annual report 2009 - queensland parliament...peter carne resigned as ceo on 6 february 2009 to take...

Queensland Law SocietyServing our members

Annual Report 2009

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October 2008

Contents

Queensland Law Society Law Society House 179 Ann Street Brisbane QLD 4000

telephone: 07 3842 5888 facsimile: 07 3842 5999 email: [email protected] website: www.qls.com.au

Queensland Law Society Notice of Annual General Meeting

Thursday, 19 November 2009

Law Society House 179 Ann Street, Brisbane

Front Cover Images (Left – Right)

1. Greeting2. QLS and Australian Insurance Law Association (AILA) conference, Noosa Sheraton Resort,

May 20093. LawCare - Taking Positive Action, 2008 redesign4. Former Chief Magistrate Marshall Irwin swearing in new magistrates John Hutton, Ross

Mack, James McDougall and Kay Ryan at a ceremony at Brisbane Magistrates Court on July 28, 2008

5. In discussion6. Maroochydore Court House7. QLS President Ian Berry with David Meara, QLS Council 8. Legal professionals – Brisbane9. Proctor – April edition, 200910. QLS President Ian Berry and Stephen Taylor (QLS staff) participating in Shave for a Cure,

13 March 200911. Premier Anna Bligh speaking at the President’s Christmas Cocktails and Awards, City Hall,

December 200812. Law Week trivia night champions: Anne-Marie Loeskow, Louise Wallace, Greg Shaw, Mark

Madsen, Joe Carey, Kate Whalan and Chris Hargreaves (current and former employees of Mullins Lawyers)

13. Attorney-General Kerry Shine and Mark Metzeling at the QLS Careers Fair, Sebel & Citigate Hotel, 28 July 2008

14. Themis statue15. CEO Breakfast, The Brisbane Club, October 200816. PeterWilson,SuccessionCommitteeandGlennDickson,OfficeofthePublicTrustee,

Presidents’ Christmas Cocktails and Awards, City Hall, December 200817. Past Presidents Board, Level 6, Law Society House18. Practice Management Series guide: Client Care – Communication and Service by

Giles Watson19. Katherine Lam, Carter Capner/Hall Lawyers; John Tryon, Turner Freeman20. Front of Law Society House, Ann St, Brisbane

© Queensland Law Society 2009

From the PresidentIan Berry

The Hon Cameron Dick MP Attorney-General and Minister for Industrial Relations GPO Box 149 BRISBANE QLD 4001

Dear Attorney

Itismyprivilegetosubmittheeighty-firstAnnualReportofQueenslandLawSocietycoveringthe2008/09financialyear.

At the outset of my term as President I saw member involvement as my prime focus and committed tovisitingasmanymembersasIcould.IhavetravelledtheStateonnumerousoccasionstofulfil

my commitment and have visited practitioners in Cairns, Townsville, Rockhampton, Bundaberg, Airlie Beach, Emerald, and Kingaroy.

On my travels I found a keen and responsive profession operating businesses in challenging times and being subject to ever increasing regulatory burdens.

The tide of regulation and reform appears to be unrelenting. Now that we have digested what were to be permanent arrangements under the Legal Profession Act 2007, on 30 April 2009, the Prime Minister and the Federal Attorney-General announced that COAG had agreed on a plan to achieve national regulation of the legal profession.

A specialist National Regulation Task Force has been appointed to make recommendations and draft legislation for consideration by the end of April 2010, and a Consultative Group, chaired by the Hon Michael Lavarch, has been appointed. The QLS CEO has been appointed to the Consultative Group, which has the role of identifying issues, providing advice and developing recommendations.

QLS staff are also actively involved in the national committee which is developing the draft national professional standards. This is an initiative which I feel is greatly important, not only for the desired outcome of a truly national profession but also ensuring that it is the legal profession and the courts which set the standard for professional conduct.

During the year we have also seen great success in our advocacy which demonstrated by practical victories that the voice of the Queensland legal profession is being heard. Most notably we were successful through our local lobbying and by

instigating matters at the Law Council of Australia in receiving an exemption from the Wholesale Deposit Guarantee Charge for solicitors trust accounts with balances over $1million.Iunderstandthatthisprovidesdepositguaranteecoverageforfirmswhichwould have otherwise cost $1.5 million a year to the Queensland profession alone.

QLS has seen successes lobbying in the formation of the Queensland Civil and Administrative Tribunal which will impact on the practices of so many of us. I must also celebrate the Bligh Government’s announcement to bring welcome reform the Property Agents and Motor Dealers Act 2000 – a matter on which the QLS has consistently lobbied formanyyearsandisamatterofconcerntoamajorityoffirms.ItispleasingtoseetheSociety’s call for reform being met.

I must note my gratitude to those friends of the profession without whose support we would be unable to be a vibrant Society: the judiciary led admirably by the Chief Justice; our learned friends of the Bar, our colleagues at the Law Council of Australia; Ministers and officersoftheGovernmentandmostimportantlythecontributionofmembersthemselves. A Society of members is, after all, what the members make it.

For me, this report highlights the very great contribution of members to their Society and the irreplaceable assistance of the Society’s hard-working staff, led by CEO Noela L’Estrange

following on from Mr Peter Carne. If maintaining QLS as a leading legal professional association were a race, it would be a relay and while the distance may be long I would be

proud to be leading a stage for the team.

I commend the Annual Report for 2008/09 to you.

Yours sincerely

Ian Berry President 2009

Queensland Law Society – 2 – Annual Report 2008/09

Malcolm Hinton completed his Bachelor of Laws and Masters of Laws at QUT and has been admitted to Supreme Court of Queensland, New South Wales and the Australian Capital Territory.Malcolm has worked as a solicitor in private practice, as a government legalofficerandasacorporatelawyer and has served as a policeofficerinQueenslandandEast Timor.Prior to his current appointments, Malcolm was the Manager of Legal Investigations and Prosecutions and Director of Professional Standards for the Society

The Executive Team

Peter Michael Lyons has over 30 years experience within the legal services industry, both within the private and public sector. He began in his current position with the Society in 2008 and has previously been Deputy General Counsel and Manager, Investigations. He has held positions with the Crime and Misconduct Commission and was a practitioner for ten years in private practice.In his current position as Director, Member Central, he has developed a keen interest in the activities and values of professional associations particularly in the areas of governance, strategic planning and membership motivation and engagement. These interests have led to him undertaking a MBA in Philanthropicandnotforprofitstudies at QUT. Peter and his membership team are committed to providing relevant and cost-effective services and products to members.

Patricia Linn has over 20 years experience in human resources both in consulting practice and in management roles in both New Zealand and Australia. Patricia has special expertise in strategic human resource management, change management and organisational development having worked across a broad spectrum of organisations both in the public and private sector. Patricia has introduced a blend of strategic and best practice to the Society and has an interest in providing members with support in growing strong businesses based on sound human resource principles.

CEO’s Review 2008 – 2009This has been a year of substantial change for QLS. QLS now bases its strategic planning on a balanced scorecard approach, with the four areas of focus for planning and actions being: Financial, Membership, Processes and Systems and People and Resources. These areas underpin all key decisions about investment, and are also used as part of the reporting process on projects undertaken.

