scitech discovery centre annual report · 6 scitech discovery centre annual report 2014-2015 the...

Annual Report

ABN 55 009 292 700

Scitech Discovery Centre

2014–2015

MISSION

“To increase awareness, interest, capability and participation by all Western Australians in science, technology, engineering and mathematics.”

Scitech Discovery Centre is a not-for-profit organisation supported by the people of Western Australia through Western Australian Government funding, admission revenue and community investments from industry and education sector partnerships.

2 Scitech Discovery Centre Annual Report 2014-2015

ContentsChair’s Annual Report 4

Chief Executive Officer’s Report and Review of Operations 5

Our Governance, Our Future 6

Our Performance in 2014-2015 8

Other Key Performance Highlights for 2014-2015 9

Program 1: Intellectual capacity and asset creation 9

Program 2: City West programs 10

Program 3: State-wide programs 11

Program 4: Professional Development 12

Our people, Our Culture 13

Our Business Development and Global Reach 14

Our Partners and Stakeholders 16

Our Acknowledgements 17

Directors’ Report 18

Information on Directors as at 30June 2015 20

Directors’ Declaration 21

Statement of Profit and Loss and Other Comprehensive Income 22

Statement of Financial Position 23

Statement of Changes in Equity 24

Statement of Cash Flows 25

Notes to and Forming Part of the Financial Statements 26

Independent Auditors’ Report 37



Throughout 2014-2015 the Scitech Board grappled and debated a number of complex issues; these discussions led to a series of critical decisions that I wish to highlight:

• WeappointedanindependentPlanning Reference Group (PRG) to give us independent advice on what we need to do to ensure Scitech’s ongoing growth and success, and to assist us in creating a framework to help settle on a long-term location for Scitech. The quality of the people we were able to bring together in that group is a testament to the passion felt in this State towards STEM and Scitech, and the calibre of the Western Australian business and broader academic community. The group, which included business leaders, government planning experts, local authority representatives, and the Chief Scientist of Western Australia, under the Chairmanship of Mr Mark Barnaba OA, did a magnificent job, and the process and outcome were extremely valuable. The Scitech community, and indeed the state, owe them a debt of gratitude.

• Tiedupwiththis,weappointedMcKinsey & Company to review our strategic vision and assess our operating model. Through the PRG process, McKinsey & Company provided consulting services to gather evidence and undertake a ‘global assessment of Scitech’s performance’. Their detailed findings are now assisting management to review and implement required change practices and business model improvements. International peer comparative data confirms that Scitech has one of the lowest operating expenditure given our current reach.

Overall the McKinsey & Company review confirms Scitech is achieving its mission, and is a well-run not-for-profit business. McKinsey & Company undertook this work for much less than they would normally charge, and again, we all owe them a debt of gratitude for their world-class contribution to Scitech’s future.

• WecontributedtoSTEMpolicyplanning at State and Federal levels. Throughout the past year there has been increased public discussion and debate on the state of STEM, and the need for clear policy and future resource allocations. The Scitech Board has welcomed these discussions and ensured it contributed to the State and Federal policy positions. The Science Statement for Western Australia provides a clear endorsement of Scitech’s role and responsibility in science education, community engagement and promoting science communication. The Board will continue to play a lead role and work closely with the State to advance the role and critical importance of STEM across the WA community and for future economic prosperity.

Who made the 2014-2015 year a success?

The Scitech staff and volunteers are a real powerhouse of energy and commitment; your love of science and wishing to share the message with our visitors is inspiring. Thank you, and keep up the great work.

To Mr Alan Brien, our wonderful CEO, and his clever and committed senior Executive team – keep up the great work. Your leadership and ability to adapt to changing circumstances is a credit to you all. Moving from the planning process to achieving the on ground results will be the next phase of this exciting journey.

Our partners, named later in this report, continue to be valued and vital to our success. Your investment in our shared visions and community programs is very much appreciated. Thank you.

To our main partner, the State Government of Western Australia: we must thank the Premier in his role as Minister for Science for his unwavering support of Scitech.

Throughout 2014-2015 the Board has spent considerable time and energy to plan and picture what the future will look like. We are all committed to achieving this exciting vision: it is a vision that is based on addressing our current operating constraints at our popular City West headquarters and revitalising the experience and value for money for all our visitors. The next phase is working closely with the Government on solving the big question, where will Scitech’s long-term home be located?

Finally, to my fellow Board members – thank you for your great efforts and contributions over an exciting, and by no means ordinary, year. Thank you for your willingness to contribute to this great community focussed science organisation.

Next year looks just as interesting…

Thank you everyone.

Tony Joyner Chair Scitech Board of Directors

CHAIR’S ANNUAL REPORT

In my annual report last year I concluded that it was “my honour and pleasure to lead Scitech into an exciting future”. I didn’t know then quite how prescient I was: 2014-2015 has been very much about our exciting future. We have consulted widely; sought independent advice; reviewed our business model; and redefined our strategic vision. We now have a clear plan that will make for an exciting future.


Throughout 2014-2015 a comprehensive planning study was undertaken; the Board proactively appointed an independent Planning Reference Group (PRG) under the Chairmanship of Mr Mark Barnaba OA1. The members gave freely their time and wisdom and made a significant contribution to the PRG findings and recommendations.

While the Board focussed on the future vision and a planning document to set Scitech’s short-term and long-term direction, the Executive and management team set about to ensure Scitech had an outstanding year; its business performance was excellent.

Scitech achieved its third best admission result in its 27 year history.

Our program research findings continue to demonstrate that our science, technology, engineering and mathematics (STEM) programs are valued by the community and they are achieving valuable social outcomes.

The success of 2014-2015 is told through our review of operations.

1 Members of the PRG are: Mr Mark Barnaba (Chair; Macquarie Group Limited), Mr David Axworthy (Department of Education), Mr Colin Beckett (Curtin University), Mr Alan Brien (Scitech), Mr James Christou (Christou Archictecture), Prof Graham Durant (Questacon), Mr John Flecker (Brookfield Multiplex), Mr Tony Joyner (Scitech), Mr Kieran Kinsella (Metropolitan Redevelopment Authority), Mr Peter Klinken (Chief Scientist of Western Australia), Ms Jennifer McGrath (Office of Science), Mr Craig Smith (City of Perth), Mrs Brooke Topelberg (primary school teacher), and Mr Naveen Unni (McKinsey & Company).

CHIEF EXECUTIVE OFFICER’S REPORT AND REVIEW OF OPERATIONS

2014-2015 has been a year of planning, consultation and an in-depth business analysis by one of the world’s leading consulting companies McKinsey & Company. Seeking independent advice, sharing our business data, and being robust to accept feedback has provided the Scitech Board, the senior Executive and our senior funding partner the State Government with an enormous level of confidence and ambition about Scitech’s future.

Highlights

• OureffortandresourcescontinuetofocusonresearchingandengagingtheWestern Australian community in STEM to ensure the State’s future social and economic prosperity. 302,233 people visited Scitech at City West; and 174,994 people took part in one of our many state-wide programs.

• Scitechprovidedcurriculum-alignedProfessionalDevelopmentto4,266teachers and pre-service teachers. This was a growth of 10% on the previous year and demonstrates the strong demand for quality STEM services for teachers.

• ScienceNetworkWAcontinuedtoexpanditsreadershipbasewitha2.2%growth on its projected target. We also saw an 8% growth in Facebook ‘likes’; this continues to reflect the changing social media landscape and methods for improved science communication reach.

• Scitech’ssuccessasthe2014WAIndustryandExportAwardwinnerintheEducation and Training category is a significant milestone. With export of our travelling exhibitions into the USA market, the future for our world-class exhibitions is projected to grow.

• 2014-2015isthesecondyearofthe2013to2018StateFundingAgreementand Scitech achieved all of its required Key Performance Indicator (KPI) targets in accord with the contractual deliverables.

302,233 people visited Scitech at City West.174,994 people took part in one of our many state-wide programs.


The Board at its August 2014 meeting established the PRG to address the location issue, and as part of that exercise, review the business model. It was essential that this group was independent to ensure objectivity. Mr Mark Barnaba OA (Chair, Macquarie Group Limited) agreed to Chair the review and 11 other leaders of the community were approached.

McKinsey & Company were engaged by the Board to provide the business analysis to develop a location assessment framework to enable intelligent and informed recommendations to guide the Board and help inform the State.

