asial annual financial report 2014

ANNUAL & FINANCIAL

REPORT

2014

The peak body for security professionals

2 ASIAL Annual & Financial Report 2014

ABOUT ASIALThe Australian Security Industry Association Limited (ASIAL) is the peak body that represents the security industry in Australia. With approximately 3,000 members, ASIAL provides support to members operating professional and profitable businesses that deliver quality services to their customers.

VISIONWe are the leading security association where membership is a mark of distinction valued by the members and the community.

MISSIONTo support our members, promote standards and safeguard public interests.

www.asial.com.au

CONTENTSPresident's Report 4Secretary’s Report 5Operating Report 6Director Profiles 14Directors' operating report 17Directors' declaration 20Independent audit report to members 21Statement of comprehensive income 22Statement of financial position 23Statement of changes in equity 24Statement of cash flows 24Notes to the financial statements 25

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

McKinnon, Neil McLean, Damian Waters

National Reference Group John Fleming, Peter Johnson, David MacLagan (part), Darryl Milling, Suzette Po-Williams, Robert Seth (in addition to the Board)

Past President Ged Byrnes

Auditor Foster RaffanSolicitor/Attorney Goldrick Farrell Mullan

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

SECRETARIATChief Executive Officer & Secretary Bryan de CairesGeneral Manager John FlemingManager, Membership Sylva PechackovaFinance & Administration Manager Fiona RoundsMember Liaison Officer Tania LairdSenior Membership Officer Alexandra Firth Database & Website Officer Nadine KeadyMembership & Accounts Coordinator Ivy Xu Membership Coordinator Leonie Fraser Membership Coordinator Kamiya TanwarMembership & Cabling Coordinator Luke Moran Membership Assistant Gil Yahalom

ASIAL Annual & Financial Report 2014 3


PRESIDENT'SREPORTOnce again it is my great honour to present the ASIAL President’s Report for the year.As a vital national industry it is important that we do not underestimate the collective power we have when lobbying government and industry regulators. As the peak national industry body, we are mindful of our responsibility to provide a strong voice and advocacy for the industry. There are changes that need to take place in our industry – and we will not let up until we see those changes in place. As someone who has worked in the security industry for more than 30 years, it never ceases to amaze me how each year brings new challenges with it. The past year has been no different. There is no denying that technology is transforming our world. In the security industry this is very apparent. As anyone who walked around the Security 2013 or Security 2014 shows would attest, the IP age has well and truly arrived. With it comes a range of new opportunities and challenges for the industry. Technology is also transforming the way that we as an Association do business. As someone who is a bit ‘old school’ when it comes to the world of social media, I was a little sceptical about the Association’s foray into this space. However, I am pleased to advise that the uptake has been very encouraging. The Association’s LinkedIn and Twitter followers are growing, as is the interaction with members through our blogs and online forums.The upgrade of the ASIAL website has resulted in an easier to use site incorporating responsive design, which means that the site automatically configures itself depending on the device type being used ie smartphone or computer. The outsourcing of non-core policing functions through public / private partnerships is a move that is attracting growing interest. To explore this issue, in September 2013 we commissioned Dave Owens APM, former NSW Deputy Commissioner with NSW Police, to prepare a discussion paper for us. The report published in February 2014 found that there is growing interest in the area of Public Private Partnerships, not only by Government and Police but by a community who are better informed due to the expansion of social media. As society develops and ‘social migration’ occurs, society’s views on who will deliver what service will become more flexible. The report also found that there needs to be a consistent push by private security for a National Model of Regulation to ensure consistency (not inconsistency) in the provision of services. The Association has committed to helping its members understand and meet their

obligations under Commonwealth workplace laws through the signing in May 2014 of a three-year Memorandum of Understanding (MOU) with the Fair Work Ombudsman.The memorandum – which serves as a formal agreement between the two organisations – provides an opportunity for a working partnership that will improve the workplace practices of security operators. We look forward to working with FWO on issues that help create a better environment in which our members can grow their businesses.As officers of a Registered Organisation, in May the ASIAL Board undertook a one-day approved Governance and Finance for Registered Organisations course presented by The Australian Institute of Company Directors. The Board’s attendance was in accordance with the requirements of s. 154D of the Fair Work (Registered Organisations) Act 2009. As a Board we have endeavoured to interact with members whenever we can. In this respect, as we have held Board meetings during the course of the year I have welcomed the opportunity of interacting with members in Brisbane, Sydney, Melbourne and Hobart.I would like to take this opportunity to thank my fellow Board Directors, State Convenors and Special Interest Group members, who generously give their time and expertise for the betterment if the industry. Finally, thank you to you, our members. Without your ongoing support the Association would not be what it is today.

Kevin McDonaldPresident, ASIAL

There is no denying that technology is transforming our world. In the security industry this is very apparent.


SECRETARY'SREPORT

Despite a softening economy and the flow-on impact of the NSW Government’s decision in 2012 to abandon the co-regulatory model, the Association was able to return a stronger than budgeted result. As a result, a surplus of $179,468 was posted for the year. A successful year has given the Association a sound base for the year ahead. The key drivers behind this result were the stronger than forecast trading income (underpinned by strong membership subscription revenue and the unscheduled staging of two annual exhibition and conference events within the financial year) and lower than budgeted expenses (due primarily to reduced staff expenses). Whilst the Association experienced some attrition among its Small/Medium-sized members, these were to some extent offset by the 278 new members who joined during the course of the year. In recent years the Association has sought to diversify its revenue base through initiatives such as the strategic partner program. This has meant that whilst membership subscription income for the year fell by $87,422, overall total revenue was only down by $11,518.Whilst the Association enjoys the ongoing support of major providers of security services, the bulk of its membership is comprised of Small/Medium Enterprises. Indeed, corporate members with an annual turnover of $500,000 or less account for approximately 75% of the membership, those with a turnover of $500,000-$10 million 23% and those with a turnover of more than $10 million 2%. In servicing the needs of members, the Association strives to deliver benefits and services that meet the diverse needs of its members.

The Association’s ongoing awareness campaign continues to promote the use of ASIAL member companies to consumers. This year a total of $80,375 expended on consumer awareness initiatives, against the $105,805 contributed through the member marketing levy (the outstanding balance will be invested in consumer awareness initiatives over the coming year). Accumulated reserves rose to $2,998,053, providing the Association with a solid foundation to accelerate membership growth and retention. Building on the success of the past year, we will continue to strengthen our engagement with members, expand the range of services we offer and provide a strong voice for the industry.

Bryan de CairesChief Executive Officer & Secretary

5-Year Performance Summary (2010-2014)$3,500,000

$3,000,000

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$02010 2011 2012 2013 2014

Total Income

Total Expenses

Profit/Loss

Equity


OPERATINGREPORTFor more than 45 years ASIAL has been a relevant and important part of the security business environment in Australia. At the heart of what we do is focussing on delivering services that meet the needs of members and offer value.At the end of June 2014 there were a total of 2,912 members, of which 2,559 were Corporate, 201 Associate, 142 Individual, 4 Affiliate and 6 Life members. Whilst the figure of 2,912 represents a reduction from the previous year, the underlying retention and acquisition rate of members has been strong. In November 2013, Members were given an opportunity to provide an assessment of how well the Association was performing against its four key strategic priorities. The results are shown below: 1. To promote a positive image of the security

industry– 73.68% of respondents thought the association was highly effective or effective.

2. To promote the highest levels of professionalism within the industry - 75.86% of respondents thought the association was highly effective or effective.

3. To provide strong advocacy for the industry by acting – 70.59% of respondents thought the association was highly effective or effective.