Our agreed core values continue:Integrity•Innovation•Service•Courage and fearlessness•

independence with sound judgement -leadership -

Passion•

Malcolm Hinton LLB (Hons) LLM and Grad Cert App Mgt

General Counsel and Director, Advocacy & Accountability

Peter Lyons LLB LLM MA (Justice Studies)Director, Member Central

Patricia Linn DipBusSHRM DipBusPMER

Director, People and Organisational Performance

From the Chief Executive OfficerNoela L’Estrange

Scott Rowan commenced as Director, Information Systems on 17 December 2008.Scott completed a Bachelor of Commerce degree at the University of Queensland with a focus on Information Systems. Scott is also a Chartered Accountant. Prior to joining QLS, Scott had over 11 years experience working in private practice providing information systems consulting services to clients. Scott brings a strong project management skill set to QLS and is acertifiedPractitionerinthePrince2project management methodology.Scott joined QLS to drive an alignment between the Society’s business needs and information systems in order to achieve the Society’s strategic goals.

Scott Rowan BCom, CADirector, Information Systems


Bernie O’Donnell is a graduate of Victoria University, Wellington, New Zealand. He was admitted as a Barrister and Solicitor of the High Court of New Zealand in 1973 and the Supreme Court of Victoria in 1984. He was admitted as a Solicitor of the Supreme Court of Queensland in 1985. He practised as an employed solicitor, a sole practitioner, a partner in private practiceandastheOfficer-in-ChargeoftheLegalAidOfficeatMaroochydore prior to joining the Society in 1989 as a solicitor in the Law Claims department. He became Assistant Secretary/Insurance Manager in 1996, Deputy Secretary of the Society in 1998 and Secretary in 2002.

QLS’s longer term aspirational goal is to be:A strong, viable, independent, representative professional •membership organisationAcknowledged publicly as a major contributor to discussions •on legal mattersA vital organisation that engenders membership participation.•

Importantly, the planning process led by Peter Carne also identifiedthatQLSneededtoundertakeanorganisationalrealignment, to support the linking of our structure, strategy and delivery.ThereisnowanExecutiveTeamoffive,includingthenew position of Director of Information Systems working together to implement the agreed alignment and strategies.

Peter Carne resigned as CEO on 6 February 2009 to take up the position of the Public Trustee of Queensland. Peter Lyons,

Bernie O’Donnell LLB

Secretary to the Society

Noela L’Estrange BA (Hons) LLB MAdmin FAICD FAIM ChiefExecutiveOfficer

NoelacommencedastheChiefExecutiveOfficeron11May2009.Noela has extensive experience in the legal profession, and has been a practitioner in both private and public practice, an academic, HR lawyer, strategic Consultant and immediately prior to this appointment, the Director of Legal Practice Support for the Australian Government Solicitor in Canberra.She has been a director of public and private companies, and has been a national Director of the Australian Corporate Lawyers’ Association and a Councillor for the ACT for the Australian Institute of Company Directors.She is a Director of Lexon Insurance Pte Ltd and The College of Law Queensland Pty Ltd. She is a Fellow of both the Australian Institute of Company Directors and the Australian Institute of Management.

Director Member Central took up the role of Acting CEO from 7 February 2009 whilst Council undertook the recruitment process.

I was appointed by Council as the CEO of the QLS, and commenced in the position on 11 May 2009. I have begun to re-energise the organisational realignment to ensure that we complete the process, and that we have in place performance plans which align to our Strategic Plan and strategies. This will giveusafirmbasisformovingforward,andplanningforthecoming year.

We also undertook additional member surveys, which have confirmedthatmanyofouractivitiesarehighlyvaluedbyourmembers. After analysing the results, we have built into our strategies for the coming year changes based on strengthening our delivery of knowledge and skills development, the standing of members and providing leadership for the profession.

The executive reports provide details of our successful work over the past year. It is pleasing, in a year of world-wide economicdownturn,forQLStoreportonasmallprofitableresult.

Lexon Insurance Pte Ltd continues to provide professional indemnity insurance to solicitors in practice in Queensland. Lexon is wholly owned by QLS and I am one of two QLS-appointed directors on the Board. QLS provides accounting and information technology services to Lexon.

QLSfinanciallysupportsQPILCH,theQueenslandPublicInterest Clearing House, which enables solicitors to register for pro-bono work. We also include QPILCH information in the QLS Update, and in Proctor.

QLS continues to support LawAsia, through provision of accommodation and through a grant to support its operations.

In December 2008, QLS Council agreed to undertake a refurbishment of Law Society House, which is the Society’s major asset, and which has not had a refurbishment since it was built 20 years ago. This will be a major project, but will result in improved member services, including a new member lounge, meeting, mediation and board rooms and auditoria. It will also provide QLS staff with improved working conditions and amenity, including open area working. We will also take the opportunity, within the approved budget, to install “greener” lighting options.

I would like to thank President Ian Berry, Immediate Past President Megan Mahon and Council members for their support and guidance.

I also thank all QLS staff for their ongoing enthusiasm and willing participation in a changing environment.

Noela L’Estrange ChiefExecutiveOfficer

Anthony Walduck completed a Bachelor of Commerce at the University of Queensland and has been a member of the Institute of Chartered Accountants since 1994. Prior to joining the Society, he spent seven years working for a chartered accountingfirmandsixyearsincommerce,holdingseniorfinanceroles for various insurers. Anthony has been at the Society since November 2005.

Anthony Walduck CAGroupChiefFinancialOfficer

Secretary to the Society


The Society is governed, under the Legal Profession Act 2007, by an elected Council of not less than seven and not more than twelve members namely

the President, Deputy-President and Vice-President•

members of the Society, elected or appointed under a society •rule, and

an Australian legal practitioner appointed by the Minister.•

Council is responsible for the development and continual review of the Society’s strategic plan. This incorporates setting the organisational goals, developing the strategies to achieve those goals and setting performance indicators to measure the Society’s performance against those goals. It is also responsible forsettingtheannualbudgetandthefinancialmanagementofthe Society’s affairs.

In addition to the members listed above, the Immediate Past President is a council member for the year following that person’s presidency.

Elections for Council are held in October every second year, with full Society members eligible to vote. The President is elected for a term of one year commencing on 1 January, with the Deputy-PresidentsucceedingtotheofficeofthePresidentatthebeginning of the second term.

Council meets regularly throughout the year and provides the policy directions for the Society. A network of Sections/Committees in a wide range of areas assists Council in the performance of its duties.

QLS Council 2008/09 – Meetings attendedIan Berry (President) 7

Peter Eardley (Vice-President) 7

Megan Mahon (President) 7

Don Armit 5

AnnetteBradfield 6

Jeremy Chenoweth (Attorney-General’s appointed Member) 4

Bruce Doyle 7

Raoul Giudes 6

David Meara 4

Tony Pattinson 6

Ted Skuse 3

Brett Smith 3

Executive CommitteeThe Executive Committee has traditionally included the President, Deputy-President, Vice-President and the Immediate Past President. However, the Council resolved on 5 February 2009 to elect two (2) additional Council Members to the Executive Committee.

The Committee usually meets every second month or when necessary. The role of the Executive Committee is to assist Council with administration of the Society and implementation of Council’s directions.

