asfa annual report 2014 - superannuation.asn.au

1420AnnuAl RepoRt

to membeRs

The Association of Superannuation Funds of Australia

The Association of Superannuation Funds of Australia Limited (ASFA)

Level 6, 66 Clarence Street

Sydney NSW 2000

T (02) 9264 9300

1800 812 798 (outside Sydney)

F (02) 9264 8824

W www.superannuation.asn.au

October 2014

4A message from our Chair

5A message from our CEO

6ASFA vision and mission

7Key ASFA highlights

8Highlights of 2013/14

15Our governance

16Our leadership

18Thank you

18ASFA State Executive

Committees

19Discussion Group Chairs

19Policy Councils

20Standing Advisory Panels

23 Education and Professional

Accreditation Review Committee

23 Education Committees

24 2014 Conference

Committees

24 2014 ASFA Marketing

Communications Awards Judges

25 Partners 2013/14

25 Superfunds Editorial

Committee

25 ASFA

Life Members

25 ASFA Divisional Service Awards

26 Financial report

Contents

4 ASFA Annual Report 2013/14

A messAge fRom ouR ChAiR

Jim MintoASFA Chair

On behalf of the ASFA Board, I am pleased to present the ASFA 2013/2014 annual report. This has been a successful year for ASFA in

every sense. We are well placed financially and have increased capability.

We have taken the opportunity this year to refresh the ASFA’s operational strategy. The vision for ASFA is ‘dignity in retirement for all Australians’, which we aim to deliver through four strategic themes (see the following pages for more information). There are various initiatives under these themes, but the two most important for this year are the design and rules of the system so that it is aligned towards income streams in retirement and the review of the ASFA Constitution.

You will hear much about the system design work, but I would like to take this opportunity to share with you the Board’s thinking in relation to amending ASFA’s Constitution. Fundamentally, the Board is inviting ASFA members to approve amendments that will modernise the document and create greater flexibility to enable ASFA to better respond to the changing nature of the industry. This initiative began in response to feedback received at the 2013 Leadership Thinktank. The core of the changes is the introduction of an independent chair. We believe that this will enable all sectors to maintain involvement in Board and policy discussions, and manage chair and board succession risk in a more orderly fashion. There are key amendments that are likely to happen before the ASFA annual general meeting in November. They are:

• the ability to appoint an independent director as chair

• the flexibility to create an additional director position if needed

• new categories of non-voting ASFA members

• provide a general provision to establish a board/body over a specific enterprise.

While it is paramount that ASFA members ultimately retain the power to decide Board make up and membership, the directors are keen to ensure that:

• any changes to the ASFA Constitution are consistent with ASFA advocacy in terms of good fund and company governance

• there is a clear explanation of the skill sets and attributes required for ASFA directors, while at the same time providing flexibility for the Board to define its make up, taking into consideration both individual and aggregate skill sets

• changes to the Constitution should have built into them the capability to respond to changing ASFA member needs and the environment within which ASFA operates

• there should be an option for ASFA to fill gaps in sector-related governance processes through independent oversight and standard setting for superannuation-related activities.

I would also like to take this opportunity to thank my fellow directors for their hard work, and the ASFA team and CEO for an outstanding year. I particularly want to take this opportunity to thank Roslyn Ramwell, who is stepping down this year after being a member of the ASFA Board for a number of years. Roslyn has not only been an outstanding director but has also overseen ASFA’s finances and risk as Chair of the Finance & Risk Committee, and has put in a great many hours on top of an already full schedule.

ASFA Annual Report 2013/14 5

A messAge fRom ouR Ceo

This report outlines many of the highlights of the last 12 months. First up, I would like to thank the ASFA Board, members of policy councils, various

committee members, standing advisory panels, as well as ASFA members for your support. I would also like to pay tribute to the ASFA team. They have worked incredibly hard and successfully on your behalf and, like you, have had a year with little respite.

Importantly, it has been a year of immense challenges and opportunities, many of which will continue this financial year. The Financial System Inquiry has provided the industry with a real opportunity to redesign part of the system and fill in the income stream gap, explain what the goals of the system should be, suggest ways to reduce operational costs through simplification and put forward the case on our ability to provide the system to the community.

This year, we are responding to the Treasury’s retirement incomes paper, a tax white paper and the government’s desire to reduce red tape.

The current number and breadth of issues that are being managed as projects across ASFA is almost overwhelming. The ASFA Chair’s message has already noted the ‘redesign of the system’ and the ASFA Constitutional

review, but there are many more, including ASFA’s insurance project and the role of the pool in infrastructure funding. But these projects are still reactionary – we also need to be proactive, including providing more clarity on the issues with the new APRA reporting framework; set best practice disclosure standards; ensure the industry delivers intra-fund advice to the highest possible objective standards, and better engage in the governance of the super data and payments system.

Outside of policy, I am very proud of the work that ASFA has done in the consumer space and the significant increase in the hits on our Super Guru website. I am also thrilled that a long-term goal of launching a trustee accreditation framework has finally happened, with the feedback so far being positive. It is also important to note the many outstanding pieces of research that ASFA, particularly Ross Clare, has produced.

The most significant recent operational changes have been the appointment of both a chief policy officer and a chief operational officer. It is fitting that an industry the size and importance of the superannuation industry has an industry body where the CEO can focus on strategic issues and provide the right voice for the industry and the community.

As members, I urge you to continually have discussions with us and provide feedback on the role of your peak body, the level of voice that you want and the advocacy focus that is needed to ensure, above all, that the system delivers dignity in retirement to as many Australians as possible.

Pauline Vamos (Fellow of ASFA, ASFA AIF)

Chief Executive Officer

It is fitting that an industry the size and importance of the superannuation

industry has an industry body where the CEO can focus on strategic issues

and provide the right voice for the industry and the community.


foRwARd look

In 2014/15, ASFA’s vision and mission are to be delivered through the organisation focusing on the four strategic themes below:

1 Being the dominant voice on the sustainability and effectiveness of the system: by developing and advocating sound long-term public policy that is needed to deliver a sustainable system and better retirement outcomes for fund members.

2 Building consumer and stakeholder confidence in the system: by acting as a conduit for the industry to meet its obligations to educate, inform and engage with the broad community, particularly employers, as well as addressing consumer group issues.

3 Helping to enhance members’ experience and support: through initiatives that support industry-wide best practice in governance, efficiency, transparency, comparison, accountability and member understanding.

4 ASFA’s sustainability: ensuring that ASFA has the scale and funding to enable it to support the industry to be professionally represented and serviced.

AsfA’s visionDignity in retirementfor all Australians.

AsfA’s missionTo be the dominant voice of super that advances effective and sustainable

retirement outcomes, the development of sound public policy, and drives industry

best practice.


key AsfA highlights

ASFA lodged

50 evidence-based policy submissions

Approximately

57,300 peopleincreased their understanding of

their retirement income needs by visiting theASFA Retirement Standard web page

ASFA successfully lobbied the Australian Taxation Office

to modify SuperStream contributions data standards implementation arrangements

Launch of the

ASFA white paper

ASFA recognised as peak superannuation organisation in Australia by the OECD

94%of Conference attendees

rated ASFA 2013

as ‘very good’ or ‘excellent’

The third ASFA Asia-Pacific Pensions Forumwas held in Beijing, China

for over 100 senior pension providers from the region

There was a

strong increase in the value

members say they derived from ASFA membership

More than 1,600 industry professionalslearnt from superannuation and global experts including

human rights lawyer Geoffrey Robertson QC at the ASFA 2013 Conference

Readership of the Super Guru website

increased almost twofoldfollowing the re-launch of the website

ASFA’s year-on-year media coverage tripled

and we expanded our share of voice into personal finance and other consumer publications

More than

2 in 3members said they

would recommend ASFA

More than

2,300people studied with

ASFA Learning

Almost

8,500 peoplewere informed about

key superannuation issuesby attending ASFA events


highlights of 2013/14

ASFA’s submission to the Financial System Inquiry in April 2014

The Financial System Inquiry has offered the superannuation industry the opportunity to provide input into policy to do with the financial system in which it operates. In its April 2014 submission, ASFA highlighted the quality of the Australian superannuation system, while acknowledging some of its inherent complexities. As a significant participant, the superannuation system will be positively impacted by any improvements in the efficiency and competitiveness of the Australian financial system, which can be developed through this Inquiry process. The submission compared the current regulatory framework for superannuation with what we believe is needed. It included 10 key recommendations relating to the regulatory framework.

foRwARd lookSince this submission in April 2014, ASFA has also submitted a response to the Financial System Inquiry’s Interim Report, which involved a great deal of effort from our policy team over many months, with input from ASFA’s policy councils. The detailed submission made a number of policy recommendations, which we believe will help deliver policy stability and certainty for people planning for their retirement. You can read the submission on the ASFA website.

Financial System InquirySubmission

March 2014Association of Superannuation Funds of Australia (ASFA)

In 2013/14, ASFA continued its focus on how to evolve the retirement system for Australians. This was based on the key principles of adequacy, sustainability, equity, flexibility and member protection. A key part of this work was our submission to the Financial System Inquiry in April 2014.

Advocating for a sustainable superannuation system


highlights of 2013/14continued

In 2013/14, ASFA:

lodged more than50 policy submissions

successfully lobbied the Australian Taxation Office to modify the SuperStream

contributions data standards implementation arrangements.

The change introduced a degree of flexibility that

recognises the difficulties faced by some organisations while ensuring that those ready to

implement could do so

prepared seven researchreports and papers that were used for

advocacy and communication purposes

lobbying led tothe suspension of the

operation of s29QC of theSIS Act, avoiding the

inappropriate alignment of regulatory reporting with

consumer disclosure

advocacy workresulted in the extension

of lodgement periodsfor quarterly APRA data reporting from 28 to 35 calendar days until the

quarter ended 30 June, 2015

Advocacy for our members and the industry



Educating Australians about superannuation: ASFA’s new consumer campaign

In 2014, ASFA embarked on a strategy directed at building the level of knowledge and awareness in the community when it comes to superannuation. This strategy was implemented to support the ‘stakeholder experience’ goal of ASFA’s overarching strategy:

“by being a means for the industry to meet its obligations to educate, inform and engage with the broad community, particularly employees and employers, as well as addressing particular issues for specific community groups”.

