31 March 2007 The Hon SM McHale MLA Minister for · PDF fileThe Hon SM McHale MLA Minister for...

31 March 2007 The Hon SM McHale MLA Minister for Consumer Protection 12th Floor Dumas House 2 Havelock Street WEST PERTH WA 6005 Dear Minister On behalf of the Board I hereby submit the Annual Report for the period ending 31 December 2006. The report, incorporating the Board’s annual financial statements, is submitted in accordance with Section 23B of the Painters’ Registration Act 1961 and Section 96 of the Freedom of Information Act 1992. The Audit has been prepared in accordance with Section 23A of the Painters’ Registration Act 1961. Yours sincerely

Mark Cuomo CHAIRMAN

Annual Report 2006 - 1 -

Table Of Contents THE REGISTRAR’S REPORT

4

THE BOARD 6 Functions and Powers 6 Area of Jurisdiction 6 Strategic Objectives 6 Board Establishment and Constitution 7 Meetings 8 Staffing

8

CORPORATE INFORMATION 8 Codes of Conduct and Ethics 8 Equal Employment Opportunity 8 Public Sector Standards for Human Resource Management 9 Corruption Prevention 9 Electoral Act 1907 9 Public Interest Disclosure Act 2003 9 State Records Act 2000 9 Disability Services 10 Language Services 10 Youth Outcomes 10 Occupational Health and Safety 10 Recycling 11 Freedom of Information

11

REGISTRATIONS 13 The Register of Painters 13 Applications for Registration 14 Review of a Board Decision

14

COMPLIANCE 14 Complaints 15 Orders made by the Board 15 Investigations 16 Prosecutions 16 Referrals to the State Administrative Tribunal 16 Inspections 17 General Enquiries

17

EDUCATION AND AWARENESS 17 Advertising 18 Publications 18 Seminars/Forums 18 Exhibitions 18 Sponsorships and Awards 18 Re-accreditation of the Certificate IV of Painters’ Registration 18 Staff Training 18 Website 19


FINANCIAL REPORT

20

APPENDICES A: Audited Financial Report: Financial Statement B: Organisational Structure C: Information Statement: Freedom of Information Index D: Prosecutions


TTHHEE RREEGGIISSTTRRAARR’’SS RREEPPOORRTT In 2006 the Board continued to provide a high standard of service to the community, receiving 271 applications for registration, 1960 general enquiries, 112 complaints about painting work, and 138 allegations of breaches of the Painters’ Registration Act 1961(PR Act). The Board also initiated 14 prosecutions for offences against the PR Act and issued 16 orders for unsatisfactory painting work. Review of the Painters’ Registration Act 1961 The Department of Consumer and Employment Protection released an Issues Paper on the PR Act as part of its General Review of Building Legislation, to which the Board made a submission. The objective of the review is to analyse the extent to which existing legislation meets the needs of the painting industry and painting practitioners while providing an appropriate level of consumer protection. Review of the Certificate IV of Painters Registration The Certificate IV of Painters Registration, the Board’s prescribed course, expired on 31 December 2006. A new `Skills Set’ has been developed by the Department of Education and Training in consultation with a Project Reference Group. The redeveloped course has been submitted to the Training Accreditation council for delivery in 2007. Website The Board launched its revised website, www.painters.wa.gov.au, in December 2006. The new design and menu provide consumers, applicants and registered painters with access to a wider range of information and online services that meet the standards and guidelines established by e-government. New Chairperson In June 2006, the Minister of Consumer Protection appointed Mr Mark Cuomo as the new Chairperson of the Board. The former Chairperson, Mr Paul Marsh, contributed 14 years of invaluable service to the Board. Future of the Board The proposal to amalgamate the Board’s functions and staff into the Department of Consumer and Employment Protection (DOCEP) is being considered by the Minister.


http://www.painters.wa.gov.au/

Challenges Ahead With continuing high levels of painting activity, the Board will maintain its vigilance in monitoring compliance with the PR Act and will aim to increase community awareness of its role and functions, particularly with respect to its dispute resolution service.

N Lilley REGISTRAR AND PRINCIPAL OFFICER


TTHHEE BBOOAARRDD FUNCTIONS AND POWERS FOI/2 The Board is established under the Painters’ Registration Act 1961 (PR Act). The Board’s statutory functions are to: FOI/5

provide for the registration of painters in the area specified within the PR Act and the Painters Registration Board Rules 1962;

maintain a register of painters; prescribe the course of training and examinations for painters; ensure adequate supervision of painting; receive complaints against painters in relation to work that is not carried out in

a proper and workmanlike manner, and take action pursuant to the PR Act; provide the means with which to prosecute persons who do not comply with

the requirements of the PR Act, or any lawful direction of the Board; and receive fees and penalties from painters and apply them to the payment of the

remuneration and costs of carrying out the provisions of the PR Act. AREA OF JURISDICTION FOI/3 The Board’s area of jurisdiction encompasses the metropolitan region and most of the South West Land Division of the State, with the exception of the Shires of Mukinbudin, Mt Marshall and Narembeen. The South West Land Division extends from the Kalbarri area on the West Coast, and through the Hopetoun region on the South Coast. In addition, the Board’s area includes specified townsites within the Shires of Coolgardie, Dundas, Esperance, Yilgarn, Laverton, Ravensthorpe and the City of Kalgoorlie/Boulder. STRATEGIC OBJECTIVES FOI/2 The Board’s strategic objectives are to ensure that:

the PR Act is administered in a consistent, reasoned and lawful manner; the PR Act is administered in a financially responsible manner; and Board investigations and prosecutions for offences against the PR Act are

conducted in an efficient and consistent manner.


