Master Builders Association of the ACT Financial Statements 2010-2011

Master Builders Association of the ACT and Controlled Entity Financial StatementsFOR THE YEAR ENDED 30 JUNE 2011

2011

Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 20112

Contents ............................................................................................................................................Page

Treasurer’s Report.......................................................................................................................................................3

2010 - 2011 Financial Report ................................................................................................................5

Operating Report .........................................................................................................................................5

Statement by Members of the Council of Management ...............................................................9

Independent Audit Report to the Members .............................................................................10-11

Statement of Comprehensive Income ............................................................................................... 12

Statement of Financial Position ........................................................................................................... 13

Statement of Changes to Equity .......................................................................................................... 14

Statement of Cash Flows ........................................................................................................................ 15

Notes to the Financial Statements ................................................................................................16-35

Contents

Master Builders Association of the ACT & Controlled Entity Annual Report - Year Ending June 30 2011 3

Treasurer’s Report

It is pleasing that this being my third report as Treasurer I am able to once again to reflect on a sound financial performance for Master Builders Association of the ACT and our related entity, MBA Group Training.

Last year I was able to provide some comforting commentary on the response by the Australian economy against a background of uncertainty delivered a year earlier in the form of the Global Financial Crisis. The positive aspect of Australia’s economic performance against other developed economies during that previous year was in many ways staggeringly above average. This was reflected further in the ACT’s performance against other Australian jurisdictions. We have continued to defy expectations until now but indicators are that greater diligence will be needed to steer our way through the coming year or so. Tight financial management and constant scrutiny of our operations, both principles essential in good times and bad, will take on greater prominence with further uncertain times ahead.

Despite all of the challenges, the volatility in world markets, and changes to the way we conduct our business, history does tell us that this is not the first time the industry has had to ride out a storm. The industry is resilient and there is much data to support the reality that there will be work ahead. Canberra Construction Snapshot and Australian Construction Industry Forecast data provides some room for optimism. The annual under build on residential dwellings in Australia alone says there is much work ahead.

In providing the consolidated financial report to reflect the relationship between the Master Builders Association of the ACT and MBA Group Training, I present the following overview of the activities and performance of each entity during the 2010-11 financial year.

Master Builders Association of the ACT:

A surplus of $250,145 has been recorded for MBA-ACT as the parent entity for the financial year ending 30 June 2011. This result exceeded the original budget forecast surplus notwithstanding some higher expenses associated with employment of a new technical services manager to provide assistance in building quality and planning issues. In ongoing uncertain economic times currently being experienced, the executive committee maintains a position where borrowings by the Association are kept at a minimum. We still retain the 400m² of space on the upper level of our building that

has income potential. There have been some discussions with potential users.All revenues and expenditures are closely monitored to ensure that delivery of member services are not put at risk and every opportunity is provided to enhance those services. Membership has remained steady during the financial year. Our major showpiece event, the Master Builders and Boral Excellence in Building Awards continues to achieve its objective to showcase the Association and work of members. We look to it as well as other events to provide excellent member networking opportunities. Communication with the membership is vital and a lot of work has taken place this year to further improve our website and other communication mediums to help members in their businesses.

A budget surplus has been set and confirmed for the 2011-12 financial year. I remain confident that given the processes we have in place to monitor and adjust our activities I will be able to report on a sound result for MBA-ACT this time next year.

Master Builders Group Training:

The result of MBA Group Training in the past year is a reflection of not only continued Government support for training activities but the diligence and hard work of the staff. It is a well known fact that our training operation has had to deal with difficult trading periods in the past and has required financial support by MBA-ACT. Pleasingly, we have achieved a surplus of $760,538 for the year ending 30 June 2011. We know with the continued uncertainty surrounding the financial markets and the impacts on activity in building and construction, our results can be varied and often quite quickly. This is why it is important for us to remain vigilant in this part of our operation.

We slightly increased our apprentice numbers during the last year and pleasingly in the face of the predicted uncertainty placement with industry continued to be strong. As reported in the previous financial year, Construction Industry Induction Card (White Card) training kept the skills centre quite busy in the first half of the financial year with a steady stream of courses maintained into the new year. Builder’s licensing training continues to be in strong demand and we have introduced other new courses for work health and safety, energy rating and green building. Funding by the Commonwealth to recognize skills of existing workers has also ensured a busy training operation.


Treasurer’s Report (continued)

During the year we have been looking at the options around future expansion of our training activities and continue to discuss measures to facilitate that growth. This has included investigations of nearby land. We are currently preparing to provide additional covered space and storage area to cater for our outdoor training which is constantly in use. This will ensure more year round opportunities for training and better protection for those in training.

Again, this has been a pleasing year for MBA Group Training and we look forward to the challenges ahead.

Conclusion:

I conclude this report by thanking my executive committee colleagues for their diligence and support in helping us all keep our eye on the financial ball. The accounts team capably lead by Senior Management Accountant, Louise McCallum continues to produce timely and detailed information. It is with this information at hand that we can closely monitor the financial performance of the entities. I look forward to being in a position to report just as positively next year.

Simon Butt Treasurer


Your Members of the Council of Management present this report on Master Builders Association of the ACT and its controlled entity for the financial year ended 30 June2011.

Members of the Council of Management

The names of the Members of the Council of Management at any time during, or since the end of, the year are: Mr Ross Barrett (President)Mr Simon Butt (Treasurer)Mr Sam Delorenzo resigned 8 October 2010Mr Michael De Simone resigned 8 October 2010Mr Peter Fairburn resigned 8 October 2010Mr Hans SommerMr Peter Middleton (Alternate)Mr Andrew Kerec resigned 8 October 2010Mr Stephen Wise (Alternate) resigned 1 November 2010Mr Rob Purdon (Alternate)Ms Gracie FerreiraMr David Jones appointed 8 October 2010Mr Frank Porreca (Alternate) appointed 8 October 2010Mr Valdis Luks appointed 8 October 2010Mr David Howarth appointed 8 October 2010Mr David Morgan (Alternate) appointed 8 October 2010Mr Alan Seymour (Alternate) appointed 6 December 2010

Members of the Council of Management have been in Council since the start of the financial year to the date of this report unless otherwise stated.

Right of Members to Resign

As required to be disclosed by section 174 of the RAO Schedule (of the Workplace Relations Act 1996), in accordance with Rule 8 of the Association’s rules a member may resign from the Association by written notice addressed and delivered to a person designated for the purpose in the rules of the Association.

