ANNUAL REPORT 2018 - AIRAH · 11 Marketing and Communications 15 Our Divisions 18 Financial Report ... Sydney brought interested experts together to discuss trending industry topics

A N N UA L R E P O R T F O R T H E Y E A R E N D E D D E C E M B E R 31 , 2 018

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CONTENTS

AIRAH, Inc. | 2018 Annual Report | 1

2 President’s Report

4 CEO’s Report

6 AIRAH in 2018

7 Advocacy

8 AIRAH Awards 2018

10 Professional Development

11 Marketing and Communications

15 Our Divisions

18 Financial Report

20 Directors’ Report

23 Auditor’s Independence Declaration

42 Independent Auditor’s Report

PRESIDENT’S REPORT

2 | 2018 Annual Report | AIRAH, Inc.

A time to lead

After a successful 2017 for AIRAH, we began the year in a positive place operationally, strategically and financially. Knowing that the best time to launch initiatives is from a position of strength and stability, we went into 2018 full of enthusiasm – and decidedly on the front foot.

Once again, we ran a packed calendar of events across the country. Highlights included the Future of HVAC conference in Melbourne, attended by more than 180 people listening to 40 guest speakers over two days. The Building Physics Forum in Wollongong was a major success, attracting more than 100 people.

The Solar Heating and Cooling Forum in Brisbane, Refrigeration 2018, and the inaugural Resilience Forum in Sydney brought interested experts together to discuss trending industry topics. These events also represented the fruits of AIRAH’s Special Technical Groups, which were heavily involved in the organising committees.

And the year was capped off by our best attended AIRAH Awards Presentation Dinner.

At ARBS, AIRAH managed to secure an enviable stand position. The division events and Trade Nights (since rebranded as Industry Nights) that took place across the country continued apace. We held 17 of these popular events, with an average of 100 people through the door on each occasion.

In this way, AIRAH extended its reach and cemented its status as the industry’s peak membership body and the leading provider of HVAC&R knowledge.

AIRAH again had another strong financial result, recording $382,346 in surplus before depreciation and our asset base grew to $5,220,802. Buoyed by our student membership, membership numbers grew considerably to 3,392.

Another aspect of this was our work in professional development. The AIRAH-Accredited Professional Diploma of Building Services – HVAC&R, AIRAH’s industry-leading postgraduate diploma for HVAC&R practitioners, went from strength to strength; it had intakes in April and October. Another 80 students began the program in 2018. This takes the total enrolment since the program’s inception in 2016 to more than 180 students. The PDBS – HVAC&R continues to be the industry’s must-do onboarding and upskilling education resource.

AIRAH’s other professional development offerings were notably well subscribed in 2018, with many courses selling out. This is a great signal of health for our industry, reflecting an appetite and a commitment to staying up to date with the latest technology and regulations.

The challenge, as always, is to keep moving forward, and in 2018 we significantly expanded our offering of online courses. Appreciating that it provides flexibility, and can be accommodated around other commitments, professionals are increasingly looking for online training options. Aircon 101, HVAC&R Fundamentals, and Flammable Refrigerants training were all successfully launched or piloted, boding well for our future in this burgeoning training medium.


AIRAH’s digital expansion was even more notable in the communications and publications space. One of the largest projects was the revamping of the long-running Industry Directory into an online search engine, which brings us in line with modern search technology and exploits the internet’s multimedia potential. HVAC&R Search now offers a genuine value-adding online marketplace to complement the physical ID, which has been rebranded as HVAC&R Search Compendium.

Our print magazines, Ecolibrium and HVAC&R Nation, had another strong year in terms of content, circulation and advertising revenue. And in 2018 they were complemented by the launch of a website for sharing industry news: HVAC&RNews. By the end of the year this had achieved 10,000 monthly visits.

Similarly, we were able to improve AIRAH’s social media reach, with growth across all channels: LinkedIn, Facebook and Twitter. We also dipped our toe into the waters of podcasting, with the launch of AIRAH on Air, and created a video to help raise the profile of the industry: HVAC&R – Shaping Your World.

Of course, AIRAH’s strength as the voice of the HVAC&R industry is a direct function of our involvement – and our members’ involvement – in it. An example of this is the new residential air conditioning standard AS/NZS 5141. Six years in the making, it is a powerful tool for raising the quality of work and improving our sector’s energy efficiency and sustainability. Other vital initiatives included research into the walk-in coolroom sector, the roadmap for solar heating and cooling, and iHub.

On a personal note, I was very proud to be re-elected to the esteemed role of AIRAH President. With the help of the board, I look forward to continuing and building on the positive results we achieved in 2018. Thanks must go to Paul Bannister, F.AIRAH, who stepped down from his position as a board director, and a warm welcome to Paul Jackson, F.AIRAH, who replaced him.

With progressive leadership, a fit and happily functioning operation, and our AIRAH membership – perhaps our biggest strength – we look forward to 2019 with optimism and excitement.

Ian Harwood, F.AIRAH AIRAH President

CEO’S REPORT


One of the first things you learn when you’re helping to run an organisation as large and diverse as AIRAH is that you will be confronted with a considerable array of voices about how it should work. Indeed, the range of opinions regarding what the Institute is about, has been about and should be about in the future are nearly infinite.

I entered the role of CEO with a firm view of the organisation. But after meeting and talking with some of the many hundreds of members and volunteers who make up the groups, divisions and committees that enable the smooth running of the work we do, I found my ideas readily challenged.

AIRAH carries out many important functions in the building services industry – from training to certification to knowledge creation – and all these areas have passionate champions who believe that their function is the most important one of all.

However, over the past few years, I’ve come to think that the most important role that AIRAH plays is its ability to inspire – especially during those moments when the future appears uncertain. Among all the practical benefits, membership of AIRAH is a commitment to realising a better future for the HVAC&R industry. It’s a future in which members grow and share their knowledge in order to make their work better, and pass those benefits on to the Institute in the form of safer, more comfortable and more sustainable environments.

It is true that we may not know exactly how government will approach substantial issues that affect the built environment for months, and probably years. So it remains up to institutions such as AIRAH to set the agenda, maintain standards and act as cheerleaders for better and more sustainable buildings.

In the coming years the built environment will need our hard work and advocacy more than ever. This presents an excellent opportunity to push for an even more ambitious program of sustainability-related measures that will build strong foundations for future generations. The true strength of AIRAH is its ability to call on the accumulated wisdom of thousands of some of the most skilled and dedicated professionals across all fields in the built environment, and to focus that knowledge towards solving some of the coming decade’s most profound problems.

Keeping to our strategic aims, AIRAH is working towards becoming:

1. Australia’s recognised peak membership body in HVAC&R for both individuals and organisations

2. The leading provider of industry-recognised accredited training and education programs for HVAC&R professionals

3. The leading provider of HVAC&R knowledge, resources, news and information

4. The leading independent voice for the HVAC&R industry on Resilience, Innovation, Sustainability, Compliance and Transition to a low-emission future

5. A commercially savvy, contemporary and sustainable business.


In 2018 we began planning for two critical projects – the development of AIRAH’s strategy for 2020 and beyond, and the delivery of AIRAH centenary celebrations during 2020. Both provide opportunities for members and key stakeholders to share their ideas on the areas they feel AIRAH should be addressing as part of our strategic goals and direction.

