ANNUAL REPORTS 2014–2015 - Master electrician MEA... · MEA ECA Annual Report 2014–2015. 3. Electrical And Communications Association Annual Report Statement of Profit or Loss

Master Electricians Association Limited andElectrical and Communications Association

ANNUAL REPORTS 2014–2015

2 MEA and ECA Annual Report 2014–2015

ANNUAL REPORT 2014–2015

ContentsPresident’s Report ...................................................................................................................4

Chief Executive Officer’s Report ...................................................................................... 5

Master Electricians Association Limited Annual Report

Directors’ Report ...................................................................................................................... 8

Statement of Profit or Loss and Other Comprehensive Income ......................11

Statement of Financial Position .......................................................................................12

Statement of Changes in Equity ......................................................................................13

Statement of Cash Flows ................................................................................................... 14

Notes to the Financial Statements .................................................................................15

Directors’ Declaration ...........................................................................................................18

Auditor’s Independence Declarationn ......................................................................... 19

Independent Auditor’s Report ........................................................................................20

3MEA and ECA Annual Report 2014–2015

Electrical And Communications Association Annual Report

Statement of Profit or Loss .............................................................................................. 24

Statement of Comprehensive Income .........................................................................25

Statement of Financial Position ..................................................................................... 26

Statement of Changes in Equity .....................................................................................27

Statement of Cash Flows ...................................................................................................28

Notes to the Financial Statements ............................................................................... 29

Certificate by Accounting Officer of Union ............................................................. 42

Certificate by Treasurer ...................................................................................................... 43

Certificate by Members of Council ...............................................................................44

Certificate by President ..................................................................................................... 45

Independent Audit Report to the Members ............................................................46


PRESIDENT’S REPORT

Richard FlanaganAfter six years serving as President of Master Electricians Australia, I am pleased to be passing control of the organisation to a well credentialed president in Tony Arnold.The last 6 years have been an exciting and sometimes stressful journey, and I am most proud of what has been achieved in my time as President of the organisation, and having been part of the growth and success of MEA.

Over the past six years, I was involved in transitioning Master Electricians Australia from being a primarily Queensland based organisation to a truly national brand and the leading body representing electrical contractors throughout Australia. This transition has also seen membership numbers very nearly double over the last six years with dedicated state managers in all states and territories and MEA offices now in New South Wales, Victoria, Western Australia and South Australia.

My time as President has also seen the development and introduction of MEA’s innovative safety program, SafetyConnect, which has set the standard for safety systems of its kind across the country.

The last six years have also seen MEA firmly establish itself as the leading advocate for the electrical industry in Australia. We played a prominent role in the Royal Commission into the Home Insulation Program and led the way in the push for more comprehensive safety switch laws across the country with MEA’s Project Safety Switch campaign and release of the Switch Thinking report. MEA also took a strong stance on faulty electrical products and recall processes following the Infinity cable and Avenco isolator recalls, forcing government to recognise the need for action on safety standards for imported electrical products. As both President of MEA and Chair of the Queensland Electrical Safety Office, I believe that with the strong assistance of Malcolm we have achieved a great deal for the electrical industry.

I wish to thank all members of the Association who served on the Council and Board during my tenure as President, and my special thanks goes to the inaugural members of the MEA Board. Also, immediate past President Geoff Baldwin must be recognised as the person who initiated the change from ECAQ to MEA.I am excited to see what lies ahead for MEA and new President, Tony Arnold. Tony is greatly respected within the industry and has been an active and enthusiastic member of the MEA Board for a number of years. I have no doubt he will lead MEA to even greater heights in the years to come.

RICHARD FLANAGANPRESIDENT

5MEA and ECA Annual Report 2014–2015

CEO’S REPORT

Malcolm RichardsIt’s not often in this industry that you get to see true leadership in action.I have had the enviable pleasure over the last 6 years to serve the Council and Board led by our President and Chair, Richard Flanagan. This has been a time of immense change and growth. Richard has been unwavering in his passion for the industry and in turn for Master Electricians to succeed and grow to be the respected national association it is today. The legacy Richard leaves behind is open for all to see with substantial membership growth, a solid national footprint and increased financial capacity. One of the significant advantages of our association is the national centralised structure combined with long term leaders at the helm providing for a very stable organisation.

The last year has been one of preparation for a major upgrade to our key services. One of the key mantras of Richard is to keep our products at the highest quality.

That’s why we have invested heavily in our safety and training programs to deliver leading edge programs for the future of the industry. As a member I’m sure you will be impressed by the improvements in both areas.

The future sees Tony Arnold take over as President. Tony will bring his own professional flavour to the organisation when he takes over at the upcoming AGMs. Tony’s history of success in his own business and the value he places on his employees will undoubtedly ensure MEA will continue to dominate the national landscape in years to come.

MALCOLM RICHARDSCEO


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MEA Annual Report 2014–2015 7

MASTER ELECTRICIANS ASSOCIATION LIMITED

ANNUAL REPORT2014-2015

8 MEA Annual Report 2014–2015

DIRECTORS’ REPORTMaster Electricians Association LimitedACN 163 222 642

DIRECTORS REPORTFOR THE YEAR ENDED 30 JUNE 2015

Information on Directors

Name

Mr Richard Gerard Flanagan Appointed Chairman on 9 April 2013Director and Chairman of Master Electrcians Australia LimitedECA PresidentLicensed electrical contactorSelf employed

Mr Trevor Charles St Baker DirectorDirector of ECA SafetyConnect Pty LtdDirector of Master Electrcians Australia LimitedBEngBAFAusIMMFIEAustFAIEMAICDResigned as director on 25 July 2014

Mr James Edward Johnson DirectorDirector of Master Electrcians Australia LimitedMaster of Business – MarketingHarvard BS – Global Strategic Mgt

Mr Joshua Nicholls DirectorDirector of Master Electrcians Australia LimitedLicensed electrical contactorSelf employed

Mr Stephen Clarke Boorer DirectorDirector of Master Electrcians Australia LimitedDirector of ECA SafetyConnect Pty LtdLicensed electrician VictoriaDiploma of Electrics EngineeringIndustrial Electronics I, II & IIISpecial Class Electrician – VictoriaResigned as director on 30 August 2014

Mr Anthony Hamilton Arnold DirectorDirector of Master Electrcians Australia LimitedLicensed electrical contactorSelf employed

Mr Troy John Smith DirectorDirector of Master Electrcians Australia LimitedLicensed electrical contactorSelf employed

Mr Glenn Michael Eccles DirectorDirector of Master Electrcians Australia LimitedLicensed electrical contactorSelf employedResigned as a director on 13 July 2015

Mr Iain Milton Sibbald DirectorDirector of Master Electrcians Australia LimitedLicensed electrical contactorSelf employed

Mr Stephen Downey Director Director of Master Electricians Australia LimitedLicensed electrical contactorSelf employedAppointed as Director on 29 October 2014

Edward John Whitney McCoppin DirectorDirector of Master Electricians Australia LimitedLicensed electrical contactorSelf employedAppointed as Director on 27 July 2015

Erik Scholz DirectorDirector of Master Electricians Australia LimitedSelf employedAppointed as Director on 27 July 2015

The following persons were directors of the company at any time during or since the end of financial year and up to the date of this report:

Qualification, experience and other responsibilities

Your directors present their report on the general purpose financial statements of the company for the year ended 30 June 2015.

