ITCRA Annual Report 2011/2012

ITCRA Annual Report 2011/2012

Information Technology Contract & Recruitment Association Ltd

ACN 143 665 025 (A company limited by guarantee)

Vision:

ITCRA (Information Technology Contract & Recruitment Association Ltd) is the pre-eminent Association for

ICT contract and recruitment companies, their professional staff and service suppliers, in Australia and New

Zealand, setting the direction for the sector and influencing standards and business practice.

Goals:

1. Ensure a diverse Membership base to ensure ITCRA is representing the voice of the ICT

contract and recruitment sector in Australia and New Zealand.

2. Provide a consistent Member engagement program.

3. Profile ITCRA as the brand that benchmarks best practice evidenced by the quality standards

and professional practice programs.

4. Maintain the research and business intelligence resources to support the advocacy program

and business development.

5. Consolidate ITCRA Services to provide business solutions and services for increased

productivity.

The Annual General Meeting

The 14th Annual General Meeting of the Information Technology Contract & Recruitment Association Ltd (a

company limited by guarantee) ACN 143 665 025 will be held:

WHERE: State Parliament House, Spring Street Melbourne, VIC

WHEN: Wednesday 17th

October, 2012 commencing at 6.10pm ESDST preceding the ITCRA Gala Dinner.

ITCRA Contact Details

Suite 3.14, Level 3, 343 Little Collins Street, Melbourne VIC 3000

Tel: +61 3 8622 4700 Fax: +61 3 9600 1950

Email: [email protected]: www.itcra.com

Auditor details

Lifewealth Partners Pty Ltd

Level 4, 423 Bourke Street, Melbourne VIC 3000

Tel: +61 3 9670 3434 Fax: +61 3 9670 2828

mailto:[email protected]




ITCRA Board of Directors at the time of the Annual General Meeting

President: Russell MacDonald: RMA IT Recruitment

Vice President: Duncan Thomson: Finite IT Recruitment

Finance Chair: Benjamin Wood: Clicks I.T. Recruitment

Peter Acheson: Peoplebank

Richard Earl: Talent International

Damien Ross: ITCOM

Jarrad Skeen: Talent2

Linda Trevor: Candle

CEO/Company Secretary: Julie Mills

ITCRA Branch Committee Chairs at the time of the Annual General Meeting

ACT: Jan Wills, Clicks I.T. Recruitment

NSW: StarshaGreen, Chandler Macleod

New Zealand: Jeff Jackson,De Winter International Limited

QLD: John Egan, Peoplebank

SA: Anthony Whyte, Talent International

VIC: Chris Skipper – Conway, GMT People

WA: Haydn Bell,Peoplebank




President’s Report to June 30, 2012

The past year has seen many exciting developments, in particular, the Supported Solutions Program, the continued focus on the Association’s commitment to providing resources for Members, increased awareness of best practice, and ensuring the Association is in a strong financial position for the future. To set the scene and put my comments into context: at June 30, 2012 ITCRA represented 82

Member Companies across 212 locations and 205 Professionals – the latter including Life,Honorary and Certified individuals while ITCRA’s Partner, Supporter and Special Member programnumbered 43 Supporters, Sponsors and Partners. The ITCRA Board of Directors, Committees and Working Parties all contributed to broad ranging developments during the year.

The Conduct Committee – undertook one mediation process and one intervention. These exercises demonstrated the strength of the re- drafted Code of Practice. In both instances, when the parties had the opportunity to consider the circumstances of their disagreement, this led to them taking voluntary actions to address their concerns.

The Code matters raised this year resulted in the development of strengthened Code resources. This included detailed advisory notes and materials to assist Members to inform clients and candidates of the Association’s expectations of Members under the Code.

The Professional Development Committee continued their ongoing review of the ITCRA Certified Recruitment Professional program and its components. It has been pleasing to see the increase in Certification registrations and the award of our first Certified Professional Scholarship this year.

The SkillsMatch Working Group has continued to keep pace with the rapid evolution of skills in the ICT sector, guaranteeing SkillsMatch will be a constant work in progress. The Working Group has been instrumental in ensuring currency of the data and in providing recommendations for product improvement to the Project Manager. There is no doubt their feedback has led to significant improvement in the product’s functionality leading to acceptance and commercial uptake but there is still a need for increased Member engagement.

The Independent Contractors Working Group resulted in a preliminary Independent Contracting Policy for the industry. A number of the drivers for this group are overshadowed by other activities but constant vigilance in monitoring the “sham” contracting debate and the ongoing discussions surrounding flexible workforce models ensures that the Group will always have much to consider going forward. The ITCRA Directors have established a clear direction that ensures the Association is engaged in those issues and battles that directly impact the ICT contract and recruitment sector – we have identified ourselves as a niche specialized Membership and need to focus our attentions in that space.

