RCSA 2010 · will be utilising data collected via a member survey (conducted in September 2010) to build on the RCSA Member value proposition and refine the professional development

2010RCSA

ANNUALREPORT

Contents

The RCSA Board of Directors 1

The President’s Report 2

The CEO’s Report 3

The Directors’ Report 7

Auditor’s Independence Declaration 10

Income Statement 11

Balance Sheet 12

Statement of Changes in Members’ Funds 13

Cash Flow Statement 14

Notes to and Forming Part of the Financial Statements 15

Directors’ Declaration 23

Independent Audit Report 24

1

Recruitment & Consulting Services Association Ltd

Board of Directors

MissionThe RCSA leads the recruitment and HR services industry, by providing an environment for sustainable employment growth and prosperity.

Goals• Lead the industry by providing the framework for business

best practice

• Influence legislation and regulation that impacts employment and our industry

• Provide the platform for continual professional development including ethical standards and legal responsibilities

Annual General MeetingsThe Recruitment and Consulting Services Association Ltd will hold its Annual General Meeting at:RCSA VIC Meeting Centre

Level 3, 63 Exhibition Street

MELBOURNE VIC 3000

Australia

Commencing at 4.00 AESDST, Thursday 25th November, 2010

The Recruitment and Consulting Services Association (New Zealand) will hold its Annual General Meeting at:Rendezvous Hotel Auckland

71 Mayoral Drive & Corner Vincent Street

Aucklander Bar Theatre (Mezzanine Level)

Auckland

New Zealand

Commencing at 2:00pm Thursday 18th November, 2010

RCSA Contact DetailsLevel 3, 63 Exhibition StreetMELBOURNE VIC 3000Tel: +61 3 9663 0555Fax: +61 3 9663 5099Email: [email protected]: www.rcsa.com.au

Auditors

Stephen Shepherd APRCSA

President of the

RCSA Board

Helen Olivier APRCSADebra Loveridge APRCSA

Vice Presidents

Finance Director Directors

Directors

CEO

President

Robert van Stokrom APRCSA

Jacqui Barratt APRCSA

Peter Langford APRCSA

Jan Spriggs APRCSA

Laura Mabikafola APRCSA (appointed 26th

November 2009)

Matthew McArthur MRCSA (Life)

Paul McCormick Steve Granland

Denis Dadds APRCSA

Grant ThorntonLevel 2215 Spring StreetMELBOURNE VIC 3000

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President’s Report

Throughout the financial year RCSA research amongst Members showed slow but continuing growth in business confidence after the lows of the 2008/09 year.

This increase in optimism was reflected in a steady growth in RCSA membership and the requests for services, particularly in the second half of the year. We also saw strong demand for advice around the implementation of Modern Awards that saw many of our Members attend RCSA seminars as they grappled with the challenges of implementing modern awards within their businesses. This increase in participation was reflected in our financial results which returned a small profit for the year after the negative result of 2008/09.

2009/2010 was a period of reflection and renewal for the RCSA. The Board along with a number of Members completed a review of the Associations Strategic Plan and Direction and re-set our goals and objectives for the next five years to ensure we continue to meet the needs of our Members in a constantly evolving market and political framework.

We also saw the departure in April of Julie Mills, the RCSA’s CEO and a key architect behind the evolution of the RCSA over the last ten years. Julie played a key role in establishing strong governance within the RCSA including the RCSA Code of Professional Conduct which is now recognised by Government and Industry as the benchmark for professional standards in our profession. However with every departure comes the opportunity to bring new ideas to the business of the RCSA and after an exhaustive search we were delighted to welcome Steve Granland to the Association in June as our new CEO. Steve has an extensive background in association management throughout his career and we are excited by the expertise he brings to the RCSA, particularly in the areas of membership and partner engagement.

This year marks the end of my term as RCSA President. It is time for me to hand over to a new President who will work with the Board, the regional Councils, Committees and RCSA Staff to usher in a new period of growth and membership services. It has been an immensely enjoyable experience for me, I have made many friends and connections along the way and I would like to thank you all for making it easy for me to represent you, your business and your profession.

Regards

Steve Shepherd President and Board Chairman

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CEO’s Report

Within a very short period of arriving at the RCSA I began to understand just how significant and important our industry is. At a macro level I have developed

an understanding of how vital our industry is to ensuring economic growth and stability. At a micro level it has become clear to me that ours is a very unique industry and profession in that there are likely to be few adult Australians who have not at some point interacted with our industry. I would suggest there are very few professions who can claim this level of interaction with the Australian population.

I am very excited by the opportunities presented to continue to grow both corporate and individual membership and thus build the strength of the RCSA – your industry body. Over the next 12 months we will be utilising data collected via a member survey (conducted in September 2010) to build on the RCSA Member value proposition and refine the professional development program. We will be looking to return to a hard copy version of the Recruitment Journal, launch a new user friendly website focussed on provision of member services, re-launch the RCSA awards to allow for recognition of important industry achievements, modify the RCSA CPE requirements to remove unnecessary administration for members and review the individual membership structure to ensure we have a membership framework which allows for recognition of differing levels of experience and qualifications. We will explore opportunities to actively promote the differences between RCSA Members and non-members and grow the RCSA brand.

