Financials - Live Performance Australia 2013-14 Annual Report

LPA 2013-14 Annual Report

Financial Report for the year ended 30 June 2014

Australian Entertainment Industry Association

ABN 43 095 907 857

Registered Office

Level 1, 15-17 Queen Street
Melbourne Victoria 3000

Councillors' Operating Report for the year ended 30 June 2014

Your Councillors submit the financial report of the Australian Entertainment Industry Association for the year ended 30 June 2014.

PRINCIPAL ACTIVITIES

The principal activities of the Association during the financial year were:

  • The provision of benefits and support to members in the areas of industrial relations, human resource services and a broad range of other industry related issues.
  • In 2013-14 AEIA undertook 5 new initiatives. These include: negotiation with APRA regarding Concert Promoters Licence to take effect 1 January 2015; completion of negotiation for Crew Agreement with MEAA; commissioning of second Economic Size and Scope Report; continued development of new Workplace Health and Safety Guidelines; and development of a new Digital Strategy.

These major initiatives have resulted in:

  • Membership base remains strong, diverse and national
  • Successful negotiation and registration of Agreements on behalf of producers and performing arts’ companies
  • Draft Workplace Health and Safety Guidelines prepared.
  • Economic Size and Scope Report released
  • Implementation of new Digital Strategy, including launch of new websites, online reports and social media tracking.

SIGNIFICANT CHANGES IN FINANCIAL AFFAIRS

There are no other significant changes in the nature of the Association’s principal activities during the financial year.

OPERATING RESULTS

The net result for the year amounted to a profit $121,501 (2013: profit $5,404).

There have been no significant changes in the financial affairs of the association.

EVENTS SINCE THE END OF THE FINANCIAL YEAR

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, the results of those operations, or the state of affairs of the Association in future financial years.

NUMBER OF MEMBERS

As at 30 June 2014 the Association had 396 members (2013: 392 members).

NUMBER OF EMPLOYEES

Number of Employees 10, (2013: 10).

RIGHT OF MEMBERS TO RESIGN

Under section 174 of the Fair Work (Registered Organisations) Act 2009 members have the right to resign from Australian Entertainment Industry Association by providing written notice.

Under AEIA’s Rules – Rule 9 Retirement and expulsion of members:

  1. A member may resign from membership of the Association by written notice addressed and delivered to the Chief Executive.
  2. A notice of resignation from membership shall take effect:
    1. where a member ceases to be eligible to become a member of the Association:
      1. on the day on which the notice is received by the Association; or
      2. on the day specified in the notice, which is a day not earlier than the day when the member ceases to be eligible to become a member;

        whichever is later; or
    2. in any other case:
      1. at the end of two weeks after the notice is received by the Association; or
      2. on the day specified in the notice;

        whichever is later.
  3. Any dues payable but not paid by a former member in relation to a period before such resignation takes effect, may be sued for and recovered in the name of the Association, in a court of competent jurisdiction, as a debt due to the Association.
  4. A notice delivered to the Chief Executive in accordance with subsection (a) of this Rule shall be taken to have been received by the Association when it was delivered.
  5. A notice of resignation that has been received by the Association is not invalid because it was not addressed and delivered in accordance with subsection (a) of this Rule.
  6. A resignation from membership of the Association is valid even if it is not effected in accordance with this Rule if the member is informed in writing by or on behalf of the Association that the resignation has been accepted.

LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS

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

COMMITTEE OF MANAGEMENT - EXECUTIVE COUNCILLORS

The names of the Councillors during the year and up to the date of this report are:

B. Carmichael *

M. Coppel *

D. Gautier *

A. Kay *

J. Kotzas *

M. O’Connor *

P Bathols *

M Cassel *

P McIntyre *

T Munn *

L Withers *

V Lovett *

J Isherwood (resigned 11/11/13)

J Bielski (appointed 27/11/13)

R Evans (appointed 27/11/13)

C Hassall (appointed 27/11/13)

L. McLean (appointed 27/11/13)

T Munro (appointed 27/11/13)

R Pilbeam (appointed 27/11/13)

 

M. Lazarus-Hall (term ended 26/11/13)

R. Phillips (term ended 26/11/13)

C McMaster (term ended 26/11/13)

R Fitzgerald (term ended 26/11/13)

C Hoy (term ended 26/11/13)

*All held office for the full Financial Year

INDEMNIFYING OFFICERS, EXECUTIVES OR AUDITORS

The Association has obtained insurance in respect of councillors, officers and executives against all liabilities to other persons that may arise from their positions as councillors, officers or executives. A premium of $14,765 (2013: $12,183) has been paid for this insurance.

The Association has not during or since the end of the financial year, in respect of an auditor of the Association:

  • Indemnified or made any relevant agreement for indemnifying a liability, including costs and expenses in successfully defending legal proceedings; or
  • Paid or agreed to pay a premium in respect of a contract insuring against a liability for the costs or expenses to defend legal proceedings.