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Master Electricians Association LimitedACN 163 222 642

DIRECTORS REPORTFOR THE YEAR ENDED 30 JUNE 2015

Information on Directors

Name

Mr Richard Gerard Flanagan Appointed Chairman on 9 April 2013Director and Chairman of Master Electrcians Australia LimitedECA PresidentLicensed electrical contactorSelf employed

Mr Trevor Charles St Baker DirectorDirector of ECA SafetyConnect Pty LtdDirector of Master Electrcians Australia LimitedBEngBAFAusIMMFIEAustFAIEMAICDResigned as director on 25 July 2014

Mr James Edward Johnson DirectorDirector of Master Electrcians Australia LimitedMaster of Business – MarketingHarvard BS – Global Strategic Mgt

Mr Joshua Nicholls DirectorDirector of Master Electrcians Australia LimitedLicensed electrical contactorSelf employed

Mr Stephen Clarke Boorer DirectorDirector of Master Electrcians Australia LimitedDirector of ECA SafetyConnect Pty LtdLicensed electrician VictoriaDiploma of Electrics EngineeringIndustrial Electronics I, II & IIISpecial Class Electrician – VictoriaResigned as director on 30 August 2014

Mr Anthony Hamilton Arnold DirectorDirector of Master Electrcians Australia LimitedLicensed electrical contactorSelf employed

Mr Troy John Smith DirectorDirector of Master Electrcians Australia LimitedLicensed electrical contactorSelf employed

Mr Glenn Michael Eccles DirectorDirector of Master Electrcians Australia LimitedLicensed electrical contactorSelf employedResigned as a director on 13 July 2015

Mr Iain Milton Sibbald DirectorDirector of Master Electrcians Australia LimitedLicensed electrical contactorSelf employed

Mr Stephen Downey Director Director of Master Electricians Australia LimitedLicensed electrical contactorSelf employedAppointed as Director on 29 October 2014

Edward John Whitney McCoppin DirectorDirector of Master Electricians Australia LimitedLicensed electrical contactorSelf employedAppointed as Director on 27 July 2015

Erik Scholz DirectorDirector of Master Electricians Australia LimitedSelf employedAppointed as Director on 27 July 2015

The following persons were directors of the company at any time during or since the end of financial year and up to the date of this report:

Qualification, experience and other responsibilities

Your directors present their report on the general purpose financial statements of the company for the year ended 30 June 2015.

xPage 2


DIRECTORS’ REPORT


DIRECTORS REPORT (continued)FOR THE YEAR ENDED 30 JUNE 2015

Principal Activities

Overview of Company’s results2015 2014

$ $Profit before income tax 8,547 4,379 Income tax expense - - Profit after income tax 8,547 4,379

Objectives

The objective of the Company is to provide a high standard of membership services and improve the safety and efficiency of Master Electriciansbusinesses.

Strategies to achieve objectives

Progress on objectives

Key Performance Indicators

Company Secretary

Meetings of Directors

No. of No. ofmeetings attended

meetings while director

Director

6 60 14 64 60 15 65 6

Mr Glenn Michael Eccles 6 6Mr Iain Milton Sibbald 6 6Mr Stephen Downey 3 4

The principal activity of the company during the financial year was the provision of membership services.

Mr Trevor Charles St Baker Mr James Edward Johnson

During the year the company has been working with key suppliers to improve the provision of membership services through the implementation of key process improvements.

· Action taken to identify industry, including master electrician businesses and community needs in relation to safety and efficiency.· Action taken to source and develop innovative responses to member needs.· Establishment of collaborative arrangements with key industry, government and community stakeholders.

Outlined below are the strategies we have employed in order to achieve the above objectives:· Identify member needs in relation to safety and efficiency; and source and develop innovative responses to address these needs· Collaborate with key stakeholders in the Electrical and Communications industry and with Government to promote safety, efficiency and training through the facilitation and delivery of innovative programs, services and information dissemination to Master Electrician businesses, industry and the wider community

Mr Stephen Clarke BoorerMr Joshua Nicholls

Mr Troy John SmithMr Anthony Hamilton Arnold

Mr Malcolm Ross Richards was appointed to the position of company secretary on 9 April 2013.

The company’s board of directors held six meetings during the year ended 30 June 2015. The attendance by each director was as follows:

Mr Richard Gerard Flanagan

· Action taken to improve key membership service processes

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DIRECTORS’ REPORT

(CONTINUED)


DIRECTORS REPORT (continued)FOR THE YEAR ENDED 30 JUNE 2015

Members Guarantee

Significant changes in state of affairs

Events subsequent to balance date

Auditor’s Independence Declaration

The company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the company 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. At 30 June 2015, the total amount that members of the company are liable to contribute if the company is wound up is $2,550 (2014 - $2,990).

In the opinion of the directors, there were no significant changes in the state of affairs of the company during the financial year under review.

There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Company, to affect significantly the operations of the Company, the results of those operations, or the state of affairs of the Company, in future financial years.

The Auditor’s Independence Declaration for 30 June 2015 has been received and can be found on page 13.

This report is made in accordance with a resolution of the board of directors.

Brisbane, August 2015

Director

.....................................................

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STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME


STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEFOR THE YEAR ENDED 30 JUNE 2015

2015 2014$ $

Revenue 2 854,720 437,921 Agency fee - ECA (846,173) (433,542) Profit before income tax 8,547 4,379

Income tax expense 1.b - -

Profit after income tax 8,547 4,379

Other comprehensive income - -

Total Comprehensive Income for the year 8,547 4,379

The accompanying notes form part of these general purpose financial statements

Note

xPage 5


STATEMENT OF FINANCIAL POSITION


STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2015

Note 2014 2014$ $

CURRENT ASSETSPrepayments 131,170 94,101 Loans to related parties 4 14,430 5,464 TOTAL ASSETS 145,600 99,565

CURRENT LIABILITIESTrade and other payables 3 132,603 95,115 TOTAL LIABILITIES 132,603 95,115

NET ASSETS 12,997 4,450

EQUITYRetained earnings 12,997 4,450 TOTAL EQUITY 12,997 4,450


xPage 6


STATEMENT OF CHANGES IN EQUITY


STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2015

Retained Earnings

Total

$ $

Balance at 1 July 2013 71 71 Total comprehensive income for the year 4,379 4,379 Balance at 30 JUNE 2014 4,450 4,450

Balance at 1 July 2014 4,450 4,450 Total comprehensive income for the year 8,547 8,547 Balance at 30 JUNE 2015 12,997 12,997


xPage 7


STATEMENT OF CASH FLOWS


STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2015

Note 2015 2014$ $

CASH FROM OPERATING ACTIVITIESCash receipts from members 893,040 384,070 Cash paid to suppliers (893,040) (384,070) Net Cash Provided by Operating Activities 5 - -

CASH FLOWS FROM INVESTING ACTIVITIESNet Cash Used in Investing Activities - -

CASH FLOWS FROM FINANCING ACTIVITIESNet Cash Flows Provided by Financing Activities - -

Net increase in cash and cash equivalents - -

Cash and cash equivalents at the beginning of the year - -

Cash and cash equivalents at the end of the year - -


xPage 8


NOTES TO THE FINANCIAL STATEMENTS


NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2015

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Reporting basis and conventions

(b) Income tax

(c) Revenue

(d) Cash and cash equivalents

Deferred tax is accounted for using the liability method in respect of differences arising between the tax bases of assets and liabilities and their carrying amounts in the general purpose financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the statement of profit & loss and other comprehensive income except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.

Deferred income tax assets are recognised to the extent that it is probable that future taxable profits will be available against which deductible temporary differences can be claimed.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income tax legislation and the anticipation that the Company will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

The financial statements are presented in Australian dollars which is the company’s functional and presentational currency.

Member income is excluded under the principle of mutuality. Non member income of the Company is assessable for income tax.

New and or revised accounting standards issued between the previous financial year and the current reporting date and new accounting standards for application in future periods do not have a significant impact on the company.

