13-14 activity report · company secretary – appointed 6 december 2012 director, vicsuper pty ltd...

ANNUALREPORT20

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ACTIVITYREPORT20

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YOUR BUSINESS | YOUR INDUSTRY | YOUR PEOPLE

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VICTORIAN TOURISM INDUSTRY LIMITED ABN 85 152 248 541

VTI LIMITED

Contents

Chair’s message 3

Chief Executive’s operating report 4

Directors’ report 6

Auditor’s independence declaration 10

Statement of comprehensive income 11

Statement of financial position 12

Statement of changes in equity 13

Statement of cash flows 14

Notes to the financial statements 15

Directors’ declaration 24

Independent auditor’s report 25

Acknowledgements 27

VTI LIMITED ANNUAL REPORTFor the year ended 30 June 2014

Victorian Tourism Industry LimitedABN 85 152 248 541

486 Albert Street, East Melbourne, VIC 3002Tel: 03 8662 5425 | Fax: 03 8662 5449Email: [email protected] | www.vtic.com.au

VTI Limited Industry Partners

Corporate Partners

Image courtesy of Melbourne Star Observation Wheel

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VTI LIMITED

For a long time now, Victoria has led the way in tourism and events. A key part of this success has been the collaborative approach of industry and government. VTIC often has to tread a fine line, knowing that this collaboration is vital but also doing our job as the peak industry body to voice member concerns, raise issues and call the play as we see it.

VTIC’s ability to manage this balancing act is one of the organisation’s great strengths. On behalf of the VTIC Board I commend the work of Dianne Smith and her team for their tireless efforts in raising the profile of our industry among key decision makers, and promoting the economic and social value of our industry to the state of Victoria.

In addition to strong advocacy work, VTIC has delivered a substantial industry events calendar, especially notable for the small team that continues to deliver quality industry development and policy-driven events. Nonetheless, continuous improvement is essential and I applaud the team’s commitment to innovation and finding new ways to add value for members, essential if the organisation is to grow and thrive.

As we reflect on the year that has been, I must acknowledge the sad passing of a dear friend and VTIC Life Member, Rhonda Rust. “Rusty”, as she was known to so many of us, was an industry stalwart and one of its greatest proponents. Her passion for tourism was infectious and she will be sorely missed.

I also acknowledge VECCI Chief Executive Mark Stone; VTIC’s ongoing relationship with VECCI has strengthened over time and we look forward to further collaboration into the future.

Lastly I offer my sincere thanks to my Board colleagues for contributing their time and lending their support to this organisation. I am particularly pleased to announce that we will induct Board Director, and former Chair of Tourism Alliance Victoria, Matthew Noble, as a Life Member at the 2014 Annual General Meeting.

Jeremy Johnson Chair

CHAIR’S MESSAGE

VTI LIMITED ANNUAL REPORT4 2013/2014

VTI LIMITED 2013-14 ANNUAL REPORT

Having worked hard on the consolidation of VTIC and the establishment of the Policy Committees, VTIC has in 2013-14 endeavoured to sharpen its focus on our members – the people and businesses who are the lifeblood of this organisation. We do this through two key activities – by providing a united voice for the industry and by connecting our members with government, with each other, and with experts, all of whom can help grow and develop member businesses.

VTIC was established on the premise of providing One Voice for tourism in Victoria and 2014 saw us roll out our first long-term pre-election campaign. Drawing on specially commissioned research we developed a policy agenda with five key platforms which are reasonable, achievable and jobs-focussed. Our agenda has aimed to improve the intrastate marketing of Victoria; support growth of medium sized, regional events; boost visitation from Asian markets; get small businesses online; and address capacity constraints, and grow Melbourne sustainably. Our message to both parties is simple: tourism equals jobs. We eagerly anticipate the outcome of the November state election.

In addition to this campaign we advocated for the re-instatement of the Survey of Tourist Accommodation; the extension of the contract for the Formula One Australian Grand Prix; the expansion of the Free CBD Tram Travel Zone; Tourism Refund Scheme reform; uncapping of airline seats from China during select major events; red tape reforms for Segway tours; ensuring tourism is supported during both state and federal budgets; and level playing field issues relating to freedom camping and Airbnb, driven through the Policy Committee process.

Providing forums for our members to connect and network is VTIC’s other key activity. We do this through our Policy Committees and our substantial calendar of events. Our major functions for 2013-14 included the Tourism and Events Excellence Conference; the annual Visitor Information Centre Summit; Victoria Tourism Week featuring the Leadership Dinner with Tony Wheeler and the Student Summit; and the Industry Christmas Party, partnering with Destination Melbourne and Melbourne Convention Bureau. We also hosted a range of policy driven events such as the Ideas Forum; ACCC Forum; and premium member lunches

with The Right Hon. Lord Mayor Robert Doyle and Shadow Minister for Tourism John Eren MP.

