Annual Review 2020 - standards.org.au
Transcript of Annual Review 2020 - standards.org.au
ABOUT US
Australia’s peak independent, non-government, not-for-profit standards organisation and developer of Australian Standards®
MISSION
Empowering communities
VISION
A global leader in trusted solutions that improve life – today and tomorrow
Cladding receives guidance 11
Smarter, safer, sustainable cities 15
Broadening access to our content 19
Contents
Chairman’s report 4
CEO’s report 6
Standards development performance 8
Standard solutions 10
A year of significant challenge 12
Renewing energy options 14
Standards in the digital age 14
An international organisation 16
Business transformation 18
Our people 20
Standards Awards 21
Financial overview 22
Directors’ report 24
Auditor’s independence declaration 30
Directors’ declaration 31
Statement of profit or loss and other
comprehensive income 32
Statement of financial position 33
Statement of changes in equity 34
Statement of cash flows 35
Notes to the financial statements 36
Independent auditor’s report 44
Member organisations 46
Standards Australia Limited – 2020 Annual Review 5Chairman’s report
commitment that we are able to
develop and adopt world-class
standards for Australia.
This is my last report as Chair
of the Board as my term ends in
November 2020. I will remain on the Board until next
November 2021. I want to take this somewhat early
opportunity to thank our members, the directors I
have served with, our stakeholders, and staff for the
support they have shown me through my tenure.
In my opinion, the last five years have seen the most
significant changes and innovations in Standards
Australia’s recent history.
The recovery of the right to distribute standards
by the termination of the publishing and licence
agreement required an enormous commitment by the
executive team in conjunction with our legal advisors
and counsel. Without the successful finalisation
of the previous arrangements, the implementation
of our new distribution arrangements and digital
strategy would not be possible.
As part of our vision to be a leader within the
‘Standards World’ we saw many other achievements
such as the ongoing improvement in our
communications, standards development processes,
staff and technical committee training, young leaders
program, and the governance reviews.
It is remarkable what we have achieved over the last 11
years, and I look forward to cheering from the sidelines
once my term on the Board ends, and watching
Standards Australia go from strength to strength.
Richard Brooks – Chairman
The last 12 months have been some of
the most challenging in Australia’s
history, with the bushfires that plagued
many parts of our country and the most significant
health and economic shock of our lifetime. I know
that many of you are actively involved in helping
Australia rise to these challenges, and will
continue to play an integral role in the next phase
of the national response.
If there is any positive effect coming out of this
time, it must be on our national resilience. The
question of resilience was one that the Standards
Australia Board spent a day working through in
February as we met for our strategy discussions
with the executive team. This was a momentous
discussion for us as we came to the end of our
5-year strategic plan.
In 2017, the Board presented a broad and
ambitious plan to improve the contributor
experience, lay the foundations needed for a
digital Standards Australia, and embark on the
task of resetting our distribution arrangements
and ensuring that our standards development
process remained fit for purpose. We were mostly
successful in the execution of this plan. As we
move into our next strategic horizon, we need
to be even more focused on delivering for the
Australian community.
I would like to thank the Directors for their work
this year through very challenging times. While
the short, mid and long-term financial impact of
the pandemic is yet to be known, I am thankful
to the Finance Risk and Audit committee for
managing the company’s risk. Standards
development will forever be the lifeblood of
the company. The work of the Standards
Development and Accreditation committee again
this year has us in good stead as we continue to
focus on building capability in this area.
My biggest thanks in closing, goes to our staff
and contributors. It is because of their continuing
As I write these remarks, it occurs to me that in my lifetime, Australia has not faced anything near what it has faced over the last 12 months.
Standards Australia Limited – 2020 Annual Review 7CEO’s report
As the National Standards Body and
developer of Australian standards,
we have been dedicated to
delivering the best results we can, both
domestically and internationally.
Our goal, simply put, is to help Australian
industry, government and the community
broadly, to develop or adopt trusted solutions
that empower and enable them to deliver on
our economic and social advancement.
Our role and goal have taken on a renewed
importance in the context of the rapidly
changing geopolitical and economic
environment – change that will likely
accelerate in the post-COVID-19 environment.
New global dynamics and challenges are
emerging, impacting political stability,
global sustainability and cooperation,
and competition for the ownership and
commercialisation of emerging technology
and critical resources.
These global changes and challenges
are awakening awareness among senior
policymakers and public commentators
on the strategic role standards play in
international technology development and
deployment and other key matters that
underpin Australia’s national sovereignty and long-
term prosperity. These include, among other things,
supply chain stability, security, local manufacturing,
and the maintenance of open rules-based
international order.
As Australia addresses these challenges, it is the
role of Standards Australia to maximise the value
we can add and deliver trusted solutions where
required.
Our vision is simply a clear statement of this intent.
To be a world leader in what we do and how we do
it – for the benefit of Australia.
Our new strategic plan builds on our success
to-date. It is an extension of what we have been
working towards over the past five years.
We have been improving and innovating on
standards development and engagement and
other aspects of our business, like our distribution
arrangements.
We are now building new functions from scratch
in our business around distribution, product
development, and retail operations.
In working with the Board and Executive Team, I am
excited that as we head into this next strategic plan
we do so from a strong base and with an absolute
focus on meeting the needs of our customers.
what we hope will be one of the best customer
experiences for standards that we hope will go
live early next year.
We are settling in our first new distributors
and working with others on new opportunities.
We are implementing new systems to ensure
our compliance with competition law on the
distribution of standards and we are upskilling in
not almost, but every sector of our business.
I want to acknowledge all of the hard work
that has gone into standards development
over the last 12 months from so many of our
contributors, members, and governments. It’s
been a challenging time for us all. Our almost
instant move to remote working was something
I never thought I’d see in my lifetime. One of the
few benefits of this period is that we are now
looking at how we can make remote working for
our stakeholders and us the new normal.
Adrian O’Connell, Chief Executive
When we talk about customers, we mean
equally the committee members and
stakeholders that we work with and empower
through the adoption and development of
standards where they are needed and those
who use and purchase them down the line.
For an organisation of our size, this is a
significant endeavour. These are substantial
transformative changes. We are committed
to success, not only for us but also for
the those we work with and the broader
Australian community.
Our new strategic plan has value and service
at the core of our four strategic objectives,
Reputation, Reach, Relevance, and Revenue.
If a vision is going to become a reality, then it
needs an action plan sitting behind it.
You will see that we are very focused on core
engagement and standards development
work. This includes implementing the next
set of outcomes of the Technical Governance
Review. We are also focused on upskilling our
contributors and ourselves through our learning
and development programs.
On the technology front, we will continue our
work building better systems and support for
our stakeholders and staff. We are building
Technical standardisation, often unnoticed by the general public and policy makers, has been a critical enabler of trade, economic development, and social development for decades.
As Australia addresses challenges, it is the role of Standards Australia to maximise the value we can add and deliver trusted solutions where required. Our vision is simply a clear statement of this intent. To be a world leader in what we do and how we do it – for the benefit of Australia.
Standards Australia Limited – 2020 Annual Review 9Standards development performance
Australian Standards 5,162
Amendments 1,046
Supplements 156
Rulings 18
Handbooks 165
Miscellaneous Products/Publications 30
Technical Specifications/Reports 173
Participating Members 5,816
Nominating Organisations 2,937
Active Technical Committees 371
Active Subcommittees 421
Active Working Groups 368
Stakeholders Active projects: 432
Total catalogue
Australian Standards®
(40% joint AS/NZS)
287 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
Amendments 57 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
Handbooks 3 II
Supplements 1
Technical Specifications 12 IIIIIIIIIII
Technical Reports 11 IIIIIIIIII
Rulings 1
Production FY 2020 372
6,750
Notable publications
ISO/IEC 27102:2019 Information security management – Guidelines for cyber-insurance
AS 4253:2019 Mailboxes
AS 2080:2019 Safety glazing for land vehicles
SA TS 5344:2019 Permanent labelling for Aluminium Composite Panel (ACP) products
AS/NZS 5139:2019 Electrical installations – Safety of battery systems for use with power conversion equipment
SA/SNZ HB 331:2020 Overhead line design handbook
AS/NZS 3000:2018 Amd 1:2020 Electrical installations (known as the Australian/New Zealand Wiring Rules)
AS/NZS 1158.2:2020 Lighting for roads and public spaces, Part 2: Computer procedures for the calculation of light technical parameters for Category V and Category P lighting
AS/NZS 2063:2020 Helmets for use on bicycles and wheeled recreational devices
AS ISO 16111:2020 Transportable gas storage devices – Hydrogen absorbed in reversible metal hydride
AS/NZS 2500:2020 Safe use of medical electrical equipment in health care
AS ISO 37122:2020 Sustainable cities and communities – Indicators for smart cities
Projects by age
0 – 2 years 375
2 – 4 years 53
4+ years 4
22% Electrotechnology and Energy
16% Building and Construction
16% Manufacturing and Processing
10% Public Safety; Public Admin; Business & Mgmt
9% Mining
6% Consumer Products and Services, Safety
5% Communications; Info Tech and e-Commerce
5% Water and Waste Services
4% Transport and Logistics
3% Health and Community Services
3% Agriculture, Forestry, Fishing and Food
1% Education and Training Services
Projects by sector
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The role of standards, often unnoticed, underpins
Australian life, keeping us safe, building economic
value, and connecting Australia to the world.