As part of this strategy, ASFA is implementing four issue-based community campaigns over a 12-month period. The campaigns target various areas where community knowledge and/or awareness regarding superannuation was found to be low, based on research conducted by CoreData and commissioned by ASFA in late 2013. The first campaign, focusing on account consolidation and lost super, began in March 2014, followed by campaigns on insurance and investment options, fees and retirement income stream products to be released later in the year.

In addition to these campaigns, ASFA has focused on expanding the distribution of relevant material to a broader range of outlets, including publications for those over 50, lifestyle magazines and current affairs programs. This has resulted in an increase in the share and distribution of ASFA’s voice in consumer-focused publications.

www.superguru.com.au

As part of this consumer campaign, we re-launched ASFA’s independent consumer

superannuation website, Super Guru, in March 2014. This included new sections and updated information, and site visitor numbers doubled following the re-launch and continue

to increase steadily each month.

ASFA research papers on the equity and sustainability of retirement income policy settings, and about the

account balances of fund members, broken down by age, gender, employment status and so on made a

substantial contribution to policy debate.

A Treasury discussion paper on post-retirement policy settings has taken on board many of the issues raised in the ASFA research paper on impediments to

the development of post-retirement products.

The ASFA Retirement Standard is now used as the measure of adequacy in almost all Australian

policy and research papers examining adequacy issues.

ASFA’s research and policy work has been recognised internationally, with chapters based

on ASFA research and analysis in four international books, including one sponsored by the

International Monetary Fund (IMF), and one published in Chinese by Peking University Press.

Our advocacy work and consumer superannuation educational messages received 2,593 media

mentions throughout the 2013/14 financial year.

We launched a new consumer strategy, which received over 1,000 mentions in consumer

publications and personal finance magazines.

ASFA helped educate Australians about superannuation issues via regular columns in consumer

publications including The Retiree and Money.

Helping achieve efficiencies for funds and the best retirement

outcomes for members of funds



ASFA 2013 National Conference and Super Expo

More than 1,600 industry professionals made the journey to Perth in 2013 to attend the industry’s premier event, the ASFA National Conference. With the highest delegate satisfaction rating in its 51-year history, the Conference featured presentations from more than 100 speakers, representing seven countries, including many high-profile speakers including Geoffrey Robertson QC, Moshe Milevsky and internationally renowned comedian and writer Ben Elton.

Ninety four per cent of attendees rated ASFA 2013 overall as ‘very good/excellent’ and 92 per cent of delegates rated the plenary sessions as ‘very good/excellent’.

The Conference also saw a record 59 international delegates attend, who represented 13 countries.

What participants thought

I have attended and spoken at many conferences around the world and I have to say that this is by far the best organised

and most professionally run conference I have ever attended.

The ASFA 2013 Conference delivered in spades! The quality of topics and speakers was

exceptional and encouraged all of us in the industry to think outside the square. We were challenged and inspired with fresh ideas.

Grant Williams, Portfolio and Strategy Advisor, Vulpes Investment Management (Singapore)

Trevor Gordon (Fellow of ASFA), ASFA Life Member and Independent Board Director

Almost 8,500 people were informed about key super industry issues by attending ASFA events in 2013/14.

Other highlights include:

close to 1,700 people attended ASFA Budget Briefings across the country to understand the government’s new Budget and hear from leaders such as economists Shane Oliver and

Michael Pascoe

ASFA introduced online registration in November 2013 for state and national events,

making it faster and easier for our members to register for events

ASFA delivered 70 events around Australia in various

formats, including luncheons, seminars and roadshows

complimentary State of Super events were held for ASFA

members around the country. ASFA CEO Pauline Vamos

shared insights into the trends and hot topics members

needed to be aware of in 2013/14

there were 16 activeDiscussion Groups around Australia that met regularly

Supporting the industry to deliver


What our members say

ASFA member research: May 2014

Our member research shows:

• more than two in three respondents say they would recommend ASFA

• member satisfaction ratings increased slightly over the past two years, to 7.2 out of 10, with three quarters of members ‘satisfied’ or more than satisfied

• there was a strong increase in the value people say they derive from ASFA membership, with 71.8 per cent of members saying that they rate ASFA membership as ‘valued’ or ‘highly valued’

• state lunches, breakfasts and seminars are the most utilised ASFA events and overall service in 2014

• while government submissions remains the most important service provided by ASFA, across the board, all ASFA services have experienced a positive importance increase

• when asked why they are members of ASFA, the most popular response of members surveyed was “to keep up to date with what is happening in the industry” (69.9 per cent)

• the most utilised ASFA publication by members was Superfunds magazine.

highlights of 2013continued

International engagement

In 2013/14, ASFA was recognised as the peak superannuation organisation in Australia by the Organisation for Economic Co-operation and Development (OECD) and, as a reflection of this, ASFA representatives were invited to the OECD, Group of Twenty (G20) Officials and Asia-Pacific Economic Cooperation (APEC) meetings.

To support international dialogue in an era when International and extra-territorial regulations are increasingly impacting Australian super funds, ASFA:

• held the third ASFA Asia-Pacific Pensions Forum in Beijing, China in March 2014

• participated in a number of international forums

• hosted groups of delegates from the international pension industry and governments

• contributed to the Business 20 (B20) and OECD policy development about long-term investment.


highlights of 2013continued

Providing members with the tools to succeed

In the 2013/14 financial year, ASFA:

• ensured our members were kept fully informed of our activities, as well as the latest industry and regulatory developments by sending 40 ASFA Action email updates

• provided members with regular industry updates via our e-communications and Superfunds magazine

• helped our members to engage with the community via our website, Super Guru: www.superguru.com.au.

Educating the industry

In the last financial year, more than 2,300 people in the super industry studied with ASFA Learning.

Other highlights included:

• holding 40 public workshops throughout Australia

• delivering 82 corporate workshops to 23 companies

• launching the Trustee Accreditation Program

• releasing two governance offerings to educate members under the new prudential principles framework. These are: Core Governance for Superannuation and the Quarterly Superannuation Masterclass

• developing customised learning programs for ASFA’s members. For example, ASFA developed a customised Certificate IV in Financial Services (Insurance)

• continually improving our learning management system in terms of its functionality and enhanced member offerings, for example student forums

• improvements made to ASFA’s courses and continuing professional development (CPD) offerings to enable members to be well informed on current issues facing the industry. For example, our online CPD offering, SuperCPD, includes regular economic updates, regulatory updates, and a range of topics covering ongoing governance and compliance issues and new developments.

• increasing workshop customisation and specialisation, which provides ASFA members with leading-edge training for their employees

• passing a five-year audit with the Australian Skills Quality Authority (ASQA) in 2013. This allows ASFA to remain a Registered Training Organisation (RTO) and thus continue to offer accredited training to our members

• accessing various State and Federal Government funding to enable a cost-neutral training and development solution for our members and their staff

• collaborating with various other specialist training providers in order to give the most specific and best training to our members and their staff.


finAnCe And Risk highlights

Financial performanceThe mix of revenue for the year was as follows:

Management of reservesASFA manages its reserve position in accordance with its Reserving Policy, which requires that ASFA has sufficient reserves available to meet balance sheet liabilities, property lease commitments and other contingencies. This policy was adhered to during the year.

The cash reserves are held in bank accounts and term deposits with the four major banks, but with no single bank having more than 50 per cent of total cash.

The reserve and cash position at the end of 2014, relative to prior years was as follows:

Accumulated reserves and cash

Membership

Professional development

Superfunds magazine

68%

30%

2%

9.00

8.00

7.00

6.00

5.00

4.00

3.00

2.00

1.00

0.002008

Cash

Accumulatedreserves

$ m

illio

n

2009 2010 2011 2012 2013 2014

ASFA has ended the year with outstanding financial results, achieving a surplus of $0.66 million (the 2013 surplus was $0.35 million), an exceptionally strong balance sheet and cash reserves of $8.04 million ($7.31 million in 2013).

The increase of operating surplus is driven by continuing revenue growth, particularly from ASFA Learning and disciplined cost management across the board.

Risk managementASFA has a robust risk management framework, which is oversighted by the Finance & Risk Committee. No significant risk impacts occurred during the year.

GovernanceASFA is committed to leading the superannuation industry by example through the demonstration of good corporate governance policies. The management team and the Board ensure that ASFA’s governance policies are adhered to.


ouR goveRnAnCe

ASFA BOARD

BoardMember Services

Committee

BoardHR & Remuneration

Committee

BoardFinance & Risk

Committee

BoardPolicy

Committee

NSW State Executive

Committee

QLD State Executive

Committee

SA State Executive

Committee

VIC State Executive

Committee

WA State Executive

Committee

Discussion Groups

Discussion Groups

Discussion Groups

Super SystemDesign

Policy Council

Governance & Regulation

Policy Council

Economics & Investment

Policy Council

Industry Efficiency

Policy Council

Consumer Awareness

Policy Council

Standing Advisory Panels

Education and Professional

Accreditation Review Committee

Superfunds Editorial

Committee

ASFA LearningSubject Committees

Conference Program

Committee

KeynoteAdvisory Group


ouR leAdeRshipas at 30 June, 2014

Jim Minto Brian DelaneyMichael Dwyer AM

(Fellow of ASFA)

Chair of the Board

Service provider representative

Finance & Risk, Human Resources & Remuneration and

Policy Committee member

Managing Director, TAL Ltd

Service provider representative

Human Resources & Remuneration Committee Chair


Chief of Global Clients & Marketing, QIC

Public sector funds representative

Member Services and Policy Committee member

Education and Professional Accreditation Committee Chair

Chief Executive Officer, FSS Trustee Corporation

Appointed 12 November, 2009 Appointed 14 November, 2013 Appointed 12 November, 2009

Brad Holzberger Jane PerryRoslyn Ramwell

(Fellow of ASFA)

Public sector funds representative


Chief Investment Officer, QSuper

Corporate funds representative

Policy Committee Chair

Chief Executive Officer, Qantas Superannuation

Corporate funds representative

Finance & Risk Committee Chair

Human Resources & Remuneration and


Chief Executive Officer, Harwood Superannuation Fund

Appointed 23 August, 2011 Appointed 22 July, 2013 Appointed 25 July, 2003


David Elia (Fellow of ASFA)

