2011/2012 annual report - financial section

FINANCIAL STATEMENTS

ANNUAL REPORT

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DIAL BEFORE YOU DIG ANNUAL REPORT 2012 3

INDEPENDENT AUDIT REPORT

To the members of Dial Before You Dig VIC/TAS Inc.

ScopeWe have audited the financial report of Dial Before You Dig VIC/TAS Inc. for the year ended 30 June 2012 comprising of the Statement Of Comprehensive Income, Statement Of Financial Position, Statement of Cash Flows and notes to the financial statements.

The Association is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Associations Incorporation Act VIC 1981. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers

internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the committee, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

In conducting our audit, we have complied with the independence requirements of Australian professional ethical pronouncements.

Audit OpinionIn our opinion, the financial report of Dial Before You Dig VIC/TAS Inc. is in accordance with the Associations Incorporation Act VIC 1981 including:

i. giving a true and fair view of the Association’s financial position as at 30 June 2012 and of their performance for the year ended on that date; and

ii. complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Associations Incorporation Act VIC 1981.

Harmon Partners Chartered Accountant

Heinz Ma Partner

Dated this 18th day of October 2012.

Your committee members submit the financial report of the DIAL BEFORE YOU DIG VIC/TAS INC. for the financial year ended 30 June 2012.

COMMITTEE MEMBERS

The names of the committee members throughout the year and at the end of this report are:

Scott Glenn Reid (Date of appointment 26/02/2002) Bob Seiffert (Date of appointment 25/02/2011) Anthony Cook (Date of appointment 29/02/2012) Jason Harrigan (Date of appointment 30/11/2005) Karen Stiff (Date of appointment 01/03/2007) Neil Pendergast (Date of appointment 30/11/2005) David Sutcliffe (Date of appointment 25/02/2011) Frank DeNino (Date of appointment 26/05/2011) Claude Cullino (Date resigned 20/12/2011) Chris Davis (Date resigned 01/06/2012)

PRINCIPAL ACTIVITIESThe principal activities of the association during the financial year were: - Referral Service

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

OPERATING RESULTSThe profit from ordinary activities after providing for income tax amounted to $212,870.

Signed in accordance with a resolution of the Members of the Committee: Committee Member:

……………………………………… ……………………………………………… Scott Glenn Reid Jason Harrigan


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COMMITTEE'S REPORT


FOR THE YEAR ENDED 30 JUNE 2012 Note 2012 $ $

Revenues from ordinary activities 2 2,019,890 2,000,324 Loss on Sale of Fixed Asset (2,207) (7,663) Employee Expense (344,990) (333,870) Depreciation and amortisation expenses (35,069) (29,893) Enquiry and Referral Fees (803,090) (843,097) Other expenses from ordinary activities (621,664) (591,801)

Profit/(Loss) before income tax expense 212,870 194,000

Income tax expense 1 - -

Profit/(loss) for the year 212,870 194,000

Other comprehensive income after income tax: Net gain on revaluation of financial assets - - Other comprehensive income for the year, net of tax - -

Total comprehensive income / (Loss) for the year 212,870 194,000Total comprehensive income / (Loss) attributable 212,870 194,000 to members of the entity

STATEMENT OF COMPREHENSIVE INCOME

AS AT 30 JUNE 2012 Note 2012 2011 $ $

CURRENT ASSETS Cash and Cash Equivalents 4 915,208 767,985 Receivables 5 336,823 370,405 Prepayments 6 31,932 14,417

TOTAL CURRENT ASSETS 1,283,963 1,152,807

NON-CURRENT ASSETS Property, plant and equipment 7 196,759 98,311

TOTAL NON-CURRENT ASSETS 196,759 98,311

TOTAL ASSETS 1,480,722 1,251,118

CURRENT LIABILITIES Payables 8 237,721 224,935 Provisions 9 25,121 27,444

TOTAL CURRENT LIABILITIES 262,842 252,379

NON CURRENT LIABILITIES

Provisions 9 16,674 10,403

TOTAL NON CURRENT LIABILITIES 16,674 10,403

TOTAL LIABILITIES 279,516 262,782

NET ASSETS 1,201,206 988,336

EQUITY Retained Profits 1,201,206 988,336

TOTAL EQUITY 1,201,206 988,336

STATEMENT OF FINANCIAL POSITION

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STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2012 Retained General Total Earnings Reserves $ $ $

