Annual Report 2011

annual report 2011 | the societ y

our charter

The Royal Agricultural & Horticultural Society of South Australia contributes to the promotion and success of South Australia’s primary industry through the staging of events and the rewarding of excellence.

- Wh at We d o -

Promote and direct the Royal Adelaide Show ensuring its continued relevance to both industry and the community;Educate the community about the importance of primary production to the South Australian economy

with emphasis on the everyday relationship between what we grow and what we consume;Encourage and recognise excellence in agriculture and horticulture through

the staging of competitions, exhibitions and education programs, andManage a vibrant Showground and event and exhibition business hosting many corporate and public events.

- We va lu e -

History – We value our historical origins and traditions;Excellence – A culture of excellence is fostered to recognise the valuable contribution

of our members, councillors, volunteers and employees;Health and Safety – A proactive approach and culture is exercised regarding work health and safety

to ensure the wellbeing of employees, public and environment;Environment – As an environmental leader we strive to minimise the impact of our actions;Reputation – We value our high standing within the South Australian community and the

iconic status of the Royal Adelaide Show;Sound financial management – In a financially responsible manner we actively manage

and develop our portfolio of assets, and

Innovation – We embrace the future and the opportunities it presents.

- We m e a su r e o u r su ccess by -

Competitive entries and general attendance at Royal Adelaide Shows;The achievements of our event and exhibition business;

Monitoring our environmental footprint;Our financial standards and industry benchmarks, and

Feedback from members, councillors, volunteers, exhibitors, sponsors, the media and general public.

a n n ua l r ep o r t 1 1 | t h e s o ci e t y

contents

5 b o a r d o f m a n a g e m e n t

6p r e s i d e n t ’s r e p o r t

8c h a i r m a n ’s r e p o r t

10c h i e f e x e c u t i v e’s r e p o r t

14k e y s tat i s t i c s a n d a c h i e v e m e n t s

15t r e a s u r e r ’s r e p o r t

16f i n a n c i a l s tat e m e n t s

22b o a r d o f m a n a g e m e n t r e p o r t

23s tat e m e n t b y b o a r d o f m a n a g e m e n t

24i n d e p e n d e n t a u d i t r e p o r t

26s o c i e t y m a n a g e m e n t c h a r t

5a n n ua l r ep o r t 1 1 | t h e s o ci e t y

board of management

( t o p l- r ) a n d r e w h a r d y / b o b s n e w i n / c h a r l i e d o w n e r / r i c h a r d w a l s h / k e i t h m c f a r l a n e / b r u c e m c f a r l a n e ( b o t t o m l - r ) w a l t e r d u n c a n - t r e a s u r e r / j o h n r o t h w e l l - c h i e f e x e c u t i v e / r i c h a r d f e w s t e r - p r e s i d e n t

r o b e r t h u n t - c h a i r m a n / r o b e r t r h a r t / j o c k d u n c a n - a m

6 a n n ua l r ep o r t 1 1 | t h e s o ci e t y

president’s report

A bumper Royal Adelaide Show, fiercely contested Royal Adelaide Wine Show and the continued growth of the Adelaide Showground as South Australia’s leading venue for public events combined to make 2011 a great year for the Society.

Boosted by good weather, the 2011 Show enjoyed strong attendance figures, near-record competitive entries and positive commercial sales figures. Nearly 490,000 patrons enjoyed a diverse entertainment program which featured everything from delicate floral costumes in the daily Jenny Gillies Naughty by Nature parades to the fun-filled Farmer Gets a Wife contest in the Main Arena.

On the competitive front, the Show attracted 29,755 entries in 55 sections – the sixth largest number in the history of the Society. The Royal Adelaide Show continues to attract the most competitive entries of any Royal Show in Australia.

The inaugural Royal Show Volunteer Program was launched in 2011 with international students from China, Iran and the US being among the loyal team of volunteers who successfully assisted Show patrons in various roles around the event.

The Royal Adelaide Wine Show retained its position as the country’s most prestigious, attracting over 2,400 entries. Margaret River winery Vasse Felix took out the Most Outstanding Wine in Show trophy, while the Gramp Hardy Hill Smith Prize for Outstanding Wine of Provenance was won by Coonawarra label Majella.

r i c h a r d w f e w s t e r

r o y a l a d e l a i d e s h o w 20 11 h o r t i c u l t u r e d i s p l a y

r o y a l a d e l a i d e s h o w 20 11 c o k e s t a g e


In 2011 the Society also staged the first Royal Adelaide Beer Show since the 1800s, attracting 80 entries from three States. Adelaide Hills’ micro-brewery Lobethal Bierhaus was named Champion Exhibitor. We look forward to the continued growth of this competition.

The Society once again supported the Olives SA Awards, recognising the achievements and continued growth of this industry. Congratulations to all entrants and winners, including overall winner, Coonalypn’s Longridge Olives.

Our Education Foundation continued to encourage South Australia’s young people to pursue careers in agriculture. Key sponsorships in 2011 included the Young Rural Ambassador Award, won by Gawler and Northern Show Association representative, Aaron Bain, with runner up Sarah Horne from Eyre Peninsula, and the SA Wine Press Club Media Cadetship, won by Jessica Henderson. The Foundation also supported the University of Adelaide’s Meat Judging Team, enabling them to compete in the Intercollegiate Meat Judging Competition at the University of New England.

The Archives Foundation also continued its work in preserving the history of the Society, many thanks to the organisations and individuals who support the Archives Foundation and especially in the years leading up to 2014 when the Society will celebrate its 175th birthday.

Finally, on behalf of the Royal Agricultural & Horticultural Society Board, I would like to thank the Society’s staff, sponsors, volunteers, committee members, exhibitors and media partners for their support in 2011.

