AnnualReport - Underwriting Agencies Council Ltd · Directors’ Report The directors of the...

Annual ReportUnderwriting Agencies Council Ltd30 June 2016

Contents

Annual Report | Underwriting Agencies Council Ltd | 30 June 2016 of 15

Compilation Report 3

Directors Declaration 4

Statement of Profit & Loss and other comprehensive income 5

Statement of Financial Position 7

Statement of Changes in Equity 8

Statement of Cash Flows 9

Notes to the Financial Statements 10

Auditors' Independence Statement 14

Expo Income and Expenses 15

David

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Underwriting Agencies Council

Directors’ Report

The directors of the Underwriting Agencies Council present herewith the annual financial report for the financial year ended 30th June 2016.

DIRECTORS

The names and particulars of the directors of the company in office at any time during or since the end of the year are:

Mr Heath Amber Joined the board on the 16 th January 2009 and is a Director of Millenium Underwriting Agencies Pty Ltd

Ms Linda King Joined the board on 10 December 2010 and is a Director of Sterling Insurance Pty Ltd

Mr Lyndon Turner Joined the board on 2 December 2011 and is a Director of NM Insurance Pty Ltd

Mr Peter Fryer Joined the board on 2 December 2011 and is the Operations Manager at Catlin Australia

Mr Peter Marshall Joined the board on 12 th December 2013 and is the Development Manager of Professional Risk Pty Ltd

Mr Kurt Nilsen Joined the board on 12 December 2013 and is the Development Manager of Specialised Underwriting Agency Pty Ltd

Mr David Lamb Joined the board on 11 December 2014 and is the CEO of Sportscover Australia Pty Ltd

Ms Emily Walker Joined the board on 11 December 2014 and is the NSW State Manager for Axis Underwriting Services Pty Ltd

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

COMPANY SECRETARY

The following person held the position of entity Secretary at the end of the financial year:

Mr Peter Fryer

PRINCIPAL ACTIVITIES

The company’s principal activity in the course of the financial period was to represent its members who are made up of Underwriting Agencies and/or Lloyd’s Binder Holders.

OPERATING RESULTS

The net loss for the 2016 financial year was $5,892 (2015: $78,532 loss)

DIVIDENDS PAID OR RECOMMENDED

No dividends were paid or declared since the start of the financial year. No recommendation for payment of dividends has been made.

REVIEW OF OPERATIONS

During the year the Board continued its hard work on behalf of our Membership. Our Expo’s continue to be a great success and well supported by our Memberships, Broking Groups and our Business Partners, as do our professional developments.

Our expansion into New Zealand is progressing well. We held an Expo in Auckland in February which was well supported.

Directors have been allocated goals in relation to the Strategic Plan 2020 and progress in being made on each of these goals.

The UAC is recognised worldwide within insurance markets, In April the UAC and the London based Managing General Agents Association became reciprocal members, at a similar time, the AAMGA in the US also became partners with us on the same structure.

Thank you to our:-

Strategic Underwriting partners – Lloyds Australia Ltd, Vero Insurance Ltd and The Hollard Insurance Group, their support is both valued and greatly appreciated.

Service Providers =- our secretariat – WLM Financial Services Pty Limited, our Lawyers:- Gillis Delaney Lawyers, our Communications & Media advisors – Kate Tilley and our branding and marketing provider:- Fuse Agency Pty Ltd.

A special thank you to William Legge, our General Manager for all his ongoing hard work, enthusiasm and willingness to always do the best for our Members and for the support that he gives to all of the Directors.

SIGNIFICANT CHANGES IN STATE OF AFFAIRS

No significant changes in the entity’s state of affairs occurred during the financial year.

AFTER BALANCE DATE EVENTS

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

FUTURE DEVELOPMENTS

The entity expects to maintain the present status and level of operations and hence there are no likely developments in the entity’s operations.

INDEMNIFICATION OF OFFICERS AND AUDITORS

No indemnities have been given nor insurance premiums paid, during or since the end of the financial year, for any person who is or has been an officer or auditor of the entity.

During the financial year, the company paid a premium of $5,312 to insure the Directors and Secretary and certain officers of the company.

The liabilities insured are legal costs and expenses that may be incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity as officers of the company.