OPERATING REPORTfor the year ended 30 June 2011


Orlando Sajler Poise Pty Ltd

Terry Davis Davis S & J M

Stewart Fawcett Adept Building Pty Ltd

Jorge Moreno Herron Cleaning Services Pty Ltd

Gabriel Gaha Gaha Group Pty Ltd

Trevor Duncan Duncan Homes Pty Ltd

Steven Elliott Ellcon

Robert Rosin Rosin Building Pty Ltd

Ross Barrett Woden Contractors Pty Ltd

Ken Hopkins Hopkins, Ken

Jason Duncan Duncans Plumbing Services Pty Ltd

Tony Milne Saltbush Roofing Pty Ltd

Harry Haralambous HDL Projects Pty Ltd

Bob Rutherford Rutherford R.D

Craig Williams Swic Pacific

Stefan Stefanac Patrician Homes Pty Ltd

Tony Trobe TT Architecture (ACT) Pty Ltd

Mark O’Shea Kenro Services

Patrick Kirkland Get Real Painting & Maintenance

David Cooper Cooper D & L

Wayne Richards Erincole Building Services Pty Ltd

Wayne Gregory Canberra Sand & Gravel Pty Ltd

Anthony Ikic Aztec Homes

Ian Carroll Carroll Constructions (ACT) Pty Ltd

Ken Horsham Community Housing Canberra Ltd

Ivan Domazet Doma Constructions Pty Ltd

Graham Woods Plan-It Build

Alan Joyce Workrite Commercial Interiors

John Hailey Hailey, John

Alastair MacCallum AMC Projects Pty Ltd

Superannuation Trustees

Darren Orchard G & H Aluminium Fabricators

Mark Sutton SMI Fitout Pty Ltd

Peter Wright Construction Control Holdings Pty Ltd

Ross Burke Modern Plaster Pty Ltd

Phil Robinson Robinson Building Group

Stephen Seckar Jewel Enterprises Pty Ltd

Sam Delorenzo Delorco Pty Ltd

Mladen Rogic Modern Creative Designs Pty Ltd

Bernado Da Silva B & M Scaffolding Pty Ltd

John MacGilvray J J Joinery

Peter Sarris NDH Constructions Pty Ltd

David Howarth Blackett Homes (AUST) Pty Ltd

Simon Butt Manteena Pty Ltd

Simon Butt Strine Construction Pty Ltd

Boris Stojanoski Bost Pty Ltd

Chris Hudina CDH Developments Pty Ltd

Michael Medic Adria Constructions Pty Ltd

Bruce Harman H & H Subcontractors

Robert Fraser QBG Constructions

Robert Purdon Purdon Associates Pty Ltd

Craig Elvin Elvin Group Pty Ltd

Andrew Haydon Haydon & Company Pty Ltd

Cathy Aloe FGC Developments

Anthony Lucas Caliber Kitchens

Anthony Ikic Aztec Homes

Tony Lawless A & J Bathrooms Pty Ltd

John Fielding Bellavarde Constructions Pty Ltd

Peter Morrison Able Landscaping Pty Ltd

John Ainsworth ABA Construction Managers Pty Ltd

David Charman Charman Earthmoving & Heavy Haulage Pty Ltd

Name Company Name Company

Superannuation Trustees

As required to be disclosed by the RAO Schedule (of the Workplace Relations Act 1996), no officer of the Association holds any position in relation to acting as a trustee of a superannuation entity or exempt public sector superannuation scheme, where a criterion for the officer holding such a position is that the officer is an officer of a registered organisation. The following is a listing of members who are trustees of superannuation funds:



Peter Jacob Deemro Pty Ltd

Josip & Angelo Turcin Solitaire Homes

Bruce Douglas Douglas Joinery Pty Ltd

Col Alexander Canberra Investment Corpora-tion

Bob Beaver Beasec Enterprises Pty Ltd

Mimmi Freebody MMM Bathrooms

Mike Raffety Raffety, Mike

Mark De Jager W T Partnership

Andrew Foster Drewaire Constructions Pty Ltd

David Sutton Sutton D

Stephen Wise Defire (ACT) Pty Ltd

John Dennehy Snowmax Pty Ltd

David Sevi Whiteholme (Canberra) Pty Ltd

Bernie Wilson Truss Me

John Harris O’Connor J S Harris & Co

Rade Draskovic Viewmax Pty Ltd

George Haridemos New Age Living

Jason Korda Contemporary Kitchens

Peter Middleton Woden Contractors Pty Ltd

Joe Pratezina Monarch Building Solutions Pty Ltd

Andrew Kerec Renaissance Homes

Steven Beljanski Clarke & Di Pauli Pty Ltd

Dennis Milin Milin Bros Pty Ltd

Joe Tokich Helkeast Pty Ltd

John Queneau Q Projects Pty Ltd

Rick Meneghel Artistic Concrete Pty Ltd

Antoni Paragalli Paraco Projects

Michael O’Brian Ram Constructions

Steve Barnsley Mail Mcdonald Barnsley Pty Ltd

Michael Cooper Baxter Engineering (ACT) Pty Ltd

Paul Thoms The Playground People

Peter Glen Glen Peter Constructions Pty Ltd

Ken Horsham Community Housing Canberra Ltd

Tony Marburg Marburg Management Pty Ltd

Ian Carter PBS Building (ACT) Pty Ltd

Don Rowling A C & R Commercial Kitchens Pty Ltd

Paul Powderly Colliers International (ACT) Pty Ltd

Werner Kley W.J & L.S Constructions Pty Ltd

George Tanchevski Classic Constructions

Braden Roy Shield Professional Tiling Services

Patrick Seears Seears Workwear

John Collet Cercol Construction Services Pty Ltd

Robert Vidovic M & R Investments Pty Ltd

Ric Butt Strine Construction Pty Ltd

Graham Reilly Huon Management Services Pty Ltd

Terry Fox Foxy’s Landscaping Australia Pty Ltd

Rohan Arnold Mass Australia Pty Ltd

Paul Bombardier DSB Landscape Architects

Andrew Cappuccio Cappuccio A

Tim Swain BDA Architects Pty Ltd

Barry Morris Amalgamated Property Group Pty Ltd

Paul Hinds Hinds Constructions

Michael De Simone Canberra Contractors Pty Ltd

Nick Rowe NJR Building & Construction Pty Ltd

Peter Vincent P & K Joinery Pty Ltd

Peter Leary Reliance Building Services (AUST) Pty Ltd

Jim Taylor Taylor Jim Plumbing

Superannuation Trustees (continued)

Name Company Name Company



Review of Operations

The consolidated profit of the consolidated group amounted to $1,010,683 (2010: $739,785). The profit of the parent entity amounted to $250,145 (2010: $198,698).