BOARD ESTABLISHMENT AND CONSTITUTION FOI/6 Section 7 of the PR Act provides the Board shall consist of 5 members appointed by the Governor of Western Australia, of which the Chairperson is a legal practitioner. Members of the Board are nominated by the Minister and in 2006 were as follows:

BOARD MEMBERS

Mark Cuomo (Chairperson) Appointed under Section 7(1)(a) of the PR Act. Appointed in June 2006, current term expires in May 2008.

Jim Gatt (Deputy Chairperson and Member) Appointed under Section 7(1)(c) of the PR Act. Nominated by the WA Chamber of Commerce and Industry. Appointed in January 1980, current term expires in March 2008. Deputy: Trevor Lovelle

Terry Parsons (Member) Appointed under Section 7(1)(b) of the PR Act. Nominated by the Master Painters, Decorators and Signwriters’ Association of Western Australia. Appointed in October 2003, current term expires in March 2008. Deputy: Jack Mast

Fred Smith (Member) Appointed under Section 7(1)(d) of the PR Act. Nominated by the Operative Painters’ and Decorators’ Union of Australia (WA). Appointed in March 1997, current term expires in December 2007. Deputy: Kevin Reynolds

Angela Massie (Member) Appointed under Section 7(1)(e) of the PR Act to represent the interests of consumers. Appointed in April 2006, current term expires in March 2007. Deputy: Lorraine Young


MEETINGS Rule 4 of the Painters’ Registration Board Rules 1962 requires members to formally meet at least once a month. During the reporting year, the Board met on 13 occasions. Attendance was as follows:

No. of meetings

Attended as Deputy

Mark Cuomo 6 Paul Marsh (retired) 4 Jim Gatt 10 Angela Massie 11 1 Fred Smith 11 Terry Parsons 12

STAFFING FOI/4 Section 9 of the PR Act provides that the Board shall appoint a Registrar who shall be the Registrar of the Builders’ Registration Board (the BRB) and may appoint other officers as it considers necessary to carry out the provisions of the PR Act. As at 31 December 2006, the Board had 4 permanent full-time staff, comprising a Senior Painting Inspector, 2 Painting Inspectors and a Compliance Officer. Other staffing needs are met by employees of the BRB, who spend a part of their time on Painters’ Registration Board duties. The Organisational Chart is at Appendix B.

CCOORRPPOORRAATTEE IINNFFOORRMMAATTIIOONN CODES OF CONDUCT AND ETHICS In line with the Public Sector Management Act 1994 the Board and its staff observe the West Australian Public Sector Code of Ethics, which sets out the values and behaviour expected of individuals. Board members also observe their own Code of Conduct and a separate Code has been devised for Board staff, to more clearly relate the broad principles and values outlined in the Code of Ethics to the everyday behaviour of Board staff. EQUAL EMPLOYMENT OPPORTUNITY The Board is committed to the promotion of equal employment opportunities (EEO) for all employees, provides staff development opportunities, maintains staff awareness, and provides general information on EEO principles as part of its staff induction program.


PUBLIC SECTOR STANDARDS FOR HUMAN RESOURCE MANAGEMENT The Board complies with the Public Sector Standards in Human Resource Management and reports that in 2006 it did not carry out any processes in relation to the Standards for Recruitment, Selection and Appointment, and Performance Management. There were also no processes carried out in relation to the other Standards for Transfer, Secondment, Redeployment, Termination, Discipline, Temporary Deployment and Grievance Resolution. CORRUPTION PREVENTION To prevent corruption and misconduct, the Board undertook the following measures during the reporting period:

maintaining the Board Members’ and Staff Code of Conduct; maintaining a gifts and benefits register; and contracting an IT System Support Company to manage computer security.

ELECTORAL ACT 1907 The Electoral Act 1907 regulates Parliamentary elections and requires all public agencies to report on its expenditure in relation to:

advertising agencies market research organisations polling organisations direct mail organisations media organisations

In accordance with section 175ZE of the Electoral Act 1907, the Board reports that it did not incur such expenditure in 2006. PUBLIC INTEREST DISCLOSURE ACT 2003 The disclosure of public interest information is facilitated by the Public Interest Disclosure Act 2003. The Board has met all requirements under the Act and reports that no disclosures were received in 2006. STATE RECORDS ACT 2000 The Board’s recordkeeping plan was approved for a period of five years by the State Records Commission on 22 April 2004. State Records Commission Standard 2, Principle 6 - Compliance, requires the Board to include in its Annual Report an appropriate section that addresses compliance with the approved recordkeeping plan.


