DIRECTORS REPORT and FINANCIAL STATEMENTS

Transcription

1 AUSTRALIAN ASSOCIATION OF SOCIAL WORKERS LTD ABN DIRECTORS REPORT and FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2012 CONTENTS Directors Report... 2 Directors Declaration Auditor s Independence Declaration Independent Audit Report Statement of Financial Position Statement of Comprehensive Income Statement of Cash Flows Statement of Changes in Equity Notes to and forming part of the Financial Report Page 1

2 Australian Association of Social Workers Ltd - ABN FINANCIAL STATEMENTS WITH REPORTS OF DIRECTORS AND AUDITORS DIRECTORS REPORT Your Directors present this report on the company for the financial year ended 30 June (A) OBJECTIVES AND ACTIVITIES OBJECTIVES OF AASW The short and long term objectives of the Association are to: a. Promote the profession of social work b. Enhance the public and professional recognition and identity of social work c. Establish, monitor and improve practice and ethical standards d. Contribute to the development of social work knowledge and research e. Develop, review and accredit the education standards for social workers f. Advocate for the pursuit of social justice and changes to social structures and policies in order to promote social inclusion and redress social disadvantage g. Promote and facilitate members professional development and life-long learning h. Represent and advocate for the interests of members as a group STRATEGY FOR ACHIEVING OBJECTIVES Our strategy for achieving our short term and long term objectives through to 2015 is described in these 5 goals: Strategic Goal 1 - Growing the Membership of the Association By 2015, we will have achieved a larger membership base with increasing numbers of younger members into the Association. This larger membership base will increase our voice and influence with government and industry. Strategies to achieve Goal A marketing and communication strategy that engages regularly with members and all potential members and informs all stakeholders about the work of the AASW and the benefits of membership, 1.2 Partnership arrangements with other organisations to enhance the range of membership benefits to our members, 1.3 Excellence in customer service to members, who consider that they are receiving value for their membership fees and who act as ambassadors for the AASW, and 1.4 To further develop the Australian College of Social Work to attract more social workers to become members, and have them remain with the Association because of the opportunities for recognition of advanced practice, Page 2

3 Australian Association of Social Workers Ltd - ABN Increased focus on delivering relevant and accessible continuing professional development programs for members including the evaluation of internet based strategies to increase accessibility to programs, particularly for members in rural and remote locations 1.6 Providing opportunities for greater member involvement and engagement, including ways for them to share their expertise, knowledge and also advocating for social justice. Strategic Goal 2 Raising the Profile of the Profession By 2015 we will be well recognised by government, industry and the community as one of the key professions with professional expertise and knowledge in mental health and psycho-social care to vulnerable individuals and groups in our community. Our code of ethics, education and practice standards will be recognised as a mark of the high calibre of professional social work. Our voice on issues that impact upon social work clients and our profession will be strong and will influence government and industry. Strategies to achieve Goal 2: 2.1 Advocating for national registration of the social workers and protection of title of social worker 2.2 A public voice through written submissions, timely media releases and other forms of communication on issues of key importance to the profession, including social policy 2.3 Proactive development of our relationships with industry, government and other stakeholders 2.4 Organisational and professional representation at government and industry forums and steering committees on key issues of social policy and workforce development 2.5 A Reconciliation Action Plan (RAP) which has been adopted by the Board and Reconciliation Australia, and promoted to members 2.6 A professional website that promotes the work of the profession and is an information resource for members, governments, employers and other stakeholders Strategic Goal 3 Building our reputation as the national professional organisation for the human services industry By 2015, our views on the implementation of standards of education and professional practice for the human services will be valued by government and industry. We will be invited to participate as a key stakeholder in government led inquiries, consultations and implementation projects for the human services sector. Our code of ethics, educational and practice standards will set the benchmark for professional standards for the human services sector. Strategies to achieve Goal 3: 3.1 Review of the By Laws of the Australian College of Social Work to enable the development of specialist divisions to further enhance the development of social worker skills and knowledge, 3.2 Review of the Australian Social Work Education and Accreditation Standards (ASWEAS) for undergraduate and post graduate qualifying Social Work degrees to ensure the development of robust standards and competitiveness vis-à-vis other human service bachelor programs, 3.3 Review of current AASW Practice Standards to reflect contemporary Social Work Practice, Page 3

