghan, Joel Tynan, Adriana Moore, Karl San Pedro, Hugh McLaurin, Stephen Noone, Anthony Day, Joanne Jammal, Chris Khalil, Whitney Rizk, Alex del Rosario, Jessica Chidiac, Rayanne Li, Alison Varga, Susannah Hoffman, Nikolai Martinovic, Josip Blazevic.
REGIONAL: Lower South Coast, Southern Highlands & Canberra: Athol Williams phone 6273 2300 Riverina (Wagga/Albury): Struan Timms phone 6921 8820 Western NSW (Orange/Dubbo): Louise Buesnell and Loretta Turner (part-time Organiser) phone 6362 1965 Far North Coast (Ballina/Tweed): Trevor McCosker phone 6686 4192 Wollongong & Illawarra: Vera Cavanagh and Di Dixon (part-time Organiser) phone 4228 3611 Port Macquarie and Tamworth Region: Paul Mitchell phone 6583 8837 Coffs Harbour and Armidale Region: Mariusz Werstak and Bridget Sheridan (casual Organiser) phone 6650 9950 WAREHOUSING AND MANUFACTURING: Joseph Bourke, John Paul Sialafau SPECIALISTS INDUSTRIAL OFFICERS: Phil Walker, Bernard Govind, Mitchell Worsley, Aliscia Di Mauro, Rose Ghabache WORKERS’ COMPENSATION AND OHS OFFICERS: Michael Babic, Jane Lui SENIOR OPERATIONS OFFICER: Felicity Smithson OPERATIONS OFFICER: Paul Hangan COMMUNICATIONS OFFICERS: Michael Walker, Tim Leong INFORMATION OFFICERS: Corrine Boyle, Elizabeth Cody, David Uzzell, Georgina Psillis, Renee Jaajaa, Monica Rose EDUCATION OFFICER: Philippe LeCompte
PAGE 2 l SPRING 2015 l SDA NEWS
Working Hard for Our Members The SDA has always sought to be a workplace union, focused on the needs of members in their worksite. Wherever retail, fast food, pharmaceutical or warehouse workers are, we are at work with you. This is reflected in a strong Delegate network in workplaces across NSW and the ACT who keep SDA members and Officials closely connected on matters that are affecting our members. A big thank you to all Delegates in all companies who have recently helped members with countless issues in your workplaces (see pages 7, 10 and 11). I would particularly like to thank all Myer Delegates who have been assisting members through the recent voluntary redundancies that were announced and the resulting roster changes. I would also like to thank all loyal Myer members who have taken a voluntary redundancy. Thank you for your support and good luck in the future. Members First In the last edition of SDA News, I said that sometimes you might work with someone who is not in the SDA and says “I get it all anyway”. This view is so wrong. In the workplace, where our Union lives, it is members first. In this edition you will see the large back payments of wages, superannuation and entitlements that have been won for members only (see page 5). The helping hand extended by SDA Delegates to assist SDA members, from rosters and contracts, to fixing your pay, they are your friend in the workplace. Time and again it becomes clear that it is members first and it pays to belong to the SDA. That is even before we look at the legal network across NSW and the ACT that supports our injured members and provides a range of other discount legal services (see page 6). Our Union always puts members first. Standing Up Our focus is always on our members, that means sometimes we have to look past individual workplaces to take on the big fights too.
The Abbott Liberal Government commissioned the Productivity Commission to review the Workplace Relations system. It was always a cover to launch an attack on your rights at work. The draft report includes attacks on penalty rates, minimum wages, public holidays, unfair dismissal rights, all bundled up with individual contracts (see pages 8-9). The SDA does not accept these unfair recommendations. The SDA condemns the Productivity Commission and the Abbott Government for being out of touch and uncaring with their attack on fair pay and conditions. Cutting penalty rates without compensation simply cuts the take-home pay of employees. It is bad for employees but it is also bad for business, because all those retail and hospitality workers are customers too. The family time of retail and hospitality workers is valued by them. Penalty rates are fair compensation if you miss out on family time. That is why the SDA and United Voice have launched a campaign to protect penalty rates, called “Save Our Weekend: Protect Penalty Rates” (see pages 8-9). The SDA is opposing all attacks on your rights at work. Currently, your Union is:
running a major case before the Fair Work Commission to protect penalty rates;
providing funding for the ACTU Build a Better Future campaign;
responding to the Productivity Commission Draft Report; and
co-ordinating a multi-union public campaign to defend penalty rates: “Save our Weekend: Protect Penalty Rates”. Please support this very important campaign.
Bernie Smith, Branch Secretary
SDA NEWS I SPRING 2015 I PAGE 3
The Union for Fashion Models Did you know that the SDA gives work advice and support about modelling work too? The SDA is the Union for retail, distribution and associated industries: modelling is closely associated with retail because of its heavy emphasis on the selling of fashion products. The SDA’s models division used to be a union of its own, called the Models and Mannequins Guild; the two unions merged in 1991.
Widespread Problems Behind the Glam You may have heard news reports recently of alleged inappropriate behaviour by an employer with swimwear models. The conduct alleged in these incidents is quite disgraceful and the alleged offender is now before the courts. The matter was bravely raised by half a dozen models who ‘outed’ the perpetrator on social media. Their story was taken up by A Current Affair and national newspapers. The SDA provided advice to a number of people involved who were happy to see it pursued as a criminal rather than a workplace sexual harassment matter. The incidents did bring home the inadequacy of protections for models who are not ‘employed’ by agents and fall outside a number of laws. The Union has raised with the Office of the Child Guardian the need to fix the current gap for modelling agents in laws designed to protect minors working as models.
Here to Help The SDA is ready to assist any member who experiences mistreatment. We are aware that there are a number of members who do modelling work on the side. You are already an SDA member in one job. If you also do modelling work as a side job, send an email to secretary@sdansw.asn.au to let us know. Include your membership number and the name of your agency in the email. You are entitled to confidential advice and support relating to your second job at no extra cost. Follow our Models Facebook page at facebook.com/modelsguildau Photograph by Eva Rinaldi (evarinaldi.com).
PAGE 4 l SPRING 2015 l SDA NEWS
Only Members are Protected All SDA members have the right to be paid correctly. If you are an SDA member and think you have been underpaid, the by Robert Tonkli SDA is here to Assistant Secretary help you get your entitlements. But what if you are a non member? Where do you go? Well, you are on your own. The following true stories show that SDA membership works.
$42,000 Re-loaded! Last year, Sue and Helen* – two Delegates from a large supermarket chain – attended SDA Delegate training run by SDA trainer, Philippe. Part of the training covered detail about holiday entitlements, including leave loading. At the training, the Delegates realised that they were not getting paid all of their entitlements when they went on annual leave. The Agreement that applied to their store required annual leave loading to be calculated on the Sunday rate, however, due to an oversight, their leave loading did not include the Sunday loaded rate. When Sue and Helen returned to their store, they did an investigation and discovered that a total of 19 SDA members had been underpaid over a period spanning several years. The investigation was only done for SDA members at that store. It took a lot of time and patience, but Sue and Helen, with the assistance of the SDA office, were able to recover approximately $42,000.00 worth of unpaid entitlements for SDA members at that store.
$85,000 worth of leave paid At a different supermarket (and a different company), the local SDA Organiser discovered that nightfill staff were not being provided with their paid crib break. A crib break is a type of paid rest break. It’s provided instead of an unpaid rest break when an employee works the majority of their hours between 10pm and 6am (night hours). The SDA Organiser investigated the situation and learned that the crib break had not been provided for several years. Nightfill workers tend to be more isolated than other workers. For this reason, they are often unaware of their rights and entitlements. It is really important that all nightfill workers join the SDA to ensure they get all of their entitlements. After the Organiser’s intervention, the paid crib break was reinstated. However, there was still a problem to be fixed. Although there was no underpayment of wages to be recovered (as crib breaks are paid breaks), members had still lost the benefit of their break time. Most, but not all, of the workers at this supermarket were SDA members. On behalf of the SDA members only, the Union took the matter up with the company. We argued that although members had not lost a payment, they had lost their rest pauses, a key benefit provided for them in the Agreement. On behalf of each member, this added up to many hours over several years. The SDA was able to negotiate a settlement with the company. Instead of a payment, SDA members would be given equivalent time off in lieu.
Effectively, SDA members were given make up leave time for the rest pauses that were not provided at work. For some workers, this leave was in excess of 200 hours, or several weeks. Only SDA members got this benefit. The non SDA members at the supermarket got nothing. In total, the leave provided to SDA members represented paid time off worth over $85,000.00.
Court acƟon to recover more than $500,000 The SDA is conducting legal action in the Federal Circuit Court to recover wages and unpaid superannuation owed to a number of members at an independently owned supermarket chain. Collectively, the unpaid entitlements add up to over half a million dollars. Not all of the underpaid workers at this company are SDA members. Legal proceedings are expensive. Thankfully, SDA members at this company will not have to worry about paying a legal bill. However, non SDA members are completely on their own. If they want to take legal action against the company to recover their unpaid superannuation and wages, they will have to pay their own way. If only they had joined the SDA when they started.
It Pays to Belong These are just a few examples. There are many others. SDA membership protects members, and only members. If you know of a non member at your workplace, invite them to join the SDA. It may save them thousands. * Actual names have been changed.
SDA NEWS I SPRING 2015 I PAGE 5
SDA SERVICES AND BENEFITS
SDA SERVICES AND BENEFITS
The SDA’s Mortality Benefits Scheme The SDA provides a mortality benefit to the next-of-kin of a deceased member. Upon the death of a member, the SDA will pay their next-of-kin $3,000, providing that particular conditions are met. The deceased must have had a minimum of six months membership of the NSW Branch of the SDA and have been a member at the time of death.
Expert Workers’ Compensation Solicitors Network
Need Legal Advice on a Non-Work Matter?
Workers’ compensation is a complicated area of the law. Even more so with changes to NSW laws. That is why the SDA provides access to workers’ compensation specialist solicitors across NSW and the ACT. Workers’ compensation matters are first dealt with through the SDA office (call 131 732), but when they need it, SDA members are referred to experienced workers’ compensation solicitors in their area. This ensures our injured members – who are often vulnerable – get the right assistance from solicitors who know the system. Contact the SDA office on 131 732 if you have a workers’ compensation matter or need a referral to one of our workers’ compensation solicitors.
SDA-preferred solicitors can assist you with any legal problem, including property conveyancing, home insurance claims, consumer rights, wills, will disputes, probate, family law matters, motor accidents and public liability claims. Most of our SDA-recommended solicitors offer one free consultation on any legal matter not related to work. Special discounted fees are applied to such personal legal matters which involve more than one consultation. To make an appointment with a solicitor in your area, contact your regional SDA office or the SDA Information Centre on 131 SDA.
This is another example of how your Union cares about its members and their families. To find out more, including all the conditions that apply to be eligible, please call the SDA Info Centre on 131 732.
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PAGE 6 l SPRING 2015 l SDA NEWS
The SDA – a Workplace Union In these pages, we often provide updates on our big industry-wide campaigns like Take The Time and 100% Pay, but we should by Bernie Smith never lose sight of Branch Secretary the difference active SDA Delegates and SDA members make in their workplaces every day. The SDA is a workplace union. The SDA isn’t in an office or on a website; the SDA lives in every workplace with members and Delegates. Our big campaigns make a big difference, but so does each workplace issue that we address. I was happy to help members at Mount Annan with roster problems after the store Delegate raised it at a recent meeting. Issues like rosters, correct payment of wages and how you are treated at work make a big difference to our members’ working lives.
A Vital Link Members and Delegates have been busy in recent months dealing with workplace issues. Here are just some of their recent achievements: Well done to the Target Delegates down on the border who put a stop to pay averaging for part-time employees across the State.
Great work at a local IGA where the Delegate got a member’s annual leave recredited to them, and disaster leave paid instead due to localised flooding.
Members at a Western Sydney supermarket recently thanked their Delegate for getting them their Easter Sunday entitlements.
A member at another supermarket finishing a limited tenure contract and starting as a permanent, kept an extra four hours a week in the new contract thanks to their Delegate. That is over $80 extra per week, or more than $4,000 more per year. It just goes to show that it pays to belong to the SDA.
Geƫng Stronger Every time a member and/or a Delegate finds out about their rights from the SDA and stands up for their rights with SDA support, the member and the SDA both get stronger. Your workmates see a good result and they get stronger too. Your workplace union gets stronger. A fairly new Delegate, let’s call her Jessie, helped her workmates deal with bullying in the workplace. The bullying stopped. The members felt stronger. More members joined the SDA. The workplace union became stronger.
Jessie found some members were not being paid properly. Together they fixed it to get backpay. More members joined the SDA. The workplace union was even stronger. With members’ support, Jessie got stronger too. She saw the Premier, Mike Baird, in her workplace. Jessie felt strong enough to question him on why he wanted to take Boxing Day away from retail workers. Mr Baird didn’t feel so strong when he was put on the spot by his local SDA workplace Delegate.
At Work with You The SDA lives in every workplace where there are SDA members and active SDA Delegates. Whether it is taking up individual workplace issues, tackling Statewide problems or leading industry-wide campaigns, the SDA will always be your workplace union. We are at work with you.
stop press!
The ACT Governmen t has just announced that they will make Easter Sunday a publ ic holiday in the Australian Capital Te rritory, meaning that our members in the ACT will join their NSW workmates in being able to take this importan t family time.
SDA NEWS I SPRING 2015 I PAGE 7
The SDA: Continuing to Defend Your R The Productivity
For every hour worked, retail
They do not understand life in retail,
Commission has
workers produce more goods and
working late nights, weekends and
an important
services than they did the year
public holidays.
role in Australia
before. This shows the retail industry
The Productivity Commission’s
“to improve the
in Australia is efficient, productive
recommendation to cut retail and
overall economic
and continually improving.
hospitality workers Sunday penalty
The Productivity Commission should
rates is offensive. The family time of
hold up the retail industry as an
retail and hospitality workers is just as
example where productivity growth
important as the family time of other
and fair wages and conditions can
workers.
go hand-in-hand.
Not only is it unfair, it is bad
PC goes after Retail Wages and Conditions
economics. Cutting penalty rates
Given the strong productivity growth
employees’ take-home pay.
in retail, why does the Productivity
This just takes money from an
productivity – is no more than a Trojan
Commission’s report on Workplace
employee’s pay packet and leaves it
horse for the Abbott Government to
Relations attack minimum wages,
in the employer’s pocket. Workers are
attack your rights at work.
retail workers penalty rates, and
customers too, with less to spend,
The “Productivity Update”
public holidays?
which reduces consumption as a
acknowledges the retail industry’s
Each of these recommendations will
continuing high rate of productivity
do nothing to improve productivity,
That is bad for retail workers and bad
growth not just in the last year, but
but will cut the take-home pay of
for retail businesses.
consistently over the last 25 years.
retail workers. Once retail workers’
Yet the second report recommends
pay is cut, who is next?
slowing the growth in minimum wages
Minimum Wages
performance of by Bernie Smith, Branch Secretary
the economy through higher productivity”.
It released two reports recently, firstly a “Productivity Update” in July; and then in August a “Draft Report on the Workplace Relations Framework”. When you read them together, the second report – with little focus on
(including in retail), cutting penalty rates specifically in retail, and altering public holidays to not fall on the real day so shops can open at lower wage rates. None of these things boost productivity, but each of these things hurt retail, fast food, pharmaceutical and warehouse workers.
Productivity Up The Productivity Update shows labour productivity in the private sector is up by 2.5%. Labour productivity, the
The Productivity Commission recommends “limiting growth in minimum wages”. They think the minimum wages of the lowest paid are growing too fast, and that low-paid workers should receive even lower pay rises in future. Retail workers are already finding it hard to make ends meet. Why should they get less while each day at work they are producing more?
productivity of workers, is growing
Penalty Rates Cut
faster than industry productivity
The Productivity Commission is
generally.
open Monday to Friday from 8.30am
The retail industry has had 25 years of
to 5.30pm. They are closed on
uninterrupted productivity growth.
public holidays.
PAGE 8 l SPRING 2015 l SDA NEWS
without compensation is just a cut to
whole.
r Rights at Work Public Holidays
SDA Fights Back
After many years of campaigning,
The SDA does not accept
all public holidays in NSW now fall
these unfair recommendations
on the actual day of celebration
from the Productivity Commission.
rather than on another nearby day.
Retail workers are working harder
You either get to enjoy the real day
Save our weekend.
and producing more each year. They should not have cuts to pay
Retail and other service sector workers depend
and conditions.
on penalty rates to make ends meet. They
Your Union, the SDA, is opposing
struggle for family time in seven-day-a-week
The Productivity Commission’s
all attacks on your rights at work.
industries, and need higher minimum pay.
recommendation to allow
Currently your Union is:
Other workers agree, too. The campaign to
of celebration, or, if you work, you get proper penalty rates on the day.
businesses to swap which days
running a major case before the
defend penalty rates launched by the SDA and
are public holidays is unfair and
Fair Work Commission to protect
United Voice has been supported by unions
out of touch. They made this
penalty rates;
for nurses, council workers, administration
recommendation with Boxing Day
in mind.
providing funding for the ACTU “Build a Better Future” campaign;
Between the Baird Government
wanting to open shops all hours and the Productivity Commission
responding to the Productivity Commission Draft Report; and
workers, miners and the union movement as a whole. The SDA is fighting for fairness. Sign up and join the campaign to protect penalty rates at saveourweekend.org.au/sda
co-ordinating a multi-union public
wanting to change public holidays,
campaign to defend penalty
there is a real attempt going on to
rates: “Save our Weekend: Protect
steal Christmas.
Penalty Rates”.
Scan this image with your QR-enabled smartphone to see our message to the Productivity Commission!
Join the campaign at saveourweekend.org.au/sda SDA NEWS I SPRING 2015 I PAGE 9
Delegates Show Their S
know your rights... The Union produces a comprehensive suite of infosheets about workplace rights, and factsheets specifically about safety. Any member can call up to request a copy to be mailed to them. They are also available for download through the SDA website. YourRights
YourRights WorkplaceSurveillance
YourRights YourLeaveEntitlements
Shop, Distributive and Allied Employees’ Association, NSW Branch
Shop, Distributive and Allied Employees’ Association, NSW Branch
Shop, Distributive and Allied Employees’ Association, NSW Branch
InfoSheet 5
YourRosteringEntitlements
X
Write to: PO Box K230
X
Phone 131 SDA (that’s 131 732)
Haymarket NSW 1240
X
Fax (02) 9281 7050
X
E-mail secretary@sdansw.asn.au
X
Log onto www.sdansw.org.au
A Message from your Secretary, Bernie Smith
The rostering provisions in our Enterprise Agreements and Awards are designed to provide a proper balance for a person between their work and non-work commitments and obligations. All members should become familiar with their rostering entitlements. They are specifically designed to provide employees with rights and entitlements that must be observed. As always, if a member is not able to resolve a matter to their satisfaction, the Union is here to provide expert advice and assistance.
One of the most important issues at work impacting on us all is rostering. How employers establish and change rosters has a huge impact on our lives and the lives of those who depend on us. YOUR NEEDS Far too often, employees act as if they have few rights when it comes to rostering issues. Many people operate under the false belief that “whatever roster my employer gives me, I have to work”. This is just not correct. All employees have their own needs and circumstances, and these must be taken into account with respect to rostering. Employees must speak up and raise these matters with their employer so that they can be taken into account and properly accommodated. There is no room for the “take it or leave it” approach. Your employer must consider your needs and circumstances. IMPORTANT MATTERS Most Enterprise Agreements and Awards negotiated by the SDA require employers, when establishing or changing a roster, to have regard for the family responsibilities of the employee and whether the employee can access safe transport home. Some Enterprise Agreements and Awards also require employers to consider the employee’s study and sporting commitments. OTHER ISSUES In addition to those detailed above, there are other issues that employers may be obliged to take into account. Employees can have particular matters that are important to them, and employers should be informed of them so that they can be properly taken into account when rostering. CHANGING ROSTERS Most Enterprise Agreements and Awards contain specific provisions relating to changing rosters.
Typically, employees must receive seven days’ notice of a roster change. If they disagree with the change, 14 days’ notice is given in lieu of the seven. Furthermore, most Enterprise Agreements and Awards provide: X that employees will be given a regular roster which shall not be subject to frequent variation; and X that rosters cannot be altered with the intent of avoiding payments or benefits applicable under the Enterprise Agreement or Award. FURTHER RIGHTS Other matters relating to rostering which are typically covered by Enterprise Agreements and Awards include: X the maximum number of consecutive days that can be worked; X the minimum and maximum number of hours that can be worked on a shift; X the number of consecutive days off an employee must have per week or fortnight; and X the maximum number of hours that can be worked per week or roster cycle. CHECK YOUR ENTERPRISE AGREEMENT OR AWARD Your Enterprise Agreement or Award contains specific provisions relating to rostering. Your employer is obliged to know what these entitlements are, and apply them correctly. If you want to know what your rostering entitlements are, speak to your workplace Delegate, Organiser or contact the SDA Information Centre on 131 SDA (131 732). INVOLVE THE SDA The SDA will help any member requiring assistance with respect to their rostering. The SDA’s network of workplace Delegates and Organisers, as well as the SDA Information Centre, are all available to make sure you get your full set of entitlements.
Authorised by Bernie Smith, Branch Secretary-Treasurer, Shop, Distributive and Allied Employees’ Association, NSW Branch, Level 3, 8 Quay St, Sydney NSW 2000. 5/15063.
InfoSheet 7
Write to: PO Box K230 Haymarket NSW 1240
including CCTV surveillance,
Phone 131 SDA (that’s 131 732)
has increased dramatically.
surveillance technologies,
X
Fax (02) 9281 7050
Technological improvements,
X
E-mail secretary@sdansw.asn.au
affordability and broader security
X
Log onto www.sdansw.org.au
A Message from your Secretary, Bernie Smith
concerns have contributed to the increase in the use of CCTV – not only in public areas, but at the workplace as well. Many employers, including retailers, are now using CCTV cameras.
very useful for protecting people and property from harm, but it can Workers have a right to privacy in parts of their workplace, and employers need to be mindful of employees’ concerns regarding the use of monitoring equipment. Your Union is here to help you if you need it – just contact us on 131 SDA (131 732) or talk to your workplace Delegate or Organiser.
X
Fax (02) 9281 7050 E-mail secretary@sdansw.asn.au
X
Log onto www.sdansw.org.au
A Message from your Secretary, Bernie Smith
their employees may have, including concerns around privacy. Relevantly, legislation requires that surveillance, including CCTV
X
Employees must be given
improper purpose.
written notice 14 days prior
SPECIFIC PROHIBITIONS
X
Camera or camera casings must
speciÀc prohibitions on employers
be clearly visible; and
including prohibition of any
The legislation imposes some
Signs must be clearly visible at
surveillance in change rooms, toilets,
each entrance that may be under
showers or other bathing facilities.
surveillance. CCTV can be an important tool in enhancing the safety and wellbeing of employees while they’re at
In other words, the use of CCTV in these areas is not permitted.
QUESTIONS?
work, and in protecting company
If you have any questions about this
property and assets including loss
matter, please speak to your Union
and theft. CCTV’s purpose is not to
Phone 131 SDA (that’s 131 732)
X X
surveillance, not be used for an
X
Write to: PO Box K230 Haymarket NSW 1240
X
Retailers must use CCTV surveillance
Under legislation:
to any surveillance occurring;
InfoSheet 6
both appropriately and responsibly, and be mindful of any concerns
IMPORTANT EMPLOYER REQUIREMENTS
Surveillance equipment can be
also be intrusive.
IN NSW
CLOSED CIRCUIT TELEVISION (“CCTV”) IN THE WORKPLACE In recent years, the use of
X
X
Delegate or contact the Union’s
monitor and/or performance manage
Sydney ofÀce on 131 SDA (that’s
employees.
131 732).
Authorised by Bernie Smith, Branch Secretary-Treasurer, Shop, Distributive and Allied Employees’ Association, NSW Branch, Level 3, 8 Quay St, Sydney NSW 2000. 5/15043.
Leave provisions in Enterprise Agreements and Awards are essential in safeguarding our personal lives from being overwhelmed by work. These entitlements provide time away from work to spend with our families and within our community for rest, recreation and recuperation. The SDA is available to inform members about the different forms of leave available to them. If you have an issue with securing your correct leave entitlements, the Union is here to provide expert advice and assistance.
Members frequently ask the SDA about their leave entitlements. Every Enterprise Agreement and Award negotiated by the SDA contains detailed leave provisions, with which all employees need to be familiar. Some forms of leave are paid, while some are unpaid. Casuals do not have access to most forms of paid leave but are instead compensated by a casual loading incorporated in their hourly rate of pay.