In 2013-14 VTIC continued its membership of the National Tourism Alliance. This provides an avenue to advocate on issues at a national level, for example, the freezing the Passenger Movement Charge and the administration of federal programs such as the TQUAL accreditation scheme and the Export Market Development Grant program. Another example of VTIC’s activity on a national issue is our leading participation in the Tourism Shopping Reform Group, which proposes enhancements to the current Tourist Refund Scheme.

As a result of both our events and our advocacy efforts VTIC has garnered significant media coverage this year, building our public profile, and more importantly, raising the profile of the industry as a whole. Our partnership with Prime 7 is a key channel for us to deliver our message that “Tourism is everybody’s business”.

VTIC also works to support member businesses through a suite of professional development awards and the delivery of fee-for-service contracts contributing to industry development. In 2013-14 VTIC was delighted to award the Lynette Bergin Tourism Fellowship to Natalie Duke; and the Small Business Award to Rachel Donovan.

Awards are also a big part of the VTIC’s General Service Agreement with Tourism Victoria. Delivery of the preparatory workshops and mentoring program for the Victorian Tourism Awards is a major element of this fee-for-service program, along with the administration and facilitation of the Victorian Visitor Information Centre Reference Group and the Visitor Information Centre Summit. Other fee-for-service contracts delivered by VTIC include management of Business Events Victoria and Cultural Tourism Victoria, and facilitation and support of the Young Tourism Network.

In a first for VTIC, we were delighted with our successful application for the Federal Government’s T-QUAL Tourism Quality Projects Funding Program. Our project, “Online Tools for Better Visitor Servicing” has commenced and we believe this will be the start of a suite of industry development tools that can be further developed and

CHIEF EXECUTIVE’S OPERATING REPORT

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expanded into the future to meet the ever-changing needs of businesses in the visitor economy.

Organisations are living entities and they grow and change over time. The VTIC team experienced several significant staff changes throughout 2013-14 and this is reflected somewhat in our membership numbers, which remained constant but did not grow. However, we are pleased to note that membership revenue increased solidly. I acknowledge the many contributions of those who have moved on, and offer my sincere thanks to the VTIC team who are tremendously supportive and fun to work with. I know we all look forward to kicking lots more goals after a period of change and consolidation.

VTIC’s working relationship with VECCI also continues to mature. In 2013-14 the VTIC Board agreed to a variation of the Supply of Services agreement with VECCI, to include a comprehensive Schedule that details the services provided by VECCI to VTIC in support of VTIC’s operations. We will continue to nurture and develop this important relationship as both organisations evolve.

I want to acknowledge the VTIC Board for generously sharing their experience, knowledge and time. Last but not least, a special thanks to our industry and corporate partners, including Tourism Victoria, the Regional Tourism Boards, local governments, the National Tourism Alliance, Accommodation Association of Australia, City of Melbourne, Public Transport Victoria, Parks Victoria, Destination Melbourne, KPMG, OAMPS ,Melbourne Airport and Prime 7.

Dianne Smith Chief Executive

VTI LIMITED

2013/20146 VTI LIMITED


ANNUAL REPORT

The Directors present this report together with the financial report of Victorian Tourism Industry Limited (the “Company“) for the year ended 30 June 2014 and the Auditor’s Report thereon.

DirectorsThe Directors of the company at any time during or since the end of the financial year are:

NAME, QUALIFICATIONS EXPERIENCE, OTHER DIRECTORSHIPS

Jeremy Johnson Diploma of Business Local Government Hon. Doctorate

Chairman – Appointed 14 May 2012 CEO, Sovereign Hill Chair, Central Highlands Water Member and Honorary Treasurer, Council of Australasian Museum Directors Board member & Executive Council member, Victorian Employers’ Chamber of Commerce and Industry (VECCI) Chair, Tourism Excellence Working Group

Wayne Kayler-Thomson Diploma of Commerce Certified Practising Accountant (CPA ) Fellow Australian Institute of Management Company Secretary

Deputy Chairman – Appointed 14 May 2012 Company Secretary – Appointed 6 December 2012 Director, VicSuper Pty Ltd Council Member, Victoria University Director, Wayne Kayler-Thomson Pty Ltd Former CEO, Victorian Employers’ Chamber of Commerce and Industry (VECCI) Former Deputy CEO, Tourism Victoria