Compilation Report

Liability limited by a scheme approved under Professional Standards Legislation

Annual Report | Underwriting Agencies Council Ltd | 30 June 2016 Page 3 of 15

Underwriting Agencies Council Ltd For the year ended 30 June 2016

We have compiled the accompanying special purpose financial statements of Underwriting Agencies Council Ltd, which comprise theincome statement, balance sheet and statement of cash flows for the period ended 30 June 2016, a summary of significant accountingpolicies and other explanatory notes. The specific purpose for which the special purpose financial statements have been prepared is toprovide information relating to the performance and financial position of the company that satisfies the needs of the members.

The Responsibility of the Directors

The directors of Underwriting Agencies Council Ltd are solely responsible for the information contained in the special purpose financialstatements and have determined that the significant accounting policies adopted as set out in Note 1 to the financial statements areappropriate to meet their needs and for the purpose that the financial statements were prepared.

Our Responsibility

On the basis of information provided by the directors of Underwriting Agencies Council Ltd, we have compiled the accompanying specialpurpose financial statements in accordance with the significant accounting policies adopted as set out in Note 1 to the financial statementsand APES 315: Compilation of Financial Information.

Our procedures use accounting expertise to collect, classify and summarise the financial information, which the directors of the trusteecompany provided, in compiling the financial statements. Our procedures do not include verification or validation procedures. No audit orreview has been performed and accordingly no assurance is expressed.

The special purpose financial statements were compiled exclusively for the benefit of the members of Underwriting Agencies Council Ltd.We do not accept responsibility to any other person for the contents of the special purpose financial statements.

Name of Firm: WLM Financial Services Pty Limited Chartered Accountants

Name of Director: _________________________________ Daniel McGrath

Address: Level 12, 84 Pitt Street SYDNEY NSW 2000

Dated:

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29 September 2016

Statement of Profit & Loss and othercomprehensive income



Underwriting Agencies Council Ltd For the 12 months ended 30 June 2016

Jun-16 Jun-15

Income

Memberships Rece'd, Associates 51,122 34,750

Memberships Received 218,089 205,359

Memberships Received (NZ) 16,960 19,508

Sponsorships Received 247,000 154,500

Total Income 533,171 414,117

Gross Profit 533,171 414,117

Plus Other Income

Expo Income and Expenses (84,184) (89,751)

Interest Income 330 530

Total Other Income (83,854) (89,222)

Less Operating Expenses

Accounting Fees 11,697 11,040

Advertising - Media 39,759 21,968

Amortisation 7,337 360

Audit Fees 4,400 4,300

Bank Fees 3,749 3,141

Conference & Seminar Expenses 2,523 -

Consultancy Fees - GM 96,000 96,000

Consultants - Other - 22,000

Statement of Profit & Loss and othercomprehensive income



Jun-16 Jun-15

Depreciation 4,511 -

Directors Meeting expenses - 1,188

Donations 5,000 -

Employment Expenses 8,199 -

Foreign Currency Gains and Losses 423 941

General Expenses 4,837 3,090

Insurance 5,312 4,880

Internet Expenses 4,062 811

PayPal Fees 25 -

Postage 1,356 597

Printing & Stationery 11,338 1,788

Promotions - Two Cents 4,949 14,044

Rent 13,800 13,800

Secretarial Expenses - KT Journalism 127,602 118,574

Secretarial Expenses - WLM 17,331 14,405

Sponsorship 23,409 37,690

Superannuation Expense 1,277 -

Telephone 780 550

Telephone Lease - 250

Travel & Entertainment 35,559 31,531

Wages Expense 13,440 -

Website Expenses 6,533 479

Total Operating Expenses 455,208 403,428

Net Profit (5,892) (78,532)

Statement of FinancialPosition



Underwriting Agencies Council Ltd As at 30 June 2016

30 Jun 2016 30 Jun 2015

Assets

Current Assets

Accounts Receivable 20,025 22,557

GST 1,898 9,961

NAB NZ acccount 4,188 1 461 2

Prepayments 28,415 68,266

UAC NAB Bank Account 95,849 66,498

UAC NAB Term Deposit 5,092 5,092

Total Current Assets 155,467 172,835

Non-current Assets

Computer Equipment 4,511 -

Less Accumulated Depreciation on Computer Equipment (4,511) -

Trade Mark Costs 3,600 3,600

Less Accumulated Depreciation on Trade Mark Costs (3,590) (3,230)