The Immigration Working Group has continued to grapple with the ever-changing landscape of the temporary migration visa programs and the requirements of those providing talent to their clients from sources outside of Australia.




The ACT and QLD local Committees have been busy as Working Groups (in fact the whole Membership have been involved in these locations) reviewing and addressing a Payroll Tax anomaly in the ACT and the ongoing Resource Manager rollout delays and recent Government cutbacks in QLD. Other State Committees have met, as required, to address Members issues at a local level and the New Zealand Members have used their networking program to make sure they are up to date with ITCRA actions.

Led by the ITCRA CEO, the focused attention on local issues are undertaken by ITCRA Member representatives on a voluntary basis and demonstrates an increasing level of engagement by Members with their Association. Participation has provided individuals and organisations with the opportunity to connect and bring influence to bear on a wide range of issues and Government policies. ITCRA’s visibility in the marketplace has grown exponentially in the past 12 months. Members, clients and Government, regularly comment on our profile and level of recognition and seek our input. The campaign to deliver the reports from SkillsMatch to a greater audience has been a strong driver of media interest. It is my long held view that SkillsMatch will enhance ITCRA’s reputation as the most credible recruitment industry authority and this, in turn, will lead to us having a greater say in other aspects of employment such as: Independent Contractors’ Legislation: the Skilled Migration Program; State and Federal Workplace Laws; Work Safety Legislation. The influence of our Association’s practical knowledge will result in improved workplace laws and national workforce planning decisions. As I have said before, a mature industry takes on broader responsibilities. To ensure we reach our full potential and continue to build a better recruitment industry. SkillsMatch needs and deserves your wholehearted support. Over the next 12 months we will see ITCRA’s exposure increase further through the efforts of our new media and education partners Longhaus, ITWire and ProLearn who will take the ITCRA and SkillsMatch message to an even wider client and contract market. A development that started as a simple concept has now quietly developed into an outstanding ITCRA benchmark. The iDiagnosticBusiness Assessment and the first product to evolve from that program, iSafe, encompasses a 360 degree approach to Business Compliance and, in particular, Work Health and Safety. These benchmarks are recognised by business and Government as a unique ITCRA initiative and an iDiagnostic audit is an essential aspect of ITCRA Membership, further evidence of the Board’s commitment to improving the level of professionalism of our industry. I would like to acknowledge the Board Directors, Committees and Working Group Members for their valuable contribution and commitment. I would particularly like to thank the Executive Directors who, along with the CEO and our advising accountant Paul McKernan, meet each month to ensure the Association’s Governance is in good order. My thanks to the Secretariat, led by the CEO Julie Mills. Julie, Carmel, Lauren, Stacey and Leah have ensured that the Association has maintained a continuous program of information, events and opportunities for Member, as well as strong governance and management for the Association as a company. As President I am privileged to chair an enthusiastic and committed Board of Directors and be supported by such a dynamic Secretariat and I look forward to another 12 months of challenges and opportunities.

Russell MacDonald

ITCRA President




CEO’s Report to June 30, 2012

It is with great pleasure that I present my annual report as CEO of ITCRA.

In the past year ITCRA has continued to invest in the development of programs and services to ensure Members have access to a range of resources to provide business intelligence, benchmarking and best practice tools.

Launched in 2011/2012:

The RIB iIndicator Health Check – a personalised confidential business assessment

Contractor Rates and Movement Reports (from SkillsMatch)

ITCRA Trends Report to complement the SkillsMatch Dashboard

ITCRA SkillsMatch Dashboard

Subscription service for ITCRA reports

CEO’s Circle

ITCRA CEO Speaks blog and targeted social media program

This, combined with ITCRA’s commitment to delivering an effective issues based Working Group and Committee structure, to address local as well as cross border issues as they arise, has ensured the Association’s Membership has continued to be a value add to Member companies, despite the changing face of the marketplace.

Membership numbers, as reported by the President remain at consistent levels and, with the need to achieve benchmarks before Membership is accepted now entrenched in ITCRA’s process the brand “ITCRA” remains something to be achieved – not just an annual fee.

The key targets for 2011/2012to invest in establishing stronger Member Supported Solutions programs to assist Member companies but also to ensure we had a strong income stream from programs other than Membership fees were partially met. The initiatives were established but the financial targets were not achieved – in a challenging economic climate projects requiring investment need a leap of faith and some gentle nurturing.