The financial statements have been prepared on an accruals basis in accordance with the historical cost convention and do not take into account changing money values or, except where specifically stated current valuations of non current assets.

The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or non-allowable items. It is calculated using tax rates that have been enacted or are substantively enacted by the end of the reporting period.

These financial statements are general purpose financial statements that have been prepared in accordance with the Corporations Act 2001 and Australian Accounting Standards (including Australian Accounting Interpretations) to the extent that they apply to not-for-profit entities and other authoritative pronouncements of the Australian Accounting Standard Board.

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

Membership income is recognised over the period to which the membership relates. All revenue is stated net of the amount of goods and services tax (GST).

Cash and cash equivalents include cash on hand, deposits held at call with banks and other short term highly liquid investments with original maturities of three months or less.

xPage 9


NOTE TO THE FINANCIAL STATEMENTS



(e) Unearned income

(f) Trade payables

(g) Goods and Services Tax (GST)

(h) New, revised or amending Accounting Standards and Interpretations adopted

The adoption of these new and revised standards has no material impact to the company.

(i) New Accounting Standards for application in future periods

(j) Critical accounting estimates and judgements

2015 2014$ $

NOTE 2: REVENUE

Revenue from membership fees 854,720 437,921 854,720 437,921

NOTE 3: TRADE AND OTHER PAYABLES

Revenue received in advance 132,495 95,052 Other payables 108 63

132,603 95,115

There were no significant estimates or judgements used by the Board in the preparation of these financial statements.

The Board evaluates estimates and judgements incorporated into the financial statements 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 externally and within the Company.

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented in the statement of cash flow on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

Fees received in advance are deferred and matched against billings as services are performed.

Trade and other payables are stated and based at amortised cost, which approximates fair value due to the short term nature of these liabilities.

The following new and revised standards also became applicable to the association as from reporting periods beginning on or after 1 January 2014 – • AASB 10 Consolidated Financial Statements; • AASB 11 Joint Arrangements; • AASB 12 Disclosure of Interests in Other Entities; • AASB 127 (revised) Separate Financial Statements; • AASB 128 (revised) Investments in Associates and Joint Ventures • AASB 2011 -7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards [AASB 1, 2, 3, 5, 7, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139,1023 & 1038 and Interpretations 5, 9, 16 & 17].

The AASB has issued new and amended accounting standards and interpretations that have mandatory application dates for future reporting periods and which the company has decided not to early adopt. At the date of authorisation of the financial report, the new or amended Australian Accounting Standards with future commencement dates are either not applicable to the company's activities, or have no material impact on the company.

xPage 10





2015 2014$ $

NOTE 4: LOAN TO RELATED PARTY

Loan to Electrical and Communications Association 14,430 5,464 14,430 5,464

The loans to related parties are unsecured, interest free with no fixed repayment terms.

NOTE 5: CASH FLOW INFORMATION

Reconciliation of Cash Flow from Operations with Profit after Income Tax

Net profit after income tax 8,547 4,379

(37,069) (54,423) (Increase)/decrease in loans to related parties (8,966) (4,945)

37,488 54,989 Net cash flow from operations - -

NOTE 6: AUDITORS' REMUNERATION

Remuneration of the auditors for:- Auditing the financial statements 4,500 4,500

NOTE 7: EVENTS AFTER THE END OF THE REPORTING PERIOD

There have been no significant events which have occurred subsequent to the end of the reporting period.

NOTE 8: CONTINGENT LIABILITIES AND CONTINGENT ASSETS

NOTE 9: MEMBERS GUARANTEE

NOTE 10: COMPANY DETAILS

The registered office and principal place of business of the Company is:Master Electricians Association Limited57 Berwick StreetFortitude Valley Queensland 4006

The company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the company is wound up, the constitution states that each Accredited Member is required to contribute a maximum of $10 each towards meeting any outstanding obligations of the entity. At 30 June 2015, the total amount that members of the company are liable to contribute if the company is wound up is $2,550 (2014 - $2,990).

Increase/(decrease) in payables

Changes in assets and liabilities:(Increase)/decrease in prepayments

The company has provided an unlimited guarantee to the lenders of the parent entity (Electrical and Communications Association,Queensland Industrial Organisation of Employers). The parent entity had a borrowing facility of $6.12 million as at 30 June 2015 (2014 - $6.45 million). No material liability is expected to arise from this guarantee.

xPage 11


DIRECTORS’ DECLARATION


DIRECTORS' DECLARATIONFOR THE YEAR ENDED 30 JUNE 2015

The directors of the company declare that:

1. The financial statements and notes set out on pages 5 to 11 are in accordance with the Corporations Act 2001 :

(a) comply with Accounting Standards and the Corporations Regulations 2001 ; and

This declaration is made in accordance with a resolution of the directors.:

(b) give a true and fair view of the Company’s financial position as at 30 June 2015 and of its performance, as represented by the results of its operations and its cash flows, for the year ended on that date.

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

.....................................................

Director

Brisbane, August 2015

xPage 12


AUDITOR’S INDEPENDENCE DECLARATION


INDEPENDENT AUDITOR’S REPORT


INDEPENDENT AUDITOR’S REPORT

(CONTINUED)


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23ECA Annual Report 2014–2015

ELECTRICAL AND COMMUNICATIONS ASSOCIATION

ANNUAL REPORT2014-2015

24 ECA Annual Report 2014–2015

STATEMENT OF PROFIT OR LOSS

Electrical and Communications AssociationQueensland Industrial Organisation of EmployersIncorporated under the Industrial Relations Act 1999 ABN 40 669 256 171

STATEMENTS OF PROFIT OR LOSSFOR THE YEAR ENDED 30 JUNE 2015

2015 2014 2015 2014$ $ $ $

Sales revenue 2 4,079,996 4,938,830 3,221,282 4,074,772 Cost of sales (3,410,829) (4,214,018) (2,936,465) (3,818,994) Gross Surplus 669,167 724,812 284,817 255,778

Other income 3 9,004,712 11,198,256 9,410,507 11,434,013 Employee costs (5,955,606) (6,784,491) (5,954,741) (6,784,491) Depreciation and amortisation (297,242) (702,674) (344,742) (750,174) Finance cost (421,873) (512,916) (421,873) (512,916) Other expense (2,875,407) (3,636,242) (2,845,014) (3,247,080) Operating Result 123,751 286,745 128,954 395,130

Impairment of loans to group companies - - (52,705) 794,117

Profit before income tax 123,751 286,745 76,249 1,189,247

Income tax 11.a - - - -

Profit for the year after income tax 123,751 286,745 76,249 1,189,247

The accompanying notes form part of these financial statements

Note

Consolidated Parent

xPage 2


STATEMENTS OF COMPREHENSIVE INCOME


STATEMENTS OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 30 JUNE 2015

2015 2014 2015 2014$ $ $ $

Profit for the year 123,751 286,745 76,249 1,189,247

Other comprehensive income - - - -

Total other comprehensive income for the year - - - -

Total comprehensive income for the year 123,751 286,745 76,249 1,189,247


Consolidated Parent

xPage 3


STATEMENT OF FINANCIAL POSITION


STATEMENTS OF FINANCIAL POSITIONAS AT 30 JUNE 2015

2015 2014 2015 2014$ $ $ $

ASSETSCurrent assetsCash and cash equivalents 5 2,877,798 2,800,612 1,356,284 1,169,189 Trade and other receivables 6.a 1,120,071 995,147 876,058 662,154 Total current assets 3,997,869 3,795,759 2,232,342 1,831,343

Non-current assetsProperty, plant and equipment 7 8,078,507 8,370,619 8,078,507 8,370,619 Intangibles 8 139,168 123,281 994,168 1,025,781 Investments 14 - - 1 1 Loans to group companies 6.b - - 1,673,824 1,756,207 Total non-current assets 8,217,675 8,493,900 10,746,500 11,152,608 TOTAL ASSETS 12,215,544 12,289,659 12,978,842 12,983,951