ANNUAL LEAVE Permanent employees are legally entitled to four weeks of paid annual leave. Some Enterprise Agreements or Awards provide more generous entitlements. Annual leave becomes due after 12 months of service but, by agreement, may be taken in advance. Clauses relating to annual leave usually cover: X the method of accrual and calculation of annual leave; X how loadings and penalties are treated during annual leave; X how annual leave may be taken – in single days and/or weekly blocks; X the payment of annual leave loading (usually 17.5% paid on top of the ordinary rate of pay); X when payment becomes due (ordinarily prior to taking leave); and X what happens when a public holiday falls during a period of annual leave. SICK LEAVE Sick leave is paid leave when a permanent employee is unable to attend work due to personal illness or incapacity. Awards and Agreements generally provide for between 38 and 76 hours of sick leave per year of service. Unused sick leave accumulates from year to year. To access paid sick leave, most Agreements and Awards typically require employees to: X X
notify their employer expeditiously; and provide satisfactory evidence (usually a medical certificate or statutory declaration).
FAMILY/CARERS/PERSONAL LEAVE This leave is paid leave to attend to unforeseen family or personal matters, including the illness of a close family member. Most Agreements negotiated by the SDA provide for a non-cumulative entitlement of three days per year of service.
BEREAVEMENT/COMPASSIONATE LEAVE This leave is paid leave, usually of between three and five days, upon the death of a close relative. It is important to check your Agreement or Award for details of those family members covered by this entitlement. LONG SERVICE LEAVE Every employee in NSW and the ACT is entitled to 8.67 weeks of paid long service leave after ten years of continuous employment, and 0.867 weeks for each subsequent year. A person is entitled to a pro-rata payment of their long service leave if, between five and ten years of service, they are forced out of work by illness, disability, death, or domestic or other pressing necessity, or if they are terminated by their employer for reasons other than serious and wilful misconduct.
CHECK YOUR ENTERPRISE AGREEMENT OR AWARD Other forms of leave include jury service leave, blood donor leave, parental leave and emergency services leave. Casual employees with the appropriate periods of continuous service are entitled to both long service and parental leave. Your exact entitlements are set out in your Enterprise Agreement or Award. If you are unsure and want to know more, talk to your workplace Delegate, Organiser or contact the SDA Information Centre on 131 SDA (that’s 131 732).
Authorised by Bernie Smith, Branch Secretary-Treasurer, Shop, Distributive and Allied Employees’ Association, NSW Branch, Level 3, 8 Quay St, Sydney NSW 2000. 5/15048.
InfoSheets: 1. Breaks 2. Pay 3. Grievances 4. Counsellings 5. Rostering 6. Leave 7. Surveillance 8. Social Media 9. Union representation in meetings 10. Long Service Leave
Safety factsheets: 1. Health and Safety Consultation 2. Health and Safety Representatives 3. Health and Safety Committees 4. First Aid 5. Customer Abuse 6. Extreme Cold 7. Extreme Heat 8. Forklifts 9. Lifting (Manual Handling) 10. Working too fast 11. Workcover medical appointments 12. Slips, trips and falls 13. Burns 14. Company Injury Assistance Programs (New!) !Delegates: please check that you have the full set; if you’re missing any, call us to request a copy or download them from the SDA website.
PAGE 10 l SPRING 2015 l SDA NEWS
At the time of writing this article, the Branch has trained 745 Delegates. This puts us on track to have a record by Philippe LeCompte attendance at Education Officer training this year. What has been so pleasing is the number of issues Delegates have been involved with and resolved for members. It’s no good learning about your rights if you don’t tell your members in the store about them. A strong union needs a number of Delegates and activists in each store who know how to find answers to questions raised by members. This training starts the moment the Area Organiser signs a Delegate up and is assisted with formal training conducted by the SDA. A couple of photos from recent training sessions are shown here.
Below are four good stories from Delegates in recent times. Joanne McIntyre, Woolworths Emu Plains, has been promoting the textbook vouchers to those members who are studying or who have children who are studying. She also found two part-time night employees who were rostered 3¾ hours. Joanne informed management that you can’t roster an employee to avoid an entitlement. The two employees were re-rostered for 4 hours. The employees now receive a 15 min tea break and receive an extra $5 per shift. Great work Joanne!! Long-time Delegate Sioe Uzell from DJs Elizabeth St has kept a record of every member she has signed up since being in the role. Her tally is currently 387 members! She notes the birthday of every member she signs up and sends them a “happy birthday” text on their birthday. Sioe, you’re a legend!!
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Raewyn Reed, Big W Miranda, always has recruitment on her mind. She keeps a card with the names of potential members on it. When she spots a new face in the store, she introduces herself, discreetly checks her list of potential members and if they are on it, she then talks to them about the benefits of being an SDA member. Raewyn’s store is one of our most highly unionised stores because of her efforts. Thanks Raewyn!! Tragedy struck twice for a member at Woolworths Miller when both her father and mother died within a month of each other. Making it worse, the member was told that she had used up her entitlement to compassionate leave after the first death. Fortunately, experienced Delegate Nandni Kumar was on hand to inform management that the entitlement to compassionate leave is for each occasion. The member was so grateful that she gave Nandni a big hug! Nandni, you are a friend in the workplace!!
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Save our weekend. protect penalty rates SDA NEWS I SPRING 2015 I PAGE 11
RACING TO 100% PAY! When the first National 100% Pay Week was held three years ago, the SDA was in the Fair Work Commission pushing the case for younger workers to be paid fairly. Fast-forward to this year’s event, held between 3 and 9 August, and things are much different. This year’s National 100% Pay Week was the first one held since 20 year olds working under the General Retail Industry Award were officially paid 100% of the adult wage. It was a real celebration of SDA members’ achievements. Thousands of people from across the country took part in the week, celebrating winning fair pay for 20 year olds, and looking forward to the next challenge: full adult rates for 18 and 19 year olds. On the streets, SDA members were busy signing people up to the 100% Pay at 18+ campaign and spreading the word about the need to pay all workers, particularly our younger workers, fairly. SDA Officials and members took part in Sydney’s City to Surf event (pictured right) to publicise the issue, and there was even 100% Pay sky writing over the streets of Brisbane. Creativity was the name of the game for those getting involved in an online competition which asked people to creatively represent ‘100% Pay’ for their chance to win one of three GoPros or a share in two $1,500 shopping sprees. SDA National Secretary Gerard Dwyer said this year’s National 100% Pay Week had a real sense of celebration.
“This year’s National 100% Pay Week was an important one. It was our chance to really celebrate 20 year olds receiving full adults rates of pay, but it was also an opportunity to gain support for the next steps in the push for 18 and 19 year olds to be paid fairly too,” Mr Dwyer said. “National 100% Pay Week is an opportunity to get the word out about the importance of 100% Pay at 18+. “We know that once people hear about the discrimination of paying younger workers up to 30% less, simply because of their age, they throw their support behind us, so events like National 100% Pay Week are important for getting that message out to the wider community. Mr Dwyer said the quality of the entries in the online competition this year were incredibly high. “National 100% Pay Week surprises me every single year. The creativity of the entries we have into the online competition run during the week is just mind-boggling. “The hundreds of people who got involved took creativity to another level this year. “It’s hard to believe that during our first National 100% Pay Week three years ago, we were still in the Fair Work Commission, pushing our case for younger workers to be paid fairly. “We’ve come a very long way, and it’s all thanks to the support of SDA members.” Find out more about the SDA’s 100% Pay at 18+ campaign and see all the entries in this year’s competition at www.100percentpay.com.au
wage increase update... One of the SDA’s main tasks is to improve our members’ wages and working conditions through enterprise bargaining, meaning that if you’re covered by an EBA, you get regular pay increases. The following companies have wage rises coming up: Employer Date of Pay Rise Weekly Hourly Weekly Permanent Casual Increase* Increase* Rate* Hourly Rate Hourly Rate Kmart 1 November 2015 $12.00 $0.32 $783.70 $20.62 $24.75 Coles Supermarkets 1 December 2015 $12.00 $0.32 $821.00 $21.61 $25.93 Coles Liquor (Level 2) 1 December 2015 $11.55 $0.30 $781.46 $20.56 $24.68 Priceline 1 December 2015 $22.52 $0.59 $773.41 $20.35 $24.55 *for permanent employees
PAGE 12 l SPRING 2015 l SDA NEWS
SDA NEWS I SPRING 2015 I PAGE 13
AUSTRALIA’S PAID PARENTAL LEAVE (PPL) SCHEME FOR WORKING PARENTS IS DESIGNED TO ENSURE BABIES HAVE THE BEST POSSIBLE START IN LIFE. SO WHY DOES THE ABBOTT GOVERNMENT WANT TO CUT PPL FOR 80,000 FAMILIES?
10 THINGS YOU NEED TO KNOW ABOUT PPL 1
The Scheme includes financial contributions for government and employers and aims to meet the World Health Organisation’s recommendation for at least six months of paid leave for new parents to promote child and maternal health, build strong families and help mothers stay in the workforce.
2
Before our Scheme started in 2011, Australia was one of only two developed nations to not have a PPL Scheme for working parents – something unions spent 30 years campaigning for.
3
When our PPL Scheme was introduced, new parents began to receive a government payment of 18 weeks at the National Minimum Wage, designed to be supplemented by additional paid leave from their employer.
4
Paid Parental Leave has enormous benefits for the health and wellbeing of families, and it helps to keep more women in work which is good for the economy.
5
The Abbott Government wants to cut government contributions for parents receiving employer contributions, leaving tens of thousands of families worse off.
6
Despite previously promising to greatly improve the existing Scheme, the Abbott Government chose Mother’s Day to announce big cuts and call mums rorters, frauds and double dippers!
7
These cuts will mean that many new parents face hard choices that could see them spend less time with their babies during those crucial early months.
8
The Government’s cuts will hurt all parents who have traded off wage rises and other entitlements in exchange for better-paid parental leave, as employer contributions will now be deducted instead of added to the Government’s contribution.
9
The planned cuts are at the expense of the health and wellbeing of parents and their newborn babies and are not supported by employers, unions or women’s health and children’s organisations.
10
Australian unions are calling on Members of Parliament to refuse to support the Government’s cuts to Paid Parental Leave.
HELP TO SAVE PAID PARENTAL LEAVE BY SIGNING THE PETITION AT
AustralianUnions.org.au/ppl PAGE 14 l SPRING 2015 l SDA NEWS
34,000
THE NUMBER OF WORKERS WHO WOULD COMPLETELY LOSE ACCESS TO THE GOVERNMENT PPL SCHEME UNDER THE CHANGES.
45,000
THE NUMBER OF WORKERS WHO WOULD PARTIALLY LOSE ACCESS TO THE GOVERNMENT PPL SCHEME UNDER THE CHANGES.
79,000
THE TOTAL NUMBER OF WORKERS WHO WOULD BE AFFECTED BY THE PROPOSED CHANGES TO THE PPL SCHEME.
79%
THE PERCENTAGE OF WOMEN WHO WOULD HAVE TAKEN MORE TIME OFF WORK IF THEY HAD ACCESS TO MORE PAID LEAVE.
KATE Kate is a full-time retail worker at Bunnings paid $40,000 per annum. The company provides employees with eight weeks’ paid leave, split into two payments. Employees get four weeks’ paid parental leave plus superannuation on top of the 18 weeks provided by the Government, and a further four weeks leave after six months’ service upon return to work from parental leave (i.e. return-to-work bonus). The four weeks’ paid parental leave is worth $3,123. Under the proposed changes, the government component would be cut to $8,701 instead of $11,824. If superannuation payments are taken into account, the Government component will be further reduced. Kate may also lose an additional $3,123 if the return-to-work bonus is taken into account.
$3,123 WORSE OFF
HEALTH EFFECTS The World Health Organisation (WHO) recommends exclusive breastfeeding in the first six months of a baby’s life, and recommends governments enact six-months mandatory paid maternity leave and policies that encourage women to breastfeed in the workplace. Despite this, and the fact that most countries are extending women’s access to paid parental leave, the Australian Government is seeking to reduce the entitlements to paid parental leave for Australian mothers. The Government’s proposed changes will have a severe financial impact on women at the time of birth of their baby and may result in women being forced to return to work earlier than they want to. This may affect the duration of breastfeeding and providing care for their newborn baby.
WHAT CAN YOU DO? SHARE THIS INFORMATION WITH YOUR FRIENDS AND WORKMATES SIGN THE ONLINE PETITION TELL US HOW THESE CUTS WILL AFFECT YOU FOR MORE INFO, VISIT AUSTRALIANUNIONS.ORG.AU
SDA NEWS I SPRING 2015 I PAGE 15
Workload S
SDA members working across retail, fast food
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What is workload stress?
Safety Demands Action week last year.
focus of the SDA’s second annual Safety Demands Action week, which ran across the country during August
There is a difference between stress and pressure. We all experience pressure on a daily basis, and need it to
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motivate us and enable us to perform at our best. Itâ&#x20AC;&#x2122;s when we experience too much pressure without the opportunity to recover that we start to experience stress. We can all feel stressed at times when we feel as though everything becomes too much, when things get on top of us, or when we feel as though we are unable to cope. It affects us in different ways at different times. Workload stress is our mind and bodyâ&#x20AC;&#x2122;s reaction to a situation that is overwhelming. It can lead to burnout,
anxiety, depression and symptoms like high blood pressure, sleeplessness, stomach problems and back pain.
d Stress... Is this an issue for you? Risk factors: possible causes of workload stress
the demands of your job
your control over your work
the support you receive from managers and colleagues
your relationships at work
your role in the organisation
change and how it’s managed
What can you do about workload stress? Workload stress can be tackled by working with your employer to identify issues at their source and agreeing on realistic and achievable ways to tackle them.
Talk to your Manager
Your employer needs to gain a detailed understanding of what these risk factors look like where you work, identify which areas may be presenting problems, and work with employees and their representatives, to take action to reduce these problems.
Health impacts of workload stress Here’s some of the information you need to know about Workload Stress and how to tackle it. Stress can show itself in many different ways
Feeling negative or depressed
Increased emotional reactions - more
tearful or sensitive or aggressive
Feeling isolated and lonely
Loss of motivation
Confusion, indecision
Poor concentration and memory
Changes in eating habits
Increased smoking, drinking or drug-taking ‘to cope’
Mood swings affecting your behaviour
Changes in sleep patterns
Changes in attendance such as arriving later or taking more time off
Please note these are indicators of behaviour of those experiencing workload stress. They may also be indicative of other conditions. If you are concerned about impacts workload stress may be having on your health, please seek advice from your doctor.
Raise your concerns with your SDA Delegate or Health and Safety Rep Put workload stress on the agenda for your next workplace Health and Safety Committee meeting.
If you are concerned about your own health, seek advice from your doctor.
You can also contact the SDA to get more information and support.
attention health & safety representatives... We will be writing a dedicated HSR newsletter for HSRs who are members of the SDA and also including these workers in special mailouts regarding safety in your companies. We will also send you a special HSR badge. If you are a HSR and are interested in being part of this, please register your interest by:
emailing secretary@sdansw.asn.au; or
phoning 131 SDA (131 732)
If you are interested in finding out more about HSRs, please call the SDA on 131 732.
Wrap up of 2015 Safety Demands AcƟon week Thanks to all of our Delegates, Health and Safety Representatives and Organisers who were out in workplaces talking to members about workplace health and safety and the issues most important to them. We look forward to providing you with a report on the results from all of our activities during our national Safety Demands Action week in the coming months.
SDA NEWS I SPRING 2015 I PAGE 17
PICNIC DAY 2015
WELCOME SPRING WITH FUN AND FASHION MELBOURNE CUP DAY, TUESDAY 3 NOVEMBER 2015 Picnic Day is an additional public holiday which full-time and part-time employees may be entitled to without loss of pay. If you are entitled to Picnic Day as a holiday, you cannot be forced to work on this day. For exact details of your entitlement on the day, check your Enterprise Agreement or Award.
THIS YEAR Picnic Day for NSW shop assistants falls on the first Tuesday in November each year which, of course, is also Melbourne Cup Day. This year, NSW shop assistants Picnic Day falls on Tuesday 3 November.
PAGE 18 l SPRING 2015 l SDA NEWS
WHAT’S ON IN YOUR AREA? As usual, we’re hosting events in Sydney and regional areas. For information on functions in your region, or in Sydney, see your Store Delegate, phone the SDA Information Centre on 131 SDA (that’s 131 732), or phone your regional SDA office (see the back of your current membership card for contact details).
HURRY – ORDERS CLOSE O 19 OCTO N BER!
Do You Really Want Banks Running Your Super Fund? The Abbott Government has proposed changes to the governance structure of superannuation funds that will undermine Australia’s high by Gerard Dwyer National Secretary performing Industry Superannuation Funds. This means that millions of Australians in Industry Funds like REST could retire with far less in their accounts than they should have had. Why? Because ‘not-for-profit’ funds (like REST and other Industry Funds) have a superior track record. The facts speak for themselves: Not-for-profit superannuation funds outperformed retail funds (run by Banks and Finance companies) on average by 2% per annum over the 11 years to 30 June 2014.* Studies of the superannuation industry have concluded that a member of a retail fund would have to work 6–8 years longer than a similar employee in a not-for-profit fund to achieve the same retirement account balance.^ 47 of the top 50 performing funds over those 11 years to 30 June 2014 were notfor–profit super funds, while only three were retail funds.* With these superior outcomes, why is the Abbott Government attacking the “Equal Representation Model” (that is, 50% employer appointed directors and 50% union appointed directors) that has been central to the success of industry super funds? Equal representation means that all Directors remain focused on the members of the fund and their interests - that is returning all profits to them and not shaving off a percentage to distant shareholders.
The Government is proposing to change the model to mandate independent directors, which would not just change the structure but also the character and culture of the superior performing not-for-profit funds. So-called ‘independent’ Directors would inevitably be drawn from the world of big business and the independent director model from that world has overseen some of the worst financial scandals in this country. The Commonwealth Bank Board has 9 independent directors on its 10 person Board, yet up to 900,000 customers lost huge amounts of money between 2003 and 2012 in the CBA financial advisers scandal. The case has not been made as to why retail fund managers, with their inferior performance record, should be given access to the retirement savings of working Australians.
REST continues to provide great financial security for its members and we need to protect it from being forced to become just another retail fund run by the banks. *APRA performance data ^P.38 “The Success of Representative Governance on Superannuation Boards”, The McKell Institute.
Two wins...
Two years in a row
Another Good Year for REST REST has returned a very good 9.47% result for members for the financial year ending 30 June 2015. This is well above REST’s long term target of CPI (inflation) + 3% for its core strategy option. REST remains one of Australia’s largest superannuation funds, with more than $37 billion invested on behalf of members. This size brings great security and insurance buying power for members. It also remains one of the best performing Australian funds and the information below shows REST’s outstanding performance over the long term. REST Super Core Strategy returns: 10 years: 7.82% 7 years: 7.57% 5 years: 10.17% 3 years: 13.67% 1 year: 9.47%
rest.com.au 1300 300 778 (8am-8pm weekdays)
Product issued by Retail Employees Superannuation Pty Ltd. Call us on 1300 300 778 or visit rest.com.au for a REST PDS to consider if it is right for you. Awards and ratings are only one factor to consider when deciding how to invest your super. RES5201SDA
SDA NEWS I SPRING 2015 I PAGE 19
October is Pink Ribbon Month Survival rates (at five years after diagnosis) have increased from 72% in 1982 to 89% in 2010.
Breast cancer is the most commonly diagnosed cancer in Australian women (excluding non-melanoma skin cancer), and although survival rates are improving, there is still much work to be done.
About breast cancer in Australia One in eight women will be diagnosed with breast cancer during their lifetime. In 2015, 15,600 women are expected to be diagnosed with breast cancer – that’s about 42 women each day. Approximately seven women will die from breast cancer each day.
The NBCF has a current focus on the following areas of research:
This means there are more women living with the aftermath of cancer and the potential for return.
Research into detection, prevention and management of breast cancer is crucial.
Although rare, breast cancer can also affect men, accounting for about 1% of cases. Approximately 140 Australian men are expected to receive a breast cancer diagnosis in 2015.
About the NaƟonal Breast Cancer FoundaƟon The National Breast Cancer Foundation is Australia’s leading community-supported organisation dedicated to funding highquality research into the prevention, detection and treatment of breast cancer. Since NBCF was established in 1994, more than $115 million has been awarded to over 400 Australian-based projects to improve the health and wellbeing of those affected by breast cancer.
Prevention and risk Early detection Familial breast cancer Novel therapies Personalising treatment Advanced breast cancer Survivorship Young women
NBCF Chair, Elaine Henry, said the approach to awarding funds is stringent and transparent, with applications going through a Research Advisory Committee, peer-review committees and the Board. “It’s a rigorous process that ensures every dollar is well spent and invested only in quality research and researchers; in the past 21 years we’ve funded significant breakthroughs and contributed to global knowledge about breast cancer,” she said. Dr Samantha Oakes, Garvan Institute of Medical Research, is a recipient of an Early Career Fellowship and is researching the mechanisms of breast cancer cell survival.
www.engagingmembers.com.au
PAGE 20 l SPRING 2015 l SDA NEWS
SDA Members can...
Go to the Movies at Discounted Prices!
“By understanding how breast cancer cells avoid cell death, we can develop better and more effective treatments to destroy cancer cells, while limiting damage to other parts of the body. I’m excited and motivated by the potential my work has to help people with breast cancer,” said Dr Oakes.
Everyone loves going to the movies! And thanks to the SDA’s Discount Movie Tickets scheme, financial members of the Union can go to the movies for as little as $11.00 for adults and $8.50 for children* at these cinemas: + Hoyts and Palace; + Events, Village and Birch Carroll
“Health and medical researchers around Australia face the reality of a severe funding crisis – the National Health & Medical Research Council estimated last year that of the applications that were deemed worthy of funding, fewer than 25 per cent actually received grants. “There is just not enough funding to go around, no matter how skilled or experienced you are. “That is why I am so thankful for the funding I’ve received from NBCF,” she said.
+ + + + +
& Coyle; Reading; IMAX Darling Harbour; Dendy; Chauvel; and Independent cinemas in Ballina, Batemans Bay, Byron Bay, Glenbrook, Griffith, Inverell, Manly, Merimbula, Nambucca Heads, Narooma, Port Macquarie, Randwick, Taree, Tuggeranong, Tuncurry, Ulladulla, Warrawong, and Yamba.
To Purchase your SDA Movie Tickets... + order online – sdansw.org.au, + phone the SDA on 131 SDA
Delegate Orazio Minni from Myer City was one of our runners in the recent City to Surf event. He raised over $800 for the NBCF and was rewarded with a personalised bib and pink jersey! Great work, Orazio.
HosƟng a Pink Ribbon Breakfast This October, thousands of Australians will host Pink Ribbon Breakfasts. Since the first Pink Ribbon Breakfast was held in 1998, the annual event has raised more than $20 million for life-changing breast cancer research, funded by NBCF. Hosting a Pink Ribbon Breakfast is a fun way to bring together friends, family and colleagues and raise money at the same time. For more information or to register, visit www.pinkribbonbreakfast.org.au
(131 732) with your credit card details, + purchase them in person at the SDA Sydney Office between 8.30am and 4.00pm Monday to Saturday (except on public holidays).
Ticket Prices* + Events**, Village and Birch
+ + + +
+
Carroll & Coyle: Adult $11.00^/Child $8.50^ Hoyts:** Adult $11.50/Child $9.00 Reading: Adult $11.00/Child $11.00 IMAX:# Adult $13.25/Child $13.25 Dendy, Chauvel, Majestic, and selected Independent cinemas: Adult $11.25/Child $11.25 Event Gold Class:# Adult $29.50/Child $29.50
Please note: All tickets are issued with an expiry date. *Prices are subject to change without notice. +Children’s tickets only available at Hoyts (valid for children aged 4-15 years), Village, Events, and Birch Carroll & Coyle Cinemas (valid for children aged 4-14 years). **Events (formerly Greater Union) and Hoyts vouchers are not valid for sessions after Saturdays at 5pm, VMAX, Gold Class, 3D/Real D, group bookings, movie marathons and special events or in conjunction with any other offer or promotion. #Not available in the first 10 days of a film’s release. ^From 1 July 2015
PAGE 20 l SPRING 2015 l SDA NEWS
InnovaƟve Safety Breakthrough at Unitrans This issue’s cover photo shows our member Dave from Unitrans Warehouse demonstrating an order picker that’s the first of its kind in the world. by Joe Bourke Warehousing and Order pickers are Manufacturing Organiser designed to enable operators to lift goods up to eight metres off the ground. While they are all equipped with harnesses to help protect operators, this new order picker has a truly innovative safety feature that will undoubtedly save lives. The main safety issue with order pickers is that the overloading capacity is different at different heights. The higher you go, the lower the safe lifting capacity is. It can be very difficult for operators to keep an accurate track of how much weight they are carrying and with different weights for different heights it can really come down to guesswork.