Richard W Fewster President3 February 2012

g r a e m e l o w e m d o f f m i l l e r + c o a n d i n t e r n a t i o n a l w i n e j u d g e m a d e l e i n e s t e n w r e t h m w

m i c h a e l g r a m p a l o n g s i d e h i s f a t h e r a n d s o c i e t y h o n o r a r y l i f e m e m b e r m r c o l i n g r a m p a m


With extremely tough weather conditions putting a dampener on the 2010 Royal Adelaide Show it was heartening to see this year’s event return to form.

Good conditions for the first four days saw the Show get off to an excellent start and, though wintry weather returned in the latter half, a solid attendance figure of 489,554 was achieved. Just over 6% more than the 2010 figure, and higher than the three-year average of 481,811, this pleasing result was supported by strong food and beverage sales and above average carnival and showbag returns.

Maintaining its mantle as the Royal Show with the most competitive entries in Australia, the 2011 Show attracted 29,755 entries – within close range to the 2005 record of 30,099 entries and a milestone we hope to surpass in 2012.

The Royal Adelaide Show would not be possible without the 100-plus councilors who put in countless hours of hard volunteer work – both during the Show and throughout the year – to ensure a professional and entertaining event is presented. Thanks this year also to the team of public volunteers who did a marvelous job during the Royal Show – I’m sure this is the beginning of a new tradition that will be long upheld.

c h a n g e s t o t h e s o c i e t y ’s c o u n c i l i n 20 11 i n c l u d e

Board of Management AppointmentsRichard W Fewster – now President & Trustee Charlie M Downer – Former President & now appointed Trustee

Changes to Executive Committee ResignationsTom W BowdenPeter S Gill

AppointmentsAdrian G BurgessRobyn J Muster

Changes to CouncilResignationsPeter S GillAlan D GreenHugh GrundySuzanne J HodderProf Isak S Pretorius

AppointmentsGreg M Cramond (Ex-Officio, Horticulture)Graham T Reu (Dairy Cattle & Pig)Greg Follett (Wine)Ian J Freebairn (Grains & Fodder)

chairman’s report

r o b e r t h u n t

r o y a l a d e l a i d e s h o w 20 11 g r a n d p a r a d e


Honorary Councillors AppointmentsPeter S GillJames W Young

BereavementsIt is with sadness that we record the passing of three of our members during the year. We extend our sincere sympathy to their families.

Sir Donald B Dunstan, AC, KBE, CB Former Patron of Society & Honorary Life Member

Bill (WLJ) Egan Dog Committee (1954-1995)Honorary Councillor

B Rex Sandow Woodcutting Committee (1965-1990)Honorary Councillor

Long Serving Volunteer Awardsn a m e c o m m i t t e e

Peg Rothe Dairy Cattle and PigTerry McMahon Art, Craft, Cookery & TechnologyHelen Mickan Art, Craft, Cookery & TechnologyKaye Naughton Art, Craft, Cookery & TechnologyRon Corso Art, Craft, Cookery & TechnologyGeoff Miller Art, Craft, Cookery & TechnologyRussell McMillan Art, Craft, Cookery & TechnologyJulie Jenkins Poultry and PigeonMaureen Holbrook Art, Craft, Cookery & TechnologyBarry Tugwell Horticulture Peter Gallasch Horticulture

I would like to thank all Councillors and Society Staff, in particular Chief Executive John Rothwell, for their ongoing commitment and effort during the year.

The venue continues to shine and regular feedback from the public and event organisers reinforces our opinion that the exhibition space is meeting business and consumer expectations and needs. I congratulate John and the team on another successful year.

Thank you again to Kerstin Freund. Kerstin, it’s your professional administration skills which make my position as Chairman enjoyable and efficient, thank you.

Robert Hunt Chairman3 February 2012

r o y a l a d e l a i d e s h o w 20 11 b e e f c a t t l e e x h i b i t o r


chief executive’s report

r o ya l a d e l a i d e s h o w

Strong attendance figures, a near-record level of competitive entries and good weather conditions resulted in an excellent 2011 Royal Adelaide Show.

A pleasing 489,554 people attended the Show, up by 6.1% on 2010 and higher than the three-year average of 481,811. Many commercial exhibitors reported their best Show ever; carnival sales increased by 9% and food and beverage spending rose by 17.2%. Showbag sales were consistent with past years – an excellent result considering the tough economic climate.

Keen to make their Show dollar go further, many visitors took advantage of the 10% discount offered to those who pre-purchased tickets. Fifty-two per cent of all tickets sold were bought in advance – a 19% increase on the previous year.

Approximately 8,000 tickets – valued at over $120,000 – were donated to 21 charity groups. Additional tickets were donated to various organisations for fundraising activities.

New ways of marketing the Royal Show proved effective in 2011. The second edition of The Show Magazine was distributed to 400,000 households across Adelaide and via IGA and Foodland stores in regional areas, and our new mobile phone APP generated over 46,000 downloads. Our Facebook ‘friends’ grew by a staggering 325% to 8,277. The 2011 Royal Show also enjoyed strong media support, achieving substantial coverage across all South Australian media outlets. We were delighted to announce IGA as the Show’s inaugural Presenting Partner, and to re-sign the Seven Network and Coca-Cola as Premier Partners.

The 2011 Show also signalled the beginning of a 15-year agreement with the Adelaide City Council for Show parking in the South West Park Lands. This agreement provides the Society and its patrons with long-term certainty regarding Parklands access and management. Parking for people attending the 2011 Show was also available at the ETSA Park Stadium and ETSA staff carpark. These venues provide an important alternative for wet years and will continue to be promoted.