No other officer or member of the reporting unit holds a position as a trustee or director of a superannuation entity or exempt public sector superannuation scheme where the criterion for holding such position is that they are an officer or member of an organisation.

Signed in accordance with a resolution of the Councillors.

Andrew Kay
Andrew Kay
President

Maria O'Connor
Maria O’Connor
Vice President

17 October 2014

Executive Council Statement for the year ended 30 June 2014

In the opinion of the Councillors, the financial report as set out on pages 7 to 29:

  1. Presents a true and fair view of the financial performance, financial position, cash flows and notes of the Australian Entertainment Industry Association as at 30 June 2014 for the year ended on that date are in accordance with the reporting guidelines of the General Manager, Australian Accounting Standards, mandatory professional reporting requirements and other authoritative pronouncements of the Australian Accounting Standards Board;
  2. During and since the end of the financial year ended 30 June 2014, the;
    1. meetings of the Executive Council were held in accordance with the rules of the Association; and
    2. financial affairs have been managed in accordance with the rules of the Association; and
    3. financial records have been kept and maintained in accordance with the Fair Work (Registered Organisation) Act 2009; and
    4. where information has been sought in any request by a member of the Australian Entertainment Industry Association or General Manager made under section 272 of the RO Act has been provided to the member or General Manager in accordance with the Fair Work (Registered Organisations) Act 2009, and
    5. any order for inspection of financial records made by the Fair Work Commission under Section 273 of the RO Act has been complied with.
  3. In relation to recovery of wages activity:
    1. in accordance with the requirements of the reporting guidelines of the General Manager, Fair Work Commission there was no recovery of wage activities in this financial year; and
    2. prior to engaging in any recovery of wages activity, the organisation will disclose to members by way of a written policy all fees to be charged or reimbursement of expenses required for recovery of wages activity, and any likely request for donations or other contributions in acting for a worker in recovery of wages activity.
  4. At the date of this statement, there are reasonable grounds to believe that the Australian Entertainment Industry Association will be able to pay its debts as and when they fall due.
  5. The Committee of Management of AEIA passed the resolution to approve and accept the Financial Statements for the year ended 30 June 2014 on 17 October 2014.

This declaration is made in accordance with a resolution of the Councillors and is signed for and on behalf of the Councillors by:

Andrew Kay
Andrew Kay
President

Maria O'Connor
Maria O’Connor
Vice President

17 October 2014

Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 30 June 2014


Notes

2014

$

2013

$

Revenue

Membership Subscription *


434,489

428,191

Capitation fees *


-    

-    

Levies *


-    

-    

Interest

3A

23,886

28,130

Helpmann Awards


798,153

742,596

EEIG Project


363,538

-     

Other Revenue

3B

1,308,468

1,282,138

Total Revenue 


2,928,534

2,481,055

Other Income

Grants


-     

16,000

Total Other Income


-     

16,000

Total Income


2,928,534

2,497,055

Expenses 

Employee Expenses

4A

1,104,277

1,042,981

Capitation fees *


-     

-     

Affiliation fees *


-     

-     

Administration expenses

4B

564,710

582,422

Grants and/or donations *


-     

-     

Depreciation and amortisation

4C

32,763

21,720

Legal costs

4D

(23,887)

93,217

Audit fees

14

18,770

13,470

Net Losses from sale of assets


-     

-     

Other expenses *

4E

-     

-     

Helpmann Awards


795,919

737,841

EEIG Project


314,481

-     

Total expenses


2,807,033

2,491,651

Profit for the year


121,501

5,404

Income tax expense 

1(q)

-   

-   

Profit after Income Tax Expense


121,501

5,404

Other Comprehensive Income, net of tax


-    

-    

Total Comprehensive Income for the Year


121,501

5,404

The above Statement should be read in conjunction with the notes.

* As required by the reporting Guidelines. Item to remain even if ‘nil’.

Statement of Financial Position as at 30 June 2014


Notes

2014

$

2013

$

CURRENT ASSETS

Cash and cash equivalents

5A

1,317,382

1,316,932

Trade and other receivables

5B

376,256

635,270

Other current assets

5C

150,399

174,495

TOTAL CURRENT ASSETS


1,844,037

2,126,697

NON-CURRENT ASSETS

Office equipment

6A

17,452

21,787

Furniture and fittings

6B

11,676

6,191

Intangibles

6C

111,967

41,364

TOTAL NON-CURRENT ASSETS


141,095

69,342

TOTAL ASSETS


1,985,132

2,196,039

CURRENT LIABILITIES

Trade payables

7A

289,722

369,200

Other payables

7B

1,065,862

1,320,976

Employee Provisions

8A

160,401

114,977

TOTAL CURRENT LIABILITIES


1,515,985

1,805,153

NON-CURRENT LIABILITIES

Employee Provisions

8A

3,789

47,029

Other non-current liabilities *

9A

-  

-  

TOTAL NON-CURRENT LIABILITIES


3,789

47,029

TOTAL LIABILITIES


1,519,774

1,852,182

NET ASSETS


465,358

343,857

MEMBERS' EQUITY

General Funds

10A

120,000

-       

Retained profits


345,358

343,857

TOTAL MEMBERS’ EQUITY


465,358

343,857

The above Statement should be read in conjunction with the notes.