In summary, the Board’s brief to the PRG was:

• Examinethestrategyandbusinessoperating model through bench-marking and analysis.

• ExamineScitech’sroleinthe Western Australian community.

• AssessScitech’sshort-termimprovement possibilities at City West.

• Developalocationsframeworktoenable a set of recommendations and an action plan to secure a long-term home for Scitech.

OUR GOVERNANCE, OUR FUTURE

For 2014-2015, the Scitech Board resolved to undertake a comprehensive planning study to assess Scitech’s vision beyond 2020. Following extensive consultation involving the Office of Science, the Board wished to review its vision, business strategies, operating model and location options for a new long-term home.


The PRG met on four occasions and provided the Board and the State with a comprehensive action plan and recommendations.

The key findings of the PRG-McKinsey & Company study are:

• ScitechisvaluedacrosstheWesternAustralian community and plays a valuable role in science education, community engagement and the critical role of STEM across the community.

• ScitechisworthpreservingforfutureWestern Australia.

• Scitech’sstrategyandbusiness model are sound and it benchmarks well against best-in-class peers.

• Scitech’slocationchoicecanbemadeindependent of its operating model.

• TobesuccessfulScitechneedsa long-term fit-for-purpose home.

• Adequateresourcesneedtobein place to allow time for planning, design and construction.

• Inviewofpotentialdelays,thePRG strongly recommends a major investment into Scitech’s City West facility to expand visitor facilities and increase operational space to enable Scitech to remain a popular visitor destination.

The Board has taken delivery of the final PRG-McKinsey report and this has enabled a comprehensive report and submission that has been forwarded to the Premier in his role as Minister for Science.

The Board recognises and values the work of Mr Mark Barnaba OA, McKinsey & Company, and the PRG members. The independent findings now provide a valuable framework to enable ongoing discussion with the State to resolve Scitech’s short-term and long-term facilities issues.

Throughout 2014-2015 Scitech fulfilled all of its contractual and responsibilities in accord with its State Funding Agreement 2013 to 2018.

The Board and senior Executive continued to work closely on the development and implementation of the PRG findings and also in the updating of the Board in departmental programs and operational success, particularly with the growing focus of Scitech’s international profile and success.

In June 2014, discussions were held with Scitech’s insurance broker as part of the annual insurance review. Emerging from these discussions a review of our Risk Policy was undertaken with external consultants. This process was a valuable opportunity to assess our Risk Register and Risk Matrix. Resulting from this detailed review the Audit & Risk Committee endorsed a new Scitech Risk Policy (February 2014) and a revised Risk Register.

The Scitech Audit and Risk Committee oversaw the development of our Business Recovery and Business Continuity Plan. The Committee also focused on the development of 2015 to 2023 cash-flow budgets to help in the scenario planning for future expansion of the City West lease and its implications.


The State Funding Agreement 2013 to 2018 provides the annual performance targets and agreed measures to ensure Scitech’s compliance to the terms of the grant. The 2013 to 2018 agreement identifies the following:

• Overallfinancialandauditcompliance.

• KPIBusinessDriverresultsagainstagreed targets.

• ScitechProgramsReport.

In 2014-2015, Scitech and the State reached agreement on variation to the funding agreement that saw the removal of the Investment Management Tool measures. This was replaced with a more specific Scitech Programs Report that provided agreed targets and descriptions of outcomes over the year. The improved reporting format has enabled a more comprehensive reporting framework to be developed, capturing relevant and appropriate data.

OUR PERFORMANCE IN 2014-2015

1. Financial and Audit Compliance

• TwelvemonthlyfinancialstatementsweresuppliedtotheOfficeofScience for approval.

• Totalrevenuewas7.9%abovebudgetdueprimarilytoimprovedadmissions (up 15.0%) and partnerships (up 26.6%).

• Totalexpenditurewas5.9%belowbudgetduetomanagementcostcontrols, while still achieving all required business goals.

2. KPI Business Driver Results

• Allperformancetargetswereachievedorwithintheagreedperformancelimit of -10%.

3. Scitech Programs Report

• For2014-2015anewreportingtemplatewasdevelopedandagreedwiththeOffice of Science. This provided a detailed report on Scitech’s four key program areas:

– Program 1: Intellectual capacity and asset creation

– Program 2: City West programs

– Program 3: State-wide programs

– Program 4: Professional development of teachers

• For2014-2015approvalhasalsobeenreachedtoreportanewProgram5:Community engagement and science communication, which provides greater clarity on Scitech’s overall operation.

Total revenue was 7.9% above budget due primarily to improved admissions (up 15.0%) and partnerships (up 26.6%)


• Thenew300sqmRioTintoInnovationCentral exhibition was opened in November 2014 by Her Excellency the Governor of Western Australia Mrs Kerry Sanderson AO. This project has received international acclaim and global coverage as a new initiative in science centre innovation. The collaborative design process with Rio Tinto staff was a valuable ingredient to the topic creation and development. Visitor engagement has been very strong.

• Anew5yearpartnershipwasre-negotiated with BHP Billiton to enable the ongoing delivery of valuable STEM programs across Western Australia. Extensive research was also undertaken, with the financial investment of BHP Billiton to formulate a comprehensive

‘Youth in STEM Strategy’. Through extensive cross-sector consultation and youth workshops a detailed youth engagement plan has been developed. Discussion with BHP Billiton remain ongoing to develop a pilot program as the first phase.

• Throughout2014-2015therehasbeenongoing change management in the Technology, Design and Development Workshop space, including a transition of leadership, the implementation of improved operational systems, and a greater focus on workflow planning and improved communication. An increase in staff resources has also occurred to address work pressure and ability to meet increasing overseas exhibition demands.

• Followingtheresignationofthe Director of Marketing and Communications in August 2014 an internal rebranding occurred and a new Director of the Energy Transmission department was appointed. An ongoing marketing review has commenced as well as a detailed review of our information technology and digital future (for business systems and visitor engagement). With financial support from Lotterywest a new IT hardware and systems upgrade was completed across the organisation.

OTHER KEY PERFORMANCE HIGHLIGHTS FOR 2014-2015

PrOgraM 1: Intellectual capacity and asset creation

A total of 302,233 people visited City West


• Schoolbookingsincreased4%onlast year; a total of 45,739 students undertook a Scitech science education program.

• Atotalof302,233peoplevisitedCityWest, this represented a 9% growth in admissions. 99% of visitors would recommend a visit to their family or friends, and following a visit 87% of visitors agreed that science is relevant to their daily life.

• Programscontinuetoappealtoallagesranging from the popular Toddlerfest for pre-schoolers to the adults-only After Dark events, as well as special lectures and festival activities.

• Developmentofa12-monthprogramcalendar for exhibitions, theatre shows, puppet theatre, planetarium, as well as festivals and special events ensures the Scitech product and visitor experience is always refreshed.

• ScitechhostedtheAustralasianPlanetarium Society annual conference in February 2014.

• Scitechstaffcontinuetobeindemand.In November, three staff were invited to participate at the Abu Dhabi Science Festival. Their quality live science theatre shows were very well received at the festival.

• SchoolexcursionstoScitechare well received. A review of almost 400 teachers confirmed:

– Scitech is a good place to learn about science in a different way to school, rated 4.8/5.

– The visit supported student hands-on practical skills, rated 4.7/5.

– Teachers would recommend a visit to other teachers, rated 4.8/5.

PrOgraM 2: City West programs

A total of 45,739 students undertook a Scitech science

education program.


• Scitechcontinueditsextensiveregionalpresence with a comprehensive range of tours and attendance at an unprecedented 197 community events. A total of 174,994 people attended a Scitech program.

• InadditionScitechdeliveredarange of intensive STEM engagement programs that included:

– The year-long intensive robotics program to Pannawonica and Wickham Primary Schools through the support of Mitsui Iron Ore Development. Teacher feedback has been overwhelmingly positive for this program and its value in cross-curriculum learning.

– The RoboCup Junior WA competition attracted over 400 primary and secondary school students.

– The Albany Science Awareness Festival in partnership with the Great Southern Science Council attracted the majority of high school students in the region.

– A 10-week science program at Moorditj Noongar Community College was well received by the students. In 2015, an indigenous university scholarship was introduced to help develop science role models for the students.

• InDecember2014,Scitechsignedafour-year agreement with the Federal Government to ensure the continued delivery of the Inspiring Australia initiative. The focus of the Inspiring Australia program is the expansion of National Science Week and the continued development of the Regional Science Hubs.