AIRAH turns 100 in 2020. To mark this milestone, planning will be in place through 2019 to not only seek your ideas on ways to recognise those who have gone before us, but also how to set AIRAH up for another 100 years. Please take some time to get involved in each of these activities. Your input will make a difference.

As energy security, cooperation on climate change and the HFC phase-down become keenly discussed issues, we will be working with our membership to create solutions.

Of course, this would not be possible without the dedicated volunteers who give so much of their time and effort to help us deliver education, training and individual development, which drives the industry forward in Australia and around the world. Whether it’s our highly regarded divisional activities, or lending expertise to help organise the sophisticated machine that is AIRAH, the volunteers’ help is of incalculable benefit.

AIRAH also relies on our dedicated team of staff, who work tirelessly to further our Institute’s work so that it can remain at the forefront of our industry’s issues. Though their work this year we have been able to deliver an unprecedented number of events, training programs and workshops. We’ve also been able to advocate to both federal and state governments on the value that AIRAH and its members bring to the great community.

It is the synergy between our members, staff and stakeholders that makes AIRAH a special and valued place for all involved.

Tony Gleeson, M.AIRAH Chief Executive Officer

AIRAH IN 2018


Government relations and technical services

AIRAH is a trusted partner working with government at all levels. This year we have completed a pioneering new training format for the trade and a new research project focused on energy efficiency in cool rooms. We have continued our strong working relationship and influence with the Australian Building Codes Board, Standards Australia, the Australian Sustainable Built Environment Council, Sustainability Victoria, and NABERS.

AIRAH’s Special Technical Groups have been active, with their wide range of activities including one-day workshops, reports, Ecolibrium articles, conference panels sessions and podcasts. The STGs were also part of policy responses including input into the 2018 pre-Federal Budget submission.

We continue to add value to members by offering improved online access to our IP such as the AIRAH Handbook and DA Manuals – which are free for members. Members now have exclusive online access to the archive of Ecolibrium articles, past technical papers and HVAC&R Nation Skills Workshops.

Development and updating of our DA manual range including DA09 Air Conditioning Load Estimation, DA15 Air Filters and DA19 HVAC&R Maintenance was carried out, with plans for a 2019 release.

We have also signed a partnership with the Institute of Refrigeration UK (IOR), which was established to provide members online access to the IOR’s extensive range of publications for a small fee. We also continue our strong relationship with ASHRAE via its Associate Society Alliance, which provides input and support on several technical issues.


Through our advocacy work, major achievements included:

ABCB – AIRAH has worked closely with the Australian Building Code Board building codes committee and energy efficiency working groups to help deliver transformational changes in energy efficiency for the National Construction Code 2019.

Standards Australia – the new standard AS/NZS 5141 Residential heating and cooling systems – Minimum applications and requirements for energy efficiency, performance and comfort criteria, was released. This standard provides consumers with a guide to what they should expect from a residential system installation.

AIRAH has been successful in having a new project approved to develop a technical specification for building commissioning, and a new standard for indoor air quality.

AIRAH is a strong supporter of Standards Australia’s Future Leader program, and two members have been accepted into this year’s intake

ASBEC – AIRAH partnered with and helped fund the report Built to Perform: An Industry Led Pathway to a Zero Carbon Ready Building Code. The project was delivered in partnership with CSIRO, Energy Action (EA), Strategy. Policy. Research Pty Ltd, and the Sustainable Buildings Research Centre at the University of Wollongong (UOW).

NABERS – AIRAH has supported the development of the new strategic plan and international engagement strategy, and has been selected as a member of the newly formed national steering committee.

Sustainability Victoria – AIRAH partnered with Sustainability Victoria to promote and deliver a series of commercial refrigeration masterclass seminars in regional Victoria. AIRAH is also a founding partner of the TAKE2 program targeting net-zero emissions in the state.

Department of the Environment and Energy – With support from the Department of the Environment and Energy we have developed new online training for the trade, based on the Flammable Refrigerant Safety Guide.

Department of Environment, Land, Water and Planning – AIRAH worked with the Victorian Department of Environment, Land, Water and Planning to undertake research to the barriers to energy efficiency in the walk-in cool room and freezer (WICF) sector. They have also supported the development of a best practice guide for WICFs.

Building Minsters’ Forum – As part of our ongoing support and collaboration with key industry groups we have been invited to the Building Ministers’ forum to participate in an industry forum. This is a result of the Shergold Weir report into building compliance and enforcement.

Rocky Mountain Institute – AIRAH was invited by the Rocky Mountain Institute to become the Australian outreach partner for the Global Cooling Prize, and was represented at the launch in India.

ADVOCACY

AIRAH AWARDS 2018


Widely recognised as Australia’s premier HVAC&R accolades, the AIRAH Awards celebrate the industry’s exemplar projects, high achievers and ground-breaking research. A record number of more than 260 attendees flocked to Melbourne’s Central Pier during November to see who would be announced the winners across 11 award categories. The evening also included the presentation of the James Harrison Medal.

Student of the Year – Higher Education or ResearchWinner: Clayton McDowell, Stud.AIRAH, Sustainable Buildings Research Centre, University of Wollongong

Student of the Year – TradeDual winners: Patrick Brennan, Stud.AIRAH, TAFE Queensland Skillstech, Acacia Ridge, Brisbane; and Anthony Consterdine, M.AIRAH, South Metropolitan TAFE, Perth

AIRAH Future Leader AwardWinner: Massimo Fiorentini, Affil.AIRAH, Sustainable Buildings Research Centre, University of Wollongong

Best HVAC Retrofit or UpgradeWinner: Norman Disney & Young, A Tetra Tech Company – RN Robertson Building at the Australian National University

Excellence in InnovationWinner: A.G. Coombs and AECOM – International Convention Centre, Sydney

Excellence in RefrigerationWinner: Glaciem Cooling – The Bend Motorsport Park

WR Ahern AwardWinner: Hongsen Zhang, M.AIRAH, and Dr Paul Bannister, F.AIRAH – “A calibrated simulation case study for an office building in Canberra”.

Excellence in Diversity and InclusionWinner: Simon Bradwell, M.AIRAH, ebm-papst A&NZ

Product of the YearWinner: Trafalgar Fire Containment – Firebox

Excellence in SustainabilityWinner: A.G. Coombs and AECOM – International Convention Centre, Sydney

James Harrison MedalWinner: Alan Obrart, F.AIRAH

Obrart’s CV references a who’s who of the Australian HVAC&R industry. An office bearer for Engineers Australia since 1978, he is also a former president of AIRAH, the current vice-president of the Society of Building Services Engineers, and has held councillor positions with RACCA and AMCA. When most people would be looking to retire, he took on the role of adjunct senior lecturer and co-ordinator for Sydney University’s graduate building services program to provide better learning outcomes for young (and not so young) engineers and architects. On top of all that he has started and run a string of successful companies. An enormous presence in our industry, Obrart is a hugely deserving recipient of AIRAH’s highest honour.