Balance at 30 June 2010 $794,336 - $794,336

Profit for the year $194,000 - $194,000

Balance at 30 June 2011 $988,336 - $988,336

Profit for the year $212,870 - $212,870

Balance at 30 June 2012 $1,201,206 - $1,201,206

FOR THE YEAR ENDED 30 JUNE 2012 Note 2012 2011 $ $

CASH FLOWS FROM OPERATING ACTIVITIESReceipts from customers 2,240,203 2,143,515 Interest received 23,313 21,315 Payments to suppliers and employees (1,980,570) (2,012,100)

Net cash provided by (used in) operating activities 10 282,946 (152,730)

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment 460 16,364 Payments for property, plant and equipment (136,183) (45,325) Proceeds from repayment of loans by related parties - -

Net cash provided by (used in) investing activities (135,723) (28,961)

CASH FLOWS FROM FINANCING ACTIVITES Net cash provided by (used in) financing activities

Net increase (decrease) in cash held 147,223 123,769 Cash at beginning of year 767,985 644,216

Cash at end of year 10 915,208 767,985

STATEMENT OF CASH FLOWS

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FOR THE YEAR ENDED 30 JUNE 2012

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIESThe financial report is a general purpose financial report that has been prepared in accordance with applicable Australian Accounting Standards, Australian Accounting Interpretations and the requirements of the Associations Incorporation Act VIC.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions to which they apply.

Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated.

The financial statements have been prepared on an accrual basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

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

InvestmentsNon-current investments are measured on the cost basis. The carrying amount of investments is reviewed annually by the Committee to ensure it is not in excess of the recoverable amount of these investments.

The recoverable amount is assessed from the quoted market value for shares in listed companies. The expected net cash flows from investments have not been discounted to their present value in determining the recoverable amounts.

NOTES TO THE FINANCIAL STATEMENTS


Property, Plant and EquipmentEach class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.

Plant and equipmentPlant and equipment is measured on the cost basis and is therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of plant and equipment is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount. A formal assessment of recoverable amount is made when impairment indicators are present.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the association and the cost of the item can be measured reliably. All other repairs and maintenance are recognised in profit or loss during the financial period in which they are incurred.

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

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of comprehensive income. When revalued assets are sold, amounts included in the revaluation relating to that asset are transferred to retained earnings.


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Depreciation The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding freehold land, are depreciated on a straight line basis over their estimated useful lives to the economic association commencing from the time the asset is held ready for use. Properties held for investment purposes are not subject to a depreciation charge. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

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

Class of Fixed Asset Depreciation RatePlant and Equipment 17% - 33.33% Plant and Equipment < $300 100% Office Furniture & Equipment 5% - 33.33% Motor Vehicles 12.5% Computer Software 40% Structural Improvements 2.5%

Employee BenefitsProvision is made for the association’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits are expected to be settled within one year together with benefits arising from wages and salaries plus annual leave which will be settled after one year. This has been measured with amounts expected to be paid when the liability is settled plus related on-costs Other employee benefits payable later than one year, have been measured at the present value of the estimated future cash outflows to be made for those benefits.

Contributions are made by the company to an employee superannuation fund and are charged as expenses when incurred.

Employee benefits outstanding at the end of the financial year are as follows:

2012 2011 $ $

Annual Leave 25,121 27,444 Long Service Leave 16,674 10,403

41,795 37,847

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



RevenueInterest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

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

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

Goods and Services Tax (GST)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.

Trade and Other PayablesTrade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the association during the reporting period that remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.

ProvisionsProvisions are recognised when the association has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period.