LIABILITIESCurrent liabilitiesTrade and other payables 9 2,909,262 2,638,559 2,817,561 2,430,350 Financial liabilities 10.a 298,721 587,016 298,721 587,016 Provision for employee entitlements 395,586 385,551 395,586 385,551 Total current liabilities 3,603,569 3,611,126 3,511,868 3,402,917

Non-current liabilitiesFinancial liabilities 10.b 5,734,824 5,959,712 5,734,824 5,959,712 Provision for employee entitlements 128,736 94,157 128,736 94,157 Total non-current liabilities 5,863,560 6,053,869 5,863,560 6,053,869 TOTAL LIABILITIES 9,467,129 9,664,995 9,375,428 9,456,786

NET ASSETS 2,748,415 2,624,664 3,603,414 3,527,165

EQUITYReserves 2,789,429 2,789,429 2,789,429 2,789,429 Retained earnings (41,014) (164,765) 813,985 737,736 TOTAL EQUITY 2,748,415 2,624,664 3,603,414 3,527,165


Parent

Note

Consolidated

xPage 4


STATEMENT OF CHANGE IN EQUITY


STATEMENTS OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2015

PARENT: Retained Earnings

Asset Revaluation

Reserve

Total

$ $ $

Balance at 1 July 2013 (451,511) 2,789,429 2,337,918 Profit for the year 1,189,247 - 1,189,247 Other comprehensive income - - - Balance at 30 June 2014 737,736 2,789,429 3,527,165

Balance at 1 July 2014 737,736 2,789,429 3,527,165 Profit for the year 76,249 - 76,249 Other comprehensive income - - - Balance at 30 June 2015 813,985 2,789,429 3,603,414

CONSOLIDATED: Retained Earnings

Asset Revaluation

Reserve

Total

$ $ $

Balance at 1 July 2013 (451,511) 2,789,429 2,337,919 Profit for the year 286,745 - 286,745 Other comprehensive income - - - Balance at 30 June 2014 (164,765) 2,789,429 2,624,664

Balance at 1 July 2014 (164,765) 2,789,429 2,624,664 Profit for the year 123,751 - 123,751 Other comprehensive income - - - Balance at 30 June 2015 (41,014) 2,789,429 2,748,415


xPage 5


STATEMENT OF CASH FLOWS


STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2015

2015 2014 2015 2014$ $ $ $

CASH FROM OPERATING ACTIVITIESCash receipts from customers and members 14,181,110 18,762,910 13,795,651 16,149,829 Cash paid to suppliers and employees (13,175,983) (16,805,207) (12,647,350) (15,612,205)

1,005,127 1,957,703 1,148,301 537,624 Interest received 47,801 66,792 14,536 27,282 Interest paid (421,873) (512,916) (421,873) (512,916) Net Cash Provided by/(Used in) Operating Activities 12 631,055 1,511,579 740,964 51,990

CASH FLOWS FROM INVESTING ACTIVITIESProceeds from disposal of furniture and equipment 427 - 427 - Proceeds from disposal of motor vehicles 20,909 165,159 20,909 165,159 Purchase of furniture and equipment (10,846) (86,736) (10,846) (86,736) Purchase of motor vehicles - (66,569) - (66,569) Purchase of intangibles (51,176) (124,347) (51,176) (124,347) Net Cash Used in Investing Activities (40,686) (112,493) (40,686) (112,493)

CASH FLOWS FROM FINANCING ACTIVITIESRepayment of borrowings (513,183) (629,546) (513,183) (629,546) Net Cash Flows Used in Financing Activities (513,183) (629,546) (513,183) (629,546)

Net increase/(decrease) in cash and cash equivalents 77,186 769,540 187,095 (690,049)

Cash and cash equivalents at the beginning of the year 2,800,612 2,031,072 1,169,189 1,859,238

Cash and cash equivalents at the end of the year 5 2,877,798 2,800,612 1,356,284 1,169,189


ParentConsolidated

Note

xPage 6





NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Reporting basis and conventions

(b) Income tax

(c) Revenue

(d) Cash and cash equivalents

The financial statements have also been prepared on a going concern basis. The consolidated entity is reliant on the continued support of its bankers. Current financing arrangements mature on 31 December 2016. The ability of the consolidated entity to pay its debts as and when they fall due is dependant on adherence to the terms and conditions of the finance facility.

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within financial liabilities in current liabilities in the consolidated statement of financial position.

The financial statements cover Electrical and Communications Association Queensland Industrial Organisation of Employers as an individual entity (parent entity or the association) and Electrical and Communications Association Queensland Industrial Organisation of Employers and its controlled entities (consolidated entity). Electrical and Communications Association Queensland Industrial Organisation of Employers is an association incorporated in Queensland under the Industrial Relations Act 1999.

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

The financial statements have been prepared on an accrual basis and are based on historical costs modified by the revaluation of selected non‑current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.

The Association is exempt from income tax in accordance with the provisions of Section 50 of the Income Tax Assessment Act 1997, accordingly no tax liability is recognised for the parent entity. The controlled entities are subject to income tax.

Revenue from the sale of goods is recognised upon the delivery of goods to customers.

The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or non-allowable items. It is calculated using tax rates that have been enacted or are substantively enacted by the end of the reporting period.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss.

Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred tax is credited in the statement of profit or loss except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.

Deferred income tax assets are recognised to the extent that it is probable that future taxable profits will be available against which deductible temporary differences can be claimed.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income tax legislation and the anticipation that the controlled entities will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

Interest income is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.Revenue from the rendering of membership services is recognised upon the delivery of the service to the members.All revenue is stated net of the amount of goods and services tax (GST).

These financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations to the extent that they apply to not-for-profit entities, other authoritative pronouncements of the Australian Accounting Standards Board and the requirements of the Industrial Relations Act 1999 of Queensland.

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NOTE TO THE FINANCIAL STATEMENTSElectrical and Communications AssociationQueensland Industrial Organisation of EmployersIncorporated under the Industrial Relations Act 1999 ABN 40 669 256 171


NOTE 1: ACCOUNTING POLICIES (continued)

(e) Unearned income

(f) Property, plant and equipment

Property

Plant and equipment

Depreciation

Class of fixed asset

Buildings 2.50% Prime CostFurniture, Fixtures and Fittings 7.5% to 33% Prime CostIT and Office Equipment 6.5% to 33% Prime CostMotor Vehicles 20% Prime Cost

(g) Employee benefits

Other long-term employee benefits

Defined contribution superannuation expenseContributions to defined contribution superannuation plans are expensed in the period in which they are incurred.

(h) Provisions

(i) Borrowing costs

Fees received in advance are deferred and matched against expenses as services are performed.

Provisions are recognised when the consolidated entity has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

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

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

The depreciable amount of all fixed assets excluding capitalised leased assets, are depreciated on a straight line basis over their useful lives commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The depreciation rates used for each class of depreciable assets are:

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Short-term employee benefits

Customer deposits consist of payments received in advance from customers, deposits on credit sales for undelivered services and membership fees and cash collections on sales of undelivered merchandise.

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses.

Freehold land and buildings are shown at their fair value (being the amount for which an asset could be exchanged between knowledgeable willing parties in an arm's length transaction), based on periodic, valuations by external independent valuers, less subsequent depreciation for buildings.

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled within 12 months of the reporting date are recognised in current liabilities in respect of employees' service up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.