4. To provide value to members – 70.69% of respondents thought the association was highly effective or effective.

The above priorities were reviewed and reaffirmed at a Board strategic planning session held in February 2014. Strengthening the Membership value proposition offered by the Association continues to be an important element of our vision. The ASIAL team continually seeks to explore potential new opportunities to better service the needs of members, as well as identifying more efficient ways that the organisation can operate. Member communicationThe Association understands the importance of providing members with access to relevant information on a timely basis. As a result we have continued to invest resources to expand and improve our channels of communication, which this year has seen a significant expansion in our digital presence. The ASIAL Secretariat continues to be kept busy handling new member applications and renewals, as well as responding to enquiries from members and the community. Over the course of the year the Secretariat responded to approximately 12,000 inbound phone enquiries and initiated more than 14,000 outbound calls to members. During the same period over 65,000 incoming emails were received and 50,000 sent out in reply to member queries.

Member Bulletins – 20 Member Bulletins were issued during the course of the year, providing members with an invaluable reference tool on topical industry issues.National Licensing overview – a summary of national security licensing requirements was made available to all members. The document was designed for members to send out to existing and prospective customers.NBN - a ‘plain English’ document designed for members to send out to their customers to explain what they need to be aware of when the NBN is connected to their premises.New Member stickersA new look ASIAL Member sticker was made available to members. Additional copies are available on request from the ASIAL Secretariat at no charge. Member recognition programThe Association’s member recognition program grew by 33% over the year, with 636 members now participating. The program includes 15 Platinum Members (over 25 years membership); 61 Gold (16-24 years); 320 Silver (11-15 years) and 240 Bronze (6-10 years).Top 10 member benefits 1. Development of industry codes / standards2. Compliance / regulatory advice and support 3. First Alert newsletter4. ASIAL website – www.asial.com.au 5. Technical advice and support6. Member bulletins7. Workplace Relations advice and support8. Security Insider magazine9. Industry research10. Use of the ASIAL member logoSource: 2013 ASIAL Member Survey


Website The public face of the Association underwent a major transformation this year with the launch of a new look website in October 2013. It had been 5 years since any major changes had been undertaken and a refresh of style and functionality was needed to better serve the needs of members.One of the key requirements for the upgrade was to implement a responsive design with an optimised mobile layout, to service the growing number of visitors using mobile devices to access the site. What this means is that the site automatically formats itself to respond to the type of device being used ie smartphone, tablet or desktop. Site navigation and log-in access were also improved.

Social media integration was built directly into the home page with live feeds from ASIAL’s Twitter account and the newly created ASIAL Blog. The blog contains articles on issues facing the industry and the wider community. Members can engage with the association like never before by commenting on the blog posts, following us on Twitter or connecting with us on LinkedIn. A new industry forum is planned for late 2014 to offer a platform for industry professionals to express opinions and discuss relevant issues.Access to the latest industry news, guidelines, regulations, licencing information, standards and business support information continue to be available in the “Resources Centre”. Members can further access business templates, industrial relations advice, bulletins, codes and more in the secure member area.Consumers using the site are catered for with a dedicated landing page and information portal. Here they are given information on security products and services, advised how to choose a security provider and encouraged to use the site’s search tool to “Find an ASIAL member”.The ASIAL website uses the latest in technology with the Kentico CMS platform. Kentico Software is one of the world’s industry leaders in creating successful websites, online stores, community sites and intranets. The company has offices in the US, UK and Czech Republic and more than 1,100 partners in 80 countries.ASIAL’s new look site was recognised internationally as one of the top 10 websites by Kentico in October 2013 and the only Australian (partner) site to feature in the Top 10 sites globally.

Communications and engagement In 2013/2014 the Association communicated with the wider community through various media channels, including print, TV, and outdoor media. In addition, the Association provided commentary on a range of issues over the year. The Association’s consumer awareness campaign included advertising in the Qantas ‘The Australian Way’ magazine, a Crime Stoppers Community Service Announcement and through the airing of a television commercial at the Tennis Fan Zone area for the 2014 Australian Open at Customs House (Sydney) and at the Moomba festival (Melbourne).Another area of activity was the provision of articles for a number of industry publications, including Electrical Solutions, Govlink, Education Matters and Pubs and Clubs Magazine. Social Media - the Association’s social media presence has grown significantly over the year, with our LinkedIn followers almost at the 2,000 mark and close to 100 Twitter followers.First Alert - the Association’s e-newsletter (First Alert) underwent a major refresh and is now distributed fortnightly to keep members better informed.

Webinars – during the course of the year the Association started offering webinars to members. The online webinars provide an easily accessible option for members to be briefed on topical industry issues.Security Insider - Security Insider continues to provide an important benefit to members. For the first time, the Association engaged an independent media audit service the Audited Media Association of Australia (AMAA) to audit the industry journal for the period of April 2013 to March 2014. AMAA issued ASIAL with a CAB Certificate confirming the average number of copies printed and delivered for distribution within the twelve-month period.

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ASIAL Events - during the year the Association attracted approximately 1,300 attendees to its events. In addition, the Security 2013 Exhibition and Conference (Sydney) and Security 2014 Exhibition and Conference (Melbourne) both attracted over 4,500 participants. After 29 years, the event continues to be the premier showcase and networking opportunity for the industry.Customer Management System enhancementsEnhancements to the ASIAL database and integrated web components over the year served to further streamline the Association’s administrative processes. New services, such as the ability to submit compliance audits online, feed directly into the member database, giving members greater access and control over their own membership records. Membership renewal notifications are now sent via email directly from the Association’s Customer Management System and online member payments are immediately attributed to a member’s record allowing for a smoother member renewal process.

Strategic PartnersThe Association continues to forge strong strategic partnerships with organisations that are able to provide members with tools and services to help run their business. In addition to arrangements in place with Aon, Australian Super, Diversified Communications Australia and Goldrick Farrel Mullan, the association welcomed a new strategic partner - simPRO Software.In July 2013 ASIAL formed a strategic partnership with simPRO Software offering members access to a business management tool that can simplify business processes, control and minimize materials and labour costs and reduce administration time. The tool instantly provides a snapshot of all operational processes i.e. estimating, scheduling, project management, purchasing, catalogues and invoicing.


Industrial RelationsASIAL’s industrial relations service covers two core areas – individual advice / assistance and representation to corporate members and broader representation of the security industry to industrial tribunals, government agencies and regulators.In 2013/14 we provided members with practical advice on a range of issues including:• Disciplinary matters and dismissals• Redundancies• Award interpretation• Dealings with Unions and the Fair Work

OmbudsmanWe also provided in house and open training sessions to members for supervisors and managers to improve their skills and understanding of how to effectively deal with employee relations’ issues.We introduced webinars as a training opportunity for members unable to attend other training programs, as well as a number of Industrial Relations Bulletins. Security Services Industry Award 2010 - 4 yearly reviewWe are now in the fourth year of the modern award system. All pre-modern awards from states and territories have been transitioning since 1 July 2010 and that process was completed on 1 July 2014 when only the Modern award for a particular industry now has application.We surveyed members to gain an insight into the need for changes to our modern awards ready for the 4 yearly review. The review process will be in two parts, common issues and individual awards. ASIAL has made preliminary submissions to vary the Security Services Industry Award 2010 and we have attended conferences with Commissioner Roberts who will deal with Award changes. Our submissions seek changes to:• Coverage – joining Facilities management

companies to the award when that provider contracts security officers to clients;

• Changes to definitions, including First response, Central/Monitoring Station and broken Shift Allowance;

• 12 hour Shifts as standard in the award;• Changes to the new consultation provisions as

they apply to roster changes; and• Clarification of overtime rates for casual

employees.We have also indicated that ASIAL may make further submissions on Part Time employment and Penalty rates subsequent to the outcome of common issues.The Fair Work Commission (FWC) has made it clear that any submissions for variations to an award will need to be supported by compelling evidence.NB Penalty Rates have been identified as one of the most important impediments to doing business in the Security industry.

