Australian Institute of Building Annual Report For the ... · ACT CV Writing and Interview Techniques 28/08/2014 ACT ACT Construction Bus Tour 17/09/2014 ACT Meyer Vandenberg Networking

Australian Institute of Building

Annual Report

For the year ending 31 March 2015

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THE AUSTRALIAN INSTITUTE OF BUILDING 2015 ANNUAL REPORT

Contents

Objectives and Highlights 3

Membership 4

Education

- Education 4 - Course Accreditation Committee 5 - Accredited Education Providers 5 - Adjunct Appointments 5 - List of AIB Events 7

Industry and Government Liaison

- Work Program 8 - Policy Development 8 - Media Releases 8 - Submissions Made 8

Awards 8

Sponsors 9

Overview of Financial Performance 10

AIB National Council Membership 11

Audited Financial Statements

(Separately page numbered document)


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The objectives of the Australian Institute of Building

• To promote excellence in the construction of buildings and just and honourable practices in the conduct of business;

• To advance the study of building and all kindred matters, arts and sciences; • To encourage the friendly exchange between members of knowledge in practical, technical

and ethical subjects; and • To uphold the dignity of the profession of building and the status of the Institute.

NATIONAL SPONSORS

Highlights • Continued strong growth in student engagement with the Institute; • Consolidation of the AIB Online facility providing online continuing professional development; • 42% Increase in the number of Members participating in AIB CPD events and programs; • Completion of the accreditation of all construction management higher education programs; • Record number of Professional Excellence in Building nominations nationwide; • Further strengthening of National and State sponsors; • Continued strong use of online booking facilities for AIB events; • Increased engagement with all State and Territory building regulators • Significant growth in National Building Professionals Register; • Overseas engagement with opening of Macau Branch and signing of memorandums of understanding

with Hong Kong Institute of Construction Managers and Hong Kong Institute of Engineers; • Agreement with University of Pretoria South Africa; • A greater presence across social media; • Tripartite agreement - AIB, New Zealand Institute of Building and Singapore Institute of Building; • New Council Structure established with improved communication with Chapters; and • The AIB Office relocated to new premises providing operational and financial efficiencies.

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Membership

The membership results for the year ended 31 March 2015 showed strong resilience against the backdrop of difficult times in the building and construction industry. The continued efforts by AIB Chapters in their engagement with local AIB accredited universities showed promising signs with the initiative of providing student members with AIB logoed hard hats and safety vests continuing to prove popular.

The AIB’s Young Builders Alliance continues to make significant advances in providing top quality support to students and graduates in the building industry. The alliance is driven a very dedicated and hardworking committees around the country which are linking closely with the established AIB Chapters.

The Institute streamlined the membership categories during the year, transferring the Licentiate and Graduate grades into an expanded associate grading. This move was to strengthen the Institute’s advance through learning motto with the focus on all members progressing to full member status.

Overall membership totals were steady with good growth in both student and fellow grades.

The Captains of Industry campaign to award Fellow grade to senior practitioners in the industry proved highly regarded with many new distinguished senior practitioners joining the ranks of Fellow.

Education

The 2014-15 year was a very busy and productive period for the education portfolio. The Education and Course Accreditation Committees continued on their focus to strengthen the relationship with the higher education sector completing all the accreditations. New CPD initiatives were introduced and the membership engaged across chapters to participate in dynamic and vibrant professional development programs.

The Education Committee’s objectives continued as in past years to provide the AIB Council with expert guidance on Institute and Industry educational matters, which included:

• Developing and implementing CPD initiatives; • Membership entry and advancement pathways development; • Continued work on development of the AIB Logbook and an Associate Training Program; and • Review and development of the Chartered Builder Program for Chartered Builder status.

2011 2012 2013 2014 2015 0

1,000

2,000

3,000

4,000

Total Membership


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AIB Course Accreditation Committee

The Course Accreditation Committee met on an as required basis to consider various panel recommendations:

As at 31 March 2015 the AIB accredited higher education program providers were as follows:

University Canberra Bachelor of Building and Construction Management

University of Newcastle Bachelor of Construction Management (Building)

University of Technology Sydney Bachelor of Construction Project Management Course

University of Western Sydney Bachelor of Construction Management

University of New South Wales Bachelor of Construction Management

Central Queensland University Bachelor of Construction Management

Queensland University of Technology Bachelor of Urban Development (Construction Management)

Royal Melbourne Institute of Technology Bachelor of Applied Science (Construction Management)

Deakin University Bachelor of Construction Management

University of Melbourne Bachelor of Environment and Master of Construction

Holmesglen Bachelor of Construction Management and Economics

University of South Australia Bachelor of Construction Management and Economics

Curtin University Bachelor of Applied Science (Construction Management and Economics)

Adjunct Appointments

The AIB, in partnership with the various AIB accredited universities, has enlisted prominent Chartered Builders to participate in its Higher Education Adjunct program. This program facilitates these highly experienced builders being appointed to honorary academic positions with particular universities to provide a range of support including guest lecturing/tutoring and advice on the academic program.