Roger Grant Bachelor of Teaching Bachelor of Physical Education Master of Arts

Appointed 14 May 2012 Executive Director, Tourism Greater Geelong and the Bellarine Director, Great Southern Touring Route Panel of Tourism Experts, United Nations World Tourism Organization Director, Geelong Major Events Chairman, Geelong Connected Communities

Laura Miles C Dir, Company Direction MSc, Science BSc, Experimental Psychology

Appointed 14 May 2012 Executive Director, Museums Australia (Victoria) Board, Arts Industry Council Victoria Board, History Council Victoria Board, Museum Studies Advisory Group, Deakin University

Other qualifications: Leadership Victoria, Williamson Community Leadership Program Cranlana Foundation, Ethics in society Museum Leadership Program

DIRECTORS’ REPORTFor the year ended 30 June 2014

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VTI LIMITED


Matthew Noble Associate Diploma, Hospitality Management

Appointed 14 May 2012 Owner/Director, Australian Wine Tour Company

Past Directorships: Destination Yarra Valley Dandenong Ranges Tourism Commonwealth Games 2006, Backpacker Reference Advisory Group/Tourism Victoria Backpacker Operators Association of Victoria Yarra Ranges Regional Marketing Limited Victorian Food & Wine Tourism Council

Julian Clark BA, BComm (Melb Uni)

Re-elected 31 October 2013 CEO, The Lancemore Group

Past Directorships: Board, Melbourne Convention Bureau (MCB) Board, Accommodation Association of Australia (AAoA) Board, International Association of Conference Centres (IACC)

Peter Jones Bachelor of Economics

Re-elected 31 October 2013 Director, Peter Jones Special Events Board Member, Destination Melbourne Chairman, Victoria Events Industry Council Member of Tourism Australia’s Business Events Advisory Panel

Nicholas Hunt Bachelor Arts (Hons) Masters Educational Policy (International) Graduate AICD

Elected 31 October 2013 CEO, William Angliss Institute Director, TAFE Directors Australia Director, Tourism Hospitality Educators international Centre of Excellence (THE-ICE)

Sally Capp Bachelor of Law (Hons) (University of Melbourne) Bachelor of Commerce (University of Melbourne) Graduate of the Australian Institute of Company Directors

Appointed 31 October 2013 Head of Markets, Victoria, KPMG Board Member, Rowing Australia Board Member, Commonwealth Business Council Board Member, Faculty of Business and Economics at Melbourne University Trustee, Mary Jane Lewis Trust Advisory Board Member, Global Foundation

ANNUAL REPORT8 2013/2014VTI LIMITED


DIRECTORS’ REPORT CONTINUED For the year ended 30 June 2014


Kim Francis Bachelor of Science (Computing) Executive MBA

Appointed 31 October 2013 Southern Region Manager, YHA Ltd

David Fitzpatrick Appointed 14 May 2012 – Resigned 31 October 2013 BOAV Appointed Director

Past Directorships: Chair, Backpacker Operators Alliance of Victoria (BOAV) Advisory Panel, Port Phillip Council Tourism

Directors’ Meetings The number of Directors’ meetings (including meetings of Committees of Directors) attended by each of the Directors of the Company during the financial year are:

NUMBER OF MEETINGS HELD MEETINGS WHILE IN OFFICE ATTENDED

Jeremy Johnson, Chair 5 3

Wayne Kayler-Thomson, Deputy Chair 5 3

Julian Clark (re-elected 31/10/2013) 5 2

Roger Grant 5 4

Peter Jones (re-elected 31/10/2013) 5 3

Laura Miles 5 4

Matthew Noble 5 5

Nicholas Hunt (elected 31/10/2013) 3 2

Sally Capp (appointed 31/10/2013) 3 2

Kim Francis (appointed 31/10/2013) 3 3

David Fitzpatrick (resigned 31/10/2013) 1 0

Objectives and StrategiesThe Company’s objective as the peak industry body for Victoria’s tourism and events industry are to contribute to the growth and sustainability of the sector. The Company achieves this through implementation of strategies related to professional advocacy, industry membership and representation, industry and professional development events and communications to members, industry and other key stakeholders. (A detailed review of these is included in the CEO’s report).

Principal ActivitiesThe principal activities of the Company during the year ended June 2014 comprised professional advocacy for Victoria’s tourism and events industry and membership attraction and retention (a detailed review of these are included in the CEO’s report).