Income TaxNo provision for income tax has been raised as the association is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

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2. REVENUE 2012 2011 $ $

Operating activities 1,996,577 1,979,009 Rendering of services

Non-operating activities 23,313 21,315 Interest received 2,019,890 2,000,324

3. PROFIT FROM ORDINARY ACTIVITIES 2012 2011 $ $

Profit/(Loss) from ordinary activities before income tax expense has been determined after:

Auditor Remuneration Auditing the financial report 6,250 7,364 Total Auditor Remuneration 6,250 7,364

Depreciation of non-current assets Depreciation & Amortisation 35,069 29,893 Total depreciation 35,069 29,893

Advertising and Strategic Projects Marketing 409,734 405,802 Strategic Projects 25,779 25,300 Total Advertising and Strategic Projects 435,513 431,102

Revenue and Net Gains: Net Loss on disposal of plant and equipment (2,207) (7,663)


4. CASH ASSETS 2012 2011 $ $

Petty Cash 317 312 Cash at Bank 433,208 288,300 ANZ Term Deposit Office Bond (a) 6,299 5,942 ANZ Online Saver Account 224,950 235,652 ANZ Term Deposit 9876 41841 250,434 237,779

915,208 767,985

(a) The Term deposit with ANZ bank is held as security against the office lease at Suite 1, Level 1, Essendon Fields Shopping Centre, 30 English Street, Essendon Fields, Victoria. To mature on 29/04/2013.

5. RECEIVABLES 2012 2011 $ $

CurrentTrade Debtors 324,066 358,949 Less: Provision for Doubtful Debts - - 324,066 358,949 Sundry Debtors 9,494 10,838 GST Accrual 1,711 618 GST Refund 1,552 - 336,823 370,405

6. PREPAYMENTS 2012 2011 $ $

Current Prepayments 31,932 14,417

31,932 14,417


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7. PROPERTY, PLANT AND EQUIPMENT 2012 2011 $ $

Plant and Equipment 25,929 28,470 Less: Accumulated Depreciation (18,557) (18,577) 7,372 9,893

Motor Vehicles 78,829 78,829 Less: Accumulated Depreciation (20,668) (10,787) 58,161 68,042

Computer Software 1,506 7,284 Less: Accumulated Depreciation (482) (5,272) 1,024 2,012

Office Fit out Costs 111,117 12,007 Less Accumulated Amortisation (9,285) (10,292) 101,832 1,715

Office Furniture and Equipment 38,862 26,091 Less: Accumulated Depreciation (10,492) (9,442) 28,370 16,649 Total Property, Plant and Equipment 196,759 98,311

Movements in Carrying Amounts: Movement in the carrying amounts for each class of property, plant and equipment between the beginning and end of the current financial year. Plant and Equipment $

Balance at the beginning of the financial year 98,311Additions 136,183 Disposals and Adjustments (2,666) Depreciation and Amortisation (35,069)

Carrying Amount at the end of the year 196,759


8. PAYABLES 2012 2011 $ $

Current Trade Creditors 186,914 181,893 Other Creditors 44,673 30,102 GST Adjustment 520 21 GST Payable - 8,810 Amounts Withheld 5,614 4,109

237,721 224,935

9. PROVISIONS 2012 2011 $ $

Current Provision for Holiday Pay 25,121 27,444 Non Current Provision for Long Service Leave 16,674 10,403

41,795 37,847

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10. CASH FLOW INFORMATION 2012 2011 $ $

Reconciliation of cashCash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows:

Petty Cash 317 312 Cash at Bank 433,208 288,300 ANZ Term Deposit - Office Bond 6,299 5,942 ANZ Online Saver Account 224,950 235,652 ANZ Term Deposit 9876-41841 250,434 237,779

915,208 767,985

Reconciliation of net cash provided by operating activities after income tax Profit/(Loss) from ordinary activities after income tax 212,870 194,000 Non-cash flows in profit (loss) from ordinary activities Net loss on disposal of property, plant and equipment 2,207 7,663 Depreciation and Amortisation 35,069 29,893

Changes in assets and liabilities, net of the effects of purchase and disposals of subsidiaries (Increase)/decrease in prepayments (17,515) (5,711) (Increase)/decrease in receivables 33,582 (32,638) Increase/(decrease) in payables 12,786 (55,286) Increase/(decrease) in other provisions 3,947 14,809

Cash flows from operations 282,946 152,730


11 CAPITAL AND LEASING COMMITMENTS

a. Operating Lease CommitmentsNon - cancellable operating leases contracted for but not capitalized in the financial statements:

2012 2011 $ $

- not later than one year - 16,765 - between one year and five years - - - greater than five years - -

- 16,765

The Association did not exercise the option to renew the lease at Office Suite 1, Level Essendon Fields Shopping Centre, 30 English Street, Essendon Fields, Victoria. The lease was on a month to month basis and ceased in March 2012.

