2013 ASIAL Annual & Financial report

ANNUAL Financial REPOR T 2013

The peak body for secur i ty professionals

2 ASIAL Annual & Financial Report 2013

www.asial.com.au

About ASIALThe Australian Security Industry Association Limited (ASIAL) is the peak

body that represents the security industry in Australia. With over 3,000

members, we are the voice of the industry. The services we provide

help support our members in operating professional and profitable

businesses that deliver quality services to their customers.

VisionWe are the leading security association where membership is a mark

of distinction valued by members and the community.

MissionTo support our members, promote standards and safeguard

public interests.

www.asial.com.au

ContentsMessage from the President 4

Secretary’s Report 5

Operating Report 6

Director Profiles 14

Directors operating report 17

Independent audit report to members 21

Statement of comprehensive income 22

Statement of financial position 23

Statement of changes in equity 24

Statement of cash flows 24

Notes to the financial statements 25

BOARD OF DIRECTORSPresident Kevin McDonald Vice President Chris Luhrmann Directors Rod Anderson, Ged Byrnes, Antony Elliott, Mike McKinnon,

Neil McLean (part), Tom Roche (part), Leo Silver (part), Damian Waters.

National Reference Group John Fleming (part), Peter Georgiou (part) Peter Johnson, Neville Kiely (part), Chris Luhrmann, Neil McLean, David MacLagan (part), Darryl Milling, Suzette Po-Williams, Robert Seth (part), Tania Tomuli (part) (in addition to Board).

Past President Ged Byrnes.Auditor Foster RaffanSolicitor/Attorney Goldrick Farrell Mullan

CONSULTANTSMonitoring Centre Certification Inspection Robin Burrows, ATSCIndustrial Relations Chris Delaney, Chris Delaney & AssociatesCompliance & Regulatory Affairs Peter Johnson, Corporate ApplicationSpecial Consultant Damien Smith, Enterprise Care Pty Ltd

SECRETARIATChief Executive Officer & Secretary Bryan de CairesGeneral Manager John FlemingManager, Membership Sylva PechackovaFinance & Administration Officer Fran MeemCabling Officer Richard RollsMember Liaison Officer Tania LairdMarketing & Communications Officer Stephanie LeeMembership Officer Alexandra Firth Database & Website Officer Nadine KeadyMembership & Accounts Coordinator Fiona RoundsMembership Coordinator Ivy Xu Membership Coordinator Therese Dahlström Membership Coordinator Kamiya Tanwar

ASIAL Annual & Financial Report 2013 3

2012

message from the

PRESIDENT SECRETARY’S report


It is my pleasure to present you with the Australian Security Industry Association’s 2013 Annual and Financial Report, my first as President. In doing so I would like to acknowledge my predecessor Ged Byrnes for the leadership provided during his term as President. Following elections conducted by the Australian Electoral Commission in November 2012, two new Directors joined the Board, Chris Luhrmann (Vice President) and Neil McLean (Director). They replaced Tom Roche and Leo Silver who stood down as Directors. Over the following pages you will read about some of our achievements over what has been another busy and eventful year for the Association. As the voice of the security industry we remain focussed on providing leadership through delivering on our stated mission of supporting members, promoting standards and safeguarding public interests. Accordingly, the focus of our activities over the past year has been on promoting a positive image of the industry, promoting the highest levels of professionalism, providing strong advocacy for the industry and providing value to our members.In June 2012 Federal legislation was passed which subjects employer organisations, unions and their office holders to tougher financial and accountability obligations. The Fair Work (Registered Organisations) Amendment Act 2012 (the Amendment Act) received Royal Assent on 29 June 2012 and amends the Fair Work (Registered Organisations) Act 2009 (the RO Act) in order to increase the financial accountability of registered organisations and their office holders, to strengthen the investigative powers of Fair Work Australia and to increase penalties under the RO Act. The changes seek to ensure greater transparency about the financial management of registered organisations, in the interests of their membersAs a Registered Organisation of Employers, we are obligated to comply with the requirements of the Amendment Act. Accordingly, rule changes were put to members and adopted unanimously. An application for leave to alter the rules of the Association has been lodged with the Fair Work Commission.In 2012, we engaged Professor Tim Prenzler from the Australian Research Council Centre for Excellence in Policing and Security to prepare a report on how government, police and the private security industry in Australia can work together more closely to reduce crime. The ASIAL commissioned report into outsourcing opportunities for the security industry was released in January 2013.

The report found that as in other countries around the world, pressure is being placed on law enforcement agencies in Australia to provide value for money frontline policing and to improve operational efficiency. An opportunity exists for government to explore how the skills, expertise and solutions provided by the private security industry can assist in helping to achieve these objectives. The National Broadband Network rollout represents a once in a lifetime change to the country’s communications infrastructure. The rollout will provide our industry with many challenges and opportunities. We have actively engaged with the NBN Co to raise industry issues and concerns, particularly relating to the migration of legacy systems. The NBN Co has actively sought and welcomed our input in seeking to address the issues raised. We have worked with the Fair Work Ombudsman in developing an education campaign targeting government (initially local government) who engage contract security services. The aim of the campaign is to ensure compliance and equity in the allocation of tenders for security contracts.We also initiated discussions with the National Emergency Communications Working Group (a national group comprising representatives from Emergency Service Organisations, including Police, Fire and Ambulance) to develop a national alarm response protocol to minimise the incidence of false or non-genuine alarms. We have addressed National Emergency Communications Working Group meetings in Sydney and Adelaide to progress this initiative.Our commitment to implementing meaningful and practical steps to raise industry standards is reflected in initiatives such as the Security Technician Certification program, Security Industry Leadership Program and Monitoring Centre Certification scheme. During the course of the year, former longstanding ASIAL Director and widely respected industry figure Bob Bruce was recognized for his contribution to the industry. Bob was awarded Life Membership for his outstanding contribution to the growth and development of the Association. He joins a small but distinguished group of individuals who have been awarded life membership.Finally, our ability to achieve our aims relies on the support and dedication of many individuals. These include my fellow Board Directors, State Convenors, State Reference Group members and Special Interest Group Convenors, who give generously of their time and expertise. I would also like to acknowledge the efforts of the ASIAL Secretariat. I would like to thank everyone who has contributed to our success in 2012/13.Thank you also to you, our members, for your ongoing support.

Kevin McDonaldPresident, ASIAL

“As ASIAL has grown so too has our capacity to effectively represent the interests of the industry.”

Kevin McDonald, ASIAL President

SECRETARY’S report


Against a backdrop of a softening economy and changing regulatory environment (including the removal of the co-regulatory approach in NSW) the Association was able to post a stronger than expected result, recording a surplus of $117,301 for the year.

ASIAL’s strength continues to be its membership base. Membership subscription income rose slightly for the year. Other areas that performed well during the year included our cabling registry, monitoring centre certification, publications, strategic partnerships, interest and rental income.

Activities such as the annual industry awards for excellence, industry briefings, Security Insider, Centre for Compliance, Security Industry Leadership Program, Security Technician Certification program continue to provide a valuable service to members and highlight our commitment to providing professional development opportunities and resources for the industry.

Significant time and resources continue to be spent in conducting consumer awareness campaigns which promote the use of our members. A total of $103,260 was invested on consumer awareness initiatives to promote the use of ASIAL member companies, against the sum of $111,762 contributed through the member marketing fee. The balance will be used in consumer awareness campaigns to be conducted over the year ahead.