Damian Hill

Industry funds representative

Finance & Risk and Policy Committee member

Chief Executive Officer, HOSTPLUS

Industry funds representative


Chief Executive Officer, REST Industry Super

Appointed 29 November, 2012 Appointed 25 October, 2013

Nicolette Rubinsztein Dean Thomas

Retail funds representative

Member Services Committee Chair


General Manager Retirement & Advocacy, Colonial First State

Retail funds representative


General Manager – MLC Investment Platforms

Masterkey, MLC

Appointed 12 November, 2007 Appointed 10 November, 2011

Past Chairs1961-63 A Armytage

1963-64 J Chard

1964-66 J Harris

1966-67 W Buxton

1967-68 H Benning

1968-69 N Ducas

1969-70 J Nicholson

1970-71 E Knight

1971-72 A Jamieson

1972-73 R Osbourne

(to 21 March 1973)

1972-73 G Seccombe

1973-74 R Virgo

1974-75 J Friend

1975-76 R McDonald

1976-77 R McCoy

1977-78 M Howard

1978-79 B Whittle

1979-80 W Soding

1980-81 G Burgess

1981-82 R McCoy

1982-83 B Don

1983-84 R Sawkins

1984-85 R Putnam

1985-86 C White

1986-87 A Hauserman

1987-88 P Foxton

1988-89 J McCrory

1989-90 R Stevens

1990-91 P Cox

1991-92 K Dance

1992-94 W Gray

1994-96 K Lockery

1996-97 P Foxton

1997-00 R Vilgan

2000-02 D Holston

2002-05 L Berends

2005-08 R Vilgan

2008-09 G Healy

2009-13 A Lally

2013-14 J Minto


thAnk youASFA would like to acknowledge the following people and organisations for their contribution.

NEW SOuTH WALES

Russell Mason FASFA (Chair)Deloitte Touche TohmatsuRoss Bernays (resigned March 2014)Health Industry PlanIan Brown AASFA

AMP Financial ServicesJane Byrne (resigned September 2013)PFS

Ron Davis FASFA (resigned December 2013)SAS Trustee CorporationDavid GoodmanMacquarie GroupAndrew GriceSAS Trustee CorporationWinsome Hall (resigned September 2013)Commonwealth Superannuation CorporationNicole Killen FASFA

AUSCOAL Superannuation FundTroy Maguire FASFA

IAG & NRMA Superannuation PlanChristian MartinStrategic Capital ManagementLata McNulty (resigned November 2013)Sequential Project ServicesAllan Murphy FASFA

BOC Gases Superannuation FundMike MurphyAon HewittJulie Orr (resigned September 2013)IOOF HoldingsGerard Parlevliet FASFA

Commonwealth Bank Group SuperAnthony Rodwell-BallNGS SuperBrian Zanker FASFA

JANA Investment Advisers

QuEENSLAND

Wendy Tancred FASFA (Chair)BT Financial GroupAndrew ArkellQICLisa Cumberland FASFA

IFAABernard Daly FASFA

Australian Administration ServicesHelen Davis FASFA

Individual memberJoanne DwyerCorrs Chambers WestgarthNeil KentNGS SuperLynette MelcerQSuperAndrew NicholsonSunsuperRobyn Petrou FASFA ASFA AIF

Energy SuperRay Robinson (resigned September 2013)AustralianSuper

Penelope ShieldErnst & YoungKelvin WalshBT Financial Group

SOuTH AuSTRALIA

Darren Ball (Chair)KPMGMark ColemanFunds SAMartin DabrowskiAustralian Administration ServicesAlan Kent FASFA (resigned October 2013)SA Metropolitan Fire Service Superannuation SchemeAndrew Murray AASFA

AMP Financial ServicesJohn O’FlahertyStatewide Superannuation FundAnna Primiero (resigned June 2014) Superpartners Darren RoyalsLutheran SuperShirley Schaefer FASFA

BDO (SA) Pty LtdNeil SparksBT Financial GroupJulie Steed FASFA

Australian Executor TrusteesAda Warren (resigned November 2013)Statewide Superannuation Fund

VICTORIA

David Knox (Chair)MercerJoe Farrugia FASFA

Catholic Superannuation FundBrian Frazer FASFA (resigned March 2014)ESSSuperSally Hopwood (resigned September 2013)MLC AustraliaMaxine Jacona FASFA

LegalsuperNoelle Kelleher FASFA

Vision SuperNoel Lacey FASFA

AustralianSuperSean McGingIndividual memberShane PearseESSSuperPeter Rowe FASFA

Vision SuperMark RozanicPlum Financial ServicesSteve ShoresonVedaRoss StephensKPMG

WESTERN AuSTRALIA

Michael Wilson AASFA (Chair)The Australian Superannuation GroupDonna AdamCBH Superannuation FundNeil Costley AASFA

Stable WealthKrystyna HassallClough Superannuation FundKaren HorneGESBRosanne Kerlin (resigned October 2013)AustralianSuperJohn McNally ASFA AIF

WA SuperFrank Sciarrone (resigned October 2013)AUSCOAL Superannuation FundClare SpeedAustralianSuperRichard Watson (resigned October 2013)Fire and Emergency Services Super Fund

ASFA State Executive Committees*

*as at 30 June, 2014


NATIONAL DEFINED BENEFITSGerard Parlevliet FASFA

Commonwealth Bank Group Super

NATIONAL FINANCIAL CRIMEAndrew MargettsVision Super NSW INVESTMENTPeter WeldonColonial First State Global Asset Management

NSW LEGISLATIONStephen LamyCommonwealth Bank of Australia

NSW SuPER ACCOuNTANTSMatina MoffittErnst & Young

NSW SuPER INDuSTRy ISSuESLata McNultySuperpartners

NSW SuSTAINABILITyJayne KerBNP Paribas Securities Services

VIC COMPLIANCEPaul CurtinTelstra Super

VIC FuND TAxATIONAllister SimePricewaterhouseCoopers

VIC INVESTMENTBrett ElvishFinancial Viewpoint

VIC ITSteve ShoresonVeda

VIC LEGISLATIONLuong TruongLander & Rogers

VIC MEMBER INSuRED BENEFITSMark Harrington FASFA

ESSSuper

VIC MEMBER SERVICESNoel Lacey FASFA

AustralianSuper

VIC SMSFMichael HarkinTopdocs

WA RISK & COMPLIANCEChelsea ChuaGESB


CONSuMER AWARENESS

Jim Minto (Chair)TALAndrew BoalTowers WatsonLara BourguignonPlum Financial ServicesBrian DelaneyQICVicki DoyleBT Financial GroupCathy DuncanSuncorp LifeLinda ElkinsColonial First StateHelena GibsonFSS Trustee CorporationDebbie JensenState Super Financial ServicesTony KeirASFAPeter Lewis (resigned September 2013)Aon HewittTerry Reid (resigned January 2014)State Super Financial ServicesLibby RoyAMP Financial ServicesAnthony SchiavoMercerSteven TravisSunsuper

ECONOMICS & INVESTMENT

Brad Holzberger (Chair)QSuperJustin ArterBlackRock Investment ManagementDavid CoxChallengerMark DelaneyAustralianSuperJon Echevarria FASFA

ASFABrett ElvishFinancial ViewpointDamian GrahamState Super Financial ServicesSam HallinanNabInvestStephen HalmarickColonial First State Global Asset ManagementDavid HartleySunsuperMichael RiceRice WarnerAndrew SpenceQantas SuperannuationPhil VernonAustralian Ethical InvestmentShemara WikramanayakeMacquarie Group

GOVERNANCE & REGuLATION

Dean Thomas (Chair)MLC AustraliaHelen Brady FASFA

MLC AustraliaJim BullingK & L GatesPeter CharterisDLA Piper AustraliaAlyson Clarke (resigned February 2014)BT Financial GroupMartin CodinaBT Financial GroupMichael CottierQSuperLouise du Pre-Alba ASFA AIF

AustralianSuperZein El HassanNorton Rose FulbrightHelena GibsonFSS Trustee CorporationMichael Gomersall FASFA

Rice WarnerPhilip Grindley FASFA

Club Plus SuperannuationCraig JamesonAMP Financial ServicesEllen Liondis FASFA

MercerAlison McleodCommonwealth Bank of AustraliaDavid ReckenbergUniSuper Julia StannardASFAPeter Taylor (resigned November 2013)Commonwealth Bank of Australia Sabine Taylor (resigned December 2013)UniSuper Greg Wilkinson (resigned February 2014)Rice WarnerJenny WillcocksHolding Redlich

INDuSTRy EFFICIENCy

Damian Hill FASFA (Chair)REST Industry SuperGary CoxRice WarnerDavid D’EramoWestpac Institutional BankMarion FryerColonial First StateHelena GibsonFSS Trustee CorporationJason GracaninTALMatthew HalpinQSuperRobert Hodge FASFA

ASFA

Policy Councils*Discussion Group Chairs*




Policy Councils* (continued)

Adrian Johnstone (resigned June 2014)Sequential Project ServicesNigel McCammon (resigned January 2014)Colonial First StatePeter McNeil (resigned November 2013)SuperpartnersBrenda Mills FASFA

REST Industry SuperKelly PowerBT Financial GroupRoger RowlinsonMLC AustraliaGraham SammellsIQ GroupSteve ShoresonVeda

SuPER SySTEM DESIGN

Nicolette Rubinsztein (Chair)Colonial First StateAshvin AroraMetLifeGreg BallardCommonwealth Bank Group SuperAndrew BarnettMLC AustraliaMichael BergRice WarnerMark Blair (resigned February 2014)Rice WarnerSean BradleyState Super Financial ServicesNick CallilTowers WatsonJeremy CooperChallenger

Helena GibsonFSS Trustee CorporationWayne HirtKPMGRichard JamiesonBT Financial GroupTony Keir FASFA

ASFADavid KnoxMercerIan LorimerUniSuper ManagementAndrew NicholsonSunsuperDeanne Stewart (resigned October 2013)BT Financial GroupRosemary Vilgan FASFA

QSuper

ADMINISTRATION & FuND OPERATIONS

Rose-Maree BaconTowers WatsonRobert BarrCommInsureShawn BlackmoreAustralianSuperMeagan Brayne FASFA