Get it wrong, and an operator can be seriously injured or die. A few years ago, I had to deal with a situation where an operator and an offsider were using a order picker during the Christmas rush. They were under a lot of pressure to put stock away. In the heat of this, they cut corners and overloaded the picker. They were operating at full reach and the picker fell over, spearing into the ground and seriously injuring and hospitalising both operator and offsider. I didn’t want to see this happen a second time. We raised our concern about this risk with site management who agreed that this was a legitimate and very important concern. When they discovered there were no off-the-shelf solutions, Unitrans and Toyota (the supplier of the machinery), the SDA and a scale manufacturer called Atlas collaborated to design this first-of-its-kind order picker that automatically measures the weight on the platform and sounds an alarm if load limits are approached.
This warning greatly increases an operator’s safety by minimising the risk of the order picker becoming overloaded and falling over. This was a great outcome for all involved – our members, the Union, the employer, even the machinery manufacturer. When unions so often receive negative press in the media, it’s worth remembering that this is what the real work of unions looks like on a day-to-day basis and that great outcomes can be achieved when unions work with reasonable employers who see that the presence of the union on site benefits everyone. Recent international research supports this, confirming that the greatest increases in performance and productivity actually occurred in workplaces where union density also increased in recent years. I’d really like to express my thanks to all the Delegates onsite at Unitrans Warehouse and all my other sites. You do your work, looking out for your workmates, on a volunteer basis. As I can’t be in all my sites every day, it’s really you who keep issues on the agenda. Thank you.
Is your workplace a carbon monoxide poisoning risk? Carbon monoxide (CO) is a gas that we know of because of car exhaust. CO inhalation can be a risk in enclosed spaces when fuel-powered machinery or vehicles are operating in enclosed spaces. There are also other sources of CO that by Jane Lui are not as obvious, including space heaters OHS Officer and water heaters. CO is actually odourless, so we can breathe it in without realising it (the smell of car and generator exhaust is caused by other chemicals). Signs of CO poisoning include: Dull headache Weakness Nausea Vomiting Confusion Dizziness Chest pain Members who suffer any of these symptoms should see a doctor, no matter how minor or transient it seems, and should fill out a Workcover claim form.
In severe cases, CO poisoning can lead to loss of consciousness. Long-term consequences can include brain damage, organ damage and even death.
Safeguards in the workplace Once a hazard is identified, there are steps that can be taken to minimise the risk of CO poisoning, such as: Installing a carbon monoxide detector; Installing and properly maintaining effective extractors; and Changing work practices so that people are not sitting in or in the vicinity of idling vehicles when the area is enclosed.
Who do I talk to about this? If you have concerns about a CO hazard in your workplace, report it in the first instance to your health and safety committee, health and safety representative and manager. If you need further assistance, speak to your SDA Delegate or Organiser or call the SDA Information Centre on 131 732.
SDA NEWS I SPRING 2015 I PAGE 21
The Sydney Tower Eye
Madame Tussauds
Sydney Aquarium, Darling Harbour
SDA members and their families are entitled to a 20% discount on single adult and child entry tickets upon presentation of their current SDA membership card.
SDA members and their families are entitled to a 20% discount on single adult and child entry tickets upon presentation of their current SDA membership card.
SDA members and their families are entitled to a 20% discount on single adult and child entry tickets upon presentation of their current SDA membership card.
SDA members and their families are entitled to a 20% discount on single adult and child entry tickets upon presentation of their current SDA membership card.
t (02) 9333 9222 a sydneytowereye.com.au
t (02) 9333 9240 a madametussauds.com/sydney
t (02) 8251 7800 a sydneyaquarium.com.au
t (02) 8251 7877 a manlysealifesanctuary.com.au
WILD LIFE Sydney
Australian National Maritime Museum
Currumbin Wildlife Sanctuary, Gold Coast
Featherdale Wildlife Park, Doonside
Manly SEA LIFE Sanctuary
SDA members and their families are entitled to a 20% discount on single adult and child entry tickets upon presentation of their current SDA membership card.
SDA members and their families are entitled to a 20% discount upon presentation of their current SDA membership card.
SDA members and their families are entitled to a 20% discount upon presentation of their current SDA membership card.
SDA members and their families are entitled to a 25% discount upon presentation of their current SDA membership card.
t (02) 9333 9288 a wild-life.com.au
t (02) 9298 3777 a anmm.gov.au
t (07) 5534 1266 a cws.org.au
t (02) 9622 1644 a featherdale.com.au
Gold Coast Attractions SDA members and their families are entitled to a 15% discount at these leading Gold Coast attractions:
Movieworld*
Seaworld*
Wet’n’Wild Dreamworld Water World*
White Water Skypoint World t (07) 5582 2700 t 133 FUN t 133 FUN (07) 5588 1111 (133 386) (133 386) t a skypoint. t (07) 5588 1111 t 133 FUN a whitewaterworld. myfun.com.au a myfun.com.au com.au a a myfun.com.au a dreamworld. com.au *Please note: you must pre-purchase your tickets through the SDA website to access the discounts on these attractions.
Illawarra Fly Treetop Adventures
ABC Driving School
SDA members and their families are entitled to a 20% discount on single adult and child entry tickets upon presentation of their current SDA membership card.
SDA members and their children receive $25 off the standard cost of five lessons with ABC Driving School. For more information, go to abcdrivingschool.com.au or see the White Pages for your nearest branch.
t 1300 362 881. a www.illawarrafly.com
Europcar Rentals
Coffs Harbour Driving School
SDA members receive exclusive rates when they rent with Europcar. Simply quote 47699503 when making your booking. No PIN or Velocity number is required. For more information, phone Europcar on 1300 131 390 or go to europcar.com.au.
Get five one-hour lessons for just $275 – that’s a saving of $5 per lesson. Phone (02) 6652 1096 and speak to Julian or Kaye for more information.
PAGE 22 l SPRING 2015 l SDA NEWS
Offer valid to 31 March 2016
SDA bumper P A I D P A R E N T A L L E
R Y N T E A B R E A K J N R
O A I B N D Q Z E P O C R U
D P O D A F S V K O O B E C
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C C V O T J K B M N I T O P
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I N E A M L O S R I E O T S
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WORDSEARCH M D C N N N D F A S T F O O
M E O U E G D N S K I G N I
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S I M E M B E R C R L I O V
S T I N F O S H E E T O B P
I R S U T U E M S E T A G E
O E S W U T L S T I F E N E
N V I R E S T P A U S E S K
U O O S E T T L E M E N T W
U T N E M E E R G A E S I R
O N E H U N D R E D P E R C
C O N D I T I O N S T E K R
C O M P E N S A T I O N I F
W H A S T Y O E C A L P K R
Z J H D E A S T E R S U N D
F E R E C O M M E N D A T I
F O R C P S K L T Y A E N U
L L E D O M E T I T L N O O
O E N Y A E N I O I Y T I H
I V A T I N D T N L A S T E
C A R E A T L N D A D E A R
L E D F R E A E T T G T T A
B L O A T P R F O R N H L W
A E R S E T A R R O I N U J
O R K L O A D U N M X I S K
P R E T N E E S L Y O D N A
E N T E N T N O V I B P O C
A M R E P U S T E S T U C B
E O N O W A S Y A D I L O H
O W R F U L L T I M E T H S
A Y A N D S E I B A B A E D
O N S O R E A C T I O N R A
HOW MANY OF THESE WORDS CAN YOU FIND? They may be horizontal, vertical, backwards or forwards PAID PARENTAL LEAVE BIRTH BOND BABIES PETITION PRODUCTIVITY COMMISSION PENALTY RATES SAVE OUR WEEKEND FAIR WORK COMMISSION DEFEND ATTACK MODELLING
ACTU FACEBOOK UNION SEXUAL HARASSMENT LEADVE LODAING RECOVER BACKPAY ENTERPRISE AGREEMENT TRAINING DELEGATES REST PAUSES NEGOTIATE
SETTLEMENTS CITY TO SURF ONE HUNDRED PERCENT BENEFITS BELONG JOIN MEMBER SUPERANNUATION ENTITLEMENTS SUPERMARKET STORE LEGAL
COMPENSATION JUNIOR RATES INCREASE MORTALITY BENEFITS WORKPLACE EASTER SUNDAY BOXING DAY CELEBRATION HOLIDAYS TOGETHER GOVERNMENT FULL TIME PART TIME
CASUAL RETAIL MANUFACTURING FAST FOOD WAREHOUSING RECOMMENDATIONS OPPOSING INFOSHEET SAFETY CONSULTATION TEA BREAK LUNCH BREAK OVERTIME
WORKLOAD CONDITIONS REACTION COPE SYMPTOMS PAIN CHANGE ACTION RISK STRESS PROTECT SDA STRONG
SDA NEWS I SPRING 2015 I PAGE 23
SDA FINANCIAL REPORTS 2015
SHOP, DISTRIBUTIVE & ALLIED EMPLOYEES’ ASSOCIATION ANNUAL FINANCIAL REPORT AS AT 30 JUNE 2015 OPERATING REPORT FOR THE YEAR ENDED 30 JUNE 2015
The members of the National Executive present their report together with the financial report of Shop, Distributive & Allied Employees’ Association (‘the Association’) for the financial year ended 30 June 2015 and the auditor’s report thereon. 1. Membership Membership of the Association as at 30 June 2015 was 209,706 (2014: 209,838). Persons eligible to do so under the rules of the Association were actively encouraged to join the Association. Pursuant to s174 of the Fair Work (Registered Organisations) Act 2009 (“RO Act”) and in accordance with Rule 27 of the Association, members have the right to resign from the Association by written notice to the appropriate Branch of the Association. 2. Committee of Management The members of the National Executive of the Association at any time during or since the end of the financial year are: Name Experience Mr Joseph de Bruyn National Executive Member since 1978 National President National Secretary-Treasurer 1978-2014 Elected National President 2014 Mr Michael Donovan National Executive Member since 1996 National Vice President Elected National Vice President 2014 Mr Gerard Dwyer National Executive Member since 2005 National Secretary-Treasurer National President 2008-2014 Elected National Secretary-Treasurer 2014 Mr Ian Blandthorn National Executive Member since 1986 National Assistant Secretary Elected National Assistant Secretary 1986 Mr Paul Griffin National Executive Member since 1990 Ms Barbara Nebart National Executive Member since 2004 Mr Peter Malinauskas National Executive Member since 2008 Mr Bernie Smith National Executive Member since 2014 Mr Chris Gazenbeek National Executive Member since 2014 Mr Peter O’Keeffe National Executive Member since 2014 Mr Joseph Bullock (retired) National Executive Member 1996-2014 National Vice President 2004-2014 Mr Chris Ketter (retired) National Executive Member 1996-2014 3. Affiliations & Directorships The Association, through its Branches, is affiliated with the Australian Labor Party (“ALP”). Delegates were credentialed to various state and national meetings of the ALP. The National Secretary-Treasurer is a member of the ALP National Executive and the Australian Labor Advisory Council. The Association is affiliated with the Australian Council of Trade Unions (“ACTU”). The National Secretary-Treasurer is Senior Vice President of the ACTU. Three other representatives of the Association are also members of the ACTU Executive. Officials of the Association are active on a range of ACTU Committees, including finance, health and safety, women, vocational education and training, future international industrial legislation. The Association is affiliated to Union Network International (“UNI”). Various officials of the Association hold elected positions within UNI. The National Secretary-Treasurer is Vice President of UNI-APRO. The National Assistant Secretary is a Director of the Service Industries Skills Council. 4. Principal Activities The Association maintained its industrial awards and agreements at a high, up-to-date standard, and produced a range of publications for its members. New enterprise agreements were negotiated with a wide range of employers including but not limited to Coles, Country Road, Dan Murphy’s, Hugo Boss, Australian Geographic, Aldi, Bras & Things, Masters, and The Reject Shop. These agreements all resulted in improved wages and working conditions for the employees covered by them. The Association continues its defence of penalty rates in its major awards and also protects other entitlements from attack by employers. The Association also ran a major test case in support of the principle of the adult rate of pay at 18 years of age, and was successful in achieving the adult rate at 20 years in the General Retail Industry Award. The Association has also actively opposed legislation by the Abbott Government to take away basic entitlements of workers since its election to office on 7 September, 2013 and, particularly, various regressive provisions aimed against low paid workers in the 2014/2015 Federal Budget. There were no significant changes in the Association during the financial year in the nature of its activities and financial affairs. At 30 June 2015, there were 12 effective full-time equivalent employees of the National Office of the Association (2014: 12). 5. Superannuation Trustees Four representatives of the Association hold positions as Directors of the Retail Employees’ Superannuation Trust (“REST”). Below are the directors as at 30 June 2015, along with the nominated alternate Employee Directors. Directors: Alternates: Mr Joseph de Bruyn Mr Gerard Dwyer Mr Ian Blandthorn Mr Michael Donovan Mr Geoff Williams Mr Peter Malinauskas Ms Sue-Anne Burnley Ms Julia Fox National Executive Member Mr Paul Griffin is a Director of the Tasplan Superannuation Fund. An official of the Association, Ms Sue-Anne Burnley, is also a Director of CARE Super Pty Ltd. 6. SDA Report to the Workplace Gender Equality Agency The Shop, Distributive and Allied Employees’ Association, as required by the Workplace Gender Equality Act 2012, lodged its public report for the reporting year 2014-2015, to the Workplace Gender Equality Agency, on the 29th May 2015. The report is available on the SDA National website at www.sda.org.au 7. Information to be provided to Members or General Manager In accordance with the requirements of subsection 272(5) of the RO Act, the attention of members is drawn to the provisions of subsections (1), (2) and (3) of section 272, which states 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). Dated at Melbourne this 21st day of August, 2015 JOSEPH DE BRUYN, NATIONAL PRESIDENT
GERARD DWYER, NATIONAL SECRETARY-TREASURER
COMMITTEE OF MANAGEMENT STATEMENT
We, Gerard Dwyer and Joseph de Bruyn, being two members of the National Executive of the Association, do state on behalf of the National Executive and in accordance with a resolution passed by the National Executive on 21st August 2015 in relation to the accompanying general purpose financial report that, in the opinion of the National Executive: (a) the financial statements and notes set out on pages 8 to 40 comply with the Australian Accounting Standards; (b) the financial statements and notes set out on pages 8 to 40 comply with the reporting guidelines of Fair Work Australia (“FWA”); (c) the financial statements and notes present a true and fair view of the financial performance, financial position and cash flows of the Association for the financial year ended 30 June 2015; (d) there are reasonable grounds to believe that the Association will be able to pay its debts as and when they become due and payable; (e) during the financial year ended 30 June 2015 and since the end of that year: (i) meetings of the executive were held in accordance with the rules of the Association; (ii) the financial affairs of the Association have been managed in accordance with the rules of the Association; (iii) the financial records of the Association have been kept and maintained in accordance with the Fair Work (Registered Organisations) Act 2009 (“RO Act”) and the RO Regulations; (iv) the financial records of the Association have been kept, as far as practicable, in a consistent manner for each of the branches of the Association; (v) to the knowledge of any member of the National Executive, there have been no instances of information sought in any request of a member of the Association or FWA duly made under section 272 of the RO Act that have not been furnished to the member or FWA; (vi) no orders for inspection of financial records have been made by FWA under section 273 of the RO Act; and (vii) in relation to the recovery of wages activity, there has been no such activity undertaken by the Association and no revenue derived. Dated at Melbourne this 21st day of August 2015 JOSEPH DE BRUYN, NATIONAL PRESIDENT
GERARD DWYER, NATIONAL SECRETARY-TREASURER
CERTIFICATE BY NATIONAL SECRETARY-TREASURER
I, Gerard Dwyer, being the officer responsible for keeping the accounting records of the Association certify that as at 30 June 2015 the number of members of the Association was 209,706. In my opinion: (i) the accompanying financial report set out on pages 8 to 40 presents a true and fair view of the financial position of the Association as at 30 June 2015; (ii) a record has been kept of all monies paid by or collected from members of the Association and all monies so paid or collected have been credited to the bank account to which those monies are to be credited in accordance with the rules of the Association; (iii) before any expenditure was incurred by the Association, approval of the incurring of the expenditure was obtained in accordance with the rules of the Association; (iv) no payments were made out of funds or accounts operated by the Association in respect of compulsory levies raised by the Association or voluntary contributions collected from members of the Association or other funds, the operation of which is required by the rules of the Association for a purpose other than the purpose for which the funds or accounts were operated; (v) no loans or other financial benefits other than remuneration in respect of their full time employment with the Association were made to persons holding office in the Association; and (vi) the Register of Members of the Association was maintained in accordance with the Fair Work (Registered Organisations) Act 2009. Dated at Melbourne this 21st day of August 2015
GERARD DWYER, NATIONAL SECRETARY-TREASURER
STATEMENT OF FINANCIAL POSITION
As at 30 June 2015 Assets Cash and cash equivalents Receivables Other financial assets Total current assets Investment property Property, plant and equipment Employee benefits Total non-current assets TOTAL ASSETS Liabilities Trade and other payables Employee benefits Total current liabilities Employee benefits Total non-current liabilities TOTAL LIABILITIES NET ASSETS Equity Retained earnings TOTAL EQUITY
Note
2015 $
2014 $
9 10 11
1,002,326 699,547 27,300,000 29,001,873 17,400,000 423,878 625,388 18,449,266 47,451,139
1,460,407 428,286 25,300,000 27,188,693 15,300,000 316,199 470,908 16,087,107 43,275,800
451,409 794,459 1,245,868 4,267 4,267 1,250,135 46,201,004
406,915 878,835 1,285,750 13,870 13,870 1,299,620 41,976,180
46,201,004 46,201,004
41,976,180 41,976,180
12 13 15
14 15 15
The notes on pages 12 to 40 are an integral part of these financial statements.
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2015 Income Capitation fees Other income
Note
2015 $
2014 $
21
5,868,094 5,868,094 3,851,366 9,719,460
4,852,875 4,852,875 1,966,088 6,818,963
562,245 435,874 1,536,975 25,000 207,598 248,211 57,347 267,208 549,998 260,557 148,026 465,561 1,537,274 212,635 6,514,509 3,204,951
532,405 431,178 1,491,938 24,284 560,657 360,213 42,462 792,094 150,078 225,594 133,604 540,338 1,542,686 155,172 6,982,703 (163,740)
823,960 823,960 4,028,911
812,098 812,098 648,358
195,913 195,913 4,224,824
507,317 507,317 1,155,675
7
Expenditure 53 Queen St, Melbourne - direct operating expenses ACTU IR Campaign Levy Affiliation fees Auditors’ fees Campaigning expenses Delegates expenses Depreciation Donations Legal expenses Meeting expenses Office & administration expenses Other expenses Personnel expenses Travel expenses Total Expenses Result from Operating Activities Finance income Interest income
21 21 8 13
19
11
Income tax expense 4(k) PROFIT FOR THE PERIOD Other comprehensive income Items that will never be reclassified to profit or loss Remeasurement of defined benefit asset 15 Income tax on other comprehensive income 4(k) Items that are or may be reclassified to profit or loss Other comprehensive income, net of tax TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
The notes on pages 12 to 40 are an integral part of these financial statements.
STATEMENT OF CHANGES IN EQUITY
Note Retained For the year ended 30 June 2015 earnings $ 41,976,180 Balance at 1 July 2014 Total comprehensive income for the period Profit for the period 4,028,911 Other comprehensive income Remeasurement of defined benefit asset, net of tax 15 195,913 Total comprehensive income for the period 4,224,824 Transactions with members of the Association, recognised directly in equity Balance at 30 June 2015 46,201,004 Balance at 1 July 2014 40,820,505 Total comprehensive income for the period Profit for the period 648,358 Other comprehensive income Remeasurement of defined benefit asset, net of tax 15 507,317 Total comprehensive income for the period 1,155,675 Transactions with members of the Association, recognised directly in equity Balance at 30 June 2014 41,976,180 The notes on pages 12 to 40 are an integral part of these financial statements.
SDA NEWS SPRING 2015 PAGE 24
Total equity $ 41,976,180 4,028,911 195,913 4,224,824 46,201,004 40,820,505 648,358 507,317 1,155,675 41,976,180
SDA FINANCIAL REPORTS 2015 STATEMENT OF CASH FLOWS For the year ended 30 June 2015 Note Cash flows from operating activities Cash receipts from operations Cash paid to suppliers and employees Cash generated from operations Interest received Net cash from operating activities 20 Cash flows from investing activities Acquisition of term deposits Acquisition of property, plant and equipment 13 Acquisition of investment property Proceeds on sale of property, plant and equipment Net cash (used in) investing activities Cash flows from financing activities Net cash from/(used in) financing activities Net decreases/(increases) in cash and cash equivalents Cash and cash equivalents at 1 July CASH AND CASH EQUIVALENTS AT 30 JUNE 9 The notes on pages 12 to 40 are an integral part of these financial statements.
2015 $
2014 $
8,477,262 (7,256,305) 1,220,957 828,857 2,049,814
7,385,454 (7,545,670) (160,216) 845,748 685,532
(2,000,000) (181,073) (334,710) 7,888 (2,507,895)
(200,000) (69,295) 1,385 (267,910)
(458,081) 1,460,407 1,002,326
417,622 1,042,785 1,460,407
NOTES TO FINANCIAL STATEMENTS
1. REPORTING ENTITY Shop, Distributive & Allied Employees’ Association (the ‘Association’) is an Association domiciled in Australia. The address of the Association’s registered office is Level 6, 53 Queen Street, Melbourne. The financial report of the Association for the financial year ended 30 June 2015 comprises the National Account and the International Fund. The Association is a not-for-profit entity and primarily is involved in retail trade union activities. 2. BASIS OF PREPARATION a) Statement of compliance The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards (‘AASBs’) adopted by the Australian Accounting Standards Board (‘AASB’) and the Fair Work (Registered Organisations) Act 2009. The financial statements were approved by the National Executive on 21st August 2015. b) Basis of measurement The financial report is prepared on the historical cost basis except for the following material items in the statement of financial position: • investment property is measured at fair value; and • the defined benefit asset is recognised as the net total of the plan assets, plus unrecognised past service cost and unrecognised actuarial losses, less unrecognised actuarial gains and the present value of the defined benefit obligation. c) Functional and presentation currency The financial report is presented in Australian dollars, which is the Association’s functional currency. d) Use of estimates and judgements The preparation of financial statements in conformity with AASBs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. (i) Judgements Information about critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements is included in the following notes: • Note 12 – valuation and classification of investment property. • Note 17 – lease classification. (ii) Assumptions and estimation uncertainties Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following note: • Note 15 – measurement of defined benefit obligations: key actuarial assumptions. Measurement of fair values A number of the Association’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Association has an established control framework with respect to the measurement of fair values. Significant fair value measurements are overseen and reviewed regularly, including unobservable inputs and valuation adjustments. If third party information is used to measure fair values, the Association assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of AASBs, including the level in the fair value hierarchy in which such valuations should be classified. Significant valuation issues are reviewed by the Association’s Audit and Risk Committee. When measuring the fair value of an asset or a liability, the Association uses market observable data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows. • Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). • Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs). If the inputs used to measure the fair value of an asset or a liability might be categorised in different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Association recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. Further information about the assumptions made in measuring fair values is included in the following notes: • Note 12 – investment property. 3. CHANGES IN ACCOUNTING POLICIES The Association has consistently applied the accounting policies set out in Note 4 for all periods presented in these financial statements. 4. SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently to all periods presented in these financial statements, and have been applied consistently by the Association. a) Financial instruments (i) Non-derivative financial assets The Association initially recognises receivables and deposits on the date that they originate. All other financial assets (including assets designated at fair value through profit and loss) are recognised initially on the trade date at which the Association becomes a party to the contractual provisions of the instrument. The Association derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Association is recognised as a separate asset or liability. Financial assets and liabilities are offset and the net amount presented in the financial position when, and only when, the Association has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The Association has the following non-derivative financial assets: held-to maturity financial assets, receivables, and cash and cash equivalents. Held-to-maturity financial assets Held-to-maturity financial assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition held-to-maturity financial assets are measured at amortised cost using the effective interest method, less any impairment losses (see note 4e(i)). Any sale or reclassification of a more than insignificant amount of held-to-maturity investments not close to their maturity would result in the reclassification of all held-to-maturity investments as available-for-sale, and prevent the Association from classifying investment securities as held-to-maturity for the current and the following two financial years. Held to maturity financial assets comprise Term Deposits held with the Commonwealth Bank of Australia (see note 11). Receivables Receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition receivables are measured at amortised cost using the effective interest method, less any impairment losses (see note 4e(i)). Receivables comprise accrued income, prepayments and sundry debtors (see note 10).