Total expenses were up on the previous year, reflecting the Association’s investment in key management personnel and on strategic projects to improve the level of service provided to members. These projects included an upgrade of the Association’s Information Technology and phone system. The migration of our internal IT platform to a “cloud-based” solution and the installation of Voice Over Internet Protocol phone system has helped deliver greater operational efficiencies and resilience. The Data Centre chosen to host the Association's IT system is located within Australia and is a premium enterprise grade facility with built in redundancy to maximise uptime.

Other initiatives included upgrades to the Association’s website and email communications platform.

Accumulated reserves rose to $2,818,585, providing a sound platform from which we can further build and improve the service offering provided to members.

Bryan de CairesChief Executive Officer & Secretary

5-year performance summary (2009-2013)


Membership is the lifeblood of ASIAL. Without a strong membership base we would not be able to effectively represent the interests of our members and the industry as a whole. Despite the NSW Government’s decision to abandon the co-regulatory approach in November 2012, the Association’s membership base has remained relatively stable. At the end of June 2013 there were 3,185 members, compared with 3,212 at the end of June 2012.

Of the 3,185 members at the end of June 2013 there were 2,818 Corporate, 221 Associate, 137 Individual, 4 Affiliate and 5 Life Members. It is encouraging that ASIAL’s status as the peak industry body is recognised by members as a key point of difference.

Introduced in 2011, the Association’s member recognition program continues to grow with 428 participating members. These include 14 Platinum (25 + years membership), 41 Gold Members (16-24 years), 252 Silver (11-15 years) and 121 Bronze (6-10 years) Members.

The Association’s long term success has been built on the back of strong ongoing relationships with its members and customers, and providing value for money. Our commitment to the delivery of service excellence through innovation and continuous improvement is reflected in the recently finalized customer charter. Member feedback is important in helping us to make ongoing improvements. Just as we are keen to hear about a job well done, we would also welcome members feedback on how we can improve the level of service we provide.

Over the course of the year, the Association’s efforts were focussed around four strategic priorities.

1. To promote a positive image of the security industry through an improved awareness of the vital contribution it makes to the Australian economy.

2. To promote the highest levels of professionalism within the industry through the development of industry Codes of Practice, industry certification programs and the development of professional development opportunities.

3. To provide strong advocacy for the industry by acting as a respected and unified voice for the industry in seeking to influence decision-makers on public policy issues at a local and national level.

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

Government Relations

The Association continues to maintain a focus on engagement and dialogue with government and regulators across the country, in doing so we have sought to highlight that the industry is part of the solution, not part of the problem.

Submissions lodged by the Association included:• South Australian Inquiry into Surveillance Devices• Draft Security Industry Amendment Bill 2012• Model Work Health and Safety Codes of Practice• Kings Cross Precinct Liquor Accord measures• QLD Office of Fair Trading ruling on interstate

Monitoring Centre Operators• QLD Office of Fair Trading Guidelines for Crowd

Controllers• Queensland Cameras in taxis program• New South Wales Smart and Skilled – Occupational

Skills Priority List• Security Services Industry Award 2010• Transport Industry Cash In Transit Award 2010• Proposed Long Service Leave Scheme in Tasmania

In September 2012, the Association was a major sponsor of the Security In Government 2012 event organized by the Federal Attorney General’s department and attended by senior government security executives.

During the course of the year we also briefed four intakes of police cadets at the South Australian Police force’s impressive new training facility in Taperoo, Adelaide. The briefings provided an opportunity for new police recruits to gain an understanding of the role and responsibilities of private security personnel. The feedback from the cadets has been very positive.

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(Left to right) Kevin McDonald, ASIAL President; The Hon Michael Gallacher, NSW Minister for Police; and Antony Elliott, ASIAL Director.

Entrance to the SA Police training centre in Taperoo


Media

We continue to be the ‘Go To’ organization for media agencies seeking a comment on security related issues. Whilst the past year has been quieter than previous years in terms of media issues relating to the security industry, we responded to a number of media requests and provided commentary on a range of issues.

Member Communication

The provision of relevant, timely and accurate information to members remains a key priority. A range of communication channels were used to keep members fully informed, including:

Website - ASIAL’s website attracts approximately 120,000 visitors per year and generates over 360,000 page views per year. A major upgrade and redevelopment of the site is currently underway to provide improved accessibility and functionality.

First Alert - the Association’s electronic newsletter, First Alert, has been improved and is now available in a mobile device friendly format.

Security Insider - now in its 20th year of publication, Security Insider magazine provides editorial features on a range of topical industry issues. In addition to the 3,300 people who receive the print edition of the magazine, 10,000 also receive the electronic edition.

Social Media - we have expanded our communication channels to now include social media, including LinkedIn and Twitter, approximately 1,000 people are now following us on LinkedIn.

Industry Events - during the course of the year events held in Adelaide, Brisbane, Canberra, Hobart, Sydney, Perth and Melbourne attracted approximately 1,500 participants. These events provided an opportunity to update members on important industry issues and an excellent opportunity to network.

The 3-day Security Industry Leadership Program held at the Macquarie Graduate School of Management in October 2012 and Melbourne Business School in February 2013 was once again extremely well received by participants.

The Security 2012 Exhibition and Conference continues to be the premier security industry event in the region showcasing new and emerging security technologies. The Security 2012 Conference program featured a distinguished line up of speakers that included the Attorney General The Hon Nicola Roxon.

Security 2012

The Hon Nicola Roxon, Federal Attorney General addresses the ASIAL Conference


Consumer awareness campaign 2012/2013

ASIAL took to the skies this year with an advertising campaign appearing in Qantas - The Australian Way magazine. Qantas carries over 2.3 million passengers per month and it is estimated that the magazine has a monthly readership of 430,000.

The adverts form part of our ongoing campaign to promote the ‘mark of distinction’ provided by using an ASIAL member which has already reached millions of consumers.

In addition to the print advertising, in June 2013 a 15 second commercial promoting the use of ASIAL member companies screened 3,900 times between 6.00am and 1.00pm on domestic flights across the country to an audience of over 600,000 passengers.

Editorial and advertising features also appeared in The Age newspaper.

Member benefits and services

We understand the importance of building strong foundations for a compliant and successful business. Accordingly, we have made it a priority to develop member benefits and services that provide practical and value for money business applications. The selection of resources available to members include:

• Member Bulletins providing access to up-to-date knowledge and information across a broad range of industry related sectors;

• Enhanced Alarm Monitoring Agreement featuring an electronic device friendly version and PDF writable version;

• IR advice and support; • Compliance and regulatory advice and support; • Access to an exclusive insurance facility through Aon; • Through Goldrick Farrell Mullan Lawyers, members

have access to a Law and Audit Service which includes a complimentary overview of any legal issue via phone or email, and if necessary, a referral to a relevant solicitor;

• Through CreditorWatch members can gain access to the credit files of Australian businesses at a special member discounted rate.

• Monitoring centre certification – for the past 20 years, ASIAL has operated a well respected certification scheme in accordance with Australian Standard AS2201.2: 2004. ASIAL certified monitoring centres are entitled to use the ‘ASIAL certified’ logo and are listed on the Association’s web site.