The Board reports that its recordkeeping plan has been established and forms part of the induction for new staff. A Records Co-ordinator has been seconded from DOCEP to review and make recommendations on the Board’s corporate recordkeeping systems. The Records Co-ordinator has been seconded for a period of 12 months. The Board will evaluate the efficiency and effectiveness of its recordkeeping system not less than once every five years, and its recordkeeping training program from time to time. DISABILITY SERVICES The Board continues to work within the constraints of the present accommodation at 18 Harvest Terrace, West Perth. A reception area is located on the ground floor, and temporary parking can be provided directly in front of the building to enable wheelchair access. The Board’s website is compliant with the Web Content Accessibility Guidelines from the Web Accessibility Initiative (WAI) of the World Wide Web consortium (W3C). The objective is to reduce barriers faced by disabled user groups and to help people find information quickly. Pamphlets and other written material are provided upon request. LANGUAGE SERVICES The Board provides translating and interpreting services for customers who require assistance, through the Department of Immigration and Ethnic Affairs. YOUTH OUTCOMES Government agencies that are subject to the Public Sector Management Act 1994 are required to report against outcomes of programs and policies specifically targeting young people aged 12 to 25 years. During 2006, the Board has not undertaken any activities specifically targeting youth. OCCUPATIONAL HEALTH AND SAFETY The Western Australian Occupational Safety and Health Act 1984 describes the duties, functions and responsibilities of all people who play some part in the occupational safety and health of people at the workplace. The Act is supported by the Occupational Safety and Health Regulations 1996. The Board and its staff continued to maintain a safe working environment during 2006. The Board has one elected Occupational Health and Safety Officer, who has attended the appropriate course of training.


RECYCLING The Board actively encourages all staff to recycle paper and other material. Paper collection bins have been strategically located throughout the building. A local contractor from the City of Perth provides a free service for most of the organisation’s recycling needs. FREEDOM OF INFORMATION FOI/1 In 2006 the Board complied with the Freedom of Information Act 1992 (FOI Act). Persons seeking information held by the Board were provided with guidance regarding the application process. Board staff ensure that information is provided promptly and at the least possible cost to all persons so entitled. Those seeking information that is not routinely available are advised of the provisions of the FOI Act, the application process, and all associated costs. Applications are acknowledged in writing and the parties are notified of a decision within 45 days. A FOI information index is attached at Appendix B. Applications and enquiries are directed to:

The Senior Legal Officer Painters' Registration Board Suite 10, 18 Harvest Terrace WEST PERTH WA 6005 Tel: (08) 9476 1212; Fax (08) 9476 1276

Charges FOI/7a The Board’s scale of fees and charges for eligible information is set under the FOI Regulations. Apart from the application fee for non-personal information, charges are discretionary and are as follows:

Personal information about the applicant No fee Application fee (for non-personal information) $30.00 Charge for time dealing with the application (hour/pro rata) $30.00 Access time supervised by staff (per hour, or pro rata) $30.00 Photocopying staff time (per hour, or pro rata) $30.00 Per photocopy $ .20 Transcribing from tape, film or computer Actual Cost Duplicating a tape, film or computer information Actual Cost Delivery, packaging and postage Actual Cost

Note: The amount payable is reduced by 25% for financially disadvantaged applicants or those holding a prescribed pensioner concession card.


Deposits Advance deposits may be required based on the estimated charges (25% of cost) and further advance deposit may be required to meet the charges for dealing with the application (75% of cost). Access Arrangements FOI/8 Access to documents is granted through inspection, by providing a copy of a document, an audio or video tape, computer disk, transcript of a recorded hearing, shorthand or an encoded document from which words can be reproduced. Where the tape is of a hearing or investigation, a transcription only is provided. Viewing Documents Documents are available to be viewed at the Board's office during business hours, with a fee charged for the supervised viewing of non-personal documents. Notice of Decision FOI/7a As soon as possible, but no later than 45 days after the application is received, the applicant is provided with a notice of decision, which includes the following details:

the date when the decision was made; the name and position of the officer who made the decision; if the document was an exempt document, the reasons for classifying the

matter exempt; or the fact that access was given to an edited document; and information on the right to review, and the procedures to be followed.

Refusal of Access Applicants who are dissatisfied with a decision of the Board’s officer are entitled to seek an internal review by the Registrar. Applications have to be received in writing within 30 days of receiving the notice of decision. All applicants are notified of the outcome of the review within 15 days. Applicants who disagree with the result can also apply to the Information Commissioner for an external review, the details of which will be provided to applicants when the internal review decision is issued. Freedom of Information Applications Received in 2006 There were no FOI applications received during the reporting period.


Client Information FOI/7a The Board has a number of publications that can be accessed. These include:

the Board’s newsletters ‘Painting WA’ brochure titled `Protecting Consumers and Painting Professionals’ prescribed forms used to apply for:

o registration o lodging complaints o FOI requests

Information can be accessed on the Board’s website at www.painters.wa.gov.au. This includes the Register of Painters, how to become a registered painter, lodging a complaint, reasons for Board decisions, a painters obligation under the PR Act and downloadable forms and publications.