Cladding receives guidanceDevastating fires in Australian high-rise buildings
have again highlighted the fire safety risks arising
from the non-compliant use of external cladding,
particularly Aluminium Composite Panel (ACP) with a
100% polyethylene (PE) core.
The technical specification SA TS 5344:2019,
Permanent labelling for Aluminium Composite Panel
(ACP) products, provides minimum requirements for
the marking of ACPs to enable their identification
throughout the life of the product.
The publication saw stakeholders coming together to
address community concerns quickly and efficiently.
Completed in just 3 months and immediately
accepted for referencing in Australia’s National
Construction Code (NCC), this guidance redefined
the standards development process, challenging the
perception that producing quality content is lengthy
and difficult.
Connecting Australian communitiesAustralia is no stranger to extreme weather
conditions and with a huge number of towns
and cities hundreds of kilometres apart, strong
powerlines are integral in keeping communities
connected.
SA/SNZ HB 331:2020, Overhead line design,
guides the design, construction and maintenance of
overhead powerlines. This handbook aims to ensure
that powerlines are suitably resistant to the exposure
of extreme climate conditions and designed in a safe
and consistent manner.
With the significant impact of bushfires in our
country, the handbook includes construction of
powerlines in bushfire prone areas as well as safety
clear zones, vegetation management and high
voltage live working considerations.
Stamping out mail theftConversations around privacy are focused heavily on
cyber and data protection, however 29 percent of
Australians still aren’t locking their letter boxes.
Credit cards, payslips and personal identification are
among the many documents taken from mailboxes
across Australia. AS 4253:2019, Mailboxes, aims
to help combat mail theft and identity fraud by
improving the security of individual mailboxes and
banks of mailboxes.
This standard was welcomed by industry in a
time where communities are seeing more and
more apartment buildings, which are often leaving
mailbox banks on the street sidewalk in full view
of passers-by. AS 4253:2019 outlines guidance
around secure entry to banks of mailboxes,
including where they should be placed and how
they can be accessed.
Protecting our water systemsDebates around what is appropriate to flush were
only heightened by COVID-19 and the toilet paper
shortages that came with it. Consumers and industry
were left seeking clarity in what can be flushed down
the toilet.
DR AS/NZS 5328, Flushable products, is currently
in development and will aim to outline methods to
determine which products are suitable to be flushed
down a domestic toilet and establish appropriate
consumer disposal labelling requirements.
Road to safetyMany Australians are using their cars every single day
both on bumpy regional roads and weaving through
small city streets. The glazing of windscreens is an
important aspect to the safety of vehicles making
AS 2080:2019, Safety glazing for land vehicles, a key
addition to the sector.
This standard specifies methods of testing for
windscreens and other glazing for power-driven
land vehicles. It aims to promote awareness across
the industry of the agreed requirements around
windscreens, which in turn assists in building the
confidence of road users.
From manufacturers to the general public, this
standard is an important addition in increasing
certainty around the safe design of windscreens.
Standard solutions
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The end of last year and beginning of 2020
saw Australia in the grips of a bushfire
crisis, with the already challenging recovery
process compounded by the emergence of
COVID-19. These two events have shaped
much of 2020. While devastating, Australians
have come together in a show of compassion
and strength. The international standards
development community rallied to show their
support with addressing these challenges.
Assisting with bushfire recoveryThe impact of the summer bushfires has been both
devastating and ongoing, with approximately 17
million hectares burnt across the country. These
events have seen communities, governments,
businesses and the third sector work together to
rebuild and better prepare communities for similar
future events.
Standards Australia committed to assisting in making
the rebuild process easier and safer, resulting in
the Commonwealth Government and Standards
Australia jointly funding access for all Australians to
AS 3959:2018, Construction of buildings in bushfire-
prone areas.
The ability to open up access to this standard flowed
from the release of our Distribution and Licensing
Framework, which launched at the end of 2019. The
framework is key to the work we are doing in providing
more options in accessing Australian Standards to
support communities across the country.
Standards Australia and the Commonwealth, through
the Department of Industry, Science, Energy and
Resources, will be jointly funding the access to
AS 3959:2018 until 30 June 2021.
Moving PPE to the frontlinesCOVID-19 has brought challenges to many
organisations. Sadly, the virus has impacted
almost all Australian communities, businesses, and
families. However, like the bushfires, COVID-19 has
seen unprecedented support and action from the
Australian people.
As the virus began to spread, the country was
grappling with shortages in masks, surgical gowns,
and hand sanitiser. Supply chains moved quickly to
respond to the increased demand for products with
Standards Australia staff working with numerous
stakeholders as part of the national response.
Multiple sets of guidance material were prepared and
released to assist in the national effort.
This material, prepared in consultation with the
Australian Technical Infrastructure Alliance (ATIA),
helped to move gloves, masks, surgical gowns, and
other personal protective equipment (PPE) from the
warehouse to the frontline using Australian facilities.
Views of the material on our website indicate it has
been an important resource.
In addition to this material, Standards Australia
expedited key risk management and continuity
standards as well as engaged with the committee
SF-010, Occupational Respiratory Protection, to
identify potential international standards for adoption.
Remote standards developmentCOVID-19 saw all Standards Australia staff
and contributors move to online meetings for
standards development.
This move has seen much success and is a
testament to our adaptable community.
Simon Croft, of committee FP-20, reflected on
a recent remote meeting: “It kept a concise
agenda, was ran and chaired well, and
everyone got a chance to have a say.”
The work from home transition fast tracked several IT initiatives like the rollout of Microsoft Teams, OneDrive, Office 365 MFA and improved security tools.” — Prem Bhawnani, Head of IT
“
A year of significant challenge
14 Standards Australia Limited – 2020 Annual Review 15
Smarter, safer, sustainable citiesMore than just buzz words, smart cities encompass
a huge technological transformation across
regional townships, major cities, and international
borders. The goal of smart cities is to help promote
an efficient and sustainable planet through the
interconnected nature of technology and human life.
In November 2019, Standards Australia adopted
nine sustainable cities and communities standards,
covering areas such as indicators for resilient cities
and guidance on establishing smart city operating
models. The standards will be used to help guide the
implementation of technologies to support smarter,
and more sustainable communities.
The work is far from over, with engagement with
stakeholders continuing as we understand the
standards and guidance needed to help make smart
cities and communities a reality across the country.
Positive battery storageA gap in safety guidance for the battery
storage sector was filled with the publication
of AS/NZS 5139:2019, Electrical installations
– Safety of battery systems for use with power
conversion equipment.
Battery systems offer a level of stability to the
grid as they can provide power when needed.
A first for this technology, the standard provides
guidance on safety and installation requirements
to manufacturers, system integrators, designers
and installers.
It proved to be a project of many complexities
and was made possible through support from
industry, government regulators, consumers and
technical experts.
Renewing energy options
Ready H2 go!In little more than 12 months, Standards Australia’s
hydrogen committee published eight standards to
support hydrogen use and transportation in Australia.
These standards can be used to support the safety
of users with guidance on the storage, transport and
refuelling of hydrogen.
This work will help change the way we power
transport, communities and businesses. The
adoption of international standards not only supports
the safety of users but will go far in facilitating
international trade and enabling Australia to
participate in the global hydrogen economy.
Many governments and communities worldwide
are working towards a more renewable and
sustainable future, with energy a significant
element of this. Standards Australia continues
to be a part of the conversation by providing
support, innovation, and expertise into the
ongoing development and implementation of
sustainable energy options.
Standards in the digital age
Strong and adaptable standards are important
in supporting digital innovation while providing a
level of protection to governments, businesses
and the broader community. Standards
Australia has made some exciting progress
in its development of guidance for more
robust cybersecurity in both the national and
international space.
Working with our neighboursBy partnering with the wider Pacific region in the
development of standards, Australia can better
protect our digital economy and that of our
neighbours.
The Pacific Islands Cyber Security Standards
Cooperation Agenda, published in early 2020,
sets out recommendations on how to strengthen
cybersecurity in the Pacific Islands with the use
of standards. It includes some of our closest
neighbours: Fiji, Papua New Guinea, Solomon
Islands, Tonga and Vanuatu.
The report is an example of the work Standards
Australia is doing to support Australia’s International
Cyber Engagement Strategy and the overall
cybersecurity of our closest neighbours.
Increasing Australia’s cybersecurityIn response to growing concerns around privacy,
Standards Australia, alongside AustCyber and the
NSW Government, has established a Cybersecurity
Taskforce. The taskforce consists of industry
experts from the defence, energy, health, financial
services, and the education sector to support
Australia becoming a more resilient nation in terms of
cybersecurity.
The group has agreed on improving the practice
of cybersecurity across Australian industry through
sector-specific initiatives and technical guidance,
greater cooperation between technologies, and
learning from global examples.
Priorities for artificial intelligenceThe responsible deployment of Artificial Intelligence
(AI) has been given a helping hand with the
publication of Standards Australia’s Artificial
Intelligence Standards Roadmap: Making Australia’s
Voice Heard.
The Roadmap aims to give the Australian market the
best chance at capitalising on this technology. Since
2017, AU$86 billion in focused AI programs and
activities have been announced by fourteen of the
world’s most advanced economies, a clear indication
of growing interest in this space.
The report, which was built on public consultations
and submissions, provides clear and actionable
recommendations that aim to support Australia to
reach its full potential in the adoption and use of
this technology.