• AcornerstoneoftheInspiringAustraliainitiative was Scitech hosting a two-day science communication workshop for regional hub co-ordinators and local science communicators. 82 participants took part in this valuable workshop and networking opportunity. A key focus of the workshop was the development of leadership skills especially for the regional co-ordinators.

• Acrossthe7regionalhubs(Broome,Karratha, Geraldton, Bunbury, Albany, Esperance and Kalgoorlie) a total of 113 science events were staged that attracted 16,632 people.

Scitech continued its extensive regional presence with a comprehensive range of tours and attendance at an unprecedented 197 community events. A total of 174,994 people attended a Scitech program.

In 2015, discussions have commenced with a group in Northam and a new South West Science Council is emerging in Bunbury.

• TheWesternAustralianregionalhubsmodel has now been adopted by the Federal Government and is operating in a number of States.

• Scitech,alongwithitsNationalScience Week co-ordinating partners, delivered an outstanding 2014 National Science Week across Western Australia. The Western Australian celebration continues to be viewed as one of Australia’s best organised and community supported science weeks. The key attraction was the Perth Science Festival in the Perth Cultural Centre which attracted over 12,000 visitors and involved over 35 science exhibitors. The event was sponsored by the City of Perth and was officially opened by the Hon. Donna Faragher MLA Parliamentary Secretary to the Minister for Science.

• Scitech’sonlinesciencenewsandevents platform ScienceNetwork WA continues to promote and communicate WA science research and activities to a global audience. In 2014-2015 a total of 136 ScienceNetwork WA articles were republished in other media. Google Analytics data verified 198,426 unique visits to the

ScienceNetwork WA website, while the ScienceNetwork WA Facebook page site recorded a reach of 3,504,184. ScienceNetwork WA remains a trusted and well-respected online science news service by the WA science community.

• In2014-2015,Scitechcontinuedasprinciple supporter of CoderDojo WA, a Fogarty Foundation initiative. CoderDojo WA continues to grow in popularity and reach with 14 Dojos including at the University of Western Australia, Curtin University, Edith Cowan University and Murdoch University, as well as in local and regional schools. Scitech continues to support the initiative, hosting mentor and mentee evenings as well as hosting the annual awards night.

• Impactresearchremainsaprimefocus of all Scitech’s programs and activities. Over the past three years the UWA Graduate School of Education undertook a comprehensive analysis of the Rio Tinto supported Early Childhood program, with the research supported by the Australian Research Council. The study aimed to explore children’s interaction with parents and the long-term learning outcomes. The study findings are still being formulated, though initial findings emphasise the importance of the program for regional children and parents to help early childhood development.

PrOgraM 3: State-wide programs


• Scitech’sinvestmentinteacherdevelopment and professional learning remains a cornerstone of our STEM education strategy. Working in partnership with the Department of Education there was a 10% growth in teacher professional development sessions, reaching 3,447 teachers. A total of 373 teacher workshops were held, an 86.5% growth over the projected target for the year. For pre-service teachers, 15 workshops were held for students from Edith Cowan University, University of Western Australia, University of Notre Dame, Curtin University and Murdoch University.

• Teacherfeedbackanalysisconfirms:

– 80% of teachers reported that their confidence and delivery in STEM subjects has improved.

– 73% report spending more time teaching STEM as a result of the Scitech Professional Learning workshops.

– 88% agreed the Professional Learning developed their hands-on practical skills for teaching STEM.

• IndustrysupportfromBHPBilliton,Rio Tinto, Alcoa and Chevron remains critical in Scitech’s ability to provide essential Professional Learning across WA schools.

• Criticaltopromotingthevalueofscience to teachers across Western Australian primary schools, Scitech with its industry partner Woodside continues to offer the Woodside Scitech Science Awards to all schools. Over 85% of WA schools take up the offer of two science prizes to the top male and female student. At the end of 2014, Woodside ensured that both the Year 6 and Year 7 students in State schools received this prestigious award. Principals and teachers value the merit of this science award to students.

PrOgraM 4: Professional Development

A total of 373 teacher workshops were held, an 86.5% growth over the projected target for the year.


As at the 30th June 2015, Scitech had 142 employees (106 FTE); this was made up of 65 full-time staff; 23 part-time staff; 54 casual staff; and 95 volunteers.

I must honour our special 92 volunteers; they contributed 10,207 hours to Scitech. This is the first year that we have seen over 10,000 volunteer hours. Thank you very much.

Throughout 2014-2015, the Executive and HR Manager focussed on addressing the findings and improvements in management practices based on the All Staff Survey held in June 2014. The key initiatives have been:

• Developmentofcareerlearning tools and associated workshops.

• Projectmanagementtrainingfor early career managers.

• Greaterclarityontherole,functionsand composition of cross-organisation teams and project groups.

• Reviewofperformancereview process and tools.

• Improvedcommunicationand planning systems within the workshop.

• ContinuetoworkwithourEmployeeAssistance provider on the provision of confidential services to all staff.

• Introductionofinformalallstaffsocial gatherings to promote greater interaction across the organisation.

OUR PEOPLE, OUR CULTURE

The essence of Scitech is the dedicated and incredible talented staff that ensure our focus and attention is on our customer. Whether that be in a remote Aboriginal community in the Kimberley; or in a regional centre in the South West; or while installing an exhibition at the University of Berkley, California. Our hard-working staff and volunteers are committed to doing their best.


OUR BUSINESS DEVELOPMENT AND GLOBAL REACH

Clearly previous independent reviews of Scitech identified the critical issues facing the company as being:

• OldandtiredfacilitiesatCityWest.

• Limitedsecurityoverlong-term funding and leased facilities.

• Noalternatelocationoptionsto enable long-term planning.

The Board resolved to adopt a proactive approach in 2014-2015 to seek the input of an independent group of leading business and science figures (including from key government offices) and support this group with a world class consulting team McKinsey & Company.

The ingredients worked! The PRG-McKinsey & Company Report has provided the Board and the State government with an action plan for the short and long-term.

The Board has endorsed a plan based on the following:

• RevitalisationofCityWest (2015-2021) The Board proposes to expand its City West lease footprint to enable a revitalisation of the visitor experience. Relocating the ‘back-of-house’ administration services will create a new and vibrant visitor experience. A new visitor engagement plan and public marketing campaign are in development.

• FindinganewhomeforScitech The PRG-McKinsey & Company Report addresses the development of a location framework to assess future options for Scitech. The Board and State government are in detailed discussions on the outcomes of this valuable work.

The growth of non-government revenue remains a primary focus for the Executive team with significant effort on developing partnerships and the expansion of Scitech’s travelling exhibition reach across the globe. As noted in our 2013-2014 Annual Report, significant effort has been placed on expanding our reach into the large USA science centre market. It is estimated that there are over 275 mid-sized science centres capable of taking Scitech’s exhibitions.

As reported earlier, 2014-2015 was a significant year for the Scitech business model; while remaining focussed on mission deliverables the Board and leadership team set about examining and understanding our ‘ideal future’.


Exhibition Location Season length

Speed Moody Gardens, Galveston, TEXAS 7 months

Centre for the Arts, Midland, MICHIGAN 3 months

Discovery Cube, Los Angeles, CALIFORNIA 4 months

Mayborn Museum, Waco, TEXAS 3 months

Top Secret COSI, Columbus, OHIO 6 months

Sloan Longway Museum, Flint, MICHIGAN 3 months

Science World, Vancouver, BRITISH COLUMBIA 4 months

Exploration Place, Wichita, KANSAS 3 months

Backyard Adventures Academy of Natural Sciences, Philadelphia, PENNSYLVANIA 3 months

Going Places Manned Space Flight Foundation, Houston, TEXAS 3 months

Humanoid Discovery Stageworks, Chengdu, CHINA 3 months

Playing with Light The Scientific Center, KUWAIT 7 months

Springs Preserve, Las Vegas, NEVADA 3 months

Whodunit? Pusat Sains Negara, Kuala Lumpur, MALAYSIA 5 months

Rescue Oil & Gas Discovery Centre, Seria, BRUNEI 4 months

Exploration Place, Wichita, KANSAS 3 months

Science Fiction: Science Future Lawrence Hall of Science, Berkeley, CALIFORNIA 3 months

US Space & Rocket Centre, Huntsville, ALABAMA 5 months

Reuben Fleet Center, San Diego, CALIFORNIA 3 months

Springs Preserve, Las Vegas, NEVADA 3 months

Manned Space Flight Foundation, Houston, TEXAS 4 months

Carnival of Science Oil & Gas Discovery Centre, Seria, BRUNEI 6 months

Astronaut Manned Space Flight Foundation, Houston, TEXAS 4 months

Scitech’s global vision continues to ensure our brand and reach grows and helps connect our exhibitions and services to an international market. The CEO is completing his second year as President of ASPAC in 2015.