RREEGGIISSTTRRAATTIIOONNSS THE REGISTER OF PAINTERS FOI/7a Section 10 of the PR Act requires the Board to compile and keep a register of painters containing the names, addresses and qualifications of painters admitted to the register. The register is open for inspection by any person without fee during the Board’s ordinary hours of business, is available for purchase in a printed format, and is available for downloading on the Board’s website. The site also enables anyone to conduct a search of registered painters by name, registration number or location. At 31 December 2006 there were 2951 painters registered with the Board, comprising 2286 individuals, 470 partnerships and 195 companies. Registration for partnerships has decreased from last reporting year while those in the individual and company categories have increased. A comparison of the previous four years is provided in the following table.

Registered Painters

2002 2003 2004 2005 2006 Individual 2082 2127 2173 2267 2286 Partnership 450 524 518 496 470 Company 154 173 186 191 195 Total 2686 2824 2877 2954 2951



APPLICATIONS FOR REGISTRATION In 2006 the Board received 271 applications for registration. Of those, 170 were approved, 40 were refused and 3 were withdrawn. As at 31 December 2006 there were 58 applications pending. During the reporting period, the Board approved 137 individuals, 19 partnerships and 14 companies. A comparison of approved registrations since 2002 by business entity is shown in the following chart.

Registrations Approved in 2006

020406080

100120140160180

2002 2003 2004 2005 2006

Year

Num

ber o

f App

rova

ls

Individual Partnership Company

REVIEW OF A BOARD DECISION

Until January 2005, a person who was aggrieved by a Board order or a decision of the Board to refuse, cancel or suspend their registration, or refuse re-registration, could appeal to the Local Court. Since 1 January 2005, persons may apply to the State Administrative Tribunal for a review of the decision under section 18(1) of the PR Act. There were no applications made to the State Administrative Tribunal during the reporting period.

CCOOMMPPLLIIAANNCCEE The Board maintains an active compliance role by conducting investigations into painters, referring matters to the State Administrative Tribunal for disciplinary action and issuing orders to remedy or pay for unsatisfactory painting work. In addition the Registrar may also initiate prosecution action through the courts in accordance with the PR Act.


COMPLAINTS In 2006 the Board received 112 complaints about unsatisfactory painting work. This represents an increase of 67% from the previous reporting year, attributable to the high level of activity in the painting industry. Of these complaints, 23 were referred to a Board hearing for determination and the remainder were resolved between the parties.

Complaints about Unsatisfactory PaintingWork

112

ORDERS MADE BY THE BOARD Section 16D of the PR Act provides that where the Board is satisfied that any painting has not been carried out in a proper and workmanlike manner on any building or other structure, the Board may order the painter to either remedy the work or pay the owner of the building such costs of having the work remedied by someone else. A breakdown of the orders made from 2003 to 2006 is provided in the following table.

Number of orders made by the Board

2003 2004 2005 2006 Orders to Remedy 1 2 1 1 Orders to Pay 16 10 15 15* TOTAL 17 12 16 16

* Made against 11 unregistered and 4 registered painters. In 2006 the Board issued 15 “Orders to Pay” against painters, to pay the owners for the costs of rectification, and one “Order to Remedy” to rectify unsatisfactory painting work. The following table below shows the total value of the Orders to Pay during the last four years.

Total Value of Orders to Pay made by the Board

2003 2004 2005 2006 $31,589 $47,056 $60,812 $36,410

8397

100 120

6780604020

02003 2004 2005 2006

Year

Number of Complaints


Prior to making an order, the Board must give the painter notice of the allegations and afford an opportunity to respond at a hearing. In 2006 the Board held 23 such hearings. INVESTIGATIONS In 2006 the Board investigated 138 allegations of breaches against the PR Act. Of these investigations, 37 are pending while 10 were prosecuted pursuant to section 4(1) of the PR Act. No further action is being taken against the remaining 91 for reasons such as:

- No breach detected - Unable to locate defendant - Charges withdrawn - Insufficient evidence

Investigations undertaken

Number Nature*

131 Section 4(1) Unregistered painting 5 Section 4A Assuming the title of registered painter 2 Section 25 Transferring/Assigning registration (licence lending)

* Breach of Painters’ Registration Act 1961 At 31 December 2006, there are 6 investigations in progress and 14 matters awaiting investigation.

Investigations in progress / awaiting investigation

Number Nature*

14 Section 4(1) Unregistered painting * Breach of Painters’ Registration Act 1961 PROSECUTIONS FOI/7a The Board commenced 10 prosecutions pursuant to section 4(1) of the PR Act in 2006 for unregistered painting, details of which are provided in Appendix D. REFERRALS TO THE STATE ADMINISTRATIVE TRIBUNAL Under section 16(1) of the PR Act, the Board may allege to the SAT that disciplinary action should be taken against a registered painter for a reason described in subsection (2), being:

the registration was obtained by fraud or misrepresentation; the painter has been guilty of fraudulent conduct, negligence or

incompetence in carrying out painting; the painter has been convicted of an offence against section 16G;


the painter, being a partnership or company or other body corporate, has failed to comply with any provision of section 14B; or

the painter, being a partnership, company or other body corporate, has ceased to have at least one partner, director or employee whose duty is to manage or supervise painting work carried out by the entity registered under the P R Act.