Artificial Intelligence Roadmap panel, from left: Aureliee Jacquet Chair, Standards Australia IT-043 Committee; Ed Santow, Australia’s Human Rights Commissioner; Colin Dominish, Australian Digital Leader at GHD Digital; and Katherine Teh, Managing Director FUTUREYE.
16
An international organisation
This year has seen the international standards
world provided with the unique and unforeseen
challenges posed by international borders
closing across the globe. However, thanks to the
flexibility of stakeholders, staff and contributors,
international standardisation and collaboration
has continued to thrive entirely digitally.
With a focus on Australia’s economic efficiency,
trade and international competitiveness,
Standards Australia has been involved in
activities that enhance Australia’s global reach
and relevance.
to build our digital economy. It has set the
groundwork for stronger national standards bodies
in ten countries across South Asia and the Pacific:
Bangladesh, Bhutan, Nepal, Sri Lanka and Fiji,
Papua New Guinea, Samoa, Solomon Islands, Tonga
and Vanuatu.
Work has also continued on the ASEAN-Australian
Digital Trade Standardisation Initiative, which has
brought together ASEAN member states and
stakeholders to discuss digital trade priorities.
Standards in areas like e-commerce for small and
medium-sized enterprises, blockchain and emerging
technologies, and cybersecurity have been on the
agenda throughout the program.
This work encourages cooperation and alignment
in the development of standards. They’re part of
Standard Australia’s integral work outside of our own
borders in creating relationships with countries to
identify opportunities and solve challenges in global
standardisation.
Working hand in handStandards Australia supported the government
on relevant legal standardisation language for the
Singapore Australia Digital Economy Agreement (DEA),
which concluded in March 2020. This contributed
to identifying priority standards for cooperation, to
facilitate existing or potential digital trade.
Engagement and collaborationThis year, we encouraged adoption of international
standards in key markets identified in Australia’s
trade agreements and strategic partnerships.
Throughout the year, Standards Australia led and
influenced strategic priority topics for our country in
a fast-evolving international standards landscape.
We co-ordinated and ensured active participation by
Australia in the international system and focused on
collaboration and engagement in key international
standards bodies such as International Organization
for Standardization (ISO) and International
Electrotechnical Commission (IEC).
Contributing internationallyStandards Australia has a strong history of
collaboration with the International Electrotechnical
Commission (IEC). Last year, we collaborated with
regional partners and national counterparts to
engage on issues and challenges, agree common
objectives, and drive consensus in negotiations.
Australia was elected to participate on IEC’s
Standardization Management Board (SMB) and
the IEC Governance Review Task Force. General
Manager of Operations, Kareen Riley-Takos, was
elected to represent Australia on the SMB, and
we hosted our very first virtual conference to
collaborate with stakeholders and discuss Australia’s
international priorities.
Regional partnerships In its second year of the three-year standards
enabling program, The Indo-Pacific Digital Trade
Standardisation Initiative has continued to work
ISO IEC JTC 1
Participating 262 84 13
Secretariats 22 2 1
Observing 82 42 2
International committee participation
510
FY 2019 –20Taking adoptions to 41% of the total catalogue
Adoptions
63%
It is more efficient to develop international standards than each country developing their own.” —Baoying TongJT-001-01, Smart Cities Standards Reference Group
“
18 Standards Australia Limited – 2020 Annual Review 19
the Standards Australia Webstore and Distribution
and Licensing Policy Framework are indications of
meeting Standards Australia’s core objective.
Product focusIn 2019, we established a product team to gain a
better understanding of our customers.
Through interviewing a wide range of people, the
team has provided insight into their challenges,
motivations and expectations.
This research has fed into a range projects we are
excited to bring to life. As we progress, we will
continue to test our concepts with users to ensure
that we are offering our customers the best product
possible.
Distribution transitionIn the last year, several key elements of our transition
to new modes of distribution have completed with
others ongoing.
Both SAI Global and Techstreet are now operating
on a distribution model managed by Standards
Australia. Direct licensing arrangements, previously
with SAI Global, are now handled in-house.
We are continuing to explore new opportunities,
including discussions with international standards
bodies as potential resellers of our content.
Business transformation
Standards Australia is continually working
on providing better experiences for our
stakeholders, contributors and consumers. As
part of our Technical Governance Review we
have been trialling new initiatives and updating
and integrating our systems to provide an even
greater digital experience.
Connect(ing) contributorsConnect is an all-encompassing online portal for
contributors. It provides committee members and
the public the opportunity to learn about standards
projects, comment on draft standards and engage
with other stakeholders.
It is also a tool for nominating organisations to
stay involved and up to date on the work of their
representatives.
Faster project completionsThe introduction of Technical Writers and Committee
Facilitators has taken some of the strain off large and
complex projects. This Technical Governance Review
initiative will ideally see projects delivered in shorter
time frames.
To aid in some of the complexities of a project, a
Technical Writer was assigned and Professor David
Eager, Chairperson of the relevant committee said,
“The drafting of the three parts of this standard has
been improved immensely by having a dedicated
Technical Writer involved from the get-go.”
There has been similar feedback from other
committees, with Standards Australia pleased to see
Technical Governance Review initiatives improving
the effectiveness of our hard-working committees.
Finding a resolutionCommittee members bring expertise and passion to
standards development projects. Understandably,
with many of them holding differing viewpoints,
having a document that can help resolve any issues
quickly and effectively is important.
Our FY-20 implementation plan saw the development
and use of SG-008, Committee Dispute Avoidance
and Resolution. This document champions efficient
standards development and is an essential addition
to the support available for committees.
AcademyStandards Australia ran many workshops to better
educate stakeholders on standards development
processes and platforms. This year has seen plenty
of engagement and participation from both internal
and external contributors.
Internal External Total
Workshops 88 87 175
Attendees 951 647 1,598
Hours 210 193 403
NEXTgen: 22 participantsThe NEXTgen program brings young industry leaders
and technical experts together and provides them
with an opportunity to gain insights and experience
in the standardisation process.
For the 2019–20 cohort, it was a year like no other,
with the workshops moved completely online mid-
way through the program. Despite the disruption, the
adaptability of the 22 participants saw the program
maintain momentum through to online graduation.
Broadening access to our contentA successful legal battle saw Standards Australia
regain distributing and licensing rights which has
provided significant opportunity for Standards
Australia’s content to become more accessible for
stakeholders, contributors and consumers.
The exciting first step was the announcement of
the new distribution agreement with Techstreet, a
Clarivate Analytics company. This led to the launch
of the Standards Australia Webstore, providing a
new channel for accessing standards and creating a
competitive market.
In addition, Standards Australia released a
Distribution and Licensing Policy Framework.
By talking with individuals from different areas of
Australian life, it gave Standards Australia an in-
depth look into how we can better deliver content.
Standards Australia has a firm core objective: to
develop standards for public benefit. The launch of
20
Graduate program launchesIn February, we launched our graduate program
with four graduates joining us from different fields of
study to learn more about Standards Australia and
standards development.
Over the year, George Sfinas, Samantha Smith,
Josephine Gasparre and Abbey Dorian (pictured),
have been embedded across four divisions of the
business (stakeholder engagement, international
stakeholder engagement, product and standards
development).
The program provides an avenue to reach the next
generation of technical professionals and employees,
but also for Standards Australia to learn more about
ourselves as an employer.
According to our graduates, the program has
offered a unique insight into the complexities of the
standards development process, with each business
unit offering new opportunities and experiences to
develop different skills.
Josephine Gasparre: “The graduate role gives me the
opportunity to learn, develop and choose my path …
I am gaining valuable experience and insight into key
aspects of standardisation.”
Barbara Geens
Involved in standards since 2015, protecting consumers is her driving goal as both a Product Safety Manager and as chairperson of the industry working group on button battery safety as well as other committee roles.
David Eager
It would be impossible to put Professor David Eager’s success down to one committee or area of interest. Since 1997, David has been dedicated to standards development across many areas related to playground and recreational equipment safety.
Nigel Wilmot
Dedicated to renewable energy device standards for close to 20 years, Nigel’s contribution has been pivotal in the development of over eight published standards, playing a leading role, as Chair, in the development of five of those standards.
Mike Wood
Among many accom-plishments in standards, Mike is chairperson of the International Electro-technical Commission’s (IEC) TC 106, which has global responsibility for EME (Electromag-netic Energy) testing standards for mobile phones, devices, wire-less networks and radio communication systems.
Rachelle Doyle
New to the standards world as the chair of ME-093, Hydrogen Technologies, the committee has worked tirelessly with government and industry to ensure Australia has a voice in this emerging energy.
Our people
Our graduate program is an avenue to reach the next generation of technical professionals and employees.”—Emma Lowes, Head of HR L&D
“
Women · Men 104 · 70
Manager role appointments 11 · 5
Non-manager role appointments 35 · 24
Managers 16 · 16
Employees
Standards AwardsStandards Awards are presented to those who have
made significant contributions to standardisation
and demonstrated outstanding service in enabling
Standards Australia to attain its objectives.
Innovation Award
BD-014-02 Technical Specification for Labelling of ACP products
The subcommittee BD-014-02, Labelling of Aluminium Composite Panel (ACP) Products, redefined the standards development process, challenging the perception that producing quality content is lengthy and laborious.
Outstanding Committee Award
ME-005 Cranes
Having shown immense commitment and resilience this year, responding quickly to several safety concerns voiced within the sector, the committee embraced international participation and had several adopted standards out for public comment in 2020.