* As required by the reporting Guidelines. Item to remain even if ‘nil’.

Statement of Changes in Equity as at 30 June 2014


Notes

General Funds

$

Retained Earnings

$

Total Equity

$

Balance as at 01 July 2012


-            

338,453

338,453

Adjustment for errors


-            

-            

-            

Adjustment for changes in accounting policies


-            

-            

-            

Profit for the Year


-            

5,404

5,404

Other comprehensive income for the year


-            

-            

-            

Transfer to/from Legal expense Reserve


-            

-            

-            

Transfer from retained earnings


-            

-            

-            

Closing balance as at 30 June 2013


-            

343,857

343,857

Adjustment for errors


-            

-            

-            

Adjustment for changes in accounting policies


-            

-            

-            

Profit for the Year


-            

121,501

121,501

Other comprehensive income for the year


-            

-            

-            

Transfer to/from Legal expense Reserve

10A

120,000 

-            

120,000

Transfer from retained earnings


-            

(120,000)

(120,000)

Closing balance as at 30 June 2014


120,000

345,358

465,358

The above Statement should be read in conjunction with the notes.

Statement of Cash Flows for the Year Ended 30 June 2014


Notes

2014

$

2013

$

Cash Flows from Operating Activities

Cash received

Receipts from other reporting units/ controlled entity(s) *


-     

-    

Receipts from members and non members


2,838,337

2,560,523

Interest received


27,601

39,108

Cash Used

Payment to other reporting units/controlled entity(s) *


-     

-     

Payments to suppliers and employees


(2,760,973)

(2,203,074)

Net Cash Provided By Operating Activities

11A

104,965

396,557

Cash Flows From Investing Activities

Cash Used

Purchase of Property, Plant and Equipment


(14,235)

(19,510)

Purchase of Website


(90,280)

(36,734)

Net Cash Used In Investing Activities


(104,515)

(56,244)

Net Increase in Cash Held


450

340,313

Cash at the beginning of the financial year


1,316,932

976,619

Cash & cash equivalents at the end
of the Financial Year

5A

1,317,382

1,316,932

The above Statement should be read in conjunction with the notes.

* As required by the reporting Guidelines. Item to remain even if ‘nil’.

Recovery of Wages Activity* for the Year Ended 30 June 2014


2014

$

2013

$

Cash assets in respect of recovered money at beginning of year

-    

-    


-    

-    

Total Receipts

-    

-     

Payments


-    

-    

Total Payments

-    

-    

Cash assets in respect of recovered money at end of year

-    

-    

Number of workers to which the monies recovered relates

-    

-    

Aggregate payables to workers attributable to recovered monies but not yet distributed

Payable balance

-    

-    

Number of workers the payable relates to

-    

-    

Fund or account operated in recovery of wages

-    

-    

The above Statement should be read in conjunction with the notes.

* As required by the reporting Guidelines. Item to remain even if ‘nil’.

Index to the Notes of the Financial Statements

Note 1 Statement of Significant Accounting Policies

Note 2 Events after the Reporting Period

Note 3 Income

Note 4 Expenses

Note 5 Current Assets

Note 6 Non-current Assets

Note 7 Current Liabilities

Note 8 Provisions

Note 9 Non-current Liabilities

Note 10 Equity

Note 11 Statement of Cash Flows

Note 12 Contingent Liabilities and Commitments

Note 13 Related Party Disclosures

Note 14 Remuneration of Auditors

Note 15 Financial Instruments

Note 16 Section 272 Fair Work (Registered Organisations) Act 2009

Note 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

1(a) Basis of Preparation of the Financial Statements

The Australian Entertainment Industry Association (AEIA) is an incorporated association, incorporated and domiciled in Australia. AEIA’s principal activities are the provision of benefits and support to its members in the areas of industrial relations, human resource services and a broad range of other issues.

The registered office and principal place of business is Level 1, 15-17 Queen Street, Melbourne, Victoria. The financial statements are presented in Australian dollars.

The financial report was authorised for issue by the Executive Council of AEIA on the date shown on the Executive Council Statement attached to the Financial Statements.

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, including Australian Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board and the Fair Work (Registered Organisations) Act 2009.

The financial report has been prepared on a going concern and an accrual basis and is based on historical costs and does not take into account changing money values or, except where stated, current valuations of noncurrent assets. Cost is based on the fair values of the consideration given in exchange for assets.