Many patrons took advantage of public transport, with overall numbers up by 3.6% and Train Shuttle patronage increasing by a pleasing 13.1%.

j o h n w r o t h w e l l

r o y a l s h o w c r o w d e n j o y i n g t h e h a m i l t o n b o u l e v a r d


A strong competitive section saw 29,755 entries in 2011 – the sixth largest number in the Society’s history and just shy of the overall record of 30,099 in 2005. We are proud of the fact that the Society has the most competitive entries of any Royal Show in Australia. Record numbers were achieved in the Cavies, Dog Photography and Weight Pull, Angora Goats, Led Goat Wether and Olives. Strong numbers were recorded in all feature breed classes, including Ayrshire dairy cattle, Corriedale sheep, Santa Gertrudis beef cattle and Schnauzer dogs.

The carnival rides continued their popularity. There were five new rides in 2011, with Disk’0 and the family-friendly Jurassic Coaster two of the favourites. A strong entertainment program, featuring everything from high-performance utes to family-friendly acts, saw thousands of patrons flock to seven distinct entertainment precincts, while floral artist Jenny Gillies bid a flamboyant farewell to the Goyder Pavilion with her stunning show Naughty by Nature.

r o ya l a d e l a i d e w i n e s h o w

Chardonnay continued its dominance at the 2011 Royal Adelaide Wine Show, being declared the most outstanding wine for the third consecutive year.

Vasse Felix won the Most Outstanding Red or White Wine in Show trophy for their 2010 Heytesbury Chardonnay, also taking out the Best Chardonnay and Best White Wine titles.

The Clare Valley’s Leasingham Wines took out the Best Red Wine in Show and Best Shiraz trophies for their Classic Clare Shiraz, while Barossa stalwarts Wolf Blass Wines and Peter Lehmann Wines performed well, taking out three and two trophies respectively.

Majella Wines from the Coonawarra took out the prestigious Gramp, Hardy, Hill Smith Prize for Outstanding Wine of Provenance, winning the award for its Majella Cabernet Sauvignon. New South Wales and Victorian wineries also performed strongly.

The 2011 Royal Adelaide Wine Show attracted 2,414 entries from 318 Australian wineries. A total of 23 trophies, 158 gold medals, 250 silver medals and 631 bronze medals, across 67 classes, were awarded. Special thanks to the Chairman of Judges, Brian Walsh, and guest international judge, Madeleine Stenwreth MW from Sweden.

k e n t h a l l e t t, j i m r o w n t r e e ( c o o n a l p y n o l i v e s ) , r i c h a r d w h i t i n g ( p r e s i d e n t o l i v e s s a )

r o y a l s h o w m a i n a r e n a m o t o c r o s s e v e n t

b e e r s h o w w i n n e r s


a d e l a i d e e v e n t & e x h i b i t i o n c e n t r e ( a e e c )

In 2011 the Adelaide Showground cemented its reputation as the preferred venue for large-scale public events and exhibitions in South Australia, staging 40 events and hosting one million visitors.

Nine new events were secured, including the Supaloc Classic Targa public evening, the Mummy Tree Markets and Fringe Family Weekend, and several major events were welcomed back, including the Big Day Out, Caravan & Camping Show and Mind, Body & Spirit Festival. The Good Food & Wine Show grew substantially in 2011, and we were delighted to once again host the Boat Show.

The business development arm of the Adelaide Showground, the Adelaide Event & Exhibition Centre (AEEC), continued to aggressively market the venue interstate, regularly meeting with key decision-makers in Melbourne and Sydney, reinforcing the Adelaide Showground’s world-class facilities, near-city location and extensive promotional support. In 2011 the AEEC – under direction of the Society – also made the decision to focus its attention on public events and exhibitions, rather than the catered function market – a strategy which is already paying dividends.

2011 also saw the Adelaide Showground win the Speciality Venue category of the Meetings & Exhibition Australia Awards.

We also continued to showcase our environmental credentials, installing a $260,000 viewing platform above the solar voltaic installation – one of the largest in the Southern Hemisphere and works began on the development of a new Ringmasters building on the Main Arena ready for completion by the 2012 Royal Show.

chief executive’s report

20 11 b o a t s h o w

r o y a l s h o w c o r p o r a t e h o s p i t a l t y

r o y a l s h o w h i l u x h e r o e s


i n d u s t r y a s s o c i at i o n s

The Society continues to provide support and secretarial services through its Rural Services division to more than 20 industry associations in South Australia and interstate.

Among other services these organizations provide guidance, support and advocacy in their area of expertise and industry. The Society works with the following associations;

Agricultural Societies Council of SA, Angus Society of Australia (SA Branch), Australian Dohne Breeders Association, Australian Dorper and White Dorper Association Inc, Australian White Suffolk Association, Australian White Suffolk Association – Superwhites, Australian White Sheep Breeders Association, Australian Pig Breeders Association - SA Branch, Australia Poll Dorset Association, Australia Stud Sheep Breeders Association - SA Branch, Australian Red Poll Cattle Breeders Inc - SA Branch, Charolais Society of Australia (SA Branch), Damara Sheep Breeders Society, Landscape Association of South Australia, National Council of Agricultural Societies Inc, Prime SAMM Sheep Breeders Association - Central Division, Simmental Australia - SA Branch, South Australian Beef Cattle Breeders Association, South Australian Poll Hereford Association, South Australian Young Beef Breeders Association, South Australian Junior Heifer Expo Council Inc, South Australian Potato Industry Trust and The Shorthorn Society of Australia - SA Branch.

a c k n o w l e d g e m e n t s I would like to acknowledge the ongoing valuable support from Society Councillors and Members, volunteers, community organisations, committed sponsors and the media.