The committees I work on have and continue to save Australian lives.” — David Eager
“
Individual winners
Committees of note
This year has been one of the most testing for our
staff. Despite the challenges presented by 2020,
they have continued to go above and beyond
to bring critical guidance to support Australian
communities.
174
W.R Hebblewhite MedalMeritorious Contribution Award (National)
Meritorious Contribution Award (National)
Meritorious Contribution Award (International) Emerging Leader Award
22 Standards Australia Limited – 2020 Annual Review 23
Financial overview
As an overview of the statutory financial report we set out our summary of the financial performance for the year and the issues involved with the investment portfolio.
Market performance for the year saw negative returns in all areas, except Overseas Equities:
• Australian equities markets (S&P/ASX 300) returned -1.7% over the financial year.
• Overseas equities returned 1.9% on a hedged basis, and 5.8% unhedged.
• Within the Australian property sector, the listed Australian Real Estate Investment Trusts (AREITs) returned -20.7%. In contrast, Australian unlisted property returned -2.7% over the financial year.
• Australian cash rate reduced to 0.25% during the year.
• The AUD contracted -1.9% against the USD during the year.
Investment PortfolioThe Board’s policy is that the portfolio is actively managed by specialist investment managers in each asset class. With the support of JANA Investments Advisers, the Finance Risk and Audit Committee closely monitors investment performance and market conditions to ensure the portfolio is positioned ap-propriately for the prevailing economic environment.
The Board approved, in August 2019, a change in both the long and medium term strategic asset allocation. The change occurred in order to achieve the investment objective of CPI +1% + 3%.
The portfolio is currently invested with 16 actively
managed wholesale investment funds, plus a portion of the portfolio held directly in bank term deposits, in total $292m at 30 June 2020.
At 30 June 2020 the investment portfolio is structured as follows:
Sector $M %
Australian equities 69 24Overseas equities 49 17Property 54 18Infrastructure 30 10Alternatives—growth 15 5Alternatives—defensive 43 15Cash & term deposits 32 11 292 100%
Portfolio ValuationThe below chart depicts the actual value of the in-vestment portfolio compared to the target value. The target value is the value of the initial funds at 30 June 2004 ($161.1 million) accumulated by CPI +1% p.a.
$161.1M
June 2004 June 2020
(Target Value)
Actual Total Portfolio – $292.26M
$269.46M
Financial ResultThe Statement of Profit or Loss and Other Comprehensive Income on page 32 of the Annual Review is stated below to differentiate between operations and investment activities: 2020 2019
$’000 $’000
Operations
Revenues 40,309 18,314
Expenses (33,279) (29,658)
Operations Surplus/(Deficit) 7,030 (11,344)
Investments
Managed Funds distributions and interest 14,657 18,163
Net Profit (Reported P&L) 21,687 6,819
Other Non-Operating Income
Other Income 27 10,024
Net Gain/Loss on Investments designated as fair value through profit and loss (25,841) 2,099
Total Comprehensive Income (4,127) 18,942
Financial StrategyAs an independent, autonomous, self-sustaining or-ganisation, Standards Australia needs to generate in-come to deliver on its company objectives and enable it to deliver unique value for the benefit of Australia.
Standards Australia’s current financial viability is dependent on returns from its investment portfolio and from royalties from the sale of standards publi-cations. Standards Australia’s strategy is to diversify the sources of revenue to enable it to continue deliv-ering solutions that empower communities.
The principles of the current financial model are:
• To ensure that Standards Australia is financially sustainable in the short, medium and long-term, so that we can fulfil our objectives as Australia’s peak standards body, in perpetuity.
• To ensure its role in the economy is supported by solid financial management and creating new sources of revenue, enabling Standards Australia to generate greater value for the community.
• To acknowledge in our business planning that investment returns will fluctuate from year to year and therefore short-term operating cost levels and performance targets should align with average medium and long-term investment return expectations.
• To maximise long-term investment returns through professional active management, and by optimising the balance between risk and return.
• To manage the investment portfolio using an appropriate policy of annual investment income retention.
The strategy is achieved through a measured approach to sustainable annual operating budgets, and then ensuring achievement of the budget.
The Board is committed to ensuring that the resources available are highly focused on achieving excellence in our core activity of developing internationally aligned Australian Standards in the national interest.
Revenue from RoyaltiesRoyalties are received from the sale of standards publications from its distribution partners.
Investment ObjectiveThe objective is to grow the investment corpus in real terms over a seven year period, after providing for a minimum return of (CPI +1%) + 3% per annum (after fees, and measured over the seven year period), with moderate volatility of returns.
The CPI plus 1% component of the investment return is reinvested back into the portfolio to ensure that it maintains its real value. This means that future returns are able to meet inflated costs in the future.
The 3% component of the investment return is the approximate amount of investment earning that can be used to fund annual operating expenses.
The Investment YearThe financial year began reasonably well. The first part of the year saw slowing global economic growth and continuing low inflation across regions, with accommodative monetary policy from central banks supporting bond and equity markets, which were generally higher. However, the period was also marked by increased volatility, punctuated by US-China trade tensions. From mid-February, atten-tion shifted to the rapid spread of COVID-19 globally. Governments around the world implemented varying degrees of general public lockdowns to contain the outbreak, leading to a sharp contraction in economic activity and record falls in global equity markets.
In Australia, in line with global monetary policy re-sponses, the Reserve Bank of Australia (RBA) reduced the cash rate twice in March, to end the financial year at a new record low of 0.25%. The Federal Govern-ment announced three separate stimulus packages totalling more than $200bn, which were coupled with further State-driven initiatives. Economic data weak-ened, as the unemployment rate reached 7.1% by the end of June 2020, and GDP contracted by 0.3% in the March quarter with the Treasurer declaring Austra-lia to be in a technical recession based on an expect-ed negative June 2020 quarterly GDP result.
24 Standards Australia Limited – 2020 Annual Review 25
Principal ActivitiesThe principal activities of Standards Australia Limited
(Standards Australia) have been fulfilling the role as
Australia’s peak standards body; in the development
of Australian Standards, and investment. There has
been no significant change in the nature of these
activities during the past year.
DirectorsThe directors in office during the year and up to the
date of this report are set out beginning page 26,
together with their qualifications, experience and
special responsibilities.
Company SecretaryThe company secretary at the time of reporting is
Ariella Mitchell.
Operating ResultsThe profit of Standards Australia Limited for the year
was a deficit $4,127,000 (2019 profit $18,942,000).
Review of OperationsThe principal activities of Standards Australia Limited
have been fulfilling the role as Australia’s peak
standards body and the development of Australian
Standards.
The company has a diversified investment portfolio
which generates earnings that contribute to meeting
the operational costs of standards development.
A global health emergency was announced by The
World Health Organisation (WHO) on 31 January
2020 as a new strain of coronavirus (COVID-19)
had spread globally with risks to the international
community. Subsequently, on 11 March 2020, WHO
classified the COVID-19 outbreak as a pandemic due
to its rapid increase in global exposure. Standards
Australia implemented strategies aimed at mitigating
likely disruptions, including prohibiting all company-
related travel; temporarily closing its offices with
all employees required to work remotely; regularly
monitoring and reviewing the company’s investment
corpus, cashflow position and royalty revenue, and
engagement with distributors.
While the economic consequences of the COVID-19
pandemic may have been challenging both
domestically and globally, the impact on Standards
Australia to date has been minimal with its operating
results remaining consistent with expectations.
However, the impact of COVID-19 on world equity
markets has significantly impacted the valuation of
its investment corpus. Within the financial year, the
performance of the total portfolio was negative 3.1%
compared against a benchmark of negative 0.2%.
On a positive note, the performance of the total
portfolio since inception was 8.5%, ahead of the
benchmark of 7.1%. Standards Australia continues
to remain a going concern.
While the implications of the COVID-19 pandemic
remain uncertain, Standards Australia continues
to monitor its operations and the strategies
detailed above.
Significant Changes in the State of AffairsNo significant changes in the company’s state of
affairs occurred during the financial year.
After Balance Date EventsNo matters or circumstances have arisen since the
end of the financial year which significantly affected,
or may significantly affect, the operations of the
company, the results of those operations, or the state
of affairs of the company in future financial years.
Likely developments in the operations of the
company, and the expected results of those
operations in future financial years, have not
been included in this report as the inclusion of
such information is likely to result in unreasonable
prejudice to the company.
Environmental IssuesThe company’s operations are not regulated by any
significant environmental regulation under a law of
the Commonwealth or of a state or territory.
Proceedings of Behalf of 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.
The company was not a party to any such
proceedings during the year.
Company DetailsStandards Australia Limited is a company limited by
guarantee, incorporated and domiciled in Australia.
Its registered office and principal place of business is
Level 10, 20 Bridge St, Sydney, New South Wales.
Members’ Rights and ResponsibilitiesIn accordance with the company’s constitution the
liability of members in the event of being wound
up will not exceed $100 per member. In the event
of winding up, any surplus net assets can only be
distributed to an organisation with similar objects,
tax exempt status and a constitutional prohibition
on the payment of income or property to members.
The constitution precludes the payment of any
portion of the company’s income or property by
way of dividend, bonus or otherwise by way of
profit to any member.
Indemnification and insurance of directors and officersThe company indemnifies, each person who is or
has been an officer of the company in accordance
with the provisions of Articles 144 to 147 of the
Constitution of Standards Australia.