Cash and cash equivalents Cash and cash equivalents comprise cash balances and bank bills with original maturities of three months or less from the acquisition date that are subject to an insignificant risk of changes in their fair value, and are used by the Association in the management of short-term commitments. (ii) Non-derivative financial liabilities The Association’s other financial liabilities are recognised initially on the trade date which is the date that the Association becomes a party to the contractual provisions of the instrument. The Association derecognises a financial liability when its contractual obligations are discharged or cancelled or expire. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Association has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The financial liabilities are recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are measured at amortised cost using the effective interest rate method. Other financial liabilities comprise trade and other payables. (iii) Share capital The Association is an unincorporated registered organisation under the Fair Work (Registered Organisations) Act 2009 and does not have share capital. (b) Foreign currency (i) Foreign currency transactions Transactions in foreign currencies are translated to the functional currency of the Association at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the period, adjusted for effective interest and payments during the period, and the amortised cost in foreign currency translated at the exchange rate at the end of the year. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Nonmonetary items in a foreign currency that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction. Foreign currency differences arising on retranslation are recognised in profit or loss. c) Property, plant and equipment (i) Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and is recognised net within other income/other expenses in profit or loss. (ii) Subsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Association and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-today servicing of property, plant and equipment are recognised in profit or loss as incurred. (iii) Depreciation Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value. Depreciation is recognised in profit or loss on a straight-line or diminishing value over the estimated useful lives of each part of an item of property, plant and equipment, to most closely reflect the expected pattern of consumption of the future economic benefits embodied in the asset. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Association will obtain ownership by the end of the lease term. The estimated useful lives in the current and comparative periods are as follows: 2015 2014 • Leasehold improvements 5-20 years 6-20 years • Fixtures and fittings 4-20 years 4-20 years • Motor vehicles 8 years 8 years Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate. d) Investment property Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Investment property is measured at cost on initial recognition and subsequently at fair value with any change therein recognised in profit or loss. Cost includes expenditure that is directly attributable to the acquisition of the investment property. The cost of self-constructed investment property includes the cost of materials and direct labour, any other costs directly attributable to bringing the investment property to a working condition for their intended use and capitalised borrowing costs. Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in profit and loss. When an investment property that was previously classified as property, plant and equipment is sold, any related amount included in the revaluation reserve is transferred to retained earnings. When the use of a property changes such that it is reclassified as property, plant and equipment, its fair value at the date of reclassification becomes its cost for subsequent accounting. e) Impairment (i) Non-derivative financial assets A financial asset not carried at fair value through profit or loss is assessed at each financial reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event has a negative effect on the estimated future cash flows of that asset that can be estimated reliably. Objective evidence that financial assets (including receivables) are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Association on terms the Association would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, or the disappearance of an active market for a security. Financial asset at amortised cost The Association considers evidence of impairment for receivables at both a specific asset and collective level. All individually significant receivables are assessed for specific impairment, and those found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Receivables that are not individually significant are collectively assessed for impairment by grouping together those with similar risk characteristics. In assessing collective impairment the Association uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current economic and credit conditions are such that actual losses are likely to be greater or less than suggested by historical trends. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account against receivables or held-to-maturity investment securities. Interest on the impaired asset continues to be recognised. When a subsequent event (e.g. repayment by a debtor) causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss. (ii) Non-financial assets The carrying amounts of the Association’s non-financial assets, other than investment property, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit (CGU) exceeds its recoverable amount. A CGU is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups. Impairment losses are recognised in profit or loss. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is only reversed to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
SDA NEWS SPRING 2015 PAGE 25
SDA FINANCIAL REPORTS 2015 f) Employee benefits (i) Defined benefit plans The Association’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Association, the recognised asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements. Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in OCI. The Association determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss. When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. The Association recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs. (ii) Other long-term employee benefits The Association’s net obligation in respect of long-term employee benefits other than defined benefit superannuation funds is the amount of future benefit that employees have earned in return for their service in the current and prior periods plus related on-costs; that benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is the yield at the reporting date on corporate bonds that have maturity dates approximating the terms of the Association’s obligations in which the benefits are expected to be paid. (iii) Short-term benefits Liabilities for employee benefits for wages, salaries, annual leave and sick leave represent present obligations resulting from employees’ services provided to reporting date and are calculated at undiscounted amounts and expensed based on remuneration wage and salary rates that the Association expects to pay as at reporting date including related on-costs, such as workers compensation insurance and payroll tax. Amounts that are expected to be settled beyond 12 months are measured in accordance with long term benefits. g) Provisions A provision is recognised if, as a result of a past event, the Association has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. h) Revenue (i) Capitation fees Capitation fees are fees received from the state branches of the Association in accordance with the rules of the Association. Such fees are referred to as affiliation fees in the rules and are calculated as a percentage of gross Branch membership income and paid annually in March. Under AASB 1004 governing the recognition, measurement and disclosure requirements surrounding contributions to not-for-profit entities, as the fees received represent a non-reciprocal transfer (no resulting equivalent obligations to the branch for fees paid) the capitation fees are accounted for as revenue and recognised upon receipt. (ii) Rental income Rental income from investment property is recognised in profit or loss on a straight line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease. i) Finance income Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in profit or loss, using the effective interest method. Foreign currency gains and losses are reported on a net basis as either finance income or finance cost depending on whether foreign currency movements are in a net gain or net loss position. j) Leases (i) Lease payments Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease. Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. (ii) Determining whether an arrangement contains a lease At inception of an arrangement, the Association determines whether such an arrangement is or contains a lease. This will be the case if the following two criteria are met: • the fulfilment of the arrangement is dependent on the use of a specific asset or assets; and • the arrangement contains a right to use the asset(s). At inception or upon reassessment of the arrangement, the Association separates payments and other consideration required by such an arrangement into those for the lease and those for other elements on the basis of their relative fair values. If the Association concludes for a finance lease that it is impracticable to separate the payments reliably, an asset and a liability are recognised at an amount equal to the fair value of the underlying asset. Subsequently the liability is reduced as payments are made and an imputed finance charge on the liability is recognised using the Association’s incremental borrowing rate. k) Income tax The Association is exempt from income tax under Division 50, section 50-15 of the Income Tax Assessment Act 1997. l) Goods and services tax Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated with the amount of GST excluded, as the Association reports to the ATO for GST on a cash-basis. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet. Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows. m) Segment reporting An operating segment is a component of the Association that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the other Association’s other components. All operating segments’ operating results are reviewed regularly by the Association’s office holders to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available. n) New standards and interpretations not yet adopted A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 July 2014, and have not been applied in preparing these consolidated financial statements. Those which may be relevant to the Association are set out below. The Association does not plan to adopt these standards early. (i) AASB 9 Financial Instruments (2010), AASB 9 Financial Instruments (2009) AASB 9 Financial Instruments (2009) introduces new requirements for the classification and measurement of financial assets. Under AASB 9 (2009), financial assets are classified and measured based on the business model in which they are held and the characteristics of their contractual cash flows. AASB 9 (2010) introduces additions relating to financial liabilities. The IASB currently has an active project that may result in limited amendments to the classification and measurement requirements of AASB 9 and add new requirements to address the impairment of financial assets and hedge accounting. AASB 9 (2010 and 2009) are effective for annual periods beginning on or after 1 July 2018 with early adoption permitted. The extent of the impact has not been determined by the Association. (ii) AASB 15 Revenue from Contracts with Customers AASB 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces existing revenue recognition guidance, including AASB 118 Revenue, AASB 111 Construction Contracts and IFRIC 13 Customer Loyalty Programmes. AASB 15 is effective for annual reporting periods beginning on or after 1 January 2018. The extent of the impact has not been determined by the Association. 5. SEGMENT REPORTING The Association operates in one geographical location, being Australia and in one industry, being trade union activities for the benefit of its members.
6. FINANCIAL RISK MANAGEMENT The Association has exposure to the following risks from their use of financial instruments: a) Credit risk b) Liquidity risk c) Market risk d) Operational risk This note presents information about the Association’s exposure to each of the above risks, their objectives, policies and processes for measuring and managing risk, and their management of capital. Further quantitative disclosures are included throughout these financial statements. Risk Management Framework The National Executive has overall responsibility for the establishment and oversight of the risk management framework. Risk management policies are established to identify and analyse the risks faced by the Association, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Association’s activities. The Association, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. a) Credit risk Credit risk is the risk of financial loss to the Association if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Association’s receivables from customers and other financial assets. (i) Receivables The Association’s exposure to credit risk is influenced mainly by the individual characteristics of each customer or tenant. Credit evaluations are performed on all tenants of the investment property prior to the signing of a lease agreement and security deposits are required by way of bank guarantees or cash, to be held for the term of all leases. None of the tenants were in arrears at the balance sheet date and there is no indication to management that any of the tenants present a significant credit risk. All receivables are with tenants in the Australian geographical region and therefore no impairment loss has been recognised at balance date (2014: no impairment loss). (ii) Cash and cash equivalents The Group held cash and cash equivalents of $1,002,326 at 30 June 2015 (2014: $1,460,407), which represents its maximum credit exposure on these assets. The cash and cash equivalents are held with bank and financial institution counterparties, which are located in Australia. b) Liquidity risk Liquidity risk is the risk that the Association will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Association’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Association’s reputation. The Association prepares budgets and cash flow forecasts, which assists it in monitoring cash flow requirements and optimising its cash return on investments. Typically the Association ensures that it has sufficient cash on demand to meet expected operational expenses for a period of at least 120 days, the maximum term of its primary financial assets being term deposits. This excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. Refer to note 16. c) Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Association’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. (i) Currency risk The Association has limited exposure to currency risks on International Fund transactions (international affiliation fees and donations) that are denominated in a currency other than the functional currency, being the Australian dollar (AUD). The currencies in which these transactions primarily are denominated are Swiss Francs (CHF) and Singapore dollars (SGD). Refer to note 16 for further details. The Association uses at its discretion forward exchange contracts (typically 1-3 months) to hedge its currency risk, with maturity dates the same as the due dates of the International Fund transactions. At reporting date there were no forward exchange contracts in place. (ii) Interest rate risk The Association’s interest rate risk arises from its investments in bank bills, term deposits and cash management accounts. Bank bills and term deposits are issued at fixed rates for terms of between 30 and 120 days. The Association maintains a number of different bank bills and term deposits maturing at regular intervals to smooth fluctuations in interest rates being offered. The majority of cash reserves are held in term deposits, with cash management bank accounts (with variable interest rates) used to provide liquidity funds at call. d) Operational risk Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Association’s processes, personnel, technology and infrastructure, and from external factors other than credit, market and liquidity risks such as those arising from legal and regulatory requirements and generally accepted standards of corporate behaviour. Operational risks arise from all of the Association’s operations. The Association’s objective is to manage operational risk so as to balance the avoidance of financial losses and damage to the Association’s reputation with overall cost effectiveness and to avoid control procedures that restrict initiative and creativity. The primary responsibility for the development and implementation of controls to address operational risk is assigned to senior management within the Association. This responsibility is supported by the development of overall Association standards for the management of operational risk in the following areas: • Requirements for appropriate segregation of duties, including the independent authorisation of transactions; • Requirements for the reconciliation and monitoring of transactions; • Compliance with regulatory and other legal requirements; • Documentation of controls and procedures; • Requirements for the periodic assessment of operational risks faced, and the adequacy of controls and procedures to address the risks identified; • Requirements for the reporting of operational losses and proposed remedial action; • Development of contingency plans; • Training and professional development; • Ethical and business standards; • Risk mitigation, including insurance where this is effective. Capital management The Association’s policy is to maintain a strong capital base so as to maintain member, creditor and market confidence and to sustain future development of the union’s activities. The National Executive monitors the return on capital and seeks to maintain a conservative position between higher returns and the advantages and security afforded by a sound capital position. There were no changes in the Association’s approach to capital management during the year, and the Association is not subject to externally imposed capital requirements. 7. OTHER INCOME Note 2015 $ 2014 $ 53 Queen Street, Melbourne - Rental income from investment property 17 1,284,929 1,093,609 53 Queen Street, Melbourne - Fair value increment 12 1,765,290 ACTU trust distributions 21 34,950 100,609 SDA Branch Reimbursements 21 422,599 582,388 Other organisation reimbursements 158,962 CARE director’s fees 59,106 53,543 REST director’s fees 21 125,114 134,554 416 1,385 Other income 3,851,366 1,966,088 8. AUDITOR’S REMUNERATION Audit services Auditors of the Association KPMG Australia: Audit and review of financial reports 25,000 24,284 25,000 24,284 Other services Auditors of the Association KPMG Australia: Other assurance services 2,531 2,460 2,531 2,460 TOTAL AUDITORS’ REMUNERATION 27,531 26,744
SDA NEWS SPRING 2015 PAGE 26
SDA FINANCIAL REPORTS 2015 9. CASH AND CASH EQUIVALENTS Cash at bank Cash management accounts Term deposits
Note
2015 $ 2014 $ 131,920 138,487 775,183 1,197,222 95,223 124,698 1,002,326 1,460,407 The Association’s exposure to interest rate risk and a sensitivity analysis for financial assets is disclosed in note 16. 10. RECEIVABLES Accrued interest income 128,871 133,768 Prepayments 73,436 56,496 Related party debtors 21 3,116 497,240 234,906 Sundry debtors 699,547 428,286 The Association’s exposure to credit and currency risks, and impairment losses related to receivables is disclosed in note 16. 11. OTHER FINANCIAL ASSETS 27,300,000 25,300,000 Term deposits 27,300,000 25,300,000 Term deposits have stated interest rates of 2.75 to 3.00 percent (2014: 3.40 percent) and mature in 120 days or more. The Association’s exposure to credit and interest rate risk is disclosed in note 16. During the year ended 30 June 2015, the Association received interest income of $823,960 (2014: $812,098) in respect of financial assets not at fair value through profit and loss. 12. INVESTMENT PROPERTY (a) Reconciliation of carrying amount Property Balance at 1 July 15,300,000 15,300,000 Capital Improvements 334,710 Fair value adjustment (refer below) 1,765,290 Balance at 30 June 17,400,000 15,300,000 Lease incentives Balance at 1 July 32,296 Amortisation of lease incentives (32,296) Balance at 30 June 17,400,000 15,300,000
Investment property comprises a commercial property located at 53 Queen Street, Melbourne. The Association retains possession of levels 6 and 7 as its registered head office and leases the remaining floors to third parties. Each of the leases contains an initial non-cancellable period of a minimum of three years, with fixed percentage annual rent increases. Some lease incentives were paid towards tenancy fit-outs and are being amortised over the period of the leases on a straight line basis. Subsequent renewals are negotiated with the lessee and on average renewal periods are 4 years. No contingent rents are paid. Further information about these leases are contained in Note 17. (b) Measurement of fair value (i) Fair value hierarchy The fair value of investment property was determined by external, independent property valuers, having appropriate recognised professional qualifications and recent experience in the location and category of the property being valued. The independent valuers provide the fair value of the Association’s investment property at least every two years. In years where external, independent valuations are not obtained, these are substituted with Association management performing internal valuations utilising publicly available market data for properties with similar characteristics to the Association’s investment property. The fair value measurement for investment property of $17,400,000 was determined at 30 June 2015 by Trent Preece, Associate Director and certified practising valuer of M3 Property P/L, a registered independent appraiser having an appropriate recognised professional qualification in Australian Property Institute and recent experience in the location and category of the property being valued. The fair value measurement has been categorised as a Level 3 fair value based on the inputs to the valuation technique used (see Note 2(d)). (ii) Level 3 fair value – valuation technique and significant unobservable inputs The following shows the valuation technique used in measuring the fair value of investment property, as well as the significant unobservable inputs used. Valuation techniques: Discounted cash flow approach (2015), Capitalisation approach (2014) Discounted cash flow approach: The discounted cash flow approach involves formulating a projection of net income over a specified horizon, typically ten years, and discounting this cash flow including the projected terminal value at the end of the projection period at an appropriate rate. The present value of this discounted cash flow represents the Market value of the property. Capitalisation approach: The valuation model involves estimating the potential sustainable Gross Market Income of a property from which annual outgoings are deducted to derive the Net Market Income. This Net Market Income is then capitalised at an appropriate rate derived from analysis of comparable sales evidence. Adjustments to the capitalised value are then made for items including profit rent/shortfall derived from passing rents which are above or below market, letting up allowance over vacant areas including foregone rental and outgoings over the assumed letting up period and outstanding lease incentives including rent free periods. Significant unobservable inputs • 2015: Discount rate 8.00%, • 2014: Capitalisation rate 7.75%. Inter-relationship between key unobservable inputs and fair value measurement The estimated fair value would increase (decrease) if: • 2015: The discount rate was lower (higher). • 2014: The capitalisation rate was lower (higher). 13. PROPERTY, PLANT AND EQUIPMENT Cost Furniture and Motor Leasehold Total fittings $ Vehicles $ Improvements $ $ Balance at 1 July 2014 186,623 92,189 393,717 672,529 Acquisitions 12,465 91,455 77,153 181,073 Impairments (3,449) (3,449) Disposals (92,189) (92,189) 195,639 91,455 470,870 757,964 Balance at 30 June 2015 Balance at 1 July 2013 211,712 92,189 331,840 635,741 Acquisitions 7,418 61,877 69,295 Impairments (32,507) (32,507) Balance at 30 June 2014 186,623 92,189 393,717 672,529 Depreciation and impairment losses Balance at 1 July 2014 143,792 73,839 138,699 356,330 Depreciation expense for the year 15,134 13,740 28,473 57,347 Impairments (3,449) (3,449) Disposals 200 (76,342) (76,142) Balance at 30 June 2015 155,677 11,237 167,172 334,086 Balance at 1 July 2013 161,545 68,686 116,144 346,375 Depreciation expense for the year 14,754 5,153 22,555 42,462 Impairments (32,507) (32,507) Balance at 30 June 2014 143,792 73,839 138,699 356,330 Carrying amounts At 1 July 2014 42,831 18,350 255,018 316,199 At 30 June 2015 39,962 80,218 303,698 423,878 At 1 July 2013 50,167 23,503 215,696 289,366 At 30 June 2014 42,831 18,350 255,018 316,199 14. TRADE AND OTHER PAYABLES Sundry creditors PAYG withholding tax payable Tenant security deposit Unearned rental income The Association’s exposure to liquidity risk is disclosed in note 16 (b).
2015 $ 323,175 23,644 92,523 12,067 451,409
2014 $ 250,896 31,321 124,698 406,915
15. EMPLOYEE BENEFITS Current liability Office holders Liability for long service leave Liability for annual leave Employees other than office holders Liability for long service leave Liability for annual leave Non-current liability Employees other than office holders Liability for long-service leave
2015 $
2014 $
238,575 69,164 307,739
308,239 90,289 398,528
277,816 208,904 486,720 794,459
267,539 212,768 480,307 878,835
4,267 4,267
13,870 13,870
Non-current asset Office holders and other employees Present value of funded obligations 2,375,594 2,463,350 Fair value of plan assets - funded (3,000,982) (2,934,258) Recognised (asset) for defined benefit obligations (625,388) (470,908) The Association makes contributions to the SDA (Victoria Branch) benefit superannuation plan, a sub-plan of the Retail Employees’ Superannuation Trust, that provide defined benefit amounts for office holders and other employees upon retirement. The Association has determined that, in accordance with the terms and conditions of the defined benefit plans, and in accordance with statutory requirements (such as minimum funding requirements) of the plan of the respective jurisdictions, the present value of refunds or reductions in future contributions is not lower than the balance of the fair value of the plan assets less the total present value of obligations. As such, no decrease in the defined benefit asset is necessary at 30 June 2015 (30 June 2014: no decrease in the defined benefit asset). The following tables analyse plan assets, present value of defined benefit obligations, expense recognised in profit or loss, actuarial assumptions and other information for the plan. Movements in the net asset for defined benefit obligations recognised in the statement of financial position: Net liability/(asset) for defined benefit obligations at 1 July (470,908) 86,899 Contributions paid into the plan (134,121) (187,876) Amount recognised in other comprehensive income - actuarial (gains) losses (195,913) (507,317) Expenses recognised in statement of comprehensive income with personnel expenses 175,554 137,386 (625,388) (470,908) Net liability/(asset) for defined benefit obligations at 30 June Movement in the present value of the defined benefit obligations Defined benefit obligations at 1 July Current service cost Interest cost Actuarial (gains)/losses recognised in other comprehensive income (see below) Benefits paid by the plan Taxes, premium & expenses paid Defined benefit obligations at 30 June All benefits are vested at the end of the reporting period. Movement in the present value of plan assets Fair value of plan assets at 1 July Expected return on plan assets at discount rate Actuarial gains/(losses) recognised in other comprehensive income (see below) Contributions paid Benefits paid Taxes and expenses Fair value of plan assets at 30 June Expense recognised in profit or loss Current service costs Net interest costs
2,463,350 188,801 76,227 (38,346) (274,000) (40,438) 2,375,594
2,297,379 137,686 94,784 24,373 (41,825) (49,047) 2,463,350
2,934,258 89,474 157,567 134,121 (274,000) (40,438) 3,000,982
2,210,480 95,084 531,690 187,876 (41,825) (49,047) 2,934,258
188,801 (13,247) 175,554
137,686 (300) 137,386
Re-measurements of net defined benefit liability/asset Loss/(Gain) on Defined Benefit Obligation (38,346) 24,373 (157,567) (531,690) Loss/(Gain) on Assets Recognised in Other comprehensive (income)/expense (195,913) (507,317) Actuarial gains (and losses) recognised in other comprehensive income Cumulative amount at 1 July (65,325) (572,642) 195,913 507,317 Recognised during the period Cumulative amount at 30 June 130,588 (65,325) The major categories of plan assets as a percentage of total fund assets are as follows: 2015 2014 Australian Equity 19% 20% International Equity 29% 30% Fixed Income 10% 10% Property 11% 11% Cash 6% 6% Other 25% 23% Actuarial assumptions Principal actuarial assumptions at the reporting date (expressed as weighted averages): Discount rate at 30 June 4.25% 3.50% Future salary increases 4.00% 4.00% Sensitivity analysis The calculation of the defined benefit obligation is sensitive to the assumptions set out above. The following table summarises how the impact on the defined benefit obligation at the end of the reporting period would have increased (decreased) as a result of a change in the respective assumptions by one percent. 2015 $ 2014 $ Additional DBO for a 1% decrease in the discount rate 158,032 247,640 Reduction DBO for a 1% increase in the discount rate 36,487 170,610 The above sensitivities are based on the average duration of the benefit obligation determined by the actuary as at 30 June 2015 and are applied to adjust the defined benefit obligation at the end of the reporting period for the assumptions concerned. Whilst the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation to the sensitivity of the assumptions shown. Historical information 2015 $ 2014 $ 2013 $ 2012 $ 2011 $ Present value of the defined benefit obligation 2,375,594 2,463,350 2,297,379 2,258,545 2,046,200 Fair value of plan assets - funded (3,000,982) (2,934,258) (2,210,480) (2,050,099) (2,199,441) Recognised liability/(asset) for (625,388) (470,908) 86,899 208,446 (153,241) defined benefit obligation Funding The plan is fully funded by the Association. The funding requirements are based on the plan fund’s actuarial measurement framework set out in the funding policies of the plan. The funding is based on a separate actuarial valuation for funding purposes for which the assumptions may differ from the assumptions above. Employees are not required to contribute to the plan. The Association expects to contribute $219,480 to its defined benefit superannuation funds during the year ended 30 June 2016.