A review of operations of the association and its subsidiary during the financial year and the results of those operations found that preparing the Journal in-house assisted in achieving an increase of revenue of 6% which resulted in an increase of profit of 36%.

Significant Changes in the State of Affairs

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

Principal Activities

The principal activities of the association during the financial year were to represent all sectors of the local housing and construction industry.

Events Subsequent to the End of Reporting Period

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

Likely Developments and Expect Results of Operations

The association expects to maintain the present status and level of operations. Likely developments in the operations of the association and the expected results of thoseoperations in future financial years have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the association.

Environmental Regulation

The association’s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a state or territory.

Number of Members

The number of persons who, at the end of the financial year, were recorded on the Register of Members was 1,119 (2010: 1,095).

Number of Employees

The number of persons who were, at the end of the financial year, employees of the Association was 15, measured on a full time equivalent basis.

Signed in accordance with a resolution of the Members of the Council of Management.

President

Treasurer

Dated this 6th day of September 2011



We R Barrett and S Butt, being two members of the Council of Management of the Master Builders Association of the ACT, do state on behalf of the Council that in the opinion of the Council:

1. The financial statements and notes comply with the Australian Accounting Standards, mandatory professional reporting requirements and other authoritative pronouncements of the Australian Accounting Standards Board;

2. The financial statements and notes comply with the reporting guidelines of the Industrial Registrar for purposes of section 270 of the RAO Schedule;

3. The financial statements and notes give a true and fair view of the financial performance, financial position and cash flows of the reporting unit for the financial year to which they relate;

4. At the date of this report there are reasonable grounds to believe that the Master Builders Association of the ACT will be able to pay its debts as and when they fall due; and

5. During the financial year to which the financial report relates and since the end of that year:

(i) Meetings of the Council were held in accordance with the rules of the organisation including the rules of the branch concerned;

(ii) The financial affairs of the Master Builders Association of the ACT have been managed in accordance with the rules of the organisation including the rules of the branch concerned;

(iii) The financial records of the Master Builders Association of the ACT have been kept and maintained in accordance with the RAO Schedule and the RAO Regulations;

(iv) The information sought in any request of a member

of the Master Builders Association of the ACT or a Registrar duly made under section 272 of the RAO Schedule has been furnished to the member or Registrar; and

(v) There has been compliance with any order for inspection of financial records made by the Commission under section 273 of the RAO Schedule.

Signed in accordance with a resolution of the Members of the Council of Management passed on the 6th September 2011.

President

Treasurer


STATEMENT BY MEMBERS OF THE Council of Management


INDEPENDENT AUDIT REPORT To the Members

Report on the Financial Report

We have audited the accompanying financial report ofof the ACT and controlled entity (the association) which comprises the statement of financial position as at 30 June 2011, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the statement by members of the Council of Management (the council).

Council’s Responsibility for the Financial Report

The council of the association is responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards(including the Australian Accounting Interpretations) and the Associations Incorporation Act 1991 (ACT) and for such internal control as the council determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion. 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 judgment, 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 preperationof the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the council, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we haveprovide a basis for our audit opinion.


Auditor’s Opinion

In our opinion, the financial report of the Master Builders’ Association of the ACT and controlled entity (the association) is in accordance with the Associations Incorporations Act 1991 (ACT) and the Workplace Relations Act 1996, including:

(i) giving a true and fair view of the association’s financial position as at 30 June 2011 and of its performance for the year ended on that date; and

(ii) complying with Australian Standards.

A.B Papps,PricewatehouseCoopers,44 Sydney Ave,Forrest ACT 2603


INDEPENDENT AUDIT REPORT To the Members


STATEMENT OF COMPREHENSIVE INCOME for the Year Ended 30 June 2011

Note 2011$

2010$

2011$

2010$

Revenue 2 9,632,382 9,060,654 3,354,772 3,142,052

Employee benefits expense (5,901,605) (5,701,568) (1,472,663) (1,359,314)

Depreciation and amortisation expense 3 (363,248) (352,732) (311,687) (293,931)

Rent expense (34,417) (30,226) (34,417) (30,226)

Meetings and seminars (15,965) (13,467) (15,905) (13,062)

Printing, postage and stationery expense (192,826) (204,239) (135,263) (117,552)

Subscriptions (147,657) (137,880) (139,392) (130,912)

Consultant expense (499,374) (576,929) (97,364) (243,796)

Motor vehicle expense (64,874) (80,462) (48,913) (62,000)

Donations and sponsorship (36,478) (11,700) (10,932) (8,000)

Building awards expense (421,744) (283,031) (421,744) (283,031)

Worker’s compensation expense (238,005) (217,765) (9,491) (10,873)

Insurance expense (63,314) (62,637) (37,041) (34,634)

Skills Centre expenses (13,493) (14,802) (13,493) (14,802)

Bad debts income/(expense) 20,938 (9,473) 3,176 (3,176)

Other expenses (649,637) (623,958) (359,498) (338,045)

Profit for the year 1,010,683 739,785 250,145 198,698

Other comprehensive income - - - -

Total comprehensive income for the year 1,010,683 739,785 250,145 198,698

Total comprehensive income attributed to members of the entity

1,010,683 739,785 250,145 198,698

Consolidated Group Parent Entity


STATEMENT OF FINANCIAL POSITIONas at 30 June 2011

Note 2011$

2010$

2011$

2010$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 6 4,496,214 2,758,376 1,953,561 1,270,124