RoundingThe amounts contained in the financial report have
been rounded to the nearest $1,000 (where rounding
is applicable) where noted ($000) under the option
available to the company under ASIC Corporations
(Rounding in Financial/Directors’ Reports) Instrument
2016/191. The company is an entity to which this
legislative instrument applies.
Directors’ report
The directors present their report on Standards Australia Limited for the year ended 30 June 2020.
26 Standards Australia Limited – 2020 Annual Review 27
1
4
7
2
5
8
3
6
9
Richard BrooksB Ec., FCPA, FAICD 1
CURRENT POSITIONS: Managing Director, Tyne Solutions Pty Ltd, a provider of business and association management services
FORMER POSITIONS: Chairman, Council of Small Business Organisations of Australia; Executive Director, Timber Merchants Association, Victoria; Co-Chairman, Timber Industry Superannuation Scheme; Member, Mt. Buller and Mt. Stirling Alpine Resorts Management Board
SPECIAL RESPONSIBILITIES: Board Chairman; Member Finance, Risk and Audit Committee; Member Remuneration and Nominations Committee; Member Board Corporate Governance Review Task Group
Michelle FitzgeraldB Com. (Hons), GAICD 2
CURRENT POSITIONS: Chief Digital Officer and Director Technology and Digital Information, City of Melbourne; Director, Melbourne Digital Enterprises Pty Ltd
FORMER POSITIONS: Partner, Customer & Digital Consulting, PwC Australia; senior consulting roles with Accenture UK and Andersen Consulting Australia; Member, Melbourne Sub-Committee Women in Banking and Finance; Director, Australia-China Business Council (Victoria Division); Director, Nutrition Australia (Victoria)
SPECIAL RESPONSIBILITIES: Chair Finance, Risk and Audit Committee
Tracey GramlickMAICD, GradDipMechEng, MBA (TechMgt) 3
CURRENT POSITIONS: Senior Analyst, CSIRO – Certification and Verification, Infrastructure Technologies; Board Advisory Committee Co-Chair, Marriott Vacation Club Owners Phuket, Thailand
FORMER POSITIONS: Member and Councillor, Standards Australia; Director, Secretary and CEO, Australian Window Association; Director and Chairman, Australian Fenestration Rating Council; Director and Secretary, Building Products Innovation Council; Member, Australian Sustainable Built Environment Council; Member, Australian Construction Industry Forum; Director, Furniture, Cabinetry and Joinery Alliance; Technical Director, Australian Window Association; Industrial Products Sector Manager, Alcan Australia
SPECIAL RESPONSIBILITIES: Deputy Chair; Chair Standards Development and Accreditation Committee; Member Remuneration and Nominations Committee; Member Board Corporate Governance Review Task Group
Marlene Kanga AMBTech (Chem Engg), MSc (Lon), PhD (Macq), HonFIEAust, HonFIChemE, FAICD, FTSE 4
Appointed 22 November 2019
CURRENT POSITIONS: Non Executive Director Sydney Water Corporation; Non Executive Director Airservices Australia; Non Executive Director Business Events Sydney; Board Member, NSW Smart Sensor Network; Board Member, World Federation of Engineering Organisations; Director, iOmniscient Pty. Ltd.
FORMER POSITIONS: Board Member Innovation Science Australia; Chair R&D Incentives Committee, Department of Industry Innovation and Science; Chair and Board Member Engineers Australia; Chair, World Federation of Engineering Organisations; Non Executive Director Hearing Co-operative Research Centre; Board Member Asialink
SPECIAL RESPONSIBILITIES: Member Finance, Risk and Audit Committee
Nicholas KoukoulasMBA, GAICD 5
FORMER POSITIONS: Member and Councillor, Standards Australia; Chief Executive and Company Secretary, Austroads Ltd and Transport Certification Australia Ltd; Councillor, PIARC (World Road Association), Managing Director, BSI Group ANZ Pty Ltd; General Manager, Wiltrading Pty Ltd
SPECIAL RESPONSIBILITIES: Chair Board Corporate Governance Review Task Group; Member Finance, Risk and Audit Committee
Megan MottoBA/BEd, MA (Comms Mgt), FGIA, GFAICD 6
CURRENT POSITIONS: CEO Governance Institute of Australia; Member and Chair NSW State Advisory Council for the Committee for Economic Development of Australia; Director of Committee for Economic Development of Australia; Director Next Gen & Co.; Councillor of the Australian Chamber of Commerce and Industry
FORMER POSITIONS: Member and Councillor Standards Australia; CEO, Consult Australia; Councillor, Australian Chamber of Commerce and Industry; Director and Councillor, NSW Business Chamber; Member, Commonwealth Procurement Consultation Committee; Treasurer and Councillor, Australian Sustainable Built Environment Council
SPECIAL RESPONSIBILITIES: Chair Remuneration and Nominations Committee; Member Board Corporate Governance Review Task Group
Ian OppermannMBA (Lon), PhD (Syd), FIEEE, FIEAust, FTSE, FACS, GAICD 7
Appointed 22 November 2019
CURRENT POSITIONS: NSW Chief Data Scientist; President of the Australian Computer Society (ACS); Member of the Technical Advisory Board of the Australian Institute of Robotic Orthopaedics; Member, Board of Remote and Regional Medical Services (RaRMS); Chair, Technical Advisory Board of Zetaris; Industry Professor at UTS; Member, Technical Advisory Board of IP Australia; Chair, Technical Advisory Board of ARDC (Australian Research Data Commons); Member, Technical Advisory Board of Sentient Hubs
FORMER POSITIONS: CEO, NSW Data Analytics Centre (DAC); CEO, Rozetta Technology; Director (Chief), CSIRO ICT Centre; Global Head of Sales Partnering (network software), Nokia Siemens Networks; Director, Radio Access Performance at Nokia
SPECIAL RESPONSIBILITIES: Member Standards Development and Accreditation Committee
David Singleton AMBSc, MEngSc, FTSE, HonFIEAust, FICE, FAICD, MPIA 8
Retired 22 November 2019
CURRENT POSITIONS: Member, Council of Swinburne University of Technology and Member of Resources Committee; Director, Australian Volunteers International
FORMER POSITIONS: Group Board Member and Director, Arup Group; CEO and Chairman, Arup Australasia; Chair, Standards Australia Buildings Standards Sector Board; Chairman Engineers Australia’s College of Leadership & Management; Director, Australian Construction Industry Forum; Director, Cooperative Research Centre for Construction Innovation; President and Chair, Association of Consulting Engineers Australia; Director, Association of Consulting Engineers Australia; Chair, National Engineering Registration Board; Chairman, Infrastructure Sustainability Council of Australia; Chair, Smart Cities Research Institute, Swinburne University of Technology
SPECIAL RESPONSIBILITIES: Chair Standards Development and Accreditation Committee; Member Finance, Risk and Audit Committee
James TinslayBScEng, MAICD 9
Retired 22 November 2019
CURRENT POSITIONS: Director JCT Advisory Pty Ltd; Executive Director Business Group Australia; Director ECA Training Pty Ltd; Director Wine & Food Society of NSW
FORMER POSITIONS: Member and Councillor Standards Australia; Chief Executive Officer National Electrical and Communications Association; Director of Australian Cabling Registration Services Pty Ltd; Councillor Australian Chamber of Commerce and Industry; Director Australian Construction Industry Forum Limited; Chair NSW Electrotechnology Industry Training Advisory Board Pty Ltd; Group Manager Electrotechnology, Standards Australia
SPECIAL RESPONSIBILITIES: Chair Remuneration and
Nominations Committee
Information on Current Directors
28 Standards Australia Limited – 2020 Annual Review 29
Directors Meetings
Eligible Actual R Brooks 6 6 M Fitzgerald 6 6 T Gramlick 6 6 M Kanga AM 2 1 N Koukoulas 6 6 M Motto 6 6 I Oppermann 2 2 D Singleton AM 4 3 J Tinslay 4 3
Finance, Risk & Audit Committee
Eligible Actual R Brooks 5 5 M Fitzgerald 5 5 M Kanga AM 2 1 N Koukoulas 5 5 D Singleton AM 3 3
Remuneration & Nominations Committee
Eligible Actual R Brooks 4 4 T Gramlick 4 4 M Motto 4 4 J Tinslay 2 2
Standards Development & Accreditation Committee
Eligible Actual T Gramlick 4 4 I Oppermann 2 2 D Singleton AM 2 2
The Chairman and other Board Members also attend
Committee Meetings they are not Members of, as
Observers or by Invitation.
Current Board ProfileThe Board considers that each of the non-executive
directors has the following attributes:
• Time to undertake the responsibilities of the
role;
• Unquestionable honesty and integrity;
• A willingness to understand and commit to the
highest standards of governance;
• An ability to apply strategic thought to relevant
matters;
• A preparedness to question, challenge and
critique;
• An understanding or preparedness to develop
a thorough understanding of the issues
involved in standardisation in Australia and
internationally.
Finance, Risk and Audit CommitteeThe committee’s primary objectives are to assist the
Board in fulfilling its responsibilities relating to:
• investment strategy;
• risk management;
• compliance with legal and contractual
obligations;
• accounting, reporting and internal controls; and
• audit.