Professor Peter Hansen OAM FAIB Conjoint Professor of Building and Construction - University of Newcastle

Doctor William Mansell FAIB Doctor of Engineering (honoris causa) - University of Sydney

Professor Jack Hutchinson AM FAIB FAIQS Honorary Professor of Building and Construction - Central Queensland University

Professor Peter Fardoulys AM LFAIB Honorary Professor of Building and Construction - Central Queensland University

Professor John Hindmarsh FAIB Adjunct Professor of Building and Construction - University of Canberra

Adjunct Fellow Robert Kell FAIB Adjunct Fellow of Construction - University of Western Sydney

Professor Patrick Toomey FAIB Adjunct Professor of Building Construction and Property - University of Canberra

Professor Thomas Morris LFAIB Adjunct Professor of Building Construction - RMIT University

Professor Robin Fardoulys LFAIB Adjunct Professor of Building and Construction - Queensland University of Technology

Professor Gregory McLean FAIB Adjunct Professor of Building and Construction - Queensland University of Technology

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Professor Clay Anderson MAIB MAIBS Conjoint Professor of Building Certification and Regulation University of Newcastle

Professor Murray Coleman OAM FAIB Professorial Fellow (Building and Construction) - University of Melbourne Adjunct Professor Building and Construction at the University New South Wales

Professor Kim Lovegrove FAIB MNZIOB Conjoint Professor of Building Certification and Regulation University of Newcastle

Professor Michael Wynn-Jones FAIB MAIBS Conjoint Professor of Building Certification and Regulation University of Newcastle

Professor Alan Jeary FAIB FRMetS(UK) FIStructE(UK) CEng Adjunct Professor of Building and Construction University of Canberra

Conjoint Professor John Smolders FAIB Conjoint Professor of Building and Construction University of Newcastle

Conjoint Senior Fellow Ross Smith FAIB Senior Conjoint Fellow of Building and Construction University of Newcastle

Visiting Fellow Christopher Bulmer FAIB Visiting Fellow of Building and Construction - University of Technology Sydney

Visiting Fellow Matthew Bourne FAIB Visiting Fellow of Building and Construction - University of Technology Sydney

Visiting Fellow Ric Wang FAIB Visiting Fellow of Building and Construction - University of Technology Sydney

Honorary Fellow Norman Faifer FAIB FAIQS FIAMA Honorary Fellow of Building and Construction - Deakin University

Honorary Associate David Beslich FAIB Honorary Associate of Building and Construction - University of Technology Sydney

Adjunct Fellow Alan Pizzey AM LFAIB FAICD Adjunct Fellow of Building – Holmesglen

Adjunct Fellow Ron Beslich OAM FAIB FAICD Adjunct Fellow of Building - Holmesglen

Adjunct Fellow Jeremy Whitehead FAIB Adjunct Fellow of Building - Holmesglen

Adjunct Fellow Efy Karagiannis FAIB MAICD. Adjunct Fellow of Building – Holmesglen

Senior Visiting Adjunct Fellow Paul Heather FAIB Senior Visiting Adjunct Fellow – University of Western Sydney

Adjunct Fellow George Bardas FAIB Adjunct Fellow of Building, Engineering and Construction - University of Western Sydney

Adjunct Fellow Bill Stavrinos FAIB Adjunct Fellow of Building, Engineering and Construction - University of Western Sydney

Professor John Woollett FAIB Adjunct Professor of Building and Construction – University of New South Wales and Adjunct Professor of Building and Construction – University of Technology Sydney.

Professor Medy Hassan FAIB Adjunct Professor of Building and Construction Management - R.M.I.T. University

Adjunct Fellow Frank Farina FAIB Adjunct Fellow of Building and Construction - University of Western Sydney

Associate Professor Robert Wildermuth FAIB FAIQS ICECA MAICD Adjunct Associate Professor of Quantity Surveying and Construction - University of Southern Queensland

Adjunct Fellow Andrew Marshall FAIB MAICD Adjunct Fellow of Building and Construction – University of South Australia

Adjunct Fellow Brenton Trenorden FAIB Adjunct Fellow of Building and Construction – University of South Australia

Adjunct Fellow Stuart White FAIB Adjunct Fellow of Building and Construction – University of South Australia

Associate Professor Anthony Avsec FAIB Conjoint Associate Professor of Construction Project Management and Quantity Surveying Queensland University of Technology

Associate Professor Penelope Galbraith FAIB Conjoint Associate Professor of Construction Management and building surveying – University of Newcastle

Adjunct Professor Robert Whittaker AM FAIB Adjunct Professor of Building and Construction University of Canberra


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AIB Continuing Professional Development Program Events