Our international connections for Scitech continue, including:

• TheRioTintoBeijingBoundSciencecompetition,nowinitsseventhyear.

• ParticipationintheAbuDhabiInternationalScienceFestival.

• PresentationofpapersattheASPACannualconferenceinManila.

• NominatedtohosttheWorldBiotechnologyTourin2016.

• SelectedbytheJapanesesciencecentreMiraikanforayouthSTEMproject.

During 2014-2015, the first Scitech exhibition was installed in the United States at the Lawrence Hall of Science in Berkley, California. Other travelling exhibition bookings secured overseas in 2014-2015 include:


OUR PARTNERS AND STAKEHOLDERS

“Scitech offers the Western Australian community a way of accessing science, a way for teachers to feel confident about teaching and motivating students and a setting for families to share and learn together.”

– Scitech Patrons and Nobel Laureates Clinical Professor B.J. Marshall AC and Emeritus Professor J. R. Warren AC

The community trust and overwhelming support of Scitech is a reflection of the organisation’s ability and willingness to work in collaboration; develop confidence to partner as an equal with cross-sector organisations; and to communicate in an open and honest conversation that ensures a trusting and productive relationship.

We seek out and encourage time and personal effort with industry, the

education sector, universities, media, professional bodies, community groups, membership organisations, and local, State and federal governments.

Our ability to initiate and develop relationships demonstrates a capacity to listen, remain flexible and discover new opportunities. We are not afraid to say yes or no but we believe having a conversation is a great way to start.

As we reflect on our current partners and stakeholders it is pleasing to see the stability and long-term friends we have; many commencing in 1988, the year we opened to the public.

The Board and senior Executive team wishes to thank and acknowledge the valuable contribution of the following partners and stakeholders.

PrINCIPaL ParTNEr aND FUNDEr

StateGovernmentofWesternAustralia–DepartmentofthePremierandCabinet,OfficeofScience

gOVErNMENT ParTNErS

FederalGovernmentthroughQuestaconandCSIRODepartmentofEducationAustralianNuclearScienceandTechnology Organisation City of Perth LotterywestSwanRiverTrustWaterCorporationWesternAustralianMuseumWesternPower

COrPOraTE ParTNErS

AlcoaFoundationAustralian Petroleum Production and Exploration AssociationBDOBHPBillitonChevronCSEGlobalAustraliaExxonMobilFluorGalvinsPlumbingHawaiianJacobsKuwaitForeignPetroleumExplorationCompany(KUFPEC)Lycopodium MitsuiIronOreDevelopmentRioTintoWoodsideWorleyParsonsRoyalSocietyofWA

EDUCaTION ParTNErS

AssociationofIndependentSchools ofWesternAustraliaCatholicEducationOfficeEarthSciencesWesternAustraliaMathematicalAssociationof WesternAustraliaScience Teachers Association of WesternAustralia

UNIVErSITIES

CurtinUniversityEdithCowanUniversityMurdochUniversityTheUniversityofWesternAustralia

STaKEHOLDEr MEMBErSHIP

AsiaPacificNetworkofScienceandTechnology CentresAssociation of Perth AttractionsAssociation of Science and Technology CentresAustralasian Planetarium SocietyAustralasian Science and Technology ExhibitorsNetworkAustralian Science CommunicatorsChamberofCommerceandIndustryWesternAustraliaCouncilofAustralasianMuseumDirectorsEngineers AustraliaEuropeannetworkofsciencecentres(Ecsite)NetworkofAustralasianMuseumExhibitors

COMMUNITY grOUPS

Academy of Technological Sciences and Engineering

AstronomyWAARCCentreofExcellenceinPlantEnergyBiologyAustralian Society for Stem Cell ResearchCentreforIntegratedBeeResearchChem CentreEngineers AustraliaEngineersWithoutBordersFogartyFoundation/CoderDojoWAGeologicalSurveyWesternAustraliaInspiringAustraliaRegionalScienceCo-ordinating CommitteesInternationalCentreforRadioAstronomyResearchMarsOneNationalScienceWeekCo-ordinatingCommittee PlaygroupWARoboCupRobogalsSwinburneUniversityTelethonKidsInstituteWalterandElizaHallInstituteofMedicalResearch

MEDIa ParTNErS

ABCGWNNetworkTenWestAustralianNewspapers

INDUSTrY IN-KIND SUPPOrTErS

EdwardsWinesIconTechnologiesMatsosBroomeBreweryNeverfailWPMGroup


OUR ACKNOWLEDGEMENTS

Throughout 2014-2015, the Board’s focus and energy on planning and consulting for the future was made easier knowing it was fully supported and endorsed by the Premier Hon. Colin Barnett MLA in his role as Minister for Science. The Premier’s strong support and keen interest in Scitech is greatly valued and appreciated by the Board.

Thank you Premier.

The Board also wishes to acknowledge the strong support of the Hon Donna Faragher MLA Parliamentary Secretary to the Premier for Science; your keen interest and regular attendance at Scitech is very much appreciated and valued.

Facilitating and supporting the Board’s proactive approach has been the Chief Scientist Professor Peter Klinken as well as the Executive Director of the Office of Science Ms Jen McGrath and her excellent team. From all at Scitech we thank you for your wisdom and guidance in ensuring our success.

The Board also wishes to acknowledge the support and investment of the

Minister for Education Peter Collier MLC. The Minister’s interest and the support of the Department of Education is very important in our services and help to all Western Australian teachers.

To my Chair, Tony Joyner, many thanks for the wonderful and rich humour that guides, floats and ‘moves mountains’ to all the right decision points without angst and to positive outcomes. Our PRG expedition was a great adventure. Having a quality team of ‘heavy hitters’ playing freely for Scitech was very special and I have learnt a lot. Thank you Tony.

To the Scitech Board members; your willingness to volunteer and freely offer wisdom, advice and provide constructive criticism is welcome and always appreciated. Thank you Board.

In closing this 2014-2015 report, I must express my personal thank you and appreciation to my Executive team: Chief Financial Officer Gary Foxton, Director of Science Programs Andrew Hannah, Director of Outreach Nick Wood, Director of Science Partnerships Simon

Carroll, Director of Energy Transmission Veronika Gouskova, Excitement Manager Valerie Deal, Human Resources Manager Kirrily Wesley, and Executive Projects Manager Lisa Wiese. It has been a great team effort, thank you.

To all the staff and volunteers who make Scitech what it is every day thank you very much for your dedication and passionate investment in all things Scitech.

Mr Alan Brien Chief Executive Officer, Scitech


DIRECTORS’ REPORT

Your Directors submit the Financial Report of the company for the year ended 30 June 2015.

DIRECTORS

The names of Directors in office during the year ended 30 June 2015 and up to the date of this report are:

MrTonyJoyner ProfessorGradyVenville

ProfessorMarkHackling MrJohnUdd(resigned23June2015)

ClinicalProfessorFionaWood MrMatthewWeaver

MrDavidAxworthy MrMartinKirkness

MrColinBeckett MrsMichelleReynolds(resigned4December2014)

MrMichaelMalone(resigned17August2014) MsJenniferMcGrath(appointed4December2014)

MrDavidJoyce MrShaunGregory(appointed23January2015)

COMPANY SECRETARY

The name of the Company Secretary in office during the year ended 30 June 2015 and up to the date of this report is: MrGaryFoxton

EXECUTIVE GROUP

The names of the corporate executive group for the same period are:

MrAlanBrien Chief Executive Officer

MrGaryFoxton Director Business & Finance

MrAndrewHannah Director Science Programs

MrDenhamDunstall Director Exhibition Design & Development

MsKateElder (resigned 19 September 2014) Director Communications and Marketing

MrNicholasWood Director Outreach Programs

DrSimonCarroll Director Science Partnerships

MsVeronikaGouskova (appoint 27 October 2014) Director Communications and Marketing

MrsLisaWiese (appointed 1 December 2015) Manager Executive Projects

PRINCIPAL ACTIVITY

The principal activity of the company was the operation of an interactive science and technology centre. This activity remained unchanged from the previous year.