The Executive Committee members for 2007/08 as at 1 July 2008 were: Megan Mahon (President) Ian Berry (Deputy-President) Peter Eardley (Vice-President)

The Executive Committee members for 2009 as at 5 February 2009 were: Ian Berry (President) Peter Eardley (Vice-President) MeganMahon(Ex-OfficioMember) Bruce Doyle Raoul Giudes

From the Immediate Past PresidentMegan Mahon

QLS Council

2009 Council MembersFront row:(L–R):AnnetteBradfield,DonArmit,IanBerry(President),PeterEardley(VicePresident), Megan Mahon (Immediate Past President)

Back row: (L–R): Bruce Doyle, Jeremy Chenoweth, Tony Pattinson, David Meara, Raoul Giudes, Ted Skuse

Absent: Brett Smith

I am proud to say that the Society’s advocacy role hasincreasedsignificantlyandasthevoiceoftheprofession, not only on behalf of our members,

but the greater community of Queensland as well. Our advocacy included a plethora of policy submissions made to the State and Federal Governments, as well as the frequent and considered comment on issues of interest and concern on almost every conceivable subject from national electronic conveyancing to the nationalprofessionproject,fromtransitofficerstoterrorismlaws.

The extensive advocacy work undertaken on behalf of our profession and the Queensland community could not have been achieved without our own members who volunteer their time and expertise and make themselves available, often at short notice, for providing comment, drafting reports and contributing to the

submissions that we make. Much, of course, is unheralded and unreported, but every member should feel proud that acknowledged experts in every area of practice have stepped forward to do this work.

During my term, there were both scheduled and occasional meetings with the then Attorney-General, Kerry Shine MP, on a whole raft of issues, and at all times he was unfailingly courteous and gave our submissions careful consideration. Of course, not every submission that we made to government was accepted, but at least we know that our informed voice was heard and the Attorney and other Ministers with whom we met, including the Treasurer and the Police and Corrective Services Minister, listened to us and respected our expertise and our candour.

Audit CommitteeThe Audit and Investment Committee is responsible for overseeingthefinancialreportingprocesstoensurethebalance,transparencyandintegrityofpublishedfinancialinformation and investment of surplus funds in accordance with the approved Investment Policy Statement. This committee met three (4) times during the year.

Profile

Attheculminationofmyterm,IwassatisfiedthatQLSwasregarded by many to be a professional organisation that is prepared to reach out to the community and to make considered and informed comment.

The end of 2008 saw the delivery of the highly anticipated Clarke Report, which dealt with the handling of the appalling treatment handed out to former Gold Coast medico Dr Mohamed Haneef. We will all eagerly await the outcome of that Report and whether the recommendations are implemented fairly and without any undue delay.

While notably public, our support of Mr Peter Russo, during his unwavering defence of his client Dr Haneef, wasn’t anything that should have been seen as unusual – I have always taken the view that the QLS is here for its members and that every single member is entitled to our protection and defence unless, of course, they fall foul of the law and betray their oath and duties asofficersoftheCourt.

Our membership has continued to climb and now totals more than 7,500, and women practitioners, by the end of 2008 were

41.1 percent of our membership. Full membership increased by 14 percent, associate membership by 41 percent and student membership by an astounding 52 percent – as we signed up our 1,000th student member.

The number and percentage of women members will no doubt continue to climb, with female graduates outnumbering male graduates pretty much the norm and I can only hope that the genderbalancewillsoonbereflectedatalllevelsof our profession.

Our role, functions and responsibilities could not begin to be discharged adequately without the unstinting co-operation and accessibility of the judiciary led by the splendid example of the Chief Justice, the Honourable Paul de Jersey AC, our friends and colleagues at the Bar Association of Queensland, our professional colleagues interstate, the Law Council of Australia and LAWASIA and various government agencies.

It is vital that QLS continues to be courageous in its responsibilities and duties as a member organisation and continue to stand up for what is fair and right.

QLS ProfileQueensland Law Society is the professional association for more than 7000 solicitors in Queensland. It is incorporated under an Act of Parliament – the Legal Profession Act 2007 – and is governed by a Council, which is elected by the membership.


WhiletheSocietyisdefinedasastatutoryauthorityinthe Financial Administration and Audit Act, it remains an independent professional body, subject to the governance of its elected Council. The Attorney-General is represented by a nominee who is a Queensland solicitor in private practice.

The Society is funded from a number of sources, including annual fees paid by its members. Any Australian legal practitioner or Australian-registered foreign lawyer is eligible for full membership of the Society. Associate membership is also available.

TheSocietyhasspecificstatutoryresponsibilitiesinrelationtothe regulation and discipline of solicitors in Queensland.

The functions and responsibilities of the Society include:issuingofpractisingcertificatesandmaintainingrecords•relating to solicitors

providing continuing legal education for solicitors•

providing services and support to members•

researching and making submissions to government on •matters of legal importance

investigating complaints of unsatisfactory professional •conduct against solicitors referred to it by the Legal Services Commission

administering the Fidelity Guarantee Fund•

trust account controls and receivership of trust property•

providing a public referral service for solicitors and mediators.•

Our visionTo provide leadership of the Queensland legal profession through:

promoting, supporting and protecting members’ interests;•

advocating for members’ rights;•

assistingmemberstoconducttheirpracticeprofitably •andefficiently;

upholding the rule of law for the protection of the community•

facilitating standards of professional and ethical conduct.•

QLS also supports the public through advocating the rule of law, promoting and supporting the provision of pro bono services, making submissions to government recommending improvements to the law, and improving public access to the law.

The Society conducts ongoing programs to inform the community about the law and the legal profession including the Schools and Community Education Service and promotion of pro bono (free) work undertaken by the many solicitors who provide legal advice to charities, other organisations and individuals.

Our stakeholders include:our members•

the legal profession•

the Queensland Government•

the judiciary•

the people of Queensland•

government agencies•

advocates for law reform•

legal educators•

law students.•

The members of the Audit Committee at year end were:

Bill East (Chairman)

Ian Berry (President)

Peter Eardley (Vice President)

Megan Mahon (Immediate Past President)

AnnetteBradfield(Counsellor)

Noela L’Estrange (CEO)

Statistics of the Legal Profession in Queensland

Admissions to practise in Queensland

Age of solicitors in Queensland

0

100

200

300

400

500

600

700

800

900

1000

784

896874

903

2009200820072006

0

250

500

750

1000

1250

1500

1750

2000

70+65-6960-6455-5950-5445-4940-4435-3930-3425-29<24

Gender of solicitors practising in Queensland

Male 4,655

Female 3,545

Membership Total: 10,000

Honorary Members 23

Complimentary Members 56

Student Members 1602

Associate Members 538Members

7,781

Practisingcertificatesissued Total: 8,252

Statistics collated by the Membership and Records Departments illustrate the composition of QLS members based on age, gender, geographical distribution, fieldofpracticeandmembershipstatus.ThenumberofPracticingCertificatesissued and number of Admissions to Practice in 2008 – 2009 are also illustrated (right and below).