Excellence in Sustainability winners A.G. Coombs and AECOM

James Harrison Medal winner Alan Obrart

One of the two Student of the Year – Trade winners Patrick Brennan

The AIRAH crew

Excellence in Diversity and Inclusion winner

Simon Bradwell, M.AIRAH

The 2019 AIRAH Awards Presentation Dinner


AIRAH’s Education and Training department continues to increase our presence as the educator for the HVAC&R industry. 2018 saw an increase in the number of programs we delivered to the industry. This included 16 in-house educational programs, and 30 face-to-face seminars. A total of 1,236 people attended a variety of professional development programs during 2018, up from 1,081 people in 2017.

The AIRAH Accredited Professional Diploma of Building Services – HVAC&R continued its enrolment momentum, with another 80 students beginning the program in 2018. This takes the total student enrolment since its inception in 2016 to over 180 students. The program continues to be the industry’s must-do onboard and upskilling education resource.

2018 was one of the busiest on record for the AIRAH conferences. More than 540 industry professionals in total attended the five conferences held during 2018. The highlights of the conference program were the Future of HVAC 2018 conference, which tallied a record number of attendances at 178 delegates, and the Building Physics Forum. Held in Wollongong over two days, the Building Physics Forum saw more than 100 people attend.

During 2018, we worked hard to see the development of our new online AIRAH-accredited Professional Certificate in HVAC&R Fundamentals training program take shape with the first of the modules released late in 2018. The remainder of the program is well advanced in its development and testing, and will be fully delivered to the industry during 2019. The continual need for online and easy-to-access training to meet the HVAC&R industry’s needs is continually assessed. We see this new course as a complementary program to the Professional Diploma of Building Services – HVAC&R.

Work also began on the updating of the Building Ventilation training program, which has not been run in a face-to-face format since the early 2000s. Our plan is to re-release it.

This full-day code compliance course focuses on AS 1668.2 and AS 1668.4. It will be run in February 2019, with possible re-runs throughout the year. This redevelopment was due to substantial feedback we received from industry members who had undertaken the Smoke Control and Fire Dampers (AS 1668.1 & AS 1682) training program requesting further training on the ventilation standards.

AIRAH will continue to seek out training development opportunities to continue to educate the industry.

PROFESSIONAL DEVELOPMENT

MARKETING AND COMMUNICATIONS


Digital footprint and social mediaAIRAH continued to expand its digital footprint throughout 2018, particularly regarding growth throughout its social channels (Facebook, Twitter, and LinkedIn) and in its expansion into new media formats with the soft-launch of its podcast (AIRAH on Air), plus a greater focus on pre- and post-event videos. The audience on our social channels has increased by 2,415 followers over the last year and our video views are up by 8,330 views.

The first episode of the AIRAH on Air podcast introduced listeners to the topic of “net zero”, expanding on an Ecolibrium cover story from August 2018.

Hosted on YouTube and Soundcloud and promoted organically through AIRAH’s social channels and newsletter, the podcast has been listened to more than 200 times. We expect continued growth from our podcast initiative in 2019, including a launch on iTunes and Spotify in Q2 2019.

In addition to the creation of pre-event promo videos highlighting topics of discussion at the Building Physics Forum and post-event wrap-up videos from the Future of HVAC 2018 Conference and the annual AIRAH Awards, our video promoting Australia’s HVAC&R industry has been an invaluable asset for both online use and for a general overview of AIRAH’s activities at its events and training. It has been viewed more than 3,250 times.

Social FollowersFacebook Twitter LinkedIn Total

2017 Total 650 1,100 2,100 3,8502018 Total 1,270 1,425 3,570 6,265Difference +65% +26% +52% +48%

Video ViewsYouTube Facebook Twitter LinkedIn Total

2017 Total 3,300 n/a n/a n/a 3,3002018 Total 4,300 3,500 130 3,700 11,630Difference +26% n/a n/a n/a +112%

AIRAH on Air Podcast ListensYouTube Soundcloud Total

Episode 1 (Nov 18) 37 193 230


Website trafficAIRAH’s corporate website received 359,000 unique page views in 2018, an 18 per cent increase from the previous year. There has been growth in the number of subscribers to AIRAH’s e-newsletter, up by 613 for a total of 3,110 subscribers over 2017. We observed a sustained number of average open rates and click-throughs over the last year.

We also launched HVAC&R Search and HVAC&R News, two online resources dedicated to the industry. The former offers companies and organisations in Australia’s HVAC&R space with the opportunity to promote, update and customise their online directory listings – a new take on AIRAH’s former Industry Directory. Over 450 businesses are currently using the service and we continue to see progress in its potential and in its use. We ended 2018 at over 87,000 page views. It will also be complemented by the printed HVAC&R Search Compendium, due for 2019 release in Q1.

HVAC&R News allows AIRAH to bring industry news and updates to new and existing followers on a regular basis. Since launching in May 2018, the site has amassed over 48,000-page views from 18,000 users. As a resource, it allows AIRAH to learn more about trends in the industry and focus on consumer and peer search habits. It also offers companies new avenues to advertise. An HVAC&R News newsletter is distributed to an audience of 13,160 subscribers every two weeks.

While the numbers might suggest a drop in visitors to AIRAH’s website over the year, it’s important to take into consideration the split in content that occurred on our properties. If looking at the combined totals, more than 89,000 people visited AIRAH’s website and the HVAC&R News site in 2018 – up from 75,000 users last year.

airah.org.auPage

ViewsUnique Page

ViewsUsers

2017 Total 392,000 300,250 75,0002018 Total 469,000 359,000 71,000Difference +18% +18% -6%

hvacrsearch.com.auPage

ViewsUnique Page

ViewsUsers

2017 Industry Directory 37,000 26,700 8,200

2018 Total 87,000 52,400 10,400Difference +81% +65% +24%

hvacrnews.com.auPage

ViewsUnique Page

ViewsUsers

2018 Total 48,000 41,500 18,000

fairair.com.auPage

ViewsUnique Page

ViewsUsers

2017 Total 111,500 96,100 61,4002018 Total 76,400 64,400 39,200Difference -37% -40% -44%

HVAC&R News NewsletterAverage

Open RateAverage

ClicksSubscribers

2018 Total 28.2% 28.15% 13,160

Member NewsletterAverage

Open RateAverage

ClicksSubscribers

2017 Total 31.36% 23% 2,4972018 Total 32% 23% 3,110Difference 0% 0% +22%


Branding and industry awarenessBranding has been established for 2019, utilising the animated characters used in the HVAC&R industry awareness video. These recognisable figures will help to define the AIRAH voice and give a common thread to AIRAH’s offerings across the professional development, event and membership space. Throughout next year, AIRAH will continue to develop its online voice to establish and encourage firm footing in the digital space.

The plan for the redevelopment and relaunch of AIRAH’s Fairair tool will be completed for

next year. For 2018, it has seen a drop in its use and views, largely owing to a dated look and feel. A rejuvenated approach will aim to make it more consumer friendly and shareable.