4 Australian Association of Social Workers Ltd - ABN Development of specialist Practice Standards for core curriculum areas of child protection, mental health, cultural diversity and working with ATSI populations and for advanced qualifications. 3.5 Promotion of our Code of Ethics, ASWEAS and Practice Standards as the benchmark for social work and the human services to governments, employers and the community. Strategic Goal 4 - Stabilising and growing our financial base (Sustainability) By 2015, we will have a diversified financial base. We will have a long-term income strategy to increase our financial security and to fulfil our organisational objectives. Major sources of income will include membership fees, government funding, philanthropic donations, continuing professional development programs and a range of AASW revenue generating programs. Strategies to achieve Goal 4: 4.1 The development of branches as business entities, with ability to generate revenue in order to grow the financial base of the Association, 4.2 A focus on accessing external sources of funding for major projects dealing with workforce issues and standards, 4.3 Further development of the Horizon Career Centre as a business entity with enhanced capacity to generate revenue, and 4.4 Non-traditional income sources (NTIS) development including donations, sponsorships, bequests and trust funds. 4.5 The evaluation of an income generating national CPD framework Strategic Goal 5 - Building an infrastructure to succeed in our strategic program of reform and to manage our day-to-day operations By 2015, the way we manage our business will speak of our professionalism. The management of our operations will be efficient and effective with appropriate systems in place. Our infrastructure will be properly resourced for success in achieving our strategic goals. This will impact positively upon our relationships and standing with our key stakeholders, including our members. Strategies to achieve Goal 5: 5.1 A governance structure with clearly understood roles for Board members, Branch Presidents and Management, 5.2 Well developed organisational policies and procedures for all areas of the organisation with regular review to maintain relevance and compliance with legislative requirements, 5.3 A National Document/Information Management System for all areas of the organisation, 5.4 A fully developed ICT infrastructure to support our communication and data management needs, 5.5 Periodic reviews of annual operational plans that implement the strategic priorities of the AASW Board, and 5.6 Staff training and development that is in alignment with the strategic goals of the organisation. Page 4

5 Australian Association of Social Workers Ltd - ABN PRINCIPAL ACTIVITIES DURING THE YEAR The principal activities during the year were conducted by the: Corporate Services group who: reviewed membership fees provided financial and membership services to the organisation and members developed and implemented a new budget and accounts reporting system renegotiated members professional indemnity and public liability insurance policies established and launched the Australian College of Social Work in July 2011 Branches who: actively promoted the Association and its activities to potential new members contributed to national programs in the areas of social policy, education, membership development and practice standards provided CPD workshops, seminars, conferences and other learning activities for members provided support and participation activities for members throughout the Association Membership group who: implemented a new membership renewals program and an innovative growth strategy that saw a 15% increase in membership provided support to membership applications and renewals processes Publications group who: published the international peer-reviewed and ISI rated journal Australian Social Work, which is distributed to members and subscribers published and distributed The National Bulletin as a quarterly magazine to members published and distributed a fortnightly E-Bulletin to all members and subscribers Education and CPD programs : reviewed and accredited education programs at a number of schools of Social Work commenced a review of accreditation standards for schools of Social Work continued the endorsement program for CPD providers conducted CPD audits for a proportion of accredited members developed and implemented a trial mandatory member CPD system Ethics and Practice Standards programs : provided an Ethics Consultation Service for members considered enquiries and complaints in relation to alleged breaches of the Code of Ethics, using the AASW Ethics Complaints Management framework commenced the revision of the Practice Standards for Social Workers. International Qualifications Assessment (IQA) program : reviewed the impact of Government policy changes to Overseas Qualifications Assessment conducted assessments of overseas qualified social workers who intend on working in Australia. Page 5

6 Australian Association of Social Workers Ltd - ABN Communication and Advocacy group who: published position papers on a range of public policy matters made submissions to parliamentary and senate enquiries built stronger partnerships with key allied health and community sector peak bodies. ENTITIES OBJECTIVES ASSISTED The Company s objectives and strategies are incorporated in a strategic plan that includes actions in the form of an operational plan. The above listed activities assisted the Company in achieving its objectives by providing an organisational, knowledge and communications infrastructure that links the everyday activities to the objectives and the needs of the Company s stakeholders and members. PERFORMANCE MEASUREMENT The Company measures its performance through comprehensive monthly reporting to the Board of Directors of financial performance against budget and of progress in the operations as against the operational plan. The Board has also established three subcommittees to monitor and manage certain key activities, being the finance, membership and governance committees. The main Key Performance Indicators (KPI s) are those planned actions in the financial budget and operational plan. The monthly reporting reflects progress in terms of these KPIs. In addition, the CEO and management of the Association each have objectives and performance indicators to meet that support and underpin the strategic goals and objectives of the Association and the Board. (B) DIRECTORS DURING THE YEAR ENDING 30 JUNE 2012 The names of the Directors in office at the date of this report and during the financial year are: Name Responsibilities Date Appointed Date Retired Karen Elizabeth Healy National President 01/11/2011 In office Robert Lawrence Lonne National President 09/03/ /10/2011 Christine Helen Craik National Vice President 01/11/2011 In office Vittorio James Cintio National Vice President 01/10/ /03/2012 Marie-Claire Cheron-Sauer National Vice President 27/09/ /10/2011 Helen May Hopper Company Secretary Director 19/05/ /04/2012 In office 27/04/2012 Alternate Director 07/03/ /04/2012 Colin Gabriel Benjamin Alternate Director 03/06/2012 In office Susan Marie Hunt Alternate Director 23/07/ /04/2012 Joseph Calleja Alternate Director 12/11/ /04/2012 David John Rose Alternate Director 27/10/ /11/2011 Susan Therese King Alternate Director 16/09/ /09/2011 Annette Maria Crowe Alternate Director 22/06/ /07/2011 Cindy Maree Smith Director 01/11/2011 In office Maria Alice Merle Director 01/11/2011 In office Pamela Alexandra Trotman Director 01/11/2011 In office Page 6