Australian Ethical SuperannuationWanda Britton FASFA

Sunsuper Michelle CourtChallengerGary CoxRice WarnerBrendan Daly FASFA

Plum Financial ServicesAdam GeeSuperRatingsJason GracaninTALIan GrayAustralian Administration ServicesPhilip Grindley FASFA

Club Plus SuperannuationChris HillIQ GroupDavid HuntBT Financial GroupGeorge LirasIQ GroupElizabeth MacleanREST Industry SuperRon MullinsIQ GroupJames Neilsen UniSuperNicole ObornePricewaterhouseCoopers

Naomi ObstSuperpartnersDavid Orford FASFA

Financial SynergyJulie OrrIOOF HoldingRatna Ratnakumar FASFA

Best Practice Advisory ServicesColin RussellBravura SolutionsSarah Stidworthy FASFA

AvSuperIan ThomasSuperChoiceBruce WattIBM Superplan in AustralianSuper

BEST PRACTICE

Sonja AleksandrovaHenry Davis York LawyersAdam BellIQ GroupNathan BonariusRice WarnerFrances BorgDeloitte Touche TohmatsuMeagan Brayne FASFA


SunsuperTracey BurtAMP Financial ServicesScott Charaneka FASFA

HWL Ebsworth LawyersSue EveringhamCommonwealth Bank of AustraliaJason GracaninTALPhilip Grindley FASFA

Club Plus Superannuation

Britt HawkinsPricewaterhouseCoopersPatricia NicklinAustralian SecuritiesGennessee RockPricewaterhouseCoopersSally HopwoodMLC AustraliaCora Speed FASFA

DST BlueDoorPatrick WhiteSunsuper

DEFINED BENEFITS

Doug CarmichaelCommonwealth Bank Group SuperAlexandra Carter FASFA

REST Industry SuperErica Clark IOOF HoldingsKen Dance Hon. FASFA

Lynken Counsellors Tim GorstPlum Financial Services Jon Holbrook ASFA AIF

Electricity Industry Superannuation SchemeGuy Holley Mercer Ian Lorimer FASFA

UniSuperMelissa Mason Australian Administration ServicesDavid McNeice Towers Watson Sarah Stidworthy FASFA

AvSuperJanet Torney Whitehelm CapitalWendy TseSuperRatings

Standing Advisory Panels*



Standing Advisory Panels* (continued)


DISCLOSuRE AND ADVICE

Jason AndriessenState Super Financial ServicesJeff BresnahanSuperRatingsErica Clark IOOF Holdings Anne ClarkeHerbert Smith FreehillsStephen CullenQSuper Joanne DwyerCorrs Chambers WestgarthPeter Edman Auscoal Superannuation FundFelix Feist REST Industry Super Jason GracaninTALNathan HarrisBT Financial GroupDerek HudepohlSunsuperKim Hughes MLC AustraliaIvan JonesTelstra Super Chris KetsakidisMills Oakley LawyersAdam KirkAustralian Ethical Superannuation Daniel KnightK&L GatesElizabeth MacleanREST Industry SuperAdam Nettheim FASFA

QSuperMargaret O’HalloranRussell InvestmentsDavid Orford FASFA

Financial SynergyAndrea PiaiaTowers WatsonPaul Stevens SunsuperTrevor SusmanSunsuperBrad TallentsKPMGAmy WardAvSuper Patrick WhiteSunsuperGreg WilkinsonJANA Investment Advisers

ELECTRONIC COMMERCE

Adam BellIQ GroupAndrew Blair MLC AustraliaDavid CookSunsuperDavid D’EramoWestpac Institutional BankStevhan DavidsonSunsuperJason GracaninTALCaroline GuillotPricewaterhouseCoopersEdmund JoryBT Financial GroupDavid KerrAustralian Administration Services Peter MalanPricewaterhouseCoopersRon MullinsIQ GroupJames Neilsen UniSuperChris NichollsSuperpartnersSarah O’BrienColonial First State Peter Rowe FASFA

Vision SuperColin Russell Bravura Solutions Graham SammellsIQ GroupIan ThomasSuperChoiceMaria Zozobrado Challenger

INSuRANCE

Rose-Maree BaconTowers WatsonThierry BareauRice WarnerMeagan Brayne FASFA


SunsuperMichael BrowneCommInsureKathryn CornellREST Industry SuperJoseph Di BellaAIA AustraliaStanley DrummondHWL Ebsworth LawyersAdam FuscaMetLifeGarry HardingBT Financial Group

Eleanor HartmannMLC AustraliaGeoff JordanAMP Financial ServicesClaire MachinHenry Davis York LawyersAndrea McDonnellAon HewittPrincess NavarroMercerDamien O’BrienUniSuperJohn O’SullivanErnst & YoungPhil PattersonTowers Watson AustraliaGreg StauntonAustralianSuperSara Stidworthy FASFA

AvSuperRhonda Virtue PFSAmy WardAvSuperSean WilliamsonTAL

INVESTMENT

Jim BullingK&L GatesSteven CarewJANA Investment AdvisersScott Charaneka FASFA

HWL Ebsworth LawyersPlaton ChrisKPMGIan Crofts Ernst & Young Brett ElvishFinancial ViewpointJoe FernandesColonial First StateMartin GossTowers WatsonMatthew GriffithJANA Investment AdvisersBraydon Heape Henry Davis York LawyersDavid HutchisonIndividual memberChris Ketsakidis Mills Oakley Lawyers Robert O’DonohueHWL Ebsworth LawyersJanice Sengupta Aon Hewitt Janet TorneyWhitehelm CapitalStephen WellsNAB Asset Servicing




Standing Advisory Panels* (continued)

RETIREMENT OuTCOMES

Katrina BaconKPMGMark BlairKPMGAllan BowlesREST Industry SuperSteven CarewJANA Investment AdvisersPeter ChunColonial First StateDavid CoyneState Super Financial ServicesKen Dance Hon. FASFA

Individual member Joanne DwyerCorrs Chambers WestgarthPeter Edman Auscoal Superannuation FundGrant ForsterPrincipal Global InvestorsPeter Forster National Australia BankRodney GreenhalghBT Financial GroupJon Holbrook ASFA AIF

Electricity Industry Superannuation Scheme Matthew GriffithJANA Investment AdvisersStephen HuppertDeloitte Touche TohmatsuMaxine Jacona FASFA

Legal SuperIvan JonesTelstra SuperAdam KirkAustralian Ethical SuperannuationSean Leonard FASFA

CbusAaron MinneyChallengerMatina MoffittErnst & YoungAdam Nettheim FASFA

QSuperMargaret O’Halloran Russell InvestmentsDavid Orford FASFA

Financial SynergyKathryn RussellSuperpartnersAneesa SamuelMetLifeMichael SetonVicSuperJeff WarnerAustralianSuperBruce WattIBM Superplan in AustralianSuperPatrick WhiteSunsuperDarren WilliamsUniSuper

RISK, LEGAL AND COMPLIANCE

Andrew BradleyMinter Ellison LawyersPhillip BroderickIndividual memberMichael ChaayaCorrs Chambers WestgarthScott Charaneka FASFA

HWL Ebsworth LawyersErica Clark IOOF Holdings Andrea CominiREST Industry SuperBen Facer Deloitte Touche TohmatsuPhil Grindley FASFA

Club Plus SuperannuationTerri Hamilton FASFA

Sunsuper Mark Hanrahan BT Financial Group Richard J Hilliar Ernst & YoungCraig Hutcheson MFS Investment ManagementMaxine Jacona FASFA

Legal SuperChris Ketsakidis Mills Oakley LawyersDaniel KnightK&L GatesAnne MacNamaraHenry Davis YorkDavid MahESSSuper Madeleine MatteraKPMGAlison McLeodCommonwealth Bank of AustraliaBrenda Mills FASFA

REST Industry SuperRobert O’DonohueHWL Ebsworth LawyersJulia Pryor Vision Super Harvey RussellColonial First StateCora Speed FASFA

DST BluedoorAndrew TaylorNational Australia BankGreg Thomas ChallengerSimone ThompsonAustralian Ethical SuperannuationPhillip TurnerClayton UtzAdrian Verdnik Hall & Wilcox Amy WardAvSuperKaye Wheatley-Brown FASFA

KPMG

Sue Willems FASFA

Australian Catholic Superannuation and Retirement Fund

SMSF

Jim BullingK&L GatesPhillip BroderickIndividual memberKen Dance Hon. FASFA

Individual member Craig DayColonial First StateStephen Freeborn Rice Warner Michael HarkinIndividual memberRobert John JacksonDeloitte Touche TohmatsuChris LumbyBT Financial Group Matina MoffittErnst & Young Shirley Schaefer FASFA

BDO (SA) Pty LtdJulie Steed FASFA

Australia Executor Trustees Paul Van SuylenMLC Australia

TAx

Benedict DaviesUniSuper ManagementMarco FeltrinPricewaterhouseCoopersDavid GlenTALSam Hardy ChallengerMichael HarkinIndividual memberLaurie JohansenAMP Financial ServicesNoelle KelleherVision SuperHugh LamColonial First StatePaul McLeanErnst & YoungIan RobertsMLC AustraliaRoss StephensKPMGNarelle TooheyVicSuperJohn WardMercerPhillip WitherowCbusPeter ZorbasCommonwealth Superannuation Corporation



GOVERNANCE & TRuSTEESHIP

Patrick BrennanASFANoel DaniellREST Industry SuperJean ElbornTheresa FlavinAPRASue Willems FASFA

Australian Catholic Superannuation and Retirement FundLaura WrightNGS Super

INSuRANCE

Andrea McDonnell (Chair)Aon HewittJane AbbottSuperannuation Complaints TribunalPatrick BrennanASFAStanley DrummondHWL Ebsworth LawyersJacqueline HerronConsultantRenee TisdellConsultantSue Willems FASFA

Australian Catholic Superannuation and Retirement Fund

INVESTMENT

Don Hamson (Chair)Bruce BickertonLazard Asset Management Pacific Co.Patrick BrennanASFALuke GrbinFiducian Portfolio ServicesJudite LayFiducian Portfolio ServicesMichael MulcahyJANA Investment Advisers