Planning for AIRAH’s 2020 centenary celebrations and positioning is also under way, with activity slated to begin in Q2 of 2019 and continue through to the end of 2020. This will include the launch of a centenary microsite on our website, working to both promote AIRAH’s storied history while simultaneously guiding the future of our industry.


PublicationsOn the back of strong performances from the ARBS issues in particular, and consistency across the year, Ecolibrium, the official journal of AIRAH, had a strong year financially. Not only did it achieve its budget, the total achieved for the April issue was a record for that month. A reader survey in the latter half of the year revealed that Ecolibrium continues to be highly regarded by its readers. More importantly, it remains a key communications tool for raising awareness about AIRAH events, training and initiatives. As ever, it celebrated best-practice examples of Australian HVAC&R projects and technologies.

HVAC&R Nation enjoyed renewed impetus under new editor Mark Vender, who brought experience and passion to the role. That said, the publication is poised at a delicate point in its 11-year history, and will undergo a top-to-tail review in 2019.

Overall, and buoyed by many of our advertisers basing their marketing output around ARBS, sales on all print and digital channels through 2018 were very good.

Media releasesWe produced 26 media releases in 2018. With releases sent to an industry media contacts list of about 150 names, we were able to promote our conferences, achievements and advocacy to a broad audience.

OUR DIVISIONS


ACT 2018 was an active year for a passionate ACT committee, providing an abundance of ideas and introduction of new events. Successfully produced were four division events, a trade night and an inaugural golf day. Committee growth sees the largest level of members in many years.

Prioritising member growth and event recognition, ACT events were focused on specific expertise of committee members and their industry contacts, which proved to be a successful formula. Willingness from each member saw the committee flourish in 2018.

There were plenty of highlights, with average event attendance at an all-time high of 39 for 2018. The addition of the ACT Golf Day saw praise from participants, members and sponsors, securing this event a place bi-annually. A forum-style panel discussion on

“Working Better Together” was a major success, with a follow-up forum in 2019 planned.

The Canberra Trade Night (now Industry Night) has seen huge growth, and continues to show signs of improvement and growth, managing to attract more attendees in 2018.

Year’s end saw division committee members retire, some due to workload. With a successful and active committee playing an important role in growing membership in the region, finding dynamic new committee members is imperative.

After five years as the chair of the division committee Lasath Lecamwasam, F.AIRAH, stepped down. We thank him for all his work during this time.

A steady growth of members in the ACT has the committee excited at the prospects of continued local growth of members, event attendees and AIRAH contributions from the ACT region.

New South Wales AIRAH’s NSW division produced seven division events, five Trade Nights and the annual golf day. The topics for 2018 focused on those relevant to the local Sydney region, while still impacting the entire HAVC&R industry.

Committee growth has contributed significantly, with a united approach initiated in 2018 to share the workload. This proved to work well and will be adopted for 2019.

The top priorities were to increase NSW event/site visit awareness, along with attendance.

The average attendance at NSW division events was 37, which was not too far below the aim of 45. Sponsorship of divisions events was achieved for three out of five eligible events.

Highlights for the year included two technical seminars: Analytics, and Mistakes and Mishaps. Both continue to be the strong topics, achieving a high standard of presenters and very good attendance. Positive feedback from members and steady member increase in membership for NSW indicates potential for further growth in the region.

Attendance numbers for AIRAH Trade Nights held in NSW in 2018 were down. A busy year for the industry in general and the fact ARBS was held in Sydney proved to be challenging.

The 2019 NSW division focus is to create refreshment with topic choices and structure of NSW events. Our goals are to increase numbers at state events, add two site visits per calendar year and monitor the progress of converted members.


Northern TerritoryThe Northern Territory division this year continued to grow, in membership size as well as the events and training sessions presented. The Trade Night returned to SkyCity and was an excellent night for the industry and exhibitors to get together and catch up on the latest innovations. The next day we continued the tradition with the NT Golf Day, and an excellent day was had by all, with some fantastic prizes given away.

On the technical front, we were treated to a special visit from Brett Fairweather, M.AIRAH, who delivered an excellent presentation on Building Ventilation for the AS1668 Seminar Series. In September, we were also delighted to have Andrew Rossi present a session on Fan Selection, Application and Acoustics, in conjunction with Engineers Australia.

Queensland In 2018, AIRAH’s Queensland division presented a great calendar of events, which kicked off with one of our biggest events to date, Hospitals and Cleanrooms. New Standards. New Thinking. With more than 100 registering, we had excellent presentations from Ken McCarthy, F.AIRAH, and Andrew Watson, Affil.AIRAH. These presentations were so well received that they continued to be toured around Australia to be delivered in the other divisions. We also held sessions on topics such as Project Bank Accounts, Where to use Drives and VSDs, London Air Conditioning, Air and Water

Cooled Package Plant, Energy Modelling and a site visit to ACRAN and its acoustic testing facilities. These were all very insightful and a great chance to share our knowledge within the local industry. The Trade Nights returned to Brisbane, Cairns, Townsville and Rockhampton, with Cairns pairing up with the Department of Energy and Environment for the HFC phasedown information session. We wrapped up the year with the President’s Shout and were delighted to recognise some of our longest serving members, from 10-year achievements, all the way to 50- and 60-year members.

South AustraliaSouth Australia’s 2018 calendar commenced with a site visit to the new ALDI distribution centre in Regency Park. The second site visit for South Australia was to the Cooper’s Brewery, something that garnered a lot of interest and was well attended.

An idea to tie in a technical seminar with a site visit was implemented when the healthcare HVAC seminar was followed with a member only site visit to St Andrew’s Hospital. This was a great way to show attendees what the speakers had explained in their presentations.

The annual Apprentice Awards turned out to be another great evening, and engagement with the TAFEs was encouraged, allowing more people to get involved. All winners were very pleased and enjoyed the evening with family and colleagues.

The last event for the year was the Adelaide Trade Night, which turned out to be a great evening, with plenty of people coming through the door. Exhibitors were pleased with attendance and the venue, as always, was perfect for what the event required.


TasmaniaThe Tasmanian division kicked the year off with the Hobart Trade Night, which saw 28 exhibitors set up their stands and welcome several attendees through the door. On the following day, the annual Bob Lewer Memorial Golf Day took place in Claremont. A total of nine teams played the 18-hole course.

Technical seminars covering acoustics, chiller replacements and healthcare HVAC brought in

small but interested crowds, while a site visit to the Calvary Hospital offered some insight into the operating of the new $23 million facility.

With the President’s Dinner no longer an annual calendar event, the committee are thinking of some ideas as to how we can bring the Centenary celebrations to Tasmania in 2020.

VictoriaVictoria had a broad variety of events in 2018. Starting the year off with a seminar on the changes to the Victorian building regulations presented by David Swinson, we also had some interesting site visits, venturing out to Kingspan, The Australian Synchrotron and RMIT. Not forgetting to cover other technical seminar topics on EC fans and safety in design, the year wrapped up with one last seminar on healthcare HVAC.

Among the technical seminars, we had several Trade Nights, with the largest held in Melbourne

at Caulfield Racecourse. Seventy-eight exhibitors set up their stands and were pleased with the attendance. Venturing out to the regional areas, we travelled to Traralgon next, ended the year in Bendigo, where the evening was overall a success, with good quality attendance.