7 Australian Association of Social Workers Ltd - ABN Anita Frances Phillips Director 01/11/2011 In office Brenda Elizabeth Clare Director 01/11/2011 In office Glenice Rebecca Garvie Director 27/10/ /04/2012 Sue Margaret Cumming Director 01/10/ /04/2012 Brian Edward Wooller Director 27/09/ /04/2012 Debra Ann Lee Director 01/10/ /01/2012 Jose Luis Abalo Director 13/05/ /10/2011 Suzanne Elena Neshan Director 27/09/ /10/2011 Robyn Ann Mason Director 01/10/ /10/2011 DIRECTORS MEETINGS The number of Directors meetings and number of meetings attended by each of the Directors of the Company during the financial year are: Name Number of Meetings Attended in Year Number of Meetings Eligible to Attend Directors (Board Executive) Dr Bob Lonne (President ) 5 6 Marie-Claire Cheron-Sauer (VP ) 5 6 Karen Elizabeth Healy (P 2011-current) Christine Helen Craik (NVP 2011-current) Vittorio James Cintio (NVP ) Helen May Hopper (A/g NVP 2012) 4 4 Cindy Maree Smith (A/g NVP 2012-current) 2 2 Directors Jose Luis Abalo ( ) 5 6 Suzanne Elena Nesham ( ) 5 6 Robyn Ann Mason ( ) 5 6 Debra Ann Lee ( ) 7 8 Brian Edward Wooller ( ) Sue Margaret Cumming ( ) Glenice Rebecca Garvie ( ) 7 12 Cindy Maree Smith (2011-current) Maria Alice Merle (2011-current) Pamela Alexandra Trotman (2011-current) 5 6 Anita Frances Phillips (2011-current) 6 6 Brenda Elizabeth Clare (2011-current) 6 6 Helen Hopper ( Secretary) Alternate Directors Susan Marie Hunt (Alternate ) 1 1 Susan Therese King (Alternate 2011) 1 1 David John Rose (Alternate 2011) 1 1 Colin Gabriel Benjamin (Alternate 2012) 1 2 Helen Hopper (Alternate ) 1 1 Annette Maria Crowe (Alternate 2011) 0 0 Page 7

8 Australian Association of Social Workers Ltd - ABN Joseph Calleja (Alternate ) 0 0 INFORMATION ON CURRENT DIRECTORS AND COMPANY SECRETARY Karen Healy Christine Craik Cindy Smith Brenda Clare Maria Merle Anita Phillips Pamela Trotman National President (01/11/2011 current) Over 25 years experience as a social worker working in professional or academic posts in four States of Australia and in a variety of fields including child protection, community work and health services. Currently Professor in the School of Social Work and Human Services at the University of Queensland. National Vice-President (01/11/2011 current) Over 20 years experience as a social worker, working in family support, housing, community health and hospitals with a focus on domestic violence, sexual abuse and refugees. Currently working as a practitioner in a major trauma hospital in Victoria and Director of the Bachelor of Social Work and Director of the Bachelor of Social Work/Psychology at RMIT University. National Vice-President and Director (01/11/2011 current) Over 12 years experience as a social worker. Held a range of positions including housing worker, generalist counsellor in community health, team leader for community service organisation in out of home care and program manager of a counselling team. Currently General Manager of the Child, Youth and Family Directorate in community health. Director (17/04/2012 current) Over 40 years experience as a social worker. Is an Honorary Research Fellow at University of Western Australia and has a private consultancy business. Director (01/11/2011 current) Over 12 years experience as a social worker. Worked in many areas of social work such as mental health, family and children services, aged care and domestic violence. Current role is social worker for the Salvation Army Special Search Service. Director (17/04/2012 current) Graduated from the University of Melbourne, enjoyed forty years utilising her social work knowledge and skills, in regional North Queensland and the Hunter, and metropolitan Sydney, Melbourne and Canberra, in Federal, State, Local and non-government agencies. This experience is particularly relevant in her current position as ACT Public Advocate. Director (17/04/2012 current) Pamela now practices privately. In 1983 she introduced nationally the concept of Rural Social Work practice. More recently she has worked with Aboriginal Australians (Stolen Generations), and refugees. Committed to promoting trauma recovery, she has identified the presence of the "Survivor Self" - a powerful inner resource promoting trauma recovery. Page 8