The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are recognised in non-current liabilities, provided there is an unconditional right to defer settlement of the liability. The liability is measured as the present value of the expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and period of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

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(e) Unearned income


Property

Plant and equipment

Depreciation






(h) Provisions

(i) Borrowing costs















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(e) Unearned income


Property

Plant and equipment

Depreciation






(h) Provisions

(i) Borrowing costs















xPage 8


NOTE TO THE FINANCIAL STATEMENTSElectrical and Communications AssociationQueensland Industrial Organisation of EmployersIncorporated under the Industrial Relations Act 1999 ABN 40 669 256 171



(j) Leases

(k) Trade Payables

(l) Fair value measurement

(m) Grants

(n) Goods and Services Tax (GST)

(o) Impairment

(p) Principles of consolidation

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the Australian Taxation Office. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from or payable to, the Australian Taxation Office is included with other receivables or payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the Australian Taxation Office, are presented as operating cash flows.

At the end of each reporting period, the consolidated entity 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. Any excess of the asset’s carrying value over its recoverable amount is expensed to the statement of profit or loss.

Where it is not possible to estimate the recoverable amount of an individual asset, the consolidated entity estimates the recoverable amount of the cash-generating unit to which the asset belongs.

When grant revenue is received whereby the entity incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statements of financial position, with a corresponding amount of income recognised in the statement or profit or loss.

If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until those conditions are satisfied.

Leases are classified as finance or operating leases. A lease that transfers substantially all of the benefits and risks incidental to the ownership of property is classified as a finance lease. At the inception of a finance lease, an asset and an obligation are recorded at an amount equal to the lesser of the present value of the minimum lease payments and the property's fair value at the beginning of the lease. Assets recorded under finance leases are amortised on a diminishing value basis over the term of the lease that is the estimated useful lives of the assets. All other leases are accounted for as operating leases wherein rental expenses are recognised on a straight line basis.

Trade and other payables are stated at amortised cost, which approximates fair value due to the short term nature of these liabilities.

Non-reciprocal grant revenue is recognised in profit or loss when the entity obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the entity and the amount of the grant can be measured reliably.

All assets and liabilities of the association for which fair value is measured or disclosed in the financial statements are categorised within the following fair value hierarchy, based on the data and assumptions used in the most recent specific appraisals:

* Level 1 – represents fair value measurements that reflect unadjusted quoted market prices in active markets for identical assets and liabilities;

* Level 2 – represents fair value measurements that are substantially derived from inputs (other than quoted prices included within level 1) that are observable, either directly or indirectly; and

* Level 3 – represents fair value measurements that are substantially derived from unobservable inputs.

None of the association’s valuations of assets or liabilities are eligible for categorisation into level 1 of the fair value hierarchy. There were no transfers of assets between fair value hierarchy levels during the year.

A controlled entity is an entity that the parent entity has the power to control the financial and operating policies of an entity so as to obtain benefits from its activities. A list of controlled entities is contained in Note 14 to the financial statements. All controlled entities have a 30 June financial year‑end.

All inter‑company balances and transactions between entities in the consolidated entity, including any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of controlled entities are consistent with those policies applied by the parent entity.

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(j) Leases

(k) Trade Payables

(l) Fair value measurement

(m) Grants

(n) Goods and Services Tax (GST)

(o) Impairment

(p) Principles of consolidation

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the Australian Taxation Office. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from or payable to, the Australian Taxation Office is included with other receivables or payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the Australian Taxation Office, are presented as operating cash flows.

At the end of each reporting period, the consolidated entity 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. Any excess of the asset’s carrying value over its recoverable amount is expensed to the statement of profit or loss.

Where it is not possible to estimate the recoverable amount of an individual asset, the consolidated entity estimates the recoverable amount of the cash-generating unit to which the asset belongs.

When grant revenue is received whereby the entity incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statements of financial position, with a corresponding amount of income recognised in the statement or profit or loss.

If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until those conditions are satisfied.

Leases are classified as finance or operating leases. A lease that transfers substantially all of the benefits and risks incidental to the ownership of property is classified as a finance lease. At the inception of a finance lease, an asset and an obligation are recorded at an amount equal to the lesser of the present value of the minimum lease payments and the property's fair value at the beginning of the lease. Assets recorded under finance leases are amortised on a diminishing value basis over the term of the lease that is the estimated useful lives of the assets. All other leases are accounted for as operating leases wherein rental expenses are recognised on a straight line basis.

Trade and other payables are stated at amortised cost, which approximates fair value due to the short term nature of these liabilities.

Non-reciprocal grant revenue is recognised in profit or loss when the entity obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the entity and the amount of the grant can be measured reliably.

All assets and liabilities of the association for which fair value is measured or disclosed in the financial statements are categorised within the following fair value hierarchy, based on the data and assumptions used in the most recent specific appraisals:

* Level 1 – represents fair value measurements that reflect unadjusted quoted market prices in active markets for identical assets and liabilities;

* Level 2 – represents fair value measurements that are substantially derived from inputs (other than quoted prices included within level 1) that are observable, either directly or indirectly; and

* Level 3 – represents fair value measurements that are substantially derived from unobservable inputs.

None of the association’s valuations of assets or liabilities are eligible for categorisation into level 1 of the fair value hierarchy. There were no transfers of assets between fair value hierarchy levels during the year.

A controlled entity is an entity that the parent entity has the power to control the financial and operating policies of an entity so as to obtain benefits from its activities. A list of controlled entities is contained in Note 14 to the financial statements. All controlled entities have a 30 June financial year‑end.

All inter‑company balances and transactions between entities in the consolidated entity, including any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of controlled entities are consistent with those policies applied by the parent entity.

xPage 9






(q) New, revised or amending Accounting Standards and Interpretations adopted

(r) New Accounting Standards for application in future periods

(s) Critical accounting estimates and judgements

• AASB 10 Consolidated Financial Statements;• AASB 11 Joint Arrangements;• AASB 12 Disclosure of Interests in Other Entities;• AASB 127 (revised) Separate Financial Statements;• AASB 128 (revised) Investments in Associates and Joint Ventures• AASB 2011 -7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards [AASB 1, 2, 3, 5, 7, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139,1023 & 1038 and Interpretations 5, 9, 16 & 17].

Of these new/revised standards, the most significant potential impacts would arise from AASB 10 and AASB 11.

AASB 10 redefines and clarifies the concept of control of another entity, and is the basis for determining which entities should be consolidated into an entity's financial statements. The association has reviewed the nature of its relationship with all entities that the association is connected with, including entities that are not currently consolidated, to determine the impact of AASB 10. The association's conclusion is that it will continue to have control over all subsidiaries listed and, based on existing circumstances, will not have any control over any additional entities. On that basis, AASB 10 itself has no substantive impact on the association's financial statements. However, the new AASB 12 requires a range of particular details to be disclosed in respect of controlled entities, so note 14 Investments in controlled entities now contains further information that is relevant to the association’s controlled entities and the association’s relationship with those controlled entities. The association will continue to review its relationships with other entities from year to year to identify any further application of AASB 10's principles.

AASB 11 deals with the concept of joint control and sets out new principles for determining the type of joint arrangement that exists, which in turn dictates the accounting treatment. The new categories of joint arrangements under AASB 11 are more aligned to the actual rights and obligations of the parties to the arrangement. The association has assessed its arrangements with other entities to determine whether a joint arrangement exists in terms of AASB 11. Based on present arrangements, no joint arrangements exist. However, the association will continue to review its relationships with other entities from year to year to identify any need to apply AASB 11’s principles.

There were no significant estimates or judgements used by the Council in the preparation of these financial statements.

The following new and revised standards became applicable to the association as from reporting periods beginning on or after 1 January 2014:

The AASB has issued new and amended accounting standards and interpretations that have mandatory application dates for future reporting periods and which the entity has decided not to early adopt. At the date of authorisation of the financial report, the new or amended Australian Accounting Standards with future commencement dates are either not applicable to the association activities, or have no material impact on the association.