Outside of the divisional events, Victoria hosted the 2018 AIRAH Awards presentation dinner which, was considered one of the best iterations of the event.

Western Australia2019 saw AIRAH’s WA division catering for growing attendee numbers. We moved to larger venues for two key events, the Perth Trade Night and the Fifth Annual WA Members’ Lunch. The lunch was a highlight on many members’ calendars; it booked out, with an impressive crowd of 160 people.

Along with five technical seminar division meetings, four courses and three site visits, the division trialed a breakfast meeting which was successful in drawing in new faces and cementing itself as a new addition to the WA calendar.

On a social note, the WA Members’ Golf Day was well attended with 96 attendees, and hugely supported by industry sponsors. The end of year President’s Shout was buzzing with conversation, with 75 members attending. Long-serving members were recognised and AIRAH Fellowship status bestowed on eligible members.

The Women of AIRAH saw continued success, with two WOA WA State sponsors supporting a pre-golf day training session, a presentation on “Leadership & Diversity”, a “Difficult Conversations” workshop and an end-of-year feedback meeting.

With ample activity, the WA division welcomed new members.

Financial ReportFor the year ended 31 December 2018

DIRECTORS


The directors present their report, together with the financial statements, on the company for the year ended 31 December 2018.

Directors The names of each person who has been a director during the year and to the date of this report are:

■■ Bryon Price

■■ Chris Flanagan

■■ Dr Paul Bannister (Resigned 2 November 2018)

■■ Dr Nathan Groenhout (Reappointed 15 November 2018)

■■ Ian Harwood

■■ Liza Taylor

■■ Paul Jackson (Appointed 19 November 2018)

■■ Stefan Jensen

Principal Activities The Australian Institute of Refrigeration, Air Conditioning and Heating (AIRAH) is an independent, specialist, not-for-profit technical organisation providing leadership in the HVAC&R sector through collaboration, engagement and professional development.

As Australia’s leading HVAC&R organisation it represents a membership – and an industry – that is crucial to our community’s comfort, health and safety.

AIRAH Vision Safe, sustainable, healthy and efficient environments.

AIRAH Mission To provide leadership, promotion, representation and support to the air-conditioning, refrigeration, heating and related services industry and membership.

AIRAH Objectives To provide leadership, promotion, representation and support to the air conditioning, refrigeration, heating and related services industry and membership. In order to achieve these objectives, AIRAH provides:

• Professional and ethical standards

• Technical resources and access to knowledge

• Professional development, education and training, and accreditation programs

• Communication to members, industry and stakeholders

• Industry leadership, representation and advocacy

• Growth and retention of membership

• Sound finance and administration.

DIRECTORS’ REPORT


To achieve these objectives, the institute has

adopted the following strategic aims:

AIRAH Strategic Aims

■■ Promote and develop tomorrow’s efficient, productive & resilient industry.

■■ Grow industry skills and capability for the future.

■■ Inform regulation and policy processes.

■■ Build member value and engage members

Promote and develop tomorrow’s efficient, productive & resilient industry

Through its conferences, publications, manuals and training, AIRAH will educate and motivate the HVAC&R industry and related fields about achieving an efficient, productive and resilient industry. Many organisations talk about these concepts, our aim is to be the HVAC&R organisation whose values are able to deliver on this.

Grow industry skills and capability for the future.

At a time of rapid change of new technology and standards and a shifting regulatory landscape, AIRAH will provide appropriate and relevant professional development for HVAC&R industry personnel, and work alongside government and other providers to ensure the voids, where they exist in formal training, are filled.

Inform regulation and policy decisions:

As the key industry organisation representing HVAC&R in Australia, it is essential AIRAH collaborate with government at both the state and federal levels. In this way the collective skills and specialist knowledge contained within the Institute can better inform the decisions that affect society in general and the HVAC&R industry in particular.

Build and engage membership:

AIRAH will become the institute of choice for HVAC&R professionals in Australia. This means ensuring that formal connection with AIRAH provides benefits – actual and intangible – that are valuable, worthwhile and attractive to our members throughout their professional lives.


Information on directors

Chris Flanagan Title: Director Experience and expertise: Regional Manager, Schneider Electric

AIRAH member since 2005

Liza Taylor Title: DirectorExperience and expertise: Director Global IQ Group

AIRAH Member since 2014

Paul Jackson Title: DirectorAppointed 19 November 2018Experience and expertise: National Contracts Manager for Engineering Commissioning Services


Dr Paul Bannister Title: DirectorResigned 2 November 2018Experience and expertise: Director, Innovation and Sustainability, Energy Action

AIRAH Member since 2003

Dr Nathan Groenhout Title: DirectorAppointed Discretionary Director 15 November 2018 Experience and expertise: Director Global IQ Group


Ian Harwood Title: PresidentExperience and expertise: Director, HD Consult


Bryon Price Title: Director Experience and expertise: Strategic Development Director, A.G Coombs Group of Companies


Stefan Jensen Title: DirectorExperience and expertise: Managing Director, Scantec


MEETINGS OF DIRECTORS


Directors’ Meetings

Director Number eligible to attend Number attended

Nathan Groenhout 4 4

Ian Harwood 4 4

Bryon Price 4 3

Chris Flanagan 4 4

Paul Bannister 4 2

Liza Taylor 4 4

Paul Jackson 0 0

Stefan Jensen 4 4

The institute is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the institute is wound up, the constitution states that each member is required to contribute a maximum of $10 each towards meeting any outstanding obligations of the institute.

Auditor’s independence declaration The lead auditor’s independence declaration for the year ended 31 December 2018 has been received and can be found on page 4 of the financial report.

This directors’ report is signed in accordance with a resolution of the Board of Directors.

On behalf of the directors

Ian Harwood Director

29th of March, 2019 Melbourne

AUDITOR’S INDEPENDENCE DECLARATION


AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 60-40 OF THE AUSTRALIAN CHARITIES AND NOT-FOR-PROFITS COMMISSION ACT 2012 TO THE DIRECTORS OF THE AUSTRALIAN INSTITUTE OF REFRIGERATION, AIR CONDITIONING AND HEATING INC

I declare that, to the best of my knowledge and belief during the year ended 31 December 2018 there have been:

i. no contraventions of the auditor independence requirements as set out in the Australian Charities and Not-for-Profits Commission Act 2012 in relation to the audit;

and

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

William Buck Audit [Vic] Pty Ltd ABN 59 116 151 136

A. P. MARKS Director

Dated this 29th day of March, 2019

STATEMENT OF COMPREHENSIVE INCOME


For the year ended 31 December 2018

Note 2018 2017 $ $Revenue

2 4,265,452 4,345,262

Expenses

Employee provisions expense (1,816,362) (1,777,498)

Client support services expenses (506,969) (518,999)

Finance costs (17,909) (24,933)

Service to industry (990,420) (1,024,350)

Professional development expenses (551,446) (681,806)