9 Australian Association of Social Workers Ltd - ABN Colin Benjamin Helen Hopper BA (Soc Welfare)(CSU); BSW(CSU); MPA(UC); MAASW Alternate Director (03/06/2012 current); Former Victorian BMC Member Over 40 years experience as a social worker. Awarded OAM in 2012 Australia Day honours lists "for service to the community through roles with social welfare organisations, and to business". Company Secretary and Alternate Director (since 10/09/2007) 37 years working in the social welfare field and for the last 20 years as a social worker. Worked in the areas of disability and aged care and child protection. Worked in rural New South Wales as well as city metropolitan area of Canberra. Currently working for the ACT Government as Team Leader of the School Age North Team in Therapy ACT. INFORMATION ON RETIRING DIRECTORS Bob Lonne National President (09/03/ /10/2011) BSW, PhD, MAASW 30 years experience in social work practice, program, academic and management roles including mental health, youth justice and child protection. Marie-Claire Cheron- Sauer BSW (UNSW), MSoc Pol (Macquarie), MAASW Vittorio Cintio BSocStud (UNSW), MSW (UNSW), MAASW Jose Abalo BA (UNSW), MSW(La Trobe), MAASW Sue Cumming BSW (UQ),MAASW Vice President (01/10/ /10/2011) 25 years experience as a social work practitioner and educator. Currently Manager, Counselling Services, Catholic Care, Sydney. Vice President (01/10/ /03/2012) 31 years experience in social work practice in the fields of mental health, community and family services Clinical Lead, Social Work, Sydney West Area Health Service. Director (01/10/ /10/2011), Chair Membership Committee 20 years social work experience specialising in multicultural and income support policy and practice. Director (01/10/ /04/2012) 35 years as a social worker and is currently Director of Social Work at Princess Alexandra Hospital in Brisbane. Glenice Garvie Aboriginal and Torres Strait Islander Director (27/10/ /04/2012) Susan Hunt BSW(CSU), MAASW Deb Lee BSW (Deakin), MAASW Robyn Mason BA, BSW, PhD, Dip Ed. (Melb.), MAASW Suzanne Nesham BSW, MAASW, Accredited Mental Health Social Worker Alternate Director (01/10/ /04/2012) 10 years experience as a social worker, manager and educator primarily in the mental health field. Currently a sessional staff member at James Cook University and enrolled in a PhD. Director (01/10/ /01/2012) Has 17 years experience in community social work services. Since 2009 has been Deputy CEO with Adelaide Northern Division of General Practice. Director (01/10/ /10/2011) Over 20 years social work experience in aged care, community services, mental health, and sexual assault support services, and currently a practitioner in rural women s health and educator in Social Work at Monash University. Director (01/10/ /10/2011), Chair Finance Committee 28 years experience as a social worker, consultant, manager and educator in social work. Page 9

10 Australian Association of Social Workers Ltd - ABN Brian Wooller BEc., Dip Soc Work(UWA), MAASW Director (01/10/2008 2/04/2012) Extensive experience in social work practice in mental health, child protection, juvenile and adult corrective services, education, and social work agency management. MEMBERS LIABILITY The liability of members is limited where every member undertakes to contribute an amount not exceeding $50 in the event of the Company being wound up while the person is a member, if required for payment of the debts and liabilities; payment of the costs of winding up; and such other amounts as may be required. This amount applies for all classes of membership. The total amount of member s guarantee at 30 June 2012 was $341,050 from 6,821 members (2011:6,518 members). (C) OTHER MATTERS DIRECTORS BENEFITS No Director has received, or become entitled to receive, during or since the financial year, a benefit because of a contract made by the company, controlled entity or related body corporate with a Director, a firm of which a Director is a member or an entity in which a Director has a substantial financial interest other than the benefits as disclosed in Notes 18 and 19 of the Notes to and forming part of the Accounts. INDEMNIFICATION OF AUDITORS AND OFFICERS The company has arranged indemnity insurance for its directors and officers. This coverage is included within the Association s Liability Insurance which also covers all members for Professional Indemnity, with the premium for the whole policy being $102,539 for 12 Months to 30 June 2012 ($97,680 for 12 months to 30 June 2011). No indemnity insurance has been provided for auditors. TRADING RESULTS The loss after taxation for the year ended 30 June 2012 was $267,877 (2011: deficit of $701,067). DIVIDENDS The Company is prohibited from paying dividends by its Constitution. SIGNIFICANT EVENTS AFTER END OF FINANCIAL YEAR No matters of significance have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Company, the results of those operations, or the state of affairs of the company in subsequent financial years. ENVIRONMENTAL MATTERS The Company s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a State or Territory. Page 10