Trade and other receivables 7 887,206 1,260,842 315,139 393,571

Inventories 8 2,243 2,052 2,243 2,052

Other financial assets 9 620,000 620,000

Other current assets 10 30,576 116,202 23,829 35,676

TOTAL CURRENT ASSETS 5,416,239 4,757,472 2,294,772 2,321,423

NON-CURRENT ASSETS

Trade and other receivables 7 8,958 8,958

Property, plant and equipment 11 8,419,676 8,540,289 8,230,618 8,376,128

Intangible Assets 12 59,451 50,459 59,451 50,459

Other non-current assets 10 4,545 4,545 4,545 4,545

TOTAL NON-CURRENT ASSETS 8,483,672 8,604,251 8,294,614 8,440,090

TOTAL ASSETS 13,899,911 13,361,723 10,589,386 10,761,513

CURRENT LIABILITIES

Trade and other payables 13 869,099 1,409,187 319,265 805,731

Short-term provisions 14 112,413 66,230 96,846 52,218

Other current liabilities 15 108,576 110,229 108,575 105,229

TOTAL CURRENT LIABILITIES 1,090,088 1,585,646 524,686 963,178

NON-CURRENT LIABILITIES

Long-term provisions 14 48,555 25,492 41,712 25,492

Other non-current liabilities 15 500,000 500,000 500,000 500,000

TOTAL NON-CURRENT LIABILITIES 548,555 525,492 541,712 525,492

TOTAL LIABILITIES 1,638,643 2,111,138 1,066,398 1,488,670

NET ASSETS 12,261,268 11,250,585 9,522,988 9,272,843

EQUITY

Retained earnings 23 11,739,660 10,728,977 9,001,280 8,751,235

Reserves 521,608 521,608 521,608 521,608

TOTAL EQUITY 12,261,268 11,250,585 9,522,988 9,272,843



STATEMENT OF CHANGES IN EQUITYFor the Year Ended 30 June 2011

CONSOLIDATED GROUP Retained Earnings

$

Asset Revaluation Reserve

$

Total$

Balance at 1 July 2009 9,989,192 521,608 10,510,800

COMPREHENSIVE INCOME

Profit for the year 739,785 - 739,785

Other comprehensive income forthe year

- - -

TOTAL COMPREHENSIVE INCOME 739,785 739,785

Balance at 30 June 2010 10,728,977 521,608 11,250,585


Profit for the year 1,010,683 1,010,683


- - -

TOTAL COMPREHENSIVE INCOME 1,010,683 1,010,683

Balance at 30 June 2011 11,739,660 521,608 12,261,268

PARENT ENTITY Retained Earnings

$

Asset Revaluation Reserve

$

Total$

Balance at 1 July 2009 8,552,537 521,608 9,074,145


Profit for the year 198,698 - 198,698


- - -


Balance at 30 June 2010 8,751,235 521,608 9,272,843


Profit for the year 250,145 250,145


- - -


Balance at 30 June 2011 9,001,380 521,608 9,522,988


2011 2010 2011 2010

Note $ $ $ $

CASH FLOWS FROMOPERATING ACTIVITIES

Receipts from ordinaryactivities

11,586,480 9,662,303 4,405,544 3,434,770

Interest received 152,119 55,143 57,005 33,029

Payments to employees andsuppliers

(9,711,611) (8,868,754) (3,564,793) (3,356,846)

Net cash provided byoperating activities

16 2,026,988 848,692 897,756 110,953

CASH FLOWS FROMINVESTING ACTIVITIES

Proceeds from sale ofproperty, plant andequipment

62,500 50,454 36,364 33,635

Purchase of property, plantand equipment

(351,650) (203,057) (250,683) (165,743)

Net cash (used in) investingactivities

(289,150) (152,603) (214,319) (132,108)

Net increase/ (decrease) incash held

1,737,838 696,089 683,437 (21,155)

Cash and cash equivalents atbeginning of financial year

2,758,376 2,062,287 1,270,124 1,291,279

Cash and cash equivalents atend of financial year

6 4,496,214 2,758,376 1,953,561 1,270,124

STATEMENT OF CASH FLOWSFor the Year Ended 30 June 2011



NOTES TO THE FINANCIAL STATEMENTSFor the Year Ended 30 June 2011

The consolidated financial statements cover the Master Builders Association of the ACT and its controlled entity (MBA Group Training Limited), and the separate financial statements cover the Master Builders Association of the ACT as an individual parent entity. The Master Builders Association of the ACT is an association incorporated in the ACT under the Associations Incorporation Act 1991.

Note 1: Summary of Significant Accounting Policies

Basis of Preparation

The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) and the Associations Incorporation Act 1991 (ACT).

Australian Accounting Standards set out accounting policies that the AASB has concluded wouldresult in financial statements containing relevant and reliable information about transactions,events and conditions to which they apply. Material accounting policies adopted in the preparationof these financial statements are presented below and have been consistently applied unlessotherwise stated. The financial statements have been prepared on an accruals basis and are based on historicalcosts, modified, where applicable, by the measurement at fair value of selected non-currentassets, financial assets and financial liabilities.

The financial statements were authorised for issue on 6th September 2011 by the members of theassociation.

Accounting Policies

a) Income Tax No provision for income tax is necessary as the association is exempt under Section 50-15 of the Income Tax Assessment Act 1997.

b) Inventories Inventories are measured at the lower of cost and net realisable value. Inventories acquired at no cost, or for nominal consideration are valued at the current replacement cost

as at the date of acquisition.

c) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and 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 losses. 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 (refer to Note 1(e) for details of impairment). Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the association and the cost of the item can be measured reliably. All other repairs and maintenance are recognised in profit or loss during the financial period in which they are incurred. Depreciation The depreciable amount of all fixed assets, including buildings and capitalised lease assets, is depreciated on a straight-line basis over the asset’s useful life 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

Land and Building 2.5%

Plant and Equipment 6.7 – 50%

Motor Vehicle 22.50% The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of comprehensive income. When revalued assets are sold, amounts included in the revaluation relating to that asset are transferred to retained earnings.



d) Financial Instruments

Initial recognition and measurement Financial assets and financial liabilities are recognised

when the association becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the

date that the association commits itself to either purchase or sell the asset (ie trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transaction costs except where the instrument is classified “at fair value through profit or loss”, in which case transaction

costs are expensed to profit or loss immediately. Classification and subsequent measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest rate method, or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. Amortised cost is the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest rate method. The association does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the requirements of Accounting Standards specifically applicable to financial instruments. (i) Financial assets at fair value through profit or loss Financial assets are classified at “fair value through profit or loss” when they are held for trading for the purpose of short-term profit taking, 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.

(ii) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. (iii) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the association’s intention to hold these investments to maturity. They are subsequently measured at amortised cost using the effective interest rate method. (iv) Available-for-sale financial assets Available-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. (v) Financial liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Impairment At the end of each reporting period, the association 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 impairment has arisen. Impairment losses are immediately 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.