The Fair Work Commission has produced an Exemplar award – Security Services Industry Award 2014 An exemplar (or sample) award incorporating a number of changes in style and format has been prepared based on the Security Services Industry Award 2010 (the Security Award).The Security Award was chosen because it is to be reviewed in the first group of awards. It is also the basis for a large number of enterprise agreements, which contain flat rates and have required undertakings to ensure they pass the Better Off Overall Test, suggesting there may be some confusion about employee entitlements under the award.We have reviewed the exemplar award and provided comments on form and content to the FWC. These comments are available on the FWC website.Memorandum of Understanding between the Fair Work Ombudsman (FWO) and ASIALIn May 2014, ASIAL signed a Memorandum of Understanding (MoU) with FWO. At this stage only two other industry associations have been approached by FWO to enter into an MoU.The purpose of the MoU is to provide a framework for both parties to enhance existing relationships and work together to improve compliance with Commonwealth workplace laws. In time ASIAL and FWO will work together to develop:• fact sheets and guides and other

educative information; • mutually agreed award interpretation

and wage rate documentation;• newsletters and electronic

communication channels;• communications campaigns. All of which will improve the professionalism of the industry, member compliance and ASIAL’s role as the peak body representing the security industry.Local Government Procurement Initiative In 2013 ASIAL raised concerns with FWO about the lack of transparency and fairness in the awarding of local government tenders to private security companies, often at the lowest price.

OPERATINGREPORT

“This MoU highlights ASIAL’s commitment to making compliance with workplace laws a high priority across the industry.” Natalie James, Fair Work Ombudsman


OPERATINGREPORTTo its credit FWO was willing to work with ASIAL to develop what became the Local Government Procurement Initiative. The focus of the initiative in the first instance is on local government with the aim of shifting the focus from price to performance. FWO plans to run a number of educative webinars and presentations for local government explaining procurement chain obligations. It will also audit the procurement practices of a number of councils in each state next year (2015). Under s550 of the Fair Work Act 2009 FWO may also pursue convictions against individuals and corporations (including Local Councils who are knowingly involved a contravention – like being aware that the employee couldn’t possibly be paid correctly based on the price of the service. The awareness campaign will benefit security service providers who are complying with workplace laws by helping to create a level playing field.Low Paid Authorisation Application (LPA) United Voice – ACT BranchIn late 2013 the United Voice ACT Branch made an application to the fair Work Commission to join four security companies to a Multiple Employer Agreement. LPA’s are rare. There have been only 3 applications since the commencement of the

Fair Work Act 2009. The effect of an LPA is to provide low paid employees, in an industry who have little or no bargaining power, with access to enterprise bargaining with a number of employers to enable potential increases in rates of pay and allowances.After developing submissions and witness statements this matter went to hearing in Canberra for a week in June 2014. A decision is expected to be handed down later in 2014. The ramifications of this decision if found in favour of the Union will be that the employers involved will be required to participate collectively in negotiations with the Union for Multi Employer Workplace Agreement.

Managing Cash in Transit Security Risks Code of Practice (CIT-COP) and the Road Safety Remuneration Tribunal inquiry into the Cash in Transit IndustryThe ASIAL Code of Practice on managing security risks associated with cash-in-transit operations is to be read in conjunction with the approved code of practice under section 274 of the Work Health and Safety (WHS) Act.It is a practical guide to assist members to meet their WHS responsibilities and importantly mitigate risks associated with the transportation and delivery of cash and/or other valuable by use of armoured or non-armoured vehicle(s).

In July 2014 ASIAL the Road Safety Remuneration Tribunal announced an inquiry into the Cash in Transit Industry. The inquiry:• may contain any provision that the Tribunal

considers appropriate in relation to remuneration and related conditions for road transport drivers to whom the RSRO applies; and

• may impose requirements on an employer or hirer of the road transport drivers, or a participant in the supply chain in relation to the road transport drivers.

The inquiry will hold inspections and receive submissions for affected parties until at least October 2014.ASIAL has provided comment on the Draft Statement on the conduct and content of the inquiry and will participate fully to ensure the interests of members in the CIT sector are properly considered in any recommendations or orders.Of particular concern is the proliferation of courier type operators becoming increasingly involved in the transportation of cash on behalf of clients.ResearchIn a tightening fiscal environment, Governments across the country are searching for ways to balance budgets and increasingly they are turning to Public Private Partnerships to achieve these savings. To explore this issue further ASIAL commissioned Dave Owens APM, former NSW Deputy Commissioner with NSW Police to explore the opportunities.The report found that there is growing interest in the area of Public Private Partnerships, not only by Government and Police but by a community who are better informed due to the expansion of social media. The Queensland Government has introduced the concept of ‘contestability’ for contracts and provision of services. This has meant that the Queensland Police Service has found itself having to compete in the provision of service to areas where there has traditionally been no competitors. Overseas experiences have shown that this is a developing trend and other Police Forces need to consider and research partnerships, before it is thrust upon them.In addition, the report states that there needs to be a consistent push by private security for a National Model of Regulation to ensure consistency (not inconsistency) in the provision of services.


Electronics The electronics sector continues to be dynamic. We have engaged with government, industry and members in addressing a wide range of issues and providing advice. We continue to support members through our involvement on a number of committees such as the Australian Communications Media Authority (ACMA) Construction and Property Services Industry Skills Council (CPSISC), NBN Co, Registered Cablers and Communications Alliance.National Broadband Network - during the year ASIAL continued to engage with NBN Co to provide information to support the security industry as deployment of the National Broadband Network (NBN) gets underway. ASIAL is an active participant on two NBN working groups and with the committee members of Communications Alliance supported the drafting of Industry Guidance Note (IGH 004). This document sets out the roles and responsibilities for stakeholders in the migration of back to base security and medical alarms. The government has announced a hybrid of technologies to drive the NBN. NBN Co has engaged Telstra to begin a pilot fibre to the node rollout. It is vitally important for the security industry to be informed about the NBN developments and communicate with their customers to offer solutions and maintain the security systems integrity. With all of the changes happening in the telephony environment we have advocated that security installation work must be carried out by a security licenced technician that holds an ACMA cablers registration card.Security Technician Certification (STC) - this ASIAL initiative was developed to support the security industry in the development and professional recognition of technicians. Designed to provide a career pathway for security technicians the program is also an initiative to attract and retain skilled workers capable of meeting the future needs of the industry. The Australian government highlighted a skills shortage for technicians given the impending NBN rollout and put in place funding for employers and employees to update their skills. National Alarm Response Protocol - ASIAL has continued to engage with the National Emergency Communications Working Group (which includes communications representatives from Police, Fire and Ambulance services across Australian and New Zealand) to progress development of a national alarm response protocol. A standardised national will provide an opportunity for emergency service operators and the security industry to work together for the benefit of all stakeholders.Monitoring Centre Certification - the Association continues to operate the highly respected monitoring centre certification program in accordance with Australian Standard 2201-2.ASIAL Cabling Registry - Acting on behalf of the Australian Communications and Media Authority (ACMA) ASIAL continues to provide cablers with advice and support to comply with cabling registration requirements. ACMA is responsible for setting out the regulatory requirements for registration and installation practices of cablers.In 2012 ACMA notified all associated training and cabling sectors that module pathways training would cease by 1 July 2014. This effectively

provided cablers with a two year transition period. Cabling provider rules changes require any cabler performing specialised cabling work, which is aerial, underground, optical fibre, structured, co-axial or broadband to hold the necessary competencies relevant to perform that cabling work. An important change relates to the reduced cabling experience required, 360 hours for open registrations and 80 hours for restricted registrations. Proof must be provided that these hours are actual on the job cabling work and not classroom cabling activities. For instance a declaration may be provided by:• Suitably recognised industry qualification involving

cabling practices example qualified electrician or• A statutory declaration signed by the candidate

in the presence of an authorised witness setting out the candidates experience or

• A detailed logbook of cabling experience showing dates and types of work or

• A signed statement by an employer or a registered cabler by whom the candidate has been directly supervised detailing the candidate’s experience.