AEIA is considered to be a Not for Profit entity and has prepared the financial statements in accordance with the requirements regarding Not for Profit entities as contained in Australian Accounting Standards.

The following is a summary of the material accounting policies adopted by the company in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

1(b) Comparative Figures

Comparatives have been reclassified where necessary so as to be consistent with the figures presented in the current financial year.

1(c) Significant Accounting, Judgements and Estimates

AEIA has applied all accounting standards that are effective at 30 June 2014. Accounting standards and amendments to Accounting Standards that have been issued, but not effective until later dates have not been applied. The Councillors believe there will be no significant impact on AEIA’s accounting policies.

1(d) Revenue Recognition

Memberships are generally for a period of twelve months from July to June. The membership fees are invoiced a month prior to 1 July each year and Membership Fee income is recognised in equal monthly instalments over the twelve month period ending June in the year to which it relates.

1(e) Government Grants

Government grants are not recognised until there is reasonable assurance that AEIA will comply with the conditions attaching to them and that the grants will be received.

Government grants are recognised in profit or loss on a systematic basis over the periods in which AEIA recognises as expenses the related costs for which the grants are intended to compensate.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to AEIA with no future related costs are recognised in profit or loss in the period in which they become receivable.

1(f) Gains

Gains and losses from disposal of assets are recognised when control of the asset has passed to the buyer.

1(g) Plant and Equipment

Plant and equipment is measured on the cost basis less depreciation and impairment losses.

The carrying amount of plant and equipment is reviewed annually by Councillors to ensure it is not in excess of the recoverable amount from the assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

1(h) Intangibles

Trademarks

Trademarks are stated at cost and are not amortised as the Councillors believe they have an indeterminate life and are not expected to diminish in value over time. The carrying amounts of the trademarks are reviewed at the end of each accounting period to ensure they are not valued in excess of their recoverable amounts.

Websites

AEIA Members’ website is initially measured at cost. Following initial recognition it is carried at cost less accumulated amortisation and any accumulated impairment losses. The website is amortised over a useful life of three years.

1(i) Employee Benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave and termination benefits when it is probable that settlement will be required and they are capable of being measured reliably.

Liabilities for short-term employee benefits (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of the end of reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Other long-term employee benefits are measured as the present value of the estimated future cash outflows to be made by the reporting unit in respect of services provided by employees up to reporting date.

1(j) Leases

A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of the leased property, and operating leases under which the lessor effectively retains all such risks and benefits.

Where fixed assets are acquired by means of finance leases, the present value of minimum lease payments, including any guaranteed residual value, are established as assets at the beginning of the lease term and are amortised on a straight line basis over their expected economic life. A corresponding liability is also established and each lease payment is allocated between such liability and interest expense.

Operating lease payments are charged to expense on a basis which is representative of the pattern of benefits derived from the leased property.

Payments under a non-cancellable operating lease for surplus leased space are recognised as a liability and expense when it is probable that a loss will be incurred. The amount recognised is the total expected outlay, net of sub-lease revenue, discounted at the interest rate implicit in the lease.

1(k) Cash and Cash Equivalents

Cash is recognised at its nominal value. Cash and cash equivalents include cash on hand, deposits held at call with banks and other short term liquid investments.

1(l) Allowance for Doubtful Debts

The collectability of debts is assessed at year-end and allowance is made if required for any specific doubtful debts.

1(m) Trade and Other Receivables

Trade accounts receivable, amounts due from related parties and other receivables represent the principal amounts outstanding at reporting date plus accrued interest and less, where applicable, any unearned income and allowances for doubtful accounts.

1(n) Trade and Other Payables

Accounts payable represent the principal amounts outstanding at reporting date plus, when applicable, any accrued interest.

1(o) Depreciation and Amortisation

Items of property plant and equipment are depreciated using the straight line method over their useful lives. The depreciation rates used for each class of asset are as follows:

  • Office Equipment - 1 to 5 years
  • Furniture and Fittings - 4 to 10 years

1(p) Impairment of Non-Financial Assets

At each reporting date the Association reviews the carrying amounts of assets to determine whether there is any indication that those assets have suffered an impairment loss. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss if any. The Councillors are satisfied that the carrying amounts of assets do not exceed the net amounts that are expected to be recovered through the cash inflows and outflows arising from the continued use and subsequent disposal of the assets.

1(q) Taxation

AEIA is exempt from income tax under Section 50.1 of the Income Tax Assessment Act 1997 however still has obligation for Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses and assets are recognised net of GST except:
  • where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
  • for receivables and payables.

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

Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the Australian Taxation Office is classified within operating cash flows.

1(r) Investment in Associates, Business Combinations

There were no investments in Associates or any Business Combinations during the Year ended 30 June 2014.

1(s) Levies, financial support

AEIA has not raised any compulsory levies from members or received any financial support from another reporting unit.

