2014 ANNUAL REPORT · recognised CPD. RCSA Learning Centre is recognised as the leader in education...

2014 ANNUAL REPORTFor the year ended 30 June 2014

contents

RCSA Melbourne OfficeLevel 3, 63 Exhibition StreetMELBOURNE VIC 3000

Tel: +61 3 9663 0555Fax: +61 3 9663 5099Email: [email protected]

www.rcsa.com.au

President’s Report 1

CEO’s Report 2

Directors’ Report 10

Auditor’s Independence Declaration 14

Statement of Profit or Loss 15

Statement of Financial Position 16

Statement of Changes in Members’ Funds 17

Statement of Cash Flows 18

Notes to the Financial Statements 19

Directors’ Declaration 30

Independent Audit Report 31

Steve Heather FRCSA

President

Lincoln Crawley FRCSA (Resigned as President of the RCSA Board 27/11/13)

Vice President

Jacqui Barratt FRCSA

President

Robert van Stokrom FRCSA (Appointed President of the RCSA Board 27/11/13)

Vice President

Peter Langford FRCSA (Appointed Vice President 27/11/13)

Finance Director

Robert Olivier FRCSA

Denis Dadds FRCSA (Retired 27/11/13)

Directors

Matthew McArthur FRCSA (Life) (Retired 27/11/13)

Sinead Hourigan MRCSA (Appointed 27/11/13)

Alan Bell FRCSA

Karen Colfer FRCSA Matthew Hobby FRCSA Nina Mapson Bone FRCSA (Appointed 27/11/13)

BOARD OF DIRECTORS

vision

Shaping our profession through standards,knowledge and influence.

outcomes

RCSA membership is highly valued.

RCSA is the lead provider of market-recognised Continuing Professional Development (CPD).

RCSA is the centre of influence for member interests.

RCSA Members are recognised as setting the industry benchmark through adherence toRCSA Standards.

RCSA’s future prosperity is ensured through the generation and responsible use of stakeholders funds.

Annual General MeetingThe Recruitment & Consulting Services Association Ltd will hold its Annual General Meeting at:

Pullman Quay GrandSydney Harbour61-69 Macquarie StreetSydney, NSW 2000 AustraliaCommencing at 4.30pm AEST, Thursday 27th November, 2014

AuditorsNexia MelbourneLevel 18, 530 Collins StreetMELBOURNE VIC 3000

PRESIDENT’S REPORTIn a recruitment market that over the past twelve months could best be described as patchy but improving, Corporate membership of your association has consolidated and the number of individual recruitment professionals joining the RCSA has continued to increase. This is a pleasing trend as it reflects the growing recognition among organisations and professionals in the recruitment and employment industry of the value and profile of RCSA membership.

Increasingly RCSA and its members are being asked for their view and opinion about employment and recruitment. The Board remains committed to building the spheres of influence of RCSA and more generally the recruitment industry. Over the coming twelve months we will focus on providing advice to government and business leaders on important national matters such as workforce productivity and employment.

RCSA members are the experts in recruitment and employment. As an association we will continue to communicate the benefits and value that RCSA members bring to each and every engagement with their clients, and to provide resources that assist in adding value to those relationships.

Space does not permit me to mention every program, however I would like to point out WIL (Workforce Info Line) and the PEARL (Professional Emerging and Aspiring Recruitment Leaders) mentoring program as significant benchmark programs for our industry that offer a unique opportunity for members. WIL has gone from strength to strength over the past year with advice now available to members in Australia and New Zealand at no additional cost. Several members have also adopted WIL as their primary source of workplace advice.

The PEARL (Professional Emerging and Aspiring Recruitment Leaders) program is another example of a unique program available at no charge to RCSA members. The PEARL program brings together experienced leaders from the recruitment industry to mentor our emerging leaders. I can think of few other industries in which the strong commitment to professionalism and ethical practices of our members allows such a program to operate in a competitive environment.

The RCSA Board remains focused on our five strategic outcomes identified at an annual strategy workshop held in August 2013. These outcomes continue to guide the Board and the association:

1. RCSA membership is highly valued. RCSA membership is seen as being necessary for success and that RCSA Corporate and Individual membership is attractive, understood, sought after and retained.

2. RCSA is the lead provider of market-recognised CPD. RCSA Learning Centre is recognised as the leader in education and training for the recruitment industry through consistently high quality CPD.

3. RCSA is the centre of influence for member interests. As the experts in recruitment and employment RCSA guidance and advice is sought after by key workforce management stakeholders and regulatory bodies.

4. RCSA Members are recognised as setting the industry benchmark through adherence to highest standards and the RCSA Code for Professional Conduct in every facet of their business.

5. The RCSA’s future prosperity is ensured through the generation and responsible use of stakeholder funds. We need to be here for today and tomorrow, and have the commercial focus to make this happen.

Over the past twelve months the RCSA Board has determined to embark on the journey toward a prescribed industry code. This is a significant journey we anticipate will require two to three years.

The benefits for members in a prescribed industry code will be substantial as we continue to build on the progress of the existing RCSA Code and the industry’s success of self-regulation.

In closing I would also like to recognise the time and work of my fellow RCSA Board members. Their dedication and experience reflects the professionalism and commitment of our industry. Thanks also to members of the region councils and member group councils who have worked tirelessly throughout the year.

Robert van Stokrom FRCSARCSA President, Australia and New Zealand

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CEO’S REPORT

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The 2013/14 financial year has presented many challenges and opportunities for the RCSA and its members.

2013/14 was another active period for the RCSA’s issues management function and working groups. Issues under management were broad, including lobbying at a national level in Australia in the lead up to the 2013 election, the introduction of the bullying jurisdiction; and workplace gender equality reporting. At a state level in Australia, issues of focus included a WHS compliance campaign targeting the on-hire sector in Western Australia, the CoINVEST compliance campaign which has covered the on-hire sector in Victoria and the introduction of a new work cover premium system in South Australia.

Activity has also been strong in New Zealand with the RCSA taking an active role in the work of the Canterbury Safety Charter. Additionally, RCSA was invited by Standards New Zealand to nominate a representative to join the committee to assist with the development of a new accreditation standard on inclusive and safe workplaces for staff of diverse sexual orientation and gender identity.

Under the direction of the RCSA Working Groups a number of formal submissions were made to external stakeholders over the last financial year including: the Fair Work Commission in relation to the draft Bullying and General Protections Benchbook and the draft consultation provisions; and to Safe Work Australia on the proposed Code of Conduct in relation to bullying and harassment.

RCSA’s commitment to quality research continued over 2013/14 with the commencement of early stage discussions with the National Institute for Labour Studies (Flinders University) to develop research on the contribution the industry makes to a more efficient labour market and pathways to employment.

The RCSA Workforce Info Line (WIL) completed its first full financial year of service provision to members and has proved to be an ongoing success with call numbers approaching 200 per month. Key areas of concern for members when contacting WIL over the last financial year included: Award compliance, Award coverage, wages and employment contracts.

