geelong chamber of commerce annual report 2013

geelongchamberofcommercethe voice of business

geelongchamberofcommercethe voice of business

We are unashamedly

‘pro business’: the interests of our members is what

drives us

GEELONG CHAMBER OF COMMERCEANNUAL REPORT 2013 3|

4 GEELONG CHAMBER OF COMMERCEANNUAL REPORT 2013|

FAST FACTS


Geelong Retail Network


“It’s time for our state and federal governments to take action and get behind this key regional and state asset. Avalon deserves more certainty.”

“We will survive

this, there’s no doubt about that. And because we have been

looking ahead, looking to the future we have actually

pre-empted this and we’ve started to make

inroads into new areas.”


“Considerable work has been done to transition the city for a ‘future without traditional manufacturing.”


partners and recognised as the leading organisation representing and supporting business and industry.

StrategiesTo achieve its stated objectives, the organisation has adopted strategic themes summarised in the following key words: Connections, Information, Advocacy and Education which are embedded in the company’s three advocacy pillars: Driving Business Growth, Reducing Business Barriers and Advancing Geelong’s Future.

Key Performance MeasuresThe company measures its own performance through the use of both quantitative and qualitative benchmarks. The benchmarks are used by the Directors to assess the financial sustainability of the company and whether the company’s short-term and long-term objectives are being achieved.

2013 2012Number of members 740 628Revenue $1,097,281 $751,948Profit $153,173 $181,935Cash on hand 31st December

$397,589 $341,070

Directors’ Qualifications & ExperienceJacqueline Frances Armitage Director (resigned 30/6/2013)QualificationsAIDC, Management Diploma Mt Eliza School of ManagementExperience GM - GMHBA Health Insurance, GM Off-shore Operations - Sitel Australia, COO- Minerva Telelink, Call Centre Consulting- Optus Professional Services, Contact Centre Manager - AMP Direct Banking, National Customer Service Manager - TNT Express Worldwide.Special Responsibilities Chair, Membership and Marketing Committee.


Immediate Past President (until April 2013).

Kylie Jane Warne DirectorQualificationsMaster of Business (Marketing), BA (Social Science/Political Science)Experience 13 years working within Multinationals, 2 years local Government, 6 years small business owner/operatorSpecial Responsibilities Vice President (until April 2013) President (from April 2013) Executive Committee.

Director’s MeetingsDuring the financial year, 11 meetings of Directors were held. Attendances by each Director were as follows:

No. eligible to attend

No. attended

Jacqueline Armitage 5 3Roxanne Bennett 8 7Ed Coppe 3Joanne D’Andrea 11 9Mark Edmonds 8 7John Fitzgerald 11 7Julie Hope 11 9Peter Landers 11 10Norm Lyons 11 9David Mackay 11 11Geoff Neilson 8 8David Peart 11 8Mark Sanders 11 9John Sisley 3Paul Smart 7 4Jim Walsh 3Kylie Warne 11 11

The entity is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If the entity is wound up, the constitution states that each member is required to contribute a maximum of $10 each towards meeting any outstanding obligations of the entity.

Auditor’s Independence DeclarationThe lead auditor’s independence declaration for the year ended 31st December 2013 has been received and can be found on page 1 of the financial report.

This directors’ report is signed in accordance with a resolution of the Board of Directors.

Director: Kylie Warne PresidentDated this 3rd day of March 2014


Note 2013 2012

$ $

REVENUE FROM ORDINARY ACTIVITIES

Revenue from Ordinary Activities 2 1,097,281 751,948

EXPENSES FROM ORDINARY ACTIVITIES

Depreciation 6,717 5,227

Employee Benefits Expense 394,867 241,325

Consulting fees 40,119 12,321

Promotions 28,174 1,931

Rent 12,440 13,645

Sponsorship 106,254 62,825

Event organisation 190,001 161,021

Advertising 5,967 2,653

Office Expenses 55,624 37,629

Other 3 103,953 31,436

TOTAL EXPENSES FROM ORDINARY ACTIVITIES 944,116 570,013

PROFIT/(LOSS) FOR THE YEAR 153,165 181,935

Other comprehensive income

Items that will not be reclassified to profit or loss - -

Items that will be reclassified subsequently to profit or loss when specific conditions are met