With the forward notice of the changes to ITSuper we were extremely fortunate to be in a position to review our initiatives, with advice from a number of sources, and to develop a robust solution to ensure Fund Members, as well as ITCRA, were aware of risks during times of change.

The leadership of our advising accountants, LifeWealth, was invaluable during this time and the outcomes will be reviewed over the coming 12 months.




With respect to the Working Groups and Committees, as noted by the President, I have the pleasure of meeting with and/or following up with on a regular basis. The commitment of these groups to the “good” of the industry cannot be underestimated. The due diligence shown in ensuring the whole of Membership is informed and benefits from any initiative is commendable.

The most exciting development for me in the past year has been the CEO;’s Circle. It has always been my belief that the Board of Directors of any Association must have the input of the Membership to deliver strategic solutions to industry issues and/or innovations and, as the Board numbers are limited there has to be other forums for this feedback and input to occur.

The CEO’s Circle was born out of a request from a national manager of a large generalist recruiter with an IT unit in the company (ITCRA Members of course!). He felt the need for a forum to discuss a number of issues in an environment that was structured to avoid inappropriate discussions but that hopefully would deliver some strong recommendations to the Board.

The topics are wide ranging and often emerge from judicial rulings, new legislative issues or from matters that cross my desk. What is important is there is consistency of attendance from CEO’s across all size business and the Directors are fortunate to have this additional level of input tho their decision making. All ITCRA CEO’s and/or MD’s receive the outcomes and can make additional comments if they were not available to attend.

The moderation of these sessions by Andrew Wood is the key to the success along with the willingness of industry leaders to have open and frank discussions.

In closing, 2011/2012 was marked in last year’s report, as a year of consolidation and increasing ongoing engagement of Members with the key focus on using the tools and resources available to ensure, when ICT employment is under the microscope – ITCRA is the first point of contact.

That consolidation came at a greater financial cost than forecast. To ensure we maintain the momentum there is a need for 100% Member engagement and commitment – to sustain our position in the ICT sector as both the talent solution and the knowledge partner- everyone needs to be engaged.

The Future

So what is ahead long term for ITCRA? The Strategic Plan continues to focus on the four pillars that reflect the platform on which the Association’s program is established. Each has a statement of intent, reviewed quarterly, which is underpinned by the input from the Committees and Working Groups who are the “voice” of the Members.




The Board of Directors ensure the needs of the Membership are at the forefront of all strategy but have a long-term vision. This is to ensure the ICT contract and recruitment sector continues to be recognised for its contribution the Australian, New Zealand and global economies and, more importantly, it is the essential partner in any ICT projects and employment initiatives for many years to come. The pillars and their supporting programs are:

STANDARDS

Code of Conduct

iDiagnostic

ITCRA Certified Professionals

Toolkits

SUPPORTED SOLUTIONS

iSafe

ITSuper

SkillsMatch

INSIGHT

Advocacy

o ACT Payroll Tax o 457 On-hire Labour

Agreement o Independent Contracting o NSW Procurement o QGCPO Joint Advisory

Group o WorkCover Victoria

Workers’ Compensation Review

CEO’s Circle

Insight Papers

iPulseSurveys

CONNECT

Gala Dinner and Awards

iNews; CEO Speaks blog

Networking

Workshops

In the short term, 2012/2013 will see a continued focus on our Supported Solutions programs – these are the financial and profile foundations for ITCRA’s future and they provide excellent resources for Member companies.

Julie Mills

ITCRA CEO




Financial Statements

For the year ended 30 June 2012

Lifewealth Partners Pty Ltd

Level 4, 423 Bourke Street

Melbourne VIC 3001

Phone: (03) 9670 3434 Fax: (03) 9670 2828

Email: [email protected]




Contents

1. Directors' Report

2. Auditor's Independence Declaration

3. Statement of Comprehensive Income

4. Statement of Financial Position

5. Statement of Changes in Equity

6. Statement of Cash Flows

7. Notes to the Financial Statements

8. Directors' Declaration

9. Independent Auditor's Report




Director’s Report

Your Directors present this report on the company for the financial year ended 30 June 2012.The names of

the Directors in office at any time during or since the end of the year are:

Name of Director

Experience Qualifications, experience & special responsibilities

Russell MacDonald

40 years in IT recruitment

President/Executive Committee/Working Groups

Leon Lau

28 years in the recruitment industry

Resigned October 5

th, 2011

B.Sc FAICD Vice President

Duncan Thomson


B.Arch(Hons)/M.Arch

Vice President

Executive Committee

Richard Earl

17 years in recruitment industry

Grad Dip Computer Science

Ben Wood 25 years recruitment experience

B.Arts(Hons) Finance /Executive Committee Chair

Damien Ross

16 years in recruitment and human resources

B.Business Human Resources, Grad Dip Information Systems

Linda Trevor

20 years in recruitment

B.Mus Ed. (UNSW)

Patrick March

18 years in HR and recruitment

Resigned 12th

December, 2011

HND in Business Studies

Peter Acheson


Seconded 5th

October 2011

Bachelor of Business, Bachelor of Education

Working Groups

Jarrad Skeen

12 years in recruitment

Seconded 8th

February, 2012

MEI

Directors have been in office since the start of the financial year to the date of this report unless otherwise

stated.




Directors' Meetings

During the past financial year 15 Directors’ meetings were held (5 Board Meetings and 10 Executive

Meetings) or would have been held if a quorum had been present.

Attendances by individual Directors are as follows:

Directors

Meetings

Executive

Committees

Meetings

Eligible to Attend Attended Eligible to Attend Attended

Russell MacDonald 5 5 10 9

Ben Wood 5 3 10 8

Leon Lau 2 2 5 2

Damien Ross 5 4

Richard Earl 5 4

Patrick March 2 1

Duncan Thomson 5 3 5 4

Linda Trevor 5 3

Peter Acheson 3 3

Jarrad Skeen 3 2




Operating Result

The loss of the company for the financial year after providing for income tax amounted to:

Year ended Year ended

30 June 2012 30 June 2011

$ $

(101,026) 8,691

Review of Operations

The operations of the company during the year have been fully in accordance with its principal activities as

set out below. The results of those operations are as detailed in the accompanying audited financial

statements of the company.

Significant Changes in the State of Affairs

No significant changes in the company's state of affairs occurred during the financial year.

Principal Activities

The principal activity of the company during the course of the year was to set the direction for companies

and individuals, influencing standards and business practice through education, thought leadership and

services.

Short Term and Long Term Objectives

The company’s short - term objectives during the course of the past financial year were to:

A: Consolidate the ITCRA Supported Solutions program: ITSuper, iSafe and SkillsMatch. B: Strengthen Member engagement The company's long - term objectives are to: C: Profile ITCRA Membership as the benchmark for ICT recruitment and contract best practice and the ITCRA Certification program as the recognised standard of excellence to clients and candidates. D: Facilitate a consistent advocacy, research and thought leadership program on issues that may create risk/and /or challenges for Members or the industry at large. E: Continue with strategies A & B as part of the five year plan.




Strategies

To achieve its stated short and long term objectives the company:

A. Reviewed existing programs that provided Supported Solutions for Members and actioned the

following:

1. De-commissioned the IT2 jobs portal in direct response to declining interest and engagement as well

as agreement from the partners in the site

2. Reviewed the ITSuper service providers and analysed the fund and its opportunities for the next five

years in light of regulatory changes. This resulted in a change to the Financial Adviser support and a

review of the Fund Manager program and contracts.

3. Introduced, in partnership with FCB and WorkPro, the iSafe support solution to Members who are

licenced to access the services – in response to the new WHS legislation.

4. Developed a new more structured reporting and analysis program for SkillsMatch to deliver

information of interest to the media and to external parties interested in the data. Also strengthened

the partnerships that support the program and made tentative inroads to the New Zealand market.

B. Aligned the online and face to face program that brings Members of all classes and external parties together to ensure maximum opportunity for broad Membership interaction and responsiveness using a range of models such as:

1. Development of a strong online presence and information rich but efficient website and CRM system 2. Increased social media strategy 3. Consistent iNews service that delivers business, function, compliance and research updates as well as

Special Members profiling and product announcements. 4. Member driven face to face events and networking that encouraged Member engagement across all

different levels of the business 5. Improved event management tools and payment systems 6. Highly structured information dissemination and communication strategy – targeted campaigns 7. Profiling and advertising opportunities and up to the minute Directories

8. A regular Functions Program for all classes of Members to ensure all Members of ITCRA and their

colleagues, have a program that delivers information, social, networking and profiling outcomes.

C. Continued to profile the iDiagnostic as a benchmark for ICT recruitment and contract best practice

as well as the ITCRA Certification program as the recognised standard for consultants by:

1. Providing a tick stamp of success for successful companies and individuals.

2. Updating the checklists and online tools to ensure Members and individuals can self – assess

3. Developing online training tools for all aspects of iDiagnostic and Certification

4. Using iDiagnostic as the platform for ITCRA’s compliance and risk management training.

5. Providing the Certification program to any consultant who recruits in the ICT recruitment sector by broadening the open study model.