The RCSA Learning Centre team was extremely productive over 2013/14. Highlights included the very successful RCSA 2013 International Conference, “The Leadership Edge: Building a Competitive Advantage in a Changing World”. Held on the Gold Coast, the conference provided business owners and senior executives with the opportunity to access a comprehensive catalogue of industry and business thought leaders, keynote speakers and workshops. In May 2014 the RCSA Gala Ball and Awards Night was held with 300 attendees. Congratulations to the 2014 winners including Kurt Gillam MRCSA, winner of the Professional Emerging and Aspiring Recruitment Leaders Award; Chandler Macleod, winner of the McLean Award for Workplace Safety; and Aspect Personnel, winner of the Corporate Social Responsibility Award. Also announced at the Gala Ball in 2014 was the introduction of two new awards for 2015 recognising customer and candidate service excellence.

The RCSA’s Professional Emerging and Aspiring Recruitment Leaders (PEARL) program, comprising of mentoring, the Diploma of Management and the PEARL Consultant Forums, continued to go from strength to strength with strong interest and growing registrations.

From a membership perspective 2013/14 has been a positive year for the RCSA. RCSA Corporate and Individual membership is for recruitment organisations and individual professionals looking to distinguish themselves as industry leaders who are committed to professional standards and accountability that clients look for in today’s professional market. The RCSA strategic plan will continue to focus on increased member acquisition and retention by supporting initiatives aligned to ensuring RCSA membership is highly valued and seen as being necessary for success; ensuring RCSA Corporate and Individual membership is attractive, understood, sought after and retained; and ensuring RCSA membership provides highly valued and distinguishable benefits by identified member segments.

Activity has been strong in New Zealand with RCSA taking an active role in the work of the Canterbury Safety Charter.

The RCSA Learning Centre team was extremely productive over 2013/14.

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CEO’S REPORT continued

I would like to take this opportunity to congratulate Jan Spriggs FRCSA (Life) and Debra Loveridge FRCSA (Life) who were admitted as RCSA Life Members over the last financial year. RCSA Life membership is the most distinguished award the Association makes. It is not granted lightly and is made only when a deserving candidate meets the Association’s criteria. Life membership of the RCSA recognises an individual’s outstanding and sustained service over a long period. The recipient has made a distinguished and recognised contribution and impact; and enhanced the status of the recruitment industry.

Member Groups of the RCSA, the Association of Nursing Recruitment Agencies (ANRA) and the Association of Medical Recruiters Australia and New Zealand (AMRANZ) continue to have a role to play and an active voice. 2013/14 has seen an increased level of lobbying and advocacy activity from these two member groups, who are recognised as a significant employer of people and an important voice in the healthcare space across Australia and New Zealand.

Over the last 12 months, RCSA has seen another reduction in ethics related enquiries and complaints. The majority of complaints related to equal opportunity and discrimination, fee disputes, Fair Work issues, candidate care and privacy.

Work has continued over the last financial year to prepare the RCSA Service Delivery Standard to be relaunched in early 2015. The RCSA SDS program, which is closely aligned with ISO 9001, is used as a benchmark framework with the purpose of assisting members to develop systems and controls to ensure clients and work-seekers receive excellent service.

RCSA’s Code for Professional Conduct was re-authorised by the Australian Competition and Consumer Commission in 2014. The revised Code has been strengthened and now formally recognises RCSA’s SDS as a benchmark for quality and service. The Code also provides for the RCSA Board to make a public statement by way of developing an Industry Improvement Statement (IIS).

In February 2014 the RCSA Board approved the revisited RCSA Vision and Strategic Plan signed off in May 2014 including additional projects which will support the five strategic outcomes. These projects will continue to draw on the experience and expertise of many RCSA volunteers who during the past 12 months have continued to provide invaluable support and assistance to the RCSA. Thank you to all volunteers for your energy and support, I look forward to your continuing involvement. From the RCSA Board through to members of Region Councils, Working Groups and members of the RCSA Professional Practice Council - every volunteer adds value to the RCSA.

Finally, I would like to thank all the sponsors who have supported the RCSA over 2013/14. Without the support of RCSA supporters and sponsors we would not be able to invest in quality events and education programs.

In particular I would like to thank Kinetic Super as RCSA’s Principal Partner.

We look forward to the challenges of the coming year and to delivering the best possible services and support to all RCSA members.

Steve GranlandChief Executive Officer

RCSA membership is highly valued and seen as being necessary for success.

Policy & Issues Management, Business Solutions and WILThe RCSA Issues Management function and Working Groups have been active during the 2013-14 financial year once again.

Issues under management included a broad range of matters, as outlined below.

• Lobbying in the lead up to the 2013 federal election

• The introduction of the bullying jurisdiction within the Fair Work Commission

• 2014 Modern Award Review

• Workplace Gender Equality Reporting

• The ACTU Secure Work Campaign

• A WHS compliance campaign targeting the on-hire sector in WA

• The CoINVEST compliance campaign which has covered the on-hire sector in Victoria

• Crowd work and its impact upon the industry

• WorkSafe Victoria premium review

• Introduction of a new premium system in SA

• Managing the Black Coal Mining Industry Long Service Leave Fund compliance activity across Australia

• Examining policy in relation to a centralised leave entitlements scheme concept paper development

• Victorian opposition proposal for licensing of the on-hire sector

A number of written submissions were made to external stakeholders including:

• Written representations made to the Workplace Gender Equality Agency (WGEA) concerning the impact of reporting requirements on the on-hire sector

• Formal submissions to Fair Work Commission in relation to draft Bullying and General Protections Benchbook

• Formal submissions to Fair Work Commission in relation to draft bullying template forms

• Formal submissions to Fair Work Commission in relation to the draft consultation provisions

• Formal submissions to Safe Work Australia on the proposed Code of Conduct in relation to bullying and harassment.

There has also been ongoing focus on the development of industry research and RCSA have entered in to early stage discussions with the National Institute for Labour Studies out of Flinders University to develop research on the contribution the industry makes to a more efficient labour market and pathways to employment.

The RCSA Workforce Info Line (WIL) completed its first full financial year of service provision to members and has proved to be an ongoing success with call rates growing significantly which indicates improved member value.

To date, this has been a great success with call rates beginning at a high level and maintaining call volumes throughout the year.

Call volumes in comparison to last financial year were up by over 55% for the same time period.

The primary topics of calls made to WIL were:

• Award Compliance: 245 calls

• Award Coverage: 235 calls

• Wages: 181 calls

• Employment Contracts: 119 calls

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Professional DevelopmentRCSA’s professional development programs continued over 2013/14 to set high standards.

Highlights included:

2013 RCSA International Conference “The Leadership Edge: Building a Competitive Advantage in a Changing World” - Gold Coast (28-30 August)Over 250 delegates attended the conference. An international leadership identity, Bob Anderson opened the conference on ‘The Journey of Conscious Leadership’ and how recruitment leaders can stay relevant and effective in an ever changing landscape.