Remuneration and Nominations CommitteeThe committee’s primary objectives are to assist the
Board in fulfilling its responsibilities relating to:
• remuneration policy and strategy;
• CEO and director remuneration;
• succession planning and nomination of new
directors and other officers;
• applications for new Standards Australia
membership;
• nomination of honorary councillors; and
• Board and Board committee performance
Standards Development and Accreditation CommitteeThe committee’s primary objectives are:
• to assist the Board in fulfilling its responsibilities
as Australia’s peak national standards body and
in the development of Australian Standards,
which include joint Australian / New Zealand
Standards, and related documents;
• perform the duties and responsibilities in
accordance with the role and powers delegated
by the Board in relation to the accreditation of
Standards Development Organisations (SDOs)
to develop and maintain Australian Standards;
and
• review the recommendations from management
about priorities for the development of
Australian Standards and other documents in
the public interest.
Auditor’s Independence DeclarationA copy of the auditor’s independence declaration is
included on page 29.
AuditorBDO continues in office in accordance with section
327 of the Corporations Act 2001. The BDO entity
performing the audit of the Group has transitioned
from BDO East Coast Partnership to BDO Audit
Pty Limited.
Signed in accordance with a resolution of the
directors.
W R Brooks
Chairman
M Fitzgerald
Director, Chair Finance, Risk and Audit Committee
Sydney, 7 October 2020
Meetings of Directors
30 Standards Australia Limited – 2020 Annual Review 31
Level 11, 1 Margaret St Sydney NSW 2000 Australia
Tel: +61 2 9251 4100 Fax: +61 2 9240 9821 www.bdo.com.au
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
DECLARATION OF INDEPENDENCE BY GILLIAN SHEA TO THE DIRECTORS OF STANDARDS AUSTRALIA
As lead auditor of Standards Australia Limited for the year ended 30 June 2020, I declare that, to the best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Australian professional ethical pronouncements in relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
Gillian Shea Director
BDO Audit Pty Ltd
Sydney, 7 October 2020
Auditor’s independence declaration
Directors’ declarationIn the directors’ opinion:
a) The financial statements as at 30 June 2020 and notes set out on page 36 to page 43 are in
accordance with the Australian Charities and Not-for-profits Commission Act 2012, including:
i) complying with Accounting Standards, Corporations Act 2001, the Australian Charities and Not-
for-profits Commission Regulation 2013 (ACNC Regulation 2013), and other professional reporting
requirements; and
ii) giving a true and fair view of the financial position and performance of the company as at 30 June 2020,
as represented by the results of the operations and cash flows, for the year ended on that date; and
b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they
become due and payable.
This declaration is made in accordance with a resolution of the directors.
W R Brooks
Chairman
M Fitzgerald
Director, Chair Finance, Risk and Audit Committee
Sydney, 7 October 2020
32 Standards Australia Limited – 2020 Annual Review 33
Statement of profit or loss and other comprehensive incomeFor the year ended 30 June 2020
2020 2019
Notes $’000 $’000
Revenue 2 54,966 36,477
Expenses
Employee benefits expense 19,128 14,463
Finance costs 396 6
Depreciation and amortisation expense 3 3,156 1,310
Occupancy expense 695 2,052
Travel expense 1,358 2,300
Legal expense 439 1,830
Technology expense 2,258 1,500
Royalty expense 2,036 2,060
Consultancy expense 626 1,053
Membership expense 600 585
Other expenses 2,587 2,499
33,279 29,658
Net Income from Operations 21,687 6,819
Other Income 2 27 10,024
Net Gain/(Loss) on Investments designated as fair value through profit or loss (25,841) 2,099
Profit before income tax expense (4,127) 18,942
Income tax expense 1(g) - -
Profit for the year after income tax expense (4,127) 18,942
Other comprehensive (loss)/income for the year - -
Total comprehensive income for the year (4,127) 18,942
The Statement of Profit or Loss is to be read in conjunction with the notes to the financial statements.
Statement of financial positionAs at 30 June 2020
2020 2019
Notes $’000 $’000
Current Assets
Cash and cash equivalents 4 65 329
Trade and other receivables 5(a) 3,816 16,302
Inventory 6 122 -
Other current assets – Prepayments and Other 7 2,052 1,038
Other current assets – Accrued Income 7 11,748 15,346
Financial assets - investments 8(a) 54,514 28,016
Total current assets 72,317 61,031
Non-current assets
Trade and other receivables 5(b) 2,333 4,667
Financial assets - investments 8(b) 253,899 268,873
Plant and equipment 9(i) 5,172 5,413
Right-of-use assets 9(ii) 5,890 -
Intangible assets 9(iii) 3,568 889
Total non-current assets 270,862 279,842
Total assets 343,179 340,873
Current liabilities
Trade and other payables 10 3,484 3,780
Lease liabilities 11(a) 1,419 -
Provisions 12(a) 1,410 1,079
Other current liabilities 13(a) 13,729 13,563
Total current liabilities 20,042 18,422
Non-current liabilities
Lease liabilities 11(b) 5,552 -
Provisions 12(b) 598 574
Other non-current liabilities 13(b) - 763
Total non-current liabilities 6,150 1,337
Total liabilities 26,192 19,759
NET ASSETS 316,987 321,114
Equity
Reserves 56,119 55,755
Retained surplus 260,868 265,359
TOTAL EQUITY 316,987 321,114
The Statement of Financial Position is to be read in conjunction with the notes to the financial statements.
34 Standards Australia Limited – 2020 Annual Review 35
Statement of changes in equityFor the year ended 30 June 2020
Investment Revaluation
Reserve
Retained Surplus
Total Equity
$’000 $’000 $’000
Balance at 1 July 2018 55,755 246,417 302,172
Profit after income tax expense for the year - 18,942 18,942
Total comprehensive income for the year - 18,942 18,942
Transfer of realised (gains)/losses to retained surplus - - -
Balance at 30 June 2019 55,755 265,359 321,114
Investment Revaluation
Reserve
Retained Surplus
Total Equity
$’000 $’000 $’000
Balance at 1 July 2019 55,755 265,359 321,114
Profit after income tax expense for the year - (4,127) (4,127)
Total comprehensive income for the year - (4,127) (4,127)
Transfer of realised losses to retained surplus 364 (364) -
Balance at 30 June 2020 56,119 260,868 316,987
Statement of cash flowsFor the year ended 30 June 2020
2020 2019
Notes $’000 $’000
Cash flows from operating activities
Receipts from operations 56,766 14,629
Payments to suppliers and employees (30,628) (26,480)
Net cash inflow/(outflow) from operating activities 26,138 (11,851)
Cash flows from investing activities
Payments for plant and equipment (1,584) (1,433)
Payments for intangible assets (2,596) -
Payments for acquisition of investments (26,000) (103)
Interest and distributions received 5,440 13,565
Net cash inflow/(outflow) from investing activities (24,740) 12,029
Cash flows from financing activities
Payments of lease liabilities (1,662) -
Net cash outflow from financing activities (1,662) -
Net (decrease)/increase in cash and cash equivalents held (264) 178
Cash and cash equivalents at the beginning of the financial year 329 151
Cash and cash equivalents at the end of the financial year 4 65 329
The Statement of Cash Flows is to be read in conjunction with the notes to the financial statements.
36 Standards Australia Limited – 2020 Annual Review 37
Notes to the financial statements
1. Statement of Significant Accounting Policiesa) Basis of preparation
The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB), Corporations Act 2001 and the Australian Charities and Not-for-profit Commission 2012, as appropriate for not-for-profit organisations.
The financial report covers Standards Australia Limited (the company) as an individual entity and is presented in Australian currency.
The financial report was authorised for issue by the directors on 7 October 2020. The directors have the power to amend and reissue the financial report.
Reporting Basis and ConventionsThis financial report has been prepared on an accruals basis under the historical cost convention, as modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.
b) Financial assets
Classification and measurementThe company classifies its financial assets in the following categories: “investments at fair value through profit or loss” and “financial assets at amortised cost”. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of the financial assets at initial recognition.
i) Investments at fair value through profit or loss These instruments are initially recognised at fair value plus transaction costs. Subsequent to initial recognition, they are measured at fair value and changes therein are recognised in profit or loss.
ii) Financial assets at amortised cost Financial assets at amortised costs are recognised initially at fair value and subsequently measured at amortised costs using the effective interest rate method, less provision for impairment.
c) Plant and equipment
All plant and equipment are stated at historical cost less depreciation and impairment. Depreciation is calculated using the straight line method over the plant and equipment’s expected economic life. Depreciation rates are based on the following useful lives:
Plant, equipment and furniture 5 yearsComputing equipment 4 yearsLeasehold improvements over term of lease
The residual values, useful lives and depreciation method are reviewed, and adjusted if appropriate, at each reporting date.
Grant revenueGrants from the government and other organisations are recognised at their fair value when grant money has been received and the company comply with all performance obligations and conditions attached to the grant.
Externally funded projectsIncome from externally funded standards development projects is recognised based on contractually agreed milestones which reflect the company’s performance obligations.
j) 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. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of invest-ing activities, which is disclosed as operating cash flows.
k) Cash and cash equivalents
Cash and cash equivalents includes cash on hand and the operating bank account. Cash term deposits held with financial institutions are classified under “other financial assets” as they form part of the company’s investment portfolio.
l) Receivables
Receivables are carried at invoice amount including GST less an estimate for doubtful debts where collection of the full amount is no longer probable. Bad debts are written off when identified.
m) Trade and other payables
These amounts represent liabilities for goods and services provided to the company prior to the end of the financial year and which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
n) Provisions
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated.