1(t) Expenses – Capitation, Affiliation

AEIA has not incurred or paid any capitation fees or any affiliation fees.

1(u) Receivables or Payables With Another Reporting Unit

There have been no receivable or payable transactions with another reporting unit.

Note 2 Events After the Reporting Period

No matter or circumstance has arisen since the end of the financial year that has significantly affected or may significantly affect the operations of the Association, the results of those operations, or the state of the affairs of the Association in future financial reports.

Note 3 Income


2014
$

2013
$

3A. Interest

Deposits

23,886

28,130

Total interest

23,886

28,130

3B. Other revenue

Industry Service Fee

1,190,197

1,110,657

Other

118,271

171,481

Total other revenue

1,308,468

1,282,138

Note 4 Expenses


2014
$

2013
$

4A. Employee expenses *

Holders of office:

Wages and Salaries

-     

-     

Superannuation

-     

-     

Separation and redundancies

-     

-     

Subtotal employee expenses holders of office

-     

-      

Employees other than office holders:

Wages and Salaries

970,651

907,912

Superannuation

81,233

78,819

Leave and other entitlements

2,184

21,942

Separation and redundancies

-     

-     

Other employee expenses

50,209

34,308

Subtotal employee expenses employees other than office holders

1,104,277

1,042,981

Total employee expenses

1,104,277

1,042,981

4B. Administration expenses

Consideration to employers for payroll deductions

-   

-   

Compulsory levies

-   

-   

Conference  Expenses

6,557

2,820

Meeting Expenses - Executive Council

5,890

1,361

Meeting Expenses - Annual General Meeting

3,725

3,204

Meeting Expenses - Members Forum

21,286

22,136

Rent

86,044

79,101

Other Expenses

441,208

473,800

Total Administration expenses

564,710

582,422

* As required by the reporting Guidelines. Item to remain even if ‘nil’.


2014
$

2013
$

4C. Depreciation and amortisation

Depreciation



Office equipment

10,707

16,907

Furniture & Fittings 

2,379

4,813

Total depreciation

13,086

21,720

Amortisation



Intangibles

19,677

-    

Total amortisation



Total depreciation and amortisation

32,763

21,720

4D. Legal costs *

Litigation

-    

-    

Other legal matters

(23,887)

93,217

Total legal costs

(23,887)

93,217

4E. Other expenses

Penalties – via RO Act or RO Regulations *

-     

-     

Total other expenses

-     

-     

* As required by the reporting Guidelines. Item to remain even if ‘nil’.

Note 5 Current Assets

 

2014
$

2013
$

5A. CASH AND CASH EQUIVALENTS

Cash at Bank

664,236

690,118

Cash on Hand

400

200

Short-term Deposit

642,746

616,614

Rent Guarantee – Term Deposit

10,000

10,000

TOTAL CASH AND CASH EQUIVALENTS

1,317,382

1,316,932

The short term deposits mature on 07 November 2014 ($322,467) and 15 December 2014 ($320,279). The effective interest rate on the short term deposit is 3.15% (2013: 3.95%).

* As required by the reporting Guidelines. Item to remain even if ‘nil’.

 

2014
$

2013
$

5B. TRADE AND OTHER RECEIVABLES (CURRENT)

Receivables from other reporting unit(s) *


-     

-     

Total Receivables from other reporting unit(s)

-     

-     

Less provision for doubtful debts *




-     

-     

Total Provision for Doubtful Debts

-     

-     

Net Receivables from other reporting unit(s)

-     

-     

Other receivables

Trade Debtors

393,959

648,977

Allowance for Doubtful Debts

(17,703)

(13,707)

Net Total Other receivables

376,256

635,270

Total trade and other receivables

376,256

635,270

* As required by the reporting Guidelines. Item to remain even if ‘nil’.

Allowance for Impairment Loss

Trade receivables are non-interest bearing and are generally on 7 - 30 day terms. A provision for impairment loss is recognised when there is objective evidence that an individual trade receivable is impaired. An impairment loss of $ nil (2013: $3,333) has been recognised by the entity in the current year.

Movements in the provision for impairment loss were as follows:


2014
$

2013
$

Opening Balance

13,707

12,000

Additional Provision

3,996

5,040

Amounts Written off

-       

(3,333)

Amounts Recovered

-       

-        

Closing Balance

17,703

13,707

At 30 June, the ageing analysis of trade receivables is as follows:


As at 30 June 2014

As at 30 June 2013


Gross
$

Allowance
$

Gross
$

Allowance
$

Current

183,115

-

472,174

-

31 – 60 days

199,582

(6,703)

155,412

-

61 – 90 days

11,262

(11,000)

10,391

(5,000)

91 days and over

      -

-

11,000

(8,707)

Closing Balance

393,959

(17,703)

648,977

(13,707)

As at 30 June 2014 the Association had debts that were past due but not doubtful in the amount of $262 (2013: $163,096). These trade receivables comprise trade receivables that have a reasonable paying history and are considered recoverable.