Government agencies, and there are many, which assist in keeping the Royal Show and the numerous other events held at the venue each year, a safe and pleasant environment to be a part of.

m a j o r s p o n s o r s

Presenting Partner IGA

Premier PartnersCoca-Cola Amatil and the Seven Network

Royal Adelaide Show and Royal Adelaide Wine Show sponsorsAustralian Broadcasting Corporation, BankSA, Breakfree, Chifley on South Terrace, CNH Australia, Coopers Brewery Ltd, Dan Murphys, Grains Research & Development Corporation, Gray Management Group, Laucke Flour Mills, Lion Dairy & Drinks, Mars Petcare, Rabobank, Sita Environmental Solutions, Venue*Tix, Vilis and Woolworths.

s u p p o r t e r s

The Society acknowledges and thanks the following organisations for their ongoing commitment and coordination, covering all aspects of the Society’s business;

City of Unley, Department of Education & Children’s Services, Department of Transport, Energy & Infrastructure – Public Transport Division, Girl Guides Association (SA) Inc, Lions International, Office of Consumer & Business Affairs, Primary Industries & Resources SA (PIRSA), Rotary Club of Stirling, Scouts Australia, SA Ambulance Service, SA Metropolitan Fire Service, SafeWork SA, The Showmen’s Guild of SA, South Australian Police, South Australian Wine Industry Association, St John Operations Branch, State Emergency Services, TafeSA (Douglas Mawson Institute of Technology – School of Wool and Textiles), TafeSA (Regency Institute – Regency Hotel School), University of Adelaide, and Urrbrae Agricultural High School.

John W Rothwell Chief Executive3 February 2012


key statistics & achievements

C O M P E T I T I V E E N T R I E S 2 0 0 2 T O 2 0 1 1

NU

MB

ER

R O Y A L A D E L A I D E S H O W

N A T I O N A L A V E R A G E

22,000

23,000

24,000

25,000

26,000

27,000

28,000

29,000

30,000

31,000

02 03 04 05 06 07 08 09 10

Y E A R S

Number

11

R E V E N U E B Y S E C T O R 2 0 1 1

O T H E R 8 . 5 %

W I N E S H O W 1 . 9 %

R O Y A L S H O W

6 7 . 8 %

A D E L A I D E E V E N T & E X H I B I T I O N C E N T R E ( A E E C ) 2 1 . 8 %

R E V E N U E

O P E R A T I N G E X P E N S E

R E V E N U E A N D O P E R A T I N G E X P E N S E S 2 0 0 2 T O 2 0 1 1( E X C L U D E S D E P R E C I A T I O N A N D I N T E R E S T )

Y E A R S

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3,000

6,000

9,000

12,000

15,000

18,000

02 03 04 05 06 07 08 09 10 11

Values $’000

B O R R O W I N G S 2 0 0 2 T O 2 0 1 1

Y E A R S

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F I N A N C I A L R E S U L T S 2 0 0 2 T O 2 0 1 1

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-2,000

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3,500

02 03 04 05 06 07 08 09 10 11

Values $’000

n ot e: o p er at i n g r esu lt ( eb i t da) e xclu d es d ep r eci at i o n, i n t er es t, g a i ns o r lo sses o n d isp o s a l a n d m a r k e t va lu e o f a sse t s .d ep r eci at i o n i m pac t o n p ro fi t

100

1,000

2,000

3,000

4,000

5,000

6,000

7,000

02 03 04 05 06 07 08 09 11

Y E A R S

Values $’000

C A P I T A L S P E N D I N G 2 0 0 2 T O 2 0 1 1

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A V E R A G E S P E N D I N G

S P E N D I N G

a .

b.

a . excludes $35 million commonwealth Government Grant b. excludes $ 8 million sa Government Grant


treasurer’s report

The operational result of $2,088,698 after adjusting for investment results, amortisation of government grants (*) and depreciation is detailed below.

Depreciation for the year of $3,444,519 includes $1,081,986 relating to assets funded by government grants.

The net deficit for the year of $1,650,513, includes the impacts of unrealised losses on investments and annual depreciation on fixed assets.

Note 2011 2010$’000 $’000

Net Deficit (1,651) (1,935)Deduct investment results:Unrealised loss (827) (344)Realised (loss)/gain (43) 20Dividend Income 575 339

(1,356) (1,950)Amortisation of Govt Grant over estimated life cycle of related assets (*) 1,082 1,082

Operational result (274) (868)Deduct depreciation on assets not funded by Government Grant 2,362 2,304

Operational Result before depreciation 2,088 1,436Summary of Cash FlowsNet cash inflow from operating activities 2,453 1,134Net cash outflow from investing activities (1,945) (1,234)Net cash outflow from financing activities (250) 250Net increase in cash held 258 150(*) In accordance with relevant accounting standards (AASB 120 ‘Accounting for Government Grants’), government grants received in 2007 and 2008 were recognised as income in the year the grants were received. However for analysis purposes these grants are amortised to income over the expected life of the related asset.

With reference to the above, the operational result before depreciation is reflected in the positive cashflow from operating activities. This cash inflow funded the net investment in capital infrastructure and listed securities. Capital expenditure included the acquisition of vacant land in Leader Street ($579,000), internal and external

signage ($515,000) and the solar panel viewing platform ($309,000).

i n v e s t m e n t s

The Society’s investment portfolio recorded an unrealised loss of $827,072 for the year, reflecting the uncertainty in global markets and particularly the financial crisis in Europe in the latter part of the year. The portfolio is held as a hedge against extreme adverse Show conditions, recognising the importance of the Show to the Society’s operations.

The Investment Committee met regularly during the year and, after considering advice from Macquarie Equities Limited, invested a further $803,620 in listed shares, consistent with the Society’s policy to reinvest dividend and sales proceeds over time to continue to build and strengthen the investment portfolio. Gross dividends of $575,133 were received during the year which included dividends of $178,798 resulting from participation in a share buy-back scheme offered by BHP Billiton.