In 2006 the Board referred two matters (table shown below) to the SAT pursuant to section 16(1) of the PR Act.

Matters referred to SAT under section 16(1) of the Painters’ Registration Act

Name Allegation Outcome Smith, Jeffrey Wayne & Pauline Linda

Section 16(1)(e) No nominated supervisor

Registration reinstated

Hoskins Investments Pty Ltd

Section 16(1)(e) No nominated supervisor

Registration cancelled

INSPECTIONS The Board monitors industry compliance with the PR Act by conducting random site inspections of painting work. In 2006 the Board undertook 2132 proactive painting inspections. These random inspections promote awareness of the regulatory framework as well as detecting illegal painting activity. GENERAL ENQUIRIES In 2006 the Board received 1960 general telephone enquiries from both painters and consumers regarding workmanship issues or the PR Act.

EEDDUUCCAATTIIOONN AANNDD AAWWAARREENNEESSSS In 2006 the Board continued to promote community awareness of the PR Act and the role of the Board by advertising, media releases, participating at trade shows and consumer expos, providing guest speakers for industry meetings, and speaking to students undertaking the Certificate IV of Painters’ Registration at TAFE. Key activities undertaken by the Board in 2006:

Advertising • Advertisements informing consumers that painting work over $200 must be

carried out by a registered painter were placed in ‘Have a Go News’, the ‘Regional Lifestyle’ magazine and the West Australian.


Publications • The Board’s newsletter was published twice to inform painters and

stakeholders of the Board’s activities. • A brochure, ‘Protecting Consumers and Painting Professionals’ was

reviewed and distributed at consumer and industry exhibitions. • The Board contributed articles for `The Starting Point’ magazine and

`Brushstrokes’’, the Master Painters’ Association newsletter.

Seminars/Forums • Board staff gave presentations to TAFE students studying the Certificate IV of

Painters’ Registration on how to become a registered painter and the requirements of the PR Act.

• Board staff conducted a seminar in Margaret River for painters on the Board’s functions and the requirements of the PR Act.

Exhibitions • The Board participated in the following industry and consumer exhibitions:

o Dulux Painters Expo o Ideal Home Show o MBA Homestyle Show o Spring Home Show o Radio West Ideal Home Show (Bunbury)

Sponsorships and Awards • The Board sponsored the 2006 Master Painters Association Awards for

Excellence.

RE-ACCREDITATION OF THE CERTIFICATE IV OF PAINTERS’ REGISTRATION The Board’s prescribed course, Certificate IV of Painters’ Registration, expired on 31 December 2006. To satisfy the requirements of the Australian Qualifications Framework, a new skills set was developed by the Department of Education and Training in consultation with representatives from the Housing Industry Association, TAFE, the Master Painters Association, the Painters’ Registration Board and the Department of Education and Training. The redeveloped Painters’ Registration Course will be available for delivery from the beginning of 2007. STAFF TRAINING In 2006 emphasis was placed on safety awareness training and included staff attending a Worksafe Forum and an occupational health and safety course. Staff also attended training on how to deal with difficult clients.


WEBSITE The Board’s revised website, www.painters.wa.gov.au, was launched in December 2006 by the Minister for Consumer Protection. The website was designed to meet the needs of consumers, applicants and painters and developed to meet the standards and guidelines established by e-government. A new design and menu provide the community with access to a wider range of information including;

• a search of the Register of Painters, • how to apply for painters’ registration, • obligations under the PR Act, and • how to lodge a complaint • access to reasons for decision

The website also provides users with the option to pay fees online and download forms and publications.



FFIINNAANNCCIIAALL RREEPPOORRTT Financial Statements Section 23A of the PR Act requires that the accounts and financial statements of the Board shall be audited at the expense of the Board by an auditor appointed by the Board with prior approval of the Minister. Rix Levy Fowler was appointed and approved to audit the 2006 accounts. Section 23B of the PR Act requires that the Board shall, on or before 31 March in each reporting year, make and submit to the Minister an annual report of its proceedings for the preceding year ending on December 31, together with a copy of the financial statements and the auditors report. Board Statement on its Finances In 2006 the Board reviewed the level of registration and other fees as part of its budget process and sought the Minister’s approval for increases. As a consequence, increases in fees were implemented from 1 July 2006. The financial outcome for 2006 is an operating deficit of $3,888.