Website Development Cost 101,867 50,731

Less Accumulated Depreciation on Website Development Cost (41,799) (34,822)

Total Non-current Assets 60,078 16,279

Total Assets 215,545 189,114

Liabilities

Current Liabilities

Accounts Payable 73,685 49,429

Accruals 4,300 4,200

Business Access Credit Card 1,599 2,386

PAYG Withholdings Payable 2,028 -

Superannuation Payable 1,094 -

Unearned Revenue 44,182 38,551

Total Current Liabilities 126,888 94,565

Total Liabilities 126,888 94,565

Net Assets 88,657 94,548

Equity Current Year Earnings (5,892) (78,532)

Retained Earnings 94,548 173,081

Total Equity 88,657 94,548

Notes

1Figures converted into Australian Dollar using the following rate:1.04596 NZD New Zealand Dollar per AUD. Rate provided by XE.com on 30 Jun 2016.

2Figures converted into Australian Dollar using the following rate:1.13738 NZD New Zealand Dollar per AUD. Rate provided by XE.com on 30 Jun 2015.

Statement of Changes inEquity



Underwriting Agencies Council Ltd As at 30 June 2016

30 Jun 2016 30 Jun 2015

Equity

Opening Balance 94,548 173,081

Current Year Earnings (5,892) (78,532)

Total Equity 88,657 94,548

Statement of Cash Flows



Underwriting Agencies Council Ltd From 1 July 2015 to 30 June 2016

Jun 2016 Jun 2015

Cash flows fromOperating Activities

Interest received 330 530

Cash receipts from other operating activities 459,388 329,021

Cash payments from other operating activities 441,438 379,443

Total Cash flows fromOperating Activities 18,280 (49,892)

Cash flows from Investing Activities

Other cash items from investing activities (7,389) (47,239)

Total Cash flows from Investing Activities (7,389) (47,239)

Cash flows from Financing Activities

Total Cash flows from Financing Activities - -

Cash flows fromOther Activities

Cash flows from other activities 18,359 24,065

Total Cash flows fromOther Activities 18,359 24,065

Net increase/(decrease) in cash held 29,250 (73,066)

Opening cash balance 71,590 144,556

Closing cash balance 100,941 71,590

Movement in cash 29,350 (72,966)

Notes to the FinancialStatements



Underwriting Agencies Council Ltd For the year ended 30 June 2016

1. Statement of Significant Accounting Policies

1.(a) Untitled

The financial report is a special purpose financial report that has been prepared in accordance with Australian Accounting Standardsincluding Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and theCorporations Act 2001.

The financial report is for theUnderwriting Agencies Council Ltd as an individual entity, incorporated and domiciled inAustralia.Underwriting Agencies Council Ltd is a company limited by guarantee.

Basis of Preparation

The financial report has been prepared on an accrual basis and under the historical cost convention, except for certain assets, which, asnoted, have been written down to fair value as a result of impairment. Unless otherwise stated, the accounting policies adopted areconsistent with those of the prior year.

The accounting policies that have been adopted in the preparation of the statements are as follows:

1.(b) Income Tax

The income tax expense for the year comprises current income tax expense. The company does not apply deferred tax. Current income taxexpense charged to the profit or loss is the tax payable on taxable income calculated using applicable income tax rates enacted, orsubstantially enacted, as at 30 June 2016. Current tax liabilities are therefore measured at the amounts expected to be paid to the relevanttaxation authority.

1.(c) Inventories

Inventories are carried at the lower of cost or net realisable value. Cost is based on the first-in, first out method and includes expenditureincurred in acquiring the inventories and bringing them to the existing condition and location.