Because of these key changes ASIAL’s cabling registry has been kept busy responding to queries from cablers anxious to understand what the new requirements mean and how they should go about gaining competencies to continue to legally work in the industry. Registered Training Organisations were kept busy as cablers tried to book onto courses to either upgrade from restricted to Open registration and also gain specialised cabling competencies. During the 2013/2014 financial year cabling registrations grew by 131 to 5,536 (up from 5,405 in 2013). The majority of cablers (4,618) opted to gain ‘Open’ registration as opposed to the limited ‘Restricted’ cabling registration (902), with the remaining balance (16) being for ‘Lift’ work.ASIAL continues to engage with ACMA and other cabling registrars to promote ongoing compliance and training in this sector. These qualifications have been deemed essential for the development of a skilled labour force that can work on newer IP technologies and the National Broadband Network.ASIAL, other cabling registrars and the International Copper Association of Australia have worked together to establish a website that provides guidance for consumers and industry regarding the rollout of the National Broadband Network - www.registeredcablers.com.au.Finally, over the course of the year the ASIAL cabling registration process underwent an upgrade to enable cablers with the option to apply and renew online. ASIAL’s secure online renewal portal provide an easy to use and convenient means of registering and uploading required information.

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OPERATINGREPORT

Manpower The Association continues to provide support to members servicing the manpower sectors of the security industry. The Association welcomed the decision taken by the Security Industry Regulators Forum to remove training competencies for the security guard licence sub-category of monitoring centre operators. ASIAL has for some time advocated for a change and welcomes the common sense approach taken by regulators. The change returns the maintenance of an individual’s competency and their training to the monitoring centre under the Australian Standard 2201.2 - Intruder alarm systems – Monitoring centres.

Training standards were placed under the spotlight with the announcement by the Australian Skills Quality Authority (ASQA) of a strategic review into the quality of training and assessment in the security industry. Whilst the review will not be completed until late 2014, the focus is on examining poor practices and identifying appropriate actions to improve the system. ASIAL is represented on the management committee undertaking the ASQA review. It is anticipated that the project will provide a ‘line in the sand’ for the security industry to gain confidence in the integrity of training certificates issued for licensing and employment purposes.Shortcomings in security workers Language, Literacy and Numeracy (LL&N) communication skills is another issue that has been identified. The Federal Government has funded the Construction and Property Services Industry Skills Council (CPSISC) to work with security regulators and employers on a review of LL&N skills in the industry. The project will identify licensing, training and develop strategies to support building those skills. The project titled ‘Loud and Clear’ has a completion date of September 2014. ASIAL has a position on the program’s ‘critical friends group’ to provide industry representation and to ensure that outcomes support and improve the LL&N competencies within the security industry.ASIAL’s manpower Special Interest Group (SIG) continues to provide an opportunity for members to raise areas of concern and target resources and efforts to provide member support, industry research and to make representations to government and regulators. The Association continues to highlight areas of industry concern to government and regulators. Among some of the issues raised include:1. Courier companies transporting cash – seeking

a clear determination as to what constitutes a licensable cash in transit activity, particularly, whether the act of 'protecting or guarding' is deemed to include couriers delivering cash for a client.

2. Fingerprinting procedures for interstate security licence applicants – seeking support for implementation of ‘one set suits all’ approach to reduce red tape and increase business productivity.

3. Licensing of Interstate Monitoring Centre Operators - calling for the introduction of national licensing for the security industry.

4. ‘Sham’ Sole Traders / Australian Business Number (ABNs) - seeking support to ensure that there is consistent legislation across states and territories to prevent the abuse of individuals employed through sham contracting arrangements.

5. Mutual recognition applications - reducing the red tape - seeking a review of the procedures for mutual recognition applications by security licence holders to provide for a more streamlined and consistent national approach.

The advice and support provided to members on operational procedures, licensing, and legislative compliance continues to be a highly valued member benefit.Regulatory AffairsThe Association continues to maintain a focus on engagement and dialogue with government and regulators across the country. This has taken the form of face to face meetings, participation on industry advisory councils and through submissions. State and Federal regulators have addressed members at industry briefings held during the course of the year. Among the submission lodged by the Association include: • Submission on draft AML/CTF Rules relating to

Customer Due Diligence• Back-up power supply for NBN Services• Courier companies transporting cash• Licensing of Interstate Monitoring Centre

Operators• SA - Cross Government Screening Working Group• NT Skills Funding Submission• Issue Paper Sham Sole Traders – ABNs• Fingerprinting procedures for interstate security

licence applicants• Monitoring Centre Operator training• Mutual Recognition• Proposed changes to Security 1E licence

(Monitoring Centre Operator)• NSW Skills Funding Submission• SA Inquiry into Surveillance Devices• AUSTRAC Legislative Review• Inquiry into Aviation and Maritime Transport Security

(Office of the Inspector of Transport Security) Communicating with government and advocating for the industry is an important role that the Association performs on behalf of members. Whilst the rate of progress with government is often slow, it is vital that we continue to provide a voice for reason for the industry. In February we lodged a submission to the federal government regarding the review of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AMLTCF 2006). In representing the interests of the CIT sector we sought to reduce the administrative burden on reporting financial transactions and the fees imposed by AUSTRAC under their cost recover model. The Association welcomed the announcement in the 2014 Federal Budget of changes to the AUSTRAC cost recovery model. It is our understanding that the changes will mean the majority of small to medium CIT providers registered with AUSTRAC as reporting entities will not now be required to pay any fees for undertaking their part in reporting money transactions in accordance with the AMLTCF Act.In 2013 ASIAL was a major sponsor of Security In Government 2013 held in Canberra and organized by the Federal Attorney General’s department. The Association continues to provide briefings to South Australian Police cadets at the South Australian Police force’s training facility in Adelaide (an initiative commenced in 2012).


Complaints The Association continues to actively manage complaints and disputes in accordance with its Complaints and Dispute Resolution Policy and Procedures. The number of formal complains received this year fell to 11 (down from 20 in 2013). Of these, 6 were related to electronic security issues such as post installation issues and transferring monitored lines between monitoring centres (namely difficulties experienced due to the failure in providing access codes to facilitate the transfer). It must be remembered that where a client owns the alarm panel and subject to contractual matters, they have a right to have their panel managed under their control. Although it is recognised that any technical service intervention required facilitating the transfer may attract a fee.The only manpower related complaint received related to the behaviour of a member organisation with regards to the inaction of patrols and their business conduct.The remaining complaints related to non payment of invoices, defamatory emails, non return of a computer and misrepresentation as ASIAL members.Compliance Compliance and Regulatory issues continue to impact on the day to day operation of members. The Association continues to receive requests from members for compliance and regulatory affairs advice and support. These requests are responded to through access to over the phone advice and support, along with proactive communication with members. The variations and independent nature of State and Territory security regulators continues to complicate security operations nationally and impacts on operational efficiencies and the cost of providing a professional security service. Dialogue and communication continues with regulators across Australia for national harmonisation of security licensing. This has been evident with requests from members seeking advice on licensing, registration, training, professional development, and mutual recognition. As an approved security industry association in Queensland, ASIAL is required to assess a member’s compliance with its code at least once every 3 years. The Queensland Government’s legislative requirement for an Audit of all members holding a Queensland Security Firm licence requires security providers to demonstrate that they follow good business practices and have current policies and procedures in place to run their businesses.The Association has engaged the services of a chartered accounting firm (Assura Group Pty Ltd) to conduct the compliance audits on behalf of its members. 79% of ASIAL members operating in Queensland have completed their compliance audit, with the remainder either in the progress or about to be notified of the compliance audit process. During the course of the year 7 ASIAL members operating in Queensland were expelled due to non-compliance of the statutory audit requirement.