We will look to develop stronger relationships with our international equivalents such as the REC in the UK and look to work more closely with these bodies and the likes of CIETT to ensure the Australian and New Zealand industries benefit from global developments.

Whether by building the profile of the industry in Australia and New Zealand or lobbying for improvements and alterations in legislation and regulation or by setting standards of professionalism for RCSA Members the RCSA is a vital and pivotal part of the industry.

In closing my first CEO report I would like to thank all the stakeholders I have connected with in my first six months. I have had a very welcome and supportive introduction to the industry and as I said in closing the 2010 bridging connections conference I am proud to be a part of this industry. In particular I would like to thank RCSA President Steve Shepherd, the RCSA board and the staff of the RCSA for providing an excellent transition for me.

Policy and Issues ManagementThe 2009 to 2010 financial year was again filled with many challenges in relation to new legislation and Government initiatives which required the clarification of RCSA policy and management of related issues. Whether it was the introduction of the Fair Work Act from 1 July 2009 or the ongoing development of model work health and safety law with a view to harmonising legislation, the recruitment and on-hire sector has been required to allocate significant resources to ensuring our industry is recognised and accommodated.

The Fair Work Act saw the introduction of new rights for employees and independent contractors in relation to ‘adverse action’ claims as well as the re-establishment of unfair dismissal rights for employees of businesses employing between 15 and 100 employees. Furthermore, the introduction of the new system of modern Awards from 1 January, 2010 created a significant amount of work for RCSA Members as it did for RCSA Member clients. Whilst the introduction of modern Awards has been challenging for RCSA Members it is important that we remember that the linking of modern Award coverage to the industry of our clients affords the industry more protection from industry specific claims in to the future and, after a period of settling in, will make the determination of coverage easier.

In addition to the model work health and safety law development, which will continue through in to 2011, RCSA was also required to manage issues and policy in relation to union attempts to place restrictions on client use of on-hire employees (Kagan decision), transfer of business where EBA terms follow on-hire employees in to client businesses in certain circumstances, the employment seasonal pacific workers as on-hire employees under the Australian Government program, new credit regulation which would have seen unnecessary restrictions on the use of on-hire workers, State and Territory Government procurement which has failed to understand our sector and a range of similar matters.

RCSA’s voluntary committee and working group structure, combined with our issues and policy management team has worked well to see RCSA continuing to punch above its weight in a very broad range of issues. 2010 to 2011 financial year will, no doubt, continue to present ongoing challenges and opportunities and ongoing Member input and support will remain critical to our successful representation.

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CEO’s Report – continued

Professional DevelopmentRCSA’s professional development programs continued over 2009/10 to set high standards. Highlights included:

• Introduction of a more user friendly WebinR platform providing access to quality professional development (regardless of location). Of importance was a WebinR series on Modern Awards covering individual specific awards.

• Introduction of the Entry Level program established specifically for new entrants to the industry. Delivered online and via WebinR’s with an exam on completion of modules this program was particularly well received by regional and New Zealand based Members.

• In August 2009 the bridging connections Conference was held on Hamilton Island. Dame Baroness Susan Greenfield was the opening keynote speaking on “SOMEBODY NOBODY ANYONE – The changing profile of the recruiter and the recruited”. Overall the conference was a great success with many delegates noting it as amongst the best.

• The Autumn Celebration Dinner was held in Melbourne providing a perfect opportunity for Members and business partners to reconnect after a tough 12months.

• The RCSA Consultant Forum was run successfully in Sydney indicating a positive return to the agenda for Learning and Development.

• A series of very popular Fair Work Seminars were run nationally with the support of DEEWR.

• Life Member Greg Savage MRCSA (Life) completed a breakfast Master class series throughout NZ and Australia. Over 600 Members attended.

StandardsThe RCSA Code of Professional Conduct and the Service Delivery Standard lead the way in ensuring RCSA Members maintain the highest levels of professionalism.

Code for Professional ConductAmendments to the RCSA Code for Professional Conduct were approved by the ACCC. These amendments were to the Disciplinary & Dispute resolution Procedures which now allow the RCSA to:

• require a complainant against an RCSA member to first communicate directly with the member in writing, and allow 30 days for a response;

• request from the complainant an email or letter with supporting information about the grievance, including the date, the names of the parties involved, and the state or territory where the grievance arose;

• accept a written undertaking from the member subject to the complaint that it will rectify or partially rectify the complaint made against it.

At the time of writing there had been 13 concerns raised since the amendments to the D&DRP were approved by the ACCC on 24 July 2010, whereas the complainant had been informed to communicate directly with the Member, only one of these concerns has had the Intervention process instigated.

During the period 1 July 2009 and 30 June 2010, there is only one matter where the Member/Respondent has given a written undertaking to the Complainant and to the Board that it will carry out certain actions to rectify the complaint made against it, this was approved by the board on 25 August 2010.

The code continues to provide strong service to the Australian and New Zealand communities through its focus of problem resolution with 151 successful interventions, 10 interventions referred to the ethics committee.

Issues most likely to be reported to the RCSA’s Ethics Registrar have been in relation to transitioning (16%), fee-related disputes (31%), advertising (25%) and candidate care (28%).