Note 1: Summary of Significant Accounting Policies (continued)



Derecognition Financial assets are derecognised where the contractual right to receipt of cash flows expires or the asset is transferred to another party, whereby the assocaition no longer hasany 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 expire. The difference between the carrying value of the financial liability 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.

e) Impairment of Assets At the end of each reporting period, the association assesses whether there is any indication that an asset may be impaired. The assessment will consider both external and internal sources of information. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of that asset, being the higher of the asset’s fair value less costs to sell and its value-in-use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is immediately recognised in profit or loss. Where it is not possible to estimate the recoverable amount of an individual asset, the association estimates the recoverable amount of the cash generating unit to which the asset belongs.

f) Intangible Assets Computer Software Websites and Databases are recognised at cost. Websites and Databases have a finite life and are carried at cost less any accumulated amortisation and impairment losses. It has an estimated useful life of 3 years. It is assessed annually for impairment.

g) Employee Benefits Provision is made for the association’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.

h) Cash and Cash Equivalents

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

i) Revenue and Other Income

Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed. Any consideration deferred is treated as the provision of finance and is discounted at a rate of interest that is generally accepted in the market for similar arrangements. The difference between the amount initially recognised and the amount ultimately received is interest revenue.

Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods and the cessation of all involvement in those goods.

Revenue from the rendering of a service is recognised upon the delivery of the service to the customer.

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

Revenue from the provision of membership subscriptions is recognised on a straight-line basis over the financial year.

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

j) Borrowing Costs Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.




k) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers.

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

m) Comparative Figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

Where the association has retrospectively applied an accounting policy, made a retrospective restatement or reclassified items in its financial statements, an additional statement of financial position as at the beginning of the earliest comparative period will be disclosed.

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

o) Key Estimates

(i) Impairment The association assesses impairment at the end of each reporting period by evaluation of conditions and events specific to the association that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions.

p) New Accounting Standards for Application in Future Periods No accounting standard has been adopted earlier than the application date as stated in the standard. Other new standards, revised standards, interpretations and amending standards that were issued prior to the signing of the statement by the Members of the Council of Management and are applicable to the future reporting period are not expected to have a material impact on the association.




Note 2: Revenue and Other Income

2011

$

2010

$

2011

$

2010

$

RevenueRevenue from employer reimbursements, sales, subscriptions, sponsorship, government grants and other grants

Employer reimbursements 4,284,021 4,397,725 - -

Government grants 421,750 283,900 - -

GTTP funding - 8,400 - -

Industry training fund 216,975 207,700 - -

Project income 43,313 20,682 - -

Publication sales 40,513 38,440 40,513 38,440

Skills centre funding - 90,000 - 90,000

SNAPS - 1,650 - -

Sponsorship 286,064 282,000 286,064 282,000

Subscriptions 734,438 619,320 734,438 619,320

TAE funding 147,250 134,150 - -

Training and Rebates 875,290 940,066 - -

User choice 887,052 592,948 - -

7,936,666 7,616,981 1,061,015 1,029,760

Other Revenue

Annual dinner and social events 357,337 344,964 357,337 344,964

Building centre rent 106,396 136,360 106,396 136,360

Rent - - 415,000 375,000

Interest 152,119 55,143 57,005 33,029

Journal advertising 149,241 34,267 149,241 34,267

Service fee - - 400,896 376,613

765,093 570,734 1,485,875 1,300,233

Total Revenue 8,701,759 8,187,715 2,546,890 2,329,993

Other Income

Commissions and fees 772,814 784,025 772,814 784,025

Profit on sale of fixed assets 18,841 8,392 17,213 3,935

Sundry income 88,060 63,377 17,855 24,099

Worker’s compensation reimbursement 50,908 17,145 - -

Total Other Income 930,623 872,939 807,882 812,059

Total Revenue and Other Income 9,632,382 9,060,654 3,354,772 3,142,052




Note 3: Profit for the Year

Note 2011

$

2010

$

2011

$

2010

$

a) ExpensesDepreciation and amortisation

Motor vehicle 100,479 104,188 61,733 60,518

Plant and equipment 73,918 64,328 61,103 49,197

Intangibles 13,361 8,902 13,361 8,902

Land and Building 175,490 175,314 175,490 175,314

Total depreciation and amortisation 363,248 352,732 311,687 293,931

b. Significant Revenue and Expenses:

Employer reimbursements 4,284,021 4,397,725 - -

Employee benefits expense (5,901,605) (5,701,568) (1,472,663) (1,359,314)

Note 4: Key Management PersonnelAny person(s) having authority and responsibility for planning, directing and controlling the activities of the association, directly or indirectly, including its Council members, is considered key management personnel.

Key management Personnelcompensation

Short-term employee benefits 781,177 902,170 655,961 683,316

Post-employment benefits 80,453 101,474 65,344 83,000

861,630 1,003,644 721,305 766,316

Note 5: Auditors’ Remuneration

Auditing or reviewing the financial report 25,000 21,300 14,000 11,900

Note 6: Cash and Cash Equivalents

Cash on hand 850 800 450 400

Cash at bank 2,600,309 2,586,250 1,293,851 1,269,724

ITF 235,795 171,326 - -

Short-term bank deposits 1,659,260 - - 659,260 -

21 4,496,214 2,758,376 1,953,561 1,270,124

Reconciliation of cash

Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the statement of financial position as follows:

Cash and cash equivalents 4,496,214 2,758,376 1,953,561 1,270,124




Note 7: Trade and Other Receivables

Note 2011

$

2010

$

2011

$

2010

$

Current

Accounts receivable 872,893 1,001,737 315,139 241,427

Provision for impairment (19,133) (40,070) - (3,176)

Sundry debtors 26,406 299,175 - 155,320

Interest receivable 7,040 - - -

Total current trade and other receivables 887,206 1,260,842 315,139 393,571

Non-current

Sundry debtors - 8,958 - 8,958

Total trade and other receviables 887,206 1,269,800 315,139 402,529


Current trade receivables are non-interest bearing loans and accounts receivable and generally are receivable within 30 days. A provision for impairment is recognised against accounts receivable where there is objective evidence that an individual trade receivable is impaired.

Credit risk

The association has no significant concentration of credit risk with respect to any single counterparty or group of counterparties. The main source of credit risk to the association is considered to relate to the class of assets described as accounts receivable.

The following table details the association’s trade and other receivables exposed to credit risk with ageing analysis and impairment provided for thereon. Amounts are considered as ‘past due’ when the debt has not been settled within the terms and conditions agreed between the association and the counterparty to the transaction. Receivables that are past due are assessed for impairment by ascertaining their willingness to pay and are provided for where there are specific circumstances indicating that the debt may not be fully repaid to the association.