12. RELATED PARTIESFrom 1 July 2012, the association has entered into a service agreement with the Association of Australian Dial Before You Dig Services Limited for the provision of administrative, business operations, marketing functions and office space to the association.

13. SEGMENT REPORTINGThe association operates predominately in one business and geographical segment being the provision of a referral service to members of the association in Victoria and Tasmania.

14. EVENTS AFTER THE REPORTING PERIODThere have been no significant events subsequent to Balance Date.

15. ASSOCIATION DETAILSThe registered office of the association is: Dial Before You Dig Vic/Tas Inc35 Railway Road Blackburn Vic 3130

The principal place of business of the association is: Dial Before You Dig Vic/Tas Inc35 Railway Road Blackburn Vic 3130.


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In the opinion of the committee the financial report as set out on pages 2 to 15:

1. Presents fairly the financial position of DIAL BEFORE YOU DIG VIC/TAS INC. as at 30 June 2012 and its performance for the year ended on that date in accordance with Australian Accounting Standards, other mandatory professional reporting requirements and other authoritative pronouncements of the Australian Accounting Standards Board.

2. At the date of this statement, there are reasonable grounds to believe that DIAL BEFORE YOU DIG VIC/TAS INC. will be able to pay its debts as and when they fall due.

This statement is made in accordance with a resolution of the Committee and is signed for and on behalf of the Committee by:

Committee Member:

……………………………… …………………………….. Mr Scott Glenn Reid Mr Jason Harrigan


STATEMENT BY MEMBERS OF THE COMMITTEE



REVENUE 2012 2011 $ $

Anz Business One Rewards 431 435 Fees Received 1,966,146 1,943,574 Marketing Contributions 30,000 35,000

1,996,577 1,979,009

OTHER REVENUE

Interest Received 23,313 21,315 Loss on Sale of Non-Current Assets (2,207) (7,663)

21,106 13,652

2,017,683 1,992,661

INCOME AND EXPENDITURE STATEMENT

2012 2011 $ $

Accountancy Fees 8,890 9,920 Annual Leave Expense - Accrued (2,323) 4,406 Auctions Expenses 266 - Auditor’s Remuneration 6,250 7,364 Marketing 409,734 405,802 Bank Charges 1,013 1,032 Business Management System Costs - 250 Cleaning Costs 1,237 1,040 Depreciation and Amortisation 35,069 29,893 DBYD Enquiry Costs 448,108 468,127 Equipment < $300 596 2,390 Plant Hire Costs 562 749 Employee Benefits Expense 16,351 16,042 Entertainment Expenses 3,587 3,050 Filing Fees 254 356 Fringe Benefits Tax 13,345 13,851 Insurance 8,105 7,069 IT Support 5,810 7,910 Interest Paid - 297 Legal Costs 9,348 5,590 Long Service Leave Expense - Accrued 6,271 10,403 Electricity Costs 938 1,066 Meeting Costs 15,800 11,167 Motor Vehicle Expenses 22,357 24,158 Postage 1,595 2,342 Office Supplies 8,929 6,770 Rates and Taxes 836 791 Referrals - Dig Safe 354,982 374,970 Relocation Costs 12,132 - Rent 20,923 20,252 Salaries and Wages 272,780 255,641 Security Costs 504 469 Training Costs 12,494 11,353

INCOME AND EXPENDITURE STATEMENT

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2012 2011 $ $

Strategic Projects 25,779 25,300 Subscriptions 10,680 7,397 Storage Fees 3,109 2,455 Superannuation Contributions 26,072 25,009 Telecommunications 13,337 12,513 Travelling Expenses 27,842 20,450 Work cover 1,251 1,017

1,804,813 1,798,661

Profit/(Loss) from ordinary activities before income tax 212,870 194,000 Retained profits at the beginning of the financial year 988,336 794,336

Retained profits at the end of the financial year 1,201,206 988,336

Dial Before You Dig Vic/Tas INC35 Railway Road, Blackburn, Victoria, 3130

P: 03 9259 0100F:: 03 9877 0438

ACN: A0027302YABN: 69900619916

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2011/2012 annual report - financial section