The RCSA Code of Professional conduct is key to the continued efforts to build and promote professionalism and provides a significant point of differentiation between RCSA Members and non-members. Efforts to continue to build the profile of the RCSA Code will continue over 2010/11.

Service Delivery StandardThe certification of Members in the RCSA Service Delivery Standard has continued to gain momentum. Since July 2009 a further ten companies have been certified bringing the total to 33. Another 30 companies are currently working their way through the standard. Feedback from Members completing the process continues to be very positive many noting the range of positives brought to the business via the standard.

MembershipThe RCSA has managed to maintain membership numbers over the last 12 months with 1,186 corporate Members across 2,307 branches as at 30 June, 2010.

At the 30 June 2010 RCSA had a total of 830 Accredited Recruitment Professionals.

By continuing to build both corporate and individual Membership numbers we will continue to build a stronger industry.

Member GroupsThe RCSA has a number of active Member Councils that have been established to ensure the specific needs of specialist areas within the Association’s diverse Membership can be addressed.

Staffing Council of Australia & New Zealand (SCANZ)SCANZ continued to meet bi-monthly to discuss a range of issues impacting the industry including the Fair Work Act, contract templates and modern awards.

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• Danielle Wallace, Deputy Chair

• Kim Estell APRCSA

• Lina Cornell

• Megan Warrin

• Graham Bower APRCSA

• Alan Bell APRCSA

• Peter Hill

• Bill Cotter

AANRA Members met four times during the past twelve months. Member meetings are an important way for AANRA Members to network and remain up-to-date about developments in the industry. During the past four meetings Members have heard from a variety of speakers on subjects including: Fair Work legislation, Modern Awards, National Registration Scheme and how to continue growing your business in a challenging marketplace. Members have also been active participants in RCSA WebinR’s.

AANRA has been represented at key forums and industry expos to ‘fly the flag’ on behalf of members.

Association of Medical Recruiters Australia & New Zealand (AMRANZ)AMRANZ is a Member Group of the RCSA. This group has grown definitively over the past twelve months as influence is spread amongst the Medical Councils and Colleges.

AMRANZ Council Members:

• Ron Crause

• Corrine Taylor

• Melissa Bennett APRCSA

• Pauline Moore

• Alan Bell APRCSA

• Joanne Burton

• Roslyn Melrose

• Shaun Hughston

The AMRANZ Council and Members have had a year of political activity as they have addressed the issues surrounding various State Government policies and have worked closely with AHPRA to clarify procedures for Members.

AMRANZ have been a leader in their efforts to assist Members with improving knowledge and understanding and many Members attended the recent Immigration Workshop and also completing the RCSA Service Delivery Standard.

AMRANZ Council continues to provide Members Meetings to endeavor to share knowledge, network and address current issues. These meetings have proven to be a great success with the Members and will continue to be an ongoing planning item for Council. With Membership growing and one hundred and five Member companies across 69 locations AMRANZ represents a strong Member Group in the Association.

Executive CommitteesThe RCSA through its Executive Committees has continued to ensure the industry’s voice is heard on a range of important issues.

Safety and Compensation ExecutiveThe RCSA Safety and Compensation Executive continued to provide valuable counsel and leadership to RCSA and its Members throughout the 2009 to 2010 financial year. Combined with the State and Territory working groups, it has been possible to defend our interests at a time where new challenges arose almost every month. Those issues and initiatives which the Safety and Compensation Executive managed during the past year included the following.

• The development of the model Work Health and Safety Bill where RCSA won, through its submissions and lobbying, significant concessions in relation to the recognition of multiple duty holders (clients, workers and on-hire employees). Through RCSA efforts, the definition of what is ‘reasonably practicable’ was amended to allow clients and on-hire firms to share responsibility and avoid unnecessary duplication. Furthermore, RCSA representations saw the introduction of client responsibility in relation to communication, consultation and representation. RCSA continues to be represented on the National Employers’

Members of SCANZ include:

• Greg Hargrave (Skilled Group)

• Debra Loveridge APRCSA (Randstad)

• Nigel Heap (Hays)

• Ian Basser (Chandler McLeod)

• Lincoln Crawley (Manpower)

• Jeff Doyle (Adecco)

• Stephen Shepherd APRCSA (RCSA President)

Australian Association of Nursing Recruitment Agencies (AANRA)The Australian Association of Nursing Recruitment Agencies (AANRA) is a Member Group of the RCSA. The past twelve months has been full of challenges for nursing recruitment agencies.

AANRA Council has been actively working to raise the profile of AANRA and continues its focus on putting in place industry initiatives and services to benefit Members. AANRA was actively engaged in representing the interests of Members during the Victorian Public Health tender and the Northern Territory tender for nursing services.

AANRA Council entered into an agreement with the Australian Nursing Federation to make available to AANRA Member nurses and healthcare staff online education and training modules prepared by the ANF. This initiative establishes a benchmark for training and will greatly enhance the ease with which AANRA Member nurses can complete training and meet competency requirements under the new National Registration Scheme for healthcare workers.

AANRA Members remain active participants in Working Groups and industry forums in Western Australia and in engaging with a software provider to the sector to deliver better outcomes for Members.