A range of new member benefits are currently under discussion and development.

Information technology

To enhance and improve the Association’s internal communications infrastructure, we migrated to a “cloud-based” solution and VOIP based phone system. The technology upgrades have enabled greater operational efficiencies and resilience.

Enhanced alarm monitoring agreement

ASIAL monitoring centre certification

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Recognising excellence

For the 18th year, ASIAL sponsored and organized the Australian Security Industry Awards for Excellence to provide an opportunity to recognize excellence within the security industry. The awards are open to member and non-members and are judged by an independent panel of experts.

2013 award winners included:

• Training: Chubb Electronic Security• Security Management: Suzette Po- Williams,

Central Monitoring Services Pty Ltd• Integrated Security Solution – (Projects over

$250,000): Blake Systems - City Hall Restoration Project - Brisbane

• Technical Security Solution – (Projects under $250,000): Macquarie University - Emergency Alert System

• Special Security Event or Project: 13CABS – Tiger team

• Special Security Event or Project: ACG Security • Individual Achievement – General: Chris

Lockwood, G4S Custodial Services Pty Ltd• Individual Achievement – Security Student of the

Year: Grant Frankel, Melbourne Racing Club

In addition, honorable mentions were given to SNP Security (Training) and Schneider Electric, Royal Melbourne Children’s Hospital (Integrated Security Solution –Projects over $250,000).

Strategic partners

We continue to forge strong relationships with our key strategic partners. Among these include AON, Australian Super, Diversified Exhibitions Australia and Goldrick Farrell Mullen.

Industrial Relations

It is a reality that the Industrial Relations landscape in Australia is in a constant state of change and 2012 has presented many new challenges for security businesses. To deal with these changes ASIAL has provided members with advice, assistance, representation and education on a range of industrial relations matters affecting their business.

Changes to the Fair Work Act 2009 have been communicated to members via First Alert, the ASIAL website and through Security Insider Magazine. Likewise, simplified guides to the Electrical Electronic and Communications Industry Award 2010, the Clerks Private Sector Award 2010, the Security Services Industry Award 2010 and many IR Bulletins and FAQs dealing with contemporary IR issues facing members were prepared and disseminated over the year.

ASIAL has been actively involved in the review of modern awards making submissions to the Fair Work Commission for variations to the Security Services Industry Award 2010 and the Transport Industry Cash In Transit Award 2010.

On behalf of the security industry we have teamed with the Fair Work Ombudsman on a Local Government Procurement initiative (initially targeting local government)

aimed at ensuring compliance and equity in the allocation of tenders for security contracts. While this initiative is in its early days, we are confident that the completion of guidelines for a model workplace relations management plan and model tender contract documentation will be a positive step towards ensuring compliance in security contracts with government agencies.

In 2012 the IR/HR and Cash in Transit Special Interest Groups met to discuss and make recommendations on issues facing the security industry nationally. To date the group has discussed a CIT Non Armoured Code of Practice and proposed award variations and suggested that ASIAL take action to deal with lowest price tender issues.

We have also made submissions and gained clarification on the application of part day public holidays, directing employees to reduce accrued leave entitlements, accrual of leave while on workers compensation and the determination of the base rate of pay when calculating annual leave.

In representing the industry in discussions with the Tasmanian Government, ASIAL has been successful in persuading it to reconsider the proposed Long Service Leave levy for the Security industry.

The Association has developed workshops to assist members in award and regulatory compliance and represented members in unfair dismissal, adverse action, discrimination and underpayment of wages claims with the Fair Work Commission and the Fair Work Ombudsman.

With the recent Annual Wage review ASIAL has been able to secure approval of all rates schedules through the FWO ensuring members have access to accurate rate schedules acceptable to the FWO.

We continue to identify issues affecting members and the industry and we will continue to represent the best interests of members and the industry to Government agencies regulators and industrial tribunals.

Security Industry House


Manpower

In the Manpower sector concerns were raised about legislative changes and interpretations (particularly relating to the amending legislation) which commenced in NSW on 1 November 2012 and in Queensland, with regards to changes to the crowd control definition and legislative interpretation of licensing requirements for monitoring centre operators based outside of Queensland, but who monitor client premises in Queensland.

The use of an Australian Business Number (ABN), permitted in Victoria and Queensland to allow individuals to offer themselves as security providers without the need to meet security business licensing and other business requirements is an area that continues to raise concerns. The concern is that some individuals using ABN’s do not hold adequate insurance and fail to meet statutory obligations such as work cover, taxation, work health and safety and realistic charge out rates. ASIAL has raised these issues as a legislative failure with the relevant regulators.

Another area where the Association has been active is in addressing issues relating to fingerprinting requirements for licences in a number of jurisdictions and the quality of training.

Electronics

In the electronics sector we have continued to engage with members and deliver value in the services and information we provide.

National Alarm Response Protocol - through engagement with the National Emergency Communications Working Group (made up of communications representatives from Emergency Service Organisations (ESOs) from across the country, police, fire and ambulance) we have sought to develop a national code for monitoring centres in their interaction with ESOs in the delivery of monitored alarm services, in particular alarm response.

The code aims to enhance consumer confidence and build a stronger partnership between monitoring centre operators and ESOs. This includes setting standards for business practices and service delivery, establishing a uniform and consistent national approach. A key driver is the reduction on ESOs time and resources in responding to non-genuine alarm activation’s.

AS2201 Review - there is general consensus of the need for a review of the AS2201 Intruder Alarm suite of standards is warranted to keep pace with changing technology.

National Broadband Network (NBN) rollout – we have engaged with the NBN Co to understand what the rollout means for the security industry and to highlight concerns about ongoing connectivity for legacy systems and new installations. There has been significant discussion and comment about concerns as to whether legacy security and medical alarms working on the NBN. ASIAL is an active participant working on two NBN working groups. It will be vitally important for the security industry to be informed about the NBN developments and ensure that they are communicating with their customers to maintain relationships and security system integrity.

Security Technician Certification (STC) - an ASIAL industry initiative launched in July 2012, the STC program provides professional recognition and an industry recognised career pathway for technicians working in the security industry. To date over 65 technicians have enrolled and successfully completed the course.

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ASIAL Cabling Registry

Like all of the Australian Communications and Media Authority’s (ACMA) accredited cabler Registrars, ASIAL has experienced relatively stable registration numbers over the past year, with registrations totalling 5,405 as at 30 June 2013 (compared with 5,476 in the previous year).

New Open registrations issued during the past financial year were just under four times the number of new Restricted registrations, while the need to upgrade skill levels and formal qualifications has resulted in continued upgrading from the lower licensing level to the higher.

ASIAL’s Open registrations currently outnumber its Restricted registrations by about over 4.5 to 1.

ACMA’s upgrade of cabler training requirements (now halfway through its transition period extending from 1 July 2012 to 30 June 2014) requires all cabling providers working on structured, optical fibre or co-axial cabling installations to attain the relevant formal advanced specialised competencies (registration endorsements) by the end of the transition.

Through its various communications channels ASIAL continues to work to ensure that every new and renewing registrant is aware and understands the upgrade requirements.