OPERATING RESULTS

The net profit of the company for the year amounted to $1,995,172 (2013/2014 net profit $4,606,441).

The net assets of the company increased from $10,400,420 as at 30 June 2014 to $12,395,592 as at 30 June 2015. Key components of this result included:

• areductionincashandcashequivalents as reserves previously accumulated were consumed in line with the long term financial plan;

• asignificantdeclineindeferredincomefrom last year when the State’s first funding remittance was received prior to the end of the financial year to which it related;

• anincreaseinthecarryingvalueof property, plant and equipment,

especially exhibit construction, evidencing the building of two science exhibitions in the same year and the modification of a number of exhibitions for the US market; and

• areductionintradepayablesduetoalesser trade creditors figure and other payables being down as a result of June 2014’s GST collections being inflated due to the State making payment of its first funding remittance in advance.

The company signed a new five-year funding agreement with the State Government for $41.5 million over five years on 20 June 2013. Application

for this funding was supported by the “Scitech Blueprint” document which outlined Scitech’s business objectives and financial plan for the 2013-2018 period.

The Scitech Board remains confident that strict adherence to the financial targets contained within the Scitech Blueprint will ensure that strong fiscal management accompanies delivery of the company’s mission to increase awareness, interest, capability and participation by all Western Australians in STEM (science, technology, engineering and mathematics).

FINANCIAL POSITION


Full Meetings of Directors

NumbersofMeetingsHeld 7

Mr T Joyner 6

Professor M Hackling 5

Clinical Professor F Wood –

Mr D Axworthy 6

Mr C Beckett 5

Mr M Malone (resigned 17 August 2014 – 1 meeting held whilst a Director) –

Mr D Joyce 6

Professor G Venville 5

Mr J Udd (resigned 23 June 2015 – 7 meetings held whilst a Director) 5

Mr M Weaver 6

Mr M Kirkness 7

Mrs M Reynolds (resigned 4 December 2014 – 3 meetings held whilst a Director) 1

Ms J McGrath (appointed 4 December 2014 – 4 meetings held whilst a Director) 2

Mr S Gregory (appointed 23 January 2015 – 4 meetings held whilst a Director) 3

DIRECTORS’REPORT(continued)

MEETINGS OF DIRECTORS

The number of meetings of the company’s Board of Directors held during the year ended 30 June 2015 and the number of full meetings attended by each director were:



Mr Tony Joyner

Qualifications: B Juris (Hons), LLB

Experience: Board Member since 18 November 2010; Managing Partner at Herbert Smith Freehills

Member of: Law Society of WA; WA Chamber of Commerce – General Council

Prof. Mark Hackling

Qualifications: BSc(Hons), Dip Ed, MAppSci (Sci Ed), PhD, HonEdD

Experience: Board Member since 10 May, 2007; Professor of Science & Technology Education, Edith Cowan University

Clinical Prof. Fiona Wood

Qualifications: FRACS, FRCS, AM

Experience: Board Member since 22 May 2007; Burns Service of Western Australia; Chair and Co-Founder of McComb Research Foundation; Consultant at Royal Perth Hospital Burns Unit and Princess Margaret Hospital

Director of: Burn Injury Rehabilitation Unit, University of Western Australia; AVITA Medical; Orthocell; Special Olympics Western Australia

Member of: Winthrop Professor, School of Surgery, University of Western Australia

Mr David Axworthy

Qualifications: BSc (Hons), Dip Ed, Registered Psychologist

Experience: Board Member from 2 November 2005 to 30 June 2007 and since 18 January 2008; Deputy Director General, Schools, Department of Education

Mr Colin Beckett

Qualifications: MA Cantab (Engineering)

Experience: Board Member since 16 February 2008; Chancellor of Curtin University

Director of: Chancellor Curtin University; Chairman Perth Airport; Chairman Western Power; Non-Executive Director Beach Energy

Member of: Fellow Institute of Engineers Australia; Member institution of Civil Engineers; Graduate Australian Institute of Company Directors

Mr David Joyce

Qualifications: BEng (Civil) (Hons)

Experience: Board Member since 18 November 2010

Director of: Global Head, Rio Tinto Projects

Member of: Rio Tinto Technology and Innovation Executive Committee; Australian Institute of Company Directors; Institute of Engineers Australia

Prof. Grady Venville

Qualifications: BSc DipEd GradScEd PhD (Curtin)

Experience: Board member since 27 June 2013; Dean of Coursework Studies Vice-Chancellery UWA

Chair of: UWA Admissions Committee, UWA Foundation Program Board of Studies

Director of: UWA Graduate Research School Board; UWA Academic Council; UWA Institute of Advanced Studies Board; UWA Board of Coursework Studies; Aspire UWA Reference Group; UWA Academic Board; UWA Board of Studies (Science/Arts/Bachelor of Philosophy (Hons)/Design/Commerce)

Member of: UWA Coursework Scholarships Sub-Committee; UWA Teaching and Learning Committee; The Australian Research Council College

Mr Matthew Weaver

Qualifications: BSc (Geology) (UWA), LLB (Hons) (UWA), MSc (Finance & Economics) (LSE)

Experience: Board member since 12 December 2013; Director of Azure Capital

Mr Martin Kirkness

Qualifications: BComm(UWA), FCA, FTIA, Registered Company Auditor; Registered Tax Agent, Registered Superannuation Fund Auditor

Experience: Board Member since 17 December 2013; Managing partner of Dry Kirkness Accountants

Chair of: Scitech Risk & Audit Committee, Trinity Theological College Inc

Member of: Institute of Chartered Accountants in Australia; Taxation Institute of Australia; Audit Committee, Presbyterian Ladies College

Ms Jennifer McGrath

Qualifications: BComm, CPA

Experience: Board Member since 4 December 2014; Executive Director of Office of Science, Department of Premier & Cabinet

Member of: CPA Australia, ICRAR Board

Mr Shaun Gregory

Qualifications: BSc(Hons) (UWA), Master Business & Technology (UNSW)

Experience: Board Member since 23 January 2015; Senior Vice President Strategy, Science and Technology Woodside Energy

Member of: Deans Council Faculty Engineering Mathematics & Computer Science UWA

Mr Gary Foxton

Qualifications: BBus(Curtin)

Experience: Company Secretary since 1 February 1992

Member of: CPA Australia

INFORMATION ON DIRECTORS AS AT 30 JUNE 2015


ENVIRONMENTAL REGULATION

The operations of the company are not subject to any significant environmental regulations under either Commonwealth or State legislation.

NON-AUDIT SERVICES

During the financial year, no amounts were paid or are payable to the auditor for non-audit services. Details of amounts paid to the auditor for audit services are set out in note 5.

INSURANCE OF DIRECTORS’ & OFFICERS’

During the financial year, the company paid premiums of $8,721 to indemnify its directors and officers against costs and expenses which could arise out of liability claims relating to wrongful acts.

MATTERS SUBSEQUENT TO THE END OF FINANCIAL YEAR

There were no matters or circumstances that have arisen subsequent to the end of the financial year which significantly affect the operations of the company, the results of those operations or the state of affairs of the company that need to be disclosed in this Directors’ Report.

AUDITOR INDEPENDENCE DECLARATION

The auditor’s independence declaration as required under section 307c of the Corporations Act 2001 is included on page 45 of the financial report. Auditor BDO Audit (WA) Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.

Signed in accordance with a resolution of the Board of Directors made on 24th September, 2015.

Martin Kirkness Acting Chair of the Board

Dated this 24th day of September, 2015 at Perth, Western Australia

The directors of Scitech Discovery Centre declare that:

(a) the financial statements, comprising the Statement of Profit and Loss and Other Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and the additional disclosures included in the Annual Report are in accordance with the ACNC Act 2012 and

(i) comply with Australian Accounting Standards (including the Australian Accounting Interpretations), the ACNC Regulations 2013 and other mandatory professional reporting requirements; and

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

(b) In the Directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the directors by

Martin Kirkness Acting Chair of the Board

Dated this 24th day of September 2015 at Perth, Western Australia


DIRECTORS’ DECLARATION


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

2015 2014

Notes $ $ Revenue from continuing operations 3 17,576,759 18,826,464

Employee benefits expense (7,960,086) (7,016,189)

Depreciation & amortisation expense 4 (1,925,023) (1,675,407)

Lease expense (1,338,988) (1,296,299)

Asset impairment loss 4 – (168,877)

Marketing expense (1,026,565) (949,733)

Public program expense (798,007) (783,697)

Educational program expense (636,042) (661,957)

Exhibit and exhibition expense 89,917 (40,209)

Administration expense (1,986,793) (1,627,655)

Profit from continuing operations before income tax expense 1,995,172 4,606,441

Income tax expense 1(c) – –

NetProfitfromcontinuingoperationsafterincometaxexpense andtotalcomprehensiveincome $1,995,172 $4,606,441

The above Statement of Profit and Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.


STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2015

2015 2014

Notes $ $

CURRENT ASSETS

Cash and cash equivalents 6,939,154 8,853,372

Trade and other receivables 6 670,231 725,806

Inventories 7 94,192 103,741

TOTAL CURRENT ASSETS 7,703,577 9,682,919

NON-CURRENT ASSETS

Property, plant and equipment 8 6,779,472 5,974,381

TOTAL NON-CURRENT ASSETS 6,779,472 5,974,381

TOTALASSETS 14,483,049 15,657,300

CURRENT LIABILITIES

Trade and other payables 9 841,899 1,331,533

Deferred income 10 581,460 3,278,307

Provisions 11 419,274 395,607

TOTAL CURRENT LIABILITIES 1,842,633 5,005,447

NON-CURRENT LIABILITIES

Provisions 11 244,824 251,433

TOTALNON-CURRENTLIABILITIES 244,824 251,433

TOTALLIABILITIES 2,087,457 5,256,880

NETASSETS 12,395,592 10,400,420

EQUITY

Retained profits 12,395,592 10,400,420

TOTALEQUITY 12,395,592 10,400,420

The above Statement of Financial Position should be read in conjunction with the accompanying notes.


STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2015

2015 2014

$ $ Totalequityatthebeginningofthefinancialyear 10,400,420 5,793,980

Netprofitafterincometaxexpensefortheyearandtotalcomprehensiveincome 1,995,172 4,606,441

Totalequityattheendofthefinancialyear 12,395,592 10,400,420

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.


STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 30 JUNE 2015

2015 2014

$ $

Inflows Inflows (Outflows) (Outflows)

Cashflows from operating activities

Receipts from admissions 2,080,069 1,839,460

Receipts from exhibition rentals 2,102,072 847,639

Receipts from sponsors 2,758,251 4,501,400

Receipts from merchandise sales 523,677 497,196

Receipts from education programs 463,730 462,209

Receipts from Scitrekker memberships 323,405 310,959

Receipts from marketing functions 312,369 309,807

Receipts from other operating activities 11,805 54,942

Receipts from State government 5,543,721 10,795,383

Receipts from Federal government 256,500 275,250

Interest received 278,165 270,880

Payments to suppliers and employees (13,837,868) (11,657,453)

Net cash inflow from operating activities (Note 15(i)) 815,896 8,507,672

Cashflows from investing activities

Paymentforproperty,plantandequipment (2,730,114) (3,492,640)

Net cash outflow from investing activities (2,730,114) (3,492,640)

Net increase/(decrease) in cash and cash equivalents held (1,914,218) 5,015,032

Cashandcashequivalentsatthebeginningofthefinancialyear 8,853,372 3,838,340

Cashandcashequivalentsattheendofthefinancialyear 6,939,154 8,853,372

Cash and cash equivalents at the end of the financial year is comprised of:

Cash on hand 19,330 19,330

Cash on deposit 6,919,824 8,834,042

6,939,154 8,853,372

Financing Arrangements – Note 15(ii)

This Statement of Cash Flows should be read in conjunction with the accompanying notes.


NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2015

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

These financial statements are general-purpose financial statements, which have been prepared in accordance with the ACNC Act 2012, Australian Accounting Standards (including Australian Accounting Interpretations) and other authoritative pronouncements of the Australian Accounting Standards Board.

These financial statements have been prepared on the basis of historical cost. Cost is based on the fair values of consideration given in exchange for assets.

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

The financial statements of Scitech also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

(a) Acquisitionsofassets The cost method of accounting is

used for all acquisitions of assets. Cost is determined as the fair value of the assets given up at the date of acquisition plus incidental costs to the acquisition.

The Company adopts a policy of expensing individual assets purchased or constructed for less than $1,500.

(b) Depreciation and amortisation Asset additions are depreciated

from the beginning of the month of their purchase or from the beginning of the month in which construction was completed.

(c) Income tax The company is exempt from

income tax under the provisions of Division 50-5 of the Income Tax Assessment Act 1997.

(d) Tradeandotherpayables These amounts represent liabilities

for goods and services provided to the company prior to the end of the financial year and which are unpaid.

The amounts are unsecured and are usually paid within 30 days of recognition.

(e) Inventories Inventories are valued at the lower

of cost and net realisable value. Cost is based on the first-in, first-out principle of inventory management.

(f) Significant accounting judgement, estimates and assumptions

(i) Significant accounting judgement

In the process of applying the Company’s policies, management has made the following judgements, apart from those involving estimates, which have the most significant effect on the amounts recognised in the financial statements:

Impairment of property, plant and equipment

The Company determines whether property, plant and equipment are impaired whenever indicators of impairment exist. This requires an estimate of the recoverable amount of the property, plant and equipment. The assumptions used in this estimation of recoverable amount and the carrying amount are detailed in Note 8 below.

(g) Non-current assets constructed by the company

The cost of non-current assets constructed by the company includes the cost of all materials and direct labour used in construction and a provision for salary oncosts and overheads.

(h) Employee entitlements (i) Wages and Salaries and Annual

Leave

Liabilities for wages and salaries and annual leave are recognised and measured as the amount unpaid at the reporting date at current pay rates in respect of employees’ services up to that date.

(ii) Long Service Leave

A liability for long service leave is recognised and measured as the present value of expected future payments to be made in respect of services provided by employees up

to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.

As at the 30 June 2015, the number of full-time equivalent employees was 106.0.

(i) Revenuerecognition Revenue is recognised to the

extent that it is probable that the economic benefits will flow to the entity and the revenue can be reliably measured. The following specific recognition criteria are met before revenue is recognised.

(i) Sale of goods

Revenue is recognised when the significant risks and rewards of the goods have passed to the buyer and can be measured reliably. Risks and rewards are considered passed to the buyer at the time of delivery of the goods or provision of the service to the customer.

(ii) Interest

Revenue is recognised as the interest accrued (using the effective interest method, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument) to the net carrying amount of the financial asset.

(iii) Partnerships

Cash partnerships are brought to account as income in the period in which they are due. Partnerships received in forms other than cash are valued at the current market rate of those goods or services.

(j) Government grants Grants from the Government are

recognised at their fair value where there is a reasonable assurance that the grant will be received and the Company will comply with all the attached conditions.

Government grants relating to costs are deferred and recognised in the Statement of Comprehensive Income over the period necessary to match them with the costs that they are intended to compensate.


Government grants relating to the purchase or construction of property, plant and equipment are included in liabilities as deferred income and are credited to the Statement of Comprehensive Income over the expected lives of the related assets.

(k) Leases Leases are classified at their

inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and benefits incidental to ownership.

Operating leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the income statement on a straight-line basis over the period of the lease.

Lease income from operating leases is recognised as income on a straight line basis over the lease term.

Finance leases

Leases which effectively transfer substantially all of the risks and rewards incidental to ownership of the leased item to the Company are capitalised at the present value of the minimum lease payments and disclosed as property, plant and equipment under lease. A lease liability of equal value is also recognised.

Capitalised lease assets are depreciated over the shorter of the estimated useful life of the assets and the lease term. Minimum lease payments are allocated between interest expense and reduction of the lease liability with the interest expense calculated using the interest rate implicit in the lease and recognised directly in net profit.

(l) Impairment of assets At reporting date, management

assesses whether there is any indication that an asset may be impaired. Where an indicator of impairment exists, management makes a formal estimate of the recoverable amount. Where the carrying amount of an asset

exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount.