AANRA Chair Margaret Scott extended thanks on behalf of AANRA Council and AANRA Members to Peter Kelly and Michael Kemp, both who left council during the past year. AANRA Council Members are:

• Margaret Scott OAM APRCSA, Chair

6

CEO’s Report – continued

OHS Consultative Forum, hosted by the Australian Chamber of Commerce and Industry, and is a recognised defender of the interests of the recruitment and on-hire sectors.

• The introduction of new legislation in Victoria to place an obligation upon host organisations to cooperate with on-hire firms in relation to the return to work of on-hired workers injured in their workplaces.

• The defence of the industry in relation to who regulators deem to be ‘suitably qualified’ from an OHS perspective under State legislation.

• Ongoing development of OHS templates, guides and training to support Member operations through the Business Solutions Centre (BSC).

Workplace Relations ExecutiveThe RCSA Workplace Relations Executive spent most of the 2009 to 2010 financial year absorbed in the Fair Work legislation and this was primarily done through the establishment of a Fair Work Working Group within RCSA. Fair Work, and especially the introduction of modern Awards, saw one of the most significant changes for the on-hire sector in many years. Working with the Business Solutions Contact (BSC) the Fair Work Working Group addressed challenges and issues across the following areas of interest.

• The extension of unfair dismissal to many Members previously not affected by the legislation owing to their employment of less than 100 employees and the procedural obligations within such legislative obligations.

• The introduction of adverse action law which sees the right of internal and on-hire workers to make claims where their employment or contract has been adversely impacted as a result of pursuing ‘workplace rights’.

• The introduction of ‘good faith bargaining’ and its impact upon on-hire and recruitment firms making enterprise agreements with their employees.

• The potential for ‘temp to perm’ arrangements and ‘transitioning’ to result in a ‘transfer of business’, where an enterprise agreement will follow such transferring employees.

• The introduction of the National Employment Standards as the 10 minimum entitlements of all employees across Australia including rights to redundancy pay and employee rights to request flexible working arrangements.

• The introduction of 122 modern Awards which extensively change the basic entitlements of recruitment staff and on-hire employees. This included lobbying and representation of Member interests in relation to the transitional provisions within such Awards and the education of the Government regulator on how the on-hire sector operates.

Partners and Supporters The RCSA continues to receive strong support from it’s committed group of Partners and Supporters.

Recruitment Super

OAMPS

Bank of Queensland

Event Supporters – the RCSA also acknowledges the great support received from the following organisations as event supporters:

• 1300record.com.au

• careerone.com.au

• Xchanging

• Liberty Underwriters

• Quintessential Marketing Consulting (PeoplePulse)

• Recruitment Systems

• Seek.com.au

• Seek.co.nz

• The Adelaide Advertiser

• The Canberra Times

• The West Australian

• WorkPro

• WR Berkley Insurance Australia

7

Recruitment & Consulting Services Association Ltd & Controlled Entity ABN 41 078 606 416

Directors’ ReportRecruitment & Consulting Services Association Ltd ABN 41 078 606 416

Your directors present their report on the company for the year ended 30th June 2010.

DIRECTORSThe names of the directors in office during the financial year and until the date of this report are as follows.

Directors were in office for the entire period unless stated.

S Shepherd APRCSA D Loveridge APRCSA

M McArthur MRCSA (Life) H Olivier APRCSA

R van Stokrom APRCSA J Spriggs APRCSA

D Dadds APRCSA J Barratt APRCSA

L Mabikafola APRCSA (appointed 26/11/09)

P Langford APRCSA

P McCormick

PRINCIPAL ACTIVITIESThe principal activities of the Recruitment & Consulting Services Association Limited (“RCSA”), during the financial year were to represent Members and to advance the interests of Members.

REVIEW OF OPERATIONSThe operations and state of affairs reflect the outcome of the various activities of the RCSA for the year ending 30th June 2010. An application to deregister Remaginet Pty Ltd, a company wholly owned by the RCSA, was lodged and accepted by ASIC on July 6, 2010. All Remaginet Pty Ltd operations have been transfered to the RCSA.

The RCSA’s short term objectives are:

The continued focus of activities for the past year has been to develop the profile of the recruitment industry and Members of the RCSA. Lobbying the Federal government in Australian and New Zealand and ensuring the committee and governance structure are representative and proactive for all levels of Membership has also been a priority.

The past 12 months has seen particular attention focused on increasing the recognition of its Accredited Professional Recruiter Status and Continous Professional Education Program. Promoting the RCSA Code of Prefessional Conduct and Service Delivery Standard whilst continuing to develop industry best practice in areas of Occupational Health and Safety, Privacy, Compliance, Workplace Relations and Service delivery has also been a high priority and assisted in continuing to set industry standards.

The RCSA’s long term objectives are to:

• Lead and be the voice of the recruitment and HR services industry. To remain the peak body in Australia and New Zealand focussed on setting standards for ethics and professionalism in business and providing advocacy for Member companies and individual professional members. To advance the positive recognition of the industry.