SMSFS

Patrick BrennanASFAAnne-Marie Esler AASFA

Tony Keir FASFA

ASFAColin LewisPatrick NorrisJulie Steed FASFA

Australian Executor Trustees

Education Committees*


Michael Dwyer FASFA (Chair)FSS Trustee Corporation

Patrick BrennanASFA

Tracey BurtAMP Financial Services

Scott Charaneka FASFA

HWL Ebsworth Lawyers

Aviva ChengASFA

Helen Davis FASFA

Individual member

Aiza ManalastasASFA

Lata McNultySuperpartners

Robyn Petrou FASFA ASFA AIF

Energy Super

Elliot Sabbah FASFA

REST Industry Super

Julie Steed FASFA

Australian Executor Trustees

Education and Professional Accreditation Review Committee (EPARC)*


SuPER ADMIN: ACCuMuLATION

Karen Carney FASFA (Chair)AMP Financial ServicesPatrick BrennanASFALynette CartwrightSarah Drury FASFA

HCF Life Insurance CompanyElizabeth MacleanREST Industry SuperChris PorterMTAA Superannuation FundElliot Sabbah FASFA

REST Industry Super

SuPER ADMIN: BENEFITS

Karen Carney FASFA (Chair)AMP Financial ServicesPatrick BrennanASFALynette CartwrightSarah Drury FASFA

HCF Life Insurance CompanyElizabeth MacleanREST Industry SuperChris PorterMTAA Superannuation FundElliot Sabbah FASFA

REST Industry Super

SuPERANNuATION COMPLIANCE

Ian Pendleton (Chair)FSS Trustee CorporationPatrick BrennanASFABrett MarshallANZBrenda Mills FASFA

REST Industry SuperBernard O’ConnorNGS Super



KEyNOTE ADVISORy GROuP

Pauline Vamos FASFA ASFA AIF (Chair)ASFADavid AtkinCbusGreg CooperSchroder Investment Management AustraliaJeremy CooperChallengerDavid Elia FASFA

HOSTPLUSGreg Healy FASFA

Brad HolzbergerQSuperNicolette HughesASFARussell Mason FASFA

Deloitte Touche Tohmatsu

CONFERENCE PROGRAM COMMITTEE

Pauline Vamos FASFA ASFA AIF (Chair)ASFAAndrew BoalTowers WatsonJo-Anne Bloch (resigned June 2014)MercerHelen Davis FASFA

Individual memberBrian DelaneyQICSuzanne HoldenAustralian Administration ServicesMelinda Howes FASFA

Nicolette HughesASFATony Keir FASFA

ASFAJohn Livanas ASFA AIF (resigned June 2014)SAS Trustee CorporationRussell Mason FASFA

Deloitte Touche TohmatsuGraeme MatherMercerCraig MatthewCapital GroupGuy McAliece (resigned June 2014)KPMGPaul SchroderAustralianSuperMegan SmallerASFAWade SmithIFM InvestorsWayne Sullivan FASFA

Frontier AdvisorsSimone ThompsonAustralian Ethical Superannuation Peter WeldonColonial First State Global Asset Management

2014 Conference Committees

Mary AtleyREST Industry SuperKatherine AllchinVinva Investment Management Cary BrownBUSS(Q)Lisa ChikarovskiASFAClaudia ClamerFSS Trustee Corporation Joel ClaphamMedia SuperDanielle ClarkeUniSuper Management David ConstableCbusGerry Costigan Newgate CommunicationsRachel EdwardsJP Morgan Investor ServicesRebecca GlennFinancial Literacy AustraliaStuart GreenwoodFirst SuperLisa HarperSuncorp GroupKatrina HorrobinASFAGeneva HumphreysBT Financial Group Amanda IrvingChallenger Donald McBainQSuperTony McFadyenDimensionalTracey McFarlandQSuperRebecca MonforteCbus Peter NicholasAnthony Hodges Consulting (AHC)Carly O’KeefeCommInsureJoanna PelcAUSCOAL Superannuation FundGay PowerPower to CommunicateDanielle PurdyeWater Corporation Pam SandbergRed Flame DesignAnthony SchiavoMercerChris SmithVedaPaul SmithAustralian Ethical SuperannuationToni SmithSunsuper

Susie StephensonVision SuperWayne Sullivan FASFA

Frontier AdvisorsIan TaylorTransform Amanda TemperlyEnergy SuperLeah ThomsonJP Morgan Investor ServicesNarelle TurnockESSSuperKaren Waldon-WhiteSuperannuation Compliance ServicesAnn WarringtonTowers Watson

2014 ASFA Marketing Communications Awards judges



Lorraine Berends FASFA

James Bird Hon. FASFA

Bob Burgess Hon. FASFA

Peter Cox Hon. FASFA

Ken Dance Hon. FASFA

Peter Foxton Hon. FASFA

Trevor Gordon FASFA

Warren Gray Hon. FASFA

Robin Harris Hon. FASFA

Alan Hauserman Hon. FASFA

David Holston FASFA

Bill Howard Hon. FASFA

Murray Jamieson Hon. FASFA

Ken Lockery Hon. FASFA

John McCrory Hon. FASFA

Ronald McDonald Hon. FASFA

Ray Palmer Hon. FASFA

Howard Prott Hon. FASFA

Robert Putnam Hon. FASFA

Mavis Roberton Hon. FASFA

Harry Romanis Hon. FASFA

Howard Rosario FASFA

William Soding Hon. FASFA

Ray Stevens Hon. FASFA

Rosemary Vilgan FASFA

Owen Weeks Hon. FASFA

Chris White Hon. FASFA

Bruce Whittle Hon. FASFA

ASFA Divisional Service Awards

AIA Australia

AMP Capital Investors

Asia First

Ausbil Investment Management

AUSCOAL Superannuation Fund

AUSTCHAM

Australia China Business Council

Australia Post

Australian Trade Commission (AUSTRADE)

AvSuper

BDO (SA) Pty Ltd

BlackRock Investment Management

BNP Paribas Securities Services

Bravura Solutions

BT Financial Group

BT Investment Management

Capital Group

Challenger

Citi

Colonial First State Global Asset

Management

CommInsure

DMAW Lawyers

DST Global Solutions

Eaton Vance Investment Managers

Ernst & Young

Franklin Templeton Investments Australia

FTSE

GBST

GESB

Harbour IT

Hong Kong Investment Funds Association

Hong Kong Retirement Schemes Association

Hong Kong Trustees’ Association

HWL Ebsworth Lawyers

IFM Investors

Invesco

IQ Group

ITM

KPMG

LaSalle Investment Management

Lander & Rogers

LINK Group

Mercer

MetLife

Minter Ellison

NAB

Northern Trust Global Investments

NT Superannuation Office

OnePath

Perpetual

Pillar

Porterallen

QIC

Red Flame Design

State Street Australia

TAL

The Australian Superannuation Group (WA)

Think Global

Vanguard Investments Australia

World Pensions Council

Partners 2013/2014*

ASFA wishes to thank all the partners who generously supported ASFA throughout the year.

VIC

Peter Rowe FASFA

Vision SuperRoss StephensKPMGJenny WillcocksHolding Redlich

QLD

Bernard Daly FASFA

Australian Administration Services

WA

Michael Wilson AASFA

The Australian Superannuation Group (WA)

Russell Mason FASFA (Chair)Deloitte Touche Tohmatsu

Mione CollinsASFA

Bruce MaddenBlueChip Communication

Graeme MatherMercer

Naomi SteerFSS Trustee Corporation

Narelle WoodenSAS Trustee Corporation

Laura WrightNGS Super

Superfunds Editorial Committee*

ASFA Life Members



27Directors’ report

32Auditor’s independence

declaration

33Statement of

comprehensive income

34Statement of

financial position

35Statement of changes

in equity

36Statement of cash flows

37Notes to and forming part of the financial statements

48Directors’ declaration

49Independent audit report

51Corporate directory

finAnCiAl RepoRt Contents


Directors

Directors in office at the date of this report are:• J Minto | Chair of the ASFA Board• B Delaney | Human Resources & Remuneration

Committee Chair• M Dwyer• D Elia• D Hill• B Holzberger• J Perry | Policy Committee Chair• R Ramwell | Finance & Risk Committee Chair• N Rubinsztein | Member Services Committee Chair• D Thomas.

The directors are qualified by virtue of the positions they hold in the superannuation industry. Further details are included elsewhere in this annual report.

The Board consists of two directors elected from each of the following membership categories: industry funds, corporate funds, public sector funds, retail funds and service providers.

The following changes to directors occurred during the year or subsequent to the year-end:

Appointments• B Delaney: 14 November 2013 (elected)• D Hill: 25 October 2013 (appointed)• J Perry: 22 July 2013 (appointed)

Resignations/retirements• P McNeil: 14 November 2013• A Lally: 25 October 2013

Principal activities

ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political national organisation which aims to advance effective retirement outcomes for members of funds through research, advocacy and the development of policy and industry best practice. There was no significant change in the nature of those activities during the year. Further details of the company’s activities during the year are contained elsewhere in this report. At this time, the directors are not aware of any developments likely to cause a significant change in the nature of the company’s activities.

Review of operations and results

The surplus of income over expenditure for the year amounted to $655,035 (2013 surplus $354,031), which resulted in an increase in the accumulated surplus from $4,385,904 to $5,040,939.

Significant changes in the state of affairs

There have been no significant changes in the state of affairs of the company during the course of the year.

Matters subsequent to the end of the financial year

Since the end of the financial year, the directors are not aware of any matter or circumstance not otherwise dealt with in the directors’ report or financial report that has significantly or may significantly affect the operations ofthe company, the results of these operations or the state of affairs of the company in subsequent financial years.

Likely developments and expected results of operations

The directors consider that the company will continue its principal activities, being the promotion of the interests of ASFA members and the education of ASFA members generally in superannuation matters.

Environmental regulation

The company is subject to normal State and Federal environmental legislation and does not operate within an industry with specific environmental guidelines or limits. To the best of the directors’ knowledge, there have been no breaches of environmental legislation.

Strategy, objectives and measuring performance

ASFA’s mission is to provide effective retirement outcomes for members of funds through research and advocacy and to serve ASFA members by providing a range of services.

ASFA has four critical success factors. Under each critical success factor, it has two strategic themes for the 2014 financial year.

Thought leadership

• Influence government reviews and implementation • Drive four policy pillars of:

» enhanced retirement outcomes » informed and engaged members » industry efficiency gains » effective governance and regulation.

Confidence in industry

• Develop industry best practice tools: governance, transactions, risk management

• Linking ASFA members to consumers.