State Project Name Date ACT Liquidated Damages in Building Contracts with Sir Anthony Mason 6/05/2014 ACT CV Writing and Interview Techniques 28/08/2014 ACT ACT Construction Bus Tour 17/09/2014 ACT Meyer Vandenberg Networking Event 26/11/2014 ACT YBA End of Year Event 5/12/2015 ACT AIB Boardroom Lunch 18/12/2015 VIC SHRINE 0 Galleries of Remembrance Site Visit 10/04/2014 VIC Eminent Speaker Jose Torero - How do Buildings Burn 3/09/2014 VIC Eminent Speaker - Glenn Palin 22/09/2014 VIC Eminent Speaker Dr. Ron Silberberg 23/09/2014 VIC VIC President's Christmas Drinks 17/12/2014 NSW Mental Health First Aid One-Day Workshop 29/05/2014 NSW Mental Health First Aid Half-Day Student Workshop 28/05/2014 NSW THE FUTURE IS HERE - BIM/Field Technology Construction Update 18/08/2014 NSW Christmas Shout 2014 3/12/2014 NSW AIB Industry Seminar - Safety in Design 11/03/2015 QLD The ELF2B project - Enoggera Army Barracks 15/05/2014 QLD QLD State of Origin - Game Three 9/07/2014 QLD Building Connections 26/09/2014 QLD 1 Williams Street - Project Overview 6/11/2014 QLD QLD Presidents Drinks 2014 4/12/2014 QLD Queensland Construction Outlook 26/02/2015 QLD AIB Building Connections 27/02/2015 SA Adelaide Convention Centre Redevelopment 29/04/2014 SA Personal Property Securities Act 25/06/2014 SA BIM in Practice in South Australia 28/08/2014 SA City of Adelaide Clipper Ship 19/11/2014 SA AIB SA Christmas Drinks 27/11/2014 SA Sustainable Business Modelling 26/02/2015 WA Save the Date - Meet and Greet 3/04/2014 WA Brookfield Place Tower 2 Site Visit 28/08/2014 WA 999 Hay Street Site Visit 18/09/2014 WA AIB Connect - 2014 Meet the Bosses 23/10/2014 WA Building the West - Managing the Challenges Ahead 24/10/2014 WA Safety in Context - A stakeholder Dialogue 16/12/2014 WA 2015 PEA Assessment Criteria Workshop 4/02/2015 WA City of Perth Library and Plaza Tour 18/02/2015 TAS TAS - Barangaroo Project Event 19/06/2014 TAS Macquarie Point and Tasmanian Training Opportunities 20/08/2014 TAS 2014 President's Christmas Drinks TAS 3/12/2014 National Workshop on Risk Management for Built Environment Industry 29/01/2015 National Successful prolongation claim under an SIA building Contract 30/01/2015

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Industry and Government Liaison SUBMISSIONS made on behalf of AIB members:

• Professional Engineers and Other Legislation Amendment Bill 2014 • Building and Construction Industry Payments Bill 2014 • NSW Home Building Regulation 2014 • Queensland Building and Construction Commission and Other Legislation Amendment Bill 2014 • WA Review of Construction Contracts Act 2004 • External review of the Building Act 1975 and building certification in Queensland • 2015-16 Federal Pre-Budget submission • A Federal Budget Summary for Construction Professionals was provided to all AIB members

MEDIA ANNOUNCEMENTS released on behalf of AIB members:

• Professional Builders Gives Thumbs Up to Free NCC • AIB Welcomes Changes to Qld Payment Disputes Legislation • Chartered Builders Welcome HIA Report Housing Australia’s Future • Chartered Builders Applaud NT Advisory Council to reduce construction red tape • Restore the ABCC now say Professional Builders • AIB Announces National Professional Excellence in Building Awards and The 2014 AIB Building

Professionals of the Year LIAISON WITH EXTERNAL STAKEHOLDERS undertaken on behalf of the AIB

• Minister for Education, Rt Hon Christopher Pyne MP • Minister for Industrial Relations, Rt Hon Eric Abetz MP • Palmer United Party Senators and MP • Department of Infrastructure • Department of Industry • Fair Work Ombudsman • Queensland Parliament • Tasmanian Department of Justice • Air Conditioning and Mechanical Contractors • Australasian Procurement & Construction Council • Australian Construction Industry Forum • Australian Sustainable Built Environment Council • Construction and Property Services Industry Skills Council • Mates In Construction • National Precast Concrete Association Australia • Queensland Building & Construction Commission • Real Estate Institute of Australia • Safe Work Australia • Standards Australia • Victorian Building Authority • ACT Directorate of Environment and Planning • Queensland Building and Construction Commission


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Professional Excellence in Building

The 2014 Professional Excellence in Building Awards was again a great success not only for the AIB, but for the profession and the industry. The judging panel had to consider a record number of nominations and was impressed by the high standard of submissions. There were 97 nominations in total received. Below is a break-down for each state:

• ACT – 5 nominations • NSW – 17 nominations • QLD – 14 nominations • SA/NT – 19 nominations

• TAS – 0 nomination • VIC – 19 nominations • WA – 23 nominations

The number of people that attended the Professional Excellence Awards Dinner’s in each state:

• ACT – 93 attendees • NSW – 217 attendees • QLD – 149 attendees • SA – 120 attendees

• VIC – 116 attendees • WA – 259 attendees • National (Melbourne) – 210

The 2014 AIB Building Professional of the Year was awarded to Mr Hylton Bloch and Mr Mark Plummer FAIB

Sponsorships Again this year the AIB was very fortunate to partner with a considerable number of high profile and professional entities where the two brands of professional service and respect matched.