To achieve these objectives, the entity has adopted the following strategies:

• Build, develop and maintain strategic relationships with key stakeholders

• Build RCSA profile and brand

• Build the RCSA Membership value proposition

8

INFORMATION ON DIRECTORS

Director: S Shepherd APRCSA Director: Matthew McArthur MRCSA (Life)

Qualifications: Qualifications:

Experience: 22 years in the recruitment industry. 16 years senior management experience

Experience: 28 years in the recruitment industry

Special Responsibilities

RCSA Board President, Director Government Positioning


Director Business Partnerships

Director: D Loveridge APRCSA Director: Robert van Stokrom APRCSA

Qualifications: Qualifications: Dip. Business, Grad Dip Logistics

Experience: 22 years in the recruitment industry Experience: 25 years pharmaceutical, 11 years recruitment


RCSA Vice President Director Research Foundation Member Executive Committee


Director Continuing Professional Education, Director Finance, Member Exeecutive Committee

Director: H Olivier APRCSA Director: L Mabikafola APRCSA (Appointed Nov, 26, 2009)


Experience: 32 years recruitment industry experience; 5 years for the Employment Services Division UK

Experience: 15 Years in the Recruitment Industry


RCSA Vice President, member Executive Committee, Member of the Standards Council


Director: P Langford APRCSA Director: J Spriggs APRCSA

Qualifications: Qualifications: Diploma in HR

Experience: 26 Years in Industry Experience: 24 years in recruitment industry


Director Membership Special Responsibilities

Director Standards Council

Director: P McCormick Director: J Barratt APRCSA


Experience: 31 years in Industry Experience: 17 Years in Industry



Director Accredited Professional program, Director Regional Membership

Director: D Dadds Company Secretary:

G Lambrou

Qualifications: B. Commerce Qualifications: B Bus (Acc)

Experience: 40 years in Recruitment Experience:


Director OHS & WC Special Responsibilities

Company Secretary

Directors’ Report – continuedRecruitment & Consulting Services Association Ltd ABN 41 078 606 416

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MEETING OF DIRECTORSDuring the financial year, 5 meetings of Directors, 12 meetings of Executive Committee and 12 meetings of the Finance Committee were held.

Attendees were:

Directors Meetings Executive/Finance Committee Meetings Eligible to Attend Attended Eligible to Attend Attended

S Shepherd 17 17 10 10

D Loveridge 17 9 10 6

H Olivier 17 15 10 10

Matthew McArthur 17 10 – –

Robert van Stokrom 17 17 10 10

J Spriggs 17 12 – –

J Barratt 17 13 – –

D Dadds 17 16 – –

P Langford 17 13 – –

P McCormick 17 10 – –

L Mabikafola 17 15

MEMBERS’ GUARANTEEThe RCSA is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If the RCSA is wound up, the Constitution states that each member is required to contribute a maximum of $50 towards meeting any outstanding obligations. At 30 June 2010 the collectibe liability of Members was $155,600 (2009: $149,050).

AUDITOR’S INDEPENDENCE DECLARATIONThe lead auditor’s independence declaration as required under section 307C of the Corporations Act 2001 can be found on page 6 and forms part of this Director’s Report.

Signed in accordance with a resolution of the Board of Directors.

Stephen Shepherd APRCSA Matthew McArthur MRCSA (Life)

Director Director

Dated this 2nd day of September 2010

Melbourne, Australia.

10

Auditor’s Independence Declaration

11


Statement of Comprehensive IncomeFOR THE YEAR ENDED 30 JUNE 2010

Recruitment & Consulting Services Association Ltd ABN 41 078 606 416

Note 30 June 2010 30 June 2009 $ $

Revenue 2 3,131,698 3,960,039

Salaries and employee benefits expense (1,043,762) (1,554,013)

Depreciation expense 3 (51,239) (57,698)

Education expenses (221,477) (534,836)

Meeting and function expenses (14,210) (125,928)

Government Funding (120,584) (259)

Publications expenses (54,995) (96,570)

Conference expenses (380,103) (415,470)

Membership expenses (60,431) (108,746)

Computer expenses (76,280) (89,775)

Office and administration expenses (543,263) (616,624)

Advertising expenses (126,614) (396,656)

Other expenses 3 (360,094) (363,193)

Profit/(Loss) on Disposal of Remaginet Pty Ltd (6,936) –

Profit before income tax expense 71,710 (399,730)

Income tax expense – –

Net profit/(loss) for the year 71,710 (399,730)

Other comprehensive income for the year, net of income tax – –

Total comprehensive income for the year 71,710 (399,730)

The accompanying notes form part of these financial statements

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Statement of Financial PositionFOR THE YEAR ENDED 30 JUNE 2010


Note 30 June 2010 30 June 2009 $ $

Current AssetsCash and cash equivalents 5 967,594 865,636

Trade and Other Receivables 6 369,755 397,095

Other Current Assets 7 63,326 156,967

Total Current Assets 1,400,676 1,419,698

Non-current AssetsProperty, plant and equipment 8 111,027 161,139

Total Non-current Assets 111,027 161,139

Total Assets 1,511,702 1,580,837

Current LiabilitiesTrade and Other Payables 9 215,539 240,380

Employee benefits 10 87,457 129,457

Deferred income 11 802,420 856,937

Total Current Liabilities 1,105,416 1,226,774

Non Current LiabilitiesEmployee benefits 10 14,581 34,068

Total Non Current Liabilities 14,581 34,068

Total Liabilities 1,119,997 1,260,842

Net Assets 391,705 319,995

Members’ FundsRetained profits 391,705 319,995

Total Members’ Funds 391,705 319,995


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Statement of Changes in Members’ FundsAS AT 30 JUNE 2010