6. Developing supplementary programs with Training Providers 7. Introducing a Scholarship for Professional Excellence.




D. Strengthened the pro –active legal advisory team and increased the number of research and

advocacy partners to ensure ITCRA was at the forefront of ensuring that the value of the ICT contract

recruitment industry is identified to Government and industry. During the year ITCRA:

1. Regularly surveyed Members for input into topics impacting the industry

2. Developed papers on key issues on a range of workplace topics e.g EEO, discrimination and women in recruitment, for submission to Government and for publication

3. Promoted ITCRA as a knowledge source with access to a broad range of research and statistics 4. Submitted responses to a number of Government inquiries 5. Engaged a Business Writer and Researcher 6. Engaged recruitment industry specific researchers as well as broader ICT focused analysts to validate

the market research 7. Maintained a wide ranging media presence.

Key Performance Measures The company measures performance through qualitative and quantitative benchmarks to assess the financial sustainability of the company and whether the short and long-term objectives are being achieved.

2011/2012

A: SUPPORTED SOLUTIONS Actual Target

SkillsMatch

Participating Members 10 12

External Licences 1 2

Proportion of income provided by Supported Solutions

54% 53%

Proportion of expenses incurred by Supported Solutions

7% 6%

2011/2012

B: MEMBER ENGAGEMENT Actual Target

General Members: 82 85

Professional Members: 205 200

Special Members 43 40

Committee/Working Group Participation/Individuals

80 50

Committee/Working Group Participation/Companies

25 80

Participation/Individuals in Connect Program

390 350

Participation/companies in Connect Program

90 100

Subscribers to iNews and its subsets 1090 1000

Proportion of income provided by Member Engagement

44% 40%

Proportion of expenses incurred by Member Engagement

21% 21%




C: STANDARDS iDiagnostic assessments undertaken 19 20

iDiagnostic 85% pass rate achieved 15 20

iSafe Licence sales 8 5

Certified Professionals 32 100

Leadership Program (Melbourne Business School)

3 4

Code of Conduct Sanctions 0 0

Code of Conduct Mediations 1 0

Proportion of income provided by Standards 2% 6% Proportion of expenses incurred by Standards 7% 9% D: INSIGHT

Research Papers 4 4

iPulse Surveys 7 6

Proportion of income provided by Insight 0% 1% Proportion of expenses incurred by Insight 12% 10% OVERHEADS Proportion of expenses incurred for administration expenses

18% 20%

Proportion of expenses incurred for employment expenses

35% 34%

No significant change in the nature of these activities occurred during the year.

After Balance Date Events

No matters or circumstances have arisen since the end of the financial year which significantly affected or may

significantly affect the operations of the company, the results of those operations, or the state of affairs of the

company in subsequent financial years.




Auditors Independence Declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 has

been included.

Signed in accordance with a resolution of the Board of Directors:

Russell MacDonald

Director

Ben Wood

Director

27th September, 2012

UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

To THE DIRECTORS OF: Information Technology Contract & Recruitment Association Ltd

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2012 there

have been :

(i) no contraventions of the auditor independence requirements as set out in the Corporations

Act2001 in relation to the Audit; and

(ii) no contraventions of any applicable code of professional conduct in relation to the audit

Christopher Kemp

C/-Lifewealth Partners Pty Ltd




Statement of Comprehensive Income and Expenditure for the year ended 30 June 2012

2012 2011

Revenue

$ $

Subscriptions 2 332,136 254,968 Other Revenue from ordinary activities 932,610 957,269

Foreign exchange gain 1,056 Total Revenue

1,265,802 1,212,237

Expenses Administration Expenses

(284,855)

IT Super

(67,901)

IT2 Expenses

(21,600)

Certification Expenses

(57,926)

Membership Expense

(210,665)

Skills Match

(26,102)

Other expenses from ordinary activities

(117,122)

Commissions Paid

(62,868) General Membership

(26,624)

Toolkits

(108,039) Insight

(198,014)

Connect

(152,772) Supported Solutions

(92,095)

Office Expenses

(67,848) Accounting & Audit Fee

(18,928)

Legal Fees

(19,139) Dues & Subscriptions

(9,816)

Rent on operating lease

(55,000) Depreciation & Amortisation (Note:2B) (79,144) Employment Expenses

(476,541) (417,375)

Total Expenses (1,366,828) (1,203,546)