Industry leaders took part in several keynotes: Robert van Stokrom FRCSA, DFP Recruitment Services – ‘Connecting for Success’, Robert Davidson MRCSA, Davidson Recruitment – ‘Reinventing You, Reinventing Your Business’ and Graham Jenkins FRCSA (Life) facilitated a brains trust session ‘Where to For Now? Addressing Obstacles and Challenges in your Recruitment Business’ with Ross Clennett FRCSA, Robert Davidson MRCSA and Jacqui Barratt FRCSA.

Great feedback was received on the calibre of the speakers and the venue, with most sponsors keen to participate again next year.

Professional Emerging and Aspiring Leaders (PEARL) ProgramThe PEARL Committees across Australia and New Zealand once again contributed to judging of the PEARL Award which was awarded to Western Australian finalist Kurt Gillam MRCSA, State Manager with Kelly Services.

Under the banner of PEARL and in conjunction with our partnership with the Australian Human Resources Institute (AHRI), The Diploma of Management is now into its second year since commencement. Within this financial year 29 students have enrolled.

2014 PEARL Mentoring ProgramThe PEARL Committees across Australia and New Zealand contributed to the matching process of the PEARL Mentoring Program. 96 individuals (53 pairs) are undertaking the program across Australia and New Zealand for the third year running. This includes 43 mentors, some of whom have kindly agreed to take on more than one mentee. RCSA will take on a call to action to encourage more senior recruiters to donate their time toward becoming a mentor. RCSA would like to thank the AltusQ coaching team who offer their assistance and expertise in all regions.

2014 PEARL Consultant Forum ‘Succeeding in the New Reality’The Forums ran in March (Sydney) and June (Auckland). The educational content for both programmes was relevant and informative. Industry support on the day in Australia came from Sean Blanche MRCSA who facilitated the day with presenters, Ross Clennett FRCSA, Craig Watson FRCSA, Julie Capes, Sherryn Prentice and Kurt Gillam MRCSA. In New Zealand, support came from Richard Long, Shay Peters MRCSA, Clare Baker APRCSA, Nikita Brown, Dean McKay MRCSA and Emma Wipou with John Harland FRCSA MC’ing the day.

A special thank you should go to Kinetic Super and SEEKNZ for their support of the event in Australia and New Zealand.

Gala Ball and Awards Night – Regent Theatre, Plaza Ballroom, Melbourne 29 May 2014300 members, guests and Business Supporters attended this annual Gala event. Vince Sorrenti MC’d the evening with a surprise element for guests being the Three Singing Waiters. Winners for the PEARL Award, The MacLean Award for Workplace Safety and Corporate Social Responsibility Award were announced from an excellent calibre of finalists.

Breakfast SeriesOver the 2013/14 period, members were treated to breakfast topics such as ‘The Mindset and Focus of Top Performers’ with John White, ‘Making a Difference’ with Peter Keith, Recruitment CEO Panels across Australia and New Zealand, ‘The Sales Revolution’ with Amanda Hector MRCSA and ‘Industry Facts not Fiction’ with Nigel Harse FRCSA.

Inaugural Acumen SeriesGreg Savage FRCSA (Life) kick-started this new initiative with his presentation, ‘Future Proof Your Recruitment Career’. The series was an outstanding success with 500 registrations across Australia and New Zealand.

In-House TrainingThe RCSA has seen a good pickup from member companies utilising our customised in-house training for staff and teams. This has been designed around member request to meet their specific company needs and requirements, ensuring that all professional development outcomes are met in the most economical and topic-related way.

The Learning Centre team wish to acknowledge Kinetic Super for their ongoing sponsorship support, and RCSA Sponsors such as CareerOne, SEEKNZ, Astute Payroll, 2cloudnine/Jobscience who have supported various events over the past financial year. RCSA events would not eventuate without the support of these sponsors and the CPD Committee. Likewise, the PEARL Program would not be where it is today without the support of the PEARL Committees and AltusQ who offer unfailing backing, ideas and personal time to the RCSA Learning Centre staff.

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EthicsDuring the reporting period 1st July 2013 through 30th June 2014, RCSA received a total of 130 ethics related enquiries and complaints, which is a further decline on the previous 12 months. Of the 130 enquiries received, 70 related to members, the remaining 60 were non-member related or unspecified. The statistics indicate that equal opportunity and discrimination, fee disputes, workplace and Fair Work issues, candidate care, privacy, advertising, and transitioning were key issues.

Service Delivery Standard (SDS)The RCSA’s Service Delivery Standard begins with the RCSA’s Code for Professional Conduct and covers four key areas: compliance, service focus, service delivery, and customer relationships. The RCSA SDS program, which is closely aligned with ISO 9001, is used as a benchmark framework with the purpose of assisting Members to develop systems and controls to ensure clients and work-seekers receive excellent service. The RCSA Service Delivery Standard will be re-launched in early 2015. Members are encouraged to incorporate this quality management framework into their business to further demonstrate their commitment to and demonstration of superior ethical practice and industry standards.

Code for Professional Conduct (Code)RCSA’s Code for Professional Conduct was re-authorised by the Australian Competition & Consumer Commission in 2014. The revised Code has been strengthened and now formally recognises RCSA’s SDS as a benchmark for quality and service. The Code also provides for the RCSA Board to make a public statement by way of developing an Industry Improvement Statement (IIS). The very first IIS, known as RCSA Industry Improvement Statement No. 1 – Countering Mature Age Barriers at Work, was drafted for, and subsequently approved by the RCSA Board. The Board also recently approved RCSA to further explore options to promote excellence within the industry by developing a paper for a Prescribed Industry Code (PIC) with a view of aligning all industry players with the Code.

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Area of grievance 1st July 2013 to 30th June 2014 Number of complaints

Equal Opportunity and Discrimination 14

Fee Disputes 14

Workplace and Fair Work Issues 14

Candidate Care 13

Privacy and Confidentiality 12

Other: Copyright, unsolicited supply, legal issue 12

Misleading Job Ads and General Advertising Enquiries 11

Non Specified / General 11

Transition 10

Candidate Ownership – Right to represent a work-seeker 6

Professionalism and Integrity 6

Client Care 2

Commercial Issues 2

Restraint of Trade 1

Spam 1

Service Guarantees 1

Total 130

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MembershipRCSA Corporate membership is for recruitment organisations that wish to distinguish themselves as industry leaders who are committed to professional standards and accountability. They are engaged with their industry peak body and work on having their voice heard.

As of 30 June 2014, there were 816 Corporate member head offices across Australia and New Zealand, with a total of 1318 Corporate member branches.

The Individual Membership Support Program (IMSP), launched in January 2013, grows from strength to strength with over 20 Corporate members now supporting the program. This personal commitment by the employer acknowledges their commitment to professional behaviour and provides their organisation with even greater candidate and client credibility.