M Cuomo CHAIRMAN

N Lilley REGISTRAR


Appendix A

AUDITED FINANCIAL REPORT FOR THE PERIOD ENDED

31 DECEMBER 2006


INDEX OF FINANCIAL REPORT

For the Year Ended 31 December 2006

Page

1 Statement by the Registrar 23

2 Independent Audit Report 24

3 Income Statement 25

4 Balance Sheet 27

5 Cash Flow Statement 28

6 Notes to, and forming part of, the Financial Report 29


PAINTERS’ REGISTRATION BOARD

STATEMENT BY REGISTRAR FOR THE PERIOD 1 JANUARY 2006 TO 31 DECEMBER 2006

In the opinion of the Registrar of the Board the financial report as set out on pages 25 to 33: 1. Presents fairly the financial position of the Painters’ Registration Board as at 31

December 2006 and its performance for the 12 month period ended on that date in accordance with the accounting policies described in Note 1 to the Financial Statements.

2. The report has been properly prepared by a competent person.

3. a) The Board has kept such accounting records as to correctly record and explain the transactions and financial position of the Board.

b) The Board has kept its accounting records in such a manner as would enable true and fair accounts of the Board to be prepared from time to time.

At the date of this statement, there are reasonable grounds to believe that the Board can meet its debts as and when they fall due.

N Lilley REGISTRAR

Dated this 23rd day of March 2007.



INDEPENDENT AUDIT REPORT

TO THE MINISTER FOR CONSUMER PROTECTION FOR THE PERIOD 1 JANUARY 2006 TO 31 DECEMBER 2006

Scope

We have audited the financial report, being a special purpose financial report comprising the Income Statement, Balance Sheet and Statement of Cash Flows, and notes to and forming part of the Financial Statements of the Painters’ Registration Board for the financial year ended 31 December 2006. The Members of the Board are responsible for the financial report and have determined that the accounting policies used and described in Note 1 to the financial statements which form part of the financial report are appropriate to meet the requirements of section 23(1) of the Painters’ Registration Act 1961 (as amended). We have conducted an independent audit of this financial report in order to express an opinion on it to the Minister. No opinion is expressed as to whether the accounting policies used are appropriate to the needs of the Members. The financial report has been prepared for the purpose of fulfilling the requirements Painters’ Registration Act 1961 (as amended). We disclaim any assumption of responsibility for any reliance on this report or on the financial report to which it relates to any person other than the members, or for any purpose other than that for which it was prepared. Our audit has been conducted in accordance with Australian Auditing Standards. Our procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial report and the evaluation of significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial report is presented fairly in accordance with the accounting policies described in Note 1 so as to present a view which is consistent with our understanding of the Board’s financial position, and performance as represented by the results of its operations and its cash flows. These policies do not require the application of all Accounting Standards and other mandatory professional reporting requirements in Australia. The audit opinion expressed in this report has been formed on the above basis. Audit Opinion

In our opinion the financial report presents fairly in accordance with the requirements of section 23(1) of the Painters’ Registration Act 1961 (as amended) and the accounting policies described in Note 1 to the financial statements, the financial position of Painters’ Registration Board as at 31 December 2006 and the results of its operations for the year then ended. Rix Levy Fowler Ranko Matic CHARTERED BUSINESS ADVISORS PARTNER DATED at PERTH this 23rd day of March 2007

PAINTERS' REGISTRATION BOARD

INCOME STATEMENT

FOR THE PERIOD 1 JANUARY 2006 TO 31 DECEMBER 2006

Notes 2006 2005 $ $ Income Annual registration fees 553,590 468,464 Application fees 26,350 21,275 Certificate fees 1,320 2,020 Interest on investments 49,193 43,488 Publication and photocopy sales

0 10

Prosecutions recoveries 6,809 14,190 Other income 1,047 1,265 ------------------- ------------------- Total Income 638,309 550,712 ------------------- ------------------- Expenditure Administration expenses 4 117,000 117,000 Advertising and promotion 14,269 4,579 Annual leave 339 (1,247) Audit 4,350 2,500 Awards 0 700 Bad debts expense 0 0 Bank charges 4,661 4,147 Board members' fees 31,128 24,073 Consultant's fees/ Equipment 900 0 Debt recovery services 17 127 Depreciation 6,537 15,414 Doubtful debts 5,003 (4,247) Examinations and assessments 21,568 5,098 Fringe benefits tax 5,486 3,216 Insurance premiums 3,682 4,529 Legal expenses 16,635 17,064 Long service leave 11,230 (8,988) (Profit)/Loss on motor vehicle sales

3,352 (48)

Motor vehicle expenses 36,047 15,156 Other expenses 1,995 2,821 Postage and courier charges 1,628 1,357 Printing and stationery 11,029 10,100 Publications 16 1,145 Salaries – administration 73,768 84,845

The accompanying notes form part of this financial report.