Operating profit (deficit) (101,026) 8,691

Retained profits at the beginning of the financial year 911,815 903,124

Retained profits at the end of the financial year810,789911,815 The accompanying notes form part of these financial statements




Statement of Financial Positionas at 30 June 2012

2012 2011

Current Assets

$ $

Cash assets 3 820,527 808,381

Trade and Other Receivables 4 123,512 45,094

Other 5 143,651 9,260

Total Current Assets

1,087,690 862,735

Non-Current Assets Property, plant and equipment 6 145,597 140,588

Intangible Assets 7 75,669 Total Non-Current Assets

221,266 140,588

Total Assets

1,308,956 1,003,323

Current Liabilities Trade and Other Payables 8 228,509 91,508

Employee Entitlements

36,495 Income in Advance

233,163

Total Current Liabilities

498,167 91,508

Total Liabilities

498,167 91,508

Net Assets

810,789 911,815

Members Funds Retained profits

810,789 911,815

Members Funds

810,789 911,815

The accompanying notes form part of these financial statements




Statement of Changes in Equity for the year ended 30 June 2012

Retained Earnings and Total

Balance at 1 July 2010 894, 379

Adjustment to opening retained earnings (10,542)

NZ Currency reserve 19,287

Profit attributable to the entity 8,691

Balance at 30 June 2011 911,815

Balance at 1 July 2011 911,815

Deficit attributable to the entity 101,026

Balance at 30 June 2012 810,789





For the year ended 30 June 2012

Cash Flow From Operating Activities

2012 2011

$ $

Receipts from Customers 1,180,708 1,165,778 Payments to Suppliers and Employees (932,447) (1,205,835)

Commissions Paid (62,868) Net cash provided by (used in) operating activities (note 2)

(The amounts exclude GST) 185,393 (40,057)

Cash Flow From Investing Activities

Payments for Software Developments (67,582) (86,185) Payments for Plant & Equipment (8,528) (10,156)

Payments for Intangible Assets (83,713)

(159,823) (96,341)

Net increase (decrease) in cash held 25,570 (136,398) Reclassification of Bond from 2011 as Non Cash Item (13,424)

Cash at the beginning of the year 808,381 944,779

Cash at the end of the year (note 1) 820,527 808,381





Notes to the Financial Statements for the year ended 30th June, 2012

Note 1.Reconciliation of Cash

For the purposes of the statement of cash flows, cash includes cash on hand and in banks and term deposits.

Cash at the end of the year as shown in the statement of cash flows is reconciled to the related items in the balance

sheet as follows:

Cash and Cash Equivalents 820,527 808,381

820,527 808,381

Note 2. Reconciliation ofNet Cash Provided By/Used In Operating Activities to Operating

Profit after Income Tax

Operating profit after income tax (101,026) 8,691

Add non-cash items, depreciation and amortisation 79,144 Changes in assets and liabilities net of effects of purchases and disposals of controlled entities:

(Increase) decrease in trade and term debtors (78,418) 206,268

(Increase) decrease in prepayments (120,966) (9,260)

Increase (decrease) in trade creditors and accruals 173,496 (14,704)

Increase (decrease) in other creditors 233,163 (231,052)

Net cash provided by operating activities 185,393 (40,057)




Notes to the Financial Statements for the year ended 30th June,2012

Note 1: Statement of Significant Accounting Policies

The financial report is a general purpose financial report that has been prepared in accordance with

Australian Accounting Standards and the reduced disclosure requirements of the Australian Accounting

Standards Board and the Corporations Act 2001. The company is a not for profit entity for financial

reporting purposes under Australian Accounting standards.

The financial report covers Information Technology Contract & Recruitment Association Ltd as an individual

entity. Information Technology Contract & Recruitment Association Ltd is a company limited by guarantee,

incorporated and domiciled in Australia.

The financial report has been prepared on an accruals basis and is based on historical costs and does not

take into account changing money values or, except where stated, current valuations of non-current assets.

Cost is based on the fair values of the consideration given in exchange for assets.

The following is a summary of the material accounting policies adopted by the economic entity in the

preparation of the financial report. The accounting policies have been consistently applied, unless

otherwise stated.

Income tax

The company is exempt from income tax pursuant to Section 50-5 of the Income Tax Assessment Act 1997.

Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any

accumulated depreciation.

(a) Plant and equipment

The carrying amount of plant and equipment is reviewed annually to ensure it is not in excess of the

recoverable amount from those 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 not been discounted to present values in determining the recoverable amounts.

The cost of fixed assets constructed within Information Technology Contract & Recruitment Association Ltd

includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and

variable overheads.