The Association also had debts that were past due and are recognised as doubtful so the provision has adjusted accordingly to provide for those debtors $17,703 (2013: $13,707).


2014
$

2013
$

5C. OTHER (CURRENT)

Helpmann Awards prepaid expenses

133,135

151,357

Other prepaid expenses

17,264

23,138

Total Prepayments

150,399

174,495

Note 6 Non-Current Assets


2014
$

2013
$

6A. OFFICE EQUIPMENT

Office Equipment - At Cost

79,091

72,719

Less:  Accumulated Depreciation

(61,639)

(50,932)

Total Office Equipment

17,452

21,787

Reconciliation of the Opening and Closing Balances of Office Equipment


2014
$

2013
$

As at 01 July

Gross book value

72,719 

57,319 

Accumulated depreciation

(50,932) 

(34,026) 

Net book value 01 July

21,787 

  23,293 

Additions

6,372 

  15,401 

Depreciation expense

(10,707) 

(16,907) 

Disposals

    -

    -

Transfers

    -

    -

Net book value 30 June

17,452 

21,787 

Net book value as of 30 June represented by:

Gross book value

79,091 

72,719 

Accumulated depreciation

(61,639) 

(50,932) 

Net book value 30 June

17,452 

  21,787 


2014
$

2013
$

6B. FURNITURE AND FITTINGS

Furniture and Fittings - At Cost

32,062

24,198

Less:  Accumulated Depreciation

(20,386)

(18,007)

Total Furniture and Fittings

11,676

6,191

Reconciliation of the Opening and Closing Balances of Furniture and Fittings


2014
$

2013
$

As at 01 July

Gross book value

24,198 

20,089 

Accumulated depreciation

(18,007) 

(13,194) 

Net book value 01 July

  6,191 

  6,895 

Additions

7,864

  4,109 

Depreciation expense

(2,379) 

(4,813) 

Disposals

       -

       -

Transfers

       -

       -

Net book value 30 June

11,676 

  6,191 

Net book value as of 30 June represented by:

Gross book value

32,062 

24,198 

Accumulated depreciation

(20,386)

(18,007) 

Net book value 30 June

11,676 

  6,191 

 

2014
$

2013
$

6C. INTANGIBLES

Trademarks – At Cost

4,630

4,630

Website – At Cost

127,014

36,734

Less : Accumulated Amortisation - Website

(19,677)

-     

Total Website

107,337

36,734

Total Website and Trademarks

111,967

41,364

Reconciliation of the Opening and Closing Balances of Website


2014
$

2013
$

As at 01 July

Gross book value

36,734

58,400

Accumulated depreciation

        -

(58,400)

Net book value 01 July

36,734

    -

Additions

90,280

36,734

Depreciation expense

(19,677)

-

Disposals

   -

   -

Transfers

-

-

Net book value 30 June

107,337

36,734

Net book value as of 30 June represented by:

Gross book value

127,014

36,734

Accumulated depreciation

(19,677)

    -

Net book value 30 June

107,337

36,734

Note 7 Current Liabilities


2014

$

2013

$

7A.    TRADE PAYABLES

Non-Interest Bearing

Trade creditors 

147,652

114,532

Accruals

142,070

254,668

Subtotal Trade Creditors and Accruals

289,722

369,200

Payables to other reporting unit(s)


-     

-     

Subtotal Payables to other reporting unit(s)

-     

-     

Total trade payables

289,722

369,200


2014
$

2013
$

7B. OTHER PAYABLES

Wages and Salaries

48,459

40,294

Superannuation

-     

8,108

Consideration to employers for payroll deductions

-     

-     

Legal costs

-     

-     

Prepayments received/ unearned revenue

802,161

920,707

EEIG Project

99,545

179,522

GST payable

85,684

103,608

Other

30,013

68,737

Total Other payables

1,065,862

1,320,976

Total other payables are expected to be settled in:

No more than 12 months

1,065,862

1,320,976

More than 12 months

-     

-     

Total Other payables

1,065,862

1,320,976

Note 8 Provisions

  2014
$
2013
$

8A. EMPLOYEE PROVISIONS*

Office holders

Annual Leave

-     

-     

Long Service Leave

-     

-     

Separation and Redundancies

-     

-     

Other Employee Provisions

-     

-     

Subtotal employee provisions – office holders

-     

-     

Employees other than office holders

Annual Leave

52,357

49,655

Long Service Leave

111,833

112,351

Separation and Redundancies

-     

-     

Other Employee Provisions

-     

-     

Subtotal employee provisions – employees other than office holders

164,190

162,006

Total employee provisions

164,190

162,006

Current

160,401

114,977

Non-current

3,789

47,029

Total employee provisions

164,190

162,006

Note 9 Non-Current Liabilities


2014

$

2013

$

9A. OTHER NON-CURRENT LIABILITIES *


-     

-     

Total Other non-current Liabilities

-     

-     

Note 10 Equity

10A General funds

 