RCSA Individual membership elevates recruitment professionals as industry leaders, as recognised by their industry tenure and qualifications. As at 30 June 2014 there were 1222 Accredited Professional Recruiters, Members and Fellows including 80 Associate members, a growing category within the RCSA Professional Accredited Framework. Associate members are individuals who work in supporting industry roles and sectors outside the industry.

Looking forward, the RCSA strategic plan will continue to focus on increased member acquisition and retention by supporting initiatives aligned to the following three statements:

• RCSA membership is highly valued and seen as being necessary for success.

• RCSA Corporate and Individual membership is attractive, understood, sought after and retained.

• RCSA membership provides highly valued and distinguishable benefits by identified member segments.

The main drivers for successful membership growth will be guided by increased internal and external engagement with RCSA Council, non-members and key stakeholders.

Member Groups The Association of Nursing Recruitment Agencies (ANRA)The Association of Nursing Recruitment Agencies (ANRA) is a Member Group of the RCSA. Over the past twelve months the health care recruitment and agency sector has continued to experience difficult conditions as numerous structural changes have directly affected the marketplace.

I would like to acknowledge the tireless efforts and commitment of the ANRA council. All members of the council are volunteers who commit many hours and their expertise to guide the association and its work in representing the interests of ANRA members.

ANRA council members are:Alan Bell FRCSA, Chair

Graham Bower FRCSA, Deputy-Chair

Danielle Wallace

Kim Estell

Tracey Cumbers

Tracey McClenaghan

Gay Barton MRCSA

Amanda Blight

Nigel Woolford

Josh Hill

Over the past twelve months and despite challenging market conditions, membership of ANRA has increased to over 170 member agencies and locations. This is pleasing as it both reflects the commitment of a growing number of healthcare agencies in maintaining the highest standards and to the efficacy of ANRA in directly representing the interests of members.

ANRA council has met with the Assistant Minister for Health, Hon Senator Nash and communicated with health Ministers across the nation to represent the voice of members in rural and remote workforce planning issues, and is working more closely with key stakeholders in the aged care and disability sectors.

Several public sector tenders have been reviewed during the past twelve months in Victoria, Queensland and Western Australia. In all cases, procurement teams have been heavily involved in leading the tendering process with cost reductions and efficiency gains at the forefront of motivation for a review.

In Victoria, ANRA has worked closely with Health Purchasing Victoria (HPV) over the past four years and provided the opportunity for first-hand feedback and member inputs which were considered within a tender for clinical and support staff conducted during September and October 2013. A new three year contract commenced on 14 February 2014.

ANRA also engaged extensively with QHealth during its review of supplier arrangements for temporary nursing and midwifery staff. This review was initiated at the behest of a new Government and as part of a broader procurement transformation program in Queensland. It reflects the willingness of Government to aggressively reduce costs within one of its largest areas of expenditure: public health.

Members of ANRA met four times during the past twelve months. Members have heard updates and insights from industry leaders from the disability sector, industry regulators and boards, immigration and registration and future trends in planning for the health workforce.

In 2010, ANRA entered into an agreement with the Australian Nursing Federation to provide ANRA member nurses and healthcare staff with online education and training. This service has grown to become an important part of the education and training regime of a number of ANRA member agencies.


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The Association of Medical Recruiters Australia and New Zealand (AMRANZ)The Association of Medical Recruiters Australia and New Zealand (AMRANZ) is a Member Group of the RCSA. Over the past twelve months the medical recruitment market has continued to experience tough trading conditions. The continuation of supply arrangements that limit the access of Health Services to the medical workforce available through a broad number of suppliers continues to be of concern to AMRANZ.

I would like to acknowledge the tireless efforts and commitment of members of the AMRANZ council. As owners and managers of recruitment businesses, all members of the council are volunteers who commit many hours and their expertise to guide the association and its work in representing the interests of AMRANZ members.

AMRANZ Council Members are:Corrine Taylor FRCSA, Co-President

Martina Stanley Co-President

Tracey McClenaghan

Richard Taylor

Stephen Bott FRCSA

Robert Embury

Justin Smith MRCSA

AMRANZ council has represented the interests of members in the following key areas:

• QHealth B45 Contracts: AMRANZ council continues to pursue QHealth regarding locum services and the B45 locum policy in Queensland Public Health.

• International Recruitment Strategy: AMRANZ council has met with the Federal Minister for Health, Peter Dutton MP and Assistant Minister for Health, Senator Nash regarding incentives funded within the International Recruitment Strategy (IRS) for the placement of doctors in District of Workforce Shortage (DWS) areas, and to recognise the capability of private recruiters in recruiting OTD’s.

• Litmus Recruitment Management Platform: AMRANZ has on behalf of members been in communication with NSW Health and Western New South Wales LHD (Local Health District) in regards to the concerns of members to the operational and supply arrangements in place for the Litmus Recruitment Management Platform in WNSW DHS. AMRANZ has consistently provided updates to members and remains in communication with NSW Health. RCSA/AMRANZ has also elevated this issue through the filing of reports about the Litmus platform with the ACCC, NSW Ombudsman and NSW Health Procurement Board.

AMRANZ members have participated in two member meetings and have heard speakers from Health Workforce Capacity Branch at DoHA, RACGP Director Penny Mure, and AMC along with legislative updates on privacy and immigration from Andrew Wood, Barrister at Law and Alan Chanesman, Lipman James respectively. Industry training and development sessions have been conducted by John White, ’Competing First on Value’ and Peter Keith ‘Too Busy!’


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Principal Partner Business Partner

Premium Supporters


Partners & Premium SupportersRCSA would like to thank its 2013/2014 Partners and Premium Supporters without which many programs, events and activities would not be possible.

PRESIDENT’S REPORTYour directors present this report on the company for the year ended 30 June 2014

DirectorsThe names of each person who has been a director during the year and to the date of this report are:

R van Stokrom FRCSA

P Langford FRCSA

L Crawley FRCSA

S Heather FRCSA

J Barratt FRCSA

A Bell FRCSA

D Dadds FRCSA (Retired November 27, 2013)

M Hobby FRCSA

M McArthur FRCSA (Life) (Retired November 27, 2013)

K Colfer FRCSA

S Hourigan MRCSA (Appointed November 27, 2013)

R Olivier FRCSA

N Mapson Bone FRCSA (Appointed November 27, 2013)

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Principal ActivitiesThe principal activities of the Recruitment & Consulting Services Association Limited (“RCSA”), during the financial year was to represent Members and to advance the interests of Members.

Operating ResultsThe profit of the Recruitment & Consulting Services Association Ltd (RCSA) after providing for income tax amounted to $223,165 (2013: $242,045).

Dividends Paid or RecommendedNo dividends were paid during the year and no recommendation is made as to dividends, as the Recruitment & Consulting Services Association (RCSA) is not permitted to pay dividends under its Constitution.

Review of OperationsThe operations and state of affairs reflect the outcome of the various activities of the entity for the year ended 30 June 2014.