The Council evaluates estimates and judgements incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events that may have a financial impact on the entity and are based on current trends and economic data, obtained externally and within the Association.

xPage 10





2015 2014 2015 2014$ $ $ $

NOTE 2: SALES REVENUE - Insurance comissions 505,817 597,687 505,817 597,687 - Magazine sales 239,059 322,982 249,059 322,982 - Training 1,307,759 2,142,666 1,307,759 2,142,666 - Apprentice connect 26,582 192,507 26,582 102,717 - Events 13,891 10,699 13,891 10,699 - Sundry 269,491 464,479 269,491 464,479 - Project income 871,224 774,268 2,510 - - Agency fee - Master Electricians Association Limited 846,173 433,542 846,173 433,542 Total Sales Revenue 4,079,996 4,938,830 3,221,282 4,074,772

NOTE 3: OTHER INCOMEAdministration and management fees - - 807,706 2,621,799 Rental Income 415,843 405,439 415,843 405,438 Grants received 708,415 2,756,075 339,769 409,545 Interest received 47,801 66,792 14,536 27,282 Sponsorship Income 1,045,328 643,769 1,045,328 643,769 Revenue from membership fees 6,787,325 7,326,181 6,787,325 7,326,180 Total Other Income 9,004,712 11,198,256 9,410,507 11,434,013

NOTE 4: REMUNERATION OF AUDITORS

Audit of financial statements 44,319 39,850 44,319 31,350 Prior year under accrual 1,571 11,000 1,571 11,000

45,890 50,850 45,890 42,350

NOTE 5: CASH AND CASH EQUIVALENTSCurrent assets:Cash on hand 773 931 773 932 Cash at bank 2,877,025 2,799,681 1,355,511 1,168,257

2,877,798 2,800,612 1,356,284 1,169,189

NOTE 6: TRADE AND OTHER RECEIVABLESa. Current:Trade receivables 746,876 627,344 719,999 356,814 Provision for impairment of receivables (289,555) (105,568) (289,555) (105,568)

457,321 521,776 430,444 251,246 Prepayments 445,308 339,449 445,304 339,449 Other receivables 217,442 133,922 310 71,459

1,120,071 995,147 876,058 662,154 b. Non current:Loans to group companies - - 2,312,910 2,342,588 Provision for impairment - - (639,086) (586,381)

- - 1,673,824 1,756,207

The loans to group companies are unsecured, interest free and have no fixed repayment terms.

Consolidated Parent

During the year the following fees were paid or payable for services provided by the auditor of the parent entity and its controlled entities:

xPage 11





2015 2014 2015 2014$ $ $ $

LAND AND BUILDINGSFreehold land at independent valuation (level 2)* 3,920,000 3,920,000 3,920,000 3,920,000 Total freehold land 3,920,000 3,920,000 3,920,000 3,920,000

Buildings at independent valuation (level 2)* 4,030,000 4,030,000 4,030,000 4,030,000 Less accumulated depreciation (302,250) (201,500) (302,250) (201,500) Total buildings 3,727,750 3,828,500 3,727,750 3,828,500

Total land and buildings 7,647,750 7,748,500 7,647,750 7,748,500

PLANT AND EQUIPMENTFurniture, fixtures and fittings at cost 493,192 545,842 493,192 545,842 Less accumulated depreciation (240,142) (238,101) (240,142) (238,101) Total furniture, fixture and fittings 253,050 307,741 253,050 307,741

Computer equipment at cost 180,083 308,893 180,083 308,893 Less accumulated depreciation (157,849) (258,882) (157,849) (258,882) Total computer equipment 22,234 50,011 22,234 50,011

Office equipment at cost 133,021 204,563 133,021 204,563 Less accumulated depreciation (125,298) (186,325) (125,298) (186,325) Total office equipments 7,723 18,238 7,723 18,238

Motor vehicles at cost 332,062 384,825 332,062 384,825 Less accumulated depreciation (184,312) (138,696) (184,312) (138,696) Total motor vehicles 147,750 246,129 147,750 246,129

Total plant and equipment 430,757 622,119 430,757 622,119 8,078,507 8,370,619 8,078,507 8,370,619

Consolidated Parent

NOTE 7: PROPERTY, PLANT AND EQUIPMENT

Total property, plant and equipment

*The freehold land and buildings were revalued on 30 June 2012 at market value by an independent valuer using level 2 fair value input, which is based on market observables.

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NOTE 7: PROPERTY, PLANT AND EQUIPMENT (continued)

Movements in carrying amounts

PARENT: 2014 Land Buildings

Furniture, Fixtures and

Fittings Computer Equipment

Office Equipment Motor Vehicles Total

$ $ $ $ $ $ $ Balance at the beginning of year 3,920,000 3,929,250 314,543 74,645 26,774 551,768 8,816,980 Additions - - 45,414 35,992 5,330 66,569 153,305 Disposals - - - - - (243,184) (243,184) Depreciation expense - (100,750) (52,216) (60,626) (13,866) (129,024) (356,482) Revaluation loss - - - - - - - Carrying Amount at End of Year 3,920,000 3,828,500 307,741 50,011 18,238 246,129 8,370,619

PARENT: 2015 Land Buildings




$ $ $ $ $ $ $ Balance at the beginning of year 3,920,000 3,828,500 307,741 50,011 18,238 246,129 8,370,619 Additions - - 4,611 6,236 - - 10,847 Disposals - - (7,365) (2,008) (4,248) (26,808) (40,429) Depreciation expense - (100,750) (51,937) (32,005) (6,267) (71,571) (262,530) Revaluation loss - - - - - - - Carrying Amount at End of Year 3,920,000 3,727,750 253,050 22,234 7,723 147,750 8,078,507

CONSOLIDATED: 2014 Land Buildings




$ $ $ $ $ $ $ Balance at the beginning of year 3,920,000 3,929,250 314,543 74,645 26,774 551,768 8,816,980 Additions - - 45,414 35,992 5,330 66,569 153,305 Disposals - - - - - (243,184) (243,184) Depreciation expense - (100,750) (52,216) (60,626) (13,866) (129,024) (356,482) Revaluation loss - - - - - - - Carrying Amount at End of Year 3,920,000 3,828,500 307,741 50,011 18,238 246,129 8,370,619

CONSOLIDATED: 2015 Land Buildings




$ $ $ $ $ $ $ Balance at the beginning of year 3,920,000 3,828,500 307,741 50,011 18,238 246,129 8,370,619 Additions - - 4,611 6,236 - - 10,847 Disposals - - (7,365) (2,008) (4,248) (26,808) (40,429) Depreciation expense - (100,750) (51,937) (32,005) (6,267) (71,571) (262,530) Revaluation loss - - - - - - - Carrying Amount at End of Year 3,920,000 3,727,750 253,050 22,234 7,723 147,750 8,078,507

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2015 2014 2015 2014$ $ $ $

NOTE 8: INTANGIBLES

Computer software at cost 179,010 677,526 179,010 677,526 Less accumulated amortisation (39,842) (554,245) (39,842) (554,245)Brands and trademarks - - 950,000 950,000 Less accumulated amortisation - - (95,000) (47,500)Total intangibles 139,168 123,281 994,168 1,025,781

Movements in Carrying Amounts

Balance at the beginning of year 123,281 345,126 1,025,781 1,295,126 Additions 51,176 124,347 51,176 124,347 Disposals (577) - (577) Depreciation Expense (IT Software) (34,712) (346,192) (34,712) (346,192) Amortisation expense (Brands and Trademarks) - - (47,500) (47,500) Revaluation loss - - - - Carrying amount at end of year 139,168 123,281 994,168 1,025,781