SDA NEWS SPRING 2015 PAGE 27
SDA FINANCIAL REPORTS 2015 16. FINANCIAL INSTRUMENTS (a) Credit risk Exposure to credit risk The carrying amount of the Association’s financial assets represents the maximum credit exposure. The Association’s maximum exposure to credit risk at the reporting date was: Carrying amount Note 2015 $ 2014 $ Current Cash and cash equivalents 9 1,002,326 1,460,407 Receivables 10 699,547 428,286 Other financial assets 11 27,300,000 25,300,000 29,001,873 27,188,693 Impairment losses None of the Association’s receivables are past due (2014: nil) and based on historic default rates and the minimal credit risk, the Association believes no impairment allowance is necessary. The other financial assets are all bank bills and term deposits issued by the Commonwealth Bank of Australia and the Association believes no impairment allowance is necessary. At 30 June 2015 the Association does not have any collective impairments on its cash and cash equivalents, receivables or other financial assets (2014: nil). All receivables are in the Australia geographic region. (b) Liquidity risk The carrying amount of the Association’s financial liabilities is represented by trade and other payables (note 14). The carrying amounts approximate contractual cashflows and all are due in 3 months or less (2014: 3 months or less). The Association has adequate financial assets to meet these liabilities and assesses liquidity risk as minimal. (c) Currency risk International Fund transactions requiring settlement in foreign currencies represent the carrying amount and maximum exposure to currency risk. The Association has no contractual obligations (trade payables or receivables) or forward exchange contracts in place at reporting date (2014: nil). (d) Interest rate risk Profile At the reporting date the interest rate profile of the Association’s interest-bearing financial instruments was: Note Effective Carrying interest rate amount $ 2015 Financial assets Cash and cash equivalents (fixed and variable rates) 9 0.69% 1,002,326 Other financial assets (fixed rate) 11 2.85% 27,300,000 28,302,326 2014 Financial assets Cash and cash equivalents (fixed and variable rates) 9 1.28% 1,460,407 Other financial assets (fixed rate) 11 3.40% 25,300,000 26,760,407 Fair value sensitivity analysis for fixed rate instruments The Association does not account for any fixed and variable rate financial assets at fair value through profit or loss. Therefore a change in interest rates at the reporting date would not affect profit or loss. Fair value sensitivity analysis for variable rate instruments Variable rate instruments consist of cash management bank accounts, shown in cash and cash equivalents (note 9). A change of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant. The analysis is performed on the same basis for 2014. Profit or loss 100bp increase 100bp decrease 30 June 2015 Cash management accounts 7,752 (7,752) 30 June 2014 Cash management accounts 11,972 (11,972) Fair values The fair value of the Association’s assets and liabilities as at 30 June 2015 approximate their carrying amounts shown in the statement of financial position. 17. OPERATING LEASES Leases as lessor The Association leases out its investment property under operating leases (see note 12). The future minimum lease income under non-cancellable leases are as follows: 2015 $ 2014 $ Less than one year 1,081,860 960,983 Between one and five years 2,552,839 1,908,029 More than five years 293,828 437,479 3,928,527 3,306,491 During the year, the Association recognised $1,284,929 as rental income in the statement of profit or loss and other comprehensive income (2014: $1,093,609). 18. CONTROLLED ENTITIES Parent entity The Association comprises the Shop, Distributive and Allied Employees’ Association National Account and the International Fund. 2015 2014 Controlled Entity % % Ordinary shares WT Travel Pty Ltd 100 100 WT Travel Pty Ltd, an Australian controlled entity, was purchased by the Shop, Distributive and Allied Employees’ Association National Executive on 30 September 1993. It formerly traded as a travel agency, but is currently a dormant company. Given WT Travel is a dormant company and its results and financial position at 30 June 2015 are nil, consolidated accounts are not prepared. 19. PERSONNEL EXPENSES Holders of office: 2015 $ 2014 $ Wages and salaries expense 263,446 238,288 Superannuation (including expenses related to defined benefit plan) 43,627 28,065 Leave and other entitlements 26,606 38,538 Separation and redundancies Other employee expenses 48,980 26,045 Subtotal employee expenses - holders of office 382,659 330,936 Employees other than office holders: Wages and salaries 850,061 928,179 Superannuation (including expenses related to defined benefit plan) 132,165 110,839 Leave and other entitlements 111,283 108,990 Separation and redundancies Other employee expenses 61,106 63,742 Subtotal employee expenses - employees other than office holders 1,154,615 1,211,750 Total employee expenses 1,537,274 1,542,686 20. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES Profit for the period 4,028,911 648,358 Adjustment for: Amortisation of lease incentives 1,973 Depreciation 57,347 42,462 Fair value (increment) / decrement on investment property (1,765,290) (Profit)/Loss on disposal of property, plant and equipment 8,159 (1,385) Actuarial gains/(losses) recognised in equity on defined benefit plan 195,913 507,317 Operating profit before changes in working capital & provisions 2,525,040 1,198,725 Change in accrued income 4,897 33,650 Change in prepayments (16,940) (10,282) Change in sundry debtors (259,218) (103,529) Change in pension asset/(liability) (154,480) (557,807) Change in trade and other payables 44,494 54,076 Change in provisions and employee benefits (93,979) 70,699 Net cash from operating activities 2,049,814 685,532
21. RELATED PARTY DISCLOSURES Branches The Association received from its branches the following capitation fees: Newcastle New South Wales Queensland South Australia Tasmania Victoria Western Australia Total capitation fees The Association received from its branches the following expense reimbursements: 2015 Newcastle New South Wales Queensland South Australia Tasmania Victoria Western Australia
2014 Newcastle New South Wales Queensland South Australia Tasmania Victoria Western Australia
Capitation fees 2015 $ 2014 $ 360,881 (325,034) 1,608,286 1,556,083 996,548 966,173 749,145 646,391 168,334 170,595 1,297,348 1,233,062 687,552 605,605 5,868,094 4,852,875
ACTU IR Campaign Levy $
ALP Election Donation $
100% Pay Week of Action $
Other
Intranet
$
$
TOTAL $
13,763 59,567 34,524 28,611 6,028 51,699 23,745 217,937
-
4,469 19,340 11,209 9,289 1,957 16,785 7,709 70,758
2,653 8,018 3,316 5,313 1,150 2,134 3,320 25,904
7,029 30,273 15,796 14,590 2,958 25,456 11,898 108,000
27,914 117,198 64,845 57,803 12,093 96,074 46,672 422,599
ACTU IR Campaign Levy $
ALP Election Donation $
100% Pay Week of Action $
Other
Intranet
TOTAL
$
$
$
13,128 61,772 35,798 27,560 6,192 49,026 22,113 215,589
15,224 71,632 41,512 31,959 7,180 56,851 25,642 250,000
4,871 22,922 13,284 10,227 2,298 18,192 8,206 80,000
-
2,324 10,058 5,829 4,831 1,018 8,730 4,009 36,799
35,547 166,384 96,423 74,577 16,688 132,799 59,970 582,388
At 30 June 2014, amounts of $2,135+GST and $981+GST were owed by the Victoria and Western Australia branches respectively with regard to intranet expense reimbursements above, disclosed in note 10 as related party debtors. No amounts were owed at 30 June 2015. The amounts paid or payable by the Association to its branches for expenses incurred on its behalf: Target seat coordinator Other expenses employment costs reimbursed reimbursed 2015 $ 2014 $ 2015 $ 2014 $ Newcastle 18,416 1,640 1,305 New South Wales 45,000 67,345 50,355 Queensland 51,597 3,716 South Australia 37,261 Tasmania Victoria 22,716 339 Western Australia 13,278 1,666 151,007 68,985 94,642 Affiliates The Association received trust distribution income of $34,950 (2014: $100,609) from the ACTU as an affiliate. In accordance with the ACTU “Constitution, Rules and Standing Orders” this amount was acquitted by the ACTU as additional affiliation fees, included below. The Association made the following payments to its affiliates: Affiliation fees 2015 $ 2014 $ ACTU affiliation fees 815,308 850,219 Union Network International affiliation fees 721,667 641,719 1,536,975 1,491,938 Donations ACTU (ITUC Congress Fundraising) 500 ACTU (Worksite for Schools program) 12,500 12,500 ALP (2013 Federal Election Campaign) 500,000 ALP (James Merlino State Election Campaign) 10,000 ALP (Shorten Leadership Campaign) 10,000 ALP (WA Branch Senate Election Campaign) 50,000 Tim Hammond (ALP Presidential Campaign) 10,000 Union Network International (UNI APRO Activities Fund donation) 129,708 118,494 162,208 691,494 Campaign levy The Association contributed $435,874 (2014: $431,178) towards the ACTU IR Campaign Fund, and also made total payments of $10,000 (2014: $4,965) to the ACTU for legal, consulting and training. Consulting The Association contributed $9,091 (2014: nil) towards an ALP policy development project. Other related parties Key management personnel The following were key management personnel of the Association during the financial year: Name Position Joseph de Bruyn Officer – National Secretary-Treasurer until October 2014, President from October 2014 Michael Donovan Officer - National Vice-President from October 2014 Joseph Bullock (retired) Officer – National Vice-President until October 2014 Gerard Dwyer Officer – National President until October 2014, Secretary-Treasurer from October 2014 Ian Blandthorn Officer – National Assistant Secretary Bernie Smith National Executive Member from October 2014 Paul Griffin National Executive Member Chris Ketter (retired) National Executive Member until October 2014 Barbara Nebart National Executive Member Peter Malinauskas National Executive Member Chris Gazenbeek National Executive Member from October 2014 Peter O’Keeffe National Executive Member from October 2014 Key management personnel remuneration The National President and Vice-President were paid honorariums for their services while the National SecretaryTreasurer and Assistant Secretary are salaried employees of the Association and all are included as key management personnel. In addition to their salaries and fees, the Association also provides motor vehicles to the National President, Secretary-Treasurer and Assistant Secretary and contributes to a post-employment defined benefit superannuation fund on their behalf. As the National Executive Members are not paid by the Association, there are only 4 remunerated officer holders of the Association. The Association pays or reimburses travel, accommodation and meal allowances for the National Officers and the National Executive Members whilst attending National Council and/or National Executive meetings or performing other Association duties. The National Officers and National Executive Members are allowed to keep any frequent flyer points or rewards earned as a result of such travel, the value of which cannot be determined.
SDA NEWS SPRING 2015 PAGE 28
SDA FINANCIAL REPORTS 2015 Key management personnel compensation to the National Officers comprised:
2015 $ 478,182 61,087 7,271 546,540
Short-term employee benefits Post-employment benefits Other long-term benefits Note 15 discloses liabilities for annual leave and long service leave for office holders. The remuneration by officer comprised: Key Management Personnel Gerard Michael Joseph Remuneration for 2015 Dwyer Donovan Bullock VicePresident Secretary- President ViceTreasurer President $ $ $ $ Short-term employee benefits Salary (including annual leave taken) Honorarium & gifts Annual leave accrued REST Director Fees Non-monetary (accommodation, motor vehicle & parking) Total short-term employee benefits Post-employment benefits Superannuation-Defined Benefit Superannuation (REST SG payments) Total post-employment benefits Other long-term benefits Long-service leave Total other long-term benefits Total
$
SecretaryTreasurer $
Ian Blandthorn Assistant Secretary
Total
$
$
96,761 1,078 -
24,190 5,000 269 -
-
3,500 -
91,020
45,818 4,000 3,525 -
124,073 (1,300) -
290,842 12,500 3,572 91,020
25,871
2,001
-
-
19,237
9,619
23,520
80,248
123,710
31,460
-
3,500
110,257
62,962
146,293
478,182
14,514
-
-
-
-
6,873
18,611
43,627
-
3,629
-
-
8,647
4,396
4,417
17,460
14,514
3,629
-
-
8,647
11,269
23,028
61,087
2,419 2,419 140,643
605 605 35,694
-
3,500
118,904
1,145 1,145 75,376
3,102 3,102 172,423
7,271 7,271 546,540
Michael Donovan
Joseph Bullock VicePresident
Ian Blandthorn Assistant Secretary
Total
$
$
Key Management Personnel Remuneration for 2014
Short-term employee benefits Salary (including annual leave taken) Honorarium & gifts Annual leave accrued REST Director Fees Non-monetary (motor vehicle & parking) Total short-term employee benefits Post-employment benefits Superannuation-Defined Benefit Superannuation (REST SG payments) Total post-employment benefits Other long-term benefits Long-service leave Total other long-term benefits Total
Joseph de Bruyn President
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION
2014 $ 316,843 49,316 6,454 372,613
Gerard Dwyer SecretaryTreasurer $
President $
VicePresident $
-
5,000 -
-
Joseph de Bruyn President
$
$
SecretaryTreasurer $
-
3,500 -
-
138,518 7,156 -
119,627 (2,936) -
258,145 8,500 4,220 -
-
-
-
-
25,148
20,830
45,978
-
5,000
-
3,500
-
170,822
137,521
316,843
-
-
-
-
-
20,778
17,944
38,722
-
-
-
-
-
7,878
2,716
10,594
-
-
-
-
-
28,656
20,660
49,316
-
5,000
-
3,500
-
3,463 3,463 202,941
2,991 2,991 161,172
6,454 6,454 372,613
Apart from the details disclosed in this note, no officer has entered into any material transactions with the Association since the end of the previous financial year and there were no material contracts involving officers’ interests existing at year-end. Superannuation Contributions of $134,121 (2014: $187,876) were made to a post-employment defined benefit fund managed by the Retail Employees’ Superannuation Trust (“REST”) on behalf of salaried office holders and employees other than office holders. The Association receives director fees of $125,114 (2014:134,554) from REST for the services performed by three representatives of the Association, Mr Joe de Bruyn (only until October 2014), Mr Ian Blandthorn and Ms Sue-Anne Burnley. These director fees are included in Other Income in note 7. Mr Joe de Bruyn on being elected National President in October 2014 no longer receives a salary from the Association, therefore is entitled to personally receive director fees for services as a REST director from November 2014, these are disclosed in short-term employee benefits in key management personnel in Note 21. The directors personally receive Superannuation Guarantee (SG) payments from REST for the above director fees, these are disclosed in postemployment benefits for key management personnel in Note 21. 22. SUBSEQUENT EVENTS There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the officer holders of the Association, to affect significantly the operations of the Association, the results of those operations, or the state of affairs of the Association in future financial years. 23. INFORMATION TO BE PROVIDED TO MEMBERS OR GENERAL MANAGER In accordance with the requirements of subsection 272(5) of the RO Act, the attention of members is drawn to the provisions of subsections (1), (2) and (3) of section 272, which states 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). 24. ECONOMIC DEPENDENCY The Association is not reliant on the agreed financial support of another reporting unit to continue on a going concern basis (as noted in the Committee of Management Statement). The Association has not agreed to provide financial support to ensure another reporting unit, branch or affiliate has the ability to continue as a going concern.
SDA NEWS SPRING 2015 PAGE 29
We have audited the accompanying financial report of the Shop, Distributive and Allied Employees’ Association (the Association), which comprises the statement of financial position as at 30 June 2015, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, notes 1 to 24 comprising a summary of significant accounting policies and other explanatory information, the Operating Report, the Committee of Management Statement and Certificate by the National Secretary-Treasurer. National Executives’ responsibility for the financial report The National Executives of the Association are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Fair Work (Registered Organisations) Act 2009 and for such internal control as the National Executive determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In preparing the financial report, the National Executives are responsible for assessing the Association’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 National Executives either intend to liquidate the Association or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibility Our responsibility is to: • Express an opinion on the financial report based on our audit; and • Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Association’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 Association to cease to continue as a going concern. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Association’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Association’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the National Executive, as well as evaluating the overall presentation of the financial report. We performed the procedures to assess whether in all material respects the financial report presents fairly, in accordance with the Fair Work (Registered Organisations) Act 2009 and Australian Accounting Standards, a true and fair view which is consistent with our understanding of the Association’s financial position and of its performance and cash flows. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Accounting Professional and Ethical Standards Board. Auditor’s opinion In our opinion the financial report of the Shop, Distributive and Allied Employees’ Association is in accordance with the Fair Work (Registered Organisations) Act 2009, including: • giving a true and fair view of the company’s financial position as at 30 June 2015 and of its performance for the year ended on that date; • complying with applicable Australian Accounting Standards; • and other mandatory professional reporting requirements of the Fair Work (Registered Organisations) Act 2009. Going concern I declare that, as part of the audit of the financial report for the financial year ended 30 June 2015, the National Executives’ use of the going concern basis of accounting in the preparation of the Shop, Distributive and Allied Employees’ Association’s financial statements is appropriate. KPMG ANTONI CINANNI, PARTNER MEMBER OF INSTITUTE OF CHARTERED ACCOUNTANTS #46581, DATED 21 MAY 2002 REGISTERED COMPANY AUDITOR - #394346, DATED 1 FEBRUARY 2011 CERTIFICATE OF PUBLIC PRACTICE WITH ICAA, DATED 25 AUGUST 2010 MELBOURNE, 21ST AUGUST, 2015 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG NETWORK OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL COOPERATIVE (“KPMG INTERNATIONAL”), A SWISS ENTITY. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION. Lead auditor’s independence declaration to the members of the Shop, Distributive and Allied Employees’ Association I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year ended 30 June 2015 there have been: • no contraventions of any applicable code of professional conduct in relation to the audit. KPMG ANTONI CINANNI, PARTNER MELBOURNE, 21ST AUGUST, 2015
SDA FINANCIAL REPORTS 2015
SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, NSW BRANCH FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2015 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, NSW BRANCH
Report on the Financial Report We have audited the financial report of Shop, Distributive and Allied Employees’ Association NSW Branch (“the Association”) for the financial year ended 30 June 2015, consisting of the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows for the year ended on that date, accompanying notes 1 to 15, the Operating Report and Committee of Management Statement. The Committee of Management is responsible for the financial report. We have conducted an independent audit of the financial report in order to express an opinion on it to the members of the Association. The financial Report has been prepared for distribution to the members of the Association for the purpose of fulfilling the requirements of subsections 265(1) and 265(5) of the Registered Organisations Act 2009 in relation to the financial report and independent auditor’s report. Committee of Management’s Responsibility for the Financial Report The Committee of Management of the Shop, Distributive and Allied Employees’ Association NSW Branch is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and compliance with Part 3 of Chapter 8 of the Registered Organisations Act 2009. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditors’ Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Council, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we followed and complied with the applicable independence requirements of Australian professional ethical pronouncements and the Registered Organisations Act 2009. We declare to the best of our knowledge and belief that the auditor’s independence declaration, set out on page 6 of the financial report, has not changed as at the date of providing our audit opinion. Audit Opinion In our opinion the general purpose financial report is presented fairly in accordance with: 1. applicable Australian Accounting Standards (including the Australian Accounting Interpretations) and 2. in relation to recovery of wages activity: a. that the scope of the audit encompassed recovery of wages activity; 3. any other requirements imposed by these reporting guidelines or Part 3 of Chapter 8 of the Registered Organisations Act 2009. 4. The use of the Going Concern basis by the Committee of Management is appropriate. Joseph Paul Grech Grech Smith Bridle Partner Chartered Accountants Registered Company Auditor, Number 4327 Holder of Current Practicing Certificate and Member of Chartered Accounts Australia And New Zealand, Number 24310 Dated at Sydney this 20th day of August 2015
DECLARATION
I, Joseph Paul Grech, being the auditor of the Shop, Distributive and Allied Employees’ Association NSW Branch declare that: a) I am an approved auditor, and b) I am a person who is a member of Chartered Accountants Australia and New Zealand; and c) I hold a current Public Practice Certificate. Joseph Paul Grech Grech Smith Bridle Partner Chartered Accountants Registered Company Auditor, Number 4327 Holder of Current Practicing Certificate and Member of Chartered Accounts Australia And New Zealand, Number 24310 Dated at Sydney this 20th day of August 2015
AUDITOR’S INDEPENDENCE DECLARATION FOR THE YEAR ENDED 30 JUNE 2015 TO THE COMMITTEE OF MANAGEMENT OF SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, NSW BRANCH
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2015 there has been: i) no contraventions of the auditor independence requirements in relation to the audit; and ii) no contravention of any applicable code of professional conduct in relation to the audit. Joseph Paul Grech Grech Smith Bridle Registered Company Auditor, Number 4327 Chartered Accountants Holder of Current Practicing Certificate and Member of Chartered Accounts Australia And New Zealand, Number 24310 Dated at Sydney this 20th day of August 2015
OPERATING REPORT FOR THE YEAR ENDED 30 JUNE 2015
Principal activities The principal activities of the reporting unit are preserving and enhancing the wages and working conditions of its members, and the promotion of the interests and rights of workers. In addition to industrial representation, members are also provided with a range of services and benefits. New enterprise agreements were negotiated with a wide range of employers during the year. These agreements all resulted in improved wages and working conditions for the employees covered by them. Significant changes in financial affairs There were no significant changes in the nature of the activities and financial affairs in the Association during the financial year. Rights of members to resign Persons eligible to do so under the rules of the Association were actively encouraged to join the Association. Pursuant to s174 of the Fair Work (Registered Organisations) Act 2009 (RO Act), members could resign from the Association by written notice to the appropriate Branch of the Association. One officer & employee, who is a superannuation fund trustee or director of a company that is a superannuation fund trustee One representative of the Association holds a position as the Alternate Director of the Retail Employees’ Superannuation Trust (“REST”). Gerard Dwyer Acts as the alternate Director for Joe de Bruyn. Directors Alternates Mr Joe de Bruyn Mr Gerard Dwyer Number of Members Membership as at 30 June 2015 was 58,670 (2013: 57,310). Number of employees At 30 June 2015, there were no persons employed by the NSW Branch of the Association.
Affiliations & Directorships Detailed below are the affiliations of the NSW Branch of the Association: – Australian Labor Party, NSW Branch – Australian Labor Party, ACT Branch – Unions NSW – South Coast Labor Council – Unions ACT The NSW Branch Secretary-Treasurer of the Association is an Executive Member of Unions NSW. A representative of the NSW Branch of the Association is a member of the Service Skills NSW Wholesale, Retail and Personal Services Committee. Names of Committee of Management members and period positions held during the financial year The names of the members of the Committee of Management of the NSW Branch of the Association at any time during, or since the end of the financial year are: Name Experience Position G. Donnelly Member from 18 June 1991 to Branch President 12 December 2014 Resigned 12 December 2014 G. Cutcher Member from 22 February 1995 to Branch Vice President 12 December 2014 Resigned 12 December 2014 G. Dwyer Member from 4 June 1996 Branch Councillor (Branch Membership) to 12 December 2014 Resigned 12 December 2014 B. Smith Member since 10 May 2005 Branch Secretary - Treasurer C. Cassell Member since 4 February 2003 Branch President M. Hagley Member since 9 February 1999 Branch Trustee P. Avellino Member since 28 September 2010 Branch Councillor (Branch membership) M. Dumycz Member since 28 September 2010 Branch Vice President (Branch membership) B. Logue Member from 16 December 2010 to Branch Councillor (Branch membership) 23 September 2014 Resigned 23 September 2014 C. Mills Member from 4 February 2003 to Branch Councillor (Branch membership) 12 December 2014 Resigned 12 December 2014 S. Barros Member since 16 February 2010 Branch Councillor (Branch membership) N. Rizk Member since 28 September 2010 Branch Councillor (Branch membership) H. Thomas Member since 4 February 2003 Branch Trustee D. Robins Member since 28 September 2010 Branch Councillor (Other Industries and Vocational Grouping membership) S. Sammak Member since 18 February 2014 Branch Councillor (Drug and Allied membership) J. Slender Member since 23 September 2014 Branch Councillor (Branch membership) A. Apps Member since 23 September 2014 Branch Councillor (Branch membership) R. Tonkli Member since 23 September 2014 Branch Assistant Secretary - Treasurer M. Hackett Member since 12 December 2014 Branch Councillor (Branch membership) A. Manos Member since 12 December 2014 Branch Councillor (Branch membership) C. Williams Member since 12 December 2014 Branch Councillor (Branch membership) M. Doherty Member since 12 December 2014 Branch Councillor (Retail membership) The Association maintained its rules and reported according to statutory requirements. Bernie Smith Robert Tonkli Committee of Management Committee of Management Dated at Sydney this 18th day of August 2015
COMMITTEE OF MANAGEMENT STATEMENT FOR THE YEAR ENDED 30 JUNE 2015
On 18 August 2015 the Committee of Management of Shop, Distributive and Allied Employees’ Association NSW Branch passed the following resolution in relation to the general purpose financial report (GPFR) for the year ended 30 June 2015: The Committee of Management declares that in its opinion: a) The financial statements and notes comply with the Australian Accounting Standards; b) The financial statements and notes comply with the reporting guidelines of the General Manager; c) The financial statements and notes give a true and fair view of the financial performance, financial position and cash flows of the reporting unit for the financial year to which they relate; d) There are reasonable grounds to believe the reporting unit will be able to pay its debts as and when they become due and payable; and e) During the financial year to which the GPFR relates and since the end of that year: i) Meetings of the Committee of Management were held in accordance with the rules of the organisation including the rules of a branch concerned; and ii) The financial affairs of the reporting unit have been managed in accordance with the rules of the organisation including the rules of a branch concerned; and iii) The financial records of the reporting unit have been kept and maintained in accordance with the RO Act; and iv) Where the organisation consists of two or more reporting units, the financial records of the reporting unit have been kept, as far as practicable, in a consistent manner with each of the other reporting units of the organisation; and v) Where information has been sought in any request by a member of the reporting unit or General Manager duly made under section 272 of the RO Act has been provided to the member or General Manager; and vi) Where any orders for inspection of financial records have been made by the Fair Work Commission under section 273 of the RO Act, there has been compliance. f) No revenue has been derived from undertaking recovery of wages activity during the reporting period. This declaration is made in accordance with a resolution of the Committee of Management. Name and title of designated officer: Bernie Smith, Secretary/Treasurer Dated: 18 August 2015
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2015
Note Revenue Membership subscription Capitation fees 3A Levies 3B Interest 3C Other revenue 3D Total revenue Other income Grants and/or donations 3E Total other income Total income Expenses Employee expenses 4A Capitation fees 4B Affiliation fees 4C Administration expenses 4D Grants or donations 4E Legal costs 4F Other expenses 4G Total expenses Profit (loss) for the year Other comprehensive income Items that will not be subsequently reclassified to profit or loss Gain on revaluation of land & buildings Total comprehensive income for the year The above statement should be read in conjunction with the notes.