The Board approved donations of $17,980 to the Archives and Education Foundations, representing 5% of dividend franking credits received in 2011.

i n s u r a n c e

Premiums for 2011 were $56,500 or 16% lower than 2010. More favourable premiums were able to be negotiated on certain policies as a result of the Society’s low claims history and comprehensive risk management policies as well as the grouping of these policies with a number of other interstate Agricultural Societies. Premiums for 2012 have now been finalised and have increased by $6,325 or 2.1%.

m a n a g e m e n t

The Society is committed to sound financial management which allows it to fulfil its Charter and maximise its contribution to the success and promotion of Primary Industries in South Australia through the staging of events and rewarding excellence.

Walter Duncan, Treasurer 3 February 2012

wa lt e r d u n c a n


financial statements

i n c o m e s tat e m e n t

for the Financial Year Ended 31 December 2011

Note 2011 2010$ $

Revenue from continuing operations 2 17,325,189 16,157,553Employee benefits expense (3,623,008) (3,543,240)

Depreciation expense (3,444,519) (3,386,851)

Borrowing costs (294,000) (238,612)

Event expenses (5,982,028) (6,020,618)

Administration expenses (1,342,890) (1,288,440)

Maintenance and service of grounds (2,008,548) (2,152,476)

Advertising and promotion expenses (593,959) (489,313)Gain on disposal of property plant & equipment 3,549 5,500

Unrealised loss on investments (827,072) (344,458)

(Loss)/Gain on disposal of investment (42,753) 20,079

Other expenses (820,474) (653,958)

Deficit From Continuing Operations (1,650,513) (1,934,834)

Total Deficit (1,650,513) (1,934,834)

b a l a n c e s h e e t

as at 31 December 2011

Note 2011 2010$ $

Current AssetsCash and cash equivalents 3 754,968 496,668Trade Receivables 4 404,723 961,459Other 5 181,461 207,415Total Current Assets 1,341,152 1,665,542

Non-Current AssetsOther financial assets 6 5,547,093 5,651,012Property, plant & equipment 7 91,166,969 92,853,556Total Non-Current Assets 96,714,062 98,504,568

Total Assets 98,055,214 100,170,110

Current LiabilitiesTrade and other payables 8 1,181,382 1,450,462Current Provisions 9 180,628 206,772Total Current Liabilities 1,362,010 1,657,234

Non-Current LiabilitiesBorrowings 10 3,000,000 3,250,000Trade and other payables 11 92,473 100,321Provisions 12 354,769 266,080Total Non-Current Liabilites 3,447,242 3,616,401Total Liabilities 4,809,252 5,273,635Net Assets 93,245,962 94,896,475EquityRetained surplus 13 93,245,962 94,896,475Total Equity 93,245,962 94,896,475

n o t e s

for the Financial Year Ended 31 December 2011

1. Summary of Accounting Policies

Financial reporting framework

The Royal Agricultural & Horticultural Society of SA Inc. (Society) is not a reporting entity because in the opinion of the Board of Management there are unlikely to exist users of the financial report who are unable to command preparation of reports tailored so as to satisfy specifically all of their information needs.

Accordingly, this ‘special purpose financial report’ has been prepared to satisfy the Board of Management’s reporting requirements under the Associations Incorporations Act 1985.

Statement of compliance

The financial report has been prepared in accordance with the Associations Incorporations Act 1985, in South Australia and the basis of accounting, but not the disclosure requirements, specified by applicable Accounting Standards and Interpretations. Accounting Standards include Australian equivalents to International Reporting Standards (“A-IFRS”).

Basis of preparation

The financial report has been prepared on the basis of historical cost, except for the revaluation of certain non-current assets. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars.

In the application of A-IFRS, management is required to make judgments, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgments.


Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Judgments made by management in the application of A-IFRS that have significant effects on the financial statements and estimates with a significant risk of material adjustments in the next year are disclosed, where applicable, in the relevant notes to the financial statements.

Significant Accounting Policies

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 31 December 2011 and the comparative information presented in these financial statements for the year ended 31 December 2010.

The following significant accounting policies have been adopted in the preparation and presentation of the financial report.

(a) Payables

Trade payables and other accounts payable are recognised when the Society becomes obliged to make future payments resulting from the purchase of goods and services.

(b) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and cash in banks. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

(c) Borrowing Costs

Borrowing costs directly attributable to buildings under construction are capitalised as part of the cost of those assets.

(d) Property, plant and equipment

Property, leasehold improvements, plant and equipment are measured at cost less accumulated depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition of the item. In the transition to A-IFRS the value of freehold land and buildings as at 1 January 2004 has been taken at deemed cost.

Depreciation is provided on property, plant and equipment, including freehold buildings but excluding land and investment properties. Depreciation is calculated on a straight line basis so as to write off the net cost or other revalued amount of each asset over its expected useful life to its estimated residual value.

Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the straight line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period.

The following estimated useful lives are used in the calculation of depreciation:

Buildings ............................................................20 to 50 yearsLeasehold improvements ...................................20 to 50 yearsPlant and equipment ............................................3 to 10 yearsThere were no changes to residual values of existing property, plant and equipment.

(e) Employee Benefits

Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave when it is probable that settlement will be required and they are capable of being measured reliably. Provisions made in respect of wages and salaries and annual leave expected to be settled within 12 months, are measured at their nominal values using remuneration rates expected to apply at the time of settlement.

n o t e s c o n t i n u e d. . .



Provisions made in respect of long service leave which is not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the Society in respect of services provided by employees up to the reporting date.

(f) Goods and Services Tax

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:

• where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or

• for receivables and payables which are recognised inclusive of GST.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.

(g) Borrowings

Commercial Bills are recorded at an amount equal to the gross proceeds received. Interest expense is recognised on an accrual basis.

Ancillary costs incurred in connection with the arrangement of borrowings are deferred and amortised over the period of borrowing.

Commercial Bills, where the facility term is greater than twelve months and that are due to be repaid within the next twelve months, but that will be rolled over at the discretion of the Society, are considered to form part of the Society’s long term financing and are recognised as non-current.