Conditional 2,090

Employee 3,598

Unrestricted Principal

2,496Restricted Principal 4

Volunteer 14

Restricted Volunteer 28

Limited Principal 22


Geographical distribution of solicitors in Queensland

Status/Field of solicitors in Queensland Breakdownof‘other’bystatus/field

0

500

1000

1500

2000

2500

3000

3500

4000

OtherBrisbane City

39493828

Towns

ville

South

Brisba

ne S

uburb

s

Sunsh

ine C

oast

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/Sou

th Wes

t

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Centra

l Qld

Bunda

berg

0

100

200

300

400

500

600

700

800

900

1000

51

108

211

60

321

30

846

32

112134 120

345

32

96

31

323

618

264

3955

Breakdown of ‘other’ by geographical distribution

OtherEmployedSolicitor

0

600

1200

1800

2400

3000

3600

4200

4800

5400

6000

3615

5563

Volunte

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citor

Acade

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Cost A

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Commun

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Govern

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Govern

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ILP Le

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ILP Le

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Main)

ILP N

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Inters

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Not Prac

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Partne

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Retired

Sole P

ractiti

oner

Studen

t

Univers

ity Le

cturer0

100

200

300

400

500

600

700

800

900

1000

3361

9

175

797

12

364

4484

18

164

26

289

238

703

965

69

64356

259

169

35

988

5818

78



In late 2008, QLS commissioned targeted member market research, to obtain some morespecificfeedbackonourmembers’understandingofourcurrentofferings, to support us to identify how we might improve our existing services and to provide information about possible new ones.

Member Services – An Overview of Key Activities and Outcomes

We held a planning day on which the Council, management and staff discussed expectations and issues of importance, and set up a teamwork approach. Based on this information, the research focused on:

What stakeholders know and appreciate about QLS and its services•

What feedback can be obtained to aid service design/delivery (including packaging), communications, pricing and •positioning decisions

What are the key demographic, behavioural and attitudinal characteristics that can help QLS better understand •groups and their main needs.

TheresearchwasconductedbyDiMarzioResearchinearly2009,andIwasgratifiedthat630membersparticipatedin the survey, through phone and personal interviews. We received the report in May 2009.

Generally, our results are very strong, particularly in the following areas:

QLS Market Research – Opinion of Vision Dimensions1

0 10 20 30 40 50 60 70 80 90 100

QLS keeps members up to date with needed information

QLS will remain relevant to members

QLS understands the needs of our members

QLS is the leader of the legal profession inQueensland and is an organisation I like to belong to

QLS facilitates standards of professional and ethical conduct

QLS is a member-oriented body

QLS upholds the rule of law for the protection of the community

QLS advocates members’ rights

QLS promotes, supports and protects members’ interests 82%

79%

83%

82%

93%

almost 80%

81%

91%

% agree

83% ratepositively

statement % agree

1. Di Marzio Research Pty Ltd, Part 1: Market Test. Quantitative Market Research, Study No. 08/10/1311(b), May 2009

Additionally, through other research information, QLS rated in the top five associations on responsibility for ethical matters.

However,therearefivekeyareasonourreportcardthatindicate we need to do more work. They are in the following categories:

consistency of our member service; •

improved services required for particular segments •of our membership;

more demonstration of practice management and business •development support;

website redevelopment for content relevance, ease of use, •design and functionality; and

more targeted communications. •

Some of these issues may require new service developments, and certainly some process improvements, but many of them are because members simply don’t know about all of our services, which supports us adopting a strategy of improving and targeting our communications.

Participating members have provided a lot of very valuable information through this research which will serve as our reference in prioritising the solutions to the issues raised, andinformingthefurtherdefiningofourStrategicPlanintothe coming years. This will include scoping the business requirement for an IT platform to support and service member needs.

The key to us becoming a stronger member organisation is to ensurethatwemeetourmembers’stateddesireforaffiliationand information.

Our valued servicesQLS continues to make substantial and important submissions on a range of issues. I acknowledge and thank the members of Sections and Committees for their valuable contributions to these activities. Our CLE, Specialist Accreditation and Professional Development services are some of the most highly regarded in Australia. Again, many members contribute to both the content and delivery of many of these sessions, and rural and regional members can attend many of them via our video-conferencing.

The QLS-Vincents Symposium was a notable success again this year, with increased numbers, despite the global economic situation.

More than 1200 members renewed their membership on line this year, a big increase on last year. We hope to improve further the process, and encourage greater participation next year.

More than 1200 members renewed their membership

on line this year.



Central Queensland Law Association (CQLA)In January 2009, Lance Rundle became President of the Central Queensland Law Association (CQLA), taking over from the previous President Nici Schmitt.

The CQLA held its annual ten CPD-point conference at Capricorn Resort north of Yeppoon in November 2008, with attendees including Chief Justice Paul de Jersey AC and Supreme Court Justice McMeekin plus over 90 solicitors and barristers. The event was a great success. The CQLA conference will be held again in 2009 from 16-18 October at the Capricorn Resort.

A school debating competition was held in August 2008 and July 2009, with schools from within the Central Queensland region invited to participate in debating legal topics in the Supreme Court before adjudicators who included: Justice McMeekin of the Supreme Court, Magistrate Hennessy, Magistrate Baldwin and RichardPointing,SeniorProsecutoroftheOfficeoftheDirectorof Public Prosecutions.

The debates provided students with an opportunity to work with a local solicitor, get a feel for speaking in a court room and meet members of the Judiciary. In 2008 Nici Schmitt visited high schools in Central Queensland to discuss study and career options in law. Lance intends to follow her lead in 2009.

GladstoneThe Gladstone Law Association continued to be a productive and relevant force in its region, maintaining a focus on local matters and supporting its members. The association met in alternate months and held a dinner in May 2008.

Some local matters of interest that received consideration during the year included:

OfficeofStateRevenuereductionofstaff•

Section 24 of the • Legal Practitioners Act

Fly-infly-outmagistrates•

Titlesofficepresentation•

Pro-active support for a CLE seminar at Gladstone held on •19 February 2009

Matters to be raised at Convocation for District Law presidents•

Loan irregularities - referred to QLS•

Bossichix v Martinek•

Section 365• PAMDA

OfficeofStateRevenuein-housestampingmatters•

Volume of matters in the magistrates court•

QLS school lectures for local high schools•

Committee formed for a Gladstone seminar with respect •to PAMDA

Blue card requirements if existing school groups were hosting •work experience candidates.

In an effort to tailor the CLE Gladstone seminar held in February to meet members’ needs, the program was carefully designed through extensive collaboration between the Association and QLS programmers. It was well supported by members who have indicated a preference for having a local, annual CLE event in February each year.

Townsville District Law Association (TDLA)TheTDLAhascontinuedtoincreaseitsprofileamonglocalpractitioners and third parties, and the committee is continuing to establish itself as the liaison point between the Townsville legal profession and Queensland Law Society (QLS), the courts, the James Cook University (JCU) Law School, community organisations and our individual members.

QLS Regional Snapshot

Members throughout Queensland participated actively in their legal communities and District Law Associations (DLAs) during the year. Some highlights of the events, meetings and discussions that informed and shaped 2008 – 2009 for regional practitioners are reported on below.

Opening Ceremonies conducted by Attorney-General Kerry Shine, 19 February 2009.1.Mareeba Courthouse – traditional smoking ceremony – local indigenous dancers; 2. unveiling the plaque – Mareeba Courthouse; 3. new Mareeba Courthouse; 4.openingofLegalAidofficeTownsville(L-R) Kerry Shine (Attorney-General), Jaquie Palavra (Townsville office Senior Solicitor), Margaret O’Donnell, (LAQ board chair) and Jenny Hardy, (CEO).


The TDLA held numerous social functions for members and commenced the publication of a monthly newsletter which receives input from a wide range of sources including the Courts, community groups, QLS, Practical Legal Training providers, individual members and other government departments, and provides the TDLA with a simple platform to disseminate information to members.

The TDLA has continued to assist members with their professional development requirements by coordinating a CPD DVD library as well as lobbying for and coordinating CPD seminars.