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12 1 st Floor, Constitution Avenue Campbell ACT 2612 PO Box 27, Campbell ACT 2612 T +61 (0) F +61 (0) AUDITOR S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 To the Directors Australian Association of Social Workers Ltd (ABN ) I declare that, to the best of my knowledge and belief, during the year ended 30 June 2012 there has been: (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (ii) no contraventions of any applicable code of professional conduct in relation to the audit. Ian Hollow Director Moore Stephens Canberra Date declaration made: 27 September 2012 Moore Stephens Canberra Audit Pty Ltd Authorised Audit Company No ABN Liability limited by a scheme approved under Professional Standards Legislation. The Canberra Moore Stephens firm is not a partner or agent of any other Moore Stephens firm An independent member of Moore Stephens International Limited members in principal cities throughout the world.

13 1 st Floor, Constitution Avenue Campbell ACT 2612 PO Box 27, Campbell ACT 2612 T +61 (0) F +61 (0) INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF AUTRALIAN ASSOCIATION OF SOCIAL WORKERS LIMITED Report on the Financial Report We have audited the accompanying financial report of the Australian Association of Social Workers Limited (the company), which comprises the statement of financial position as at 30 June 2012, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the period then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors declaration. Directors Responsibility for the Financial Report 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 is free from material misstatement, whether due to fraud or error. Auditor s Responsibility 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 financial report. The procedures selected depend on the auditor s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Australian Association of Social Workers Limited, would be in the same terms if given to the directors as at the time of this auditor s report. Moore Stephens Canberra Audit Pty Ltd Authorised Audit Company No ABN Liability limited by a scheme approved under Professional Standards Legislation. The Canberra Moore Stephens firm is not a partner or agent of any other Moore Stephens firm An independent member of Moore Stephens International Limited members in principal cities throughout the world.

14 Opinion In our opinion the financial report of the Australian Association of Social Workers Limited is in accordance with the Corporations Act 2001, including: i. giving a true and fair view of the company s financial position as at 30 June 2012 and of its performance for the period ended on that date; and ii. complying with Australian Accounting Standards and the Corporations Regulations Ian Hollow Director Moore Stephens Dated at Canberra: 28 September 2012

15 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2012 Note $ $ CURRENT ASSETS Cash and cash equivalents 4 2,177,567 2,224,296 Receivables 6 181,634 48,394 Inventory 6,293 7,754 Other current assets 7 195, ,031 Other financial assets 10 3,000 3,000 TOTAL CURRENT ASSETS 2,564,131 2,428,475 NON CURRENT ASSETS Property, plant and equipment 8 96,780 94,274 Intangibles 9 77,290 77,380 Other non current assets 7 10,450 10,450 Other financial assets , ,924 TOTAL NON CURRENT ASSETS 294, ,028 TOTAL ASSETS 2,858,278 2,715,503 CURRENT LIABILITIES Trade and Other Payables , ,853 Borrowings 12 16,066 21,653 Unearned revenue 13 1,807,635 1,473,046 TOTAL CURRENT LIABILITIES 2,371,599 1,980,552 NON CURRENT LIABILITIES Provisions 14 20,485 18,669 TOTAL NON CURRENT LIABILITIES 20,485 18,669 TOTAL LIABILITIES 2,392,084 1,999,222 NET ASSETS 466, ,282 EQUITY Available for sale revaluation reserve 8,942 4,239 Accumulated funds 457, ,043 TOTAL EQUITY 466, ,282 The accompanying notes form part of these financial statements. Page 15