INCOME STATEMENT


Notes 2006 2005 $ $ Expenditure (cont…) Salaries - inspectors 223,300 205,960 Staff uniforms 2,500 918 Staff training 1,347 5,587 Superannuation 40,501 46,196 Telephones 1,647 3,450 Travelling and accommodation 2,262 2,105 ------------------- ------------------- Total Expenditure 642,197 563,557 ------------------- ------------------- Operating Surplus (Deficit) (3,888) (12,845) =========== ===========




BALANCE SHEET

AS AT 31 DECEMBER 2006 Notes 2006 2005 $ $ Current assets Cash 760,252 677,287 Interest accrued 874 2,731 Receivables 2 11,686 19,138 Prepayments 1,383 2,299 ---------------- ---------------- Total current assets 774,195 701,455 ---------------- ---------------- Non-current assets Property, plant & equipment 3 22,404 65,225 ---------------- ---------------- Total non-current assets 22,404 65,225 ---------------- ---------------- TOTAL ASSETS 796,599 766,680 ========= ========= Current liabilities Payables/Accrued Expenses 89,152 65,695 Trust Account 780 780 R egistration fees in advance 1,564 2,072 Provision for Board Superannuation 0 711 Provision for employee entitlements 65,249 53,680 ---------------- ---------------- Total Liabilities 156,745 122,938 ---------------- ---------------- NET ASSETS ========= ========= 639,854 643,742 ========= ========= BOARD FUNDS & RESERVES Balance at the beginning of the year 643,742 656,587 Operating Surplus (3,888) (12,845) ----------------- ----------------- TOTAL BOARD FUNDS & RESERVES 639,854 643,742 ========= =========




CASH FLOW STATEMENT


Notes 2006 2005 $ $ Cash flows from operating activities

Receipts from Registered Painters 583,775 492,017 Prosecution recovery 8,376 10,674 Payments to suppliers and employees (600,382) (549,755) Interest received 51,050 45,326 Other income 1,047 1,275 ------------- ----------- Net cash flow provided by operating activities

5(b)

43,866 -------------

(463) -----------

Cash flows from investing activities Payments on purchase of plant and equipment (21,941) (21,431) Receipts on sale of vehicles 61,040 0 ----------- ------------ Net cash used in investing activities 39,099 (21,431) ----------- ------------ Cash flows from financing activities Repayment of related party borrowings (0) (0) ----------- ------------ Net cash used in financing activities (0) (0) ----------- ------------ Net increase in cash held 82,965 (21,894) Cash at the beginning of the financial year 677,287 699,181 ------------ ------------ Cash at the end of the financial year 5(a) 760,252 677,287 ------------ ------------




NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE PERIOD 1 JANUARY 2006 TO 31 DECEMBER 2006

NOTE 1 ACCOUNTING METHODS AND POLICIES This financial report is a special purpose financial report prepared in

order to satisfy the financial reporting requirements of the Board under the Painters’ Registration Act 1961 (as amended). The Members of the Board have determined that the Board is not a reporting entity.

The financial report has been prepared in accordance with the

requirements of the Painters’ Registration Act 1961 (as amended) and the following Australian Accounting Standards:

AASB 101: Presentation of Financial Statements AASB 107: Cash Flow Statements AASB 108: Accounting Policies, Changes in Accounting Estimates and

Errors AASB 110: Events after the Balance Sheet Date AASB 1031: Materiality

No other Australian Accounting Standards, Urgent Issues Group Interpretation

or other authoritative pronouncements of the Australian Accounting Standards Board have been applied.

The financial report has been prepared on an accruals basis and is based on historic costs and does not take account of changing money values or, except where specifically stated, current valuations of non-current assets.

The Board has prepared financial statements in accordance with the

Australian equivalents to International Financial Reporting Standards (AIFRS) from 1 January 2006.

In accordance with the requirements of AASB 1: First–time adoption of

Australian Equivalents to International Financial Reporting Standards, adjustments to the Board’s accounts resulting from the introduction of AIFRS were applied retrospectively to 2005 comparative figures excluding cases where optional exemptions available under AASB 1 have been applied. There were no AIFRS adjustments made to the opening balances.

The following specific accounting policies, which, unless otherwise stated, are

consistent with the previous year, have been adopted in the preparation of this financial report:




(a) Depreciation

Depreciation is calculated on the diminishing value basis in order to write the assets off over their useful economic life. The rates of depreciation used for each class of assets are:

Class of Asset Depreciation RateProperty, plant and equipment 15%-20% Information Technology-Software 40%

(b) Income tax

No provision for income tax is necessary as the organisation is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

(c) Employee Entitlements

A liability for annual and long service leave is recognised in respect of services provided up to balance date. No material liability exists for sick leave.