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VTI LIMITED

Key Performance IndicatorsAs at 30 June 2014, the Company had 437 members (2013: 436). Revenue from membership operations for the year ended 30 June 2014 was $393,604 (2013: $295,830).

Membership LiabilityThe company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the company is wound up, the constitution states that each member is required to contribute a maximum of $ 10.00 each towards meeting any outstanding obligations of the entity. At 30 June 2014, the total amount that members of the company are liable to contribute if the company is wound up is $4,370 (2013: $4,360).

Auditor’s Independence DeclarationThe lead auditor’s independence declaration for the year ended 30 June 2014 has been received and can be found on page 10 of the financial report.

Signed: Jeremy Johnson Chairman At Melbourne 1st October 2014

ANNUAL REPORT10 2013/2014VTI LIMITED


Moore Stephens ABN 39 533 589 331. Liability limited by a scheme approved under Professional Standards Legislation. An independent member of Moore Stephens International Limited – members in principal cities throughout the world. The Melbourne Moore Stephens firm is not a partner or agent of any other Moore Stephens firm. And is a separate partnership in Victoria.

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Level 10, 530 Collins Street Melbourne VIC 3000

T +61 (0)3 8635 1800 F +61 (0)3 8102 3400

www.moorestephens.com.au

AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001TO THE DIRECTORS OF VICTORIAN TOURISM INDUSTRY LIMITED I declare that, to the best of my knowledge and belief, during the year ended 30 June 2014, there have been: (i) no contraventions of the auditor independence requirements as set out in the Corporations Act

2001 in relation to the audit, and

(ii) no contraventions of any applicable code of professional conduct in relation to the audit. MOORE STEPHENS Chartered Accountants Hayley Underwood Partner Melbourne, 31 October, 2014

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VTI LIMITED

Membership revenue 393,604 295,830

Consulting revenue 200,000 –

Grants revenue 274,676 –

Other revenue 3 151,670 8,392

Total income 1,019,950 304,222

General service agreement expense 969,501 281,039

Operating expenses 145,741 16,423

Grants expense 25,563 7,839 Other administration expenses 18,267 178

Total expenses 1,159,072 305,479

Current year deficit before income tax (139,122) (1,257)

Income tax expense – –

Net current year deficit (139,122) (1,257)

Other comprehensive income – –

Net current year deficit attributable to members (139,122) (1,257)

Total comprehensive deficit attributable to members (139,122) (1,257)

The above statement of comprehensive income should be read in conjunction with the accompanying notes.

STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 30 June 2014

Note2014

$2013

$

2013/2014ANNUAL REPORT12 VTI LIMITED


STATEMENT OF FINANCIAL POSITIONFor the year ended 30 June 2014

ASSETS

Current assets

Cash and cash equivalents 343,702 630,980

Trade and other receivables 5 366,895 94,641

Term deposits held to maturity 504,725 –

Total current assets 1,215,322 725,621

Total assets 1,215,322 725,621

LIABILITIESCurrent liabilities

Trade and other payables 6 422,847 126,644

Deferred revenue 7 455,225 122,605

Total current liabilities 878,072 249,249

Total liabilities 878,072 249,249

Net assets 337,250 476,372

Equity

Accumulated losses (152,495) (13,373)

Contributed equity 489,745 489,745

Total Equity 337,250 476,372

The above statement of financial position should be read in conjunction with the accompanying notes.

Note2014

$2013

$

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VTI LIMITED

Balance at 1 July 2012 – – –

Deficit attributable to members of the entity – (13,373) (13,373)

Equity contribution 489,745 – 489,745

Balance at 30 June 2013 489,745 (13,373) 476,372

Deficit attributable to members of the entity – (139,122) (139,122)

Balance at 30 June 2014 489,745 (152,495) 337,250

The above statement of changes in equity should be read in conjunction with the accompanying notes.

STATEMENT OF CHANGES IN EQUITYFor the year ended 30 June 2014

TOTAL

$

ACCUMULATED LOSSES

$

CONTRIBUTED EQUITY

$

2013/2014ANNUAL REPORT14 VTI LIMITED


STATEMENT OF CASH FLOWSFor the year ended 30 June 2014

Cash flow from operating activities

Receipts from members and others 1,296,785 361,623

Payments to suppliers and employees (1,086,431) (228,780)

Interest received 7,093 8,392

Net cash generated from operating activities 8 217,447 141,235

Cash flow from investing activities

Purchase of investment (504,725) –

Net cash used in investing activities (504,725) –

Cash Flow from financing activities

Proceeds from equity contribution – 489,745

Net cash generated from investing activities – 489,745

Net (decrease)/increase in cash and cash equivalents held (287,278) 630,980

Cash and cash equivalents at the beginning of the financial year 630,980 –

Cash at the end of the financial year 343,702 630,980

The above statement of cash flows should be read in conjunction with the accompanying notes.