The TDLA has further developed its relationship with the JCU Law School. Representatives of the TDLA and the JCU Law School meet regularly to discuss issues of mutual interest. The TDLA was invited to provide input into the development of the JCU Law Degree and JCU students attended a number of legal profession functions this year.

Annual General MeetingGerard Meade stepped down as President, Joanne Meade stepped down as Vice-President and a vote of thanks was

extended to both for their tireless involvement with the TDLA. Local practitioner Patrick Sutton of Mackey Wales Law retired after many years associated with the TDLA. A new committee was elected for the 2009/10 year, now led by President Angela Lowe.

The new committee hopes to continue with the aims of the 2008/09 committee in representing and assisting members of the local legal profession, bringing members of the profession closer together and continuing to develop the relationship with the JCU Law School.

Other noteworthy events for regional members included the opening of a new Courthouse in Mareeba and a new Legal Aid OfficeinTownsville.Additionally,TheLawCouncilofAustralia,in association with its constituent bodies – including QLS – conducted a survey of lawyers in regional, rural and remote Australia – highlighting many of the issues faced by these practitioners.Itisanticipatedthatthedetailedfindings in the report will be used to improve access to legal services for community members and the ability of practitioners to provide them.

47th Annual Vincents’ Symposium667 delegates, speakers and sponsor representatives attended the 47th Annual QLS Vincents’ Symposium at the Brisbane Convention and Exhibition Centre on 27 – 28 March 2009. The comprehensive program of over 60 sessions was developed in collaboration with the dedicated QLS Specialist Accreditation Committees. Delivered by Queensland’s leading legal experts and an impressive array of interstate and international speakers, the theme of ‘Challenges’ underpinned diverse discussions on access to justice and human rights, navigating the current economic climate and ‘Climbing your own Mt Everest’ in practice, delivered by keynote speaker Cheryl Bart.

Delegate feedback – I believe the entire Symposium was both well organised and executed with the topics being relevant to daily practise and well delivered by the speakers.Douglas Stockley, Stockley Furlong

Overall it was well organised and had a good variety of interesting topics. A few times it was difficult to decide which presentation I would attend.Bruce Provan, Harrington Family Lawyers

Symposium: Brisbane. Gold Coast. North Queensland

Bringing Symposium to the regionsIn 2008/2009, the Queensland Law Society held two successful regional Symposium roadshows in Cairns (Palm Cove, 17-18 October 2008) and the Gold Coast (22-23 May 2009), the two largest regional membership hubs. The objective was to provide regional members with the opportunity to attend quality, cost-effective, local conferences without incurring the time and expense associated with traveling to Brisbane to meet their professional development requirements. Registration was offered at a subsidised rate, enabled by the support of the Queensland Law Foundation and vital event sponsorship.

Delegate feedback – Inaugural QLS Far North Queensland Symposium

Overall, a very successful conference with a diverse and relevant series of presentations.I enjoyed the conference, the topics were interesting and as I am new to Cairns it was a great way to meet other practitioners.

2nd Annual QLS Gold Coast SymposiumVenue, organisation, length of presentations, presenters – it was really excellent this year.The social networking opportunities including the welcome drinks and dinner were great.

667 delegates, speakers and sponsor representatives in at tendance

1. Marcin Lazinski, Plass Lawyers, Fiona White and Saran Kaur, Frank Carroll Solicitor at Symposium, March 2009

2. Dr Cheryl Bart, Keynote Speaker, Symposium, March 20093. Joanne Browne of Arthur Browne and Associates, Lucy Cradduck of Rimmer Lawyers, Nicole

Dinnen of the Transport Accident Commission, and Pru Connolly of Quinlan Miller & Treston.4. Symposium Program, March 20095. North Queensland Regional Symposium Program6. Gold Coast Regional Symposium Program


Our Goal is:A strong, viable, independent, •representative professional membership organisation

Acknowledged publicly as a major •contributor to discussions on legal matters

A vital organisation that engenders •membership participation

As it is the driver for all strategic plans, •QLS needed to evolve its strategic planning process as it is critical that QLS has a concise, commercial plan which incorporates and drives strategic goals in order to deliver on its commitment to members.

A key focus implementing this plan •is ensuring all Society staff take responsibility for the quality of service delivery. This service ethic will be demonstrated through the day-to-day activities of each staff member and how this contributes to the overall goals and vision of the society.

In order to achieve our core values, •purpose and brand promise to our members, QLS adopted a balanced scorecard model which focuses on developing strategies around:

Financial:Whatarethefinancialgoalsof the organisation and how do we meet stakeholder expectations?

Membership: What are the needs and expectations of members?

Processes and Systems: What systems do we need to enable us to operate a sustainable business that is meeting our strategic goals?

People and Resources: What culture and environment do we need to enable QLS (our people) to achieve our strategies? What resources do we need to deliver on our business model?

Following a lengthy process of strategic planning QLS embarked on translating strategies to one year targets and then into actions for each quarter which were comprised of projects. Over the last year QLS has been delivering on strategically linked projects.

Strategic Plan and Organisational Alignment

The Society’s new strategic plan was adopted by the QLS Council on 29 May 2008, came into effect on 1 July, and was officiallylaunchedtoQLSstaffon30July.

QLS – Organisational Chart

The QLS Brand Promise:

QLS will represent and meet its members’ needs.

Departmental Reports

As the practice of law has become more specialised, so too has the role of the Society in meeting the dif ferent needs of its members.

It should not be forgotten that the members truly make up the QLS. The provision of improved benefits to members is constantly being assessed and explored.

Advocacy – Sections and CommitteesIn partnership with the Sections and Committees and the Legal Practice Consultant, the Advocacy team has achieved the following successes:

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Submissions 1990–91 to 2008–09

The 2008-2009 year has seen a record number of submissions made to government and other entities andasignificantincreaseinthenumberofnoticestomembers advising of developments, as indicated in the following tables.

At the Society’s instigation and in concert with the Society, •the LCA lead advocacy to receive an exemption from the Wholesale Deposit Guarantee Charge for solicitors trust accounts with balances over $1 million (potentially saving Queensland practitioners $1.5 million per annum)

Adoption by the LCA of the Society’s Anti-Money •Laundering / Counter Terrorism Advance Guidance as a national guidance document

Suncorp reversing its regional property sale settlement policy •and recommencing settling outside of Brisbane

the Registrar of Births, Deaths and Marriages implemented •a dedicated email service for practitioners to expedite theirrequestsforcertificatesandspecialidentificationarrangements for solicitor applicants

An increase in interview room facilities and an •ongoing review of the facilities at Arthur Gorrie Correctional Centre

QCAT legislation was narrowed in relation to representation •byunqualifiedadvocates

A commitment from the Government to review the • Property Agents and Motor Dealers Act to provide much needed reform in this major area of practice

Changes to the new Supreme and District Court •plans to accommodate face-to-face lawyer client confidentialinterviews

Changes to telephone interception legislation to require •involvement by the Public Interest Monitor;

Change to the • Oaths Act and Uniform Civil Procedure Rules topermitaffidavitstobetakeninforeignjurisdictions,and

Adoption by the LCA of the Society’s position regarding •the Model Spent Convictions Bill, which position was recommended to the relevant Commonwealth Parliamentary Committee.