National Cbus Lahey Constructions OneSteel Reinforcing Pty Limited Titan Cranes

Chapter ABS West Access Rental Arcreo Aston Recruitment Austech Facades Austral Bricks AWT Consulting Engineers

Building Commission Construction Skills Queensland CSSP Pty Ltd D+D Properrty Group Fairbrother Hansen Yuncken (NSW) Hays

Hebel Incolink Instant Waste Management John Holland Kennards Hire Lynch & Meyer Solicitors Leighton Contractors

MacDougalls Digital Printing Lynch & Meyer Solicitors MacDougalls Digital Printing Maesbury Plumbers Meyer Vandenberg Onesteel Reinforcing (ACT) OneSteel Reinforcing (SA) Perkins Builders Pyramid Constructions Rosenlund Contractors Samaras Group Sarah Group Sparke Helmore Lawyers Speedpro Stramit Building Products Tasmanian Building & Construction Industry Training Board Titan Cranes Tracey Brunstrom & Hammond Pty Ltd Victorian Building Authority Watpac Construction Pty Ltd Wiseworking

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Overview of the Financial Performance

The Financial Statements of the Australian Institute of Building (AIB) for the 12 months ended 31 March 2015 are presented on the following pages for the information of members. These statements have been audited by the AIB’s auditors, Duesburys Nexia and the audit report is unqualified. The AIB’s operations for the reporting year resulted in a surplus of $113,139 after taking account of the increment in value of the AIB’s long term investments.

This was a significant improvement on the previous year’s result of a deficit of $54,889, achieved by means of significant fiscal constraint exercised by the Council and Management Total Income increased by 11.8% ($128,171) with the variance in sponsorship, membership, investment and event income. Expenditure was contained with a continued decrease in operational expenditure down 6.8% ($86,039) on the previous year.


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AIB National Council (From September 2014)

Norman Faifer National President

Robert Whittaker Immediate Past National President

Paul Heather National Senior Vice President

Ron Webber National Vice President

Graham Teede National Vice President

Ian Cumming Australian Capital Territory Chapter Representative

William Mansell New South Wales Chapter Representative

John Gaskin Queensland Chapter Representative

Geoff Penley South Australia Chapter Representative

Darren Jones Tasmania Chapter President

David Burnell Victoria Chapter Representative

Frank Dilizia Western Australia Chapter Representative

Robin Fardoulys Overseas Chapter Representative

King Wong Hong Kong Chapter Representative

Courses Assessment Committee (AIB-CAC) Chair – Dr Ron Webber

Education Committee (AIB-EDU) Chair – Col Ian Cumming

Industry & Government Liaison Committee (AIB-IGL) Chair – Mr John Gaskin

External Appointments and Awards Committee (AIB-EAA) Chair – Mr Greg McLean

Membership Services Committee (AIB-MSC) Chair – Mr Graham Teede

Finance and Investments Committee (AIB-FIC) Chair – Mr Paul Heather

Events and Sponsorship Committee (AIB-ESC) Chair – Mr Damian Rogers

Governance and Risk Committee (AIB-GRC) Chair – Mr David Burnell

National Building Professionals Register Registrar – Mr Robert Whittaker

Australian Institute of Building

ABN: 38 794 377 472

Financial Statements

For the Year Ended 31 March 2015

Australian Institute of BuildingABN: 38 794 377 472

Contents

31 March 2015

Page

Financial Statements

National Council Report 1

Statement of Comprehensive Income 3

Statement of Financial Position 4

Statement of Changes in Equity 5

Statement of Cash Flows 6

Notes to the Financial Statements 7

Councillors' Declaration 18

Independent Auditor's Report 19


National Council Report

31 March 2015

The National Council of The Australian Institute of Building (the Insitute) report as follows:

Names of Councillors

The names of each Councillor, responsibile for the financial affairs of the Institute, of the National Council of the Instituteduring the year ended 31 March 2015 or, if different, at the date of this report, are:

Name Position

Norman Faifer FAIB National President

Robert Whittaker AM FAIB Immediate Past National PresidentDavid Burnell MAIB Councillor - VictoriaIan Cumming CSC FAIB Councillor - Australian Capital TerritoryFrank Dilizia FAIB Councillor - Western Australia (Appointed 20 September 2014)Robin Fardoulys LFAIB Councillor - OverseasJohn Gaskin MAIB Councillor - QueenslandPaul Heather FAIB National Senior Vice-President Darren Jones FAIB Councillor - TasmaniaLap Wa Lam MAIB Councillor - Hong Kong (Retired 20 September 2014)Gregory McLean FAIB Immediate Past National President (Retired 20 September 2014)William Mansell FAIB Councillor - New South Wales (Appointed 20 September 2014)Geoff Penley FAIB Councillor - South Australia Damien Rogers FAIB National Vice President (Retired 20 September 2014)Graham Teede FAIB Councillor - Western Australia Ron Webber FAIB National Vice President King Wong FAIB Councillor - Hong Kong (Appointed 20 Sepetember 2014)

Operating Result

The Institute's surplus for the year before income tax, doubtful debts and other comprehensive income was $49,804 (2014:deficit of $164,406). No income tax expense has been provided as the institute is tax exempt.

Principal Activities

The principal activity of the Institute is as an association of the building professionals engaged in building practice, teachingor research throughout Australia and overseas.