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

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

Regulatory Affairs AdvisorThe Association has in place a range of sanctions that it can impose on a member, ranging from remedial action, financial sanctions or expulsion from the membership.The Disciplinary Committee met twice during the year to discuss disciplinary matters involving the actions and behaviour of member companies. Among the actions resulting from recommendations of the Committee included the expulsion by the Board of 7 non-compliant members in relation to the statutory compliance audit in Queensland; the expulsion of one member relating to their involvement in the Independent Commission Against Corruption (ICAC) Operation TILGA investigation and the imposition of a $120,000 financial sanction on another member relating to the ICAC investigation (continuation of the company’s membership was conditional on accepting and complying with payment of the sanction and meeting the specific compliance requirements. The company subsequently advised that it was unable to maintain its membership as required by the ASIAL Board, and as a result their ASIAL membership was relinquished, effective immediately).A further 3 members identified in the ICAC University of New England were required to provide ongoing evidence of measures put in place to mitigate the risk of the identified behaviour occurring again in the future have been implemented and communicated to employees. During the course of the year 280 Members were expelled from the Association (compared with from 154 in 2013).

Kevin McDonaldDirectorCrows Nest, 1 September 2014.

Chris LuhrmannDirectorCrows Nest, 1 September 2014.

OPERATINGREPORT

PRESIDENTKevin McDonaldGeneral Manager – Business ImprovementMSS Security Pty LtdKevin is a Security Industry professional with more than 30-years’ experience in both the Electronic and Manpower sectors. His knowledge across the broad industry spectrum covers all aspects from sales through to customer delivery, general management and business improvement placing him in an ideal position to understand and appreciate the concerns of members.Kevin is committed to the integrity, standards and improvement of the Security Industry. As the current President and a Director he is fortunate to be able to assist in achieving these goals and raise the Industry’s profile.Kevin has been a Director since 2001 and was actively involved in the Association through State and Special Interest Working Groups for many years prior to being elected to the Board.He has qualifications in Security Risk Management and Marketing Management and is a Licenced Security Consultant in NSW.

VICE PRESIDENTChris Luhrmann, Founder and Principal of SIA Security. Chris has 26 years’ experience in Law Enforcement and the private security and investigation industries, serving with the New South Wales and Queensland Police Services. He has held positions as an investigator, intelligence analyst/officer, and officer in charge and team leader in both local and specialist squads. Chris has gained a wide range of skills, which include conducting security and surveillance operations both internationally and domestically.Since 1990, he has been involved in specialist weapons and tactical & VIP Protection teams and has trained police in firearms and operational skills and tactics. He is also a qualified electrical technician experienced in the use, installation and repair of security and electronic equipment. Chris is a member of the Australian Institute of Company Directors and has vocational training in Business Management.

Bryan de Caires, Chief Executive Officer & Secretary.Bryan de Caires has 25 years senior management experience across a range of industry sectors. His early career was as a senior editor with Euromoney Publications Plc, a global finance and business publisher based in London. In 1990 he moved to Australia to take up a position as General Manager with AIC (later renamed Terrapinn) - a business media company. In 1997 he was appointed Managing Director of the company’s exhibition business. Prior to joining ASIAL in 2000, he spent a year as National Manager, Professional Development with the Australian Human Resources Institute. He is a Director of NSW Crime Stoppers and a Member of the Australian Institute of Company Directors.

DIRECTORS

Rod Anderson, Sales and Commercial Director, G4S Secure Solutions (PNG) Ltd.Rod has over 36 years security and related experience, specifically in the areas of management, operations, training and business development. After a distinguished 20 year career in the Australian Regular Army, and prior to joining G4S Secure Solutions in October 2013, Rod progressed through a number of senior management positions within ISS Security including Regional General Manager of Western Australia, and then later as the Regional General Manager of Queensland and the Northern Territory, General Manager Special Operations, National Business Manager and finally National General Manager Operations. He has extensive experience in the delivery of security and protection to Defence Bases, Aviation, Maritime and Critical Infrastructure. Rod has also served on a number of security industry review committees and has a number of tertiary qualifications in business, HR and security related disciplines and is a licensed security consultant and trainer in New South Wales.

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


DIRECTOR PROFILES

Antony Elliott, Managing Director, E & C Security Systems Pty Ltd.Antony was first appointed to the ASIAL National Executive in 1994. He held the position of New South Wales Branch Chairman for many years and was Individual Member Division Chairman. He was elected President in 2001 and remained in that position until 2006. He has served on the board as a director since standing down as President and is committed to assisting with the future direction of the Association.Antony played a crucial role in ensuring industry acceptance of the Cabling Provider Rules and has contributed to preserving the security industry’s interest in this area since. Antony is the Managing Director of E & C Security Systems Pty Ltd, an electronics based security company, where he has been involved with the general management of the company for almost 30 years.

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

Neil McLean, Consultant, Liamsans Security Solutions.Neil has been involved in the security industry for more than 30 years, and was elected to the ASIAL board in 2012. Neil has worked in both the manpower and electronic security sectors, during his career. His extensive experience means he has an understanding of the issues faced by the industry across all sectors. He has an extensive background in system design monitoring, installation and servicing of electronic security, CCTV and access control systems.Neil is also the ASIAL State Convenor for South Australia, a position he has held for the last 5 years. Neil has seen the security industry grow to one that is highly professional and well regarded by both consumers and governments alike through the work of ASIAL.

Damian Waters, General Manager Security, Linfox Armaguard.Damian has experience in the law enforcement and security industries spanning 25 years and holds a Diploma of Security Risk Management. He has experience as a member of the Victoria Police and National Crime Authority for 11 years, and 14 years in leadership roles within the private security industry. Currently, Damian is the General Manager Security for the Armaguard Group, responsible for the overall Risk Management of the company and its related entities. Armaguard operates in all States and Territories, which allows Damian to view security matters and their related regulatory issues from a National perspective. Damian brings to the Board of ASIAL his extensive private security industry experience which enables him to understand the challenges faced by ASIAL members and to address these challenges with a fresh approach.


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

16 ASIAL Annual & Financial Report 2014 ABN 91 000 813 365

FINANCIAL REPORT

2014

Your directors submit this operating report for the year ended 30 June 2014. The names of the company’s directors in office during the financial year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated. Their qualifications, experience and special responsibilities are set out on pages 14 and 15 of this Annual and Financial Report.

DirectorRod Anderson Ged ByrnesAntony ElliottChris Luhrmann Mike McKinnonKevin McDonaldNeil McLean Damian Waters

Key objectives of the AssociationFollowing its annual strategic planning session in February, the Board reaffirmed the Association’s key strategic priorities, these included: • To promote a positive image of the industry;• To promote the highest levels of professionalism

within the industry;• To provide strong advocacy for the industry by acting

as a respected and unified voice of the industry;• Provide value to members.