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

Gross Amount Past Due and Impaired

Past due but not impaired (days overdue) Within initial trade terms

2011 <30 31-60 61-90 >90

Trade receivables 872,893 (19,133) 307,908 23,140 38,775 - 503,070

Other receivables 33,446 - 4,125 330 110 - 28,881

Total 906,339 (19,133) 312,033 23,470 38,885 - 531,951

2010

Trade receivables 1,001,737 (40,070) 221,804 59,772 62,093 - 658,068

Other receivables 308,133 - 7,085 12,052 229,923 8,958 50,115

Total 1,309,870 (40,070) 228,889 71,824 292,016 8,958 708,183

Consolidated Group


Gross Amount Past Due and Impaired

Past due but not impaired (days overdue) Within initial trade terms

2011 <30 31-60 61-90 >90

Trade receivables 315,139 - 164,818 7,682 13,534 - 129,105

Other receivables - - - - - - -

Total 315,139 - 164,818 7,682 13,534 - 129,105

2010

Trade receivables 241,427 (3,176) 21,666 31,089 17,123 - 171,549

Other receivables 164,278 - - - 155,320 8,958 -

Total 405,705 (3,176) 21,666 31,089 172,443 8,958 708,183

Parent Entity


The association does not hold any financial assets whose terms have been renegotiated, but which would otherwise be past due or impaired. Collateral Held as Security No collateral is held as security for any of the trade and other receivable balances.

Financial assets classified as loans and receivables

Note 2011 $

2010 $

2011 $

2010 $

Trade and other receivables:

Total current

Total non - current 887,206 1,260,842 315,139 393,571

Sundry debtors 8,958 8,958

Total trade and other receivables 21 887,206 1,269,800 315,139 402,529


Note 8: Inventories Note 2011 $

2010 $

2011 $

2010 $

Current

At cost

- contracts 1,852 1,426 1,852 1,426

- books 391 626 391 626

2,243 2,052 2,243 2,052

Note 9: Other Financial Assets

Held-to-maturity financial assets 9a - 620,000 - 620,000

a. held-to-maturity financial assets comprise:

Term deposit - 620,000 - 620,000

Total held-to-maturity financial assets 21 - 620,000 - 620,000




Note 10: Other Assets

Note 2011 $

2010 $

2011 $

2010 $

Current

Prepayments 30,576 116,202 23,829 35,676

Non-current

Other investments 4,545 4,545 4,545 4,545

Note 11: Property, Plant and Equipment

Land and building – At cost 8,259,769 8,268,942 8,259,769 8,268,942

Accumulated depreciation (350,804) (175,314) (350,804) (175,314)

7,098,965 8,093,628 7,908,965 8,093,628

Plant and equipment - at fair value 366,811 315,339 258,460 232,025


202,172 224,617 132,526 167,194

Motor vehicles - at cost 447,230 449,794 271,468 251,643


308,539 222,044 189,127 115,306

Total property, plant and equipment 8,419,676 8,540,289 8,230,618 8,376,128




Movements in carrying amounts

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

Consolidated Group Land & Building Plant & Equipment Motor Vehicles Total

$ $ $ $

Balance at 1 July 2009 8,255,143 185,052 282,931 8,723,126

Additions 13,799 103,893 85,366 203,058

Disposals - - (136,987) (136,987)

Depreciation expense (175,314) (64,328) (104,188) (343,830)

Depreciation write back - - 94,922 94,922

Balance at 30 June 2010 8,093,628 224,617 222,044 8,540,289

Adjustment to remove GST (56,364) - - (56,364)

Additions 47,191 51,473 230,634 329,298

Disposals - - (233,196) (233,196)



Carrying amount at 30 June 2011 7,908,965 202,172 308,539 8,419,676

Parent Entity

Balance at 1 July 2009 8,255,143 112,499 157,474 8,525,116

Additions 13,799 103,892 48,052 165,743

Disposals - - (82,289) (82,289)



Balance at 30 June 2010 8,093,628 167,194 115,306 8,376,128

Adjustment to remove GST (56,364) - - (56,364)

Additions 47,191 26,434 154,705 228,330

Disposals - - (134,879) (134,879)



Carrying amount at 30 June 2011 7,098,965 132,525 189,128 8,230,618



Note 12: Intangible Assets 2011$

2010$

2011$

2010$

Capitalised website development costs 28,940 6,003 28,940 6,003

Accumulated amortisation (13,383) (2,997) (13,383) (2,997)

Net carrying value 15,557 3,006 15,557 3,006

Capitalised database development costs 61,459 53,358 61,459 53,358

Accumulated amortisation (17,565) (5,905) (17,565) (5,905)

Net carrying value 43,894 47,453 43,894 47,453

Total intangible assets 59,451 50,459 59,451 50,459


Movements in carrying amounts Movements in the carrying amounts for intangibles between the beginning and the end of the current financial year:

Consolidated GroupWebsite

DevelopmentCosts

$

DatabaseDevelopment

Costs$

Total

$

Balance at 1 July 2009 6,003 53,358 59,361

Additions - - -

Amortisation expense (2,997) (5,905) (8,902)

Balance at 30 June 2010 3,006 47,453 50,459

Additions 19,940 2,413 22,353


Carrying amount at 30 June 2011 15,557 43,894 59,451

Parent Entity

Balance at 1 July 2009 6,003 53,358 59,361

Additions - - -


Balance at 30 June 2010 3,006 47,453 50,459

Additions 19,940 2,413 22,353


Carrying amount at 30 June 2011 15,557 43,894 59,451



Note 13: Trade and Other Payables

Note 2011 $

2010 $

2011 $

2010 $

Current

Trade creditors and accruals 582,273 1,095,494 233,860 723,763

Short-term employee benefits 286,826 313,693 85,405 81,968

13a 869,099 1,409,187 319,265 805,731

a. Financial liabilities at amortised cost classified as trade and other payables

Trade and other payables:

- total current 869,099 1,409,187 319,265 805,731

- total non-current - - - -

869,099 1,409,187 319,265 805,731

Less annual leave entitlements (286,826) (313,693) (85,405) (81,968)

Less GST payable (222,452) (275,346) (82,882) (55,888)

Less wage accrual (78,050) - (11,048) -

Less PAYG payable (70,757) (98,658) (25,472) (35,214)

Financial liabilities as trade and other payables 21 211,014 721,490 114,458 632,661


Note 14: Provisions

Note

Opening balance at 1 July 2010 91,722 77,710

Additional provisions raised during year 69,246 60,848

Balance at 30 June 2011 160,968 138,558

Analysis of Total Provisions

Current 112,413 66,230 96,846 52,218

Non-Current 48,555 25,492 41,712 25,492

160,968 91,722 138,558 77,710

Provision for Long-term Employee Benefits

A provision has been recognised for employee entitlements relating to long service leave. In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based on historical data. The measurement and recognition criteria relating to employee benefits has been included in Note 1 to this report.