Note $

Total Members Funds at 1 July 2008 719,725

Total comprehensive income for the year (399,730)

Total equity at 30 June 2009 319,995

Total Members Funds at 1 July 2009 319,995

Total comprehensive income for the year 71,710

Total equity at 30 June 2010 391,705


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Statement of Cash FlowsFOR THE YEAR ENDED 30 JUNE 2010


Note 30 June 2010 30 June 2009 $ $

Cash Flows from Operating ActivitiesReceipts from membership subscriptions and workshops 3,253,075 4,354,152

Receipts from government funding 140,820 25,163

Payment to suppliers and employees (3,312,651) (4,384,601) Interest received 21,842 51,566

Net Cash Flows provided by/(used in) Operating Activities 18(b) 103,086 46,279

Cash Flows from Investing ActivitiesPayment for plant and equipment (1,128) (157,046)

Net Cash Flows provided by/(used in) Investing Activities (1,128) (157,046)

Net increase/(decrease) in cash held 101,958 (110,767)

Cash at beginning of year 865,636 976,403

Cash at end of year 18(a) 967,594 865,636


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Notes to and forming part of the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2010


NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIESCorporate InformationThe financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements (including Australian Accounting Interpretations), other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

The financial report covers the Company of the RCSA. RCSA is a company limited by guarantee, incorporated and domiciled in Australia. The financial report of the RCSA was authorised for issue by the directors on 2 September 2010.

Basis of PreparationThe financial report has been prepared on an accruals basis and is based on historical costs and does not take into account changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair value of consideration given in exchange for assets.

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

Adoption of new and revised accounting standardsIn the current year, RCSA has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board that are relevant to its operations and effective for the current annual reporting period.

Significant effects on current, prior or future periods arising from the first-time application of the standards discussed above in respect of presentation, recognition and measurement of accounts are described in the following notes.

Adoption of AASB 101 Presentation of Financial Statements (revisions), AASB 2007-8 and 2007-10 Amendments arising from the revisions to AASB 101

RCSA has adopted the revisions to AASB 101 Presentation of Financial Statements in these financial statements which has resulted in the introduction of the statement of comprehensive income, changes to the statement of changes in members’ funds, and other terminology changes.

Adoption of AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendment to Australian Accounting Standards arising from Reduced Disclosure Requirements

RCSA has adopted the new Australian Accounting Standard – Reduced Disclosure Requirements in these financial statements for the following standard which has resulted in a reduction in disclosures compared to those required under full AASB disclosure requirements applicable in prior years:

AASB 7 Financial Instruments: Disclosures

The financial instruments risk management disclosure has been reduced in accordance with the disclosure requirements for AASB 7 under AASB 2010-2 Amendment to Australian Accounting Standards arising from Reduced Disclosure Requirements.

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

(a) Critical accounting estimates and judgementsThe preparation of a financial report in conformity with Australian Accounting Standards requires management to make estimates, judgements and assumptions 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 RCSA. Actual results may differ from these estimates.

The accounting policies detailed below provides details of these estimates, judgements and assumptions.

(b) Plant & Equipment

Each class of property, plant and equipment is carried at cost, where applicable, any accumulated depreciation and impairment losses.

Plant and equipment

The carrying amount of plant and equipment is reviewed annually by directors to ensure that it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows which will be received from the assets employment and subsequent disposal. The expected net cash flows have not been discounted to their present values in determining recoverable amounts.

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NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES – continuedDepreciation

The depreciable amount of all fixed assets are depreciated on a diminishing value basis over their useful lives to the RCSA commencing from the time the asset is held ready for use.

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

Class of fixed asset Depreciation Rate Office Furniture and Equipment 20 – 33% Computer Software 20 – 33% Computer Equipment 20 – 33%

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included in the income statement.

(c) Employee BenefitsProvision is made for the RCSA liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs.

Employee benefits payable later than one year have been measured at the present value of the estimated furture cash outflows to be made for those benefits. Those cash flows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows.

(d) Revenue Revenue is recognised to the extent that it is probable that the economic benefits will flow to RCSA and the revenue can be reliably measured.

Membership revenue is recognised upon the provision of the service to the RCSA’s members. Where the period of service delivery extends beyond year end, a share of the revenue is recognised as deferred income.

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

Revenue from Government grants is recognised upon the provision of service.

Other revenue is recognised when the right to receive the revenue has been established.

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

(e) Income TaxThe RCSA had been granted “Charity” status by the Australian Taxation Office. This was granted on the of the basis of it’s status as a educational institution. This status is effective from July 1, 2005.

This status entitles the RCSA to Income Tax Exemption under Subdivision 50-B of the Income Tax Assessment Act 1997. GST Concessions under Division 176 of the New Tax System (Goods and Services Tax) Act 1999 and FBT rebate under section 123E of the Fringe Benefits Tax Assessment Act 1986.

(f) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST except where the GST is not recoverable from the Australian Taxation Office, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable.

Receivables and payables are stated with the amount of GST included

Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the Australian Taxation Office are classified as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the Australian Taxation Office.