During the course of the past year, ASIAL has received a steady stream of telephone and email enquiries from registered cablers affected by the changed requirements and who are obligated to upgrade their registrations to include the relevant specialist competencies. ASIAL has been encouraged by the overwhelmingly positive nature of these enquiries, noting that nearly all have requested referrals to Registered Training Organisations. In general conversation, most enquirers expressed support for what they perceived was ACMA moving to raise the industry’s quality levels.

Although this positive response has not as yet translated itself into a widespread upgrading of qualifications, ASIAL anticipates the second year of the transition period will feature intensified activity in the cabling RTO sector.

ACMA continues to work with the Registrars and other interested parties toward the establishment of a cabling quality audit program. It has been proposed that audits will be undertaken on a pilot platform by contracted auditors recruited direct from the industry. The suggestion is that audits would be conducted on a carrot-rather-than-stick basis, with the auditor counselling the cabler in the event of identified non compliance, the emphasis being on fostering improved quality as opposed to simply penalising unsatisfactory work.

In addition to identifying cabling work that is non-compliant and/or otherwise deemed unsatisfactory, it is intended that the contracted audits will check a random sample of cablers to ensure they have acquired the relevant specialist competencies.

ACMA has indicated that the audits will be conducted with a random sample of registered cablers, who will be asked to notify a selection of upcoming scheduled jobs in order that the auditor can observe the work whilst it is underway and prior to closure of wall cavities. ACMA is awaiting a decision from the Commonwealth to underwrite the program as a pilot initiative, failing which the registrars’ management group would be asked to consider alternative sources of funding.


Through its website ASIAL has encouraged cablers to upskill by checking the legal work scope permitted by their qualifications against the range of cabling tasks they are undertaking. In the wake of this, there continues to be a steady number of registrants submitting evidence they have upgraded from Restricted to Open level competency.

Finally, as part of its ongoing commitment to improve the level of service it provides to cablers, the Association introduced an online application process for new cabling registrations and renewals.

Compliance and Regulatory Affairs

Over the past year, the Association has experienced a noticeable increase in requests from members for compliance and regulatory Affairs advice and support, particularly with regards to clarification and interpretation of legislation.

Of particular note has been the increase in requests for clarification on surveillance legislation and privacy issues surrounding the installation and use of CCTV equipment. Although privacy issues now take on a national flavour, surveillance legislation remains a State and Territory responsibility. ASIAL actively responds to legislative reviews.

The Queensland government’s legislative interpretation surrounding licensing requirements of interstate monitoring centres and monitoring centre personnel continues to generate uncertainty among monitoring centre operators across the country. Whilst the issue was referred to the Security Industry Regulators Forum for consideration, no firm date has been set as to when a decision will be made.

Ongoing dialogue and communication with regulators across Australian remains a key priority for the Association.

National harmonisation of security licensing remains an agenda item with Governments. With phase one of the harmonisation of manpower security licensing categories and training nearly complete, several governments are now focusing on phase two of the COAG initiatives with the review of the technical security sector. ASIAL continues to communicate with Government and Regulators to ensure that they are informed of industry concerns and to encourage sensible decisions and to reduce negative impact on security organisations.

Complaints

The number of formal complaints received against ASIAL members for the year was down compared with the previous year. A total of twenty (20) complaints were received and actioned this year, as against twenty-nine (29) in the previous year. One possible explanation for this reduction is that member organisations are dealing with complaints directly (as recommended) and achieving satisfactory outcomes, negating the need for a formal complaint being made to the association.

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Of the 20 complaints eleven (11) related to the electronic sector and nine (9) related to the manpower sector. Several electronic sector complaints dealt with the transferring of monitored lines between monitoring centres, namely difficulties experienced due to the failure in providing access codes to facilitate the transfer. It must be remembered that where a client owns the alarm panel and subject to contractual matters, they have a right to have their panel managed under their control although it is recognised that any technical service intervention required facilitating the transfer could attract a fee, which should be reasonable in the circumstances. The remaining electronic complaints related to cost, installation quality and compliance and professionalism.

Formal Complaints by State and Category

The manpower sector complaints primarily related to behaviour. The behaviour of the member organisation regarding staff management, involving correct payments of entitlements, workplace discrimination and business conduct. Several complaints related to inappropriate employee behaviour interacting with clients.

Disciplinary Committee

The Disciplinary Committee’s role is to investigate breaches of the ASIAL Professional Code of Conduct and to make recommendations to the Board. The Disciplinary Committee is comprised of:

• Damien Smith, independent legal representative• Damian Waters, ASIAL Board representative• Bryan de Caires, Chief Executive Officer, ASIAL • Peter Johnson, ASIAL Compliance and Regulatory

Affairs Advisor.

The Association has in place a range of sanctions that it can impose on a member, ranging from remedial action, financial sanctions or expulsion from the membership.

The Disciplinary Committee met twice during the year to discuss disciplinary matters involving the actions and behaviour of member companies. Among the actions taken by the Committee included the requirement of members to provide evidence that measures/training had been put in place to mitigate the risk of the identified behaviour occurring again in the future and in some instances undergoing a face-to-face audit conducted by the Association to confirm that appropriate measures have been implemented and communicated to employees.

During the course of the year 154 Members were expelled from the Association (down from 234 in 2012).

Kevin McDonaldDirectorCrows Nest, 21 August 2013.

Chris LuhrmannDirectorCrows Nest, 21 August 2013.

PRESIDENTKevin McDonald, Business Improvement Manager, ADT Security. Kevin has been involved in the security industry for over 30 years. His career started with Wormald Security and he has extensive experience in electronic security, sales, contracting, operations and monitoring. He has held sales, operational and general management positions in a number of nationally based security companies and is currently a Business Improvement Manager at ADT Security (Tyco Fire & Security) subsequent to the purchase of the Signature Security Group by Tyco Int. Kevin is a member of ASIAL’s National Electronic Security Special Interest Group. He has a Certificate IV in Security Risk Management, and a Diploma in Marketing Management.

VICE PRESIDENTChris Luhrmann, Founder and Principal of SIA Security. Chris has 24 years’ experience in Law Enforcement and the private security and investigation industries, serving with the New South Wales and Queensland Police Services. He has held positions as an investigator, intelligence analyst/officer, and officer in charge and team leader in both local and specialist squads. Chris has gained a wide range of skills, which include conducting security and surveillance operations both internationally and domestically.Since 1990, he has been involved in specialist weapons and tactical & VIP Protection teams and has trained police in firearms and operational skills and tactics. He is also a qualified electrical technician experienced in the use, installation and repair of security and electronic equipment. Chris is a member of the Australian Institute of Company Directors and has vocational training in Business Management.

Bryan de Caires, Chief Executive Officer & SecretaryBryan de Caires has over 23 years experience in senior management positions. His early career was as a senior editor with the leading global finance and business publisher based in London, Euromoney Publications Plc. In 1990 he moved to Australia to take up a position as General Manager with AIC (later renamed Terrapinn) - a business media company. In 1997 he was appointed Managing Director of the company’s exhibition business. Prior to joining ASIAL in 2000, he spent a year as National Manager, Professional Development with the Australian Human Resources Institute. He is a Director of NSW Crime Stoppers and a Member of the Australian Institute of Company Directors.