Strategy for achieving these objectivesThrough a range of measures, the Association has put in place strategies to achieve its stated strategic priorities. These include:• Development of new benefits such as interactive

social media channels, online forums and the workplace health and safety system;

• Advocacy for the industry through the lodgment of industry submissions covering a range of issues;

• Collaboration with agencies such as the Fair Work Ombudsman through the signing of an Memorandum of Understanding and engaging with State/Territory regulators on issues affecting the industry;

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

• Provision of professional development opportunities, including industry briefings and webinars;

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

• Ongoing improvement to the Association’s Customer Management and IT systems to better service the needs of members;

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

Measurement of the Association’s performanceThe Association measures performance through a range of metrics, including member acquisition and retention rates; growth in member subscription and non-subscription revenue; media exposure and profile; financial performance against budget.Corporate StructureThe Company is limited by guarantee. The liability of each member in respect of liabilities of the company, as specified in the Constitution, is limited to $100.Nature of operations and principal activitiesThe principal activity of the Company during the financial year was as an Industry Association serving the needs of employers and members within the Australian Security Industry. No significant change in the nature of this activity occurred during the year.Number of recorded MembersThe number of Members recorded in the Register of Members of the Organisation as at 30 June 2014 for the purposes of section 254 (2) (f) of the RAO Schedule was 2,912.

ASIAL Annual & Financial Report 2014 17ABN 91 000 813 365

DIRECTORS' OPERATING REPORT


DIRECTORS' OPERATING REPORTEmployeesThe company employed 12 employees as at 30 June 2014 (2013: 13 employees).Rights of Members to resignIn accordance with section 174 of the RAO Schedule, a member may resign from membership of the Organisation by written notice addressed and delivered to the Chief Executive Officer as per 11.1 of the ASIAL Constitution.Details of Trustee of Superannuation EntitiesNo member of the Board was:i. A trustee of a superannuation entity of an exempt

public sector superannuation scheme orii. A director of a company that is a trustee of a

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

Operating Results for the Period and Review of OperationsThe Association earned a net profit for the year of $179,468 (2013: $117,301). The Association’s reserves rose to $2,998,053. The Association remains committed to its policy of reinvesting a significant proportion of prior year surpluses into maintaining and improving services to members, whilst using the balance to build sufficient reserves for when they are needed. Over the past year ongoing improvements have been made to the Association’s information technology and telephone systems, customer management database site and communications channels. Total revenue from ordinary activities was marginally down on the previous year.Significant Changes in the State of AffairsWith the signing of a 3-year Memorandum of Understanding with the Fair Work Ombudsman reflects the growing role performed by the Association in the area of industrial relations. The effects of the NSW Government’s abandonment of the co-regulatory approach at the end of 2012 continues to impact on the Association, although this is diminishing. Significant Events after Balance DateNo significant events have taken place after the balance date.Likely Developments and Expected ResultsDirectors have budgeted on a loss of $94,450 for the coming year, reflecting the fact that the annual exhibition and conference will not fall during the financial reporting period, in addition the Association is investing on launching a number of new member benefits and bolstering its Secretariat team. The Association’s consumer awareness campaign will continue through funding from the member marketing fee. In addition, the Association is seeking to grow and expand its strategic partner program which supports endeavours to raise industry standards and compliance.

Loans, grants and political donationsThe Association has made no loans, grants or political donations over the past year.Proceedings on behalf of the companyNo person has applied for leave of Court to bring proceedings to which the person is a party for the purpose of taking responsibility on behalf of the company for all, or any part of these proceedings.Indemnification and Insurance of Directors and OfficersDuring the year, the company has paid a premium in respect of a contract insuring directors and officers against: (a) liability arising from wrongful acts committed in their capacity as directors and officers of the company, but excluding dishonesty, fraud, malicious conduct or wilful breach of duty; and (b) the costs of legal representation in relation to such liabilities. The premium paid was $11,140, which also includes cover for the company in respect of loss it suffers as a result of wrongful, wilful or fraudulent acts of its directors, officers and employees. This contract complies with Section 199B of the Corporations Act 2001.Proceedings on Behalf of the CompanyNo person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings.AuditorsFoster Raffan continues to act as auditors in accordance with Section 327 of the Corporations Act 2001.Directors’ Emoluments and TransactionsNo emoluments have been received or are due and receivable by Directors from the company or any related body corporate.


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

Directors Attendance at Board meetingsRod Anderson 3 (5)Ged Byrnes 5 (5)Antony Elliott 5 (5)Chris Luhrmann 5 (5)Kevin McDonald 5 (5)Mike McKinnon 5 (5) Neil McLean 5 (5)Damian Waters 4 (5)

Attendance at National Reference Group meetingsRod Anderson 1 (2)Ged Byrnes 2 (2)Antony Elliott 2 (2)Peter Johnson 1 (2)Chris Luhrmann 2 (2)Dave MacLagan 1 (1)Kevin McDonald 2 (2)Mike McKinnon 2 (2) Neil McLean 2 (2)Darryl Milling 2 (2)Rob Seth 2 (2)Suzette Po-Williams 2 (2)Damian Waters 1 (2)A copy of the auditors’ independence declaration, as required under section 307C of the Corporations Act 2001, is set out on page 21.

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

Kevin McDonaldDirector

Chris LuhrmannDirector

Crows Nest, 1 September 2014.

DIRECTORS' OPERATING REPORT


DIRECTORS' DECLARATIONDirectors' declarationIn accordance with a resolution of the directors of the Australian Security Industry Association Limited, we state that:(a) the financial statements and notes set out on pages

22 to 34 are in accordance with the Guidelines of the General Manager, Fair Work Australia and:(i) comply with Accounting Standards and the

Corporations Regulations 2001; and (ii) give a true and fair view of the company’s financial

performance, financial position and cash flow as at 30 June 2014 and of its performance for the year ended on that date;

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

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

Board) were held in accordance with the Rules of the reporting unit (ASIAL);

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

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

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

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

On behalf of the Board

Kevin McDonald Director Crows Nest 1 September 2014

Chris Luhrmann DirectorCrows Nest 1 September 2014

Auditor’s Independence Declaration

I declare, to the best of my knowledge and belief that during the year ended 30 June 2014 there has been:

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

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

Foster RaffanChartered Accountants

G.D. Wood, FCAPartnerNorth Sydney 1 September 2014


INDEPENDENT AUDIT REPORT TO MEMBERS

ScopeWe have audited the accompanying financial report of the Australian Security Industry Association Limited (the company) which comprises the statement of financial position as at 30 June 2014 and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and the directors' declaration.

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

Auditor’s ResponsibilityOur responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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

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

(a) is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the company's

financial position as at 30 June 2014 and of its performance for the year ended on that date; and

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

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

Foster Raffan Chartered Accountants

G.D. Wood, FCAPartnerNorth Sydney1 September 2014

Statement of comprehensive income


The accompanying notes form part of these financial statements

Note 2014 2013

$ $

Revenue- operating 2 2,375,808 2,376,787

- investment 2 104,209 114,748

Expenses directly related to operating activities (621,271) (676,805)

Employee expenses 3 (1,132,397) (1,150,236)

Depreciation 11 (32,672) (44,420)

Other expenses 4 (514,209) (502,773)