SDA NEWS SPRING 2015 PAGE 30
2015 $
2014 $
335,092 7 3,886,674 4,221,773
310,551 6 3,893,894 4,204,451
4,221,773
4,204,451
2,028,175 2,372,801 4,400,976 (179,203)
2,094,856 2,192,069 350 4,287,275 (82,824)
-
-
SDA FINANCIAL REPORTS 2015 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015 ASSETS Current Assets Cash and cash equivalents Trade and other receivables Other current assets Total current assets Non-Current Assets Total non-financial assets Total assets LIABILITIES Current Liabilities Trade payables Other payables Employee provisions Total current liabilities Non-Current Liabilities Employee provisions Total non-current liabilities Total liabilities Net assets EQUITY General funds Retained earnings (accumulated deficit) Total equity The above statement should be read in conjunction with the notes.
Note
2015 $
2014 $
5A 5B 5C
6,725 155,345 1,061,772 1,223,842
42,219 53,823 1,297,624 1,393,666
1,223,842
1,393,666
6A 6B 7A
13,719 13,719
4,340 4,340
7A
13,719 1,210,123
4,340 1,389,326
1,210,123 1,210,123
1,389,326 1,389,326
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2015
Balance at 1 July 2013 Adjustment for errors Adjustment for changes in accounting policies Profit for the year Other comprehensive income for the year Transfer to/from other fund Transfer from retained earnings Closing balance at 30 June 2014 Adjustment for errors Adjustment for changes in accounting policies Profit for the year Other comprehensive income for the year Transfer to/from other fund Transfer from retained earnings Closing balance at 30 June 2015 The above statement should be read in conjunction with the notes.
General Funds $ -
Retained Earnings $ 1,472,150
Total Equity $ 1,472,150
-
(82,824)
(82,824)
-
1,389,326 (179,203) 1,210,123
1,389,326 (179,203) 1,210,123
CASH FLOWS STATEMENT FOR THE YEAR ENDED 30 JUNE 2015
OPERATING ACTIVITIES Cash received Receipts from other reporting units/controlled entity(s) Interest Other Cash used Employees Suppliers Payment to other reporting units/controlled entity(s) Net cash from (used by) operating activities INVESTING ACTIVITIES Cash received Proceeds from sale of plant and equipment Proceeds from sale of land and buildings Other Cash used Purchase of plant and equipment Purchase of land and buildings Other Net cash from (used by) investing activities FINANCING ACTIVITIES Cash received Contributed equity Other Cash used Repayment of borrowings Other Net cash from (used by) financing activities Net increase/(decrease) in cash held Cash & cash equivalents at beginning of the financial year Cash & cash equivalents at end of the financial year The above statement should be read in conjunction with the notes.
Note
2015 $
2014 $
8B
3,886,674 7 469,421
3,893,894 6 409,916
(2,723,743) (1,667,853) (35,494)
(2,102,095) (2,189,097) 12,624
-
-
-
-
-
-
(35,494) 42,219 6,725
12,624 29,595 42,219
8B 8A
5
RECOVERY OF WAGES ACTIVITY FOR THE YEAR ENDED 30 JUNE 2015
Cash assets in respect of recovered money at beginning of year Receipts Amounts recovered from employers in respect of wages etc. Interest received on recovered money Total receipts Payments Deductions of amounts due in respect of membership for: 12 months or less Greater than 12 months Deductions of donations or other contributions to accounts or funds of: The reporting unit: name of account name of fund Name of other reporting unit of the organisation: name of account name of fund Name of other entity: name of account name of fund Deductions of fees or reimbursement of expenses Payments to workers in respect of recovered money Total payments Cash assets in respect of recovered money at end of year Number of workers to which the monies recovered relates Aggregate payables to workers attributable to recovered monies but not yet distributed Payable balance Number of workers the payable relates to Fund or account operated for recovery of wages
Note
2015 $
2014 $
-
-
-
-
-
-
-
-
-
-
-
-
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1.1 Basis of preparation of the financial statements The financial statements are general purpose financial statements and have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period and the Fair Work (Registered Organisation) Act 2009. For the purpose of preparing the general purpose financial statements, the Shop, Distributive and Allied Employees’ Association NSW Branch is a not-for-profit entity. The financial statements have been prepared on an accrual basis and in accordance with the historical cost, except for certain assets and liabilities at measured at fair value, as explained in the accounting policies below. Historical cost is generally based on the fair values of the consideration given in exchange for assets. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars. 1.2 Comparative amounts When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. 1.3 Significant accounting judgements and estimates The Committee of Management evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Association. It has not been necessary for the Committee of Management to make any key estimates or judgements in the report. 1.4 New Australian Accounting Standards Adoption of New Australian Accounting Standard Requirements No accounting standard has been adopted earlier than the application date stated in the standard. The accounting policies adopted are consistent with those of the previous financial year. 1.5 Basis of consolidation These financial statements are for the reporting unit, the Association. They are not consolidated with any other entity. 1.5A Investment in associates An associate is an entity over which the Association has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The Association has not made an investment in an associate. 1.6 Business combinations There have been no business combinations during the year. 1.7 Acquisition of assets and or liabilities that do not constitute a business combination There have been no acquisition of assets or liabilities by the Association during the year that do not constitute a business combination. 1.8 Revenue Revenue is measured at the fair value of the consideration received or receivable. Revenue from subscriptions is accounted for on an accrual basis and is recorded as revenue in the year to which it relates. Revenue from the sale of goods is recognised when, the risks and rewards of ownership have been transferred to the buyer, the entity retains no managerial involvement or effective control over the goods, the revenue and transaction costs incurred can be reliably measured, and it is probable that the economic benefits associated with the transaction will flow to the entity. Donation income is recognised when it is received. Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable. Interest revenue is recognised on an accrual basis using the effective interest method. 1.9 Government grants The Association has not received any Government grants during the year. 1.10 Capitation fees and levies Capitation fees and levies are to be recognised on an accrual basis and record as a revenue and/or expenses in the year to which it relates. 1.11 Cash Cash is recognised at its nominal amount. Cash and cash equivalents includes cash on hand, deposits held at call with bank, other short-term highly liquid investments with original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the consolidated statement of financial position. 1.12 Financial instruments Financial assets and financial liabilities are recognised when Shop, Distributive and Allied Employees’ Association NSW Branch becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss. 1.13 Financial assets Financial assets are classified into the following specified categories: financial assets at fair value through profit or loss, held-to-maturity investments, available-for-sale financial assets and loans and receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. All regular way purchases or sales of financial assets are recognised and derecognised upon trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace. Fair value through profit or loss The Association does not hold any financial assets for trading nor does it designate financial assets at fair value through profit or loss. Loan and receivables Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. Held-to-maturity investments Financial assets with fixed or determinable payments and fixed maturity dates that the reporting unit has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are measured at amortised cost using the effective interest method less any impairment. Available-for-sale Listed shares and listed redeemable notes held by the reporting unit that are traded in an active market are classified as available-for-sale and are stated at fair value. The reporting unit also has investments in unlisted shares that are not traded in an active market but that are also classified as available-for-sale financial assets and stated at fair value. Gains and losses arising from changes in fair value are recognised in other comprehensive income and accumulated in the investments revaluation reserve, with the exception of impairment losses, interest calculated using the effective interest method, and foreign exchange gains and losses on monetary assets, which are recognised in profit or loss. Where the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously accumulated in the investments revaluation reserve is reclassified to profit or loss. Dividends on available-for-sale equity instruments are recognised in profit or loss when the reporting unit right to receive the dividends is established. The fair value of available-for-sale monetary assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of the reporting period. The foreign exchange gains and losses that are recognised in profit or loss are determined based on the amortised cost of the monetary asset. Other foreign exchange gains and losses are recognised in other comprehensive income.
SDA NEWS SPRING 2015 PAGE 31
SDA FINANCIAL REPORTS 2015 Effective interest method The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, when appropriate, a shorter period, to the net carrying amount on initial recognition. Income is recognised on an effective interest rate basis except for debt instruments other than those financial assets that are recognised at fair value through profit or loss. 1.14 Financial liabilities Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’. Fair value through profit or loss The Association does not hold any financial liabilities for trading nor does it designate financial liabilities as fair value through profit or loss. Other financial liabilities Other financial liabilities, including borrowings and trade and other payables, are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. Derecognition of financial liabilities The reporting unit derecognises financial liabilities when, and only when, the reporting units obligations are discharged, cancelled or they expire. The difference between the carrying amounts of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss. 1.15 Contingent liabilities and contingent assets Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the relevant notes. They may arise from uncertainty as to the existence of a liability or asset or represent an existing liability or asset in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain, and contingent liabilities are disclosed when settlement is greater than remote. 1.16 Taxation Shop, Distributive and Allied Employees’ Association NSW Branch is exempt from income tax under section 50.1 of the Income Tax Assessment Act 1997 however still has obligation for Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST). Revenues, expenses and assets are recognised net of GST except: • where the amount of GST incurred is not recoverable from the Australian Taxation Office; and • for receivables and payables. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables. Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the Australian Taxation Office is classified within operating cash flows. 1.17 Going concern Shop, Distributive and Allied Employees’ Association NSW Branch has not received financial support from another reporting unit. Shop, Distributive and Allied Employees’ Association NSW Branch does not provide financial support to any other reporting unit. Shop, Distributive and Allied Employees’ Association NSW Branch’s ability to continue as a going concern is not reliant on the support of another reporting unit. NOTE 2: EVENTS AFTER THE REPORTING PERIOD There were no events that occurred after 30 June 2015, and/or prior to the signing of the financial statements, that would affect the ongoing structure and financial activities of Shop, Distributive and Allied Employees’ Association NSW Branch. NOTE 3: INCOME 2015 $ 2014 $ NOTE 3A: CAPITATION FEES Capitation fees Total capitation fees NOTE 3B: LEVIES Levies Total levies NOTE 3C: INTEREST Deposits 7 6 Loans Total Interest 7 6 NOTE 3D: OTHER REVENUE 3,886,674 3,893,894 Surplus transferred from NSW Deductions Account Office 3,886,674 3,893,894 Total other revenue NOTE 3E: GRANTS OR DONATIONS Grants Donations Total grants or donations NOTE 4: EXPENSES NOTE 4A: EMPLOYEE EXPENSES Holders of office: Wages and salaries Superannuation Leave and other entitlements Separation and redundancies Other employee expenses Subtotal employee expenses holders of office Employees other than office holders: Wages and salaries Superannuation Leave and other entitlements Separation and redundancies Other employee expenses Subtotal employee expenses employees other than office holders Total employee expenses NOTE 4B: CAPITATION FEES Capitation fees Total capitation fees NOTE 4C: AFFILIATION FEES National Office SDA 1,375,813 1,353,462 National Office SDA - International Fund 206,372 304,555 ALP NSW 242,686 236,127 ALP ACT 7,344 10,087 Labor Council NSW 191,576 186,362 Labor Council ACT 1,555 1,511 Labor Council South Coast 2,829 2,752 2,028,175 2,094,856 Total affiliation fees/subscriptions NOTE 4D: ADMINISTRATION EXPENSES Consideration paid to employers for payroll deductions Compulsory Levies ACTU IR Campaign Levy 59,567 61,772 Fees/allowances – meeting and conferences 62,625 50,925 Conference and meeting expenses 834,733 726,022 Membership propagation expenses 794,380 752,044 Journal costs 369,420 356,205 Textbooks scholarships & TEAP Payments 104,562 87,154 147,514 157,947 Other 2,372,801 2,192,069 Subtotal administration expenses Operating lease rental Minimum lease payments 2,372,801 2,192,069 Total administration expenses
Note: Compulsory Levy A compulsory levy of $1 per member was made by the Shop, Distributive and Allied Employees’ Association NSW Branch for Branch contribution to the ACTU IR Campaign Levy during the year. The purpose of the levy was to promote the aims and activities undertaken by trade unions. NOTE 4E: GRANTS OR DONATIONS 2015 $ 2014 $ Grants Total paid that were $1,000 or less Total paid that exceeded $1,000 Donations Total paid that were $1,000 or less 350 Total paid that exceeded $1,000 Total grants or donations 350 NOTE 4F: LEGAL COSTS Litigation Other legal matters Total legal costs NOTE 4G: OTHER EXPENSES Penalties – via RO Act or RO Regulations Total other expenses NOTE 5: CURRENT ASSETS NOTE 5A: CASH AND CASH EQUIVALENTS Cash at bank 6,725 42,219 Cash on hand Short term deposits Other 6,725 42,219 Total cash and cash equivalents NOTE 5B: TRADE AND OTHER RECEIVABLES Receivables from other reporting unit(s) Shop, Distributive and Allied Employees’ Association 33,945 NSW Deductions Account Office 33,945 Total receivables from other reporting unit(s) Less provision for doubtful debts Total provision for doubtful debts 33,945 Receivable from other reporting unit(s) net Other Receivables GST receivable from the Australian Taxation Office 4.041 Other trade receivables 117,359 53,823 121,400 53,823 Total other receivables 155,345 53,823 Total trade and other receivables (net) NOTE 5C: OTHER CURRENT ASSETS Prepayments 1,061,772 1,297,624 1,061,772 1,297,624 Total other current assets NOTE 6: CURRENT LIABILITIES NOTE 6A: TRADE PAYABLES Trade creditors and accruals 13,719 4,340 Operating lease rentals 13,719 4,340 Subtotal trade creditors Payables to other reporting unit(s) Subtotal payables to other reporting unit(s) 13,719 4,340 Total trade payables Settlement is usually made within 30 days. NOTE 6B: OTHER PAYABLES Consideration to employers for payroll deductions Legal costs Total other payables Total other payables are expected to be settled in: No more than 12 months More than 12 months Total other payables NOTE 7: PROVISIONS NOTE 7A: EMPLOYEE PROVISIONS Office holders: Annual leave Long service leave Separation and redundancies Other Subtotal employee provisions - office holders Employees other than office holders: Annual leave Long service leave Separation and redundancies Other Subtotal employee provisions - employees other than office holders Annual leave Long service leave Total employee provisions Current Non Current Total employee provisions NOTE 8: CASH FLOW NOTE 8A: CASH FLOW RECONCILIATION Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement: Cash and cash equivalents as per: Cash flow statement 6,725 42,219 6,725 42,219 Balance sheet Difference Reconciliation of profit/(deficit) to net cash from operating activities: Profit/(deficit) for the year (179,203) (82,824) Adjustments for non-cash items (Increase)/decrease in net receivables (101,522) 5,123 (Increase)/decrease in prepayments 235,852 94,241 Increase/(decrease) in supplier payables 9,379 (3,916) Increase/(decrease) in other payables Increase/(decrease) in employee provisions Increase/(decrease) in other provisions (35,494) 12,624 Net cash from (used by) operating activities NOTE 8B: CASH FLOW INFORMATION Cash inflows Shop, Distributive & Allied Employees’ Association NSW Deductions Account Office 3,886,674 3,893,894 4,356,102 4,303,815 Total cash inflows Cash outflows Shop, Distributive & Allied Employees’ Association National Office 1,667,853 2,189,097 Total cash outflows 4,391,597 4,291,191 NOTE 9: CONTINGENT LIABILITIES, ASSETS AND COMMITMENTS The Association has not entered into any lease commitments, or capital commitments Other contingent assets or liabilities (i.e. legal claims) The Association is not aware of any contingent asset or liability.
SDA NEWS SPRING 2015 PAGE 32
SDA FINANCIAL REPORTS 2015 NOTE 10: RELATED PARTY DISCLOSURES NOTE 10A: RELATED PARTY TRANSACTIONS FOR THE REPORTING PERIOD The following table provides the total amount of transactions that have been entered into with related parties for the relevant year. 2015 $ 2014 $ Revenue received from Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office includes the following: Surplus transferred from Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office 3,886,674 3,893,894 Expenses paid to National Office SDA includes the following: Affiliation fees – National Office SDA 1,375,813 1,353,462 Expenses paid to National Office SDA – International Fund includes the following: Affiliation fees – National Office SDA – International Fund 206,372 304,555 Expenses paid to ALP NSW includes the following: Affiliation fees – ALP NSW 242,686 236,127 Expenses paid to ALP ACT includes the following: Affiliation fees – ALP ACT 7,344 10,087 Expenses paid to Labor Council NSW includes the following: Affiliation fees – Labor Council NSW 191,576 186,362 Expenses paid to Labor Council ACT includes the following: Affiliation fees – Labor Council ACT 1,555 1,511 Expenses paid to Labor Council South Coast includes the following: Affiliation fees – Labor Council South Coast 2,829 2,752 Campaign Levy paid to National Office SDA includes the following: ACTU IR Campaign Levy – National Office SDA 59,567 61,772 NOTE 11: REMUNERATION OF AUDITORS Grech Smith Bridle Financial statement audit services Other services Total remuneration of auditors The auditor did not perform any other additional services. The auditor’s remuneration was paid by Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office. NOTE 12: FINANCIAL INSTRUMENTS The Committee of Management has overall responsibility for the establishment and oversight of the risk management framework. Risk management policies are established to identify and analyse the risks faced by the Association, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Association’s activities. The Association, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. The Association’s financial instruments consist mainly of deposits with banks and accounts payable. The Association does not have any derivative instruments at 30 June 2015. NOTE 12A: CATEGORIES OF FINANCIAL INSTRUMENTS 2015 $ 2014 $ Financial assets Fair value through profit or loss: Total Held-to-maturity investments: Total Loans and receivables: Trade and other receivables 155,345 53,823 155,345 53,823 Total Available for sale: Cash and cash equivalents 6,725 42,219 6,725 42,219 Total 6,725 42,219 Carrying amount of financial assets Financial Liabilities Other financial liabilities: 13,719 4,340 Trade and other payable Total 13,719 4,340 13,719 4,340 Carrying amount of financial liabilities NOTE 12B: NET INCOME AND EXPENSE FROM FINANCIAL ASSETS Available for sale Interest revenue 7 6 Dividend revenue Exchange gains / (loss) Gains / (loss) recognised in equity Amounts reversed from equity: Impairment Fair value changes reversed on disposal Gains / (loss) on disposal Net gain/(loss) available for sale 7 6 Loans and receivables Interest revenue Exchange gains / (loss) Impairment Gains / (loss) on disposal Net gain / (loss) from loan and receivables Net gain/(loss) from financial assets 7 6 All financial assets are deemed to be at fair value. The net income/expense from financial assets not at fair value from profit and loss is $0 (2014: $0). NOTE 12C: NET INCOME AND EXPENSE FROM FINANCIAL LIABILITIES The net income/expense from financial liabilities not at fair value from profit and loss is $0 (2014:$0.) NOTE 12D: CREDIT RISK The Association is not exposed to any material credit risk. The following table illustrates the entity’s gross exposure to credit risk. Financial assets Cash and cash equivalents 6,725 42,219 Receivables 155,345 53,823 162,070 96,042 Total The cash and cash equivalents are held with banking institutions located in Australia. NOTE 12E: LIQUIDITY RISK The Association manages liquidity risk by monitoring forecast cash flows and ensuring that adequate cash facilities are maintained. Contractual maturities for financial liabilities 2014 On Demand < 1 year 1-2 years 2-5 years > 5 years Total $ $ $ $ $ $ Trade Payable 13,719 13,719 13,719 13,719 Total Maturities for financial liabilities 2014 On Demand < 1 year 1-2 years 2-5 years > 5 years Total $ $ $ $ $ $ Trade Payable 4,340 4,340 4,340 4,340 Total NOTE 12F: MARKET RISK Interest Rate Risk The Association manages interest rate risk by monitoring the level of interest rates. The interest earnings on cash and cash equivalents was low, the effect on interest rate risk is negligible. Price Risk The Association is not exposed to any price risk. Foreign Currency Risk The Association is not exposed to fluctuations in foreign currencies.
NOTE 13: FAIR VALUE MEASUREMENT NOTE 13A: FINANCIAL ASSETS AND LIABILITIES Management of the reporting unit assessed that cash, trade receivables, trade payables, and other current liabilities approximate their carrying amounts largely due to the short term maturities of these instruments. The fair value of financial assets and liabilities is included at the amount which the instrument could be exchanged in a current transaction between willing parties. The own performance risk as at 30 June 2015 was assessed to be insignificant. NOTE 14: ACQUISITIONS The reporting unit has not acquired an asset or a liability during the financial year as a result of: a) an amalgamation under Part 2 of Chapter 3, of the RO Act in which the organisation (of which the reporting unit form part) was the amalgamated organisation; or b) a restructure of the branches of the organisation; or c) a determination by the General Manager under subsection 245(1) of the RO Act of an alternative reporting structure for the organisation; or d) a revocation by the General Manager under subsection 249(1) of the RO Act of a certificate issued to an organisation under subsection 245(1). NOTE 15: SECTION 272 FAIR WORK (REGISTERED ORGANISATIONS) ACT 2009 In accordance with the requirements of the Fair Work (Registered Organisations) Act 2009, the attention of members is drawn to the provisions of subsections (1) to (3) of section 272, which reads as follows: Information to be provided to members or General Manager: 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).
SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION NSW DEDUCTIONS ACCOUNT OFFICE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2015 RESOLUTION REGARDING TRANSFER OF FUNDS SURPLUS TO THE REQUIREMENT OF THE DEDUCTIONS ACCOUNT OFFICE FOR THE YEAR ENDED 30 JUNE 2015 Resolved: The National Executive ratifies the transfer of an amount of $3,886,674 from the Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office, to the account of the NSW Branch of the Association, such funds being surplus to the requirement of the Deductions Account Office for the year ended 30 June 2015. Dated at Sydney this 21st day of August 2015
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION NSW DEDUCTIONS ACCOUNT OFFICE
Report on the Financial Report We have audited the financial report of Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office (“the Association”) for the financial year ended 30 June 2015, consisting of the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows for the year ended on that date, accompanying notes 1 to 18, the Operating Report and Committee of Management Statement. The Committee of Management is responsible for the financial report. We have conducted an independent audit of the financial report in order to express an opinion on it to the members of the Association. The financial Report has been prepared for distribution to the members of the Association for the purpose of fulfilling the requirements of subsections 265(1) and 265(5) of the Registered Organisations Act 2009 in relation to the financial report and independent auditor’s report. Committee of Management’s Responsibility for the Financial Report The Committee of Management of the Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and compliance with Part 3 of Chapter 8 of the Registered Organisations Act 2009. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditors’ Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Council, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we followed and complied with the applicable independence requirements of Australian professional ethical pronouncements and the Registered Organisations Act 2009. We declare to the best of our knowledge and belief that the auditor’s independence declaration, set out on page 6 of the financial report, has not changed as at the date of providing our audit opinion. Audit Opinion In our opinion the general purpose financial report is presented fairly in accordance with: 1. applicable Australian Accounting Standards (including the Australian Accounting Interpretations) and 2. in relation to recovery of wages activity: a. that the scope of the audit encompassed recovery of wages activity; 3. any other requirements imposed by these reporting guidelines or Part 3 of Chapter 8 of the Registered Organisations Act 2009. 4. The use of the Going Concern basis by the Committee of Management is appropriate. Joseph Paul Grech Grech Smith Bridle Partner Chartered Accountants Registered Company Auditor, Number 4327 Holder of Current Practicing Certificate and Member of the Chartered Accountants Australia and New Zealand, Number 24310 Dated at Sydney this 25th day of August 2015
DECLARATION
I, Joseph Paul Grech, being the auditor of the Shop, Distributive and Allied Employees’ Association NSW Deductions declare that: a) I am an approved auditor, and b) I am a person who is a member of The Chartered Accountants Australia and New Zealand; and c) I hold a current Public Practice Certificate. Joseph Paul Grech Grech Smith Bridle Partner Chartered Accountants Registered Company Auditor, Number 4327 Holder of Current Practicing Certificate and Member of the Chartered Accountants Australia and New Zealand, Number 24310 Dated at Sydney this 25th day of August 2015
SDA NEWS SPRING 2015 PAGE 33
SDA FINANCIAL REPORTS 2015 AUDITOR’S INDEPENDENCE DECLARATION FOR THE YEAR ENDED 30 JUNE 2015 TO THE COMMITTEE OF MANAGEMENT, SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, NSW DEDUCTIONS ACCOUNT OFFICE I declare that, to the best of my knowledge and belief, during the year ended 30 June 2015 there has been: i) no contraventions of the auditor independence requirements in relation to the audit; and ii) no contravention of any applicable code of professional conduct in relation to the audit. Joseph Paul Grech Grech Smith Bridle Registered Company Auditor, Number 4327 Chartered Accountants Holder of Current Practicing Certificate and Member of the Chartered Accountants Australia and New Zealand, Number 24310 Dated at Sydney this 25th day of August 2015
OPERATING REPORT FOR THE YEAR ENDED 30 JUNE 2015
The committee presents its report on the reporting unit for the financial year ended 30 June 2015. Review of principal activities, the results of those activities and any significant changes in the nature of those activities during the year The principal activities of the reporting unit are preserving and enhancing the wages and working conditions of its members, and the promotion of the interests and rights of workers. In addition to industrial representation, members are also provided with a range of services and benefits. New enterprise agreements were negotiated with a wide range of employers during the year. These agreements all resulted in improved wages and working conditions for the employees covered by them. Significant changes in financial affairs There were no significant changes in the nature of the activities and financial affairs in the Association during the financial year. Rights of members to resign Persons eligible to do so under the rules of the Association were actively encouraged to join the Association. Pursuant to s174 of the Fair Work (Registered Organisations) Act 2009 (RO Act), members could resign from the Association by written notice to the appropriate Branch of the Association. Officers & employees who are superannuation fund trustees or director of a company that is a superannuation fund trustee Four representatives of the Association hold positions as Directors of the Retail Employees’ Superannuation Trust (“REST”). Below are the directors as at 30 June 2015, along with the nominated alternate Employee Directors. Directors: Alternates: Mr Joe de Bruyn Mr Gerard Dwyer Mr Ian Blandthorn Mr Michael Donovan Mr Geoff Williams Mr Peter Malinauskas Ms Sue-Anne Burnley Ms Julia Fox Ms S Burnley is also a Director of CARE Super Pty Ltd. Mr P Griffin is also a Director of Tasplan Super. Number of Members Membership as at 30 June 2015 was 58,670 (2014: 57,310). Number of employees At 30 June 2014, there were 63 persons (full time equivalent) employed by the NSW Deductions Account Office of the Association. Affiliations & Directorships Detailed below are the affiliations of the NSW Branch of the Association: – Australian Labor Party, NSW Branch – Australian Labor Party, ACT Branch – Unions NSW – South Coast Labor Council – Unions ACT TThe National Secretary-Treasurer is on the Administrative Committee of the Australian Labor Party, NSW Branch. The NSW Branch Secretary-Treasurer of the Association is an Executive Member of Unions NSW. A representative of the NSW Branch of the Association is a member of the Service Skills NSW Wholesale, Retail and Personal Services Committee. Names of Committee of Management members and period positions held during the financial year The members of the National Executive of the Association at any time during or since the end of the financial year were: Name Experience Position Mr. J. de Bruyn National Executive member since 1978 National President Appointed National President 2014 Mr. J. Bullock National Executive member since 1996 National Vice President Appointed National Vice President 2004 (Resigned 24 October 2014) Mr. I. Blandthorn National Executive member since 1986 National Assistant Secretary Appointed National Assistant Secretary 1986 Mr. M. Donovan National Executive member since 1996 National Vice President Appointed National Vice President 2014 Mr. G. Dwyer National Executive member since 2005 National Secretary-Treasurer Appointed National Secretary-Treasurer 2014 Mr. P. Griffin National Executive member since 1990 Member of Committee Mr. C. Ketter National Executive member since 1996 Member of Committee (Resigned 24 October 2014) Mr. P. O’Keeffe National Executive member since 2014 Member of Committee Mr. C. Gazenbeek National Executive member since 2014 Member of Committee Mr. P Malinauskas National Executive member since 2008 Member of Committee Ms. B. Nebart National Executive member since 2004 Member of Committee Mr. B. Smith National Executive member since 2014 Member of Committee The Association maintained its rules and reported according to statutory requirements. Bernie Smith Gerard Dwyer Committee of Management Committee of Management Dated at Sydney this 21st day of August 2015
COMMITTEE OF MANAGEMENT STATEMENT FOR THE YEAR ENDED 30 JUNE 2015 On 21 August 2015 the Committee of Management of Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office passed the following resolution in relation to the general purpose financial report (GPFR) for the year ended 30 June 2015: The Committee of Management declares that in its opinion: a) The financial statements and notes comply with the Australian Accounting Standards; b) The financial statements and notes comply with the reporting guidelines of the General Manager; c) The financial statements and notes give a true and fair view of the financial performance, financial position and cash flows of the reporting unit for the financial year to which they relate; d) There are reasonable grounds to believe the reporting unit will be able to pay its debts as and when they become due and payable; and e) During the financial year to which the GPFR relates and since the end of that year: i) Meetings of the Committee of Management were held in accordance with the rules of the organisation including the rules of a branch concerned; and ii) The financial affairs of the reporting unit have been managed in accordance with the rules of the organisation including the rules of a branch concerned; and iii) The financial records of the reporting unit have been kept and maintained in accordance with the RO Act; and iv) Where the organisation consists of two or more reporting units, the financial records of the reporting unit have been kept, as far as practicable, in a consistent manner with each of the other reporting units of the organisation; and v) Where information has been sought in any request by a member of the reporting unit or General Manager duly made under section 272 of the RO Act has been provided to the member or General Manager; and vi) Where any orders for inspection of financial records have been made by the Fair Work Commission under section 273 of the RO Act, there has been compliance. f) No revenue has been derived from undertaking recovery of wages activity during the reporting period. This declaration is made in accordance with a resolution of the Committee of Management. Name and title of designated officer: Bernie Smith, Secretary-Treasurer Dated: 21 August 2015
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2015 Revenue Membership subscription Capitation fees Levies Interest Rental revenue Other revenue Total revenue Other income Grants and/or donations Share of net profit from associate Net gains from sale of assets Total other income Total income Expenses Employee expenses Capitation fees Affiliation fees Administration expenses Grants or donations Depreciation and amortisation Legal costs Audit fees Other expenses Total expenses Profit (loss) for the year Other comprehensive income Items that will not be subsequently reclassified to profit or loss Gain on revaluation of land & buildings Total comprehensive income for the year The above statement should be read in conjunction with the notes.
Note
2015 $
2014 $
16,398,906 244,743 998,657 33,603 17,675,909
16,546,113 237,445 1,066,032 42,396 17,891,986
3E 6E 3F
93,490 93,490 17,769,399
115,049 115,049 18,007,035
4A 4B 4C 4D 4E 4F 4G 14 4H
7,426,570 9,515,672 20,356 750,459 92,677 49,000 17,854,734 (85,335)
7,285,706 9,229,351 105,280 798,403 80,033 48,200 17,546,973 460,062
1,168,050 1,082,715
1,136,604 1,596,666
3A 3B 3C 3D
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015
ASSETS Note Current Assets Cash and cash equivalents 5A Trade and other receivables 5B Other current assets 5C Total current assets Non-Current Assets Land and buildings 6A Plant and equipment 6B Investment Property 6C Other investments 6D Other non-current assets 6E Total non-financial assets Total assets LIABILITIES Current liabilities Trade payables 7A Other payables 7B Employee provisions 8A Total current liabilities Non-Current Liabilities Employee provisions 8A Other non-current liabilities 9A Total non-current liabilities Total Liabilities Net assets EQUITY General funds 10A Retained earnings (accumulated deficit) Total equity The above statement should be read in conjunction with the notes.
2015 $
2014 $
9,113,163 717,009 97,545 9,927,717
8,832,261 699,676 117,586 9,649,523
9,973,347 1,600,341 18,581,595 106,928 30,262,211 40,189,928
8,946,450 1,359,478 19,040,335 772,356 30,118,619 39,768,142
629,662 (41,906) 2,240,483 2,828,239
1,091,822 175,545 2,213,552 3,480,919
26,118 26,118 2,854,357 37,335,571
34,367 34,367 3,515,286 36,252,856
5,683,423 31,652,148 37,335,571
4,515,373 31,737,483 36,252,856
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2015 Note
General Funds $ 3,378,769 1,136,604 4,515,373
Retained Earnings $ 31,277,421 460,062 31,737,483
Total Equity $ 34,656,190 460,062 1,136,604 36,252,856
Adjustment for errors Adjustment for changes in accounting policies Profit for the year Other comprehensive income for the year 1,168,050 Transfer to/from Asset Revaluation Reserve 10A Transfer from retained earnings Closing balance at 30 June 2015 5,683,423 The above statement should be read in conjunction with the notes.
(85,335) 31,652,148
(85,335) 1,168,050 37,335,571
OPERATING ACTIVITIES Note Cash received Receipts from other reporting units/controlled entity(s) 11B Interest Other Cash used Employees Suppliers Payment from other reporting units/controlled entity(s) 11B Net cash from (used by) operating activities 11A INVESTING ACTIVITIES Cash received Proceeds from sale of plant and equipment Proceeds from sale of land and buildings Other Cash used Purchase of plant and equipment Purchase of land and buildings Other Net cash from (used by) investing activities FINANCING ACTIVITIES Cash received Contributed equity Other Cash used Repayment of borrowings Other Net cash from (used by) financing activities Net increase/(decrease) in cash held Cash & cash equivalents at beginning of the financial year Cash & cash equivalents at end of the financial year 5 The above statement should be read in conjunction with the notes.
2015 $
2014 $
244,743 18,099,302
237,445 18,816,478
(7,407,887) (6,470,642) (3,886,674) 578,842
(7,232,223) (5,278,003) (3,893,894) 2,649,803
262,912 458,740
216,804 506,705
(924,137) (95,455) (297,940)
(662,130) 61,379
-
-
280,902 8,832,261 9,113,163
2,711,182 6,121,079 8,832,261
Balance at 1 July 2013 Adjustment for errors Adjustment for changes in accounting policies Profit for the year Other comprehensive income for the year Transfer to/from Asset Revaluation Reserve Transfer from retained earnings Closing balance at 30 June 2014
10A
CASH FLOWS STATEMENT FOR THE YEAR ENDED 30 JUNE 2015
SDA NEWS SPRING 2015 PAGE 34
SDA FINANCIAL REPORTS 2015 RECOVERY OF WAGES ACTIVITY FOR THE YEAR ENDED 30 JUNE 2015 Cash assets in respect of recovered money at beginning of year Receipts Amounts recovered from employers in respect of wages etc. Interest received on recovered money Total receipts Payments Deductions of amounts due in respect of membership for: 12 months or less Greater than 12 months Deductions of donations or other contributions to accounts or funds of: The reporting unit: name of account name of fund Name of other reporting unit of the organisation: name of account name of fund Name of other entity: name of account name of fund Deductions of fees or reimbursement of expenses Payments to workers in respect of recovered money Total payments Cash assets in respect of recovered money at end of year Number of workers to which the monies recovered relates Aggregate payables to workers attributable to recovered monies but not yet distributed Payable balance Number of workers the payable relates to Fund or account operated for recovery of wages
Note
2015 $
2014 $
-
-
-
-
-
-
-
-
-
-
-
-
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1.1 Basis of preparation of the financial statements The financial statements are general purpose financial statements and have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period and the Fair Work (Registered Organisation) Act 2009. For the purpose of preparing the general purpose financial statements, the Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office is a not-for-profit entity. The financial statements have been prepared on an accrual basis and in accordance with the historical cost, except for certain assets and liabilities at measured at fair value, as explained in the accounting policies below. Historical cost is generally based on the fair values of the consideration given in exchange for assets. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars. 1.2 Comparative amounts When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. 1.3 Significant accounting judgements and estimates The Committee of Management evaluate estimates and judgements incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Association. It has not been necessary for the Committee of Management to make any key estimates or judgements in the report. 1.4 New Australian Accounting Standards Adoption of New Australian Accounting Standard Requirements No accounting standard has been adopted earlier than the application date stated in the standard. The accounting policies adopted are consistent with those of the previous financial year. 1.5 Basis of consolidation These financial statements are for the reporting unit, the Association. They are not consolidated with any other entity. 1.6 Investment in associates and joint arrangement An associate is an entity over which the Association has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The Association has not made an investment in an associate. 1.7 Business combinations There have been no business combinations during the year. 1.8 Acquisition of assets and or liabilities that do not constitute a business combination There have been acquisition of assets or liabilities by the Association during the year that do not constitute a business combination. 1.9 Revenue Revenue is measured at the fair value of the consideration received or receivable. Revenue from subscriptions is accounted for on an accrual basis and is recorded as revenue in the year to which it relates. Revenue from the sale of goods is recognised when, the risks and rewards of ownership have been transferred to the buyer, the entity retains no managerial involvement or effective control over the goods, the revenue and transaction costs incurred can be reliably measured, and it is probable that the economic benefits associated with the transaction will flow to the entity. Donation income is recognised when it is received. Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable. Interest revenue is recognised on an accrual basis using the effective interest method. Rental revenue from operating leases is recognised on a straight-line basis over the term of the relevant lease. 1.10 Government grants Government grants are not recognised until there is reasonable assurance that the Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office will comply with the conditions attaching to them and that the grants will be received. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office recognises as expenses the related costs for which the grants are intended to compensate. Specifically, government grants whose primary condition is that the Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office should purchase, construct otherwise acquire non-current assets are recognised as deferred revenue in the statement of financial position and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets. Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office with no future related costs are recognised in profit or loss in the period in which they become receivable 1.11 Gains Sale of assets Gains and losses from disposal of assets are recognised when control of the asset has passed to the buyer. 1.12 Capitation fees and levies Capitation fees and levies are to be recognised on an accrual basis and record as a revenue and/or expenses in the year to which it relates.
1.13 Employee benefits A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave and termination benefits when it is probable that settlement will be required and they are capable of being measured reliably. Liabilities for short-term employee benefits (as defined in AASB 119 Employee Benefits) and termination benefits which are expected to be settled within twelve months of the end of reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability. Other long-term employee benefits which are expected to be settled beyond twelve months are measured as the present value of the estimated future cash outflows to be made by the reporting unit in respect of services provided by employees up to reporting date. Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions. Provision is made for separation and redundancy benefit payments. Reporting Unit recognises a provision for termination as part of a broader restructuring when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations. A provision for voluntary termination is recognised when the employee has accepted the offer of termination. 1.14 Leases Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount. The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense. Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets. Rental revenue from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term. 1.15 Borrowing costs All borrowing costs are recognised in profit and loss in the period in which they are incurred. 1.16 Cash Cash is recognised at its nominal amount. Cash and cash equivalents includes cash on hand, deposits held at call with bank, other short-term highly liquid investments with original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the consolidated statement of financial position. 1.17 Financial instruments Financial assets and financial liabilities are recognised when Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss. 1.18 Financial assets Financial assets are classified into the following specified categories: financial assets at fair value through profit or loss, held-to-maturity investments, available-for-sale financial assets and loans and receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. All regular way purchases or sales of financial assets are recognised and derecognised upon trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace. Fair value through profit or loss Financial assets are classified as at fair value through profit or loss when the financial asset is either held for trading or it is designated as at fair value through profit or loss. A financial asset is classified as held for trading if: • it has been acquired principally for the purpose of selling it in the near term; or • on initial recognition it is part of a portfolio of identified financial instruments that the reporting unit manages together and has a recent actual pattern of short-term profit-taking; or • it is a derivative that is not designated and effective as a hedging instrument. A financial asset other than a financial asset held for trading may be designated as at fair value through profit or loss upon initial recognition if: • such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or • the financial asset forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the reporting unit’s documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or • it forms part of a contract containing one or more embedded derivatives, and AASB 139 ‘Financial Instruments: Recognition and Measurement’ permits the entire combined contract (asset or liability) to be designated as at fair value through profit or loss. Financial assets at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend or interest earned on the financial asset and is included in the ‘other gains and losses’ line item in the statement of comprehensive income. Held-to-maturity investments Financial assets with fixed or determinable payments and fixed maturity dates that the reporting unit has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are measured at amortised cost using the effective interest method less any impairment. Loan and receivables Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. Effective interest method The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, when appropriate, a shorter period, to the net carrying amount on initial recognition. Income is recognised on an effective interest rate basis except for debt instruments other than those financial assets that are recognised at fair value through profit or loss. Impairment of financial assets Financial assets, other than those at fair value through profit or loss, are assessed for impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. For certain categories of financial asset, such as trade receivables, assets that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the reporting units past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period of 60 days, as well as observable changes in national or local economic conditions that correlate with default on receivables. For financial assets carried at amortised cost, the amount of the impairment loss recognised is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate. For financial assets carried at cost, the amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in subsequent periods.
SDA NEWS SPRING 2015 PAGE 35
SDA FINANCIAL REPORTS 2015 The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss. When an available-for-sale financial asset is considered to be impaired, cumulative gains or losses previously recognised in other comprehensive income are reclassified to profit or loss in the period. For financial assets measured at amortised cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised. In respect of available-for-sale equity securities, impairment losses previously recognised in profit or loss are not reversed through profit or loss. Any increase in fair value subsequent to an impairment loss is recognised in other comprehensive income and accumulated under the heading of investments revaluation reserve. In respect of available-for-sale debt securities, impairment losses are subsequently reversed through profit or loss if an increase in the fair value of the investment can be objectively related to an event occurring after the recognition of the impairment loss. Derecognition of financial assets The reporting unit derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. The difference between the assets’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in profit or loss. 1.19 Financial liabilities Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’. Fair value through profit or loss Financial liabilities are classified as at fair value through profit or loss when the financial liability is either held for trading or it is designated as at fair value through profit or loss. A financial liability is classified as held for trading if: • it has been acquired principally for the purpose of repurchasing it in the near term; or • on initial recognition it is part of a portfolio of identified financial instruments that the reporting unit manages together and has a recent actual pattern of short-term profit-taking; or • it is a derivative that is not designated and effective as a hedging instrument. A financial liability other than a financial liability held for trading may be designated as at fair value through profit or loss upon initial recognition if: • such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or • the financial liability forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the reporting units documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or • it forms part of a contract containing one or more embedded derivatives, and AASB 139 ‘Financial Instruments: Recognition and Measurement’ permits the entire combined contract (asset or liability) to be designated as at fair value through profit or loss. Financial liabilities at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the ‘other gains and losses’ line item in the statement of comprehensive income. Other financial liabilities Other financial liabilities, including borrowings and trade and other payables, are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. Derecognition of financial liabilities The reporting unit’s derecognises financial liabilities when, and only when, the reporting unit’s obligations are discharged, cancelled or they expire. The difference between the carrying amounts of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss. 1.20 Contingent liabilities and contingent assets Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the relevant notes. They may arise from uncertainty as to the existence of a liability or asset or represent an existing liability or asset in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain, and contingent liabilities are disclosed when settlement is greater than remote. 1.21 Land, buildings, plant and equipment Asset recognition threshold Purchases of land, buildings, plant and equipment are recognised initially at cost in the Statement of Financial Position. The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. Revaluations—land and buildings Following initial recognition at cost, land and buildings are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Revaluations are performed with sufficient frequency such that the carrying amount of assets do not differ materially from those that would be determined using fair values as at the reporting date. Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the profit or loss except to the extent that they reverse a previous revaluation increment for that class. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset is restated to the revalued amount. Depreciation Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful life using, in all cases, the straight line method of depreciation. Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Depreciation rates applying to each class of depreciable asset are based on the following useful lives: 2015 2014 Land & Buildings 40 years 40 years Plant & equipment 4 to 40 years 4 to 40 years Derecognition An item of land, buildings, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the profit and loss. 1.22 Investment Property Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at its cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at fair value. Gains and losses arising from changes in the fair value of investment properties are included in profit and loss in the period in which they arise. An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognised. 1.23 Impairment for non-financial assets All assets are assessed for impairment at the end of each reporting period to the extent that there is an impairment trigger. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.