DIRECTORSRod Anderson, Rod is the principal of Standsure Security Consulting that provides Security and Training Consultancy services. Rod has over 36 years security and related experience, specifically in the areas of management, operations, training and business development. After a distinguished 20 year career in the Australian Regular Army, and prior to joining Advent Security in 2012, Rod progressed through a number of senior management positions within ISS Security including Regional General Manager of West Australia, and then later as the Regional General Manager of Queensland and the Northern Territory, General Manager Special Operations, National Business Manager and finally National General Manager Operations. He has extensive experience in the delivery of security and protection of Defence Bases, Aviation, Maritime and Critical Infrastructure. Rod has also served on a number of security industry review committees and has a number of tertiary qualifications in business, HR and security related disciplines and is a licensed security consultant and trainer in New South Wales.

Ged Byrnes, Director, Protection Pacific Security.Protection Pacific is a Melbourne based company which has been operating since 1992. The company provides security services including alarm installation, access control, CCTV, guards and patrols. The company also operates its own 24 hour control room. Ged can draw from a broad range of experience across all facets of the industry and offer an understanding of issues that affect ASIAL Members. He has worked in the security industry since 1980 and his experience includes all aspects of design, installation and monitoring of intruder detection systems and associated devices such as access control and CCTV systems. Ged is a member of the Institute of Security Management and Past Victorian Chairman of ASIAL, a position he held for seven years.He has an Associate Diploma of Security Management and Certificate of Security Management. He represented ASIAL on the National Executive Council from 1995 – 2002 and on the Victorian Police Security Liaison Group, Control Room Operators Group and Alarm Response Consultative Committee. He was re-elected to the National Executive Council in 2003 and elected as Vice President in 2004. Ged was elected to the position of President in 2006 and concluded his presidency in late 2012.

Antony Elliott, Managing Director, E & C Security Systems Pty Ltd. Antony was first appointed to the ASIAL National Executive in 1994. He held the position of New South Wales Branch Chairman for many years and was Individual Member Division Chairman. He was elected President in 2001 and remained in that position until 2006. He has served on the board as a director since standing down as President and is committed to assisting with the future direction of the Association.Antony played a crucial role in ensuring industry acceptance of the Cabling Provider Rules and has contributed to preserving the security industry’s interests in this area since. He is the Managing Director of E & C Security Systems Pty Ltd, an electronics based security company, where he has been involved with the general management of the company for over 25 years.


director

PROFILES

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

Neil McLean, Senior Business Development Manager, RAA Secure Services. Neil has worked within the security industry for more than 30 years starting in the manpower area with Wormald Security, and eventually moved into the electronics area. He has an extensive background in system design and providing meaningful cost effective security solutions to a broad range of industries with a strong service focus.Neil is currently the Senior Business Development Manager of RAA Secure Services Adelaide. RAA specializes in Installation, Servicing and Monitoring of Electronic Security Systems in the Domestic & Commercial sectors. The focus is increasingly within the personal protection area with Personal Emergency Monitoring, Lone Worker and custom solutions within the Retirement Village and Community Care sectors.Neil is also the ASIAL State Convenor for South Australia. Neil has seen the security industry grow to one that is highly professional and well regarded by both consumers and governments alike through his work as State Convenor.

Damian Waters, General Manager Security, Armaguard Group. Damian has experience in the law enforcement and security industries spanning 21 years and holds a Diploma of Security Risk Management. He has experience as a member of the Victoria Police and National Crime Authority and 10 years of experience in leadership roles in the private security industry. Currently, Damian is the General Manager Security for the Armaguard Group. Operating across more than 50 locations in Australia and New Zealand. Armaguard has, after more than 70 years of operations, become an iconic brand in Australia and the dominant player in the Australian and New Zealand cash logistics, currency management and precious cargo markets. Damian brings to the Board of ASIAL his extensive experience which enables him to understand the challenges faced by ASIAL members and to address these challenges with a fresh approach.

Tom Roche Managing Director, SNP Security and Leo Silver Director, Security Communications Solutions International (SCSI) both stood down from the Board prior to the 2012 elections.


ASIAL Board: Left to right – Mike McKinnon, Rod Anderson, Damian Waters, Antony Elliott, Kevin McDonald (President), Ged Byrnes, Neil McLean, Chris Luhrmann (Vice President).

16 ASIAL Annual & Financial Report 2013 ABN 91 000 813 365

FINANCIAL REPORT

Directors operating report

Your directors submit this operating report for the year ended 30 June 2013. The names of the company’s directors in office during the financial year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated. Their qualifications, experience and special responsibilities are set out on pages 14 and 15 of this Annual and Financial Report.

DirectorRod Anderson Ged ByrnesAntony Elliott Peter Johnson Chris Luhrmann* Mike McKinnonKevin McDonald Neil McLean*Thomas Roche* Leo Silver* Damian Waters* Following Board elections conducted by the Australian Electoral Commission in November 2012, Chris Luhrmann and Neil McLean were elected replacing Thomas Roche and Leo Silver who did not stand for re-election.

Key objectives of the AssociationFollowing its annual strategic planning session in February, the Board reconfirmed the Association’s key strategic priorities, these included:

• To promote a positive image of the industry through an improved awareness of the vital contribution the industry makes to the Australian economy.

• To promote the highest levels of professionalism within the industry through effective enforcement of the Association’s Code of Practice, industry certification programs and the development of professional development opportunities.

• To provide strong advocacy for the industry by acting as a respected and unified voice for the industry in seeking to influence decision-makers on public policy issues at a local and national level.

• Provide value to members regardless of their size and to ensure that membership continues to be viewed as a ‘mark of distinction’ valued by consumers.

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

• Advocacy for the industry through the lodgment of industry submissions in response to legislative reviews affecting the industry, whether relating to licensing, industrial relations or work, health and safety;

• Collaboration with agencies such as the Fair Work Ombudsman, NBN Co and National Emergency Communications Working Group to address issues that affect the industry;

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

• Provision of professional development opportunities, such as the annual conference, Security Industry leadership program and industry briefings;

• The development and ongoing management of industry certification programs, such as the monitoring centre certification and Security Technician Certification programs;

• Ongoing improvements to the Association’s IT systems to better serve the needs of members;

• A commitment to the continuous improvement of the Association’s online communications channels to ensure that they best serve the needs of members;

• The introduction of new member benefits and services with practical application to our members.

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

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

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

Number of recorded MembersThe number of Members recorded in the Register of Members of the Organisation as at 30 June 2013 for the purposes of section 254 (2) (f) of the RAO Schedule was 3,185.

ASIAL Annual & Financial Report 2013 17ABN 91 000 813 365



EmployeesThe company employed 13 employees as at 30 June 2013 (2012: 12 employees).

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

Details of Trustee of Superannuation EntitiesNo member of the Board was:

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

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

Operating Results for the Period and Review of OperationsThe Association earned a net profit for the year of $117,301 (2012: $250,171). The Association’s reserves rose to $2,818,585. The Association remains committed to its policy of reinvesting a significant proportion of prior year surpluses into maintaining and improving services to members, whilst using the balance to build sufficient reserves for when they are needed. Over the past year continued improvements have been made to the Association’s information technology and telephone systems, customer management database site and communications channels. Total revenue from ordinary activities was marginally up on the previous year.

Significant Changes in the State of AffairsSince gaining approval as a Registered Organisation of Employers, the Association has performed a growing role in the area of industrial relations. The removal of the co-regulatory approach in NSW (including the removal of the mandatory membership requirement from 1 November 2012) has to date only had a limited impact on the Association’s membership numbers. However, further attrition of members from NSW is expected over the coming year.