Provisions are not recognised for future operating losses.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the balance sheet date.
o) Leases
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, were previously charged as expenses in the periods in which they are incurred.
Lease incentives received under operating property leases were previously recognised as a liability and amortised on a straight-line basis over the life of the lease term.
d) Impairment of plant and equipment
The carrying values of all plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. If such an indication exists and where the carrying value exceeds the recoverable amount, the asset is written down to the recoverable amount. The recoverable amount is the greater of fair value less costs of disposal and value-in-use.
e) Intangible assets
Intangible assets include developed software and other capitalised costs associated with the digital transformation project being undertaken by the company.
Intangible assets are accounted for using the cost model, whereby capitalised costs are amortised on a straight-line basis over their estimated useful lives over a three year period. The residual balances of the intangible assets are reviewed each reporting date.
f) Employee benefits
Provision is made for the company’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits expected to be wholly settled within 12 months of the reporting date, together with benefits arising from wages and salaries, are recognised as current liabilities and are measured at the amounts expected to be paid when the liability is settled plus related on costs. Other employee benefits not expected to be settled within 12 months of the reporting date are recognised in non-current liabilities and are measured at the present value of the estimated future cash outflows to be made for those benefits.
Contributions are made by the company to employee superannuation funds and are charged as expenses when incurred.
g) Income tax
The company is exempt from income tax under section 50-52 subdivision 50-B of the Income Tax Assessment Act 1997.
h) Rounding of amounts
The company is a kind referred to in Class Order 98/0100 issued by the Australian Securities and Investments Commission relating to “rounding off” of amounts in the financial report. Amounts in the financial report have been rounded off in accordance with the Class Order to the nearest thousand dollars, or in certain cases to the nearest dollar.
i) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable when control of the goods or services has passed. The company early adopted the requirements of AASB 15: Revenue from Contracts with Customers, in its revenue recognition policy. There was minimal impact on transition.
Royalty revenueRevenue from royalties are recognised as income when received or for subscription sales, royalty revenue is recognised over the term of the subscription.
License revenueRevenue from licenses are recognised over the term of the license.
Change in accounting policyAASB 16 Leases was adopted from 1 July 2019 using the modified retrospective method which had no impact to Retained Earnings and the comparatives have not been restated. The company elected to apply the practical expedient of not recognising right of use and lease liabilities for short-term/low value assets. Lease payments associated with short-term/low value assets and recognised as an expense during the year totaled $2,498.
On adoption of AASB 16, lease liabilities were recognised in relation to the lease which had previously been classified an ‘operating lease’ under the principles of AASB 117 Leases. The liability was measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of 1 July 2019. The borrowing rate applied to lease liabilities on 1 July 2019 was 5%. The right of use asset totaled $7,303,000 which is amortised on a straight-line basis over its useful life, deemed to be the non-cancellable period of the lease (62 months); the balance at 30 June 2020 is $5,890,000. The lease liabilities has a balance of $6,971,000 (balance on transition of $7,303.000). For the year, the payments and expenses associated with leases $1,661,921 were allocated to financing costs $383,746 and the reduction of the lease liability of $1,278,175 as required by the new standard. In addition, the right of use asset relating to the leases were depreciated during the year by $1,413,000. The net effect was an increase in the loss for the year of $134,825.
Right of Use Asset and Lease Liability Reconciliation $’000
Commitments for Expenditure - Non-cancellable operating lease expense commitments as stated at 30 June 2019 10,369
Less lease incentive receivable each month to end of lease (946)
Less lease incentive stated on balance sheet at 30 June 2019 (946)
Less Interest expense chargeable over life of lease (1,174)
Opening balance of Right of Use Asset and Lease Liability as at 1 July 2019 7,303
The lease term represents the non-cancellable period of the lease and includes periods covered by an option to extend if the company is reasonably certain to exercise that option. Lease terms shall only be revised if there is a change in the non-cancellable period or there is a reassessment upon a significant event or change in circumstance that is both within the control of the lessee and affects whether or not the lessee is reasonably certain to exercise an option.
p) Inventory
Inventories comprises of goods for resale, these are valued at the lower of cost and net realisable values. Net realisable value is the estimated selling price in the ordinary course of business, less any applicable selling expenses.
38 Standards Australia Limited – 2020 Annual Review 39
q) New accounting standards and interpretations
Australian Accounting Standards AASB 16 Leases was adopted within the annual reporting period ending 30 June 2020, referenced in note 1 (o).
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective have not been adopted for the annual reporting period ending 30 June 2020.
r) Critical accounting estimates and judgments
The company evaluates estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the company.
i) Restoration of leased property The company is required to restore the leased premises of its office space to its original condition at the end of the lease term. A provision has been recognised for the present value of the estimated expenditure required to remove any leasehold improvements. These costs have been capitalised as part of the leasehold improvements and are amortised over the remaining term of the lease. The company’s assumptions in determining the restoration of leased property are set out in note 12.
ii) Estimation of useful life of assets The company’s assumptions about the useful life of assets are set out in item (c) of this note.
iii) Long service leave provision The company’s assumptions in determining the provision for long service leave are set out in item (f) of this note.
2020 2019
$’000 $’000
2. RevenueRevenue from operating activities
Royalties 35,617 14,721
Grant received 2,686 2,628
Externally funded project revenue 1,470 392
Recoveries and other income 536 573
40,309 18,314
Income from investing activities
Investment distributions 13,998 17,513
Interest income 659 650
14,657 18,163
Total revenue 54,966 36,477
Other income
Other income includes proceeds from settlement of insurance claim
3. ExpensesExpenses from ordinary activities before income tax expense has been arrived at after charging/(crediting) the following:
Depreciation of plant and equipment 442 297
Amortisation of intangible assets 640 371
Amortisation of right of use assets 1,413 -
Depreciation of leasehold improvements 661 642
3,156 1,310
Rental expense relating to operating leases - 1,918
2020 2019
Notes $’000 $’000
4. Cash and cash equivalentsCash at bank and on hand 65 329
65 329
5. Trade and other receivables(a) Current
Trade debtors 1,483 13,969
Other receivables 2,333 2,333
Less: Allowance for expected credit losses - -
3,816 16,302
At 30 June, there was no significant concentration of past due debts.
Fair value and credit risk
Due to the short term nature of the receivables, the carrying amount is assumed to approximate their fair value
(b) Non-current
Other receivables 2,333 4,667
2,333 4,667
6. InventoriesInventories 122 -
122 -
7. Other assetsCurrent
Prepayments 2,052 1,038
Accrued royalty income 3,947 5,407
Accrued distribution income 7,801 9,939
13,800 16,384
8. Investments Financial assets – investments:
At fair value
(a) Current
Investments in term deposits and other liquid assets 53,561 26,133
Franking credits receivable 953 1,883
54,514 28,016
(b) Non-current
Investments in managed funds, designated as fair value through profit or loss
14(a) 253,899 268,873
253,899 268,873
40 Standards Australia Limited – 2020 Annual Review 41
2020 2019
$’000 $’000
9(i). Plant and equipment(a) Leasehold improvements
Leasehold improvements – at cost 7,340 7,034
Less: Accumulated depreciation (4,036) (3,375)
Net book amount 3,304 3,659
Movements in leasehold improvements during the financial year
Opening net book amount 3,659 4,196
Additions/(disposals) 306 105
Depreciation expense (661) (642)
Closing net book amount 3,304 3,659
(b) Plant and equipment
Plant and equipment – at cost 4,036 3,809
Less: Accumulated depreciation (2,168) (2,055)
Net book amount 1,868 1,754
Movements in plant and equipment during the financial year
Opening net book amount 1,754 1,368
Additions/(disposals) 556 683
Depreciation expense (442) (297)
Closing net book amount 1,868 1,754
Total Plant and equipment 5,172 5,413
9(ii). Right of use asset – LeasesRight of use assets
Right-of-use assets – at cost 7,303 -
Less: Accumulated amortisation (1,413) -
Net book amount 5,890 -
Movements in right of use assets during the financial year
Opening net book amount - -
Additions/ (disposals) 7,303 -
Amortisation expense (1,413) -
Closing net book amount 5,890 -
Total right of use assets 5,890 -
Interest expenses (included in finance costs) 384 -
2020 2019
$’000 $’000
9(iii). Intangible assetsIntangible assets – at cost 6,146 2,865
Less: Accumulated amortisation (2,578) (1,976)
Net book amount 3,568 889
Movements in intangible assets during the financial year
Opening net book amount 889 617
Additions/ (disposals) 3,319 643
Amortisation expense (640) (371)
Closing net book amount 3,568 889
Total intangible assets 3,568 889
10. Trade and other payablesTrade creditors 1,865 178
Other creditors 1,619 3,602
3,484 3,780
11. Lease liabilities(a) Current
Lease liabilities 1,419 -
1,419 -
(b) Non-current
Lease liabilities 5,552 -
5,552 -
12. Provisions(a) Current
Employee benefits 1,410 1,079
1,410 1,079
(b) Non-current
Employee benefits 198 174
Restoration of leased property 400 400
598 574
Movements in non-current provisions other than employee benefits during the financial year:
Restoration of leased property
2020 $’000
Carrying amount at start of year 400
Increment arising from revised estimate -
Carrying amount at end of year 400
Restoration of leasehold property
This amount represents a provision for the present value of estimated expenditure required to remove any leasehold improvements as required by the terms of the lease of the Sydney office premises.