Member engagement

• Put ASFA members into the drivers’ seat • Support and deliver industry benchmarking.

Financial sustainability

• Products and services that meet changes • Plan for industry change and consolidation.

Corporate governance statement

The directors are responsible to the ASFA members for the performance of the company in both the short and the longer term and seek to balance these sometimes competing objectives

diReCtoRs’ RepoRt

In respect of the financial year ended 30 June, 2014, the directors submit the following report, made out in accordance with a resolution of the directors:


in the best interests of the company as a whole. Their focus is to ensure the company is properly managed, to protect, promote and advance the interests of Australia’s superannuation funds, their trustees and their members. The board draws on relevant corporate governance best practice principles to assist it to contribute to the performance of the company.

Day-to-day management of the company’s affairs and implementation of corporate strategy and policy initiatives are delegated by the board to the Chief Executive Officer and management team.

The functions of the Board include:• setting corporate strategies• review and approval of the annual budget and financial plans• overseeing and monitoring organisational performance

and the achievement of the company’s strategic goals and objectives

• monitoring financial performance including approval of the annual and quarterly financial reports and liaison with the company’s auditors

• appointment of, setting the remuneration of, and assessment of the performance of, the Chief Executive Officer

• ensuring there are effective management processes in place and approving major corporate initiatives that arise throughout the year

• ensuring the significant risks facing the company have been identified and appropriate and adequate control, monitoring and reporting mechanisms are in place.

A description of the company’s main corporate governance practices is set out herewith. All these practices, unless otherwise stated, were in place for the entire year.

The Board of directors

The Board operates in accordance with the broad principles set out in the company’s constitution including that:• the Board is comprised of non-executive directors. Further

information about the directors is set out in the directors’ report under the heading ‘Information on directors’

• the Chair of the Board is elected by the full board and meets regularly with the Chief Executive Officer

• there is a mix of directors on the Board from different sectoral backgrounds, as required under the constitution, with complementary skills and experience.

The Board has established a number of committees to assist in the execution of its duties and to allow detailed consideration of complex issues. Current committees of the board are:• Finance & Risk • Human Resources & Remuneration• Member Services• Policy.

All four committees include directors. The committee structure and membership is reviewed on an annual basis.

Each of these committees has its own written charter, setting out its role and responsibilities and the manner in which the committee is to operate. All substantial matters determined by committees are submitted to the full Board as recommendations for Board decision.

The company’s constitution specifies that all directors must retire from office no later than the second annual general meeting (AGM) following their last election. Where eligible, a director may stand for re-election.

Commitment

The Board meets at least on a quarterly basis during the year. Additional corporate strategy workshops are also scheduled on a biennial basis (with the timing appropriate to other significant external events).

The number of meetings of the company’s Board of directors and of each Board committee held during the year and the number of meetings attended by each director is disclosed elsewhere in this report.

Conflict of interests

All directors are regarded as independent. The company defines “independent” as independent of the executive management.

Independent professional advice

Directors and board committees have the right, in connection with their duties and responsibilities, to seek independent professional advice at the company’s expense. Prior written approval of the Chair is required, but this will not be unreasonably withheld.

Remuneration

A Human Resources & Remuneration committee (comprising three directors including the Chair and Chair of the Finance & Risk Committee) has also been established to make specific decisions on remuneration packages and other terms of employment for senior executives.

Remuneration packages are set at levels that are intended to attract and retain executives capable of managing the company’s diverse operations and achieving the company’s strategic objectives.

The Chief Executive Officer is responsible for keeping the Chair informed of all relevant issues associated with management succession planning, including the implementation of appropriate executive development programmes and ensuring adequate arrangements are in place, so that appropriate candidates are recruited for later promotion to senior positions.

Non-executive directorsNo fees are paid to directors of the company.


Audit

The oversight of this function is included in the responsibilities of the Finance & Risk Committee.

The other main responsibilities of the Finance & Risk Committee are to:• provide recommendations and advice to the Board on the

financial management of ASFA• review in detail the annual budget as prepared by the

secretariat to ensure its financial soundness and adequacy in providing services to the ASFA members, as determined by the Board

• review in detail the management accounts prepared periodically by the secretariat including reports against budget and cash flow analysis

• review in detail the balance sheet as prepared periodically by the secretariat to ensure that it is financially sound and that adequate reserves are being maintained to meet recorded and possible future liabilities to ensure continuity of activity

• review the treasury management by the secretariat to ensure the safe and timely investment of surplus funds

• identify and manage risk through ensuring the establishment and review of the effectiveness of internal control systems

• oversee compliance by ASFA with appropriate laws and regulations

• oversee compliance with ASFA Reserving Policy, Financial Delegation and Approval Policy and Cash and Financial Management Policy

• appoint the external auditors and oversee the audit process• oversee the effective operation of the risk management

framework.

In fulfilling its responsibilities, the committee receives regular reports from management and the external auditors. It also meets with the external auditors at least once a year – more frequently if necessary, and reviews any significant disagreements between the auditors and management, irrespective of whether they have been resolved. The external auditors have a clear line of direct communication at any time to either the Chair of the committee or the Chair of the board. It is the policy of the external auditors to provide an annual declaration of their independence to the committee.


Jim Minto | Chair of the Board

Appointed 12 November, 2009• Service provider representative• Finance & Risk, Human Resources & Remuneration and

Policy Committee member• Managing Director – TAL Ltd.

Brian Delaney Appointed 14 November, 2013• Service provider representative• Human Resources & Remuneration Committee Chair• Policy Committee member• Chief of Global Clients & Marketing – QIC.

Michael DwyerAppointed 12 November, 2009 • Public sector funds representative • Member Services and Policy Committee member • Chief Executive Officer – FSS Trustee Corporation.

David Elia Appointed 29 November, 2012 • Industry funds representative• Finance & Risk and Policy Committee member• Chief Executive Officer – HOSTPLUS.

Damian Hill Appointed 25 October, 2013• Industry funds representative• Policy Committee member• Chief Executive Officer – REST Industry Super.

Brad Holzberger Appointed 23 August, 2011 • Public sector funds representative• Policy Committee member• Chief Investment Officer – QSuper.

Jane Perry Appointed 22 July, 2013 • Corporate funds representative• Policy Committee Chair• Chief Executive Officer – Qantas Superannuation.

Roslyn Ramwell Appointed 25 July, 2003 • Corporate funds representative • Finance & Risk Committee Chair• Human Resources & Remuneration and Policy Committee

member• Chief Executive Officer – Harwood Superannuation Fund.

Nicolette Rubinsztein Appointed 15 November, 2007 • Retail funds representative • Member Services Committee Chair• Policy Committee member• General Manager Retirement & Advocacy –

Colonial First State.

Dean Thomas Appointed 10 November, 2011 • Retail funds representative • Policy Committee member• General Manager – MLC Investment Platforms

Masterkey, MLC.

Directors who resigned during the financial year:

Anthony Lally | Chair of the Board

Appointed 2 May, 2008Resigned 25 October, 2013• Industry funds representative • Human Resources & Remuneration Committee Chair• Finance & Risk and Policy Committee member • Former Chief Executive Officer – Sunsuper.

Peter McNeil Appointed 26 February, 2013Resigned 14 November, 2013• Service provider representative• Policy Committee member• Chief Executive Officer – Superpartners.

Company secretary

Tim Buskens • Chief Operating Officer (appointed 28 April, 2014)• Company Secretary (appointed 24 June, 2014).

Mark Zworestine • Company Secretary (departed 28 February, 2014).

Pauline Vamos• Chief Executive Officer• Company Secretary (28 February, 2014 – 24 June, 2014).

Information on directors


Directors’ benefits

No director of the company has, since the end of the previous financial year, received or become entitled to receive a benefit by reason of a contract made by the company and the director, a firm of which the director is a member or an entity in which the director has a substantial financial interest, with the exception of the benefits that may be deemed to have arisen in relation to transactions entered into in the ordinary course of business.

Insurance of officers

The company’s constitution provides indemnities for directors and officers of the company and its related bodies corporate against all liabilities to other persons (other than the company and its related bodies corporate) which arises out of the performance of their normal duties as directors or officers of the company unless the liability relates to conduct involving a lack of good faith. The indemnity provided by the company to its directors and officers extends to the payment of all costs and expenses incurred in defending an action that falls within the scope of the indemnity. The company is only liable to indemnify a director or officer to the extent that the director’s or officer’s liability is not covered by a policy of insurance taken out by the company.

During the financial year, the company paid insurance premiums totalling $5,428 in respect of directors’ and officers’ liability insurance. The policy does not specify the premium for individual directors and officers. The policy includes cover for defamation.

The directors’ and officers’ liability insurance provides cover against all costs and expenses involved in defending legal actions and any resulting payments arising from a liability

incurred by the company’s directors and officers to other persons where that liability was incurred by the director or officer in their position as a director or officer unless the conduct involved a wilful breach of duty or fiduciary obligation.

Constitution

In accordance with the constitution, every member of the company undertakes to contribute to the property of the company in the event of the company being wound up while they are a member or within one year after they cease to be a member, for payment of the debts and liabilities of the company (contracted before they cease to be a member) and of the costs, charges and expenses of winding up and for the adjustment of the rights of the contributories among themselves, such amount as may be required, but not exceeding twenty dollars ($20) per member ($7,560 in total).

Auditors’ independence declaration

A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 32.

This report is made in accordance with a resolution of directors.