Significant Events after Balance DateNo significant events have taken place after the balance date.

Likely Developments and Expected ResultsDirectors have budgeted on a loss of $88,050 for the coming year, which includes a provision for further attrition of members in NSW as a result of the removal of the mandatory membership requirement. The Association’s consumer awareness campaign will continue through funding from the member marketing fee. The Association has in place a number of ongoing strategic partnerships which will support initiatives aimed at raising standards and compliance among members.

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

Proceedings on Behalf of the CompanyNo person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings.

Indemnification and Insurance of Directors and OfficersDuring the year, the company has paid a premium in respect of a contract insuring directors and officers against: (a) liability arising from wrongful acts committed in their capacity as directors and officers of the company, but excluding dishonesty, fraud, malicious conduct or wilful breach of duty; and (b) the costs of legal representation in relation to such liabilities. The premium paid was $11,133, which also includes cover for the company in respect of loss it suffers as a result of wrongful, wilful or fraudulent acts of its directors, officers and employees. This contract complies with Section 199B of the Corporations Act 2001.

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

Directors’ Emoluments and TransactionsNo emoluments have been received or are due and receivable by Directors from the company or any related body corporate.

The Association engaged E&C Security Systems Pty Ltd, a company controlled by a director, to maintain its security system.


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

Directors Attendance at Board meetingsRod Anderson 4 (4) Ged Byrnes 4 (4)Antony Elliott 4 (4) Chris Luhrmann 3 (3)Kevin McDonald 4 (4) Mike McKinnon 4 (4) Neil McLean 3 (3) Thomas Roche 0 (1)Leo Silver 1 (1) Damian Waters 2 (4)Attendance at National Reference Group meetingsRod Anderson 1 (1) Ged Byrnes 1 (1)Antony Elliott 1 (1) Peter Georgiou 0 (1)Peter Johnson 1 (1 Neville Kiely 1 (1)Chris Luhrmann 1 (1) Kevin McDonald 1 (1)Mike McKinnon 1 (1) Neil McLean 1 (1)Darryl Milling 1 (1) Thomas Roche 1 (1)Leo Silver 1 (1) Tania Tomuli 0 (1)Damian Waters 1 (1) Suzette Po-Williams 1 (1)Leo Silver 1 (1) Damian Waters 1 (1)

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

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

Kevin McDonaldDirector

Chris LuhrmannDirector

Crows Nest, 21 August 2013.



Directors declaration

Directors DeclarationIn accordance with a resolution of the directors of Australian Security Industry Association Limited, we state that:

(a) The financial statements and notes set out on pages 22 to 34 are in accordance with the Guidelines of the General Manager, Fair Work Australia and:

(i) comply with Accounting Standards and the Corporations Regulations 2001; and

(ii) give a true and fair view of the company’s financial performance, financial position and cash flow as at 30 June 2013 and of its performance for the year ended on that date;

(b) in the opinion of the directors there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

(c) during the financial period to which the General Purpose Financial Report relates and since the end of that year:

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

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

(iii) the financial records of the reporting unit have been kept and maintained in accordance with Fair Work (Registered Organisations) Act 2009 (the Act) and its related Regulations; and

(iv) No member of the Association or a Registrar has made a request for information under section 272 of the RAO Schedule; and

(v) there has been no order for inspection of financial records made by the Commission under section 273 of the RAO Schedule.

On behalf of the Board.

Kevin McDonaldDirectorCrows Nest, 21 August 2013.

Chris LuhrmannDirectorCrows Nest, 21 August 2013.

AUDITOR’S INDEPENDENCE DECLARATION

I declare, to the best of my knowledge and belief that during the year ended 30 June 2013 there have been:

(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

(ii) no contraventions of any applicable code of professional conduct in relation to the audit.

Foster RaffanChartered AccountantsLevel 6, 8 West StreetNorth Sydney NSW 2060

G.D. Wood, FCAPartnerNorth Sydney 21 August 2013


Independent audit report to members

Scope

We have audited the accompanying financial report of Australian Security Industry Association Limited (the company) which comprises the statement of financial position as at 30 June 2013 and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration.

Director’s Responsibility

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

Auditor’s Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

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

Independence

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

Audit Opinion

In our opinion the financial report of Australian Security Industry Association Limited :

(a) is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the company’s financial position as at 30 June 2013 and of its performance for the year ended on that date; and

(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and

(b) complies with the requirements of Part 3 of Chapter 8 of the Fair Work (Registered Organisations) Act 2009.

Foster Raffan Chartered Accountants

G.D. Wood, FCAPartnerNorth Sydney21 August 2013

Statement of comprehensive income


The accompanying notes form part of these financial statements

FOR THE YEAR ENDED 30 JUNE 2013

Note 2013 2012

$ $

Revenue- operating 2 2,376,787 2,369,716

- investment 2 114,748 119,832

Expenses directly related to operating activities (676,805) (695,348)

Employee benefits (1,150,236) (997,412)

Depreciation (44,420) (41,928)

Other expenses 3 (502,773) (504,690)

PROFIT BEFORE INCOME TAX 117,301 250,170

Income tax expense 4 - -

PROFIT FOR THE YEAR

Other comprehensive income

117,301

-

250,170

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR 15 117,301 250,170

Statement of comprehensive income Statement of financial position



AS AT 30 JUNE 2013

Note 2013 2012

$ $

CURRENT ASSETS

Cash and cash equivalents 5 1,940,986 1,765,291

Trade and other receivables 6 49,436 41,580

Other current assets 7 112,099 80,345

TOTAL CURRENT ASSETS 2,102,521 1,887,216

NON-CURRENT ASSETS

Financial assets 8 1,436 -Property, plant and equipment 9 2,401,954 2,422,345

TOTAL NON-CURRENT ASSETS 2,403,390 2,422,345

TOTAL ASSETS 4,505,911 4,309,561

CURRENT LIABILITIES

Trade and other payables 10 1,544,162 1,482,333

Provisions 11 64,860 62,152

Centre for Compliance fund 12 17,577 21,532

TOTAL CURRENT LIABILITIES 1,626,599 1,566,017

NON CURRENT LIABILITIES

Provisions 11 60,727 42,260

TOTAL LIABILITIES 1,687,326 1,608,277

NET ASSETS 2,818,585 2,701,284

EQUITY

Retained earnings 2,767,927 2,650,626

Reserve 9 50,658 50,658

TOTAL EQUITY 2,818,585 2,701,284

Statement of changes in equity




$

RETAINED EARNINGS AT 1 JULY 2011 2,400,456

Comprehensive income 250,170

RETAINED EARNINGS AT 30 JUNE 2012 2,650,626



Statement of cash flows


Note 2013 2012

$ $

CASH FLOW FROM OPERATING ACTIVITIES

Receipts from members and others 2,413,916 2,430,966

Payments to suppliers and employees (2,277,985) (2,199,589)

Interest & dividend received 2 61,960 70,066

Changes in fair value of shares 1,436 -

Net cash generated from operating activities 15 199,327 301,443

CASH FLOW FROM INVESTING ACTIVITIES

Financial asset at fair value 8 (1,436) -

Payment for property, plant & equipment (18,241) (10,674)

Net cash (used in) investing activities (19,677) (10,674)

CASH FLOW FROM FINANCING ACTIVITIES

Payment from Centre for Compliance Fund 12 (3,955) (9,170)

Net cash (used in) financing activities (3,955) (9,170)

NET INCREASE IN CASH HELD 175,695 281,599

Cash and cash equivalents at the beginning of the financial year 1,765,291 1,483,692

CASH AND CASH EQUIVALENTS AT THE END

OF THE FINANCIAL YEAR

5 1,940,986 1,765,291



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

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation

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

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

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

The financial statements were authorised for issue on 21 August, 2013 by the directors of the company.