PROFIT BEFORE INCOME TAX179,468 117,301

Income tax expense 5 - -

PROFIT FOR THE YEAR 179,468 117,301

Other comprehensive income - -

TOTAL COMPREHENSIVE INCOME FOR THE YEAR 17 179,468 117,301

FOR THE YEAR ENDED 30 JUNE 2014

Statement of comprehensive income Statement of financial position



Note 2014 2013

$ $

CURRENT ASSETS

Cash and cash equivalents 6 2,015,064 1,940,986

Trade and other receivables 7 107,148 49,436

Other current assets 8 44,941 112,099

TOTAL CURRENT ASSETS 2,167,153 2,102,521

NON-CURRENT ASSETS

Financial assets 10 1,542 1,436

Property, plant and equipment 11 2,371,076 2,401,954

TOTAL NON-CURRENT ASSETS 2,372,618 2,403,390

TOTAL ASSETS 4,539,771 4,505,911

CURRENT LIABILITIES

Trade and other payables 12 1,405,926 1,544,162

Employee provisions 13 118,215 64,860

Centre for Compliance fund 14 17,577 17,577

TOTAL CURRENT LIABILITIES 1,541,718 1,626,599

NON CURRENT LIABILITIES

Employee provisions 13 - 60,727

TOTAL LIABILITIES 1,541,718 1,687,326

NET ASSETS 2,998,053 2,818,585

EQUITY

Retained earnings 2,947,395 2,767,927

Reserve 50,658 50,658

TOTAL EQUITY 2,998,053 2,818,585

AS AT 30 JUNE 2014

Statement of changes in equity




$

RETAINED EARNINGS AT 1 JULY 2012 2,650,626

Comprehensive income 117,301

RETAINED EARNINGS AT 30 JUNE 2013 2,767,927

Comprehensive income 179,468

RETAINED EARNINGS AT 30 JUNE 2014 2,947,395

Note 2014 2013

$ $

CASH FLOW FROM OPERATING ACTIVITIES

Receipts from members and others 2,371,878 2,413,916

Payments to suppliers and employees (2,354,665) (2,278,430)

Interest & dividend received 2 59,176 61,960

Net cash generated from operating activities 17 76,389 197,446

CASH FLOW FROM INVESTING ACTIVITIES

Payment for property, plant & equipment (2,311) (17,796)

Net cash (used in) investing activities (2,311) (17,796)

CASH FLOW FROM FINANCING ACTIVITIES

Payment from Centre for Compliance Fund 14 - (3,955)

Net cash (used in) financing activities - (3,955)

NET INCREASE IN CASH HELD 74,078 175,695

Cash and cash equivalents at the beginning of the financial year

1,940,986 1,765,291

CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR

6 2,015,064 1,940,986

Statement of cash flows



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

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation

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

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

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

The financial statements were authorised for issue on 1 September, 2014 by the directors of the company.

Accounting Policies

(a) Revenue Recognition

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

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

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

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

(b) Development of New Services

Costs of developing new services are expensed as incurred.

(c) Income Tax

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

(d) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at-call with banks, other short-term highly liquid investments with original maturities of 12 months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position.

(e) Trade and Other Receivables

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

(f) Property, Plant and Equipment

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

Property

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

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

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

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

Office Equipment

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

Notes to the financial statements




Depreciation

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

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

Class of Fixed Asset Depreciation Rate

Buildings – straight line basis 2.5%

Office equipment – diminishing value basis 10% - 66.7%

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

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

(g) Leases

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

(h) Financial Instruments

Initial recognition and measurement

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

Classification and subsequent measurement

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

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

Financial assets at fair value through profit or loss

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

Loans and receivables

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

Held-to-maturity investments

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




Financial liabilities

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

Impairment

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

Derecognition

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

(i) Impairment of Assets

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

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

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

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

(j) Trade and other payables

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

(k) Employee Benefits

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

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

(l) Provisions

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

(m) Goods and Services Tax (GST)

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

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

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

(n) Comparative Figures

Where required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.




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

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

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

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

At 30 June, 2014, the directors reviewed the key assumptions made by the valuers at 30 June 2012. They have concluded that these assumptions remain materially unchanged, and are satisfied that carrying value does not exceed the recoverable amount of land and buildings at 30 June, 2014.

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

security industry.

2. REVENUE

2014 2013$ $

Revenue from operating activitiesMembers' subscriptions 1,456,419 1,543,841Exhibition, conference and seminars 298,015 189,220Member marketing fee 80,375 111,762Cabling providers registrations 138,965 137,021Magazine 119,873 88,028Breakfast briefings 21,395 37,884Grading, seminars and workshops 32,398 59,898Insurance support 46,633 45,540Special events - 44,607Consultancy 3,375 5,925Strategic partnership 68,500 32,500Technician certification 31,139 8,550Statutory compliance 66,825 53,083Miscellaneous income 11,896 18,928Total revenue from operating activities 2,375,808 2,376,787

Revenue from investment activitiesRental income 44,927 51,352Interest and dividend 59,176 61,960Change in fair value of shares 106 1,436Total revenue from non-operating activities 104,209 114,748Total revenue from ordinary activities 2,480,017 2,491,535

3. EMPLOYEES BENEFITS

Office holdersWages and salaries 427,718 415,694Superannuation 39,564 37,413Leave and other entitlements 11,890 23,883Other employee expenses 7,881 8,337Total 487,053 485,327Employees other than office holdersWages and salaries 574,666 580,403Superannuation 53,157 52,236Leave and other entitlements (19,263) (2,712)Other employee expenses 36,784 34,982Total 645,344 664,909Total employee expenses 1,132,397 1,150,236




4. OTHER EXPENSES 2014 2013

$ $

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

Auditor’s remuneration – other services 6,500 6,000

29,500 29,000

Industry research 20,000 -

Industrial relations service 120,871 119,828

Legal 11,030 11,019

Meetings- members, directors and reference groups 64,997 43,743

Website 40,411 89,676

Computer support service 76,255 72,355

Other 151,145 137,152

Total other expenses 514,209 502,773

5. TAX EXPENSEThe company was exempt from income tax from 1 July 2010 as a result of being registered as an employer

organisation under the Fair Work (Registered Organisation) Act 2009.

6. CASH AND CASH EQUIVALENTS

Current

Cash at bank and on hand 358,313 487,038

Short-term bank deposits 1,656,751 1,453,948

2,015,064 1,940,986

$4,130 (2013 $13,610) of the short-term bank deposits are bonds paid to the company by tenants.

7. TRADE AND OTHER RECEIVABLES

Current

Trade receivables 117,748 54,436

Less: provision for doubtful debts (10,600) (5,000)

107,148 49,436

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

Charge for year 5,600 -

Written off - (15,000)

Provision for doubtful debts as at 30 June 2014 10,600 5,000

Credit Risk – Trade ReceivablesThere are no trade receivables in respect of subscriptions as they are invoiced only when received. The company’s credit terms in respect of services and activities are 30 days. Overdue debts are pursued and monitored by management. They are assessed for impairment and provided for where specific circumstances indicate that the debt may not be paid in full to the company.The company does not have any material credit risk exposure to any single receivable or group of receivables.The following table details the company’s trade receivables exposed to credit risk (prior to collateral and other credit enhancements) with ageing analysis and impairment provided thereon.




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

Gross amount Past due and impaired

Past due not impaired

Not due not impaired

$ $ $ $2014

<30 days 93,264 9,527 - 83,737

31-60 days 21,379 448 20,931 -

61-90 days 3,105 625 2,480 -

>90 days - - - - 117,748 10,600 23,411 83,737

2013<30 days 24,035 - - 24,035

31-60 days 12,365 4,759 7,606 -

61-90 days 4,850 - 4,850 -

>90 days 13,186 241 12,945 - 54,436 5,000 25,401 24,035

The company does not hold any financial assets whose terms have been renegotiated, but which

would otherwise be past due or impaired. Receivables that are overdue and impaired are covered by the provision for doubtful debts of $10,600.