Note 15: Other Liabilities 2011$

2010$

2011$

2010$

Current

Unearned income 14,050 31,965 14,050 26,965

Work in progress 93,910 68,678 93,910 68,678

Funds held for third parties 616 9,586 615 9,586

Total current other liabilities 108,576 110,229 108,575 105,229

Non-current

Dunlop house loan 40,000 40,000 40,000 40,000

Unearned income 100,000 100,000 100,000 100,000

Total non-current other liabilities 500,000 500,000 500,000 500,000


Note 16: Cash Flow Information 2011$

2010$

2011$

2010$

Reconciliation of cash flow from operations with profit

Profit 1,010,683 739,785 250,145 198,698

Cash flows excluded from profit attributable to operating activities

Non-cash flows in profit:

Depreciation and amortisation 363,248 352,734 311,687 293,933

Net gain on disposal of fixed assets (18,841) (8,392) (17,213) (3,935)

Impairment expense - 40,070 - 3,176

Adjustment to fixed assets 56,363 - 56,363 -

Changes in assets and liabilities:

Decrease in trade and other receivables 382,594 422,600 87,390 654,650

Decrease/(increase) in financial assets 620,000 (620,000) 620,000 (620,000)

(Increase)/decrease in inventories (191) 181 (191) 181

Decrease in other assets 85,626 377,313 11,847 399,356

(Decrease) in trade and other payables (540,088) (392,340) (486,466) (749,625)

(Decrease)/increase in other liabilities (1,652) 8,792 3,346 8,793

Increase/(decrease) in employee provisions 69,246 (72,051) 60,848 (74,274)

2,026,988 848,692 897,756 110,953




Note 17: Capital and Leasing Commitments 2011$

2010$

2011$

2010$

(a) Operating Lease CommitmentsNon-cancellable operating leases contracted for but not recognised in the financial statements

Payable – minimum lease payments

- not later than 12 months 6,112 6,112 6,112 6,112

- between 12 months and 5 years 6,111 12,223 6,111 12,223

- greater than 5 years - - - -

12,223 18,335 12,223 18,335


The telephone system lease, which commenced in September 2008, is a 60 month lease, with rent payable monthly in advance.

Note 18 : Related Party Transactions

Transactions with related parties

The following Members of the Council and their related companies have had financial transactions with the association during the financial year. All monies received from the Members of the Council or their related companies relate to subscriptions or normal trading operations of the association.

Executive Member Related Company Total value of Transactions

Mr Ross Barrett/ Mr Peter Middleton Woden Contractors Pty Ltd $207,384

Mr Simon Butt/ Mr Rod Mitton Manteena $206,921

Mr Sam Delorenzo Delorco $31,082

Mr Andrew Kerec Renaissance Homes $2,975

Mr Hans Sommer Village Building Company $44,520

Mr Peter Fairburn CE Industries $820

Mr Damian Dawes Smart Housing $56,189

Mr Ian Carter/Mr Warren Ahrens PBS Building $16,927

Mr Mark Crawford/ Mr Micheal de Simon Canberra Commercial Contractors $105,261

Mr Alan Seymour/ Mr Stephen Wise St Hilliers Contracting $19,426

Mr David Morgan A Murray -

Mr Frank Porreca Benchmark -

Mr Rob Purdon Purdon & Associates $1,080

Mr Valdis Luks G E Shaw $12,539

Mr David Jones Guideline Pty Ltd $9,138

Mr David Howarth Blackett Homes $6,970

Mr Gracie Ferreira Pacific Formwork $1,415

Mr Tony Toscan Toscan Glass -

Consolidated Group


Executive Member Related Company Total value of Transactions

Mr Ross Barrett/ Mr Peter Middleton Woden Contractors Pty Ltd $15,172

Mr Simon Butt/ Mr Rod Mitton Manteena $25,967

Mr Sam Delorenzo Delorco $950

Mr Andrew Kerec Renaissance Homes $2,975

Mr Hans Sommer Village Building Company $44,520

Mr Peter Fairburn CE Industries $820

Mr Alan Seymour/ Mr Stephen Wise St Hilliers Contracting $19,426

Mr David Morgan A Murray -

Mr Frank Porreca Benchmark -

Mr Warren Ahrens PBS Building $9,219

Mr Micheal de Simon Canberra Commercial Contractors $3,550

Mr Rob Purdon Purdon & Associates $1,080

Mr Valdis Luks G E Shaw $12,539

Mr David Jones Guideline Pty Ltd $9,138

Mr David Howarth Blackett Homes $6,970

Mr Gracie Ferreira Pacific Formwork $1,415


Parent Entity

Note 19 : Events after the Reporting Period

There have been no events subsequent to reporting date which require disclosure in the financial statements.

Note 20 : Contingent Liabilities and Assets

There are no contingent liabilities or assets as at 30 June 2011 which require disclosure in thefinancial statements (2010: nil).



Note 21 : Financial Risk Management

The association’s financial instruments consist mainly of deposits with banks and accounts receivable and payable. The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows:

Note 2011 $

2010 $

2011 $

2010 $

Financial assets

Cash and cash equivalents 6 4,496,214 2,758,376 1,953,561 1,270,124

Loans and receivables 7 887,206 1,269,800 315,139 402,529

Held-to-maturity financial assets

- Term deposits 9 - 620,000 - 620,000

Total financial assets 5,383,420 4,648,176 2,268,700 2,292,653

Financial liabilities

Financial liabilities at amortised cost

- Trade and other payables 13a 211,014 721,490 114,458 632,661

Total financial liabilities 211,014 721,490 114,458 632,661


Financial Risk Management Policies

The Council of Management’s overall risk management strategy seeks to ensure that theassociation meets its financial targets, whilst minimising potential adverse effects on cash flow short falls.

Specific Financial Risk Exposures and Management The main risks the association is exposed to through its financial instruments are credit risk, liquidity risk and market risk relating to interest rate risk and equity price risk. a) Credit risk

Exposure to credit risk relating to financial assets arises from the potential nonperformance by counterparties of contract obligations that could lead to a financial loss to the association. Credit risk is managed through maintaining procedures (such as regular monitoring of exposure and monitoring of the financial stability of significant customers and counterparties) ensuring, to the extent possible, that members and counterparties to transactions are of sound credit worthiness.