The RCSA in the last 12 months has adopted a revised vision which is ‘shaping our profession through standards, knowledge and influence’.

Overriding objectives are to promote excellence, enterprise and integrity in the companies of all Members and of Individuals engaged by those companies and to improve the knowledge and skill with respect to their responsibilities, duties and rights in the employment services industry.

These achieve these objectives the entity has adopted the following strategies:

RCSA Membership is highly valued:RCSA membership is seen as being necessary for success, corporate and individual membership is attractive, understood, sought after and retained and provides highly valued and distinguishable benefits by identified member segments.

RCSA is the lead provider of market-recognised Continuing Professional Development (CPD):The RCSA Learning Centre is recognised by corporate and individual members as the default source of education and training requirements, providing consistently high quality continuing professional development across multiple channels both publicly and on a tailored in-house delivery basis.

RCSA is the centre of influence for member interests:RCSA input, research, guidance and advice is sought after by key workforce stakeholders, including management stakeholders including government and regulatory bodies. RCSA’s position in relation to key industry issues is clear and understood by all stakeholders.

RCSA members are recognised as setting the industry benchmark through adherence to RCSA Standards:The RCSA Code for Professional Conduct and Service Delivery Standard are recognised as the quality industry standard and are a key member attraction and retention tool. Existing and prospective clients and candidates understand and value this important tangible difference between a member and a non-member.

RCSA’s future prosperity is ensured through the generation and responsible use of stakeholder funds:

The RCSA operates at all times with a commercial focus.

The entity’s short term objectives are:The continued focus of activities for the past year has been to develop the profile of the recruitment industry and Members of the entity.

The past 12 months has seen particular attention focused on:

Developing policy positions on topical issues impacting the industry and members and communicating these positions to all stakeholders.

Laying foundations for the development of long term relationships with key stakeholders in the employment pathway space (i.e. AHRI).

Lobbying all levels of government and key stakeholders in Australia and New Zealand.

Managing the re-authorisation of the Code for Professional Conduct by the ACCC.

Continuing to develop industry best practice in the areas of OHS, Compliance, Workplace Relations, Service Delivery and Workforce Participation.

Develop and launch new RCSA member benefits.

The entity’s long term objectives are to:Lead and be the voice of the recruitment and HR services industry. To remain the peak body in Australia and New Zealand focussed on setting standards for ethics and professionalism in business and providing advocacy for Member companies and individual professional members. To advance the positive recognition of the industry.

To achieve these objectives, the entity has adopted the following strategies:Build, develop and maintain strategic relationships with key stakeholders.

Build the RCSA profile and brand.

Build the RCSA Membership value proposition.

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DIRECTORS’ REPORT

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DIRECTORS’ REPORT continued

Significant Changes in State of AffairsNo significant change in the state of affairs of the Recruitment & Consulting Services Association (RCSA) occurred during the financial year.

After Balance Date EventsNo matters or circumstances have arisen since the end of the financial year, which significantly affected or may significantly affect the operations of the Recruitment & Consulting Services Association (RCSA), the results of those operations, or the state of affairs of the Recruitment & Consulting Services Association (RCSA) in subsequent financial years

Future Developments Likely developments in the operations of the Recruitment & Consulting Services Association (RCSA) and the expected results of those operations in future financial years have not been included in this report as the Directors believe that the inclusion of such information is likely to result in unreasonable prejudice to the Recruitment & Consulting Services Association (RCSA).

EnvironmentalThe Recruitment & Consulting Services Association Ltd (RCSA)’s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a State or Territory.

Information on Directors

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Director Lincoln Crawley FRCSA Director Matthew McArthur FRCSA (Life)

Qualifications: Qualifications:

Experience: 17 years in the industry Experience: 32 years in the recruitment industry

Special Responsibilities:

RCSA Board President to November 2013 - Director Government Positioning


Director Business Partnerships - Term completed November 2013

Director Robert van Stokrom FRCSA Director Robert Olivier FRCSA

Qualifications: Dip. Business, Grad Dip Logistics Qualifications: Bachelor Science (Social Science)(Hon)

Experience: 29 years pharmaceutical, 15 years recruitment Experience: 18 years recruitment industry experience 6 years as specialist in employment data analytics


RCSA President - Vice President to November 2013 - Chair Executive Committee


RCSA Finance Director - Member Executive Committee

Director Nina Mapson Bone FRCSA Director Karen Colfer FRCSA

Qualifications: MA (Hons) Qualifications:

Experience: 12 years recruitment, 10 years sales in UK, Europe, USA and Australia

Experience: 21 years recruitment industry experience


Director Special Responsibilities:

Director

Director Peter Langford FRCSA Director Matthew Hobby FRCSA

Qualifications: Qualifications:

Experience: 30 years in the Industry Experience: 14 years in recruitment


Vice President RCSA - Director Continuing Professional Development


Director

Director Steve Heather FRCSA Director Jacqui Barratt FRCSA

Qualifications: Bachelor Applied Science (Mining Engineer) , W.A.S.M. First Class Mine Managers Certificate of Competency (WA law)

Qualifications:

Experience: 17 years mining industry experience, 20 years recruitment industry

Experience: 21 years in the industry


Director Service Delivery Standard Special Responsibilities:

Vice President RCSA - Director Membership

Director Denis Dadds FRCSA Director Alan Bell FRCSA

Qualifications: B. Commerce Qualifications:

Experience: 44 years in recruitment Experience: 12 years plus in recruitment industry


Director OHS & WC - Term completed November 2013


Director

Director Sinead Hourigan MRCSAA

Qualifications:

Experience:


Director

Directors’ and Executive Officer RemunerationDirectors The Directors of the Recruitment & Consulting Services Association Ltd (RCSA) receive no remuneration for holding office. All Directors are non-executive. Certain reimbursements are made to Directors to meet out of pocket expenses for attending meetings.

Meeting of Directors During the financial year, 6 meetings of Directors, 9 meetings of Executive Committee were held. Attendees were:

Directors Meetings Executive Committee MeetingsEligible to Attend Attended Eligible to Attend Attended

L Crawley 6 5 4 3R van Stokrom 6 6 9 9D Dadds 2 2M McArthur 2 0 - - P Langford 6 6 4 3J Barratt 6 3 9 5S Heather 6 5 - - A Bell 6 5 - - M Hobby 6 5 - - S Hourigan 4 4

N Mapson Bone 4 4

K Colfer 6 6R Olivier 6 6 9 9

The entity is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If the RCSA is wound up, the Constitution states that each member is required to contribute a maximum of $50 towards meeting any outstanding obligations. At 30 June 2014 the total amount that members of the entity are liable to contribute if the entity is wound up is $108,950 (2013: $108,950).