The objectives of the Institute are:

to promote excellence in the construction of buildings and just and honourable practices in the conduct of

business;

to advance the study of building and all kindred matters, arts and sciences;

to encourage the friendly exchange between members of knowledge in practical, technical and ethical

subjects; and

to uphold the dignity of the profession of building and the status of the Institute.

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National Council Report

31 March 2015

Event After the Reporting Period

There has not been any matter or circumstance, other than referred to in the financial statements or notes thereto, that hasarisen since the end fo the financial year, that has significantly affected or may significantly affect the operations of theInstitute, the result of those operations, or the state of affairs of the Institute in future financial years.

Signed in accordance with a resolution of the National Council:

Dated:

Canberra

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Statement of Comprehensive Income


Note

2015

$

2014

$

Revenue

Awards, conferences and events 2 423,851 422,020

Interest and investment income 39,068 49,858

Memberships 577,772 574,959

Merchandise sales 2,048 1,488

Sundry income 171,266 37,509

1,214,005 1,085,834

Expenses

Awards, conferences and events 266,520 279,656

Bad debts - 1,177

Communication and utilities 54,154 31,501

Cost of sales 1,212 -

Depreciation and amortisation expense 28,868 33,517

Employee benefits expense 379,696 449,766

Head office operational review - 48,499

Marketing and promotion 55,316 25,676

Travel and accomodation 43,127 38,168

Office administration expenses 196,260 245,804

Other expenses 139,048 96,476

1,164,201 1,250,240

Surplus/(deficit) before income tax and doubtful debts expenses 49,804 (164,406)

Doubtful debts expense (College of Building) 11,750 8,946

38,054 (173,352)

Income tax expense 1(a) - -

Surplus/(deficit) for the year 38,054 (173,352)

Other comprehensive income:

Items that will be reclassified subsequently to profit or loss whenspecific conditions are met:

Increment on revaluation of available-for-sale investments 75,085 118,463

Total other comprehensive income 75,085 118,463

Total comprehensive surplus/(loss) for the year 113,139 (54,889)

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Statement of Financial Position

As At 31 March 2015

Note

2015

$

2014

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 3 124,826 370,382

Financial assets 4 93,000 59,000

Trade and other receivables 5 34,624 29,893

Inventories 6 6,232 4,472

Other assets 7 90,834 28,766

Loan to related party 8 - -

TOTAL CURRENT ASSETS 349,516 492,513

NON-CURRENT ASSETS

Financial assets 4 854,538 1,058,914

Plant and equipment 9 31,050 6,249

Intangible assets 10 29,604 52,342

TOTAL NON-CURRENT ASSETS 915,192 1,117,505

TOTAL ASSETS 1,264,708 1,610,018

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 11 126,970 69,090

Borrowings 12 - 259,064

Provisions 13 20,645 13,331

Other liabilities 14 352,749 484,511

TOTAL CURRENT LIABILITIES 500,364 825,996

NON-CURRENT LIABILITIES

Provisions 13 12,177 -

Other liabilities 14 117,804 111,869

TOTAL NON-CURRENT LIABILITIES 129,981 111,869

TOTAL LIABILITIES 630,345 937,865

NET ASSETS 634,363 672,153

EQUITY

Asset revaluation reserve 302,032 377,876

Retained surplus 332,331 294,277

TOTAL EQUITY 634,363 672,153

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Statement of Changes in Equity


2015

Assetrevaluation

reserve

$

Retainedsurplus

$

Total

$

Balance at 1 April 2014 377,876 294,277 672,153

Surplus for the year - 38,054 38,054

Net revaluation increment 75,085 - 75,085

Cumulative gain reclassified to profit or losson sale of available for sale financial assets (150,929) - (150,929)

Balance at 31 March 2015 302,032 332,331 634,363

2014

Assetrevaluation

reserve

$

Retainedsurplus

$

Total

$

Balance at 1 April 2013 259,413 467,629 727,042

(Deficit) for the year - (173,352) (173,352)

Revaluation increment 118,463 - 118,463

Balance at 31 March 2014 377,876 294,277 672,153

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Statement of Cash Flows


Note

2015

$

2014

$

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and members 981,842 1,445,861

Payments to suppliers and employees (1,211,469) (1,241,808)

Investment income received 28,206 61,070

Interest received 3,546 27

Net cash (used in)/provided by operating activities (197,875) 265,150

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of intangible assets - (7,600)

Purchase of plant and equipment (30,931) -

Payment for held-to-maturity investments (34,000) -

Payment for available for sale assets (145,030) -

Proceeds from disposal of available-for-sale assets 421,344 -

Net cash provided by/(used in) investing activities 211,383 (7,600)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from borrowings - 93,988

Repayment of borrowings (259,064) -

Net cash (used in)/provided by financing activities (259,064) 93,988

Net increase (decrease) in cash and cash equivalents held (245,556) 351,538

Cash and cash equivalents at beginning of year 370,382 18,844

Cash and cash equivalents at end of financial year 3 124,826 370,382

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Notes to the Financial Statements


1 Summary of Significant Accounting Policies

Basis of preparation

The Australian Institute of Building (the Institute) has elected to adopt the Australian Accounting Standards - ReducedDisclosure Requirements (established by AASB 1053 Application of Tiers of Australian Accounting Standards and AASB2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements).