(h) Investments

Investments are recognised and derecognised on trade date where purchase or sale of an investment is under contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs.

Financial assets at fair value through surplus or loss

The Society has classified certain shares as financial assets at fair value through surplus or loss. Financial assets held for trading purposes are classified as current assets and stated at fair value, with any resultant gain or loss recognised in surplus or loss. Fair value is determined in the manner described below.

Fair value of financial assets

The fair values of financial assets with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices.

(i) Receivables

Trade receivables and other receivables are recorded at amounts due less any provision for doubtful debts.

(j) Impairment of Assets

At each reporting date, the Society reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss.

If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the Society estimates the recoverable amount of the cash-generating unit to which the asset belongs.



Recoverable amount is the higher of fair value less costs to sell and value in use. Value in use is depreciated replacement cost.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised in surplus or loss immediately, unless the relevant asset is carried at fair value, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised in surplus or loss immediately, unless the relevant asset is carried at fair value, in which case the reversal of the impairment loss is treated as a revaluation increase.

(k) Revenue Recognition

Revenue from events is recognised only when the event has been presented.

(l) Income Tax

The Society is exempt from Income Tax.

(m) Life Membership

The Society receives subscriptions from Life Members in full and recognises subscription income over a ten year period. The unearned portion of Life Membership income is recorded as a non-current liability.

(n) Leased Assets

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

2011 2010$ $

2 Revenue from continuing operationsSurplus from Operations includes the following items of income and expenseOperating IncomeSales revenue:Exhibition space rental & selling rights 2,726,307 2,543,621

Royal Show space rental selling rights etc 3,854,977 3,724,264Royal Show gate takings 4,781,335 4,471,217Competitive entry fees & related charges 1,261,511 1,017,201Catering & car parking 2,154,699 2,133,528

Rental income-property 93,233 116,098

Sponsorship & prizes 1,348,727 1,196,044Other 487,617 601,250

16,708,406 15,803,223Interest income 41,650 15,335Dividend income 575,133 338,995

17,325,189 16,157,5533 Cash and cash equivalents

Operating accounts including cash 754,968 496,668754,968 496,668

4 Trade ReceivablesTrade receivables 299,607 724,825Allowance for doubtful debts (30,507) (23,392)

269,100 701,433Goods and Services Tax (GST) recoverable 58,226 67,897Dividend Imputation Credits receivable 77,121 174,952Other 276 17,177

404,723 961,4595 Other Current Assets

Prepayments 68,725 156,695Other receivables 112,736 50,720

181,461 207,4156 Other Non-Current Financial Assets

Investments in Public Companiesat market value 5,547,093 5,651,012

5,547,093 5,651,0127 Property, Plant and Equipment

Freehold land & buildingsAt deemed cost 19,357,109 18,778,342Accumulated depreciation (64,672) (53,694)

19,292,437 18,724,648Leasehold improvementsAt cost 79,512,311 78,885,464Accumulated depreciation (22,199,320) (20,203,333)

57,312,991 58,682,131Plant and equipmentAt cost 21,139,874 20,623,564Accumulated depreciation (6,578,333) (5,176,787)

14,561,541 15,446,77791,166,969 92,853,556




2011 2010$ $

8 Current PayablesTrade payables 228,362 428,956Goods and Services Tax (GST) payable 42,767 63,564Accruals 910,253 957,942

1,181,385 1,450,4629 Current Provisions

Employee benefits (note 14) 180,628 206,77210 Non-Current borrowings Secured

Commercial Bills 3,000,000 3,250,00011 Non-current payables

Life membership 92,473 100,32112 Non-current provisions

Employee benefits (note 14) 354,769 266,08013 Retained Surplus

Balance at beginning of financial year 94,896,475 96,831,309Net Deficit (1,650,513) (1,934,834)Balance at end of financial year 93,245,962 94,896,475

14 Employee entitlementsThe aggregate employee entitlement liability recognised and included in the financial statement is as follows: Provision for employee benefits:Current (note 9) 180,628 206,772Non-current (note 12) 354,769 266,080

535,397 472,85215 Remuneration of auditors

Audit or review of the financial report 22,365 28,454Other non-audit services (Advisory) 12,870 38,067

35,235 66,52116 Capital expenditure commitments

Property, plant and equipment

Not longer than 1 year 614,500 -

17 Operating Leases

The part of the Adelaide Showground, which is not held freehold by the Society, is subject to an operating lease at $1 per annum rental until 24 March 2062. The Society does not have an option to purchase the leased asset at the expiry of the lease period.

18 Contingent Liability

The Society is not aware of any liability of a material nature that has not been provided for in preparation of the financial reports.

19 Comparative amounts

Certain balances in the prior year comparative information were reclassified to conform with the current year’s presentation.


20 Foundations

The Society operates two foundations.

Royal Agricultural & Horticultural Archives Foundation of South Australia Incorporated has been registered as a Tax Exempt Charity and Deductible Gift Recipient for Income Tax purposes.

During the year ended 31 December 2011, the Archives Foundation generated total revenue of $77,069 including $70,480 in financial support by the Society and, after deducting operating expenses, reported a net surplus of $15,206 which will be applied to future projects of the Archives.

Royal Agricultural & Horticultural Education Foundation of South Australia Incorporated which has been self assessed as Income Tax Exempt.

During the year ended 31 December 2011, the Education Foundation generated total revenue of $31,224 by way of financial support from the Society and, after providing educational scholarships of $14,609 and other expenses of $3,231, reported a net surplus of $13,384.

The Society also created a Trust Deed for Royal Agricultural & Horticultural Scholarship Fund which has been registered as a Tax Exempt Charity and Deductible Gift Recipient for Income Tax purposes.