Indemnifying OfficersDuring or since the end of the financial year, the Recruitment & Consulting Services Association Ltd (RCSA) has given an indemnity or entered an agreement to indemnify, or paid or agreed to pay insurance premiums as follows:

Premiums have been paid to insure each of the Directors against liability for costs and expenses incurred by them in defending any legal proceedings arising from their conduct while acting in the capacity of Directors of the Recruitment & Consulting Services Association Ltd (RCSA), other than conduct involving wilful breach of duty in relation to the Recruitment & Consulting Services Association Ltd (RCSA). The amount of premium paid was $8,811.

Auditor’s Independence Declaration The lead auditor’s independence declaration for the year ended 30 June 2014 has been received and can be found on page 14 of the Annual report.

Proceedings on Behalf of The Recruitment & Consulting Services Association Ltd (RCSA)No person has applied for leave of Court to bring proceedings on behalf of the Recruitment & Consulting Services Association Ltd (RCSA) or intervene in any proceedings to which the Recruitment & Consulting Services Association Ltd (RCSA) is a party for the purpose of taking responsibility on behalf of the Recruitment & Consulting Services Association Ltd (RCSA) for all or part of those proceedings.

The Recruitment & Consulting Services Association Ltd (RCSA) was not a party to any such proceedings during the year. Signed in accordance with a resolution of the Board of Directors.

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Robert van Stokrom FRCSA Robert Olivier FRCSA Director Director

Dated this 26th day of August 2014 Queenstown, New Zealand


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AUDITOR’S INDEPENDENCE DECLARATION For the year ended 30 June 2014

STATEMENT OF PROFIT OR LOSS For the year ended 30 June 2014

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Recruitment & Consulting Services Association Limited ABN 41 078 606 416 Note 30 June 2014 30 June 2013

$ $Revenue 2 3,801,834 3,881,408

Salaries and employee benefits expense (1,324,886) (1,466,995)Depreciation expense 3 (28,849) (23,151)Education expenses (678,334) (557,384)Publications expenses (102,297) (101,067)Conference expenses (331,305) (266,012)Membership expenses (14,408) (10,288)Computer expenses (129,594) (171,622)Office and administration expenses 4 (459,738) (626,880)Advertising expenses (80,923) (63,584)Other expenses 3 (428,335) (352,380)

Profit before income tax expense 223,165 242,045

Income tax expense - -

Profit for the year 223,165 242,045

Other comprehensive income for the year, net of income tax - -

Total comprehensive income for the year 223,165 242,045

The accompanying notes form part of these financial statements

STATEMENT OF FINANCIAL POSITION For the year ended 30 June 2014

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$ $Current AssetsCash and cash equivalents 5 1,141,470 2,114,009 Trade and other receivables 6 133,490 183,206 Other assets 7 146,481 167,399 Financial assets 8 1,008,946 0 Total Current Assets 2,430,387 2,464,614

Non-current AssetProperty, plant and equipment 9 72,667 39,662 Total Non-current Asset 72,667 39,662 Total Assets 2,503,054 2,504,276

Current LiabilitiesTrade and other payables 10 238,820 179,595 Employee benefits 11 141,170 157,327 Deferred income 12 619,749 887,214 Total Current Liabilities 999,739 1,224,136

Non-Current LiabilityEmployee benefits 11 17,185 19,673 Total Non-Current Liability 17,185 19,673 Total Liabilities 1,016,924 1,243,809 Net Assets 1,486,130 1,260,467

Members' FundsRetained profits 1,483,632 1,260,375 Foreign Currency Reserve 2,498 92 Total Members' Funds 1,486,130 1,260,467


STATEMENT OF CHANGES IN MEMBERS’ FUNDS as at 30 June 2014

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Recruitment & Consulting Services Association Limited ABN 41 078 606 416

Note $Total members funds at 1 July 2012 1,018,330

Total comprehensive income for the year 242,045

Foreign currency reserve 92

Total equity at 30 June 2013 1,260,467

Total members funds at 1 July 2013 1,260,467

Total comprehensive income for the year 223,165

Foreign Currency Reserve 2,498

Total equity at 30 June 2014 1,486,130


STATEMENT OF CASH FLOWS For the year ended 30 June 2014

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$ $Cash Flow from Operating ActivitiesReceipts from membership subscriptions and workshops 3,886,805 3,975,961 Payment to suppliers and employees (3,859,441) (4,199,985)Interest received 70,897 85,765 Net cash generated from operating activities 18(b) 98,261 (138,259)

Cash Flow from Investing ActivitiesPayment for plant and equipment (61,854) (33,298)Payment for financial asset at fair value through profit and loss (1,008,946) - Net cash used in investing activities (1,070,800) (33,298)

Net increase in cash held (972,539) (171,557)Cash and cash equivalents at beginning of the financial year 2,114,009 2,285,566 Cash and cash equivalents at the end of the financial year 5,18(a) 1,141,470 2,114,009


NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2014

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Note 1. Statement of Significant Accounting PoliciesBasis of PreparationThe financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements (including Australian Accounting Interpretations), other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

The financial report covers the Company of the RCSA. RCSA is a company limited by guarantee, incorporated and domiciled in Australia.

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

The financial report was authorised for issue by the directors on 26 August 2014.

(a) Critical accounting estimates and judgementsThe directors evaluate estimates and judgements 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

Provision for impairment of receivables No provision for impairment of receivables recognised in the statement of financial position as at balance sheet date.

(b) Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Recruitment & Consulting Services Association Ltd (RCSA) Company and the entities it controls. Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. In the separate financial statements of the Company, intra-group transactions (‘common control transactions’) are generally accounted for by reference to the existing (consolidated) book value of the items. Where the transaction value of common control transactions differ from their consolidated book value, the difference is recognised as a contribution by or distribution to equity participants by the transacting entities.

(c) Plant & EquipmentEach class of property, plant and equipment is carried at cost or fair value as indicated, less, where applicable, any accumulated depreciation and impairment losses.

Plant and equipment

Plant and equipment are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment. In the event the carrying amount of plant and 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.

Plant and equipment that have been contributed at no cost or for nominal cost are valued and recognised at the fair value of the asset at the date it is acquired.

Depreciation

The depreciable amount of all fixed assets is depreciated on a straight line basis over the asset’s useful life to the entity commencing from the time the asset is available for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

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

Class of fixed asset Depreciation Rate Furniture & fittings 20 - 33% Computer software & equipment 20 - 33%

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

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Note 1. Statement of Accounting Policies – continued(d) Employee BenefitsProvision is made for the entity’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 outflows 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 an employee superannuation fund and are charged as expenses when incurred.

(e) RevenueRevenue is recognised to the extent that it is probable that the economic benefits will flow to RCSA and the revenue can be reliably measured.

Membership revenue is recognised upon the provision of the service to the RCSA’s members. Where the period of service delivery extends beyond year end, a share of the revenue is recognised as deferred income.

Interest revenue is recognised using the effective interest rate method, which for floating rate financial assets is the rate inherent in the instrument.

Grant revenue is recognised in the statement of comprehensive income when the entity obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the entity and the amount of the grant can be measured reliably. If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until those conditions are satisfied.