Results Overview

2008 – 2009 2007 – 2008

QLSUpdatenotices,NewsflashandProctor articles produced 168 82

Policy Submissions sent 134 113

Consultative events attended 84 66

Section / Committee meetings held 122 116

Requests for comment received 113 107

Advocacy & AccountabilityMalcolm Hinton – Director



EthicsThe Society has also undertaken a concerted effort to raise awareness of ethical issues and to provide leadership and support to our members in this vital area of practice. In pursuit of these objectives, the Society’s Ethics strategy includes the provision of ethics education (with over 50 seminars delivered throughout the State), the proposed development of an Ethics Centre to provide leadership in this area and active participation in the development of a National Conduct Rule (as part of the National Legal Profession Project).

A new Ethics website is currently being developed. This service to members will be highly informative and interactive and will include sections on the solicitors conduct rule, frequently asked questions, a blog and a host of other resources.

Professional StandardsProfessional Standards comprises Complaint Investigations and Trust Account Investigations (which includes External Interventions and administration of the Fidelity Guarantee Fund (FGF) scheme). In the discharge of its statutory functions, it is assisted by the Professional Conduct Committee (overseeing the investigative functions of the area) and the Committee of Management (managing the FGF scheme).

During the reporting period, Professional Standards was responsibleforinvestigating473complaintsandfinalised310 investigations. The Legal Services Commissioner made decisions in respect of 245 recommendations made to him by the Society. On all but three occasions (less than 1.5 per cent), the Commissioner agreed with the Society’s recommendation as to whether disciplinary action should be taken. In each of those three instances, the Society recommended that disciplinary action be taken but the Commissioner decided to dismiss the complaints because he considered it was not in the public interest to take disciplinary action.

The Trust Account Investigation team continues to provide assistance to members by providing guidance concerning implementation of practices and procedures that represent best practice in relation to the keeping of the trust accounting records. The team received approximately 2,400 calls from law practices and 900 calls from external examiners and completed 117 audits during the year.

Legal Practice ConsultantThe Legal Practice Consultant (LPC) continued to provide practice management advice and support to members through a variety of activities. These included seminar presentations throughout the State and the development of fact sheets and guidance materials on ‘Practice Structures’, ‘Supervision’, ‘ClientService’,‘Costs,Billing&Profitability’andappropriate

management systems for ILPs and MDPs. These materials are available to members on the Society’s website.

The LPC also revised the Society’s application to the Professional Standards Council (PSC) for approval of a scheme to cap the liabilities of members, which was submitted in December 2008. The Society is currently working with the PSC and other Law Societies to ensure consistency between the proposed Queensland scheme and current or proposed schemes in other States. Subject to the PSC’s determinations, the Society anticipates implementing its scheme from 1 July 2010.

Dispute Management CentreThe DMC continues to be responsible for:

managing and promoting the activities of the Society in its •role as an Authorised Nominating Authority (ANA) under the Building and Construction Industry Payments Act 2004;

accrediting, managing, administering, and promoting •the activities of the Society as a Recognised Mediation Accreditation Body (RMAB) under the Australian National Mediator Standards; and

responding to requests for the appointment of experts, •arbitrators and valuers.

Legal Practitioners Admission BoardThe Society continues to provide administrative support to the Legal Practitioners Admission Board through the provision of personnel, accommodation, IT and support services.

The Society is a ‘public authority’ for the purposes of the Public Records Act 2002 (the Act) and maintains its records in accordance with the requirements under that Act. The Society also maintains its own Queensland Disposal Authority Number (QDAN) which has been approved by the State Archivist for the destructionofrecords.TheOfficeofGeneralCounselmanagesthe Society’s destruction records and logs in accordance with the obligations under the Act.

Record KeepingThe Society is a ‘public authority’ for the purposes of the Public Records Act 2002 (the Act) and maintains its records in accordance with the requirements under that Act. The Society also maintains its own QDAN which has been approved by theStateArchivistforthedestructionofrecords.TheOfficeofGeneral Counsel manages the Society’s destruction records and logs in accordance with the obligations under the Act.

The Society is currently reviewing its QDAN and its record keeping practices to ensure compliance with the Act and with its obligations under the Legal Profession Act 2007.

The Society’s focus has been on leading the profession and being recognised as the ‘voice of the profession’. It has achieved this through advocating for, and representing, members’ interests and alerting members to developments as they happen.

Photo captions1. Anti-Money Laundering and Counter-Terrorism Financing Reforms guide produced by Giles Watson and Matthew Dunn; 2. Trust Accounts Workshop brochure – February 2009; 3. Ethics Committee at Law Society House; 4. Patrese McVeigh, Administrative Assistant, Advocacy and Accountability; 5. That Ethics Guy – Neil Watt


Finance OverviewWhile the group is reporting a loss for the year of $8.997m through the income statement, net assets increased $5.879m.

Attheendoftheyear,unrealisedlossesonfinancialassetshavebeenreportedintheincomestatement. This is a change from prior years where unrealised investment movements were recorded in the fair value reserve in the balance sheet. The income statement includes $9.8m of losses which were included in the balance sheet in the prior year. This movement is a disclosure reallocation only.

The movement in net assets is represented by:

Parent Entity$’000

Insurance Scheme

$’000Consolidated

$’000

Reported surplus / (loss) 354 (9,351) (8,997)

Unrealised investment losses in prior year balance sheet - 9,815 9,815

Adjusted surplus 354 464 818

Revaluation of Law Society House 5,061 - 5,061

Movement in net assets 5,415 464 5,879

TheOfficeofGeneralCounselprovidedin-houselegaladvicetotheCouncil,ChiefExecutiveOfficerandstaffonabroadrangeofissuesaffectingtheSociety’soperations,commercialactivities, discharge of its public functions and minor litigation.

Inaddition,theOfficeoversawthedevelopmentofasupplementarysubmissiontotheAustralianSecurities and Investment Commission (ASIC) in further support of an earlier LCA Application seekingpermanentrelieffortheSocietyandLexonfromthefinancialservicesregimeoftheCorporations Act 2001 (Cth). In May 2009, the Society was advised that ASIC had determined to grant permanent relief to both entities, and the relevant Class Orders were issued on 14 July 2009.ThisrepresentsasignificantcostsavingtotheSociety,Lexonandmembers.

Office of General CounselMalcolm Hinton – General Counsel

FinanceAnthony Walduck – Group Chief Financial Officer

The consolidated results include the Society’s membership activities, insurance activities (Lexon Insurance Pte Ltd and Law Claims Levy Fund), and the regulatory responsibilitiesitcarriesoutunderlegislativerequirements.Thefinancialstatementsin conjunction with the departmental reports provide a detailed overview of the Society’sresultsandfinancialposition.


Thekeyfinancialhighlightsfortheyearinclude:

Parent entity, Queensland Law Society IncorporatedAn operating surplus of $354, 000 was achieved. The departmental reports provide detailed analysis of the performances for the respective areas. The key movements from the prior year include:

an increase in membership fees from $350 to $360 combined •with a growth of over 300 members increased membership revenues by $185,000

membership services and events income outperformed prior •year, but was largely offset by increased costs:

Seminar income grew $240,000, offset by additional costs -of $120,000

Specialist Accreditation, PMC and resources income -decreased $45,000, with an increase in costs of $40,000

sponsorship income increased $60,000 with the -introductionofadedicatedsponsorshipofficer

other membership functions decreased $95,000 (net of -expenses), largely due to a fall in Proctor advertising combined with increased distribution costs

investment income fell $130,000, largely due to falling interest •rates

additional consulting costs (which include professional fees) •largelyrelatingtorefinementstostrategicplanningandorganisational realignment.

increased information technology spend due to the •outsourcing of management for half the year offset by a reduction in hardware, software and project expenditure.

additionalstaffingcostsof13.8%comprising:•

wage indexation -

market adjustments to a number of positions following a -salary review performed by Mercers

while staff numbers remained constant at period ends, the -prioryearincludedfivestaffwhocommencedtowardtheend of that year. The full impact of the new staff occurred in the current year. There were also three additional staff for the majority of the year. At year end, there were 97 staff members or 92 full-time employees (FTEs). Staff turnoverduringtheyearequatedto16.5%.