Note2014

$2013

$

VTI LIMITED 15


Entity informationVictoria Tourism Industry Limited (the “Company”) is a not for profit company limited by guarantee. The Company is governed by the rules set out in its own constitution and the Corporations Act 2001.

Basis of preparationReporting basis and conventions The Company applies Australian Accounting Standards – Reduced Disclosure Requirements as set out in AASB 1053: Application of Tiers of Australian Accounting Standards and AASB 2010–2: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements.

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements of the Australian Accounting Standards Board (“AASB”) and the Corporations Act 2001. The Company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards.

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

The financial report, except for the cashflow information, has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.

a. Cash and cash equivalents

Cash and cash equivalents include: cash on hand; deposits held at call with banks; and other short-term highly liquid investments which are readily convertible to cash and are subject to an insignificant risk of changes in value. Cash and cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment purposes.

b. Financial instruments

Recognition and initial measurement

Financial instruments, incorporating financial assets and financial liabilities, are recognised when the entity becomes a party to the contractual provisions of the instrument. Trade date accounting is adopted for financial assets that are delivered within timeframes established by marketplace convention.

Financial instruments are initially measured at fair value plus transactions costs where the instrument is not classified as at fair value through profit or loss, in which case transaction costs are expensed to profit or loss immediately. Financial instruments are classified and measured as set out below.

Derecognition

Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are discharged, cancelled or expired. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2014

NOTE 1: Entity information and statement of significant accounting policies

2013/2014VTI LIMITED ANNUAL REPORT16


b. Financial instruments (continued)

Classification and subsequent measurement

(i) Financial assets at fair value through profit or loss Financial assets are classified at fair value through

profit or loss when they are held for trading for the purpose of short term profit taking, where tmhey are derivatives not held for hedging purposes, or designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Gains and losses arising from changes in fair value are included in profit or loss in the period in which they arise.

(ii) Held-to-maturity investments Held-to-maturity investments are non-derivative

financial assets that have fixed maturities and fixed or determinable payments, and it is the Company’s intention to hold these investments to maturity. They are subsequently measured at amortised cost.

Held-to-maturity investments are included in non-current assets, except for those which are expected to mature within 12 months after the end of the reporting period. All other investments are classified as current assets.

(iii) Loans and receivables Loans and receivables are non-derivative financial

assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost using the effective interest rate method.

Loans and receivables are included in current assets, except for those which are not expected to mature within 12 months after the end of the reporting period. All other loans and receivables are classified as non-current assets.

(iv) Financial liabilities Non-derivative financial liabilities, excluding financial

guarantees, are subsequently measured at amortised cost using the effective interest rate method.

Fair value

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

Impairment

At each reporting date, the Company assesses whether there is objective evidence that a financial instrument has been impaired. A financial asset or a group of financial assets will be deemed to be impaired if, and only if, there is objective evidence of impairment as a result of the occurrence of one or more events (a “loss event”), which has an impact on the estimated future cash flows of the financial asset(s).

In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors, or a group of debtors, are experiencing significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter into bankruptcy or other financial reorganisation; and changes in arrears or economic conditions that correlate with defaults.

For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is used to reduce the carrying amount of financial assets impaired by credit losses. After having undertaken all possible measures of recovery, if the management establishes that the carrying amount cannot be recovered by any means, at that point the written-off amounts are charged to the allowance account or the carrying amount of impaired financial assets is reduced directly if no impairment amount was previously recognised in the allowance accounts.

NOTE 1: Entity information and statement of significant accounting policies (continued)

NOTES TO THE FINANCIAL STATEMENTS CONTINUED For the year ended 30 June 2014

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b. Financial instruments (continued)

When the terms of financial assets that would otherwise have been past due or impaired have been renegotiated, the company recognises the impairment for such financial assets by taking into account the original terms as if the terms have not been renegotiated so that the loss events that have occurred are duly considered.

c. Trade and other receivables

All trade debtors are recognised at the amounts receivable as they fall due for settlement.