NOTE 9: TRADE AND OTHER PAYABLESUnsecured liabilitiesTrade payables 411,406 38,367 411,406 38,367 Amounts received in advance 1,744,412 1,732,873 1,660,510 1,524,665 Other payables 753,444 867,319 745,645 867,318

2,909,262 2,638,559 2,817,561 2,430,350

NOTE 10: FINANCIAL LIABILITIESa. Current:Secured liabilitiesHire purchase 166,154 179,133 166,154 179,133 Commercial loan 73,234 71,283 73,234 71,283 Bank Loans 59,333 336,600 59,333 336,600 Total current financial liabilities 298,721 587,016 298,721 587,016

b. Non-Current:Secured liabilitiesHire purchase 134,824 300,979 134,824 300,979 Bank loans 5,600,000 5,658,733 5,600,000 5,658,733 Total non-current financial liabilities 5,734,824 5,959,712 5,734,824 5,959,712

ParentConsolidated

The bank loans are secured by an unlimited guarantee by Master Electricians Australia Limited and Sneca Pty Ltd, a first registered mortgage over all land and buildings owned by the parent entity and a Business mortgage over all assets located at 57 Berwick Street and a blocked cash deposit of $618,000. Hire purchase loans are secured by the related plant and equipment included in Note 7. The bank facilities are subject to an annual review by the lenders.

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2015 2014 2015 2014$ $ $ $

NOTE 11: TAXES

Profit before income tax 123,751 286,745 76,249 1,189,247

Prima facie income tax expense @ 30% 37,125 86,024 22,875 356,774 Non assessable income (52,937) (110,356) (22,875) (356,774) Tax losses not brought to account 15,812 24,332 - - Deferred tax liabilities derecognised - - - - Income tax expense (benefit) - - - -

Tax losses available to the group but not recognised as deferred tax assets:

Master Electricians Australia Ltd 855,840 648,466 - - ECA SafetyConnect Pty Ltd - - - - ME Contractors Pty Ltd - - - -

855,840 648,466 - - Tax benefit @ 30% 256,752 194,540 - -

Consolidated Parent

(a) Reconciliation of income tax expense to prima facie tax payable

(b) Tax losses

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2015 2014 2015 2014$ $ $ $

NOTE 12: CASH FLOW INFORMATION

a) Reconciliation of Cash Flow from Operations with Profit after Income Tax

Net profit for the period 123,751 286,745 76,249 1,189,247

Non-cash flow items:Depreciation and amortisation 297,242 702,674 344,742 750,174 Loss/(profit) on disposal of fixed assets 19,668 78,025 19,668 78,025

(124,923) 3,280,149 (213,904) 940,597 - - 82,383 (1,756,207)

Increase/(decrease) in deferred tax liabilities - - - - 270,703 (2,848,897) 387,212 (1,162,729) 44,614 12,883 44,614 12,883

Net cash flow from operations 631,055 1,511,579 740,964 51,990

b) Credit Standby Arrangements with BanksCredit facility 450,000 450,000 450,000 450,000 Amount utilised (10,830) (17,847) (10,830) (17,847)

439,170 432,153 439,170 432,153

c) Loan FacilitiesCredit facility 5,673,234 5,995,333 5,673,234 5,995,333 Amount utilised (5,673,234) (5,995,333) (5,673,234) (5,995,333)

- - - -

NOTE 13: CAPITAL AND LEASING COMMITMENTS

(a) Operating lease commitments

Lease - minimum lease payments - not later than 12 months 140,002 179,779 140,002 143,857 - between 12 months and five years 143,420 190,979 143,420 190,979 - greater than five years - - - -

283,422 370,758 283,422 334,836

(b) Hire purchase lease commitments

Lease - minimum lease payments - not later than 12 months 166,154 179,133 166,154 179,133 - between 12 months and five years 134,824 300,979 134,824 300,979 - greater than five years - - - - Minimum lease payments 300,978 480,112 300,978 480,112

(c) Capital commitments

Capital - minimum capital commitments- not later than 12 months 50,000 - 50,000 - - between 12 months and five years - - - - - greater than five years - - - - Minimum Capital commitments 50,000 - 50,000 -

Increase/(decrease) in payables

Consolidated Parent

Non-cancellable hire purchase leases contracted for and capitalised in the financial statements are payable as follows:

Non-cancellable operating leases contracted for but not capitalised in the financial statements are payable as follows:

Increase/(decrease) in provisions

Changes in assets and liabilities:(Increase)/decrease in receivables(Increase)/decrease in loans to group companies

Non-cancellable captial commitments contracted for but not capitalised in the financial statements are payable as follows:

xPage 16





Country of % $ % $

Owned Owned

Australia 100% 1 100% 1Australia 100% - 100% -

Master Electricians Australia Limited* Australia - - - -Australia - - - -Australia - - - -

1 1

* Controlled by virtue of common management and as a sole member of the company limited by guarantee.** Sneca Pty Ltd is a wholly owned entity of ME Contractors Pty Ltd*** Controlled by being a sole shareholder of the company.

(a) Balances in controlled entities

(a) Transactions and balances with controlled entities

2015 2014 2015 2014$ $ $ $

Transaction with controlled entities:- Administration and management fees

Master Electricians Australia Limited - - 807,706 2,621,799 - - 807,706 2,621,799

- Waiver of inter-company debts - - - 1,667,922 ME Contractors Pty Ltd - - - 1,340,969 Sneca Pty Ltd (formerly ECA SafetyConnect Pty Ltd) - - - 3,008,891

Balances with controlled entitiesMaster Electricians Australia Limited - - 2,312,533 2,342,038 Energy Management Institute Limited - - 377 550

- - 2,312,910 2,342,588

NOTE 15: EVENTS OCCURING AFTER THE REPORTING PERIOD

NOTE 16: CONTINGENT LIABILITIES AND CONTINGENT ASSETS

-

ME Contractors Pty Ltd 1 1 - - - 1,667,922 - 1,667,922

Sneca Pty Ltd 1 1 - - - 1,340,969 - 1,340,969

Project Safety Switch Limited*

-

ME Contractors Pty Ltd ***Sneca Pty Ltd **

Energy Management Institute Limited*

NOTE 14: CONTROLLED ENTITIES

Name

The members of council are not aware of any significant contingent liabilities at the date of this report.

There have been no significant events which have occurred subsequent to the end of the reporting period.

2015 2014

Total AssetsName of Directly Controlled Entity

Total Liabilities Total Revenue Operating Result2015

$2014

$2015

$2014

$2015

$2014

$2015

$2014

$

Master Electricians Australia Limited

1,765,527 1,964,243 2,404,235 2,550,247 1,270,623 3,250,098 (52,704) (155,884)

Energy Management Institute Limited

- 173 377

- - - - -

Consolidated Parent

-

550 - - - -

Project Safety Switch Limited

xPage 17





NOTE 17: ASSOCIATION DETAILS

The registered office of the Association is:Electrical and Communications Association Queensland Industrial Organisation of Employers57 Berwick StreetFortitude Valley BC Queensland 4006

NOTE 18: FINANCIAL INSTRUMENTS

a. Financial Risk Management

The main purpose of non-derivative financial instruments is to raise finance for operations.

Treasury Risk Management

Financial Risks

The main risks the Association is exposed to through its financial instruments are interest rate risk, liquidity risk and credit risk.

Interest rate risk

Foreign exchange risk

Liquidity risk

Credit risk

Price risk

The Association is not exposed to any material commodity price risk.

The consolidated entity does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into by the Association.

The Association manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are maintained.