Surplus before income tax expense 382,346 317,676

Income tax expense — —

Surplus for the year 382,346 317,676

Other comprehensive income for the year, net of tax

Net gain (loss) on revaluation of financial assets 656 95,853

Gain on revaluation of buildings 1,018,166 —

Total comprehensive income for the year 1,401,168 413,529

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

STATEMENT OF FINANCIAL POSITION


As at 31 December 2018

Note 2018 2017 $ $

Assets Current assets

Cash and cash equivalents 4 1,507,802 1,420,823

Trade and other receivables 5 360,360 244,568

Inventories 6 70,078 42,711

Other assets 7 188,964 212,624

Total current assets 2,127,204 1,920,726

Non-current assets

Financial assets 8 1,904,183 1,638,179

Property, plant and equipment 9 2,343,691 1,359,208

Total non-current assets 4,247,874 2,997,387

TOTAL ASSETS 6,375,078 4,918,113

Liabilities Current liabilities

Trade and other payables 10 1,019,758 979,718

Provisions 11 115,484 110,277

Total current liabilities 1,135,242 1,089,995

Non-current liabilities

Provisions 11 19,034 8,484

Total non-current liabilities 19,034 8,484

TOTAL LIABILITIES 1,154,276 1,098,479

NET ASSETS 5,220,802 3,819,634

Equity Retained earnings 3,315,699 2,933,353

Reserves 1,905,103 886,281

TOTAL EQUITY 5,220,802 3,819,634

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

STATEMENT OF CHANGES IN EQUITY



Asset Dennis Market Joseph Retained Movement Revaluation Memorial Earnings Reserve Reserve Fund Total $ $ $ $ $

Balance at 1 January 2017 2,615,677 — 720,404 70,294 3,406,375

Surplus for the year 317,676 — — — 317,676

Other comprehensive income for the year

Net gain on revaluation of financial assets — 95,583 — — 95,583

Balance at 31 December 2017 2,933,353 95,583 720,404 70,294 3,819,634

Balance at 1 January 2018 2,933,353 95,583 720,404 70,294 3,819,634

Surplus for the year 382,346 — — — 382,346

Other comprehensive income for the year

Net gain on revaluation of financial assets — 656 — — 656

Gain on revaluation of buildings — — 1,018,166 — 1,018,166

Balance at 31 December 2018 3,315,699 96,239 1,738,570 70,294 5,220,802

For a description of each reserve, refer to Note 18.

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

STATEMENT OF CASH FLOWS



Note 2018 2017 $ $Cash flows from operating activities

Receipt from customers 4,161,629 4,467,857

Payments to suppliers and employees (3,800,758) (4,063,873)

Interest received 32,266 32,309

Net cash generated from operating activities 16 393,137 436,293

Cash flows from investing activities

Payments for property, plant and equipment (40,807) (77,851)

Investments in term deposits (265,351) (1,542,599)

Net cash (used in) investing activities (306,158) (1,620,450)

Cash flows from financing activities

Repayment of Loan — (1,987)

Net cash (used in) financial activities — (1,987)

Net increase / (decrease) in cash held 86,979 (1,186,144)

Cash on hand at beginning of the financial year 1,420,823 2,606,967

Cash on hand at end of the financial year 4 1,507,802 1,420,823

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

NOTES TO THE FINANCIAL STATEMENTS



Note 1 Summary of Significant Accounting policies

The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

New, revised or amending Accounting Standards and Interpretations adopted

The institute has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period.

Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the institute.

The following Accounting Standards and Interpretations are most relevant to the institute:

• AASB 2012-3 Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities

• AASB 2013-3 Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets

• AASB 2015-1 Amendments to Australian Accounting Standards (Parts A to C)

Basis of Preparation The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB) and Australian Charities and Not-for-Profits Commission Act 2012. The institute is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. 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, except for the cash flow information, have been prepared on an accruals 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 amounts presented in the financial statements have been rounded to the nearest dollar.

The financial statements were authorised for issue at a duly convened meeting by the directors of the company.


Accounting Policies (a) Revenue

The Institute’s annual membership subscription for the year is payable in advance. Only those membership subscription receipts, which are attributable to the current financial year commencing 1st January, are recognised as revenue. “Casual Membership” receipts, which entitles any person or organisation to participate in programs or activities of the Institute are recognised as revenue on commencement of the program or activity.

The Institute undertakes other revenue generating activities such as periodic member publications, education courses, conferences and exhibitions.

Non-reciprocal grant revenue is recognised in profit or loss when the entity obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the entity and the amount of the grant can be measured reliably.

If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until those conditions are satisfied.

When grant revenue is received whereby the entity incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt.

Donations and bequests are recognised as revenue when received.

Interest revenue is recognised using the effective interest method, which for floating rate financial assets is the rate inherent in the instrument. Dividend revenue is recognised when the right to receive a dividend has been established.

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.

(b) Inventories

Inventories are measured at the lower of cost and net realisable value. Inventories held for distribution are measured at cost adjusted, when applicable, for any loss of service potential.

Inventories acquired at no cost, or for nominal consideration, are valued at the current replacement cost as at the date of acquisition.

(c) Property, Plant and Equipment

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

Freehold Property Freehold land and buildings are shown at their fair value based on periodic, but at least triennial, valuations by external independent valuers, less subsequent depreciation for buildings.

In periods when the freehold land and buildings are not subject to an independent valuation, the directors conduct directors’ valuations to ensure the carrying amount for the land and buildings is not materially different to the fair value.

Increases in the carrying amount arising on revaluation of land and buildings are recognised in other comprehensive income and accumulated in the revaluation surplus in equity. Revaluation decreases that offset previous increases of the same class of assets shall be recognised in other comprehensive income under the heading of revaluation surplus. All other decreases are recognised in profit or loss.


Any accumulated depreciation at the date of the revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

Freehold land and buildings that have been contributed at no cost, or for nominal cost, are initially recognised and measured at the fair value of the asset at the date it is acquired.

Plant and Equipment Plant and equipment are measured on the cost basis and are 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 and impairment losses are recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(f) for details of impairment).

Plant and equipment that have been contributed at no cost, or for nominal cost, are valued and recognised at the fair value of the asset at the date it is acquired.

Depreciation The depreciable amount of all fixed assets, including buildings and capitalised lease assets but excluding freehold land, is depreciated on a straight-line basis and diminishing value over the asset’s useful life to the entity commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

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

Class of Fixed Asset Depreciation Rate Depreciation Method

Buildings 2.5% Diminishing valuePlant and equipment 20% to 25% Diminishing valueOffice equipment 40% to 60% Diminishing valueOffice fit out 20% Straight-line

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 or losses are recognised in profit or loss in the period in which they arise. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained earnings.

(d) Leases

Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset (but not the legal ownership) are transferred to the entity, are classified as finance leases.

Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that the entity will obtain ownership of the asset. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

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

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


(e) Financial Instruments

Initial Recognition and Measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the institute commits itself to either purchase or sell the asset (i.e. trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transactions costs except where the instrument is classified ‘at fair value through profit or loss’ in which case transaction costs are recognised immediately as expenses in profit or loss.