Collectability of trade debtors is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off. A provision for doubtful debts is raised where some doubt as to collection exists.

d. Trade and other payables

These amounts represent liabilities for goods and services provided to the trust prior to the end of the financial year which are unpaid. The amounts are unsecured and usually paid within 30 days of recognition.

e. Goods and services tax

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities, which are recoverable from or payable to the ATO, are presented as operating cash flows included in receipts from customers or payments to suppliers.

f. Income tax

No provision for income tax has been raised as the entity is exempt from income tax under Div 50 of the Income Tax Assessment Act 1997.

g. Revenue recognition

(i) Membership revenue General Membership Revenue is initially recognised

on receipt of payment from the member. Subsequent to initial recognition, all membership revenue is recognised on an accruals basis over the twelve month period of the paid membership.

(ii) Other revenue Interest revenue is recognised on an accruals basis

taking into account the interest rates applicable to the financial assets. All other items classified as other revenue are recognised on an accruals basis.

All revenue is stated net of the amount of GST.

h. Comparative figures

Where required by Accounting Standards, comparative figures have been adjusted to conform with changes in presentation for the current financial year.

i. Critical accounting estimates and judgments

The Directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Group. Management are required to exercise judgment in the process of applying accounting policies. In preparing the financial statement the following key judgements were made:



i. Critical accounting estimates and judgments (continued)

Trade receivables

Included in trade receivables at the end of the reporting period is an amount receivable from customers during the current financial year amounting to $300,298. Management has determined that recoverability of a portion of these debts is uncertain hence a provision for impairment has been made. An assessment of all accounts outstanding for longer than the agreed trading terms has been undertaken.

j. New accounting standards for application in future periods

An assessment of Accounting Standards and Interpretations issued by the AASB that are not yet mandatorily applicable to the Company and their potential impact on the Company when adopted in future periods is discussed below:

– AASB 9: Financial Instruments (December 2010) and associated Amending Standards (applicable for annual reporting periods commencing on or after 1 January 2017).

These Standards will be applicable retrospectively (subject to the provisions on hedge accounting outlined below) and include revised requirements for the classification and measurement of financial instruments, revised recognition and derecognition requirements for financial instruments, and simplified requirements for hedge accounting.

The key changes that may affect the Company on initial application of AASB 9 and associated Amending Standards include certain simplifications to the classification of financial assets, simplifications to the accounting of embedded derivatives, and the irrevocable election to recognise gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. AASB 9 also introduces a new model for hedge accounting that will allow greater flexibility in the ability to hedge risk, particularly with respect to the hedging of non-

financial items. Should the entity elect to change its hedge accounting policies in line with the new hedge accounting requirements of AASB 9, the application of such accounting would be largely prospective.

Although the Board Members anticipate that the adoption of AASB 9 may have an impact on the Company’s financial instruments, it is impracticable at this stage to provide a reasonable estimate of such impact.

– AASB 10: Consolidated Financial Statements, AASB 11: Joint Arrangements, AASB 12: Disclosure of Interests in Other Entities, AASB 127: Separate Financial Statements and AASB 128: Investments in Associates and Joint Ventures (as amended by AASB 2012–10: Amendments to Australian Accounting Standards – Transition Guidance and Other Amendments), and AASB 2011–7: Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards (applicable for annual reporting periods commencing on or after 1 January 2014).

AASB 10 replaces parts of AASB 127: Consolidated and Separate Financial Statements (March 2008, as amended) and Interpretation 112: Consolidation – Special Purpose Entities. AASB 10 provides a revised definition of control and additional application guidance so that a single control model will apply to all investees. This Standard is not expected to significantly impact the Company’s financial statements.

AASB 11 replaces AASB 131: Interests in Joint Ventures (July 2004, as amended). AASB 11 requires joint arrangements to be classified as either “joint operations” (where the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities) or “joint ventures” (where the parties that have joint control of the arrangement have rights to the net assets of the arrangement). Joint ventures are required to adopt the equity method of accounting (proportionate consolidation is no longer allowed). This Standard is not expected to significantly impact the Company’s financial statements.



VTI LIMITED 19



j. New accounting standards for application in future periods (continued)

AASB 12 contains the disclosure requirements applicable to entities that hold an interest in a subsidiary, joint venture, joint operation or associate. AASB 12 also introduces the concept of a “structured entity”, replacing the “special purpose entity” concept currently used in Interpretation 112, and requires specific disclosures in respect of any investments in unconsolidated structured entities. This Standard will affect disclosures only and is not expected to significantly impact the Company’s financial statements.

To facilitate the application of AASBs 10, 11 and 12, revised versions of AASB 127 and AASB 128 have also been issued. The revisions made to AASB 127 and AASB 128 are not expected to significantly impact the Company’s financial statements.

This Standard provides clarifying guidance relating to the offsetting of financial instruments and is not expected to significantly impact the Company’s financial statements.