(b) Depreciation

The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding

freehold land, is depreciated on a straight line basis over their useful lives to Information Technology

Contract & Recruitment Association Ltd 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 asset are:

Class of Asset Depreciation Rate %

Plant and equipment 10%-20%

Website Development 33.33%

Intangible Assets

iSafe& iThink are electronic library resources provided to Members of ITCRA. It was determined that the

useful life of each of these resources is 5 years. These have been valued in the accounts at cost of

acquisition and are amortised over the period in which their benefits are expected to be realised.

Foreign Currency Transactions and Balances

Foreign currency transactions during the period are converted to Australian currency at the rates of

exchange applicable at the dates of the transactions. Amounts receivable and payable in foreign currencies

at the balance date are converted to the rates of exchange ruling at that date.

Employee entitlements

Provision is made for the liability for employee entitlements arising from services rendered by employees to

balance date. Employee entitlements expected to be settled within one year together with entitlements

arising from wages and salaries, annual leave and sick leave which will be settled after one year, have been

measured at their nominal amount. Other employee entitlements payable later than one year have been

measured at the present value of the estimated future cash out flows to be made for those entitlements.

Contributions are made by Information Technology Contract & Recruitment Association Ltd to employee

superannuation funds and are charged as expenses when incurred.





Cash

For the purpose of the statement of cash flows, cash includes cash on hand and in all call deposits with

banks or financial institutions, investments in money market instruments maturing within less than two

months, net of bank overdrafts.

Comparative Figures

Where required by Accounting Standards comparative figures have been adjusted to conform with changes

in presentation for the current financial year. A new chart of accounts was adopted in 2011/2012. This

explains why the comparatives figures in the statement of Comprehensive Income and Expenditure do not

match.

Revenue

Interest revenue is recognised on a proportional basis taking in to account the interest rates applicable to

the financial assets.

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

Where income is received for services or Memberships which relate to a future financial year, it is recorded

as Income in advance in the Balance Sheet.

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

Note 2a: Revenue and Other Income

2012

2011

Operating Activities Skills Match Revenues

66,283

63,488

Membership fees

332,136

254,968

Certification Fees

19,394

35,810

IT2 Revenue

13,500

57,500

ITCRA web advertising

38,346

Web Resource Development

51,941 ITCRA functions

63,997

31,703

547,251

481,815





Non-Operating activities

Interest Received

51,675

53,692

Sponsorships

25,005

ITCRA Special Member Profiles

49,338 Other Income

9,300

4,480

IT Super Asset & Insurance fee 608,238

647,245

1,265,802

1,212,237

Note 2b: Expenses Depreciation and Amortisation

Plant & Equipment

13,110

12,052

Leasehold Improvements

10,257

3,322

Website Development & Software

47,734

8,792

Library Intangibles 8,043

79,144

24,166

Note 3: Cash assets

2012

2011

Bank accounts: Cash at Bank Operating

170,327

158,181

Term Deposit

650,200

650,200

820,527

808,381

Note 4: Receivables Current

2012

2011

Trade debtors

111,096

32,679

Sundry Debtors

175

175

Accrued Interest

12,241

12,240

123,512

45,094

Note 5: Other Assets

2012

2011

Deposit Bond

13,425 Prepayments

130,226

9,260

143,651

9,260





Note 6: Property, Plant and Equipment

2012

2011

Plant and equipment:

Skillsmatch Intellectual Property 230,974

230,974

- Less: Accumulated depreciation (230,974)

(230,974)

0

0

Intellimax Developments

16,898

16,898


(16,898)

0

0

Online Certification Training Software 20,000

20,000


(20,000)

0

0

Office Furniture

29,416

29,416


(14,320)

12,493

15,096

Computers & Office Equipment 86,200

77,672


(63,459)

12,272

14,213

Leasehold Improvements

45,753

45,753

- Less: Accumulated amortisation (26,108)

(15,857)

19,645

29,896

Website Developments - Upgrade 153,724

86,185


(4,801)

101,189

81,384

Total

145,597

140,588





Note 7: Intangible Assets

iSafe Library

52,812

0

- Less: Accumulated Amortisation (3,625)

0

49,186

0

iThink Library

30,901

0

- Less: Accumulated Amortisation (4,418)

0

26,483

0

Total

75,669

0

Note 8: Current Liabilities

2012

2011

Unsecured: - Trade creditors

164,738

35,826

- Credit Cards

6,279

6,029

- Accrued expenses

3,150

10,650

- Sundry creditors

29,892

4,090

- Superannuation Payable/PAYG Payable 8,175

724

- Goods & Services tax Payable 16,275

19,997

228,509

91,508

Note 9 : Capital and Leasing Commitments

Operating Lease commitments

Operating leases contracted for but not capitalised in the financial statements:

Payable: 2012 2011

Not longer than 1 year 55,000 55,549

Longer than 1 year but not longer than 5 years 50,000128,386





Note 10: Members’ Guarantee

The Information Technology Contract & Recruitment Association Ltd is a company limited in liability by a

guarantee from each Member. In the event that the company is wound up, the Constitution of the

Association requires that each fee paying Member company (General and Special) contribute a maximum of

$100.00 towards meeting any outstanding obligations of the company. At 30 June 2012 the number of fee

paying Members (General and Special) was 125.

Note 11: Financial Risk Management

The company’s financial instruments consist mainly of deposits with banks, term deposits, accounts

receivable and payables and leases.

The carrying amounts for each category of financial instruments are as follows:

Financial Assets $

Term Deposit 650,200

Cash 170,327

Receivables 111,096

Financial Liabilities 200,909

Net Fair Value

The net fair value of assets and liabilities approximates to their carrying values. No financial assets and

financial liabilities are readily traded on organised markets in standardised form.

The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed

in the statements of financial position and in the notes to the accounts.

Note 12: Key Management Personnel Compensation

The total of key management personnel remuneration of the company during the year was $177,633.

Note 13: Contingent Liability

There are no contingent liabilities.





Note 14: Company Details:

ITCRA is a company limited by guarantee and incorporated in Australia. Its registered office and place of

business is:

Information Technology Contract & Recruitment Association Ltd.

Suite 3.14

Level 3, 343 Little Collins Street

MELBOURNE VIC 3000




Directors Declaration

The Directors of the company declare that:

1. the financial statements and notes are in accordance with the Corporations Act 2001 and:

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

(b) give a true and fair view of the company's financial position as at 30 June 2012 and of its performance

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.

This declaration is made in accordance with a resolution of the Board of Directors.

Russell MacDonald

Director

Ben Wood

Director

27th September, 2012




Independent Auditor’s Report

Report on the Financial Report

I have audited the accompanying financial report of Information Technology Contract & Recruitment

Association Ltd (the company), which comprises the Directors' Declaration, the Statement of Comprehensive

Income, the Statement of Financial Position, Statement of Cash Flows, Statement of Changes In Equity, a

summary of significant accounting policies and other explanatory notes for the financial year ended 30 June

2012.

The Directors' Responsibility for the Financial Report

The Directors of the company are responsible for the preparation and fair presentation of the financial

report.The report gives a true and fair view in accordance with Australian Accounting Standards (including

Australian Accounting Interpretations) and the Corporations Act 2001 and accounts for such internal control as

the Directors determine is necessary to enable the preparation of the financial report that is free from material

misstatement, whether due to fraud or error. In Note 1, the Directors also state the accounts have been

prepared in accordance with the reduced disclosure requirements of the Australian Accounting Standards

Board.

Auditor's Responsibility

My responsibility is to express an opinion on the financial report based on my audit. I conducted my audit in

accordance with Australian Auditing Standards. Those Standards require that I comply with relevant ethical

requirements relating to audit engagements, and plan and perform the audit to obtain reasonable assurance

whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the

financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the

risks of material misstatement of the financial report, whether due to fraud or error. In making those risk

assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of

the financial report in order to design audit procedures that are appropriate in the circumstances, but not for

the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes

evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates

made by the directors, as well as evaluating the overall presentation of the financial report.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit

opinion.




Independence

In conducting my audit, I have complied with the independence requirements of the Corporations Act 2001. I

confirm that the independence declaration required by the Corporations Act 2001, provided to the directors of

Information Technology Contract & Recruitment Association Ltd on 30 June 2012 would be in the same terms if

provided to the directors as at the date of this auditor’s report.

Auditor's Opinion

In my opinion:

a. the financial report of Information Technology Contract & Recruitment Association Ltd is in accordance with

the Corporations Act 2001, including:

(i) giving a true and fair view of the company's financial position as at 30 June 2012 and of its performance for

the year ended on that date; and

(ii) complying with Australian Accounting Standards (including Australian Accounting Interpretations) and the

Corporations Regulations 2001;

b. The financial report also complies with Reporting Standards as disclosed in Note 1.

Signed on :27th September, 2012

Christopher Kemp

C/- Lifewealth Partners Pty Ltd ABN 38 427 940 567

Level 4, 423 Bourke Street Melbourne Vic 3000

ITCRA Annual Report 2011/2012

Documents