2014

$

2013

$

Legal Expense Reserve

Balance at start of year

-     

-     

Transferred to reserve

120,000

-     

Transferred from Reserve

-      

-     

Balance as at end of year

120,000

-     

Note 11 Statement of Cash Flows

11A Cash Flow Reconcilliation

Reconciliation of cash and cash equivalents as per Statement of Financial Position to Cash Flow Statement:


2014

$

2013

$

Cash and cash equivalents as per:

Statement of Cash Flows

1,317,382

1,316,932

Statement of Financial Position

1,317,382

1,316,932

Difference

-

-     

* As required by the reporting Guidelines. Item to remain even if ‘nil’.

Reconciliation of profit/ (deficit) to net cash from operating activities:


2014

$

2013

$

Profit for the year

121,501

5,404

Adjustments for non-cash items

Depreciation of Property, Plant & Equipment

13,085

21,720

Amortisation of Intangibles

19,677

-   

Loss on Disposal of Assets

-   

-   

Changes in Assets and Liabilities

(Increase)/Decrease in trade and other receivables

255,018

(240,261)

Increase in allowance for doubtful debts

3,996

1,707

Decrease /(Increase) in other assets

24,096

(50,245)

Increase/(Decrease) in trade and other payables

(334,593)

636,290

Increase in provisions

2,185

21,942

Net Cash Provided By Operating Activities

104,965

396,557

Note 12 Contingent Liabilities and Commitments


2014

$

2013

$

12A. LEASE COMMITMENTS

Non-Cancellable Operating Leases Payable:

-     

-     

Premises Rental

Payable no later than one year

98,361

94,794

Payable later than one year but not later than five years

13,365

241,029


241,726

335,823

12B Contingent Liabilities

AEIA maintains a security deposit of $10,000 as part of the lease agreement of the office premises at 15-17 Queen Street, Melbourne.

Note 13 Related Party Disclosures

13A Related Party Transactions- Executive Council

Related Party Transactions

The following related party transactions occurred during the financial year:

Revenue received from:

All Executive Councillors’ Organisations pay a membership subscription fee at the standard commercial rates set for the membership.

Expenses paid to:


2014
$

2013
$

D. Gautier – CEO, Adelaide Festival Centre. -for Venue Hire/ Catering.

820

2,437

J.Kotzas – Chief Executive, Queensland Performing Arts Centre. - for Venue Hire/ Catering. 

10,592

947

M. Lazarus-Hall – Managing Director, Chugg Entertainment – Performers

-

3,750

R. Phillips – Chief Executive, AEG Ogden (Perth) Pty Ltd. -  for Venue Hire.

-

2,462

R. Pilbeam – Executive Director, AEG Ogden – for Catering.

1,154


P. McIntyre – General Manager, Sydney Theatre Company. -  for Venue Hire.

373

-

J. Isherwood – Chief Executive, Arts Centre Melbourne – for WH&S labour

-

110

Louise Withers - Managing Director – Louise Withers & Associates Pty Ltd – reimbursement of expenses

-

1,222

A. Collette – Chief Executive, Opera Australia. -  for Staging Hire.

-

1,200

J. Bielski – Director Programming – Sydney Opera House – for catering.

2,166

-

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms to those that prevail in arm’s length transactions. Outstanding balances for sales and purchases at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended 30 June 2014, the Australian Entertainment Industry Association has not recorded any impairment of receivables relating to amounts owed by related parties and declared person or body (2013 $Nil).

No members of the Executive Council received any remuneration for services as Executive Councillors.

No employee provisions have been made for any Office holders - Executive Councillors.

13B Key Management Personnell Remuneration


2014

$

2013

$

Short-term employee benefits

Salary (including annual leave taken)

195,804

191,122

Annual leave accrued

12,332

5,987

Performance Bonus

14,000

-     

Total Short-term employee benefits

222,136

197,109

Post-employment benefits

Superannuation

15,806

13,898

Total post-employment benefits

15,086

13,898

Other long-term benefits

Long service leave

28,345

20,707

Total Other long-term benefits

28,345

20,707

Total

265,567

231,714

Note 14 Remuneration of Auditors


2014
$

2013
$

Financial statement audit services

18,770

13,470

Other services

-    

-    

Total remuneration of Auditors

18,770

13,470

Note 15 Financial Instruments

Financial Risk Management Objectives and Policies

The Association’s principal financial instruments comprise receivables, payables, cash, and short-term deposits. These activities expose the Association to a variety of financial risks: market risk (including interest rate risk and price risk), credit risk and liquidity risk.