8. OTHER ASSETS

2014 2013$ $

Current Prepayments 44,941 112,099

9. KEY MANAGEMENT PERSONNEL REMUNERATION

Short-term employee benefitsSalary 427,718 415,694Annual leave accrued 51,153 46,298Total short-term employee benefits 478,871 461,992Post employment benefitsSuperannuation 39,564 37,413Total post employment benefits 39,564 37,413Other long-term benefitsLong service leave 28,985 21,950Total other long-term benefits 28,985 21,950Termination benefits - -Total 547,420 521,355

10. FINANCIAL ASSETS

Non-current Available for sale financial assets- Investments in Australian listed shares 1,542 1,436

11. PROPERTY, PLANT & EQUIPMENT

Freehold land and building- at independent valuation 2,270,000 2,270,000Less: accumulated depreciation (2,924) (1,464)

2,267,076 2,268,536Office equipment, furniture and fittings- at cost 365,820 371,677Less: accumulated depreciation (261,820) (238,259)

104,000 133,418Total property, plant and equipment 2,371,076 2,401,954




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

Land and Building

Office Equipment and Software

Total

$ $ $2013Balance at the beginning of the year 2,270,000 152,345 2,422,345Additions at cost - 24,524 24,524Disposals - (495) (495)Depreciation (1,464) (42,956) (44,420)Carrying amount at end of year 2,268,536 133,418 2,401,954

2014Balance at the beginning of the year 2,268,536 133,418 2,401,954Additions at cost - 2,311 2,311Disposals - (517) (517)Depreciation (1,460) (31,212) (32,672)Carrying amount at end of year 2,267,076 104,000 2,371,076

12. TRADE AND OTHER PAYABLES

2014 2013$ $

CurrentTrade payables 58,366 192,266Employee liabilities 26,310 30,021Other current payables 80,982 73,433

165,658 295,720Unearned income Events income 9,050 105,470 Cablers registration 218,383 212,004 Membership subscriptions 1,012,835 930,968

1,240,268 1,248,4421,405,926 1,544,162

Financial liabilities at amortised cost classified as trade and other payables

165,658 295,720

13. EMPLOYEE PROVISIONS

Office holdersAnnual leave 51,153 46,298Long service leave 28,985 21,950Total 80,138 68,248Employees other than office holdersAnnual leave 20,212 18,562Long service leave 17,865 38,777Total 38,077 57,339Total employee provisions 118,215 125,587CurrentProvision for employee benefits 118,215 64,860Non-currentProvision for employee benefits - 60,727Provision for employee benefitsBalance at 1 July 2013 125,587 104,412Additional provision raised during the year 98,203 102,970Amounts used (105,575) (81,795)

Balance at 30 June 2014 118,215 125,587




14. CENTRE FOR COMPLIANCE

2014 2013$ $

Current Balance at 1 July 2013 17,577 21,532Less: expenditure - (3,955)Balance at 30 June 2014 17,577 17,577

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

respect of liabilities of the company is limited to $100.

16. SEGMENT INFORMATION Segment locations The Company operates in one business and geographical segment being a not-for-profit industry

association within the Security Industry throughout Australia.

17. CASH FLOW INFORMATION

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

Profit after tax 179,468 117,301

Non-cash items

Depreciation 25,021 38,187

Increase / (Decrease) in employee provisions (7,371) 21,174

Increase / (Decrease) in doubtful debts 5,600 (15,000)

Changes in assets and liabilities

(Increase) / decrease in trade receivables (63,312) 7,144

(Increase) / decrease in prepayments 67,158 (31,754)

Increase / (decrease) in payables (130,063) 57,873

Increase / (decrease) in deferred income (8,174) 3,957

(Increase) / decrease in fixed assets 8,168 -

(Increase) / decrease in share value (106) (1,436)

Net cash flow from operating activities 76,389 197,446

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

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

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

During the year a company controlled by a director, Antony Elliott, charged $1,603 (including GST) for maintaining the security system at the company’s premises.

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

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




Note 2014 2013$ $

Financial AssetsCash and cash equivalents 6 2,015,064 1,940,986Receivables 7 107,148 49,436Total Financial Assets 2,122,212 1,990,422

Financial LiabilitiesFinancial liabilities at amortised cost:Trade and other payables (excluding annual leave and deferred income)

12 165,658 295,720

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

a. Credit Risk

Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss for the company.

The company’s material credit risk exposures are trade receivables and cash deposited with banks.

The company’s exposure to credit risk arising from trade receivables is dealt with in Note 7.

The company deposits cash only with government guaranteed Australian banks. Cash was with the following banks at the year end:

ANZ 495,267 426,546ING 416,047 211,117Suncorp 250,127 -Rabo Direct 321,558 309,599CBA - 250,665Macquarie 250,060 251,428Bankwest 36,902 246,631ME Bank 245,103 245,000

6 2,015,064 1,940,986b. Liquidity Risk

Liquidity risk arises from the possibility that the company might encounter difficulty in settling its debts or otherwise meeting its obligations in relation to financial liabilities. The company manages this risk by preparing regular cash flow forecasts and managing credit risks.

The table below reflects undiscounted financial liabilities and cash flows from financial assets that reflect management’s expectation as to the timing of realisation. Actual timing may therefore differ from that disclosed.

Financial liability and financial asset maturity analysis

Within 1 year 1 to 5 years Over 5 years TotalFinancial liabilities due for payment

2014 2013 2014 2013 2014 2013 2014 2013

$ $ $ $ $ $ $ $Trade and other payables

161,529 282,110 4,129 13,610 - - 165,658 295,720

Total expected outflows

161,529 282,110 4,129 13,610 - - 165,658 295,720

Financial assetscash flows realisableCash and cash equivalents

1,523,499 684,745 491,565 1,256,241 - - 2,015,064 1,940,986

Trade receivables 107,148 49,436 - - - - 107,148 49,436Total anticipated inflows

1,630,647 734,181 491,565 1,256,241 - - 2,122,212 1,990,422

Net inflow on financial instruments

1,469,118 452,071 487,436 1,242,631 - - 1,956,554 1,694,702




c. Market Risk

Interest rate riskExposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting period whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments.

At the year end all cash deposited as term deposits with Rabobank, Suncorp, ANZ, Macquarie and ME Bank (approximately 82% of cash on deposit) were at fixed interest rates and cash deposited with Rabobank, ING, ANZ and Bankwest was variable rates (approximately 18% of cash on deposit).

Sensitivity Analysis

2014 2013

$ $

A 2% variation in interest rates during the year would have affected profit before income tax for the year by

35,323 32,106

Net Fair Value

Fair value estimationThe fair values of financial assets and financial liabilities are considered to be equal to their carrying values as presented in the statement of financial position.

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

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

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

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

Retained earnings 2,998,053 2,818,585

Cash and cash equivalents 2,015,064 1,940,986

21. INFORMATION TO BE PROVIDED TO MEMBERS In accordance with the requirements of the Fair Work (Registered Organisations) Act 2009, the attention of

members is drawn to the provisions of sub-sections (1), (2) and (3) of section 272 which reads as follows:1) A member of a reporting unit, or the General Manager, may apply to the reporting unit for

specified prescribed information in relation to the reporting unit to be made available to the person making the application.

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

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

22. COMPANY DETAILS The registered office and principal place of business of the company is 41 Hume Street, Crows Nest NSW

2065


ASIAL CODE OFPROFESSIONAL CONDUCT1. For the purposes of ASIAL’s Code of

Professional Conduct (the Code), Members shall include, as applicable, any of their employees and contractors.

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

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

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

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

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

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

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

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

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

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

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

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

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

The peak body for security professionals

Security Industry House41 Hume Street

Crows Nest, NSW 2065

Tel: 1300 127 425 Email: [email protected]: www.asial.com.au LinkedIn: www.linkedin/company/asial Twitter – https://twitter.com/asial_au

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asial annual financial report 2014

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