1.(d) Property, Plant and Equipment

Property, plant and equipment is initially recorded at the cost of acquisition or fair value less, if applicable, any accumulated depreciationand impairment losses. Plant and equipment that has been contributed at no cost, or for nominal cost, is valued and recognised at the fairvalue of the asset at the date it is acquired. The plant and equipment is reviewed annually by directors to ensure that the carrying amount isnot in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flowsthat will be received from the utilisation of the assets and the subsequent disposal. The expected net cash flows have been discounted totheir present values in estimating recoverable amounts. Freehold land and buildings are measured at their fair value, based on periodic, but at least triennial, valuations by independent externalvaluers, less subsequent depreciation for buildings. Increases in the carrying amount of land and buildings arising on revaluation are credited in equity to a revaluation surplus. Decreasesagainst previous increases of the same asset are charged against fair value reserves in equity. All other decreases are charged to profit orloss. Any accumulated depreciation at the date of revaluation is offset against the gross carrying amount of the asset and the net amount isrestated to the revalued amount of the asset.

1.(e) Intangibles

Goodwill is recognised as the excess of the purchase price for a business acquired over the fair value of the net assets at the date ofacquisition. Goodwill is assessed for impairment annually and is carried at cost less accumulated impairment losses.

The development costs associated with the website have been capitalised and upon completion will be amortised over subsequent years.Subsequent maintenance costs will be expensed in the year they are incurred.




Trade mark costs are to be written off over 10 years.

1.(f) Trade and Other Receivables

Trade receivables and other receivables, including distributions receivable, are recognised at the nominal transaction value without takinginto account the time value of money. If required a provision for doubtful debt has been created.

1.(g) Financial Assets

Investments held are originally recognised at cost, which includes transaction costs. They are subsequently measured at fair value which isequivalent to their market bid price at the end of the reporting period. Movements in fair value are recognised through an equity reserve.

1.(h) Trade and Other Payables

Trade and other payables represent the liabilities for goods and services received by the company that remain unpaid at 30 June 2016. Tradepayables are recognised at their transaction price. They are subject to normal credit terms and do not bear interest.

1.(i) Employee Benefits

Provision is made for the liability for employee entitlements arising from services rendered by employees to 30 June 2016. Employeebenefits have been measured at the amounts expected to be paid when the liability is settled, plus related costs.

1.(j) Provisions

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

1.(k) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held on call with banks, other short-term highly liquid investments with originalmaturities of three months or less, and bank overdrafts.

1.(l) Revenue Recognition

Revenue from the sale of goods is recognised upon the delivery of goods to customers.Revenue from the rendering of services is recognised upon the delivery of the services to customers.Revenue from commissions is recognised upon delivery of services to customers.Revenue from interest is recognised using the effective interest rate method.Revenue from dividends is recognised when the entity has a right to receive the dividend. All revenue is stated net of the amount of goods and services tax (GST).

1.(m) Goods and Services Tax

Transactions are recognised net of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office(ATO).Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, orpayable to, the ATO is included with other receivables or payables in the balance sheet.

1.(n) Leases

Finance leases are leases of fixed assets where substantially all of the risks and benefits incidental to the ownership of the asset aretransferred to the entity, but the legal ownership is not transferred to the entity. Finance leases are capitalised by recording an asset and a corresponding liability at the lower of the amounts equal to the fair value of theleased asset, or the minimum lease payments measured at present value including any residual values. Leased assets are depreciated on a straight-line basis over the shorter of their estimated useful lives or the lease term. Operating lease payments are charged to the income statement on a straight-line basis over the term of the lease.




Lease incentives are deferred and amortised over the period of the lease. Profits and losses on sale and leaseback transactions are recognised in the reporting period in which they occur.

2. Other Income

Expo Income & Expenses 30-Jun-16 30-Jun-15

Plus

Income - Expo Stand Hire 77,027 -

Income - Expo Meals 21,141 -

NIBA Convention 72,360 53,636

Emerging Leaders Income 22,631 22,927

Meal Charges - 22,527

Sale of Stalls - 42,250

NZ Stand Hire 4,770 13,477

Total Plus 197,929 154,817

Less

Expenses - Expo Costs 109,553 8,150

NIBA Convention Expenses 76,045 57,555

Education Programme Expenses 12,142 7,941

Emerging Leaders cost 22,254 1,329

Audio Visual Equip Hire 3,124 9,108

Door Prize 3,182 7,910

Drinks and Food - 16,789

Photographer 4,105 3,383

Speaker Costs 31,894 35,071

Table at Function - 2,373

Venue Hire - 74,372

Young Professionals Breakfast 4,011 2,650

NZ IBANZ Convention Expenses - 12,341

NZ Drinks/ Food (NOC) - 78

NZ Expo Meals Expenses 11,739 3,640

NZ Venue Hire - 1,880

NZ Education Events (NOC) 686 -

NZ Expo Costs (NOC) 3,377 -

Total Less 282,113 244,569

Total (84,184) (89,751)