The financial statements are general purpose financial statements that have been prepared in accordance with AustralianAccounting Standards (Reduced Disclosure Requirements of the Australian Accounting Standards Board), and otherauthoritative pronouncements of the Australian Accounting Standards Board.

The Institute is a body incorporated in Australia by Royal Charter. The financial statements cover the Institute as anindividual entity.

A number of new revised Australian Accounting Standards are effective for the first time in the current financial year. Thesestandards have had no material impact on the entity.

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

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

Accounting Policies

(a) Income tax

The Institute is a tax exempt body under relevant provisions of the Income Tax Assessment Act, 1997.

(b) Inventories

Inventories are measured at lower of cost or net realisable value. The cost includes direct materials, direct labour andan appropriate portion of variable and fixed overheads. Overheads are applied on the basis of normal operatingcapacity. Costs are assigned on the basis of weighted average costs.

(c) Plant and equipment

Each class of plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulateddepreciation and impairment losses.

Where a revaluation has been performed, any accumulated depreciation at the date of the revaluation is eliminatedagainst the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

The carrying amount of plant and equipment is reviewed at the end of the reporting period to ensure it is not in excessof the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected netcash flows that will be received from the assets’ employment and subsequent disposal. The expected net cash flowshave been discounted to their present values in determining recoverable amounts.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount isgreater than its estimated recoverable amount.

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1 Summary of Significant Accounting Policies (continued)

(c) Plant and equipment (continued)

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, onlywhen it is probable that future economic benefits associated with the item will flow to the Institute and the cost of theitem can be measured reliably. All other costs (eg. repairs and maintenance) are charged to the statement ofcomprehensive income during the financial period in which they are incurred.

Increases in the carrying amount arising on revaluation of assets are credited to a revaluation reserve and recognisedin other comprehensive income. Decreases that offset previous increases of the same asset are charged against fairvalue reserves and recognised in other comprehensive income. All other decreases are charged to the profit or loss.

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of the reportingperiod.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains andlosses are included in the profit or loss. When revalued assets are sold, amounts included in the revaluation reserverelating to that asset are transferred to retained earnings.

Depreciation

The depreciable amount of all fixed assets is depreciated on either a straight line or diminishing value basis over theirestimated useful lives to the entity commencing from the time the asset is held ready for use. Leasehold improvementsare depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of theimprovements.

Depreciation is provided on plant and equipment on a straight line basis.

Class of Fixed Asset Depreciation Rate

Office furniture and equipment 12.50% - 50.0%

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

(d) Intangible assets

The intangible assets are related to the capitalisation of expenditure incurred in the acquisition and installation of adatabase system. The intangible assets are carried at cost less, where applicable, any amortisation allowance andimpairment losses.

The carrying amount of the assets is reviewed at the end of the reporting period to ensure it is not in excess of therecoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cashflows that will be received from the assets’ employment and subsequent disposal. The expected net cash flows havebeen discounted to their present values in determining recoverable amounts.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount isgreater than its estimated recoverable amount.

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(d) Intangible assets (continued)

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, onlywhen it is probable that future economic benefits associated with the item will flow to the Institute and the cost of theitem can be measured reliably. All other costs (eg. training and maintenance) are charged to the statement ofcomprehensive income during the financial period in which they are incurred.

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of the reportingperiod.

The amortisable amounts of all externally acquired intangibles assets are amortised on a straight line basis over theirestimated useful lives to the entity commencing from the time the asset is held ready for use.

The intangible assets have a finite life and are amortised on a straight line basis:

Class of Asset Amortisation RateDatabase 20%Online CPD website 20%

(e) Leases

Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not thelegal ownership that are transferred to the Institute are classified as finance leases.

Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair valueof the leased property or the present value of the minimum lease payments, including any guaranteed residual values.Lease payments are allocated between the reduction of the lease liability and the lease interest expense for thatperiod.

Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that theInstitute will obtain ownership of the asset or over the term of the lease.

Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, arecharged as expenses on a straight-line basis over the life of the lease term.

Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over thelife of the lease term.

(f) Financial instruments

RecognitionFinancial instruments are initially measured at cost on trade date, which includes transaction costs, when the relatedcontractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set outbelow.

Financial assets at fair value through profit or lossA financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if sodesignated by management and within the requirements of AASB 139 - Financial Instruments: Recognition andMeasurement. Gains and losses arising from changes in the fair value of these assets are included in the profit or lossin the period in which they arise.

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(f) Financial instruments (continued)

Loans and receivablesLoans and receivables are financial assets with fixed or determinable payments and are stated at amortised cost usingthe effective interest rate method.

Held-to-maturity investmentsThese investments have fixed maturities, and it is the intention to hold these investments to maturity. Any held-to-maturity investments held are stated at amortised cost using the effective interest rate method.

Available-for-sale financial assetsAvailable-for-sale financial assets include any financial assets not included in the above categories. Available-for-salefinancial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value arerecognised in other comprehensive income and accumulated in the investment revaluation reserve.