AASB 2013–3: Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets (applicable for annual reporting periods commencing on or after 1 January 2014).

This Standard amends the disclosure requirements in AASB 136: Impairment of Assets pertaining to the use of fair value in impairment assessment, but is not expected to significantly impact the Company’s financial statements.

AASB 2013–4: Amendments to Australian Accounting Standards – Novation of Derivatives and Continuation of Hedge Accounting (applicable for annual reporting periods commencing on or after 1 January 2014).

ASB 2013–4 makes amendments to AASB 139: Financial Instruments: Recognition and Measurement to permit the continuation of hedge accounting in circumstances where a derivative, which has been designated as a hedging instrument, is novated from one counterparty to a central counterparty as a consequence of laws or regulations.

This Standard is not expected to significantly impact the Company’s financial statements.

AASB 2013–5: Amendments to Australian Accounting Standards – Investment Entities (applicable for annual reporting periods commencing on or after 1 January 2014).

AASB 2013–5 amends AASB 10: Consolidated Financial Statements by defining an “investment entity” and requiring that, with limited exceptions, the entity not consolidate its subsidiaries. The unconsolidated subsidiaries must also be measured at fair value through profit or loss in accordance with AASB 9. The amendments also introduce additional disclosure requirements.

As the Company does not meet the definition of an investment entity, this Standard is not expected to significantly impact the Company’s financial statements.

Interpretation 21: Levies (applicable for annual reporting periods commencing on or after 1 January 2014).

Interpretation 21 clarifies the circumstances under which a liability to pay a levy imposed by a government should be recognised, and whether that liability should be recognised in full at a specific date or progressively over a period of time.

This Interpretation is not expected to significantly impact the Company’s financial statements.



A General Service Agreement (“GSA”) exists between the Company and the Victorian Employers’ Chamber of Commerce and Industry (“VECCI”) under which VECCI agrees to provide, and the Company engages VECCI to provide, certain management services (“Services”). The Services cover the performance of tasks necessary for the efficient management of the Company including management and resourcing, membership administration and account management, communications, marketing, policy support, secretariat and finance support. The fee payable to VECCI under the GSA is 95% of all membership subscription fees received from members of the Company and 100% of all other revenue streams with the exception of interest receivable and certain sundry income items.

During FY13, the membership component of the GSA was active while the other components of the GSA were being finalised. During FY14, all revenue stipulated in the GSA was being recorded in the Company, which explains the increase year on year in consulting revenue, grants revenue and other revenue.

NOTE 2: Revenue

Events and sponsorship 129,209 –

Commissions 11,376 –

Publications 3,409 –

Interest received 7,093 8,392

Sundry revenue 583 –

151,670 8,392

Deficit has been determined after:

Consultants 98,194 16,160

TQUAL product development 42,680 –

Trade debtors 300,928 66,395

Less: Impairment (2,960) –

297,968 66,395

GST paid 66,588 28,246

Other receivables 2,339 –

366,895 94,641

NOTE 3: Other revenue2014

$2013

$

NOTE 4: Surplus/deficit2014

$2013

$

NOTE 5: Trade and other receivables2014

$2013

$


VTI LIMITED 21


Carrying amount at 30 June 2013 –

Charge for the year 2,960

Amounts written off –

Carrying amount at 30 June 2014 2,960

NOTE 5: Trade and other receivables (continued)

PROVISION FOR IMPAIRMENT OF

RECEIVABLES $

CURRENT

Unsecured liabilities

Financial liabilities measured at amortised cost:

Trade creditors 789 –

Accruals 173,491 101,639

GST collected 88,817 25,005

Other payables 159,750 –

422,847 126,644

Deferred membership revenue 240,698 122,605

Deferred events revenue 108,569 –

Deferred sponsorship revenue 49,364 –

Other deferred revenue 56,594 –

455,225 122,605

Deficit after income tax (139,122) (1,257)

Changes in assets and liabilities:

Increase in receivables and prepayments (272,254) (56,813)Increase in payables and deferred income 628,823 199,304

Cash flows generated from operating activities 217,447 141,234

NOTE 6: Trade and other payables2014

$2013

$

NOTE 7: Deferred revenue2014

$2013

$

NOTE 8: Cash flow information2014

$2013

$



The Group’s financial instruments consist of deposits with banks, short-term investments in term-deposits and accounts receivable and payable.