NOTE 2 RECEIVABLES

2006 2005 $ $ Registration fees 681 3,196 Prosecutions 12,734 14,301 Other Debtors 215 0 ---------- ---------- 13,630 17,497 Less: Provision for doubtful debts (8,823) (3,820) ---------- ---------- 4,807 13,677 Net GST refundable 6,879 5,461

---------- ---------- 11,686 19,138

---------- ----------




NOTE 3 PROPERTY, PLANT & EQUIPMENT

2006 2005 $ $ Office equipment 3,188 1,736 Less: Accumulated depreciation (1,274) (1,107) ------------

1,914 ------------

------------ 629

------------ Information Technology – Software 20,490 0 Less: Accumulated depreciation 0 (1,107) ------------

20,490 ------------

------------ 629

------------ Motor vehicles – Cost 0 76,750 Less: Accumulated depreciation 0 (12,154) ------------

0 ------------

------------ 64,596

------------ Total property, plant and equipment ------------

22,404 ------------

------------ 65,225

------------




NOTE 4 ADMINISTRATION EXPENSES

Administration expenses relates to charges from the Builders’ Registration Board of WA for the use of premises, staff and equipment provided and financed by the Builders’ Registration Board of WA, and consists of the following:

2006 2005 $ $

Office expenses 9,300 9,300 Postage 1,000 1,000 Printing and stationery 1,600 1,600 Machine hire 2,900 2,900 Rent 14,100 14,100 Repairs and maintenance 300 300 Salary – Administration 82,400 82,400 Telephone 3,600 3,600 Motor vehicle expenses 1,800 1,800

-----------

117,000 -----------

----------- 117,000 -----------

The recharge is to be reviewed in 2007.




NOTE 5 CASH FLOW INFORMATION

(a) Reconciliation of cash

For the purposes of the statement of cash flows, cash includes cash on hand and in banks, net of outstanding bank overdrafts, and short term money market balances. Cash at the end of the financial year is reconciled to the related items in the balance sheet as follows:

2006 2005 $ $ Cash on hand 850 800 Cash at bank – General Account 85,474 43,115 Cash on short term deposits 673,928 633,372

----------- 760,252 -----------

----------- 677,287 -----------

(b) Reconciliation of net cash flow from operating activities to

operating surplus/(deficit)

2006 2005 $ $ Operating surplus/(deficit) for the period (3,888) (12,845) Non cash flows in operating surplus/(deficit):

- (profit)/loss on sale of motor vehicles 3,352 (48) - depreciation 166 15,414 - bad debts and doubtful debts 5,003 (4,247) Net movement in assets and liabilities: - (increase)/decrease in receivables 2,449 (4,988) - (increase)/decrease in prepayments 915 (68) - (increase)/decrease in accrued interest 1,856 1,837 -(increase)/decrease in undeposited funds

(125) (160)

-increase/(decrease) in sundry creditors 1,622 52,602 -increase/(decrease) in accrued expenses

22,235 (34,424)

-increase/(decrease) in fees in advance (578) 1,912 -increase/(decrease) in provision for employee entitlements

11,570 (10,235)

-increase/(decrease) in provision for board superannuation

(711) (5,213)

Net cash provided by operating activities 43,866 (463)


Appendix B

Organisational Chart

Deputy Registrar

Senior Painting Inspector

Painting Inspector

Painting Inspector

Compliance Officer

Registrar


Appendix C

INFORMATION STATEMENT: FREEDOM OF INFORMATION INDEX

Page Reference

Index

11 FOI/1

Mission and Objectives

6 FOI/2

Legislation administered

6 FOI/3

Organisational structure

8 FOI/4

Decision making process 6 FOI/5

Public participation in the formulation of policy and performance of the Board’s functions through consumer and industry representatives

7 FOI/6

Documents held No charge – available outside FOI For purchase

12, 13, 16 FOI/7a

Operation of FOI: How applications are dealt with

12 FOI/8


Appendix D PROSECUTIONS In 2006 the Board commenced the following prosecutions pursuant to Section 4(1) of the Painters’ Registration Act 1961.

Name Section Fine Costs

Michael Toal 4(1) $600 $291.70

David Gill 4(1) $400 $291.70

Mario Celani 4(1) $600 $291.70

Cornel Viorel Pal 4(1) $250 $150.00

John Phillip Dean 4(1) $100 $862.90

Tom Tomic 4(1) $200 $289.00

Anthony A’Court 4(1) $750 $423.20

Peter John Scott 4(1) Nil $700.00

Glen Sabine 4(1) $750 $318.96

Barry Orchard 4(1) $400 $294.70

Note: Under Section 4(1) of the PR Act, no painter shall carry out painting, otherwise than as a bona fide employee, where the charge, fee or reward paid or payable in respect of the undertaking exceeds the prescribed amount unless he is a registered painter.


ADDENDUM – PAINTERS’ REGISTRATION BOARD 2006 ANNUAL REPORT Section 23B of the Painters’ Registration Act 1961 requires the Board to report in its Annual Report on any trends or special problems that may have emerged; forecasts of the workload of the Board in the year after the year to which the report relates; and any proposals for improving the performance of the Board's functions. Any trends or special problems that may have emerged:

− The Board expects an increasing trend to develop in the number of complaints about unsatisfactory painting work, commensurate with the continuation of high levels of activity in the housing and painting industries.

Forecasts of the workload of the Board:

− The Board anticipates high levels of painting activity to continue well into 2007. The Board’s workload in 2007 should therefore remain consistent with this reporting period.

Any proposals for improving the performance of the Board's functions

− The Board will aim to increase community awareness of its role and functions, particularly with respect to its dispute resolution service. In 2007 the Board will examine the merits and costs of undertaking an advertising campaign that includes media and radio for industry and consumers.

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