During the year ended 31 December 2011 the Scholarship Fund generated total revenue of $9,395 including $2,136 in tax deductible donations and Society funding of $4,632. After providing educational scholarships of $12,000 the fund reported a net deficit of $2,605 which was supported by accumulated funds held. The balance of funds will be consolidated with future revenues and applied to scholarships for prescribed educational courses relating to agriculture, pastoral, horticulture or related industries.

21 Related Party Disclosure

The Members of the Board during the year were:

Richard W Fewster President and Chairman of Board &Trustee

Robert J Hunt Chairman - CouncilRobert R Hart Deputy Chairman - CouncilWalter H Duncan TreasurerCharles M Downer TrusteeJock G Duncan, AM TrusteeRichard T Walsh TrusteeAndrew M Hardy Bruce F McFarlane R Keith McFarlane Robert L Snewin

Transactions between the Society and Board of Management member related entities are trivial in nature and occur within normal customer/supplier relationship on terms and conditions no more favourable than those which it is reasonable to expect would have been adopted if dealing at arm’s length in the same circumstances.

Members of the Board of Management act in an honorary capacity and receive no remuneration or benefits from the Society for acting in that capacity. Employees involved in the management of the Society are remunerated on bases determined by relevant workplace agreements and/or industrial awards or commensurate with the duties and responsibilities required of the individual positions as approved by the Board of Management.


t o t h e m e m b e r s o f r o ya l a g r i c u lt u r a l a n d h o r t i c u l t u r a l s o c i e t y o f s o u t h a u s t r a l i a i n c

In accordance with section 35(5) of the Associations Incorporation Act 1985, the Board of Management of the Royal Agricultural & Horticultural Society of South Australia Inc hereby states that during the financial year ending 31 December 2011:

(a) (i) no officer of the Society; (ii) no firm of which an officer is a member; and (iii) no body corporate in which an officer has a substantial financial interest,

has received or become entitled to receive a benefit as a result of a contract between the officer, firm or body corporate and the Society except for the following;

Transactions between the Society and Board of Management related entities are trivial in nature and occur within a normal customer/supplier relationship on terms and conditions no more favourable than those which it is reasonable to expect would have been adopted if dealing at arm’s length in the same circumstances.

(b) no officer of the Society has received directly or indirectly from the Society any payment or other benefit of a pecuniary value except for the following:

Members of the Council act in an honorary capacity and receive no remuneration or benefits from the Society for acting in that capacity. Employees involved in the management of the Society are remunerated on bases determined by relevant industrial awards or workplace agreements commensurate with the duties and responsibilities required of the individual positions and approved by the Board of Management.

This information is disclosed in the Financial Statements at Note 21 Related Party Disclosure.

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

Richard Fewster PresidentAdelaide, 3 February 2012

Walter Duncan TreasurerAdelaide, 3 February 2012

board of management report


i n t h e o p i n i o n o f t h e b o a r d o f m a n a g e m e n t

(a) The accompanying Financial Statements present fairly the results of the operations of the Society for the financial year and the state of affairs of the Society as at the end of the financial year; and

(b) The Board of Management has reasonable grounds to believe that the Society will be able to pay its debts as and when they fall due.

Signed in accordance with a resolution of the Board of Management.

Richard Fewster PresidentAdelaide, 3 February 2012

Walter Duncan TreasurerAdelaide, 3 February 2012

statement by board of management

2 4 a n n ua l r ep o r t 1 1 | t h e s o ci e t y

independent audit report

t o t h e m e m b e r s o f r o ya l a g r i c u lt u r a l a n d h o r t i c u l t u r a l s o c i e t y o f s o u t h a u s t r a l i a i n c We have audited the accompanying financial report, being a special purpose financial report, of Royal Agricultural & Horticultural Society of South Australia Inc (“the Society”), which comprises the balance sheet as at 31 December 2011, the income statement for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and statement by the Board of Management as set out on pages 16 to 23.

t h e b o a r d o f m a n a g e m e n t ’s r e s p o n s i b i l i t y f o r t h e f i n a n c i a l r e p o r t

The Board of Management is responsible for the preparation and fair presentation of the financial report and have determined that the basis of preparation described in Note 1, is appropriate to meet the financial reporting requirements of the Associations Incorporation Act 1985 and is appropriate to meet the needs of the members. The Board of Management’s responsibility also includes such internal control as the Board of Management determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

a u d i t o r’s r e s p o n s i b i l i t y

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance 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 and fair presentation of the financial report 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 Board of Management, 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.


a u d i t o r’s o p i n i o n

In our opinion, the financial report presents fairly, in all material respects, the financial position of Royal Agricultural & Horticultural Society of South Australia Inc as at 31 December 2011 and its financial performance for the year then ended in accordance with the financial reporting requirements of the Associations Incorporation Act 1985 as described in Note 1.

We have obtained all of the information and explanations that we required from the Society.

b a s i s o f a c c o u n t i n g

Without modifying our opinion, we draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared to assist Royal Agricultural & Horticultural Society of South Australia Inc to meet the financial reporting requirements of the Associations Incorporation Act 1985. As a result, the financial report may not be suitable for another purpose.