Risk is also minimised through investing surplus funds in financial institutions that maintain a high credit rating that the board of director’s has otherwise cleared as being financially sound. Credit risk exposures

The maximum exposure to credit risk by class of recognised financial assets at the end of the reporting period is equivalent to the carrying value and classification of those financial assets (net of any provisions) as presented in the statement of financial position. There is no collateral held by the association securing trade and other receivables. Trade and other receivables that are neither past due or impaired are considered to be of high credit quality. Aggregates of such amounts are detailed in Note 6.The association has no significant concentration of credit risk exposure with any single counterparty or group of counterparties. Details with respect to credit risk of trade and other receivables are provided in 6.



Note 21 : Financial Risk Management (continued)

b) Liquidity risk

Liquidity risk arises from the possibility that the association might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. The association manages this risk through the following mechanisms:

• Preparing budgets;• Maintaining a reputable credit profile;• Managing credit risk related to financial assets; and• Only investing surplus cash with major financial

institutions.

The next tables reflect an undiscounted contractual maturity analysis for financial liabilities. Cash flows realised from financial assets reflect management’s expectation as to the timing of realisation. Actual timing may therefore differ from that disclosed. The timing of cash flows presented in the table to settle financial liabilities reflects the earliest contractual settlement dates.

Consolidated Group

2011 2010 2011 2010 2011 2010

$ $ $ $ $ $

Financial liabilities due for payment

Trade and other payables 211,014 726,490 - - 211,014 726,490

Total expected outflows 211,014 726,490 - - 211,014 726,490

Financial assets – cash flows realisable

Cash and cash equivalents 4,496,214 2,758,376 - - 4,496,214 2,758,376

Trade and other receivables 887,206 1,260,842 - 8,958 887,206 1,269,800

Held-to-maturity financial assets - 620,000 - - - 620,000

Total anticipated inflows 5,383,420 4,639,218 - 8,958 5,383,420 4,648,176

Net inflow on financial instruments 5,172,406 3,912,728 - 8,958 5,172,406 3,921,686

Within 1 Year 1 to 5 Years Total contractual cash flow

Parent Entity

2011 2010 2011 2010 2011 2010

$ $ $ $ $ $

Financial liabilities due for payment

Trade and other payables 114,458 632,661 - - 114,458 632,661

Total expected outflows 114,458 632,661 - - 114,458 632,661

Financial assets – cash flows realisable

Cash and cash equivalents 1,953,561 1,270,124 - - 1,953,561 1,270,124

Trade and other receivables 315,139 393,571 - 8,958 315,139 402,529

Held-to-maturity financial assets - 620,000 - - - 620,000

Total anticipated inflows 2,268,700 2,283,695 - 8,958 2,268,700 2,292,653

Net inflow on financial instruments 2,154,242 1,651,034 - 8,958 2,154,242 1,659,992



Financial assets pledged as collateral

No financial assets have been pledged as security for any financial liability. c) Market risk

i. Interest rate risk

Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting period whereby a future change in interest rates will affect future cash flows.

ii. Price risk

The association is not exposed to price risk. Sensitivity analysis

The following table illustrates sensitivities to the association’s exposures to changes in interestrates. The table indicates the impact on how profit and equity values reported at the end of thereporting period would have been affected by changes in the relevant risk variable thatmanagement considers to be reasonably possible. These sensitivities assume that themovement in a particular variable is independent of other variables.

Consolidated Group

Profit$

Equity$

Year Ended 30 June 2011 +/- 1% in interest rates

+/- 44,954

+/- 44,954


+/- 33,776

+/- 33,776

Parent Group


+/- 19,531

+/- 19,531


+/- 18,897

+/- 18,897

No sensitivity analysis has been performed on foreign exchange risk, as the association is not exposed to foreign currency fluctuations. Net Fair Values

Fair value estimation

The fair values of financial assets and financial liabilities are presented in the following table and can be compared to their carrying values as presented in the statement of financial position. Fair values are those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

Fair values derived may be based on information that is estimated or subject to judgement, where changes in assumptions may have a material impact on the amounts estimated. Areas of judgement and the assumptions have been detailed below. Where possible, valuation information used to calculate fair value is extracted from the market, with more reliable information available from markets that are actively traded. In this regard, fair values listed for listed securities are obtained from quoted market bid prices.



Consolidated Group 2011 2010

Footnote Net Carrying Value

Net Fair Value Net Carrying Value

Net Fair Value

Financial assets

Cash and cash equivalents (i) 4,496,214 4,496,214 2,758,376 2,758,376

Trade and other receivables (i) 887,206 887,206 1,269,800 1,269,800

Held-to-maturity financial assets (ii) - - 620,000 620,000



Trade and other payables (i) 211,014 211,014 726,490 726,490


Parent Group

Financial assets

Cash and cash equivalents (i) 1,953,561 1,953,561 1,270,124 1,270,124

Trade and other receivables (i) 315,139 315,139 402,259 402,259

Held-to-maturity financial assets (ii) - - 620,000 620,000



Trade and other payables (i) 114,458 114,458 632,661 632,661


The fair values disclosed in the above tables have been determined based on the following methodologies:

(i) Cash and cash equivalents, trade and other receivables and trade and other payables are shortterm instruments in nature whose carrying value is equivalent to fair value. Trade and other payables exclude amounts provided for relating to annual leave, GST and wages accrual, which is outside the scope of AASB 139.

(ii) For held-to-maturity assets the value of the term deposit on inception is used.

Note 22: Capital Management

Management control the capital of the association to ensure that adequate cash flows are generated to fund its operations and that returns from investments are maximised.

Management ensures that the overall risk management strategy is in line with this objective.Management operates under policies approved by the Council of Management. There have been no changes to the strategy adopted by management to control the capital of the association since previous year. Note 23: Reserves Asset Revaluation Reserve

The asset revaluation reserve records the revaluation of non-current assets.



Note 24: Association Details

The principal place of business of the association is:

Master Builders’Association of the ACT 1 Iron Knob Street FYSHWICK ACT 2609

Note 25: Prescribed Disclosure Under s272 (5) of theRAO Schedule

As per s272(5) of the RAO Schedule (to the Workplace Relations Act 1996) the Association gives the following notice to its members:

1) A member of the Association, or a Registrar, may apply to the Association for specified prescribed information in relation to the Association under s272(1).

2) The Association shall, on application made under subsection 272(1) by a member of the Association or a Registrar, make specified information available to the member or Registrar in such manner, and within such time, as is prescribed under s272(2).

3) A Registrar may only make an application under subsection 272(1) at the request of a member of the Association, and the Registrar shall provide to a member information received because of an application made at the request of the member under s272(3).


2011

FINANCIALSTATEMENTS

Master Builders Association of the ACT Financial Statements 2010-2011

Documents

Transcript of Master Builders Association of the ACT Financial Statements 2010-2011