Financial assets

Cash and cash equivalents 343,702 630,980

Trade and other receivables 5 366,895 94,641

Financial assets at fair value through profit or loss 504,725 –

Total financial assets 1,215,322 725,621

Financial liabilities

Financial liabilities at amortised cost:

Trade and other payables 6 422,847 126,644

Total financial liabilities 422,847 126,644

NOTE 10: Fair value measurements

The Company has the following assets, as set out in the table below, that are measured at fair value on a recurring basis after their initial recognition. The Company does not subsequently measure any liabilities at fair value on a recurring basis and has no assets or liabilities that are measured at fair value on a non-recurring basis.

Recurring fair value measurements

Financial assets

- Term deposits held to maturity 504,725 –

Total financial assets recognised at fair value 504,725 –

NOTE 9: Financial risk management Note2014

$2013

$

2014 $

2013 $



VTI LIMITED 23

NOTE 11: Related party transactions

There were no related party transactions during the reporting period.

NOTE 12: Events after balance date

The financial statements were authorised for issue on 1st October 2014 by the Board of Directors.

There are no other material known events subsequent to the reporting date that are required to be disclosed.

NOTE 13: Company details

The registered office and principal place of business of the Company is:

Victorian Tourism Industry Limited

486 Albert Street

East Melbourne VIC 3002



DIRECTORS’ DECLARATION

In accordance with a resolution of the directors of Victorian Tourism Industry Limited, the directors of the company declare that:

1. The financial statements and notes, as set out on pages 11 to 23 are in accordance with the Corporations Act 2001 and:

a. comply with Australian Accounting Standards – Reduced Disclosure requirements; and

b. give a true and fair view of the financial position as at 30 June 2014 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.

Signed: Jeremy Johnson Chairman At Melbourne 1st October 2014

25


VTI LIMITED



T +61 (0)3 8635 1800 F +61 (0)3 8102 3400


INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE VICTORIAN TOURISM INDUSTRY LIMITED Report on the Financial Statements We have audited the accompanying financial statements of the Victorian Tourism Industry Limited, which comprises the statement of financial position as at 30 June 2014, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration. Director’s Responsibility for the Financial Report The directors of the company are responsible for the preparation of the financial statements in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 and for such internal control as management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial statements 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 management, as well as evaluating the presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.



T +61 (0)3 8635 1800 F +61 (0)3 8102 3400





T +61 (0)3 8635 1800 F +61 (0)3 8102 3400



VTI LIMITED ANNUAL REPORT26 2013/2014


Auditor’s Opinion In our opinion, the financial report of the Victorian Tourism Industry Limited 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 2014 and of its

performance for the period ended on that date; and ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. MOORE STEPHENS Chartered Accountants Hayley Underwood Partner Melbourne, 31 October 2014



T +61 (0)3 8635 1800 F +61 (0)3 8102 3400



27


ACKNOWLEDGMENTS

VTIC acknowledges the support of all members who participated in our Policy Committees, events, and surveys, or who otherwise volunteered their time to assist with VTIC’s activities. The ongoing support and goodwill of individuals and organisations across our membership is greatly appreciated.

We also thank our partners and sponsors over the last twelve months for their support. Their contributions help us to continue to be a united and independent voice for tourism, promoting and developing a professional and sustainable industry across Victoria.

Board DirectorsJeremy Johnson (Chair)

Wayne Kayler-Thomson (Deputy Chair, Secretary)

Julian Clark (Convenor, Accommodation Policy

Committee)

Roger Grant (Convenor, Destinations Policy Committee) Nicholas Hunt (Convenor, Tourism Services and Hospitality

Policy Committee)

Peter Jones (Convenor, Victoria Events Industry Council) Laura Miles (Convenor, Attractions Policy Committee) Matthew Noble (Convenor, Tour and Transport Policy

Committee)

Sally Capp (Board appointed Director)

Kim Francis (Board appointed Director)

Life MembersSteve BairdNola CuddyAndrew DwyerDavid EatonRoger GrantFred HerbertWayne Kayler-ThomsonTony LeeJohn MurphyBarbara NixonTom SmithGraeme StoneyRhonda Rust (dec.)

StaffDianne Smith, Chief Executive

Melinda Anderson, Business Development and Operations Manager

Kristina Burke, Policy and Project Manager

Adrian Byrt, Membership Sales Executive

Letitia Hatton, Policy Manager

Robert Richards, Membership Sales Executive

Nigel Preston, Events and Marketing Coordinator

Chris Porter, Project Manager

Wayne Lee, Business Development Manager – Business Events Victoria

Monica Lougoon, Office and Membership Services Coordinator

VTI LIMITED

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13-14 activity report · company secretary – appointed 6 december 2012 director, vicsuper pty ltd...

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