Accounting Policies

(a) Revenue Recognition

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

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

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

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

(b) Development of New Services

Costs of developing new services are expensed as incurred.

(c) Income Tax

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

(d) Cash and Cash Equivalents

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

(e) Trade and Other Receivables

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

(f) Property, Plant and Equipment

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

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

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

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

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

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

Notes to the financial statements


$

RETAINED EARNINGS AT 1 JULY 2011 2,400,456





Statement of cash flows


Note 2013 2012

$ $

CASH FLOW FROM OPERATING ACTIVITIES

Receipts from members and others 2,413,916 2,430,966

Payments to suppliers and employees (2,277,985) (2,199,589)

Interest & dividend received 2 61,960 70,066

Changes in fair value of shares 1,436 -

Net cash generated from operating activities 15 199,327 301,443

CASH FLOW FROM INVESTING ACTIVITIES

Financial asset at fair value 8 (1,436) -

Payment for property, plant & equipment (18,241) (10,674)

Net cash (used in) investing activities (19,677) (10,674)

CASH FLOW FROM FINANCING ACTIVITIES

Payment from Centre for Compliance Fund 12 (3,955) (9,170)

Net cash (used in) financing activities (3,955) (9,170)

NET INCREASE IN CASH HELD 175,695 281,599

Cash and cash equivalents at the beginning of the financial year 1,765,291 1,483,692

CASH AND CASH EQUIVALENTS AT THE END

OF THE FINANCIAL YEAR

5 1,940,986 1,765,291




Depreciation

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

The depreciation rates used for each class of depreciable assets are:

Class of Fixed Asset Depreciation Rate

Buildings – straight line basis 2.5%

Office equipment – diminishing value basis 10% - 66.7%

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

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

(g) Leases

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

(h) Financial Instruments

Initial recognition and measurement

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

Classification and subsequent measurement

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

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

Financial assets at fair value through profit or loss

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

Loans and receivables

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

Held-to-maturity investments

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

Financial liabilities

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




Impairment

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

Derecognition

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

(i) Impairment of Assets

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

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

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

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

(j) Trade and other payables

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

(k) Employee Benefits

Provision is made for the company’s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may not satisfy vesting requirements. Those cash flows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows.

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

(l) Provisions

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

(m) Goods and Services Tax (GST)

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

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

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




(n) Comparative Figures Where required by Accounting Standards, comparative figures have been adjusted to conform to changes in

presentation for the current financial year.

(o) Critical Accounting Estimates and Judgments The directors evaluate estimates and judgments incorporated into the financial statements based on historical

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

Key Estimates Impairment The freehold land and buildings were independently valued at 21 May, 2012 by AON Valuation Services. The

valuation was based on the fair value less cost to sell. The critical assumptions adopted in determining the valuation included the location of the land and buildings, the current strong demand for land and buildings in the area and recent sales data for similar properties. The valuation resulted in a revaluation increment of $50,658 being recognised for the year ended 30 June, 2012 (note 9).

At 30 June, 2013, the directors reviewed the key assumptions made by the valuers at 30 June 2012. They have concluded that these assumptions remain materially unchanged, and are satisfied that carrying value does not exceed the recoverable amount of land and buildings at 30 June, 2013.

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

security industry.

2. REVENUE

2013 2012

$ $

Revenue from operating activities

Members’ subscriptions 1,543,841 1,530,788

Exhibition, conference and seminars 189,220 255,356

Member marketing fee 111,762 111,084

Cabling providers registrations 137,021 135,092

Magazine 88,028 117,040

Breakfast briefings 37,884 41,365

Grading, seminars and workshops 59,898 50,066

Insurance support 45,540 45,000

Special events 44,607 35,460

Consultancy 5,925 6,569

Strategic partnership 32,500 30,000

Technician certification 8,550 -Statutory compliance 53,083 -Miscellaneous income 18,928 11,896

Total revenue from operating activities 2,376,787 2,369,716

Revenue from investment activities

Rental income 51,352 49,766

Interest and dividend 61,960 70,066

Change in fair value of shares 1,436 -

Total revenue from non-operating activities 114,748 119,832

Total revenue from ordinary activities 2,491,535 2,489,548




3. OTHER EXPENSES

2013 2012

$ $

Auditor’s remuneration - audit 23,000 21,000

Auditor’s remuneration – other services 6,000 6,675

29,000 27,675

Public relations - government - 6,000

Industrial relations service 119,828 115,804

Legal 11,019 19,045

Meetings- members, directors and reference groups 43,743 52,697

Website 89,676 32,301

Computer support service 72,355 62,441

Loss on disposal of assets

Other445

136,707

502,773

1,642

187,085

504,690

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

5. CASH AND CASH EQUIVALENTS

Current Cash at bank and on hand 487,038 255,289

Short-term bank deposits 1,453,948 1,510,002

1,940,986 1,765,291

$13,610 (2012 $13,162) of the short-term bank deposits are bonds paid to the company by tenants.

6. TRADE AND OTHER RECEIVABLES

Current

Trade receivables 54,436 61,580

Less: provision for doubtful debts (5,000) (20,000)

49,436 41,580

Provision for doubtful debts as at 30 June 2012 20,000 20,000

Charge for year - -

Written off (15,000) -

Provision for doubtful debts as at 30 June 2013 5,000 20,000

Credit Risk – Trade Receivables There are no trade receivables in respect of subscriptions as they are invoiced only when received. The

company’s credit terms in respect of services and activities are 30 days. Overdue debts are pursued and monitored by management. They are assessed for impairment and provided for where specific circumstances indicate that the debt may not be paid in full to the company.

The company does not have any material credit risk exposure to any single receivable or group of receivables.




The following table details the company’s trade receivables exposed to credit risk (prior to collateral and other credit enhancements) with ageing analysis and impairment provided thereon.

The balances of receivables that remain within the initial trade terms (as detailed in the table) are considered to be of high credit quality.