Classification and Subsequent Measurement(i) Financial assets at fair value through profit or loss

Financial assets are classified at “fair value through profit or loss” when they are held for trading for the purpose of short-term profit taking, derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying amount being included in profit or loss.

(ii) Loans and receivablesLoans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.

(iii) Held-to-maturity investmentsHeld-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the institute’s intention to hold these investments to maturity. They are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.

(f) Impairment of Assets

At the end of each reporting period, the entity assesses whether there is any indication that an asset may be impaired. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (e.g. in accordance with the revaluation model in AASB 116). Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard.

(g) Employee Benefits

Short-term employee benefits Provision is made for the Institute’s obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service, including wages, salaries and sick leave. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled.

The Institute’s obligations for short-term employee benefits such as wages, salaries and sick leave are recognised as a part of current trade and other payables in the statement of financial position.


Other long-term employee benefits The institute classifies employees’ long service leave and annual leave entitlements as other long-term employee benefits as they are not expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service. Provision is made for the institute’s obligation for other long-term employee benefits, which are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures, and are discounted at rates determined by reference to market yields at the end of the reporting period on government bonds that have maturity dates that approximate the terms of the obligations. Upon the re-measurement of obligations for other long-term employee benefits, the net change in the obligation is recognised in profit or loss classified under employee benefits expense.

The Institute’s obligations for long-term employee benefits are presented as non-current liabilities in its statement of financial position, except where the Institute does not have an unconditional right to defer settlement for at least twelve months after the reporting date, in which case the obligations are presented as current liabilities.

Retirement benefit obligations Defined contribution superannuation benefits All employees of the institute receive defined contribution superannuation entitlements, for which the institute pays the fixed superannuation guarantee contribution (revised from 9.25% to 9.5% with effect from 1 July 2015) to the employee’s superannuation fund of choice. All contributions in respect of employees’ defined contribution entitlements are recognised as an expense when they become payable. The institute’s obligation with respect to employees’ defined contribution entitlements is limited to its obligation for any unpaid superannuation guarantee contributions at the end of the reporting period. All obligations for unpaid superannuation guarantee contributions are measured at the (undiscounted) amounts expected to be paid when the obligation is settled and are presented as current liabilities in the institute’s statement of financial position.

(h) 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.

(i) 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.

(j) Income Tax

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

(k) Intangibles

Software Software is initially recognised at cost. It has a finite life and is carried at cost less any accumulated amortisation and impairment losses. Software has an estimated useful life of between 2 and 3 years. It is assessed annually for impairment.


(l) Provisions

Provisions are recognised when the entity 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 reporting period.

(m) Comparative Figures

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

(n) Trade and Other Payables

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

(o) Critical Accounting Estimates and Judgements

The directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the institute.

Key Estimates Valuation of freehold land and buildings

The freehold land and buildings were independently valued at 15 January 2019 by Charter Keck Cramer. The valuation was based on the fair value less cost to sell. The critical assumptions adopted in determining the valuation included the location of the land and buildings, the current strong demand for land and buildings in the area and recent sales data for similar properties.

Key Judgements Employee benefits

For the purpose of measurement, AASB 119: Employee Benefits (September 2011) defines obligations for short-term employee benefits as obligations expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related services. As the Institute expects that most employees will not use all of their annual leave entitlements in the same year in which they are earned or during the 12 month period that follows (despite an informal Institute policy that requires annual leave to be used within 18 months), the Directors believe that obligations for annual leave entitlements satisfy the definition of other long-term employee benefits and, therefore, are required to be measured at the present value of the expected future payments to be made to employees.


Note 2 Revenue 2018 2017 $ $Subscription Income 800,627 797,828

Education, Conference and Exhibition Income 1,969,217 2,125,369

Publications Income 1,002,539 1,013,417

Other Revenue 348,765 307,381

4,121,148 4,243,995

Other revenue

Interest received on investments in fixed interest securities 32,266 32,309

Returns from Investment Funds 112,038 68,958

144,304 101,267

Total 4,265,452 4,345,262

Note 3 Expenses 2018 2017 $ $Contributions to defined contribution superannuation funds 144,958 140,034

144,958 140,034

Depreciation and amortisation:

Furniture and fitting 1,010 727

Office fit out 8,385 9,565

Office equipment 8,094 7,912

Software 28,319 26,960

Buildings 28,684 29,407

Total depreciation and amortisation 74,492 74,571

Auditor and Advisory fee

Audit services 10,300 10,000

Advisory services — 12,238

Total Audit and Advisory Remuneration 10,300 22,238


Note 4 Cash on hand Note 2018 2017 $ $Cash at bank 57,802 419,591

Cash on deposit 1,450,000 1,001,232

Total cash and cash equivalents as stated in the statement of financial position 17 1,507,802 1,420,823

Note 5 Trade and other receivables Note 2018 2017 $ $Current

Accounts Receivable 360,360 244,568

Provision for impairment of receivables — —

Other debtors 360,360 244,568

Total current accounts receivable and other debtors 17 360,360 244,568

Note 6 Inventories on Hand Note 2018 2017 $ $Current

At cost 70,078 42,711

Inventory – AIRAH Handbook and other items 70,078 42,711

Note 7 Other current assets Note 2018 2017 $ $Accrued Income 5,763 8,749

Prepayments 183,201 203,875

188,964 212,624

Note 8 Financial Assets Note 2018 2017 $ $Non Current

Available for sale financial investments — —

Shares in listed securities at fair value 1,904,183 1,638,179

17 1,904,183 1,638,179


Note 9 Property, Plant and Equipment Note 2018 2017 $ $LAND AND BUILDINGS

Buildings at fair value 2,150,000 1,220,436

Accumulated depreciation — (59,918)

Total land and buildings 2,150,000 1,160,518

PLANT AND EQUIPMENT

Plant and equipment at cost 59,066 49,772

Accumulated depreciation (47,852) (46,842)

11,214 2,930

Office fit out at cost 344,492 341,428


38,237 12,354

Office equipment at cost 330,111 321,624


12,746 12,354

Computer software/website costs at cost 384,266 364,305

Accumulated amortisation (256,150) (229,030)

128,116 135,275

Capitalised promotional costs 14,982 14,982


3,378 4,573

Total property, plant equipment 2,343,691 1,359,208

Movements in Carrying Amounts

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

Computer Land and Plant and Office Office Equipment Buildings Equipment Fitout Equipment & Software Total $ $ $ $ $ $

Balance at 1 January 2018 1,160,518 2,930 43,560 12,354 139,848 1,359,210

Additions — 9,294 3,062 8,486 19,965 40,807

Revaluation 1,018,166 — — — — 1,018,166

Depreciation expense (28,684) (1,010) (8,385) (8,094) (28,319) (74,492)

Balance at 31 December 2018 2,150,000 11,214 38,237 12,746 131,494 2,343,691

Asset revaluations

The buildings were independently valued at 15 January 2019 by Charter Keck Cramer.

The valuation was based on the fair value less cost to sell. The valuer assessed the valuation at $2,150,000. The Directors at the time reviewed the valuation assumptions and agreed with the figure.