Although the Association does not have documented policies and procedures, the Councillors manage the different types of risks to which it is exposed by considering risk and monitoring levels of exposure to interest rate risk and by being aware of market forecasts for interest rates. Ageing analyses and monitoring of specific credit allowances are undertaken to manage credit risk, liquidity risk is monitored through general business budgets and forecasts.

15A Categories of Financial Instruments

The Association holds the following financial instruments:


2014

$

2013

$

Financial Assets

Cash and cash equivalents

1,317,382

1,316,932

Trade and other receivables

376,256

635,270

Total Financial Assets

1,693,638

1,952,202

Financial Liabilities

Trade and other payables

1,355,584

1,690,176

Total Financial Liabilities

1,355,584

1,690,176

Net exposure

338,054

262,026

15B Risk Exposure and Responses

Market risk

The Association’s exposure to market interest rates relates primarily to the entity’s short term deposits held. The effect of volatility of interest rates within expected reasonable possible movements would not be material.

Price risk

The Association’s exposure to commodity and equity securities price risk is minimal.

Liquidity Risk

The Association manages liquidity risk by monitoring cash flow and maturity profiles of financial assets and liabilities.

Credit risk

The maximum exposure to credit risk, excluding the value of any collateral or other security, at reporting date to recognised financial assets is the carrying amount of those assets, net of any allowance for doubtful debts, as disclosed in the statement of financial position and notes to the financial report.

The Association trades only with recognised, creditworthy third parties, and as such collateral is not requested nor is it the entity's policy to securitise its trade and other receivables.

It is the Association's policy to consider the credit worthiness of all customers who wish to trade on credit terms.

In addition, receivable balances are monitored on an ongoing basis with the result that the Association's exposure to bad debts is not significant. There are no significant concentrations of credit risk.

15C Maturities of Financial Assets and Liabilities

The table below analyses the Association’s financial liabilities, net and gross settled derivative financial instruments into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

Year ended 30 June 2014


< 6 months

$

6 – 12 months

$

1 – 5 years

$

> 5 years

$

Total

$

Financial assets

Bank

1,317,382

-

-

-

1,317,382

Trade and other receivables

376,256

-

-

-

376,256

Total Financial assets

1,693,638

-

-

-

1,693,638

Financial liabilities

Trade and other payables

1,073,476

282,108

-

-

1,355,584

Total Financial liabilities

1,073,476

282,108

-

-

1,355,584

Net maturity

620,162

(282,108)

-

-

338,054

Note 16 Section 272 Fair Work (Registered Organisations) Act 2009

In accordance with the requirements of Section 253 of the Fair Work (Registered Organisations) Act 2009, the attention of members is drawn to the provisions of sub-sections (1) to (3) of section 272, which reads as follows:

Information to be provided to members or the General Manager of Fair Work Commission:

  1. A member of a reporting unit, or the General Manager of Fair Work Commission, may apply to the reporting unit for specified prescribed information in relation to the reporting unit to be made available to the person making the application.
  2. This application must be in writing and must specify the period within which, and the manner in which, the information is to be made available. The period must not be less than 14 days after the application is given to the reporting unit.
  3. A reporting unit must comply with an application made under subsection (1).

Executive Council Attendance

 

Total Meetings Eligible to Attend Meetings Attended
President

Andrew Kay
Andrew Kay & Associates

6 6

Vice-Presidents

John Kotzas 
Queensland Performing Arts Centre

6 4

Maria O’Connor 
Ticketmaster Australasia & NZ

6

Executive Councillors

Phil Bathols 
Spiritworks Pty Ltd

6 5

Jonathan Bielski 
Sydney Opera House

3 2

Bruce Carmichael
 Canberra Theatre Centre

6 5

Michael Cassel 
Cameron Mackintosh Australia Pty Ltd

5 2

Michael Coppel
 Live Nation Australasia

6 5

Richard Evans
Richard Evans and Assoc Consulting

3 2

Richard Fitzgerald
Industry Consultant

2 2

Douglas Gautier
 Adelaide Festival Centre

6 2

Craig Hassall
Opera Australia 

3 2

Cameron Hoy
Ticketek

3 1

Judith Isherwood
Arts Centre Melbourne

2 1

Matthew Lazarus-Hall*
Chugg Entertainment

3 0

Virginia Lovett
 Melbourne Theatre Company

6 4

Patrick McIntyre
Sydney Theatre Company

6 4

Liza McLean
Tinderbox Productions

3 3

Craig McMaster
ShowBiz

1 1

Teena Munn**
 Windmill Theatre

5 4

Tim Munro
Theatre Royal

3 3

Rodney Phillips
AEG Ogden

3 2

Rod Pilbeam
AEG Ogden 

3 3

Louise Withers
 Louise Withers & Associates Pty Ltd

6 3

* Leave of absence of 3 meetings

** Leave of absence for 1 meeting