Recoverable amount is the greater of fair value less cost to sell and value in use. It is determined for an individual asset, unless the asset’s value in use cannot be estimated to be close to its fair value less costs to sell and it does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

(m)Cashandcashequivalents Cash and short-term deposits in

the Statement of Financial Position comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less. For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

(n) Propertyandplantandequipment Property, plant and equipment

and leasehold improvements are carried at cost less accumulated depreciation and any impairment in value.

(i) Depreciation & amortisation

Depreciation is calculated on a straight line basis over the estimated useful life of the asset as follows:

• Exhibits–5years

• Plantandequipment–2to5years

• Leaseholdimprovements– 10 years

• CapitalisedDevelopmentCosts–3 Years

The assets’ residual values, useful lives and amortisation method are reviewed, and adjusted if appropriate, at each financial year end.

(ii) Impairment

The carrying values of property and plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

If any such indication exists and where the carrying value exceeds the estimated recoverable amount, the assets or cash-generating units are written down to their recoverable amount. Impairment losses if any are recognised in the Statement of Comprehensive Income.

The recoverable amount of property and plant and equipment is the greater of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

An item of property and plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset.

Any gain or loss on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in the Statement of Comprehensive Income.

(iii) Revaluations

Following initial recognition at cost, property and plant and equipment are carried at revalued amounts, which represent the fair value at the date of the revaluation less any subsequent accumulated depreciation and any subsequent impairment losses. Fair value is determined by reference to market-based evidence, being the amount at which the asset could be exchanged between knowledgeable parties as an arm’s length transaction.

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont...)

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015


1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont...)


(o) Tradeandotherreceivables Trade receivables are recognised

initially at fair value and subsequently measured at amortised cost less provision for doubtful debts. Trade receivables are due for settlement no more than 120 days from the date of recognition for land development and resale debtors and no more than 30 days for other debtors.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful receivables is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of the estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial. The amount of the provision is

recognised in the Statement of Comprehensive Income.

(p) Goodsandservicestax(GST) Revenues, expenses and assets

are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority 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 taxation authority, are presented as operating cash flow.

(q) Fairvalueestimation The nominal value less estimated

credit adjustments of trade

and other current receivables and payables are assumed to approximate their fair values.

(r) Foreigncurrencytranslation Transactions in foreign currency are

translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at balance date are translated to Australian dollars at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the Statement of Comprehensive Income. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

(s) New accounting standards and interpretations

Certain new accounting standards have been published that are not mandatory for 30 June 2015 reporting periods. The Company has not applied the following in preparing this financial report:

AASB reference

TitleandAffected Standard(s): Nature of Change

Application date: Impact on Initial Application

AASB 9 (issued December 2009 and amended December 2010)

Financial Instruments

Amends the requirements for classification and measurement of financial assets

Annual reporting periods beginning on or after 1 January 2015

Adoption of AASB 9 is only mandatory for the year ending 30 June 2016. The entity has not yet made an assessment of the impact of these amendments.

AASB 15 (issued December 2014)

Revenue from Contracts with Customers

Replaces AASB 118 Revenue, which covers contracts for goods and services, and AASB 111 Construction Contracts.

New standard is based on the principle that revenue is recognised when control of a good or service transferred, rather than on transfer of risks and rewards.

Annual reporting periods beginning on or after 1 January 2017

Adoption of AASB 15 is only mandatory for the year ending 30 June 2018. The entity has not yet made an assessment of the impact of these amendments.


2. FINANCIAL RISK MANAGEMENT

2015 2014

$ $

Trade receivables – counterparties without external credit rating –

Existing customers with no defaults in past 142,898 287,172

New customers (less than 6 months) 7,057 17,947

Existing customers with some defaults in the past – –

149,955 299,119

Cash and cash equivalents

AA rating 6,939,154 8,853,372

2015 Floating interest rate Non-interest bearing Total

Financial assets

Cash 6,939,154 – 6,939,154

Trade and other receivables – 670,231 670,231

Financial liabilities

Trade and other payables – 1,261,173 1,261,173

Weighted average interest rate 2.91%

2014 Floating interest rate Non-interest bearing Total

Financial assets

Cash 8,853,372 – 8,853,372

Trade and other receivables – 725,806 725,806

Financialliabilities

Trade and other payables – 1,727,140 1,727,140

Weighted average interest rate 3.21%

c) InterestRateRisk The Company’s exposure to interest

rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates, is limited by its policy of investing only in large

and recognised banking institutions where exposure to volatile interest rates is minimal. The effective weighted average interest rates on those financial assets and financial liabilities, is as follows:


(a) FinancialRiskManagement The Company’s overall risk

management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Company. The main risks the Company is exposed to through its financial instruments are credit risk, interest rate risk and liquidity risk.

(b) CreditRisk

Credit Risk refers to the risk that a third party will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with credit worthy customers with a sound financial background as a means of mitigating the risk of financial loss from defaults. The Company measures credit risk on a fair value basis.

The Company does not have any significant credit risk exposure to a single third party or any group of entities having similar characteristics. The carrying amount of financial assets recorded in the financial statements, net of any provisions for losses, represents the Company’s maximum exposure to credit risk.

Financial assets that are neither past due nor impaired are as follows:


Sensitivity analysis relating to interest rate risk has not been disclosed as any impact is not considered material to the profit or loss of the Company.

(d) FairValueEstimation The carrying value less impairment

provision of trade receivables and payables is a reasonable approximation of their fair values due to the short term nature of trade receivables. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Company for similar financial instruments.

(e) LiquidityRisk Prudent liquidity risk management

implies maintaining appropriate cash to ensure that the Company is operating with sufficient cash supplies whilst maximising its investment return on surplus funds.

Management monitors rolling forecasts of the Company’s liquidity on the basis of anticipated cash flow. Forecast liquidity reserves for the twelve month period ending 30 June 2016 are as follows:

Opening Balance for the Period $6,907,399

Cash Inflows from Activities $17,767,490

Cash Outflows from Activities $18,514,104

Closing Balance for the Period $6,160,784

Longer term liquidity forecasts are primarily geared to the timing of State funding instalments set down in the Five Year Funding Agreement signed by the Company and by the State on 20 June 2013.

Maturities of financial liabilities

The table below analyses the entity’s financial liabilities into relevant maturity groupings based on the remaining period at the

reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.


2. FINANCIAL RISK MANAGEMENT (cont...)

Total Less than 1-2 Over contractual Carrying 6 months years 2 years cash flows amount

2015Trade and other payables 841,899 – – 841,899 841,899

2014

Trade and other payables 1,331,533 – – 1,331,533 1,331,533

2015 2014

$ $

3. REVENUE

Revenuefromcontinuingoperations

Admissions 2,079,028 1,830,979

Exhibition Rental 1,607,439 772,514

Partnerships – cash 3,083,427 4,047,020

– non cash 305,764 243,715

Merchandise sales 523,677 497,196

Education programs 449,271 469,866

Scitrekker memberships 323,405 310,959

Marketing functions 344,622 280,958

State government funding (note a) 8,100,000 9,741,405

State Department of Education funding (note a) 143,721 95,383

Federal government funding (note b) 328,970 229,030

Interest received 278,165 258,462

Other operating revenue 9,270 48,977

TOTALREVENUE 17,576,759 18,826,464

(a) State government grants

State government grants totalling $8,243,721 (2014 $9,836,788) were recognised as income during the financial year. No unfulfilled conditions or other contingencies attach to these grants and no other form of assistance was received from the State during 2014-15.

(b) Federalgovernmentgrants

Federal government grants totalling $328,970 (2014 $229,030) were recognised as income during the financial year. No unfulfilled conditions or other contingencies attach to these grants and no other form of assistance was received from the Federal government during the year.


4. NET PROFIT

Net Profit includes the following specific expenses:-

2015 2014

$ $

Amortisation of leasehold improvements 96,948 67,596

Depreciation of – exhibits 1,497,483 1,358,422

– plant & equipment 273,564 180,014

– motor vehicles 57,028 69,375

Total depreciation 1,828,075 1,607,811

Asset impairment losses – 168,877

Transfer to provisions for – annual leave 39,922 (4,664)

– long service leave (22,865) 1,082

17,057 (3,582)

5. AUDITORS’ REMUNERATION

Amounts due and receivable by the auditors for:-

Auditing services 26,500 26,500

6. TRADE AND OTHER RECEIVABLES – CURRENT ASSETS

Trade receivables 149,955 299,119

Other receivables 520,276 426,687

670,231 725,806

(a) Other receivables

These transactions refer primarily to anticipated refunds of GST paid on acquisitions, to operating expense prepayments and to partnerships due but unpaid at year end.