We had a revaluation of Law Society House which took effect from 30 June 2009. Even with the fall in property market values, an overall increase of $5,061,000, was booked to the asset revaluation reserve. During the coming year, Law Society House willundergoitsfirstmajorrefurbishment,withanexpectedcost of approximately $5.5m (prior to any funding grants). It should be noted that the depreciation which has been charged each year has built capital reserves to allow for this capital expenditure. In May 2009, we purchased level three of Law Society House for $4.5m.

Insurance Scheme (comprising Lexon Insurance Pte Ltd and Law Claims Levy Fund)The insurance scheme reported a loss of $9.4m in the income statement. As mentioned above, $9.8m of investment losses were reported in the prior year’s balance sheet. Adjusting for this accountingreclassification,theresultwouldhavebeenasurplusof $464,000.

As in the 2007/08 year, 2008/09 again proved to be a year of poor investment returns. Taking into account actual distributions and market movements for the year, Lexon returned negative $1,243,000 on an average of funds under management of $73,649,000 (average of month end balances); the Law Claims Levy Fund returned negative $695,000 on average funds under management of $34,614,000 (average of month end balances), resulting in returns of -1.7 per cent and -2.0 per cent respectively. In light of the prevailing economic conditions, these results were better than may have otherwise been achieved, as thelosseswereminimisedasaresultofthegroupsignificantlyreducing its equity exposures (for cash) through active management of the portfolio early in the 2008/09 year.

The Audit and Investment Committees remain actively involved inreviewingandimplementingfinancialpolicytoensurethe Group continues to be managed responsibly. Part of that process includes regular reviews of the composition of investment allocations which are determined with the assistance of investment experts. The scheme has a conservative investment mandate which targets 70 per cent of investment balances to be in ‘income securities’ (including cash) with only 30 per cent in equities and property. At year end the scheme held in excess of 70 per cent in income securities.

Claims are recorded in the accounts at discounted values (ie presentvalueofexpectedfuturecashoutflows).Asaresultofthesignificantfallsinthecashrates,thediscountrateforthe 2008/09 year fell from 7.8 per cent to 4.6 per cent. This compares to the 2007/08 year where discount rates increased from 6.8 per cent to 7.8 per cent.

The scheme’s greatest claims exposure relates to movements in discount rates. While the 2007/08 year had an increase in the discount rates resulting in a favourable discount rate adjustment (reducedclaimsexpense),thesignificantfallindiscountratesin 2008/09 has resulted in an unfavourable discount rate adjustment (increased claims expense) as a result of prior year’s discounts reversing. Given the scheme is managed with a ‘stop loss’ policy, movements on an undiscounted net basis are in line with expectations.

The scheme continually works with its actuaries to determine appropriate capital levels which ensure solvency levels are met at all times. This is critical to the long-term viability of the scheme and its capacity to deal with potential changes in reinsurance and other costs, so that the full effect of these changes does not need to be passed on to members.

Evenafterthesignificantshocksoftheyear,theschemeremains in a robust position.

Overseas Travel Expense for FY09

Name Position Destination Reason for travel AmountMegan Mahon President

Kuala Lumpur Law Asia Conference 41,208.95 Ian Berry Deputy President

Peter Carne CEO

Megan Mahon President USA / Japan / Vietnam Study Tour 23,842.05

Ian Berry President Hong Kong Legal New Year Conference 14,868.39

Megan Mahon PresidentFiji Fiji Law Society 7,669.48

Raoul Guides Council member


Member CentralPeter Lyons – Director

Thegrowthoftheprofessioninthelastfiveyearshascreatedunique challenges for QLS in its goal to meet the professional, educational and social networking requirements of a changing membership. For example in 2004, Queensland Law Society had total membership of 6,746. In 2008, membership of the Society totalled 9,435, an increase of some 39 per cent. The challenge for the Society has been to ensure resources are targeted to guarantee member’s gain value for their membership subscription, whether they are a junior practitioner, associate, director or partner of a law practice. Equally, in the last two years, QLS has acknowledged the importance of engaging the practitioners of the future by introducing of student membership for tertiary students.

As the practice of law has become more specialised, so too has the role of the Society in meeting the different needs of its members. The desire of QLS to better understand its members, their needs and expectations of QLS is best illustrated in its commitment to undertake targeted market research of the profession to ensure the delivery of a diverse range of relevant member services. This market research sought the assistance of members in undertaking a number of surveys and focus groups. The results of such market research has reinforced my existing view that QLS must maintain constant engagement with the profession to ensure the most suitable member services are provided to the member.

Recent research on professional associations clearly suggests thetraditionallyheldviewthat‘onesizefitsall’isoutdatedandadvances in communication, technology and expectations of members have changed. The challenge for QLS is to ensure it is not left behind and that it develops services, support and products that are relevant to the individual practitioner.

Through the last half of 2008 the QLS Council, senior management and staff participated in an organisational alignment project. Organisations like QLS need to have dynamic systems and, like all other systems, they function best when their components are designed to work together smoothly and efficiently.Anychangeweintroducetoanorganisation,then,mustbealignedtofittheexistingsystem—ormustmodifythesystem to accept the change. The relationship between QLS and the value proposition of membership highlighted the need to ensure the internal delivery of services, support and products continued with the member being the ‘centre’ of such ongoing service.

With this delivery of targeted and valuable member services, support and products being central to ensuring engagement with the membership, a number of previously disparate services within QLS have now been grouped under the one department, ‘Member Central’. In recognition of QLS commitment to ensure members value their membership, Member Central will develop a fully integrated, member-focused approach to the development and delivery of the services to members. Member Central will bring together the following currently existing functions within the QLS:

Continuing Legal Education (CLE)•Professional Development (Specialist accreditation, •PMC and resources)Member relations (including CPD)•Client Relations Centre – including ethical advice•Ethics•Records•Marketing and Communications (including the Schools and •Community Education Service)Part of the services provided by Corporate Services•

1. Solicitors’ advertising campaign, Central Station, Brisbane2. Comedian Anh Do entertaining at the Family Law Residential, August 20083. Legal Aid Townsville lawyer Kulumba Kiyingi with Greg Johannesen of the Family Court4. Proctor - November 2008 edition5. Christmas breakfast with the Hon. Chief Justice Paul de Jersey AC6. Succession Law Conference, Crowne Plaza, Caloundra, October 20087. Proctor – May 2009 edition8. The Half Hour of Hamlet ensemble performing at the Young Lawyers Christmas party,

Law Society House, December 2008


Highlights of the 2008-2009 YearThe dedicated team at Member Central continue to provide relevant and cost effective services to QLS members. A snapshot of these activities is:

The Society’s Professional Development team continues to •provideafirstclass,relevantandcosteffectivecontinuinglegal education program to the profession. A 70 per cent increaseinsponsorshiprevenueforCLEisasignificantachievement in light of the economic downturn and the valued support of our sponsors is fundamental in the provision of

cost-effective CLE for our members. Over 6,000 practitioners and others attended 135 seminars and conferences throughout the State. The Society’s Symposium continues to grow and for the

firsttimeregionalsymposiumswereheldontheGoldCoastand North Queensland. The involvement of District Law Associations continues to assist the Society in its local program development. The success of the conferences is due, in part, to a continual review and implementation of topics and speakers (as suggested by members in electronic delegate feedback) directly into CLE programs, along with regular review of the detailed monthly Supreme Court Library research statistics.