16 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2012 Note $ $ Revenue & Other Income 2 4,267,843 3,584,730 Employee benefits expense (2,094,026) (1,923,189) Occupancy costs (244,334) (237,550) Other administrative costs (2,098,285) (2,077,243) Depreciation and amortisation 3 (85,990) (47,815) Profit (Loss) before income tax (254,791) (701,067) Income tax expense Profit (loss) for the year (254,791) (701,067) Other comprehensive income: Net (loss)/gain on revaluation of financial assets 4,703 4,239 Net fair value loss on disposal of financial assets reclassified to profit or loss - 343,854 Other comprehensive income for the year 4, ,093 Total comprehensive income for the year (250,088) (352,974) The accompanying notes form part of these financial statements. Page 16

17 STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 30 JUNE 2012 Note $ $ OPERATING ACTIVITIES Receipts from government, members and customers 4,786,488 4,491,804 Interest received 79,362 60,510 Dividends and distributions received 5,510 3,882 Payments to suppliers and employees (4,824,097) (4,231,867) Net cash generated (used) 21 47, ,329 INVESTING ACTIVITIES Payments for acquisition of plant and equipment (48,980) (75,881) Payments for acquisition of marketable securities - (4,239) Payments for intangibles (39,425) (50,316) Proceeds from sale of marketable securities - 781,422 Net cash generated (used) by investing activities (88,405) 650,986 FINANCING ACTIVITIES Payments for reduction of finance lease liability (5,587) (5,862) Net cash generated (used) by financing activities (5,587) (5,862) Net movement in cash and cash equivalents (46,729) 969,453 Cash and cash equivalents at beginning of year 2,224,296 1,254,843 Cash and cash equivalents at end of year 4 2,177,567 2,224,296 The accompanying notes form part of these financial statements. Page 17

18 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2012 Available for Sale Revaluation Reserve Accumulated Funds Total $ $ $ Balance at 1 July 2010 (343,854) 1,413,110 1,069,256 Net deficit for the year - (701,067) (701,067) Other comprehensive income 348, ,093 Balance at 1 July , , ,282 Net deficit for the year - (254,791) (254,791) Other comprehensive income 4,703-4,703 Balance at 30 June , , ,194 The accompanying notes form part of these financial statements. Page 18

19 NOTES TO AND FORMING PART OF THE REPORT FOR THE YEAR ENDED 30 JUNE 2012 The financial report covers the Australian Association of Social Workers Limited ( the Company ) as an individual entity. The Company is a Public Company Limited by Guarantee incorporated in Australian under the Corporations Act Note 1: Statement of significant accounting policies Basis of Preparation This general purpose financial report has been prepared in accordance with Australian Accounting Standards, including Australian Accounting interpretations and the Corporations Act Any new Accounting Standards that have been issued but are not yet effective at balance date have not been applied in the preparation of this financial report. The possible impacts of the initial implementation of these Accounting Standards have not been assessed. The financial report of the company complies with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS). A statement of compliance with International Financial Reporting Standards cannot be made due to the company applying the not-for-profit sector specific requirements contained in the AIFRS. The financial report has been prepared on an accruals basis in Australian dollars and is based on historical costs and does not take into account changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair values of the consideration given in exchange for assets. The following is a summary of the significant accounting policies adopted by the company in the preparation of this financial report. The accounting policies have been consistently applied, unless otherwise stated. 1 (a) Income Tax Current Tax Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the taxable profit or tax loss for the period. It is calculated using tax rates and tax laws that have been enacted or substantively enacted by reporting date. Current tax for current and prior periods is recognised as a liability (or asset) to the extent that it is unpaid (or refundable). Deferred tax is accounted for using the balance sheet liability method. Temporary differences arising are differences between the tax base of an asset or liability and its carrying amount in the statement of financial position. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes. In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised to the extent that it is probable that sufficient taxable amounts will be available against which deductible temporary differences or unused tax losses and tax offsets can be utilised. However, deferred tax assets and liabilities are not recognised if the temporary differences giving rise to them arise from the initial recognition of assets and liabilities (other than as a result of a business combination) which affects neither taxable income nor accounting profit. Furthermore, a deferred tax liability is not recognised in relation to taxable temporary differences arising from the initial recognition of goodwill. Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries, branches and associates and interests in joint ventures except where the company is able to control the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with these investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset and liability giving rise to them are realised or settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by reporting date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets are offset when they relate to incomes taxes levied by the same taxation authority and the company intends to settle it current tax assets and liabilities on a net basis. Page 19