Interest rate risk is managed with a mixture of fixed and floating rate debt. At 30 June 2015 approximately 99% of the Association’s debt is fixed.

The Association is exposed to a foreign exchange risk arising from currency exposure with respect to the Japanese Yen. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the entity's functional currency.

The Association’s financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payable, bills and leases.

The Management Committee meets on a regular basis to analyse currency and interest rate exposure and to evaluate treasury management strategies in the context of the most recent economic conditions and forecasts.

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements.

xPage 18





NOTE 18: FINANCIAL INSTRUMENTS (Continued)

b. Interest Rate Risk

2015 2014 2015 2014 2015 2014 2015 2014% % $ $ $ $ $ $

CONSOLIDATED

Financial AssetsCash on hand 0.0% 0.0% 773 931 - - - - Cash at bank 1.9% 2.3% 2,877,025 2,799,681 - - - - Total Financial Assets 2,877,798 2,800,612 - - - -

Financial liabilitiesHire purchase 8.5% 8.4% - - 166,154 179,133 134,824 300,979 Commercial loan 8.6% 8.6% - - 59,333 71,283 - - Commercial bill 6.7% 6.7% - - 73,234 336,600 5,600,000 5,658,733 Total Financial Liabilities - - 298,721 587,016 5,734,824 5,959,712

2015 2014 2015 2014 2015 2014 2015 2014% % $ $ $ $ $ $

PARENT

Financial AssetsCash on hand 0.0% 0.0% 773 932 - - - - Cash at bank 2.4% 2.6% 1,355,511 1,168,257 - - - - Total Financial Assets 1,356,284 1,169,189 - - - -

Financial liabilitiesHire purchase 8.5% 8.4% - - 166,154 179,133 134,824 300,979 Commercial loan 8.6% 8.6% - - 59,333 71,283 - - Commercial bill 6.7% 6.7% - - 73,234 336,600 5,600,000 5,658,733 Total Financial Liabilities - - 298,721 587,016 5,734,824 5,959,712

c. Net Fair Values

The carrying value of the Association’s financial assets and liabilities approximate their fair values.

d. Derivative Financial Instruments

Forward exchange contracts

The Association's exposure to interest rate risk, which is the risk that a financial instrument's value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on classes of financial assets and financial liabilities, is as follows:

Derivative financial instruments are used by the consolidated entity to hedge exposure to exchange risk associated with foreign currency transactions. Transactions for hedging purposes are undertaken without the use of collateral as only reputable institutions with sound financial positions are dealt with.

The consolidated entity enters into forward exchange contracts to buy and sell specified amounts of foreign currencies in the future at stipulated exchange rates. The objective in entering the forward exchange contracts is to protect the consolidated entity against unfavourable exchange rate movements for both contracted and anticipated future sales and purchases undertaken in foreign currencies.

At the end of the period, the outstanding forward exchange contracts in respect of the consolidated entity amounted to JPY 19,752,600 (2014 Nil).

within 1 year 1 to 5 years

Weighted Average Effective Interest Rate Floating Interest rate Fixed Interest Rate Maturing

within 1 year 1 to 5 years

Weighted Average Effective Interest Rate Floating Interest rate Fixed Interest Rate Maturing

xPage 19


CERTIFICATE BY ACCOUNTING OFFICER OF UNION


CERTIFICATE BY ACCOUNTING OFFICER OF UNION

under the organisation’s rules;

..............................................................................................Chief Financial Officer

Dated this day of August 2015.Fortitude Valley, Brisbane Queensland.

I, Peter Jones CA, hereby certify:

g) the register of members of the Industrial Organisation is maintained in accordance with the Industrial Relations Act 1999.

f) no loans or other financial benefits were granted to persons holding office/or employees of the organisation; and

all payments were approved in accordance with the rules of the organisation;e) no payment was made for a special account of the organisation’s other than the purpose for which the fund was operated and,

d) each expenditure item by the organisation, was approved under the organisation’s rules before it was incurred;

c) all amounts so paid or collected have been credited to a financial institution account to which the amounts must be credited

b) a record was kept of all amounts paid by, or collected from, the organisation’s members;

a) the accounts show a true and fair view of the organisation’s financial affairs at the end of the year;

Communications Association Queensland, Industrial Organisation of employers for the year ended 30 June 2015;

iv) In respect of the financial year, in my opinion:

iii) The number of non-financial members at the end of the financial year was 224;

i) As the Chief Financial Officer, I am the person responsible for keeping the accounting and other records of the Electrical and

ii) The number of financial members at the end of the year was 1,407

xPage 20


CERTIFICATE BY TREASURER


CERTIFICATE BY TREASURER

been credited to the Bank Account to which those monies are to be credited, in accordance with the rules of the Association;

..............................................................................................Treasurer

Dated this day of August 2015.

Fortitude Valley, Brisbane Queensland.

Members are advised that in accordance with section 556 of the Industrial Relations Act 1999, members may apply for additional information as prescribed by Regulation 46 and 47 of the Industrial Relations Regulations.

Association for the financial period ended 30 June 2015 and the attached Statement of Financial Position gives a true and fair view of the

(iv) no loans or other financial benefits have been granted to persons holding office in the Association; and

with the rules of the Association;(iii) before any expenditure was incurred by the Association, approval of the incurring of the expenditure was obtained in accordance

(ii) a record has been kept of all monies paid by, or collected from members of the Association, and all monies so paid or collected have

financial position of the Association as at that date;

I, Tamatha Stanton, being the Treasurer of the Electrical and Communications Association Queensland Industrial Organisation of Employers, state that in my opinion:

(i) the attached Statement or Profit or Loss, Statement of Comprehensive Income shows a true and fair view of the transactions of the

(v) the register of members of the Industrial Organisation is maintained in accordance with the Industrial Relations Act 1999.

xPage 21


CERTIFICATE BY MEMBERS OF COUNCIL


CERTIFICATE BY MEMBERS OF COUNCIL

In the opinion of the Council:

a) Presented to a Council’s meeting on 26th November 2014 under section 565 of the Industrial Relations Act 1999b) Given to its members under section 566 of the Industrial Relations Act 1999

On behalf of the Council.

.............................................................................................. ..............................................................................................Councillor Councillor

Dated this day of August 2015.Fortitude Valley, Brisbane Queensland.

vi) the audit report and relevant accounts for the organisation’s financial period ended 30 June 2014 have been:

(v) during the period, there have been no instances where any of the Organisation’s records or rules, or copies of them, have not been given to the Organisations Members under the Industrial Relations Act 1999, Regulations or Rules, or made available in accordance with the Act; and

(iv) during the period, meetings of the Council were held in accordance with the rules of the Industrial Organisation;

(iii) the organisation was solvent during the whole period;

(ii) the attached accounts were prepared in accordance with the Industrial Relations Act 1999;

(i) the attached accounts give a true and fair view of the financial affairs of the Industrial Organisation as at 30 June 2015;

In accordance with a resolution of the Council of the Electrical and Communications Association, Queensland Industrial Organisation of Employers, we state that:

xPage 22


CERTIFICATE BY PRESIDENT


CERTIFICATE BY PRESIDENTINDUSTRIAL RELATIONS ACT 1999, SECTION 570

..............................................................................................President

Dated this day of August 2015.

Fortitude Valley, Brisbane Queensland.

I, Richard Flanagan, being the President of the Electrical and Communications Association Queensland Industrial Organisation of Employers, hereby certify that the documents lodged herewith are copies of the documents presented to and endorsed by the management Council of Electrical and Communications Association Queensland Industrial Organisation of Employers on 18th August 2015, and that a copy will be provided to the members in accordance with the provisions of the Act.

xPage 23


INDEPENDENT AUDIT REPORT TO THE MEMBERS






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1800 622 914

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