3. Directors' Remuneration

The Directors of Underwriting Agencies Council during the year were:

Mr Heath Amber

Ms Linda King

Mr Lyndon Turner

Mr Peter Fryer

Mr Peter Marshall




Mr Kurt Nilsen

Mr David Lamb

Ms Emily Walker

The aggregate of income paid or payable, or otherwise made available, in respect of the financial period, to all directors of the company, ordirectly or indirectly, by the company or by any related party

The aggregate of income paid or payable, or otherwise made available, in respect of the financialperiod, to all directors of the company, ordirectly or indirectly, by the company or by any relatedparty.

$0 $0

The number of directors of the company whose total income falls within each successive $10,000band of income (commencing at $0):

$0 - $10,000

No.

8

No.

8

4. KeyManagement Personnel Compensation

The Directors received no income from the company for the year ended 30 June 2016 (2015: $Nil)

5. Financial Instruments

Credit Risk Exposures:

The entity is not under risk from credit exposure.

Interest Risk Exposures:

The entity is not under any risk from interest rate exposure.

Net Fair Financial Value of Financial Assets and Liabilities:

The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and liabilities approximates their carryingvalue.

There are no other monetary financial assets or liabilities.

6. Segment Information

The Underwriting Agencies Council operates predominantly in the financial services industry providing representation to members withinAustralia and New Zealand.

7. Members Guarantee

The entity is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If the entity is wound up, the constitutionstates that each member is required to contribute a maximum of $100 each towards meeting the obligations of the entity. At 30 June 2016the number of members was 127 (2015:116).

R.I. RAE & CO. ABN 51 722 956 450

Suite 11.03, Level 11, 205 Pacific Highway St Leonards NSW 2065 PO Box 338, St Leonards NSW 1590 Phone: 02 9086 9494 Fax: 02 9906 3357 Email: [email protected] Email: [email protected]

Auditors Liability limited by a scheme approved under the Professional Standards Legislation

UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

We have audited the financial statements of Underwriting Agencies Council Limited for the year ended 30 June 2016. As lead engagement partner for the audit engagement, I declare that, to the best of my knowledge and belief, during the year ended 30 June 2016 there have been: i) requirements as set out in the

Corporations Act 2001 in relation to the audit; and

ii) no contraventions of any applicable code of professional conduct in relation to the audit. R.I. Rae & Co. Chartered Accountants Dated this 29th day of September, 2016

R.I. RAE & CO. ABN 51 722 956 450

Suite 11.03, Level 11, 205 Pacific Highway St Leonards NSW 2065 PO Box 338, St Leonards NSW 1590 Phone: 02 9086 9494 Fax: 02 9906 3357 Email: [email protected] Email: [email protected]

Auditors Liability limited by a scheme approved under the Professional Standards Legislation

INDEPENDENT AUDIT REPORT To the members of Underwriting Agencies Council Limited Report on the financial report We have audited the accompanying financial report, being a special purpose financial report, of Underwriting Agencies Council Limited, which comprises the statement of financial position as at 30 June 2016, the statement of profit and loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant

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

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 about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financiassessment 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 copreparation of the financial report that gives a true and fair view, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001 which has been given to the directors of Underwriting Agencies Council Limited would be in the same terms if given

R.I. RAE & CO. ABN 51 722 956 450

2

Audit opinion In our opinion, the financial report of Underwriting Agencies Council Limited is in accordance with the Corporations Act 2001, including: a) 6 and of its

performance for the year ended on that date in accordance with the accounting policies described in Note 1; and

b) complying with Australian Accounting Standards to the extent described in Note 1 and complying

with the Corporations Regulations 2001. Basis of accounting Without modifying our opinion, we draw attention to Note 1 of the financial report which describes the

financial reporting responsibilities under the Corporations Act 2001. As a result, the financial report may not be suitable for another purpose. R.I. Rae & Co. Chartered Accountants Dated this 29th day of September, 2016

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