Other revenue is recognised when the right to receive the revenue has been established.

All revenue is stated net of the amount of goods and services tax (GST).

(f) Income TaxThe RCSA had been granted “Charity” status by the Australian Taxation Office. This was granted on the basis of its status as an educational institution. This status is effective from July 1, 2005.

This status entitles the RCSA to Income Tax Exemption under Subdivision 50-B of the Income Tax Assessment Act 1997. GST Concessions under Division 176 of the New Tax System (Goods and Services Tax) Act 1999 and FBT rebate under section 123E of the Fringe Benefits Tax Assessment Act 1986.

(g) 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.

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.

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

(i) LeasesLease 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.

Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term.

(j) Conference Revenue and ExpensesConference related revenue and expenditure is brought to account in the statement of comprehensive income in the year that the conference is held.


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Note 1. Statement of Accounting Policies – continued(k) Impairment of AssetsAt 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.

(l) Financial InstrumentsInitial 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 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 lossFinancial 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 receivablesLoans 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 investmentsHeld-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.

Available-for-sale financial assetsAvailable-for-sale financial assets are non-derivative financial assets that are either not capable of being classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.

They are subsequently measured at fair value with changes in such fair value (ie gains or losses) recognised in other comprehensive income (except for impairment losses and foreign exchange gains and losses). When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other comprehensive income is reclassified into profit or loss.


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Note 1. Statement of Accounting Policies – continued(l) Financial Instruments – continuedFinancial LiabilitiesNon-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.

Impairment

At the end of each reporting period, the entity 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.

(m) Comparative FiguresWhere required by Accounting Standards comparative figures have been adjusted to conform with changes in presentation for the current financial year.

When an entity applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies items in its financial statements, a statement of financial position as at the beginning of the earliest comparative period must be disclosed.

(n) New and amended accounting policies adopted by the Company Employee benefits

During the year, the company adopted AASB 119: Employee Benefits (September 2011) and the relevant consequential amendments arising from the related Amending Standards. As a result, the association early adopted AASB 2011-11: Amendments to AASB 119 (September 2011) arising from Reduced Disclosure Requirements because the association’s financial statements are prepared under Australian Accounting Standards – Reduced Disclosure Requirements. The association has applied AASB 119 (September 2011) and the relevant consequential amendments arising from the related Amending Standards from 1 January 2013.

For the purpose of measurement, AASB 119 (September 2011) defines obligations for short-term employee benefits as obligations expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related services. In accordance with AASB 119 (September 2011), provisions for short-term employee benefits are measured at the (undiscounted) amounts expected to be paid to employees when the obligation is settled, whereas provisions that do not meet the criteria for classification as short-term (other long-term employee benefits) are measured at the present value of the expected future payments to be made to employees. Previously, the company had separated provisions for benefits with similar characteristics, such as annual leave and sick leave, into short- and long-term portions, and applied the relevant measurement approach under AASB 119 to the respective portions.

As the company expects that all of its employees would use all of their annual leave entitlements earned during a reporting period before 12 months after the end of the reporting period, adoption of AASB 119 (September 2011) did not have a material impact on the amounts recognised in respect of the company’s employee provisions. Note also that adoption of AASB 119 (September 2011) did not impact the classification of leave entitlements between current and non-current liabilities in the company’s financial statements.

AASB 119 (September 2011) also introduced changes to the recognition and measurement requirements applicable to termination benefits and defined benefit plans. As the company did not have any of these types of obligations in the current or previous reporting period, these changes did not impact the Company’s financial statements.


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Note 1. Statement of Accounting Policies – continuedFair value measurement

During the year, the company adopted AASB 13: Fair Value Measurement and the relevant consequential amendments arising from the related Amending Standards. As a result, the company early adopted AASB 2012-1: Amendments to Australian Accounting Standards – Fair Value Measurement – Reduced Disclosure Requirements because the company’s financial statements are prepared under Australian Accounting Standards – Reduced Disclosure Requirements. The company has applied AASB 13 and the relevant consequential amendments arising from the related Amending Standards from 1 January 2013.

No material adjustments to the carrying amounts of any of the company’s assets or liabilities were required as a consequence of applying AASB 13. Nevertheless, AASB 13 requires enhanced disclosures regarding assets and liabilities that are measured at fair value and fair values disclosed in the company’s financial statements. These enhanced disclosures are provided in Note 20.

The disclosure requirements in AASB 13 need not be applied by the company in the comparative information provided for periods before initial application of AASB 13 (that is, periods beginning before 1 January 2013). However, as some of the disclosures now required under AASB 13 were previously required under other Australian Accounting Standards, such as AASB 7: Financial Instruments: Disclosures, the company has provided this previously provided information as comparatives in the current reporting period.


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Recruitment & Consulting Services Association Limited ABN 41 078 606 416 Note 30 June 2014 30 June 2013$ $

Note 2: Revenue Revenue from operating activities

- membership subscriptions 1,629,135 1,760,233 - education, workshops and functions 749,384 672,314 - sponsors 823,208 891,253 - government funding - - publications 27,189 30,853 - conferences 479,454 413,526

3,708,370 3,768,179 Revenue from non-operating activities

- interest received 70,897 85,765 - other revenue - other persons 22,567 27,464

93,464 113,229 Total revenue 3,801,834 3,881,408

Note 3: Profit(a) Profit before income tax has been determined after the following expenses:

Depreciation & amortisation - plant and equipment 28,849 23,151 Rental Expense on operating leases - occupancy lease payments 249,463 328,723 Industrial Relations - Other 305,014 226,591

Note 4: Auditor's RemunerationRemuneration of the auditors of the company for: - auditing or reviewing the financial report 25,300 25,900 - taxation services 1,900 2,000

27,200 27,900

Note 5: Cash and cash equivalentsCash on hand 586 568 Cash at bank 576,792 458,403 Cash on deposit - other 564,092 1,655,038

18(a) 1,141,470 2,114,009 Note 6: Trade and other ReceivablesCurrent

Trade receivables 125,562 183,206 Other receivables 7,928 0

133,490 183,206 The carrying value of trade receivables is considered a reasonable approximation of fair value due to the short-term nature of the balances.All of the RCSA’s trade and other receivables have been reviewed for indicators of impairment, and no indicators identified.


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Note 30 June 2014 30 June 2013$ $

Note 7: Other AssetsCurrent

Prepayments 146,481 167,399

Note 8: Financial AssetsCurrent

Financial assets at fair value through profit and loss 8(a) 1,008,946 0(a) Financial assets held for fair value through profit and loss

Financial assets at fair value through profit or loss includes managed funds which are managed by third parties on behalf of the group as well as other investors. The managed funds hold a variety of investments which generate a return based on income from those investments and changes in the market value of the investments. The group’s investments in managed funds can be redeemed on an at-call basis at the market value of the investment at the date of redemption less certain fees and charges.