Jim MintoChair

Roslyn RamwellDirector

Sydney15 August, 2014

DIRECTORS’ MEETINGS

The number of directors’ meetings and meetings of committees of directors held in the period each director held office during the financial year and the number of meetings attended by each director is:

Board of directors Finance & Risk Member services Policy HR & Remuneration

Available to attend

No. Attended

Available to attend

No. Attended

Available to attend

No. Attended

Available to attend

No. Attended

Available to attend

No. Attended

Anthony Lally 3 3 1 1 - - 3 3 1 1

Brian Delaney 4 4 - - - - 3 3 1 1

Michael Dwyer 7 6 - - 2 2 6 5 - -

David Elia 7 5 2 2 - - 6 4 - -

Damian Hill 4 3 - - - - 3 2 - -

Brad Holzberger 7 5 1 1 - - 6 4 - -

Jim Minto 7 7 2 1 - - 6 6 2 2

Peter McNeil 3 2 - - - - 3 2 - -

Jane Perry 7 5 - - 2 2 6 4 - -

Roslyn Ramwell 7 7 3 3 - - 6 6 2 2

Nicolette Rubinsztein 7 7 - - 2 2 6 6 - -

Dean Thomas 7 6 - - - - 6 5 - -


AuditoRs’ independenCe deClARAtion


Notes2014

$2013

$

Revenue from continuing operations 3 11,813,836 10,701,712

Expenses from continuing operations 3 11,158,801 10,347,681

Operating surplus/(deficit) before income tax 3 655,035 354,031

Income tax expense 2(h) - -

Operating surplus/(deficit) after income tax attributable to members

655,035 354,031

Other comprehensive income - -

Total comprehensive income for the year 655,035 354,031

stAtement of CompRehensive inComefor the year ended 30 June 2014

The above should be read in conjunction with the accompanying notes.


Notes2014

$2013

$

Current assets

Cash and cash equivalents 5 8,038,635 7,313,799

Receivables 4 2,630,634 3,195,673

Other assets 6 423,561 400,050

Total current assets 11,092,830 10,909,522

Non-current assets

Plant and equipment 7 769,775 918,780

Total non-current assets 769,775 918,780

Total assets 11,862,605 11,828,302

Current liabilities

Payables 12 933,727 1,149,187

Provisions 8 683,488 614,626

Fees and income in advance 9 4,971,659 5,365,327

Total current liabilities 6,588,874 7,129,140

Non-current liabilities

Provisions 8 232,792 313,258

Total non-current liabilities 232,792 313,258

Total liabilities 6,821,666 7,442,398

Net assets 5,040,939 4,385,904

Equity

Accumulated surplus 5,040,939 4,385,904

Total equity 5,040,939 4,385,904


stAtement of finAnCiAl positionas at 30 June 2014



2014 $

2013 $

Total equity at the beginning of the financial year 4,385,904 4,031,873

Operating surplus/(deficit) for the year 655,035 354,031

Total comprehensive income for the year 655,035 354,031

Total equity at the end of the financial year 5,040,939 4,385,904

stAtement of ChAnges in equityfor the year ended 30 June 2014


Notes2014

$2013

$

Cash flows from operating activities

Receipts from operations 11,702,284 9,953,397

Payments to creditors and employees (10,988,393) (9,738,627)

Interest received 259,407 291,189

Net cash flows from operating activities 13 973,298 505,959

Cash flows from investing activities

Payments for plant and equipment (248,462) (97,935)

Proceeds from sale of plant and equipment - -

Investment redemption/(purchase) - -

Net cash flows from investing activities (248,462) (97,935)

Cash flows from financing activities

Proceeds from borrowings - -

Repayments of borrowings - -

Interest paid - -

Net cash flows from financing activities - -

Net increase/(decrease) in cash and cash equivalents 724,836 408,024

Cash at 1 July, 2013 7,313,799 6,905,775

Cash at 30 June, 2014 5 8,038,635 7,313,799

stAtement of CAsh flowsfor the year ended 30 June 2014



notes to And foRming pARt of the finAnCiAl RepoRt

for the year ended 30 June 2014

1. GENERAL INFORMATION

This financial report covers the Association of Superannuation Funds of Australia Limited as an individual entity and is presented in Australian currency.

The Association of Superannuation Funds of Australia Limited (the company) is a company limited by guarantee. In accordance with the constitution, every member of the company undertakes to contribute to the property of the company in the event of the company being wound up while they are a member or within one year after they cease to be a member, for payment of the debts and liabilities of the company (contracted before they cease to be a member) and of the costs, charges and expenses of winding up and for the adjustment of the rights of the contributories among themselves, such amount as may be required, but not exceeding twenty dollars ($20) per member (2014: $7,560 in total, 2013: $8,640 in total). The financial statements were authorised for issue by the directors on 15 August, 2014. The directors of the company have the power to amend and reissue the financial report.

The operations of the company are conducted in Australia only.

2. SuMMARy OF SIGNIFICANT ACCOuNTING POLICIES

The principal accounting policies adopted in the preparation of the financial report are set out below. These principles have been consistently applied to all the years presented, unless otherwise stated.

a) Basis of preparation

This general purpose financial report has been prepared in accordance with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

Compliance with IFRSsThe financial report of the company also complies with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

Historical cost conventionThese financial statements have been prepared under the historical cost convention and unless otherwise stated do not take into account current valuation of non-current assets.

Critical accounting estimatesThe preparation of financial statements in conformity with Australian Accounting Standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company’s accounting policies.

b) Plant and equipment

Plant and equipment are depreciated over their expected useful lives to the company using the straight-line method. The expected useful lives are three to seven years.

The cost of improvements to leasehold properties is amortised over the unexpired period of the lease.

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

Where government grants have been secured to purchase plant and equipment they are brought to account in the balance sheet as deferred income and amortised over the same period that the plant and equipment is being depreciated.

c) Capitalised software

Capitalised software is depreciated over their expected useful lives to the company using the straight-line method. The expected useful lives are three to five years.

Capitalised software commences being depreciated once the software is applied within the company.

d) Leased assets

Leases under which the lessor effectively retains all the risks and benefits of ownership are classified as operating leases. Operating lease payments (net of any incentives received from the lessor) are charged to expense in the periods in which they are incurred.

e) Revenue recognition

(i) Conference costs and conference revenues carried forwardConference costs are charged to expense and conference income is credited to revenue as incurred. Costs incurred and invoices raised for future events are deferred to the financial year in which they occur.

(ii) Education programsIncome and expenditure arising from the education program is brought to account in the same period as the semester to which it relates. Income and expenditure relating to semesters, which have not commenced at balance date, are deferred and carried forward to the following year.

(iii) Other revenuesOther revenues are recognised in the period to which they relate on an accruals basis.

f) Receivables

A provision is raised for any doubtful debts based upon a review of all outstanding amounts at year-end. Bad debts are written off during the period in which they are identified. A provision for


doubtful debts is established when there is objective evidence that the company will not be able to collect amounts due.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off by reducing the carrying amount directly. An impairment allowance account (doubtful debts provision) is used when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the trade receivable is impaired.

The amount of impairment loss (bad debt) is recognised in the statement of comprehensive income within other expenses. When a trade receivable for which an impairment allowance had been recognised becomes uncollectable in a subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against other expenses in the statement of comprehensive income.

g) Employee benefits

(i) Wages and salaries and annual leaveLiabilities for wages and salaries and annual leave in respect of employees’ services up to the reporting date are measured at the amount expected to be paid when the liabilities are to be settled.

(ii) Long service leave A liability for long service leave is recognised and is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to the expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at 30 June, 2014 on national government bonds with terms to maturity that match as closely as possible the estimated future cash outflows.

h) Income tax

The company is exempted from income tax.

i) Foreign currency translation

(i) Functional and presentation currencyItems included in the financial statements of the company are measured using the currency of the primary economic environment in which the company operates (‘the functional currency’).

(ii) Transactions and balancesForeign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and

liabilities denominated in foreign currencies are recognised in the statement of comprehensive income, except when they are deferred in equity as qualifying cash flow hedges and qualifying net investment hedges or are attributable to part of the net investment in a foreign operation.

Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. Translation differences on non-monetary assets and liabilities such as equities held at fair value through profit or loss are recognised in profit or loss as part of the fair value gain or loss. Translation differences on non-monetary assets such as equities classified as available-for-sale financial assets are included in the fair value reserve in equity.

j) Cash

For the purposes of the statement of cash flows, cash includes deposits at call, which are readily convertible to cash on hand and are subject to an insignificant risk of changes in value, net of outstanding bank overdrafts.

k) Trade and other payables

These amounts represent liabilities for goods and services provided 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.

l) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities, which are recoverable from, or payable to, the taxation authority, are presented as operating cash flows.

m) New accounting standards and interpretations

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June, 2014 reporting periods. The company’s assessment of the impact of these new standards and interpretations is set out below.

AASB 9 Financial Instruments, AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 and AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) (effective from 1 January, 2017)AASB 9 Financial Instruments addresses the classification, measurement and derecognition of financial assets and financial liabilities. The standard is not applicable until 1 January, 2017.


There will be no impact on the company’s accounting for financial assets and liabilities.

The company does not have any financial liabilities that are designated at fair value through profit or loss.

There are no other standards that are not yet effective and that are expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.

3. OPERATING SuRPLuS/(DEFICIT)

The following specific revenue and expenses have been included in the Statement of Comprehensive Income.

2014 $

2013 $

Membership fee income 3,374,059 2,609,351

Professional development and education 7,708,344 7,094,027

Superfunds magazine 220,116 559,367

Interest income 259,408 291,189

Other income 251,909 147,778

Auditor’s remuneration – audit services (35,700) (33,000)

Auditor’s remuneration – non-audit services (1,500) (15,000)

Bad and doubtful debts (7,489) -

Depreciation – plant and equipment (256,420) (240,434)

Amortisation – leasehold improvements (141,048) (135,608)

Provision for long service and annual leave (96,313) (30,196)

Rental expense relating to operating lease minimum lease payments (509,719) (458,699)

Employee costs (6,393,680) (5,315,294)

Direct cost of revenue (2,664,655) (2,829,262)

IT expenses (165,080) (182,533)

Other expenses (887,197) (1,107,655)

Total comprehensive income 655,035 354,031

Depreciation for the year ended 30 June, 2014 after the recognition of unearned income of $40,824 (2013: $78,844) relating to a grant of $245,000 received from the Department of Innovation, Industry and Regional Development. The grant, relating to the Super Guru project, is recorded as unearned income (refer Note 9) and is being recognised over three years.


4. RECEIVABLES

2014 $

2013 $

Trade receivables 2,572,576 3,133,980

Less doubtful debts provisions

(7,489) -

2,565,087 3,133,980

Accrued interest 65,547 61,693

2,630,634 3,195,673

The 2014 trade receivables include 2014/2015 membership subscriptions and 2015 event invoices raised prior to 30 June, 2014.

5. CASH AND CASH EQuIVALENTS

2014 $

2013 $

Cash at bank and in hand

3,205,721 2,752,561

Term deposits 4,832,914 4,561,238

8,038,635 7,313,799

Term deposits are held with Commonwealth Bank, National Australia Bank and ANZ Bank with a maximum exposure of 50 per cent to any one of these AA-rated institutions.