The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the Association were deprived of the asset, its value in use is taken to be its depreciated replacement cost. 1.24 Non-current assets held for sale Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the non-current asset is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. Non-current assets classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs of disposal. 1.25 Taxation Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office is exempt from income tax under section 50.1 of the Income Tax Assessment Act 1997 however still has obligation for Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST). Revenues, expenses and assets are recognised net of GST except: • where the amount of GST incurred is not recoverable from the Australian Taxation Office; and • for receivables and payables. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables. Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the Australian Taxation Office is classified within operating cash flows. 1.26 Fair value measurement Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office measures financial instruments, such as, financial asset as at fair value through the profit and loss, available for sale financial assets, and non-financial assets such as land and buildings and investment properties, at fair value at each balance sheet date. Also, fair values of financial instruments measured at amortised cost are disclosed in Note 16A. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability, or • In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Association. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1—Quoted (unadjusted) market prices in active markets for identical assets or liabilities • Level 2—Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable • Level 3—Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable For assets and liabilities that are recognised in the financial statements on a recurring basis, the Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. External valuers are involved for valuation of significant assets, such as land and buildings and investment properties. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. For the purpose of fair value disclosures, the Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy. 1.27 Going concern Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office has not received financial support from another reporting unit. Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office does not provide financial support to any other reporting unit. Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office’s ability to continue as a going concern is not reliant on the support of another reporting unit. NOTE 2: EVENTS AFTER THE REPORTING PERIOD There were no events that occurred after 30 June 2015, and/or prior to the signing of the financial statements, that would affect the ongoing structure and financial activities of Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office. 2014 $ NOTE 3: INCOME 2015 $ NOTE 3A: CAPITATION FEES Capitation fees Total capitation fees NOTE 3B: LEVIES Levies Total levies NOTE 3C: INTEREST Deposits 244,743 237,445 Loans Total interest 244,743 237,445 NOTE 3D: RENTAL REVENUE Properties 998,657 1,066,032 Other Total rental revenue 998,657 1,066,032 NOTE 3E: GRANTS OR DONATIONS Grants Donations Total grants or donations NOTE 3F: NET GAINS FROM SALE OF ASSETS Land and buildings Plant and equipment 93,490 115,049 Intangibles Total net gains from sale of assets 93,490 115,049 NOTE 4: EXPENSES NOTE 4A: EMPLOYEE EXPENSES Holders of office: Wages and salaries 302,194 308,640 Superannuation 61,687 64,035 Leave and other entitlements (65,399) (3,497) Separation and redundancies 36,502 24,937 Other employee expenses Subtotal employee expenses holders of office 334,984 394,115 Employees other than office holders: Wages and salaries 5,208,464 5,047,802 Superannuation 547,919 536,722 Leave and other entitlements 705,686 708,170 Separation and redundancies Other employee expenses 629,517 598,897 Subtotal employee expenses employees other than office holders 7,091,586 6,891,591 7,426,570 7,285,706 Total employee expenses
SDA NEWS SPRING 2015 PAGE 36
SDA FINANCIAL REPORTS 2015 NOTE 4B: CAPITATION FEES Capitation fees Total capitation fees NOTE 4C: AFFILIATION FEES Affiliation fees Total affiliation fees/subscriptions NOTE 4D: ADMINISTRATION EXPENSES Consideration paid to employers for payroll deductions Compulsory Levies Fees/Allowances – meeting and conferences Conference and meeting expenses Accommodation and travel expenses Contractors/consultants Occupancy expenses Printing, postage and stationery Telephone expenses Insurance expenses Motor Vehicle expenses NSW Branch expenses Other Subtotal administration expenses Operating lease rental Minimum lease payments Total administration expenses NOTE 4E: GRANTS OR DONATIONS Grants Total paid that were $1,000 or less Total paid that exceeded $1,000 Donations Total paid that were $1,000 or less Total paid that exceeded $1,000 Total grants or donations NOTE 4F: DEPRECIATION AND AMORTISATION Depreciation Land & Building Property, plant & equipment Total depreciation Amortisation Intangible Total amortisation Total depreciation and amortisation NOTE 4G: LEGAL COSTS Litigation Other legal matters Total legal costs NOTE 4H: OTHER EXPENSES Penalties – via RO Act or RO Regulations Total other expenses NOTE 5: CURRENT ASSETS NOTE 5A: CASH AND CASH EQUIVALENTS Cash at bank Cash on hand Short term deposits Other Total cash and cash equivalents NOTE 5B: TRADE AND OTHER RECEIVABLES Receivables from other reporting unit(s) Total receivables from other reporting unit(s) Less provision for doubtful debts
2015 $ -
2014 $ -
-
-
1,452,498 76,712 153,165 450,449 1,046,955 209,447 163,782 715,873 479,033 3,886,674 617,266 9,251,854
1,473,056 84,947 148,630 492,078 958,972 199,689 176,039 601,306 494,680 3,893,894 371,793 8,895,084
263,818 9,515,672
334,267 9,229,351
-
-
7,680 12,676 20,356
8,066 97,214 105,280
236,607 513,852 750,459
257,557 540,846 798,403
750,459
798,403
508 92,169 92,677
21,661 58,372 80,033
-
-
1,254,014 1,450 7,857,699 9,113,163
1,548,633 1,450 7,282,178 8,832,261
-
-
Total provision for doubtful debts Receivable from other reporting unit(s) net Other receivables GST receivable from the Australian Taxation Office Other trade receivables 717,009 699,676 Total other receivables 717,009 699,676 Total trade and other receivables (net) 717,009 699,676 NOTE 5C: OTHER CURRENT ASSETS 97,545 117,586 Prepayment Total other current assets 97,545 117,586 NOTE 6: NON-CURRENT ASSETS NOTE 6A: LAND & BUILDINGS Land and buildings: Fair value 9,994,305 9,377,750 Accumulated depreciation (20,958) (431,300) Total land and buildings 9,973,347 8,946,450 Reconciliation of the opening and closing balances of land and buildings As at 1 July Gross book value 9,377,750 9,452,500 Accumulated depreciation and impairment (431,300) (256,975) Net book value 1 July 8,946,450 9,195,525 Additions: By purchase 95,455 From acquisition of entities (including restructuring) Revaluations 521,100 (74,750) Impairments Depreciation expenses 410,342 (174,325) Other movement Disposals: From disposal of entities (including restructuring) Other Net book value 30 June 9,973,347 8,946,450 Net book value as of 30 June represented by: Gross book value 9,994,305 9,377,750 Accumulated depreciation and impairment (20,958) (431,300) Net book value 30 June 9,973,347 8,946,450 Fair value of the properties was determined by using direct comparison on a rate per square metre of lettable area supported by the capitalisation of net income method. This means that it utilises sales that have been analysed on a rate /m2 of strata area basis and compares the equivalent rates to the subject to establish the property’s current market value. As at the date of revaluation 30 June 2015, the properties’ fair values are based on valuations performed by Mark Willers of LandMark White, an accredited independent valuer with a recognised professional qualification in Australian Property Institute and with recent experience in the location and category of the investment property being valued. A significant increase (decrease) in estimated price per square metre in isolation would result in a significantly higher (lower) fair value. NOTE 6B: PLANT AND EQUIPMENT 2015 $ 2014 $ Plant and equipment At cost 3,890,125 3,647,509 (2,289,784) (2,288,031) Accumulated depreciation Total plant and equipment 1,600,341 1,359,478 Reconciliation of the opening and closing balances of plant and equipment As at 1 July Gross book value 3,647,509 4,190,774 Accumulated depreciation and impairment (2,288,031) (2,829,585) Net book value 1 July 1,359,478 1,361,189 Additions: By purchase 938,682 662,130 From acquisition of entities (including restructuring) Impairments Depreciation expenses (509,377) (540,841) Other movement -
Disposals: From disposal of entities (including restructuring) Other Net book value 30 June Net book value as of 30 June represented by: Gross book value Accumulated depreciation and impairment Net book value 30 June NOTE 6: NON-CURRENT ASSETS NOTE 6C: INVESTMENT PROPERTY Property Opening balance as at 1 July Additions – at cost Net gain from fair value adjustment Closing balance as at 30 June Lease Incentives Opening balance as at 1 July Additions – at cost Amortisation of lease incentives Closing balance as at 30 June Total Investment property
(188,442) 1,600,341
2015 $
2014 $ (123,000) 1,359,478
3,890,125 (2,289,784) 1,600,341
3,647,509 (2,288,031) 1,359,478
16,102,000 16,102,000
14,952,633 1,149,367 16,102,000
4,579,233 (2,099,628) 2,479,595 18,581,595
4,579,233 (1,640,888) 2,938,335 19,040,335
Rental income earned and received from the investment properties during the year was $1,382,104 (2014: 1,426,712). Direct expenses incurred in relation to the investment properties that generated rental income during the year was $553,343 (2014: $546,672). During the year and as at the year-end, no restrictions on the realisability of investment property or the remittance of income and proceeds of disposal were present. The Association does not have any contractual obligations to purchase, construct or develop investment property or for repairs, maintenance or enhancements. The fair value of investment property is determined by Mark Willers of LandMark White, using recognised valuation techniques. These techniques comprise of the Discounted Cash Flow (DCF) method, direct comparison method and Income Capitalisation method. Under the DCF method, a property’s fair value is estimated using explicit assumptions regarding the benefits and liabilities of ownership over the asset’s life including estimated rental income and an exit or terminal value. This involves the projection of a series of cash flows and to this an appropriate, market-derived discount rate is applied to establish the present value of the income stream. Under the income capitalisation method, a property’s fair value is estimated based on the normalised net operating income generated by the property, which is divided by the capitalisation rate (the investor’s rate of return). The fair value of the investment property is included within level 2. NOTE 6D: OTHER INVESTMENTS 2015 $ 2014 $ Deposits Other Total other investments NOTE 6E: OTHER NON-CURRENT ASSETS Prepayments 106,928 772,356 Other Total other non-financial assets 106,928 772,356 NOTE 7: CURRENT LIABILITIES NOTE 7A: TRADE PAYABLES Trade creditors and accruals 629,662 1,091,822 Operating lease rentals 629,662 1,091,822 Subtotal trade creditors Payables to other reporting unit(s) Subtotal payables to other reporting unit(s) Total trade payables 629,662 1,091,821 Settlement is usually made within 30 days. NOTE 7B: OTHER PAYABLES Wages and salaries Superannuation Consideration to employers for payroll deductions Legal costs Prepayments received/unearned revenue GST payable (41,906) 175,545 Other Total other payables (41,906) 175,545 Total other payables are expected to be settled in: No more than 12 months (41,906) 175,545 More than 12 months Total other payables (41,906) 175,545 NOTE 8: PROVISIONS NOTE 8A: EMPLOYEE PROVISIONS Office holders: Annual leave 49,258 54,743 Long service leave 131,640 157,272 Separation and redundancies Other Subtotal employee provisions - office holders 180,898 212,015 Employees other than office holders: Annual leave 794,033 777,441 Long service leave 1,291,670 1,258,463 Separation and redundancies Other Subtotal employee provisions - employees other than office holders 2,085,703 2,035,904 Annual leave 843,291 832,184 1,423,310 1,415,735 Long service leave Total employee provisions 2,266,601 2,247,919 Current 2,240,483 2,213,552 Non Current 26,118 34,367 Total employee provisions 2,266,601 2,247,919 NOTE 9 NON-CURRENT LIABILITIES NOTE 9A: OTHER NON-CURRENT LIABILITIES Total other non-current liabilities NOTE 10: EQUITY NOTE 10A: GENERAL FUNDS Asset Revaluation Reserves Balance as at start of year 4,515,373 3,378,769 Transferred to reserve 1,168,050 2,549,750 Transferred out of reserves (1,413,146) Balance as at end of year 5,683,423 4,515,373 Total Reserves 5,683,423 4,515,373 NOTE 11: CASH FLOW NOTE 11A: CASH FLOW RECONCILIATION Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement: Cash and cash equivalents as per: Cash flow statement 9,113,163 8,832,261 Balance sheet 9,113,163 8,832,261 Difference Reconciliation of profit/(deficit) to net cash from operating activities: Profit/(deficit) for the year (85,335) 460,062 Adjustments for non-cash items Amortisation Depreciation 750,459 798,403 (Profit)/loss on sale of fixed assets (93,490) (115,049) Changes in assets/liabilities (Increase)/decrease in net receivables (17,333) 1,445,202 (Increase)/decrease in prepayments 685,469 (283,265) Increase/(decrease) in supplier payables (679,611) 290,967 Increase/(decrease) in other payables Increase/(decrease) in employee provisions 18,683 53,483 Increase/(decrease) in other provisions 578,842 2,649,803 Net cash from (used by) operating activities
SDA NEWS SPRING 2015 PAGE 37
SDA FINANCIAL REPORTS 2015 NOTE 11B: CASH FLOW INFORMATION 2015 $ 2014 $ Cash inflows Shop, Distributive & Allied Employees’ Association NSW Branch Total cash inflows 19,065,697 19,777,432 Cash outflows Shop, Distributive & Allied Employees’ Association NSW Branch 3,886,674 3,893,894 Total cash outflows 18,784,795 17,066,250 NOTE 12: CONTINGENT LIABILITIES, ASSETS AND COMMITMENTS NOTE 12A: COMMITMENTS AND CONTINGENCIES Operating lease commitments – as lessee Non-cancellable operating leases contracted for but not capitalised in the financial statements. Future minimum rentals payable under non-cancellable operating leases as at 30 June are as follows: Within one year 360,910 263,818 After one year but not more than five years 806,573 266,970 More than five years Closing balance as at 30 June 1,167,483 530,788 The operating leases (property, plant, equipment and a membership hosting system) are non-cancellable with a five year term, with rent payable quarterly or monthly in advance. The leases provide a right of renewal at which time all terms are renegotiated. Operating lease commitments – as lessor The association leases out its investment properties under operating leases (see note 6C). The future minimum lease income under non-cancellable leases are as follows: Less than one year 1,018,823 864,925 Between one and five years 3,904,543 3,511,765 More than five years 388,812 1,305,078 During the year, $998,657 was recognised as rental income in profit or loss (2014: $1,066,032). Capital commitments The Association has not entered into any capital commitments. Other contingent assets or liabilities (i.e. legal claims) The Association is not aware of any contingent asset or liability. NOTE 13: RELATED PARTY DISCLOSURES NOTE 13A: RELATED PARTY TRANSACTIONS FOR THE REPORTING PERIOD The following table provides the total amount of transactions that have been entered into with related parties for the relevant year. Revenue received from related parties Expenses paid to Shop, Distributive and Allied Employees’ Association NSW Branch includes the following: Shop, Distributive and Allied NSW Branch Expenses 3,886,674 3,893,894 Donated to Australian Labor Party includes the following: Donated to Australian Labor Party 2013 Federal Election 71,632 Donated to NSW Labor Party 2015 State Election 3,255 NOTE 13B: KEY MANAGEMENT PERSONNEL REMUNERATION FOR THE REPORTING PERIOD Key Management Personnel Gerard Dwyer Bernie Smith Robert Tonkli Corrine Boyle Total Remuneration for 2015 SecretaryAssistant Assistant Information Treasurer SecretarySecretary Officer (Resigned) Treasurer $ $ $ $ $ Short-term employee benefits Salary (including annual leave taken) 11,866 109,855 102,913 77,560 302,194 Honorarium Annual leave accrued 6,581 1,785 8,366 Non-monetary (motor vehicle and parking) 5,543 12,441 14,740 3,779 36,503 Total short-term employee benefits 17,409 128,877 119,438 81,339 347,063 Post-employment benefits: 3,397 23,508 19,447 15,334 61,686 Superannuation Total post-employment benefits 3,397 23,508 19,447 15,334 61,686 Other long-term benefits: 7,892 4,373 2,260 14,525 Long-service leave Total other long-term benefits 7,892 4,373 2,260 14,525 Total 20,806 160,277 143,258 98,933 423,274 Key Management Personnel Remuneration for 2014
Gerard Dwyer Bernie Smith Corrine Boyle SecretaryAssistant Information Treasurer Secretary Officer $ $ $
Short-term employee benefits Salary (including annual leave taken) 122,379 108,017 Honorarium Annual leave accrued 1,480 11,569 10,312 Non-monetary (motor vehicle and parking) Total short-term employee benefits 133,948 119,809 Post-employment benefits: 27,512 21,627 Superannuation Total post-employment benefits 27,512 21,627 Other long-term benefits: 2,426 Long-service leave Total other long-term benefits 2,426 Total 163,886 141,436 NOTE 14: REMUNERATION OF AUDITORS Value of the services provided 2015 $ Grech Smith Bridle Financial statement audit services 49,000 Other services 49,000 Total remuneration of auditors No other services were provided by the auditors of the financial statements.
Total $
78,244 3,056 81,300
308,640 1,480 24,937 335,057
14,896 14,896
64,035 64,035
2,558 2,558 98,754
4,984 4,984 404,076 2014 $ 48,200 48,200
NOTE 15: FINANCIAL INSTRUMENTS The Association’s financial instruments consist primarily of deposits with banks, short term investments, accounts receivable and accounts payable. The totals for each category of financial Instruments are summarised in note 15A. The committee of management has overall responsibility for the establishment and oversight of risk management policies. Main policies aim to minimise potential risk exposure by actively securing short to medium term cash flows through minimising exposure to financial markets. The Association currently does not hold any long term financial instruments. The Association does not actively engage in the trading of financial assets for speculative purposes. The main risks faced by the Association consist of; credit risk, liquidity risk and market risk, which are outlined below. a) Credit risk Credit risk is the risk of financial loss to the Association if a counterparty to a financial instrument fails to meet its contractual obligations, and arises primarily from the Association’s receivables and other financial assets. i) Receivables The Associations exposure to credit risk is influenced mainly by the individual characteristics of each customer or tenant. The Association takes reasonable steps to ensure the credit worthiness of tenants. None of the tenants were in arrears at balance sheet date and there is no indication that any present significant credit risk. The Association continuously monitors defaults of customers and incorporates this information into its credit risk policies. ii) Cash and cash equivalents the maximum exposure of these assets is shown in note 15D. The cash and cash equivalents are held with bank counterparties, all of which are located in Australia. b) Liquidity risk Liquidity risk is the risk that the Association will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Association manages liquidity risk by monitoring forecast cash flows and ensuring that adequate cash facilities are maintained to meet liabilities when due under both normal and stress conditions, without incurring any unacceptable losses. See note 15E. c) Market Risk Market risk is the risk that changes in the market prices, such as foreign exchange rates, interest rates and equity prices will affect the Associations income or the value of its holdings of financial instruments. The Association aims to control and manage market risk exposures to acceptable levels, while optimising return. See note 15F.
i) Interest rate risk The Association’s interest rate risk arises primarily from investments in term deposits which are issued at fixed rates for 90 day terms. Term deposits mature at regular intervals to smooth fluctuations in interest rates being offered. The majority of cash reserves are held in term deposits with the remainder held in variable rate at call cash accounts used to provide liquidity of funds. Capital Management In conjunction with the above risk policies, specifically those relating to financial instruments, the Association’s policy is to maintain a strong capital base so as to sustain member, creditor and market confidence and to sustain future development of the union’s activities. The committee of management monitors the return on capital and seeks to maintain a conservative position. There were no changes in the Association’s approach to capital management during the year. NOTE 15A: CATEGORIES OF FINANCIAL INSTRUMENTS Financial assets 2015 $ 2014 $ Fair value through profit or loss: Total Held-to-maturity investments: Total Loans and receivables: 717,009 699,676 Trade and other receivables Total 717,009 699,676 Available-for-sale assets: 9,113,163 8,832,261 Cash and cash equivalents Total 9,113,163 8,832,163 9,830,172 9,531,839 Carrying amount of financial assets Financial Liabilities Other financial liabilities: 587,755 1,267,366 Trade and other payables 587,755 1,267,366 Total 587,755 1,267,366 Carrying amount of financial liabilities NOTE 15B: NET INCOME AND EXPENSE FROM FINANCIAL ASSETS Held-to-maturity Interest revenue Exchange gains/(loss) Impairment Gain/loss on disposal Net gain/(loss) held-to-maturity Loans and receivables Interest revenue Exchange gains/(loss) Impairment Gain/loss on disposal Net gain/(loss) from loans and receivables Available for sale Interest revenue 244,743 237,445 Dividend revenue Exchange gains/(loss) Gain/loss recognised in equity Amounts reversed from equity: Impairment Fair value changes reversed on disposal Gain/loss on disposal 244,743 237,445 Net gain/(loss) from available for sale Fair value through profit and loss: Held for trading: Change in fair value Interest revenue Dividend revenue Exchange gains/(loss) Total held for trading Designated as fair value through profit and loss: Change in fair value Interest revenue Dividend revenue Exchange gains/(loss) Total designated as fair value through profit and loss Net gain/(loss) at fair value through profit and loss Net gain/(loss) from financial assets 244,743 237,445 All financial assets and liabilities are deemed to be at fair value. The net income/expense from financial assets not at fair value from profit and loss is $0 (2014: $0). NOTE 15C: NET INCOME AND EXPENSE FROM FINANCIAL LIABILITIES At amortised cost Interest expenses Exchange gains/(loss) Gain/loss on disposal Net gain/(loss) financial liabilities – at amortised cost Fair value through profit and loss Held for trading: Change in fair value Interest expense Exchange gains/(loss) Total held for trading Designated as fair value through profit and loss: Change in fair value Interest expense Total designated as fair value through profit and loss Net gain/(loss) at fair value through profit and loss The net income/expense from financial liabilities not at fair value from profit and loss is $0. (2014:$0). NOTE 15D: CREDIT RISK The Association is not exposed to any material credit risk. The following table illustrates the entity’s gross exposure to credit risk, excluding any collateral or credit enhancements. Financial assets Cash and cash equivalents 9,113,163 8,832,261 717,009 699,676 Receivables 9,830,172 9,531,937 Total Financial liabilities Payables 587,755 1,267,366 587,755 1,267,366 Total In relation to the entity’s gross credit risk the following collateral is held: nil Credit quality of financial instruments not past due or individually determined as impaired Not Past Due Past due Not Past Due Past due Nor Impaired or impaired Nor Impaired or impaired 2015 2015 2014 2014 $ $ $ $ Cash and cash equivalents 9,113,163 8,832,261 Receivables 717,009 6,99,676 9,830,172 9,531,937 Total Ageing of financial assets that were past due but not impaired for 2015 None of the Association’s receivables are past due, and based on past default rates and minimal credit risk, the Association believes no impairment allowance is necessary. Other financial assets consist of term deposits and at call accounts, held with the Commonwealth Bank of Australia, thus the Association believes no impairment allowance is necessary. As at 30 June 2015 the Association does not have any collective impairments on its cash and cash equivalents or receivables. None of the receivables lie outside Australia.
SDA NEWS SPRING 2015 PAGE 38
SDA FINANCIAL REPORTS 2015 Ageing of financial assets that were past due but not impaired for 2014 None of the Association’s receivables are past due, and based on past default rates and minimal credit risk, the Association believes no impairment allowance is necessary. Other financial assets consist of term deposits and at call accounts, held with the Commonwealth Bank of Australia, thus the Association believes no impairment allowance is necessary. As at 30 June 2014 the Association does not have any collective impairments on its cash and cash equivalents or receivables. None of the receivables lie outside Australia. NOTE 15E: LIQUIDITY RISK The Association manages liquidity risk by monitoring forecast cash flows and ensuring that adequate cash facilities are maintained. The Association assess the liquidity risk as minimal as it holds sufficient financial assets to cover the expected contractual outflows. Contractual maturities for financial liabilities 2015 On Demand < 1 year 1-2 years $ $ $ Trade payables 587,755 587,755 Total
2-5 years $ -
> 5 years $ -
Total $ 587,755 587,755
Maturities for financial liabilities 2014 On Demand < 1 year $ $ Trade payables 1,267,366 1,267,366 Total
2-5 years $ -
> 5 years $ -
Total $ 1,267,366 1,267,366
1-2 years $ -
NOTE 15F: MARKET RISK Interest Rate Risk Interest rate risk is managed with a mixture of fixed and floating rate cash balances. At 30 June 2015 approximately 86.24% of the Association’s cash balance is fixed. The fixed rate instruments consist of 90 day term deposits and money market call account, shown in cash and cash equivalents (Note 5A). A one percent (1.0%) change in interest rates at the reporting date would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant. This analysis is performed on the same basis for 2014. Sensitivity analysis of the risk that the entity is exposed to for 2015 Risk Change in Effect on Effect on variable risk variable Profit and Loss Equity % $ $ Interest rate risk Increase 1.0% 78,577 78,577 Interest rate risk Decrease -1.0% (78,577) (78,577) Sensitivity analysis of the risk that the entity is exposed to for 2014 Risk Change in Effect on Effect on variable risk variable Profit and Loss Equity % $ $ Interest rate risk Increase 1.0% 72,822 72,822 Interest rate risk Decrease -1.0% (72,822) (72,822) Price Risk The Association is not exposed to any price risk. Foreign Currency Risk The Association is not exposed to fluctuations in foreign currencies. NOTE 16: FAIR VALUE MEASUREMENT NOTE 16A: FINANCIAL ASSETS AND LIABILITIES Management of the reporting unit assessed that cash, trade receivables, trade payables, and other current liabilities approximate their carrying amounts largely due to the short term maturities of these instruments. The fair value of financial assets and liabilities is included at the amount which the instrument could be exchanged in a current transaction between willing parties. The following methods and assumptions were used to estimate the fair values: Fair values of the reporting unit’s interest-bearing borrowings and loans are determined by using a discounted cash flow method. The discount rate used reflects the issuer’s borrowing rate as at the end of the reporting period. The own performance risk as at 30 June 2015 was assessed to be insignificant. Fair value of available-for-sale financial assets is derived from quoted market prices in active markets. Long-term fixed-rate and variable-rate receivables/borrowings are evaluated by the Group based on parameters such as interest rates and individual credit worthiness of the customer. Based on this evaluation, allowances are taken into account for the expected losses of these receivables. As at 30 June 2015 the carrying amounts of such receivables, net of allowances, were not materially different from their calculated fair values. The Association measures and recognises the following assets at their fair value on a recurring basis after initial recognition: - Available-for-sale financial assets; and - Freehold land and building The following table contains the carrying amounts and related fair values for the Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office financial assets and liabilities: Carrying Carrying Fair Fair Amount Amount Value Value 2015 2015 2014 2014 $ $ $ $ Financial assets: Cash and cash equivalents 9,113,163 9,113,163 8,832,261 8,832,261 Trade and other receivables 717,009 717,009 699,676 699,676 Total 9,830,172 9,830,172 9,531,937 9,531,937 Financial liabilities: Trade and other payables 587,755 587,755 1,267,366 1,267,366 Total 587,755 587,755 1,267,366 1,267,366
NOTE 16B: FAIR VALUE HIERARCHY The following table provide an analysis of financial and non financial assets and liabilities that are measured at fair value, by fair value hierarchy. Fair value hierarchy 30 June 2015 Assets measured at fair value Non-financial assets Land & Building Investment Property (see note 16C) Total Liabilities measured at fair value Total Fair value hierarchy 30 June 2014 Assets measured at fair value Non-financial assets Land & Building Investment Property (see note 16C) Total Liabilities measured at fair value Total
Date of valuation
Level 1 $
Level 2 $
Level 3 $
30 June 2015 30 June 2014
-
9,973,347 16,102,000 26,075,347 -
-
Date of valuation
Level 1 $
Level 2 $
Level 3 $
30 June 2012 30 June 2014
-
8,946,450 16,102,000 25,048,450 -
-
NOTE 16C: FAIR VALUE HIERARCHY Total amount disclosed in 2014 financial report was $19,040,355. This comprised of investment property at fair value $16,102,000 and carrying amount of lease incentive $2,938,355. In 2015 the fair value of investment property was $16,102,000 and carrying amount of lease incentive was $2,479,595 giving a total of $18,581,595. No revaluations took place in year 2013. NOTE 17: BUSINESS COMBINATIONS The reporting unit has not acquired an asset or a liability during the financial year as a result of: a) an amalgamation under Part 2 of Chapter 3, of the RO Act in which the organisation (of which the reporting unit form part) was the amalgamated organisation; or b) a restructure of the branches of the organisation; or c) a determination by the General Manager under subsection 245(1) of the RO Act of an alternative reporting structure for the organisation; or d) a revocation by the General Manager under subsection 249(1) of the RO Act of a certificate issued to an organisation under subsection 245(1). NOTE 18: SECTION 272 FAIR WORK (REGISTERED ORGANISATIONS) ACT 2009 In accordance with the requirements of the Fair Work (Registered Organisations) Act 2009, the attention of members is drawn to the provisions of subsections (1) to (3) of section 272, which reads as follows: Information to be provided to members or General Manager: 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).
SDA NEWS SPRING 2015 PAGE 39
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