Note 9: Plant and EquipmentFurniture & fittingsAt cost 129,896 80,482 Accumulated depreciation (78,618) (65,769)

51,278 14,713 Computer equipment & softwareAt cost 217,984 205,544 Accumulated depreciation (196,595) (180,595)

21,389 24,949 Total plant and equipment 72,667 39,662


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Furniture & Fittings

Computer Equipment &

Software

Total

$ $ $Note 9: Plant and Equipment – (continued)Movements in carrying amounts

Carrying amount at 1 July 2012 12,421 17,093 29,514 Additions 15,621 17,678 33,299 Depreciation expense (13,329) (9,822) (23,151)Carrying amount at 30 June 2013 14,713 24,949 39,662

Movements in carrying amounts

Carrying amount at 1 July 2013 14,713 24,949 39,662 Additions 49,414 12,440 61,854 Depreciation expense (12,849) (16,000) (28,849)Carrying amount at 30 June 2014 51,278 21,389 72,667

Note 30 June 2014 30 June 2013$ $

Note 10: Trade and Other PayablesCurrent

Trade payables 165,754 56,370 Sundry payable & accruals 73,066 123,225

238,820 179,595

Note 11: Employee Benefits

Current

Annual leave 63,974 85,000 Long service leave 77,196 72,327

141,170 157,327 Non-Current

Long service leave 17,185 19,673 17,185 19,673

Note 12: Deferred IncomeCurrent

Subscriptions received in advance 329,119 527,742 Conference income received in advance 122,575 131,357 Other income received in advance 168,055 228,115

619,749 887,214

Note 13: Members' GuaranteeThe RCSA is a company limited by guarantee. If the RCSA is wound up, the Constitution states that each member is required to contribute a maximum of $50 each towards meeting any outstanding obligations. At 30 June 2014 the number of members was 1,735.


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Note 30 June 2014 30 June 2013$ $

Note 14: Expenditure Commitments

Lease expenditure commitments

Operating leases (non-cancellable)

Minimum lease payments- not later than one year 195,989 189,376 - later than one year and not later than five years 461,442 665,700 Aggregate lease expenditure contracted for at balance date 657,431 855,076

The RCSA leases level 3 at the company's registered place of business. The lease runs for a period of 5 years, with an option to renew the lease after that date. Lease payments for level 3 increase annually at a fixed rate of 5% per annum.

The RCSA also leases property at Suite 2, 17 Castlereagh Street, Sydney. The lease runs for a period of 5 years. Lease payments increase annually at a fixed rate of 4% per annum.

Note 15: Contingencies

The entity has provided an indemnity guarantee in respect of a bank guarantee in favour of the property owner on the entity's leased premises. 113,000 74,736

Note 16: Events Subsequent to Balance Date

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the RCSA, the results of those operations, or the state of affairs of the RCSA in future financial years.

Key Management Personnel Related Entities

The related entities of members of the board of directors are required to pay membership fees on the same terms and conditions as all other members.

The directors of the RCSA during the financial year were:

R van Stokrom FRCSA P Langford FRCSA

L Crawley FRCSA S Heather MRCSA

J Barratt FRCSA A Bell FRCSA

D Dadds FRCSA (Retired November 27, 2013) M Hobby FRCSA

M McArthur FRCSA (Life) (Retired November 27, 2013) K Colfer MRCSA

S Hourigan MRCSA (Appointed November 27, 2013) R Olivier FRCSA

N Mapson Bone FRCSA (Appointed November 27, 2013)


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Note 30 June 2014 30 June 2013$ $

Note 17: Related Party Transactions – (continued) Transactions with Key Management Personnel Related Entities:

Consultants fees charged from DFP Pty Ltd

Consultants fees charged from HORNER Recruitment Systems Pty Ltd

Transactions with related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

3,240 16,421 10,862 3,645 14,102 20,066

Note 18: Key Management PersonnelTransactions with key management personnel: The key management personnel compensation included in ‘salaries and employee benefits expenses’ are as follows:Short-term employee benefits 256,860 210,096 Other long term benefits 12,799 42,068

269,659 252,164 Note 19: Cash Flow Statement(a) Reconciliation of Cash

Cash at the end of the year as shown in the Statement of Cash Flows is reconciled to the related items in the Balance Sheet as follows:Cash on hand 586 568

Cash at bank 576,792 458,403

Cash on deposit 564,092 1,655,038 5 1,141,470 2,114,009

(b) Reconciliation of net profit after tax to net cash flows from operationsProfit after related income tax expense 223,165 242,045 Non-cash items:

Depreciation of non-current assets 28,849 23,151 Changes in assets and liabilities:

(Increase)/decrease in receivables 49,716 (117,181)(Increase)/decrease in other current assets (1,008,946) (6,487)Increase/(decrease) in payables 59,225 (175,762)Increase/(decrease) in provisions (16,147) (23,000)Increase/(decrease) in other current liabilities (267,465) (81,025)Net cash flow from operations (931,603) (138,259)

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Note 20: Financial risk management

The company’s financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payables, and leases.

The carrying amounts for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are shown throughout the financial report.

Refer to Note 21 for detailed disclosures regarding the fair value measurement of the company’s financial assets and financial liabilities.

Note 21: Fair value measurements

The company has the following assets, as set out in the table below, that are measured at fair value on a recurring basis after their initial recognition. The company does not subsequently measure any liabilities at fair value on a recurring basis and has no assets and liabilities that are measured at fair value on a non-recurring basis.

Note 30 June 2014 30 June 2013$ $

Recurring fair value measurements Financial assets

Financial assets at fair value through profit and loss:- held for-trading managed funds 8,20(i) 1,008,946 0(i) For investments in managed funds, the fair values have been determined

based on closing quoted bid prices at the end of the reporting period.

$ $Note 22: Company Details

The registered office and principal place of business of the RCSA is: Level 3 63 Exhibition Street Melbourne Victoria 3000

In accordance with a resolution of the directors of Recruitment & Consulting Services Association Limited, the directors of the company declare that:

1. The financial statements and notes, as set out on pages 8 to 22, are in accordance with the Corporations Act 2001 and:

(a) comply with Australian Accounting Standards - Reduced Disclosure Requirements; and

(b) give a true and fair view of the financial position of the company as at 30 June 2014 and of its performance for the year ended on that date.

2. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

Robert Van Stokrom FRCSA Robert Olivier FRCSA Director Director

Dated this 26th day of August 2014 Queenstown, New Zealand

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DIRECTORS’ DECLARATION For the year ended 30 June 2014

INDEPENDENT AUDIT REPORT

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INDEPENDENT AUDIT REPORT continued

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Recruitment & Consulting Services Association LimitedAustralia & New Zealand

Australia ABN 41 078 606 416New Zealand GST No. 69 328 717

Level 3, 63 Exhibition StreetMelbourne VIC 8000

AustraliaT: +61 9663 0555F: +61 9663 5099

E: [email protected]

2014 ANNUAL REPORT · recognised CPD. RCSA Learning Centre is recognised as the leader in education...

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