Note 10 Accounts Payable and Other Payables Note 2018 2017 $ $Current

Accounts payable 51,129 78,979

GST payable 19,034 20,929

Membership and subscriptions in advance 394,112 414,153

Accrued expenses 274,765 249,215

Other income in advance 280,718 216,442

1,019,758 979,718

Note 11 Employee Provisions Note 2018 2017 $ $Current

Provision for employee benefits: annual leave 56,598 58,257

Provision for employee benefits: long service leave 58,886 52,020

115,484 110,277

Non-Current

Provision for employee benefits: long service leave 19,034 8,484

19,034 8,484

134,518 118,761

Provision for Employee Benefits

Provision for employee benefits represents amounts accrued for annual leave and long service leave. The current portion for this provision includes the total amount accrued for annual leave entitlements and the amounts accrued for long service leave entitlements that have vested due to employees having completed the required period of service. Based on past experience the institute does not expect the full amount of annual leave or long service leave balances classified as current liabilities to be settled within the next 12 months. However, these amounts must be classified as current liabilities since the institute does not have an unconditional right to defer the settlement of these amounts in the event employees wish to use their leave entitlement.

The non-current portion for this provision includes amounts accrued for long service leave entitlements that have not yet vested in relation to those employees who have not yet completed the required period of service.

In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based upon historical data. The measurement and recognition criteria for employee benefits have been discussed in Note 1(g).

Note 12 Contingent Liabilities and Contingent Assets

There are no contingent assets or contingent liabilities of a material nature.

Note 13 Events After the Reporting Period

The directors are not aware of any significant events since the end of the reporting period.


Note 14 Key Management Personnel Compensation

Key Management Personnel

Note 2018 2017 $ $Key management personnel compensation 416,622 405,591

Note 15 Other Related Party Transactions

Other related parties include close family members of Key Management Personnel, and entities that are controlled or jointly controlled by those Key Management Personnel individually or collectively with their close family members.

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other persons unless otherwise stated.

The directors act in an honorary capacity and receive no compensation for their services. The Directors receive a per diem allowance to cover out of pocket costs in fulfilling their roles.

During the year, a company (A.G. Coombs), controlled by Bryon Price, a director, provided maintenance facilities to the institute. The terms of supply were on normal commercial terms and conditions. Maintenance services provided by the company for the year totalled $7,770 (2017, $9,267).

Note 16 Cash Flow Information Note 2018 2017 $ $Reconciliation of Cashflow from Operating Activities with Current Year Surplus

Surplus after income tax 382,346 317,676

Non cash flows

Depreciation and amortisation expense 74,492 74,571

Changes in assets and liabilities

(Increase)/decrease in accounts receivable and other debtors (115,792) (65,362)

(Increase)/decrease in inventories (27,367) 36,506

(Increase)/decrease in other current assets 23,660 (28,194)

Increase/(decrease) in accounts payable and other payables (4,195) (123,349)

Increase/(decrease) in income in advance 44,235 220,265

Increase/(decrease) in provisions for employee benefits 15,758 4,179

393,137 436,293


Note 17 Financial Risk Management

The institute’s financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payable, and leases.

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

Note 2018 2017 $ $Financial assets

Cash and cash equivalents 4 1,507,802 1,420,823

Receivables 5 360,360 244,568

Financial assets 8 1,904,183 1,638,179

Total financial assets 3,772,345 3,303,570

Financial liabilities

Financial liabilities at amortised cost: trade and other payables* 10 344,928 349,123

Total financial liabilities 344,928 349,123

*less membership, subscriptions and other income in advance

Note 18 Reserves

(a) Revaluation Surplus

The revaluation surplus records the revaluations of non-current assets.

(b) Denis Joseph Memorial Fund

To fund an award to AIRAH members over the age of 30 who have produced outstanding practical and original written contributions on the subject of the application of solar energy to refrigeration, air-conditioning and heating.

(c) Asset Market Movement

The revaluation of financial assets at market values as at 31 December 2018.


Note 19 ARBS Exhibitions Limited

AIRAH is 1 of 6 members which have equivalent interest in ARBS Exhibitions Ltd (ACN 087 135 555), a company limited by guarantee. The value of AIRAH’s interest is not recognised in these financial statements as AIRAH does not exercise significant influence over ARBS.

Note 20 Entity Details

The registered office of the entity is: Australian Institute of Refrigeration, Air Conditioning & Heating Inc Level 3 No.1 Elizabeth Street MELBOURNE VIC 3000

The principal place of business is: Australian Institute of Refrigeration, Air Conditioning & Heating Inc Level 3 No.1 Elizabeth Street MELBOURNE VIC 3000

Note 21 Members’ Guarantee

Every member undertakes to contribute to the assets of the Institute, and in the event of its being wound up while he or she is a member or within one year afterwards, the payment of the debts and liabilities of the Institute contracted before he or she ceases to be a member, the costs, charges and expenses of winding up, however the maximum total contribution shall not exceed the sum of $10. If the company was wound up, the 3,392 members would be liable to contribute $33,920.


The directors have determined that the institute is a reporting entity that does not have public accountability as defined in AASB 1053: Application of Tiers of Australian Accounting Standards and that these general purpose financial statements should be prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements.

In accordance with a resolution of the directors of Australian Institute of Refrigeration, Air Conditioning and Heating Inc, the directors of the institute declare that:

1. The attached financial statements and notes, are in accordance with the Australian Charities and Not-for-Profits Commission Act 2012 and:

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

b. give a true and fair view of the financial position of the institute as at 31 December 2018 and its performance for the year ended on that date.

2. In the directors’ opinion there are reasonable grounds to believe that the entity will be able to pay its debts as and when they become due and payable.

Ian Harwood Director

29th of March, 2019 Melbourne

DIRECTORS’ DECLARATION

INDEPENDENT AUDITOR’S REPORT


Opinion We have audited the financial report of Australian Institute of Refrigeration, Air Conditioning and Heating Inc. (the Company), which comprises the statement of financial position as at 31 December 2018, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration.

In our opinion the financial report of Australian Institute of Refrigeration, Air Conditioning and Heating Inc. has been prepared in accordance with Division 60 of the Australian Charities and Not-for-profits Commission Act 2012, including:

a. giving a true and fair view of the Company’s financial position as at 31 December 2018 and of its financial performance for the year then ended; and

b. complying with Australian Accounting Standards - Reduced Disclosure Regime and Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013.

Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act) and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

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

Other informationThe directors are responsible for the other information. The other information comprises the information included in the Company’s annual report for the year ended 31 December 2018, but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial ReportThe directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Reduced Disclosure Regime and the ACNC Act and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Directors are responsible for overseeing the Company’s financial reporting process.

Auditor’s responsibilities for the Audit of the Financial StatementsOur objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

■■ Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

■■ Obtain an understanding of internal control relevant to the audit 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 Company’s internal control.

■■ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

■■ Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

■■ Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

William Buck Audit [Vic] Pty Ltd ABN 59 116 151 136

A. P. MARKS Director

Dated this 29th day of March, 2019


NOTES


Documents

ANNUAL REPORT 2018 - AIRAH · 11 Marketing and Communications 15 Our Divisions 18 Financial Report ... Sydney brought interested experts together to discuss trending industry topics