- -

TOTAL COMPREHENSIVE INCOME FOR THE YEAR 153,165 181,935

Note 2013 2012

$ $

ASSETS

Current Assets

Cash and Cash Equivalents 4 397,589 341,070

Receivables 5 117,055 100,540

Prepayment 3,917 -

Total Current Assets 518,561 441,610

Non-Current Assets

Plant & Equipment 6 63,970 27,672

Intangible Asset 7 85,000 45,000

Total Non-Current Assets 148,970 72,672

TOTAL ASSETS 667,531 514,282

LIABILITIES

Current Liabilities

Income in Advance 8 158,851 161,113

Payables 9 69,447 84,985

Short-term provisions 10 20,055 5,595

Total Current Liabilities 248,353 251,693

Non-Current Liabilities

Long-term provisions 10 9,192 5,768

Total Non-Current Liabilities 9,192 5,768

TOTAL LIABILITIES 257,545 257,461

NET ASSETS 409,986 256,821

EQUITY

Retained Earnings 409,986 256,821

TOTAL EQUITY 409,986 256,821


Retained Earnings

Total

$ $

Balance at 31.12.11 74,886 74,886

Comprehensive income

Profit for the year 181,935 181,935

Other comprehensive income for the year - -

Total comprehensive income for the year 181,935 181,935

Balance at 31.12.12 256,821 256,821

Comprehensive income

Profit for the year 153,165 153,165

Other comprehensive income for the year - -

Total comprehensive income for the year 153,165 153,165

Balance at 31.12.13 409,986 409,986

Note 2013 2012

$ $

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts

Receipts from Customers 979,846 761,994

Interest 8,658 5,692

Payments

Payments to suppliers and employees (848,970) (523,010)

NET CASH FLOWS FROM OPERATING ACTIVITIES 11 139,534 244,676

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Plant & Equipment and Intangible Asset (83,015) (62,902)

NET CASH FLOWS FROM INVESTING ACTIVITIES (83,015) (62,902)

NET INCREASE/DECREASE IN CASH HELD 56,519 181,774

CASH AT 1 JANUARY 341,070 159,296

CASH AT 31 DECEMBER 4 397,589 341,070


NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation

The Geelong Chamber of Commerce Limited has elected to early adopt the Australian Accounting Standards – Reduced Disclosure Requirements as set out in AASB 1053: Application of Tiers of Australian Accounting Standards and AASB 2010–2: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements. Accordingly, the entity has also early adopted AASB 2011–2: Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project – Reduced Disclosure Requirements and AASB 2012–7: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements in respect of AASB 2010–6: Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial Assets and AASB 2011–9: Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income.

The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements of the Australian Accounting Standards Board and the Corporations Act 2001.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise.

The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar.

Accounting Policies

(a) Revenue recognition

Membership is recognised on a basis that reflects the timing, nature and value of the benefits provided in accordance with AASB 118. Donations and Corporate sponsorships are recognised as revenue when received in accordance with AASB 1004.

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

(b) Cash and Cash Equivalents

For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(c) Receivables

Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of recognition. Collectability of debts is reviewed on an ongoing basis. The directors believe that the full amount of debt is recoverable, and no doubtful debt provision have been made at 31 December 2013.

Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest rate method, less any accumulated impairment.

(d) Plant and Equipment

Plant and equipment are brought to account at cost or at independent or directors’ valuation less, where applicable, any accumulated depreciation or amortisation. The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows which will be received from the assets’ employment and subsequent disposal. The expected net cash flows have not been discounted to their present values in determining recoverable amounts.

Depreciation

The depreciable amount of all fixed assets is depreciated over their useful lives commencing from the time the asset is held ready for use.

A summary of the depreciation method and depreciation rates for each class of attached is as follows.