(g) Cash and cash equivalents For the purpose of Cash Flow Statement, cash and cash equivalents includes cash on hand and on call deposits with banks or financial institutions.



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(h) LeasesOperating leases

The minimum lease payments of operating leases, where the lessor effectively retains substantially all of the risks and benefits of ownership of the leased item, are recognised as an expense on a straight line basis.

(i) Conference Revenue and ExpensesConference related revenue and expenditure is brought to account in the Income Statement in the year that the conference is held.

(j) Impairment of AssetsAt each reporting date, the RCSA reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

Any excess of the asset’s carrying value over its recoverable amount is expensed to the income statement.

Where the asset does not generate cash flows that are independent from other assets, the entity estimates the recoverable amount of the cash-generating unit to which the asset belongs.

(k) Financial InstrumentsInitial recognition and measurement

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

Financial instruments are initially measured at fair value plus transaction costs where the instrument is not classified as at fair value through profit and loss. Transaction costs related to instruments classified as at fair value through profit or less are expensed to profit or loss immediately. Financial instruments are classified and measured as set out below.

Classification and subsequent measurement

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers but also incorporate other types of contractual monetary assets. Trade and most other receivables of RCSA falls into this category of financial instruments.

Financial Liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost using the effective interest rate method.

The effective interest rate method is a method of calculating the amortised cost of a financial instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial assets, or, where appropriate, a shorter period.

Impairment of financial assets

At each reporting date, RCSA assesses whether there is objective evidence that a financial instrument has been impaired. Impairment losses are recognised in the income statement.

The carrying amount of financial assets including uncollectible trade receivables is reduced by the impairment loss through use of an allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in the profit and loss.

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Note 30 June 2010 30 June 2009 $ $

Note 2: RevenueRevenue from operating activities– membership subscriptions 1,513,488 1,644,383

– education, workshops and functions 270,930 753,200

– sponsors 711,872 565,528

– government funding 128,018 22,875

– publications 56,995 383,645

– conferences 397,481 495,406

3,078,784 3,865,037

Revenue from non operating activities

– interest received 21,842 51,566

– other revenue – other persons 31,072 43,436

52,914 95,002

Total revenue 3,131,698 3,960,039

Note 3: Profit (a) Profit before income tax has been determined after the following expenses:

Depreciation & amortisation

– plant and equipment 51,239 57,698

Rental Expense on operating leases

– occupancy lease payments 325,828 234,214

Note 4: Auditor’s Remuneration Remuneration of the auditors of the company for:

– auditing or reviewing the financial report 27,000 29,000

– taxation services 8,700 7,500

35,700 36,500

Note 5: Cash and cash equivalents Cash on hand 580 580

Cash at bank 646,954 814,600

Cash on deposit – other 320,060 50,456

18(a) 967,594 865,636

Note 6: ReceivablesCurrent

Trade receivables 430,053 455,409

Provision for impairment of receivables (a) (63,382) (63,382)

366,671 392,027

Other receivables 3,084 5,069

369,755 397,096

The carrying value of trade receivables is considered a reasonable approximation of fair value due to the short-term nature of the balances.

(a) Impaired receivables

All of the RCSA’s trade and other receivables have been reviewed for indicators of impairment. Certain trade receivables were found to be impaired and a provision of $63,382 (2009: $63,382) has been recorded accordingly.



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Note 6: Receivables – continuedIn addition, the RCSA has provided fully for all receivables overdue as required.

A reconciliation of the movement in the provision for impairment of receivables is shown below:

Note 30 June 2010 30 June 2009 $ $

Opening balance at 1 July (63,382) (17,118)

Provision for impairment recognised in the year – (46,264)

Receivables written off as uncollectible – –

Closing balance at 30 June (63,382) (63,382)

There are no impaired assets within other receivables and it is expected that other receivables balances will be received when due.

Note 7: Other AssetsCurrent

Prepayments 63,326 156,967

Note 8: Plant and Equipment Furniture & fittings

At cost 195,441 290,117

Accumulated depreciation (137,527) (211,961)

57,914 78,156

Computer equipment & software

At cost 223,622 338,091

Accumulated depreciation (170,509) (255,108)

53,113 82,983

Total plant and equipment 111,027 161,139

Movements in carrying amounts Furniture & Computer Equipment Fittings & Software Total $ $ $Carrying amount at 1 July 2008 39,914 21,876 61,790

Additions 74,009 83,036 157,045

Depreciation expense (35,769) (21,928) (57,697)

Carrying amount at 30 June 2009 78,154 82,984 161,138

Movements in carrying amounts

Carrying amount at 1 July 2009 78,154 82,984 161,138

Additions 1,129 1,129

Depreciation expense (22,369) (28,871) (51,240)

Carrying amount at 30 June 2010 56,914 54,113 111,027

Note 30 June 2010 30 June 2009 $ $

Note 9: Payables Current

Trade creditors 82,942 120,759

Sundry creditors & accruals 132,597 119,621

215,539 240,380

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Note 30 June 2010 30 June 2009 $ $

Note 10: Employee BenefitsCurrentAnnual leave 50,000 44,413

Long service leave 37,457 85,044

87,457 129,457

Non-Current

Long service leave 14,581 34,068

14,581 34,068

Note 11: Deferred Income Current

Subscriptions received in advance 465,488 813,084

Conference income received in advance 106,850 11,100

Other income received in advance 230,082 32,753

802,420 856,937

Note 12: Members’ GuaranteeThe RCSA is a company limited by guarantee. If the RCSA is wound up, the Constitution states that each member is required to contribute a maximum of $50 each towards meeting any outstanding obligations. At 30 June 2010 the number of Members was 3112.