(b) Ageing of trade receivables past due not impaired

As at 30 June 2015 and 30 June 2014 there were no trade receivables past due not impaired.

(c) Ageing of impaired trade receivables

As at 30 June 2015 and 30 June 2014 there were no trade receivables impaired.



2015 2014

$ $

7. INVENTORIES-CURRENT ASSETS

Finishedgoods(DiscoveryShop) 94,192 103,741

8. PROPERTY PLANT AND EQUIPMENT

NON-CURRENT ASSETS

Leasehold improvements at cost 6,173,272 6,095,757

Less: Accumulated amortisation (5,600,555) (5,503,607)

572,717 592,150

Exhibits at cost 26,439,062 24,011,754

Less: Accumulated depreciation (22,002,398) (20,504,915)

4,436,664 3,506,839

Plant and equipment at cost 6,957,764 6,712,391

Less: Accumulated depreciation (5,804,208) (5,530,644)

1,153,556 1,181,747

Construction work in progress

– exhibits 553,531 573,613

Motor vehicles at cost 815,616 815,616

Less: Accumulated depreciation (752,612) (695,584)

63,004 120,032

Total cost of property, plant and equipment 40,939,245 38,209,131

Total accumulated depreciation & amortisation (34,159,773) (32,234,750)

Totalproperty,plantandequipment 6,779,472 5,974,381



Leasehold Plant & Improvements Exhibits Equipment

Carrying amount at 1 July 2014 592,150 3,506,839 1,181,747

Assets transferred from work in progress – 2,427,308 –

Additions 77,515 – 245,373

Impairment charge (Note (a)) – – –

Depreciation/amortisation (96,948) (1,497,483) (273,564)

Carryingamountat30June2015 572,717 4,436,664 1,153,556

Work in Motor Progress Vehicles Total

Carrying amount at 1 July 2014 573,613 120,032 5,974,381

Construction of assets 3,048,241 – 3,048,241

Assets transferred from work in progress – – 2,427,308

Additions – – 322,888

Work in progress transferred to exhibits (2,427,308) – (2,427,308)

Work in progress expensed (641,015) – (641,015)

Impairment charge (Note (a)) – – –

Depreciation/amortisation – (57,028) (1,925,023)

Carryingamountat30June2015 553,531 63,004 6,779,472



NON-CURRENT ASSETS (cont…)

Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current financial year are set out below.

(a) Impairment charge Recoverable amounts were estimated for certain exhibits and items of plant and equipment. No impairment losses were recognised

to reduce the carrying amount of any asset to their recoverable amount. The recoverable amount estimation was based on value in use.


Leasehold Plant & Improvements Exhibits Equipment

Carrying amount at 1 July 2013 103,630 3,664,972 139,367

Assets transferred from work in progress – 1,369,166 –

Additions 556,116 – 1,222,394

Impairment charge (Note (a)) – (168,877) –

Depreciation/amortisation (67,596) (1,358,422) (180,014)

Carryingamountat30June2014 592,150 3,506,839 1,181,747

Work in Motor Progress Vehicles Total

Carrying amount at 1 July 2013 310,709 107,348 4,326,026

Construction of assets 2,204,821 – 2,204,821

Assets transferred from work in progress – – 1,369,166

Additions – 82,059 1,860,570

Work in progress transferred to exhibits (1,369,166) – (1,369,166)

Work in progress expensed (572,752) – (572,752)

Impairment charge (Note (a)) – – (168,877)

Depreciation/amortisation – (69,375) (1,675,407)

Carryingamountat30June2014 573,613 120,032 5,974,381



NON-CURRENT ASSETS (cont…)

Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the 2013-2014 financial year are set out below

(a) Impairment charge Recoverable amounts were estimated for certain exhibits and items of plant and equipment. An impairment loss of $168,877 was

recognised to reduce the carrying amount of certain assets to their recoverable amounts. The recoverable amount estimation was based on value in use.


2015 2014

$ $

9. TRADE AND OTHER PAYABLES

CURRENT LIABILITIES

Trade payables 347,926 585,758

Other payables 493,973 745,775

841,899 1,331,533

10. DEFERRED INCOME

CURRENT LIABILITIES

State government funding – –

Revenue received in advance – commercial 581,460 578,307

Revenue received in advance – state government – 2,700,000

581,460 3,278,307

11. PROVISIONS

CURRENT LIABILITIES

Employee Benefits 419,274 395,607

NON-CURRENT LIABILITIES

Employee benefits 244,824 251,433

12. EXPENDITURE COMMITMENTS

(a) Operating lease commitments

Payable – not later than one year 2,125,157 1,941,724

– later than one year but not later than two years 2,189,672 2,125,158

– later than two years but not later than five years 2,245,256 4,434,928

– later than five years – –

6,560,085 8,501,810


Estimates include City West rental commitments of $291.75 per m2pa for 4340.5 m2 from 1 July 2014 escalating at 3% per annum and $163.20 per m2pa for 706 m2 from 1 July 2016 escalating at 3% per annum as per the new five year lease signed on 31 July 2013. The balance relates to City West statutory and variable outgoings and to leases for corporate vehicles and vending machines.

(b) Capital commitments

estimated aggregate amounts of contracts for capital expenditure not provided for in the accounts: 2,723,580 2,478,000



13. LEGAL FORM

Scitech Discovery Centre is a public company limited by guarantee and incorporated under the Corporations Law of Western Australia. Its registered office is First Floor, City West, corner Railway Parade and Sutherland Street, West Perth, in the State of Western Australia. Its ABN is 55 009 292 700.

Every member of the company undertakes to contribute an amount to the assets of the company in the event of it being wound up, not exceeding $100 per member. As at 30 June 2015, there were 39 members.

14. RELATED PARTIES

Board Directors received no emolument from the company and no payments to superannuation funds for the provision of retirement benefits were made on their behalf.

Transactions with related parties

Director Colin Beckett was the General Manager, Greater Gorgon Area, Chevron Australia during the 2014-2015 financial year. Director John Udd was Vice President, Production Logistics & Infrastructure, BHP Billiton Iron Ore. Director David Joyce sits on the Executive Committee of Rio Tinto Iron Ore. Director Shaun Gregory Woodside Energy Limited. Chevron, BHP Billiton Iron Ore, Rio Tinto Iron Ore and Woodside all provided partnership funding to the company during the 2014-2015 year.

Professor Mark Hackling is on staff at Edith Cowan University and Professor Grady Venville is on staff at the University of Western Australia. Both universities provided financial support for specific programs held by the company during the year.

Director David Axworthy is the Deputy Director General, Schools, Department of Education which provided a grant for the delivery of professional development workshops for teachers in Department schools.

Aggregate amounts of each of the above types of transactions with Directors were as follows:

2015 2014

$ $

Financial support received 2,359,140 2,001,727

Grants received 143,721 95,383

Legal advice provided 0 2,702

15. NOTES TO THE STATEMENT OF CASH FLOWS

i)Reconciliationofnetcashinflowsfromoperatingactivitiestonetprofit after income tax:- 2015 2014

$ $

Net profit after income tax 1,995,172 4,606,441

Depreciation 1,828,075 1,607,811

Amortisation 96,948 67,596

Asset Impairment Losses - 168,877

(Increase)/decrease in trade and other receivables 55,575 72,818

(Increase)/decrease in inventories 9,549 (19,711)

Increase/(decrease) in trade and other payables (489,633) 3,748,827

Increase/(decrease) in provisions 17,057 (3,582)

Increase/(decrease) in deferred income (2,696,847) (1,741,405)

Netcashinflowfromoperatingactivities 815,896 8,507,672

ii)Financingarrangements At reporting date there were no credit facilities available to the Company.

16. EVENTS OCCURING AFTER THE REPORTING PERIOD

There has been no matter or circumstance, other than that referred to in the financial statements or notes thereto, that has arisen since the end of the financial year, that has significantly affected, or may significantly affect, the operations of the company, the results of those operations, or the state of affairs of the company in future financial years.


INDEPENDENT AUDITORS’ REPORT


Scitech Discovery CentreCityWestcentreCornerRailwayStreet&SutherlandStreetWestPerth,WesternAustralia6005ph:0892150700e:[email protected]

scitech discovery centre annual report · 6 scitech discovery centre annual report 2014-2015 the...

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