20 NOTES TO AND FORMING PART OF THE REPORT FOR THE YEAR ENDED 30 JUNE 2012 Current and deferred tax for the period Current and deferred tax is recognised as an expense or income in the profit or loss, except when it relates to items credited or debited directly to equity, in which case the deferred tax is also recognised in other comprehensive, or where it arises from the initial accounting for a business combination, in which case it is taken into account in the determination of goodwill or excess. Non-member income of the company is only assessable for tax, as member income is excluded under the principle of mutuality. 1 (b) Cash and Cash Equivalents Cash and cash equivalents include cash on hand and deposits held at call with banks or financial institutions. 1 (c) Cash Flows For the purposes of the statement of cash flows, cash includes cash on hand, cash at bank and term deposits maturing within one year. 1 (d) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment losses. Property, plant and equipment are measured on the cost basis. The carrying amount of property, plant and equipment is reviewed annually by management to ensure it is not in excess of the remaining service potential of these assets. All assets are depreciated on a straight line basis over the useful lives of the assets to the company commencing from the time the asset is held ready for use. All classes of property, plant and equipment are depreciated using the straight line method. The depreciation rates used for each class of depreciable assets are: Class of fixed assets Depreciation rates Office equipment and fittings % Motor Vehicle 12.5% Leasehold improvements are amortised at the lesser of their economic life and lease end date. The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. 1 (e) Intangibles Intangible Assets are comprised of the membership and event management system and the Windows 7 operating systems platform. The membership and event management system and the Windows 7 operating systems platform is recognised and capitalised when: (a) it is probable that the expected future economic benefits that are attributable to the system will flow to the AASW; and (b) the cost of the software can be measured reliably. The membership and event management system and the Windows 7 operating systems platform have a finite useful life. It is amortised on a straight-line basis over its useful life, over a period not exceeding 3 years. Intangible Assets are measured at cost. 1 (f) Inventories Inventories are measured at the lower of cost and net realisable value. 1 (g) Employee benefits Provision is made for the company s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits expected to be settled within one year, together with benefits arising from wages and salaries and annual leave which will be settled after one year, have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Long service leave 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. Page 20

21 NOTES TO AND FORMING PART OF THE REPORT FOR THE YEAR ENDED 30 JUNE 2012 Contributions are made by the company to employees superannuation funds and are charged as expenses when incurred. 1 (h) Leases Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the year in which they are incurred. Finance leases are capitalised by recognising an asset and a liability at the lower amount equal to the fair value of the lease property or present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period. 1 (i) Comparative figures Where necessary, comparative figures have been adjusted to conform to changes in presentation in this financial report. 1 (j) Revenue Recognition Membership fees Revenue from membership fees is recognised progressively over the period to which the membership relates. Membership fees are levied on a financial year basis. The portion of membership fees received that relates to the following financial year is brought to account at balance date as membership fees received in advance (unearned revenue liability). Conference income and expenditure Conference activities are recognised as income and expenditure when the event is held. Any income received and expenditure incurred prior to the holding of the event are brought to account as conference income in advance (unearned revenue liability) and conference prepayments (other current assets) respectively. Other income All other sources of income are brought to account as income when the related goods or services have been provided and the income earned. Interest is recognised as income as it is earned. Royalties, dividends and trust distributions are recognised as income when received. All revenue is stated net of the amount of goods and services tax (GST) 1 (k) Goods and Services Tax All revenue and expenses are stated net of the amount of goods and services tax, except where in the amount of goods and services tax incurred is not recoverable from the Australian Taxation Office. In these circumstances the goods and services tax is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables in the balance sheet are shown inclusive of goods and services tax. 1 (l) Impairment At each reporting date, the Company reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the asset's carrying value. As a not-for-profit entity, value in use for the company, according to Accounting Standard AASB 136 Impairment of Assets, is depreciated replacement cost. Any excess of the asset's carrying value over its recoverable amount is expensed to the income statement. 1 (m) Critical accounting estimates and judgements The Company evaluates estimates and judgements incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Company. Page 21

22 NOTES TO AND FORMING PART OF THE REPORT FOR THE YEAR ENDED 30 JUNE 2012 Key estimates Impairment The Company assesses impairment at each reporting date by evaluating conditions specific to the Company that may lead to impairment of assets. Should an impairment indicator exist, the determination of the recoverable amount of the asset may require incorporation of a number of key estimates. No impairment indicators were present at 30 June 2012 with the exception of the following: An allowance for impairment of $1,115 for trade debtors that are past due and considered doubtful have been recognised as disclosed in Note 6. 1 (n) Financial Instruments Initial Recognition Financial instruments are initially measured at fair value on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below. 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 stated at amortised cost using the effective interest rate method. Held-to-maturity investments These investments have fixed maturities, and it is the company s intention to hold these investments to maturity. Any held-to-maturity investments held by the Company are stated at amortised cost using the effective interest rate method. Available-for-sale financial assets Available-for-sale financial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value are taken directly to equity (available-for-sale revaluation reserve) until the investment is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in the available-forsale revaluation reserve is included in profit or loss for the period. Financial liabilities The Company does not hold any financial liabilities at fair value through profit or loss. Other financial liabilities are recognised at amortised cost using the effective interest rate method, comprising original debt less principal payments and amortisation. 1 (o) Principles of Aggregation The financial report comprises aggregated information from each of the branches of the company, being national office, New South Wales, Victoria, South Australia, Queensland, Western Australia, ACT, Hunter, Tasmania, Northern Queensland and Northern Territory. All material inter-branch transactions and balances have been eliminated. Page 22