Note 13: Expenditure Commitments Lease expenditure commitmentsOperating leases (non-cancellable)

Minimum lease payments

– not later than one year 243,669 292,692

– later than one year and not later than five years 417,789 892,100

Aggregate lease expenditure contracted for at balance date 661,458 1,184,792

The RCSA leases level 3 at the company’s registered place of business. The lease runs for a period of 3 years, with an option to renew the lease after that date. Lease payments for Level 3 increases annually at a fixed rate of 5% per annum.

The RCSA also leases property at Suite 2, Castlereagh Street, Sydney. The lease runs for a period of 5 years. Lease payments increase annually at a fixed rate of 4% per annum.

Note 14: ContingenciesThe entity has provided an indemnity guarantee in rerspect of a bank guarantee in favour of the property owner on the entitiy’s leased premises

74,736 74,736

Note 15: Events Subsequent to Balance DateNo matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the RCSA, the results of those operations, or the state of affairs of the RCSA in future financial years.



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Note 16: Related Party TransactionsControlled EntityAt 31 May 2010, the assets and liabilities of Remaginet Pty Ltd were transferred to the RCSA.

A loss on disposal of the investment in Remaginet of $6936 was recognised by the RCSA.

There are $NIL amounts (2009: $214,711) receivable from Remaginet Pty Ltd at 30 June 2010.

30 June 2010 30 June 2009 $ $

Transactions with Controlled EntityManagement fees charged to Remaginet Pty Ltd 60,000 96,000

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

Key Management Personnel Related EntitiesThe Related entities on Members on the board of directors are required to pay membership fees on the same terms and conditions as all other members.

The directors of the RCSA during the financial year were:

S Shepherd APRCSA D Loveridge APRCSA

M McArthur MRCSA (Life) H Olivier APRCSA

R van Stokrom APRCSA J Spriggs APRCSA

D Dadds APRCSA J Barratt APRCSA

L Mabikafola APRCSA (appointed 26/11/09) P Langford APRCSA

P McCormick

Transactions with Key Management Personnel Related Entities: Consultants fees charged from Randstad Pty Ltd 4,970 –

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

Note 17: Key Management PersonnelTransactions with key management personnel:

The key management personnel compensation included in ‘salaries and employee benefits expenses’ are as follows:

Short-term employee benefits 104,576 190,550

Other long term benefits – 4,253

Post-employment benefits 10,458 19,055

Termination benefits 45,288 –

160,322 213,858

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Note 30 June 2010 30 June 2009 $ $

Note 18: Cash Flow Statement (a) Reconciliation of Cash Cash at the end of the year as shown in the Statement of Cash Flows is

reconciled to the related items in the Balance Sheet as follows:

Cash on hand 580 580

Cash at bank 967,014 814,600

Cash on deposit – 50,456

5 967,594 865,636

(b) Reconciliation of net profit after tax to net cash flows from operations Profit/(loss) after related income tax expense 71,710 (399,730)

Non cash items:

Depreciation of non current assets 51,239 57,698

Increase/Decrease in provision for doubtful debts – 46,275

Changes in assets and liabilities:

(Increase)/decrease in receivables 27,341 237,713

(Increase)/decrease in other current assets 93,641 56,628

Increase/(decrease) in payables (24,846) (19,188)

Increase/(decrease) in provisions (61,483) (28,589)

Increase/(decrease) in other current liabilities (54,516) 95,467

Net cash flow from operations 103,086 46,274

Note 19: Company DetailsThe registered office and principal place of business of the RCSA is:Level 363 Exhibition StreetMelbourneVictoria 3000



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Director’s DeclarationRecruitment & Consulting Services Association Ltd ABN 41 078 606 416

In the opinion of the directors:

(a) The financial statements and notes of the Recruitment and Consulting Services Association Limited are in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the Recruitment and Consulting Services Association Limited’s financial position as at 30 June 2010 and of their performance for the year ended on that date; and

(ii) complying with Accounting Standards and Corporations Regulations 2001; and

(b) There are reasonable grounds to believe that the Recruitment and Consulting Serices Association Limited will be able to pay its debts as and when they become due and payable.

The declaration is made in accordance with a resolution of the Board of Directors.

Stephen Shepherd APRCSA Matthew McArthur MRCSA (Life)

Director Director

Dated this 2nd day of September 2010

Melbourne, Australia.

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Independent Audit Report

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Australia & New Zealand

Australia ABN 41 078 606 416

New Zealand GST No. 69 328 717

Level 3, 63 Exhibition Street

Melbourne VIC 3000

Australia

T: +61 3 9663 0555

F: +61 3 9663 5099

E: [email protected]

www.rcsa.com.au

Documents

RCSA 2010 · will be utilising data collected via a member survey (conducted in September 2010) to build on the RCSA Member value proposition and refine the professional development