Gross amount Past due and im-paired

Past due not im-paired

Not due not impaired

$ $ $ $

2013

<30 days 24,035 - - 24,035

31-60 days 12,365 4,759 7,606 -61-90 days 4,850 - 4,850 -

>90 days 13,186 241 12,945 -

54,436 5,000 25,401 24,035

2012

<30 days 32,574 - - 32,574

31-60 days 21,156 12,150 9,006 -

61-90 days 100 100 - -

>90 days 7,750 7,750 - -

61,580 20,000 9,006 32,574

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

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

7. OTHER ASSETS

2013 2012

$ $

Current

Prepayments 112,099 80,345

8. FINANCIAL ASSETS

Non-current Available for sale financial assets

- Investments in Australian listed shares 1,436 -

9. PROPERTY, PLANT & EQUIPMENT

Freehold land and building- at independent valuation 2,270,000 2,270,000

Less: accumulated depreciation (1,464) -

2,268,536 2,270,000

Office equipment, furniture and fittings- at cost 371,677 353,881

Less: accumulated depreciation (238,259) (201,536)

133,418 152,345

Total property, plant and equipment 2,401,954 2,422,345




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

Land and Building Office Equipment and Software

Total

$ $ $

2012

Balance at the beginning of the year 2,220,904 183,681 2,404,585

Additions at cost - 10,674 10,674

Disposals - (1,642) (1,642)

Revaluation increment 50,658 - 50,658

Depreciation (1,562) (40,368) (41,930)

Carrying amount at end of year 2,270,000 152,345 2,422,345

2013

Balance at the beginning of the year 2,270,000 152,345 2,422,345

Additions at cost - 24,524 24,524

Disposals - (495) (495)

Depreciation (1,464) (42,956) (44,420)

Carrying amount at end of year 2,268,536 133,418 2,401,954

10. TRADE AND OTHER PAYABLES

2013 2012

$ $

Current

Trade payables 192,266 123,478

Employee benefits (other than office holders) 30,021 30,762

Other current payables 73,433 83,607

295,720 237,847

Unearned income

Events income 105,470 78,977

Cablers registration 212,004 174,754

Membership subscriptions 930,968 986,119

Advertising - 4,636

1,248,442 1,244,486

1,544,162 1,482,333

Financial liabilities at amortised cost classified as trade and other payables

295,720 237,847

11. PROVISIONS

Current Provision for employee benefits 64,860 62,152

Non-current

Provision for employee benefits 60,727 42,260

Provision for employee benefits

Balance at 1 July 2012 104,412 106,451

Additional provision raised during the year 21,175 -Amounts used - (2,039)

Balance at 30 June 2013 125,587 104,412





12. CENTRE FOR COMPLIANCE

Note 2013 2012

$ $

Current

Movement in Centre for Compliance fund:

Balance at 1 July 2012 21,532 30,704

Less: expenditure (3,955) (9,172)

Balance at 30 June 2013 17,577 21,532

13. SHARE CAPITAL There are no issued shares. The company is limited by guarantee. The liability of each member in respect of

liabilities of the company is limited to $100.14. SEGMENT INFORMATION

Segment locations The Company operates in one business and geographical segment being a not-for-profit industry association

within the Security Industry throughout Australia.15. CASH FLOW INFORMATION

Reconciliation of the profit for the year with cash flow from operations:

Profit after tax 117,301 250,170

Non-cash items

Depreciation 38,187 41,930

Increase / (Decrease) in employee provisions 21,174 (2,039)

Increase / (Decrease) in doubtful debts (15,000) -

Loss on disposal of fixed assets 445 1,642

Changes in assets and liabilities

(Increase) / decrease in trade receivables 7,144 25,202

(Increase) / decrease in prepayments (31,754) (23,188)

Increase / (decrease) in payables 57,873 26,362

Increase / (decrease) in deferred income 3,957 (18,636)

Net cash flow from operating activities 199,327 301,443

16. RELATED PARTY TRANSACTIONS Any person(s) having authority and responsibility for planning, directing and controlling the activities of the

company, directly or indirectly, including any director (whether executive or otherwise) is considered key management personnel.

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

During the year a company controlled by a director, Antony Elliott, charged $2,975 (including GST) for maintaining the security system and the doors at the company’s premises.

17. FINANCIAL RISK MANAGEMENT The company’s financial instruments consist of deposits with banks and accounts receivable and payable. The carrying amounts for each category of financial instruments, measured in accordance with AASB 139 as

detailed in the accounting policies in Note 1, are as follows:

Financial Assets


Receivables 6 49,436 41,580

Total Financial Assets 1,990,422 1,806,871

Financial Liabilities

Financial liabilities at amortised cost:

Trade and other payables (excluding annual leave and deferred income) 10 295,720 237,847




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

a. Credit RiskExposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss for the company.The company’s material credit risk exposures are trade receivables and cash deposited with banks.The company’s exposure to credit risk arising from trade receivables is dealt with in Note 6. The company deposits cash only with government guaranteed Australian banks. Cash was with the following banks at the year end:

Note 2013 2012

$ $

ANZ 426,546 455,097

ING 211,117 523,382

Citibank - 243,375

Rabo Direct 309,599 295,742

CBA 250,665 247,695

Macquarie 251,428 -

Bankwest 246,631 -

ME Bank 245,000 -

5 1,940,986 1,765,291

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

Financial liability and financial asset maturity analysis

Within 1 year 1 to 5 years Over 5 years Total

Financial liabilities due for payment

2013 2012 2013 2012 2013 2012 2013 2012

$ $ $ $ $ $ $ $

Trade and other payables 282,110 224,684 13,610 13,162 - - 295,720 237,846

Total expected outflows 282,110 224,684 13,610 13,162 - - 295,720 237,846

Financial assets- cash flows realisable

Cash and cash equivalents 684,745 765,708 1,256,241 999,583 - - 1,940,986 1,765,291

Trade receivables 49,436 41,580 - - - - 49,436 41,580

Total anticipated inflows 734,181 807,288 1,256,241 999,583 - - 1,990,422 1,806,871

Net inflow on financial instruments

452,071 582,604 1,242,631 986,421 - - 1,694,702 1,569,025

c. Market Risk

Interest rate riskExposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting period whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments. At the year end all cash deposited as term deposits with Rabobank, CBA, ANZ, Macquarie and ME Bank (approximately 75% of cash on deposit) were at fixed interest rates and cash deposited with Rabobank, ING, ANZ and Bankwest were at variable rates (approximately 25% of cash on deposit).




SensitivityAnalysis

Note 2013 2012

$ $

A 2% variation in interest rates during the year would have affected profit before income tax for the year by 32,106 23,039

Net Fair Value Fairvalueestimation The fair values of financial assets and financial liabilities are considered to be equal to their carrying values

as presented in the statement of financial position.

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

objectives. Risk management policies are approved and reviewed by the Board on a regular basis. These include

credit risk policies and future cash flow requirements. The entity’s capital consists of retained earnings. A significant portion of the company’s net assets

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

Retained earnings 2,818,585 2,701,284


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

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

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

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

20. COMPANY DETAILS The registered office and principal place of business of the company is

41 Hume Street, Crows Nest NSW 2065.


1. For the purposes of ASIAL’s Code of Professional Conduct (the Code), Members shall include, as applicable, any of their employees and contractors.

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

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

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

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

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

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

8. ASIAL is to be informed when the Member’s attention has been drawn to any breach by that Member of the Code.

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

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

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

12. Members shall have in place procedures to deal appropriately and promptly with complaints about the provision of its services and actively engage in the resolution of complaints raised via ASIAL’s Dispute Resolution Policy and Procedure.

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

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

ASIAL CODE of Professional Conduct

Security Industry House, 41 Hume Street, Crows Nest, NSW 2065

Tel: 1300 127 425 Fax: 02-8425 4343, Email: [email protected] Web: www.asial.com.au Twitter: https://twitter.com/asial_au Linkedin: www.linkedin/company/asial

ANNUAL & Financial Report 2012

2013 ASIAL Annual & Financial report

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Transcript of 2013 ASIAL Annual & Financial report