6. OTHER ASSETS

2014 $

2013 $

Conference costs carried forward 136,183 47,758

Prepayments 287,378 322,292

Accrued income - 30,000

423,561 400,050


7. PLANT AND EQuIPMENT

Cost Accumulated depreciation Net book value

2014 $

2013 $

2014 $

2013 $

2014 $

2013 $

Capitalised software 1,023,079 788,252 722,589 496,815 300,490 291,437

Plant and equipment 1,541,975 1,528,340 1,301,265 1,270,619 240,710 257,721

Leasehold improvements 1,201,815 1,201,815 973,241 832,193 228,574 369,622

3,766,869 3,518,407 2,997,095 2,599,627 769,774 918,780

Reconciliations of the carrying amounts of each class of plant and equipment at the beginning and end of the current financial year are set out below.

Capitalised software

Plant and equipment

Leasehold improvements

Carrying amount at 1 July, 2013 291,437 257,721 369,622

Additions 234,827 13,635 -

Change of category - - -

Disposals - - -

Depreciation/amortisation expense (225,774) (30,646) (141,048)

Carrying amount at 30 June, 2014 300,490 240,710 228,574

Carrying amount at 1 July, 2012 532,035 263,349 438,211

Additions 26,316 4,600 67,019

Change of category (62,530) 62,530 -

Disposals - - -

Depreciation/amortisation expense (204,384) (36,050) (135,608)

Make good expense catch up - (36,708) -

Carrying amount at 30 June, 2013 291,437 257,721 369,622


8. PROVISIONS

2014 $

2013 $

Current

Provision for employee benefits 581,200 512,338

Lease incentives 102,288 102,288

683,488 614,626

Non-current

Provision for employee benefits 128,551 106,729

Lease incentives 25,572 127,860

Make good provision 78,669 78,669

232,792 313,258

Employee numbers (full-time equivalent) 48 47

Lease incentiveThe provision represents the present value of the estimated costs that will be incurred until the end of the lease terms when the obligation is expected to exceed the economic benefit to be received.

Lease make goodThe provision represents the present value of the estimated costs to make good the premises leased by the association at the end of the respective lease terms.

Under the terms of its lease arrangement, the association must restore certain leased premises to their condition as at the commencement of the lease.

9. FEES AND INCOME IN ADVANCE

2014 $

2013 $

Membership fees 3,485,585 3,117,935

Conference revenue carried forward (Note 2e) 1,067,487 1,381,942

Grant – Department of Innovation, Industry and Regional Development - 38,838

Others 418,587 826,612

4,971,659 5,365,327


10. LEASE COMMITMENTS

i) The company leases premises at Level 6, 66 Clarence Street, Sydney under a non-cancellable operating lease expiring on 31 October, 2015. The lease commenced on 1 November, 2008 and has fixed rental terms each year. The lease has an option period of three years with a market review at the commencement of the option period.

ii) The company also leases equipment under a non-cancellable operating lease.

Total future rental commitments contracted for at balance date in respect of non-cancellable operating leases over office premises in NSW and equipments which have not been recognised as liabilities are as follows:

2014 $

2013 $

Not later than one year 651,092 624,552

Later than one year and not later than five years 165,015 816,017

Later than five years - -

816,107 1,440,569

11. CAPITAL COMMITMENTS

Capital expenditure contracted for at reporting date but not recognised as liabilities is as follows:

2014 $

2013 $

Property, plant and equipment

Not later than one year - -

12. CuRRENT LIABILITIES – PAyABLES

2014 $

2013 $

Trade payables 56,224 90,652

Accrued creditors 329,880 376,172

GST payable 421,178 479,059

Other payables 126,445 203,304

933,727 1,149,187


13. RECONCILIATION OF NET CASH FLOWS FROM OPERATING ACTIVITIES

2014 $

2013 $

Operating surplus/(deficit) after income tax 655,035 354,031

Depreciation and amortisation 353,192 338,740

Change in fair value of investment - -

Interest expense for financing activity - 5,926

Changes in assets and liabilities

(Increase) decrease in net interest accrued (3,854) -

(Decrease) increase in provision for doubtful debts 7,489 -

Decrease (increase) in debtors 561,404 (1,074,689)

Decreaes (increase) in other assets (23,513) 338

Increase (decrease) in accounts payable and provisions (182,787) 270,314

Increase (decrease) in fees and income in advance (393,668) 611,299

973,298 505,959


14. RELATED PARTy INFORMATION

a) Transactions with related parties

During the current year, the company entered into transactions with directors and their director related entities within normal customer relationships on terms and conditions no more favourable than those available in similar arm’s length dealings. There were no other transactions with directors and no material transactions with other related parties during the year ended 30 June, 2014.

b) Key management personnel

The key management personnel of the company are the directors and executive officers who had authority and responsibility for planning, directing and controlling activities of the company for the year. The following individuals were the key management personnel who held office during the year.

Non-executive directors:

• Jim Minto: Chair• Brian Delaney• Michael Dwyer• David Elia• Damian Hill• Brad Holzberger

• Roslyn Ramwell• Nicolette Rubinsztein• Dean Thomas• Jane Perry• Anthony Lally (resigned 25 October, 2013)• Peter McNeil (resigned 14 November, 2013).

No fees are paid to non-executive directors of the company.

Executive key management personnel:• Pauline Vamos: Chief Executive Officer • Tim Buskens: Chief Operating Officer (appointed 28 April, 2014)• Ross Clare: Director Research • Fiona Galbraith: Director Policy• Katrina Horrobin: General Manager Product, Marketing & Brand.

c) Key management personnel remuneration

Details of the remuneration of management personnel are set out in the following table, disclosed in remuneration bands of $50,000:

Remuneration band2013/14 number of management

personnel within remuneration band2012/13 number of management

personnel within remuneration band

$150,001 – $200,000 1 1

$200,001 – $250,000 1 2

$250,001 – $300,000 2 0

$300,000 and over 1 1

Amounts above have been annualised for key management personnel who joined during the year.

Total summary of remuneration for key management personnel:

2014 $

2013 $

Short-term employee benefits 1,166,032 835,088

Post-employment benefits (superannuation) 95,644 72,604

Other long-term employee benefits 18,263 15,020

1,279,939 922,712

d) Service agreements

Remuneration and other terms of employment for the CEO and executive officers are formalised in service agreements.


15. FINANCING ARRANGEMENTS

2014 $

2013 $

Corporate card 100,000 100,000

Unused at balance date 88,809 88,116

Bank guarantee 283,461 283,461

Bank guarantee provided by Westpac in favour of AMP Life Ltd for the premises leased at Level 6, 66 Clarence St, Sydney, NSW 2000.

16. FINANCIAL RISK MANAGEMENT

The company’s activities expose it to a variety of financial risks: market risk (including interest rate risks and price risk), credit risk and liquidity risk. The company’s overall risk management program seeks to minimise potential adverse effects on the financial performance of the company. The company uses different methods to measure different types of risk to which it is exposed. These methods include monitoring of the investment and banking arrangements and ageing analysis for credit risk.

Risk management is carried out by management with oversight by the Finance & Risk Committee. The Finance & Risk Committee reviews and updates the risk management register annually covering specific areas. The company holds the following financial instruments:

2014 $

2013 $

Financial assets

Cash and cash equivalents 8,038,635 7,313,799

Trade and other receivables 2,630,634 3,195,673

Total financial assets 10,669,269 10,509,472

Financial liabilities

Trades and other payables (933,727) (1,149,187)

Total financial liabilities (933,727) (1,149,187)

The carrying amounts of trade receivables and payables approximate their fair values due to their short-term nature.

Fair value measurementsThe fair value of financial assets and financial liabilities must be estimated for recognition and measurement for disclosure purposes.

Market riskPrice riskMarket price risk is the risk that the value of an instrument will fluctuate as a result of changes in market prices, whether caused by factors specific to an individual investment, the issuer of that investment or all factors affecting all financial instruments traded in the market.

ASFA does not hold any investments subject to price risk.


Interest rate riskThe company’s main interest rate risk arises from cash and cash equivalents and distributions from investments, which expose it to risks associated with the effects of fluctuations in market interest rates. The company monitors the level of cash maintained and the impact of changes in interest rates on expected levels of return.

At 30 June, 2014, if the interest rates had changed by -/+ 100 basis points from the year end rates with all other variables held constant, the operating surplus would have been $80,386 lower/higher (2013: +/- 100 basis points, $73,138 higher/lower surplus) as a result of lower/higher interest income from these financial assets.

Credit risk Credit risk is the risk that another party to a financial instrument will fail to discharge an obligation or commitment it has entered into with the company.

Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions and trade receivables. There is no independent rating of financial assets; risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Invoices are required to be settled within trading terms and the aged debtors are closely monitored.

The maximum exposure to credit risk at the reporting date is the carrying amount of term deposits and receivables (refer Notes 4 and 5).

Liquidity riskPrudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of credit facilities and the ability to close out market positions. The company manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. The financial liabilities are predominantly due within one month.

17, EVENTS OCCuRRING AFTER THE REPORTING PERIOD

There are no matters or circumstances that have arisen since the end of the financial year not otherwise dealt with in the financial report, which significantly affected or may significantly affect the operation of the company, the result or the state of affairs.


diReCtoRs’ deClARAtionfor the year ended 30 June 2014

In the directors’ opinion:

(a) the financial statements and notes set out on pages 33 to 47 are in accordance with the Corporations Act 2001, including:(i) complying with accounting standards, the Corporations Regulations 2001 and other mandatory professional

reporting requirements; and(ii) giving a true and fair view of the company’s financial position as at 30 June, 2014 and of its performance for

the financial 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, and

(c) the financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board.

This declaration is made in accordance with a resolution of the directors.

Jim MintoChair

Roslyn RamwellDirector

Sydney15 August, 2014


independent Audit RepoRt

SecretariatPrincipal Registered Office in Australia

Level 6, 66 Clarence StreetSydney, NSW 2000.

TF

(02) 9264 9300.1300 926 484.

AuditorsPricewaterhouseCoopers.

BankersWestpac Banking Corporation.

Australian Business Number (ABN)29 002 786 290.

asfa annual report 2014 - superannuation.asn.au

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