Financial liabilitiesFinancial liabilities are recognised at amortised cost, comprising original debt less principal payments andamortisation.

Fair valueFair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied todetermine the fair value for all unlisted securities, including recent arm's length transactions, reference to similarinstruments and option pricing models.

ImpairmentAt the end of the reporting period, an assessment is made of whether there is objective evidence that a financialinstrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the valueof the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised inthe profit or loss.

(g) Impairment of assets

At the end of the reporting period, the carrying values of tangible and intangible assets are reviewed to determinewhether there is any indication that those assets have been impaired. If such an indication exists, the recoverableamount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to theasset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the profitor loss.

Where it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of the cashgenerating unit (CGU) to which the asset belongs is estimated.

(h) Employee benefits

Provision is made for the Institute's liability for employee benefits arising from services rendered by employees to theend of the reporting period. Employee benefits that are expected to be settled within one year have been measured atthe amounts expected to be paid when the liability is settled.

Employee benefits payable later than one year have been measured at the present value of the estimated future cashoutflows to be made for those benefits. In determining the liability, consideration is given to employee wage increasesand the probability that the employee may satisfy vesting requirements. Those cashflows are discounted using marketyields on national government bonds with terms to maturity that match the expected timing of cashflows.

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(i) Provisions

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

(j) Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquidinvestments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown withinshort-term borrowings in current liabilities on the statement of financial position.

(k) Revenue

Revenue from the membership subscriptions is recognised on an accruals basis in accordance with the substance ofthe relevant agreement.

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

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

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financialassets.

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

(l) Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurredis not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of thecost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement offinancial position are shown inclusive of GST.

Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investingand financing activities, which are disclosed as operating cash flows.

(m) Comparative figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes inpresentation for the current financial year.

Critical accounting estimates and judgements

The Councillors evaluate estimates and judgements incorporated into the financial statements based on historicalknowledge and best available current information. Estimates assume a reasonable expectation of future events and arebased on current trends and economic data, obtained both externally and within the Institute.

The Councillors do not believe that there were any key estimates or key judgements used in the development of thefinancial statements that give rise to a significant risk of material adjustment in the future.

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2 Awards, Conferences and Events Income

2015

$

2014

$

Attendance, registration and certificate sales 131,600 143,135

Nomination fees 89,001 75,907

Sponsorship 169,116 191,058

Other income 34,134 11,920

423,851 422,020

3 Cash and Cash Equivalents

2015

$

2014

$

Cash at bank 123,615 370,129

Cash on hand 1,211 253

124,826 370,382

4 Financial Assets

2015

$

2014

$

Current

Held-to-maturity financial assets 93,000 59,000

Non-current

Available-for-sale financial assets 854,538 1,058,914

The held-to-maturity investments are made up of term deposits with initial terms to maturity of twelve months.

The available-for-sale investments held by the Institute are subject to the advice of independent professional financialadvisers, and include listed and unlisted securities that are convertible into cash in the short term at the prevailingmarket price which may fluctuate.

5 Trade and Other Receivables

2015

$

2014

$

Trade receivables 27,308 17,058

Other receivables 7,316 12,835

34,624 29,893

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6 Inventories

2015

$

2014

$

Merchandise 6,232 4,472

7 Other Assets

2015

$

2014

$

Prepayments 90,834 28,766

8 Loan to Related Party

2015

$

2014

$

Loan to College of Building 73,964 62,335

Less: Provision for doubtful debt (73,964) (62,335)

- -

9 Plant and Equipment

2015

$

2014

$

Office furniture and equipment 163,680 186,449

Less: Accumulated depreciation (132,630) (180,200)

31,050 6,249

Movements in Carrying Amounts

Movement in the carrying amounts for each class of plant and equipment between the beginning and the end of thecurrent financial year:

OfficeFurniture and

Equipment

$

Total

$

Balance at the beginning of the year 6,249 6,249

Additions 30,931 30,931

Depreciation expense (6,130) (6,130)

Balance at the end of the year 31,050 31,050

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10 Intangible Assets

2015

$

2014

$

Database 82,390 82,390

Less: Amortisation allowance (76,265) (59,788)

6,125 22,602

Online CPD website 31,305 31,305

Less: Amortisation allowance (7,826) (1,565)

23,479 29,740

29,604 52,342

Database

$

Online CPD Website

$

Total

$

Year ended 31 March 2015

Balance at the beginning of the year 22,602 29,740 52,342

Amortisation expense (16,477) (6,261) (22,738)

Balance at the end of the year 6,125 23,479 29,604

11 Trade and Other Payables

2015

$

2014

$

Trade payables 73,817 10,746

Other payables 53,153 58,344

126,970 69,090

12 Borrowings

2015

$

2014

$

Current

Secured liabilities:

Morgan Stanley loan - 259,064

- 259,064

The loan from Morgan Stanley was fully repaid during the current year. The interest rate applicable on this loan at theend of the 2014 financial year was 7.04%.

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13 Provisions

2015

$

2014

$

Current

Provision for annual leave 20,645 13,331

Non-current

Provision for long service leave 12,177 -

14 Other Liabilities

2015

$

2014

$

Current

Unearned revenue 352,749 484,511

Non-Current

Other trust liabilities 117,804 111,869

The trust liabilities are related to specific fund for the Research and Education Foundation Trust (REFT), and specialpurpose distributions from like entities.