42 Standards Australia Limited – 2020 Annual Review 43
2020 2019
Notes $’000 $’000
13. Other liabilities(a) Current
Deferred revenue 13,314 12,945
Special collections in advance 415 435
Lease incentive 1(n) - 183
13,729 13,563
(b) Non-current
Lease incentive 1(n) - 763
- 763
Lease incentive previously represented the unamortised portion of amounts received to enter into the operating lease for Sydney office accommodation. Lease incentives are now reported under note 11 and included as part of the Right of use asset and lease liabilities under AASB 16.
b) Interest rate riskInvestments in managed funds have some exposures to underlying investments in financial assets which may be subject to fixed and/or variable interest rates. This exposure varies and the share of exposure to the company is not considered significant.
Cash and cash equivalents are subject to variable interest rates, however the direct impact is minimised due to the relatively low allocation to this asset class.
c) Credit riskCredit risk arises from cash and cash equivalents, and accounts receivable.
Cash funds are only invested with major banks where credit risk is mitigated through the company’s policy of only investing with the four major Australian Banks or with other Approved Deposit Institutions with S&P ratings equivalent to or better than the majority of the four major Australian Banks.
The maximum estimated exposure to credit risk at 30 June 2020 is the carrying amount of term deposits, cash and cash equivalents, and accounts receivable which have been recognised on the Statement of Financial Position net of any provision of impairment of these receivables.
d) Liquidity riskPrudent liquidity risk management implies maintaining sufficient cash and marketable securities. The company manages liquidity risk by continuously monitoring forecast and actual cash flows.
At reporting date, exposure to liquidity risk comprises trade and other payables of $3,484,000 (2019: $3,780,000). The majority of these liabilities mature in less than 60 days
14. Financial Risk ManagementFinancial risk managementThe company has exposure to a number of financial risks primarily related to its investment portfolio. The Board’s Finance, Risk & Audit Committee assists the Board in overseeing and fulfilling its responsibilities relating to risk management. Independent investment advisers monitor the performance of all investments and advise the Board on investment strategy, asset allocation and the selection of individual fund managers. Funds are invested with a diverse range of professional licensed fund managers, primarily through investment unit trusts covering a range of investment classes, strategies, geographical sectors and risk profiles. There are thirteen separate fund managers managing sixteen investment portfolios. Investment derivatives are used by some of the fund managers. The company has not invested directly in derivative transactions.
The company’s investment portfolio is strategically structured to maximise long term values and returns. These returns are used to fund a significant portion of total operating expenses. Whilst the portfolio is constructed to manage volatility, there are external influences and cycles that impact investment values and returns in the short term.
As a not-for-profit organisation, the company’s policy is to set short term operating expense budgets at a level that can be sustained by realistic medium term (5-7 year) investment returns. Accordingly whilst short term volatilities affect the value of investments and returns these are not considered as risks that will normally affect the company’s medium term operational and financial performance.
Financial risks faced by Standards AustraliaThe primary risks are market risk relating to investments and, to a lesser extent, credit risk and interest rate risk.
a) Market RiskMarket risk is the risk of loss arising from movements in market variables including but not limited to foreign exchange risk and market price risk.
i) Foreign exchange risk
Foreign exchange risk is the risk that the value of a financial instrument will fluctuate because of changes in foreign exchange rates. The company has some investments with international fund managers which invest funds in the USA and other countries. Some of these fund managers utilise derivatives to hedge against fluctuations between the Australian dollar and the currencies in which the securities they invest in are denominated. Some exposure to foreign currency risk is retained as part of the overall portfolio management strategy.
ii) Market price risk
Market price risk represents the risk that the value of a financial instrument will fluctuate as a result of changes in market prices, whether those changes are caused by factors specific to the individual instrument or its issuer or factors affecting all instruments in the market. The company’s investments have inherent pricing risks. This varies across the different asset classes based on the underlying securities or assets held by each individual fund manager. Asset classes invested are Australian equities, overseas equities, property, alternatives, infrastructure and cash.
Market price risk management involves decisions regarding the allocation of funds across the asset classes and includes management of those risks within these asset classes, that is, the selection of individual fund managers. Each fund manager’s performance is measured against industry recognised index benchmarks that are relevant to the particular investment class. Compliance of a manager’s investment approach against its mandate is also monitored.
The company’s exposure to market price risk at the reporting date was the value of investments in managed funds investments of $253,899,000 (2019: $268,873,000). Refer to note 8.
2020 2019
$’000 $’000
15. Commitments for expenditurea) Non-cancellable operating lease expense commitments:
Aggregate amounts contracted for at balance date but not recognised as liabilities – 20 Bridge Street, Sydney:
Not later than one year - 1,845
Later than one year but not later than five years - 8,151
Payable over five years - 373
- 10,369
The company leases office and car park space under a non-cancellable operating lease expiring 31 August 2024. There are terms in the lease including escalation clauses and renewal rights
b) Capital expenditure commitments
At 30 June 2020, the company had no commitments for capital expenditure (2019 $NIL).
16. Key management personnela) Directors
Directors of the company in office during the year are disclosed in the directors’ report that accompanies these financial statements
2020 2019
$ $
b) Key management personnel compensation 1,219,869 1,848,402
17. Contingent LiabilitiesThe company had no contingent liabilities as at 30 June 2020 and 30 June 2019.
18. Events occurring after reporting dateThere are no reportable events that have occurred in the period between balance date and the date of signing these financial statements.
44 Standards Australia Limited – 2020 Annual Review 45
Independent auditor’s report
Level 11, 1 Margaret St Sydney NSW 2000 Australia
Tel: +61 2 9251 4100 Fax: +61 2 9240 9821 www.bdo.com.au
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
INDEPENDENT AUDITOR'S REPORT
To the members of Standards Australia Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Standards Australia Limited (the registered entity), which comprises the statement of financial position as at 30 June 2020, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial report, including a summary of significant accounting policies, and the directors’ declaration.
In our opinion the accompanying financial report of Standards Australia Limited, is in accordance with Division 60 of the Australian Charities and Not-for-profits Commission Act 2012, including:
(i) Giving a true and fair view of the registered entity’s financial position as at 30 June 2020 and of its financial performance for the year then ended; and
(ii) Complying with Australian Accounting Standards and Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the registered entity in accordance with the auditor independence requirements of the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act) and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other information
Those charged with governance are responsible for the other information. The other information obtained at the date of this auditor’s report is information included in the registered entity’s annual report, but does not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of directors for the Financial Report
The directors of the registered entity are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and the ACNC Act, 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.
In preparing the financial report, directors are responsible for assessing the registered entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intends to liquidate the registered entity or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the registered entity’s financial reporting process.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf
This description forms part of our auditor’s report.
BDO Audit Pty Ltd
Gillian Shea Director
Sydney, 7 October 2020
Standards Australia Limited – 2020 Annual Review 47Member organisations
The Australasian Corrosion Association Incorporated
Australasian Fire and Emergency Service Authorities Council
Australasian Furnishing Research and Development Institute Limited, trading as Furntech
The Australasian Institute of Mining & Metallurgy
Australasian Procurement and Construction Council Inc
Australian Acoustical Society
Australian Aluminium Council
Australian Automobile Association
Australian Building Codes Board
Australian Chamber of Commerce and Industry
Australian Communication Consumer Action Network
Australian Computer Society Inc
Australian Council of Trade Unions
The Australian Council on Healthcare Standards
Australian Dental Association Inc
Australian Fashion Council
Australian Industry Group
Australian Information Industry Association Ltd
Australian Institute of Architects
Australian Institute of Building
Australian Institute of Petroleum Ltd
Australian Medical Association
Australian Nursing & Midwifery Federation
Australian Organisation for Quality Ltd
Australian Paint Manufacturers Federation
Australian Retailers Association
Australian Steel Institute
Austroads Limited
AWA-AGGA Ltd.
Bureau of Steel Manufacturers of Australia
Cement Concrete & Aggregates Australia
Chemistry Australia
CHOICE
Civil Contractors Federation
Communications Alliance Limited
Concrete Institute of Australia
Concrete Pipe Association of Australasia
Consult Australia
Consumer Electronics Suppliers Association
Council of Small Business Organisations of Australia Ltd
Department of Industry, Science, Energy and Resources
Energy Networks Australia
Energy Safe Victoria
Engineers Australia
Exemplar Global
Federal Chamber of Automotive Industries
Fire Protection Association Australia
Forest and Wood Products Australia Limited
Galvanizers Association of Australia
Gas Energy Australia
Government of South Australia
Housing Industry Association Ltd
Insurance Council of Australia
JAS-ANZ (Joint Accreditation System of Australia & New Zealand)
Lighting Council Australia
Master Builders Australia
Master Plumbers Australia
Materials Australia
Medical Technology Association of Australia
Minerals Council of Australia
National Association of Testing Authorities Australia
National Electrical and Communications Association
National Retail Association Limited
NATSPEC/Construction Information Systems Australia
NSCA Foundation
NSW Business Chamber
NSW Fair Trading
Packaging Council of Australia
Plastics Industry Pipe Association of Australia Ltd
Plumbing Products Industry Group Inc.
Property Council of Australia
Royal Australian Chemical Institute Incorporated
WA Government – Building & Energy
Water Services Association of Australia
Welding Technology Institute of Australia