DELOITTE TOUCHE TOHMATSU

S T Harvey PartnerChartered Accountants Adelaide, 3 February 2012


society management chart

e x e c u t i v e c o m m i t t e e - i n c . b o a r d o f m a n a g e m e n t

Robert D Battams Adrian G Burgess Hamish C Findlay Trevor G James Robert J Lott Robyn J Muster

Andrew H Bone David W Fechner Jock VE Gosse Rob W Linn Bronwyn J Mullins David N Read

Ann L Bone

c o u n c i l

Thomas E Ashby Lachlan J Day Jock VE Gosse Sean J Kay * Robyn J Muster Gary Schulz

Robert D Battams Ian B Digby Andrew S Green * Philip L Laffer Dennis R Mutton John Schutz

Keith A Bennett Timothy J Donaldson Jonathan S Hall Rex L Liebelt Grant Octoman Pamela K Seppelt

Michael C Blenkiron Brett Draper Neville M Hallion Trevor W Linke Brian Parker * William A Seppelt

Andrew H Bone Walter H Duncan Robert W Hamdorf Rob W Linn Dean M Pettman Emma K Shaw

Ann L Bone Michael K Farmilo Andrew M Hardy Robert J Lott Allan M Piggott Michael P Siebert

Howard J Bone David W Fechner Robert R Hart Francis J McEvoy Dr John C Radcliffe, am Nicholas P Simpson

Thomas W Bowden, oam Raymond L Fiebiger Richard F Haynes Bruce F McFarlane Trevor M Ranford Paul GC Smith

Royce A Bowyer Hamish C Findlay Raelee J Hedger Richard J McFarlane David N Read Robert L Snewin

Graham R Brand Richard G Fishlock * Neil S Henderson R Keith McFarlane Josh D Read Darryl K Squiers

Adrian G Burgess Greg Follett Andrew R Hentschke Elizabeth M McGee Graham T Reu Glen L Trengove

Robert J Butler Ken H Follett Tim Hill * Ian A McGowan J William Richards A Nicholas Wadlow

Tim SG Buxton Ian J Freebairn David J Hubbard Andrew J Michael Lea C Richens Alister AT Walsh

Belinda A Cay Alan L Freeman Robert J Hunt Andrew M Michael Neil P Rothe Cheryl K Wandel

David H Copping Darryl W Freer Graeme P Hyde Joy Middleton William J Rowett Glenys R White

Greg M Cramond * Geoffrey Fuller * Trevor G James James R Morgan Susan J Ryan Ronald J Wright

Graham PC Day Penelope C Goodsall Leith C Jenkins OAM Bronwyn J Mullins Ian B Sanders * Ex-Officio

h o n o r a r y l i f e m e m b e r s

Gary T Campbell, am Colin R Gramp, amMajorie Jackson-Nelson, ac,cvo,mbe

Senator The Hon Nicholas H Minchin Sir Eric J Neal, ac, cvo Phillip E Withers

p a t r o n

His Excellency, Rear Admiral Kevin Scarce, ac, csc, ranr - governor of south australia

b o a r d o f m a n a g e m e n t

Richard W Fewster - president + trustee Walter H Duncan - treasurer Charlie M Downer - trustee R Keith McFarlane

Robert J Hunt - council chairman Jock G Duncan, am - trustee Andrew M Hardy Robert L Snewin

Robert R Hart - council deputy chairman Richard T Walsh - trustee Bruce F McFarlane

c h i e f e x e c u t i v e

John W Rothwell

h o n o r a r y c o u n c i l l o r s

Brian TM Ashby Robin P Coleman Colin L Ekers Robert F Haynes Mark F Robertson Malcolm J Wandel

John S Ayers Robert M Crawford Peter E Ferris Robert A Jenssen David J K Roche Murray G Weston

Frank T Beauchamp Owen F Croser J Michael B Gaden Peter F Kemp Michael JD Scott Alan C Wilson

Barrie J Beaumont Alan V Davidson Bryant L Giles Colin E Lienert Karl J Seppelt, ao Phillip E Withers

A Ray Beckwith oam John G Donaldson Peter S Gill John H Lloyd Robert C Shepherd Ian L Young

A Peter Berry Ronald F Drogemuller Colin R Gramp, am Bruce W Lockier Maxwell K Smart James W Young

David M Cain, psm David L East Robert G Hardy Alistair S Murray Colin J Tindall

as at 31 december 2011

When you walk into the Adelaide Showground you feel like you are in a country town. Adelaide Showground Farmers Market is very proud to call its name sake and founding partner home. The bonds of primary production, land use and our ties with rural South Australia keep us close friends.

Turning 5 years old this year we have grown from 60 stalls to over a hundred. Over 2000 members enjoy the nutritional value of shopping every Sunday for food from the people who grow it. The market has built an ethical food community that supports regional South Australia as it showcases our seasons.

The market is growing to meet local demand for artisan food and we are taking on new stalls that represent businesses from all over this State. We look forward to a bright and sustainable future with Adelaide Showground.

Amanda Daniel Chief Executive Officer

Co-Opera, making opera a personal experience at the Adelaide Showground for 21 years.

Brian Chatterton OAM General Manager and Artistic Director.

“Many people don’t realise that one of the busiest sports stadiums in Adelaide can be found at the end of Rose Terrace Car Park 3 at The Showground. Many of the thousands of Royal Show patrons would know the stadium as the dog pavilion; however outside of Show time the Wayville Sports Centre continues to be one of Basketball SA’s flagship stadiums. Wayville had yet another great year with over 60,000 visits through basketball and other sporting events and our forecast for 2012 is for continued growth beyond the walls of the sports centre into nearby school facilities. Our strong relationship with the Adelaide Showground continues to foster the growth of stadium business and we look forward to continuing the positive relationship and planning for future opportunities.”

Mark Hubbard Chief Executive Officer Basketball SA

wdm design & advertising was appointed by the Royal Agricultural & Horticultural Society of SA in March 2008 as the key advertising agency for the Society.

wdm design & advertising has contributed time to prepare this document inline with their ongoing commitment and support of the Society.

w d m - o u r pa r t n e r

a nnua l rep o rt 2011 | the so cie t y

royal agricultural & horticultural society of south australia incorporated address po box 108, Goodwood, south australia 5034

phone 08 8210 5211 Fax 08 8212 1944 email [email protected] aeec.com.au | theshow.com.au | thewineshow.com.au | rahs.com.au

annual report 2011 | the societ y

Annual Report 2011

Documents

Transcript of Annual Report 2011