Class of Asset Method Depreciation Rate

Plant & Equipment Diminishing Value 20%

Leasehold Improvement Prime Cost 10%

(e) Intangible Assets

Intangible assets are initially recognised at the purchase price. At each balance date the carrying value of the assets are reviewed to ensure that they do not differ materially from the asset’s fair value at reporting date. Where necessary, the asset is revalued to reflect its fair value.


NOTE 2: REVENUE

2013 2012

$ $

Revenue from Operating Activities

Subscriptions 764,993 477,125

Government Grants 92,216 91,652

Interest 8,658 5,692

Other 231,414 177,479

Total Revenue from Ordinary Activities 1,097,281 751,948

NOTE 3: EXPENSES

Other Expenses

Bank Charges 4,527 3,726

Insurance 3,759 3,833

Miscellaneous 6,199 4,209

Website development 16,507 2,682

Accounting/Bookkeeping 24,651 116

Relocation Expenses 3,922 3,028

Other Expenses 44,388 13,842

Total Other Expenses 103,953 31,436

NOTE 4: CASH AND CASH EQUIVALENTS

Cash at Bank 110,676 43,252

Short Term Deposits 286,913 297,818

Total Cash and Cash Equivilents 397,589 341,070

NOTE 5: RECEIVABLES

CURRENT

Debtors 117,055 100,540

Total Receivables 117,055 100,540

(a) Provision for Impairment of Receivables

Current trade and term receivables are non-interest bearing and generally on 60 day terms relating to membership subsscription for 2014.

These receivables are assessed for recoverability and a provision for impairment is recognised when there is objective evidence that an individual trade or term receivable is impaired.

The directors have determined that there are no receivables currently subject to impairment.

(b) Credit risk

The company 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 (prior to collateral and other credit enhancements) 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 company and the customer or counterparty to the transactions. 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 repaid to the company.

The balance of receivables that remain within initial trade 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

<30 31-60 61-90 >90$ $ $ $ $ $ $

2013

Trade and terms receivables 117,055 - 71,452 34,792 2,280 8,531 106,244

Total 117,055 - 71,452 34,792 2,280 8,531 106,244

2012

Trade and terms receivables 100,540 505 4,468 82,556 7,079 6,437 87,024

Total 100,540 505 4,468 82,556 7,079 6,437 87,024


NOTE 6: PLANT & EQUIPMENT

2013 2012

$ $

At Cost

Plant and Equipment 95,012 51,997

Less Accumulated Depreciation (31,042) (24,325)

Total Plant & Equipment 63,970 27,672

Reconciliations of the carrying amounts of each class of plant & equipment at the beginning and end of the current financial year is set out below.

Plant & Equipment

Leasehold Improvement

Total

$ $ $

Balance at 1 January 2012 14,997 - 14,997

Additions 17,902 - 17,902

Disposals at WDV - - -

Depreciation expense (5,227) - (5,227)

Balance at 31 December 2012 27,672 - 27,672

Additions 2,530 40,485 43,015

Disposals at WDV - - -

Depreciation expense (5,697) (1,020) (6,717)

Balance at 31 December 2013 24,505 39,465 63,970

NOTE 7: INTANGIBLE ASSET

2013 2012

$ $

Geelong Business Excellence Awards 85,000 45,000

Total intangible assets 85,000 45,000

The purchase price of this asset includes further instalments not yet defined. Refer to Note 19 for further information.

NOTE 8: INCOME IN ADVANCE

Members Subscriptions for 2014 year 158,851 161,113

Total Income in advance 158,851 161,113

NOTE 9: PAYABLES

CURRENT

Trade Creditors 13,171 13,318

Accrued payables - 15,000

PAYG Withholding 43,751 10,390

GST Payable 43,751 46,277

69,447 84,985

NOTE 10: PROVISIONS

CURRENT

Annual Leave 20,055 5,595

TOTAL 20,055 5,595

NON-CURRENT

Long Service Leave 9,192 5,768

TOTAL PROVISIONS 29,247 11,363


NOTE 11: RECONCILIATION OF NET RESULT FOR THE YEAR TO NET CASH FLOWS FROM OPERATING ACTIVITIES

2013 2012

$ $

Profit after income tax 153,165 181,935

Non-Cash Flows in Profit

Depreciation 6,717 5,227

Changes in Assets and Liabilities:

Increase/(decrease) in Employee Entitlements 17,884 6,646

Increase/(decrease) in Payables (15,538) 35,130

Increase/(Decrease) in Income in Advance (2,262) 58,129

Decrease/(Increase) in Prepayments (3,917) -

Decrease/(Increase) in Receivables (16,515) (42,391)

Net Cash From Operating Activities 139,534 244,676

NOTE 12: FINANCIAL RISK MANAGEMENTThe company’s financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, 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:

Financial assets

- Cash and cash equivalents 397,589 341,070

- Loans and receivables 117,055 100,540

Total financial assets 514,644 441,610

Financial liabilities

Financial liabilities at amortised cost:

- Trade and other payables 69,447 84,985

Total financial liabilities 69,447 84,985

NOTE 13: AUDITORS REMUNERATION

Remuneration of the Auditor of the Company for:

- Auditing or reviewing the financial report 1,400 1,100

NOTE 14: KEY MANAGEMENT PERSONNEL COMPENSATION

The totals of remuneration paid to key management personnel (KMP) of the company during the year are as follows:

- Key management personnel compensation 106,122 106,000

NOTE 15: CAPITAL AND LEASE COMMITMENTS

(a) No capital commitments

(b) Operating lease commitments

Non-cancellable operating leases contracted for but not recognised in the financial statements Payable – minimum lease payments:

- not later than 12 months 40,400 -

- later than 12 months but not later than five years 168,284 -

- later than five years 261,561 -

470,245 -

NOTE 16: SEGMENT REPORTINGThe company operated predominantly in one industry. The principal activities of the company relate to the promotion of commerce through liaison with related community groups and government. The company operates in one geographical area, being Geelong, Victoria, Australia.

NOTE 17: MEMBER’S GUARANTEEThe company is limited by guarantee. If the company is wound up, the articles of association state that each member is required to contribute a maximum of $10 each towards meeting any outstanding obligations of the company.

NOTE 18: RELATED PARTIESDuring the year ended 31 December 2013, all transactions between related parties were on commercial terms and conditions no more favourable than those available to other parties, unless otherwise stated.

The following transactions have been noted as significant transactions and therfore disclosed in the financial statements:


An amount of $5,352.69 including GST was paid to Harwood Andrews, of which Joanne D’Andrea is a principal, for legal fees pertaining to lease agreement, employment agreement, and new articles of association.

An amount of $7,903.50 including GST was paid to the event management company, Plan.It.Roxie, of which Roxanne Bennett is the director, for event management services provided for the annual dinner and the Geelong Business Excellence Awards events.

NOTE 19: CONTINGENT ASSETS AND CONTINGENT LIABILITIESDuring 2012, the company purchased the Geeong Business Excellence Awards. At this time the outstanding payments cannot be accurately measured as the payments are reliant on profit targets being reached. The payment will be reduced if targets are not reached.

40,000 Due on or before 30/11/2014 if profit target reached

40,000 Total contingent liabilities

NOTE 20: EVENTS OCCURRING AFTER REPORTING DATESince 31 December 2013 no matter or circumstance has arisen which had significantly affected or which may significantly affect the operations of the organisation.

NOTE 21: COMPANY DETAILSThe company is Limited by Gurantee.

The registered office of the company is

Geelong Chamber of Commerce

2/10 Moorabool Street, Geelong VIC 3220

DECLARATION BY DIRECTORSIn accordance with a resolution of the directors of The Geelong Chamber of Commerce Limited, the directors of the entity declare that:

1. The financial statements and notes, as set out on pages 1 to 12, are in accordance with the Corporations Act 2001 and:

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

(b) give a true and fair view of the financial position of the company as at 31 December 2013 and of its performance for the year ended on that date.

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

Director

Dated this 3rd day of March 2014

geelong chamber of commerce annual report 2013

Documents

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marketing committee

geelongs future

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