23 NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2012 Note 2: Revenue and Other Income $ $ Revenue Revenue from government grants - government and government entity grants 62, ,105 Other Revenue Interest 76,698 64,410 Dividends and distributions 5,510 3,882 82,208 68,292 Total Revenue 144, ,397 Other Income Sale of goods: - Advertising revenue 37,194 25,030 - Publication and merchandise revenue 7,517 5,841 Services rendered: - Membership fees 3,202,724 2,626,084 - Conference income 51,757 1,064 - Education 135, ,470 - Royalty income 113, ,617 - Horizon Career Centre 97,762 77,688 - Grant Management Fee Accreditation & Assessment fees 346, ,325 - Other 130, ,214 Total Other Income 4,123,165 3,361,333 Total Revenue and Other Income 4,267,843 3,584,730 Page 23

24 NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2012 Note 3: Profit for the year Net Profit (loss) has been determined after: $ $ (a) Expenses Depreciation and amortisation of non-current assets: - furniture and equipment, leasehold improvements 46,475 20,283 - intangibles 39,516 27,532 Total depreciation and amortisation 85,990 47,815 Assets written off - 22,825 Superannuation - defined contribution plans 286, ,847 Doubtful Debts Expense (38,626) 3,801 Auditor Remuneration - audit services 26,763 31,000.. Legal fees paid by AASW Summary of legal fees are detailed below Please note: The Legal fees incurred by the AASW board, the conduct committee and the immediate past president in relation to the Code Of Conduct complaint are included below AASW did not contribute to the legal costs of the respondents to the code of conduct allegations. Misc legal fees $ 4,750 Legal fees for Ethics $ 3,726 Legal fees for Practice Standards $ 648 Legal fees for Mental Health $ 1,272 Legal fees for the Complainant $ 16,362 Legal fees for Mediation $ 32,000 Legal fees for Code of Conduct Complaint $ 153,756 TOTAL LEGAL FEES $ 212,514 (b) Net Gains (Losses) Net gain (loss) on sale of shares - (285,175) Note 4: Cash and cash equivalents Cash on hand 2,542 2,542 Cash at bank 207, ,881 Cash at call - Lyra Taylor fund 71,946 69,407 Cash on Deposit 1,895,107 1,876,466 2,177,567 2,224,296 Page 24

25 NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE Note 5: Income tax expense $ $ (a) Income tax expense Prima facie tax payable on operating result before income tax at 30% (2010: 30%) (76,437) (210,320) Add/(Subtract) tax effect of: - Member and other non-deductible expenses 1,063,696 1,033,935 - Member income not assessable and other deductible expenses (1,107,623) (887,919) - Current year tax profit (loss) not recognised 120,364 64,304 Income tax expense attributable to operating result - - (b) Deferred Tax Assets Deferred tax assets totalling $360,050 (2011: $221,910) at year end have not been brought to account in respect of tax losses as it is not reasonably probable that they will be realised in the future. Note 6: Trade and Other Receivables CURRENT Trade receivables 182,749 88,135 Less Allowance for impairment (1,115) (39,741) 181,634 48,394 Movement in Allowance for Impairment Opening Balance 39,741 39,535 Provision for receivables impairment - 3,801 Amounts recovered during the year (38,626) (3,595) 1,115 39,741 AASW does not have any material credit risk exposure to any single receivable or group of receivables. The following table details the Company's trade and other receivables exposed to credit risk with ageing analysis and impairment provided thereon. Amounts are considered as "past due" when the debt has not been settled within the terms and conditions agreed between the company and the debtor. Receivables that are past due are assessed for impairment by ascertaining solvency of the debtors and are provided for where there are specific circumstances indicating that the debt may not be fully recoverable Gross Past due and Past due but not impaired (days overdue) Within initial trade amount impaired < >90 terms $ $ $ $ $ $ $ Trade receivables 88,135 39,741 2,800 1,370 10,626 3,974 29,624 Total 88,135 39,741 2,800 1,370 10,626 3,974 29,624 2,012 Trade receivables 182,749 1,115-1,070 1, ,904 Total 182,749 1,115-1,070-1, ,904 Page 25