15 Related Party Disclosures

(a) The Councillors and their related entities transact with the Institute from time to time on normal terms and conditionsthat are no more favourable than those available to others. The types of transactions involved include those that areprovided by the Institute as part of its normal operations. The transactions are settled at the time of the transaction, andno amounts are owing to the Institute at year end in respect of these transactions. The total value of these transactionsis low and is considered by the institute to be immaterial.

With the exception of compensation of key management personnel, which is separately disclosed in these statements,there were no other related party transactions during the financial year.

(b) The Institute has paid premiums in respect of a contract insuring all the Councillors of the Institute against a liabilityincurred in their role as Councillors of the Institute.

The total amount of insurance contract premiums paid was $3,900 (2014:$3,152), which is included in keymanagement personnel compensation below.

No Councillor of the Institute received or became entitled to receive any other remuneration for services renderedexcept for insurance premiums paid by the Institute on behalf of Councillors.

16 Key Management Personnel Compensation

Key Management personnel is defined by AASB 124 "Related Party Disclosures" as those persons having authorityand responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including anyCouncillor of the entity.

The totals of remuneration paid to the key management personnel of Australian Institute of Building during the yearare:

2015

$

2014

$

Total key management personnel compensation 165,456 158,004

15

Australian Institute of Building ABN: 38 794 377 472

Notes to the Financial Statements For the Year Ended 31 March 2015

16

17 Expenditure Commitments

Operating lease commitments

Non-cancellable operating leases contracted for but not capitalised in the financial statements:

2015

$

2014

$

Payable - minimum lease payments:

- not later than one year 51,949 27,550

- later than one year but not later than five years 188,383 -

240,332 27,550

The above commitments are in relation to the leasing of premises.

18 Financial Risk Management

The Institute's financial instruments consist mainly of deposits with banks, held-to-maturity investments, available-for-sale investments and accounts receivable and payable.

The Institute is not subject to any significant liquidity, credit or interest rate risk.

The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows:

Note

2015

$

2014

$

Financial Assets

Cash and cash equivalents 3 124,826 370,382

Financial assets 4 947,538 1,117,914

Loans and receivables 5 34,624 29,893

Total financial assets 1,106,988 1,518,189

Financial Liabilities

Financial liabilities at amortised cost

- Trade and other payables 11 126,970 69,090

- Borrowings 12 - 259,064

- Other liabilities 14 117,804 111,869

Total financial liabilities 244,774 440,023

Net fair values

Financial assets and financial liabilities are carried at their net fair value at the end of the reporting period. The carrying values of financial assets and financial liabilities approximate their net fair values due to their short terms to maturity or market interest rates. No financial assets or financial liabilities are traded on organised markets in standardised form.




19 Segment reporting

The principal activity of the Institute is as an association of building professionals, associate professionals andtechnicians engaged in building practice, teaching or research throughout Australia and overseas.

20 Events Occurring After the Reporting Period

The financial statements were authorised for issue by the Councillors on the date of signing the attached Councillors'Declaration. The Councillors have the right to amend the financial statements after they have been issued.

There are no events after the reporting period that have a significant effect on the financial statements.

21 Contingent Liabilities and Contingent Assets

Contingent liabilities represent items that, at 31 March 2015, are not recognised in the Statement of Financial Positionbecause there is significant uncertainty at that date as to the necessity for the entity to receive or make payments inrespect of them.

The institute is currently in negotiations with a company regarding the institute’s application on two trademarks with IPAustralia. The appeal with IP Australia has been adjourned until 11 September 2015. To date the institute hasincurred $60,568 in legal costs defending their two trademarks with IP Australia.

On the basis of the evidence available when the financial statements were approved, there is no material contingentliability at the end of the reporting period.

17


Councillors' Declaration

The Councillors declare that the financial statements comprising the attached Statement of Financial Position, Statement ofComprehensive Income, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Financial Statements:

a. have been prepared in accordance with Accounting Standards- Reduced Disclosure Requirements; and

b. give a true and fair view of the financial position as at 31 March 2015 and of its performance, as represented bythe results of its operations and its cash flows, for the financial year ended on that date.

In the Councillors' opinion,

a. there are reasonable grounds to believe that the Institute will be able to pay its debts as and when they become dueand payable.

This declaration is made in accordance with a resolution of Councillors.

Dated

18

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Norman Faifer FAIB FAIQS FIAMAPaul Heather FAIB National PresidentNational Senior Vice President

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25 June 2015

robert.hunt

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robert.hunt

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Street Address Unit 10, Building C

Trevor Pearcey House Traeger Court

28-34 Thynne Street BRUCE ACT 2617

Postal Address PO Box 705

JAMISON ACT 2614

Email: [email protected] Phone: (02) 6253 1100

Fax: (02) 6253 4411

Documents

Australian Institute of Building Annual Report For the ... · ACT CV Writing and Interview Techniques 28/08/2014 ACT ACT Construction Bus Tour 17/09/2014 ACT Meyer Vandenberg Networking