Members continue to participate in peer assessment and •the mentoring of fellow practitioners through the specialist accreditation and practice management courses. The continued involvement of members in providing of their time and experience is greatly appreciated and is indicative of the value of QLS membership in that it provides a forum for members to give back to the broader legal community and assist in maintaining the high standards of the profession. It should not be forgotten that the members truly make up the QLS. Without your involvement in the affairs and services the Society provides, the essence of the Society and the people it seeks to serve is lost.

TheSocietyseekstoprovideworthwhilememberbenefits•to its members. The development and introduction of the Society’s recruitment service, Legalstaff.com.au, has been taken up by the membership and continues to provide an alternative method of recruitment. The provision of improved benefitstomembersisconstantlybeingassessedandexplored.WeseekyourfeedbackonthebenefitscurrentlybeingprovidedandthosebenefitsyouwouldliketheSocietyto provide.

To ensure that the Society continues to meet the needs of its •membersitundertookasignificantmarketresearchprojectin early 2009. The results of this market research will greatly impactonthedeliveryofmemberservicesandbenefitsinto

thefuture.Inparticular,theresearchfindingswill drive the way in which the Society seeks to engage its membership, ensure

that relevant services are communicated and delivered to the appropriate member segment and that ongoing research will be conducted to ensure member benefitscontinuetoberelevanttothemembers.

The QLS magazine,• Proctor, continued to be popular with membersandfinishedtheyearwithaprofit.Onceagainitis believed to be the only Australian law society magazine thatremainsprofitable.Memberscontinuedtosupporttheir magazine with a vast range of contributions. Market research results also showed that many members favour e-communications, which QLS has further developed and redesigned in the past twelve months to ensure members are informed quickly of breaking legal news and upcoming events in a format that is convenient and easy to access.

The Schools and Community Education Service supported •QLS members by improving and strengthening the services offered under the program; launching a dedicated website; developing a comprehensive program to maintain understanding of teachers’ needs in relation to legal education in the classroom; and increasing grant funding to continue promoting the law and legal profession in Queensland.

The ability of the QLS to provide timely and cost effective services, support and products to its members is vital to ensuring the relevance of the QLS to today’s practitioners. This has best been recognised by the creation of Member Central.

9. Doug Stockley, Rod Stockley and Vanessa Moyle, all of Stockley Furlong, and Michael Standish of Michael Standish Solicitors, Symposium, Brisbane Convention and Exhibition Centre, March 2009

10. Melissa Schembri, Home Sweet Home Conveyancing Solicitors, and Lucy Cradduck, Rimmer Lawyers Property Law Conference, Holiday Inn, Surfers Paradise, November 2008

11. Opening of the Law Year church service 12. QLS Immediate Past President Megan Mahon with John De Groot of Queensland Community Foundation –

QLS Charity of Choice13. Young Lawyers session, October 2008 14. Delegates at the Family Law Residential, Crowne Plaza, Royal Pines, Gold Coast, August 2008

This division is responsible for the functions of human resources, training, strategic planning support, organisational design and development, welfare health and safety, facilities and corporate services. Our focus is both internally and externally for members, implementing practices and processes that strengthen and enable QLS to be an outstanding membership organisation.

The team is proud to continue involvement with members through the publication of monthly Proctor articles – People and Performance and Wellbeing. The aim is to use our experience and networks to develop thought provoking, contemporary articles to assist our members to think broadly about the human perspectives of life and work.

LawCare is the QLS’ Employee Assistance Program (EAP) and is a specialist advisory service funded through QLS. These services are provided to all QLS members, their immediate family and support staff free of charge.

ThebenefitsofprovidingLawCareare:1. Reduce the number of negligence claims (LexonInsurancehasidentifiedhumanfactorssuch as stress and depression are a driver in 30 per cent of negligence claims). It can also be assumed that stress and depression are a major factor in complaints and poor service generally.

2. Provide practical assistance for managers in dealing with people issues.

3. Provide practical assistance to legal practice employees in theavoidance,identificationandtreatmentoflifeorworkstresses.

The ongoing management and relaunch of the LawCare program in response to member feedback was conducted by the HR team. Assure Programs was selected to provide this service.

Part of the Society’s vision is to assist members to conduct their practice profitably and efficiently. To be able to attain this vision, QLS is continuously searching for ways in which they can provide products or services that assist members to conduct theirpracticeprofitablyandefficiently.Theteamcontinuestosupport and monitor our online recruitment service.

LegalStaff.com.au was introduced as a leading-edge solution to provide legal professionals and employers with a cost effective system that semi-automates the recruitment process. Itallowsemployerstosourcequalifiedlegaltalentquicklyata low-cost and gives legal professionals the opportunity to confidentiallysearchforpotentialroles.

In response to member needs the team worked with Hays to develop and launch the inaugural Queensland Salary Survey. This survey was developed to capture information useful for our members when determining appropriate salary and benefitpackages.Twosurveyswererequiredtocapturethisinformation; one for employers (ie partners, human resources practitionersandofficemanagers)andoneforemployees.Thissurvey focused on segmenting Queensland at a level not done by current survey providers in order to provide more relevant information. Each year this survey will grow and expand. The report sits on the QLS website under For the Profession and can also be accessed from a direct link on the QLS home page.

The Society’s Call Centre is our frontline customer service team handling 23,940 calls from members seeking information or assistanceduringthepastfinancialyear.Afurther34,637callswere received from the public seeking solicitor referrals.

Leasing Premises for a Business, 4,694

Enduring Power of Attorney, 13,307 Making your

Will, 14,248

Motor VehicleAccidents, 4,433

Alternative DisputeResolution, 1,259 Buying & Selling a

Residential Property, 7,617

Buying & setting up asmall business, 5,448Injured at work,

3,383

Succession 7%

Building/Construction, 4%

Residential Conveyancing 7%

Criminal 11%

Civil Litigation 18%

Family 19%

IR/Employment 14%

Insurance 5%

Personal Injuries 11%

Medical Negligence4%

In excess of 4,900 referrals were given for matters concerning Civil Litigation, 4,961 Family Law referrals and a further 3,584 referrals for IR/Employment Law matters.

The top ten referral areas are :

Information brochures:In excess of 54,000 information brochures were issued to members, community health centres, hospitals and aged care facilities. A breakdown of the individual brochures dispatched can be seen below.

The purpose of this division is to enable strategy through best practice organisational design, strategic development, excellence in customer service and the strategic management of human and environmental capital.

People & Organisational PerformancePatricia Linn – Director



In last year’s Annual Report, the Society announced some projects in the area of Information Systems. Theprojectsidentifiedwere:

Server Hardware Acquisition and •Implementation

This project has been completed. This -project saw the expansion of our server room to allow additional space, acquisition and implementation of new server hardware, installation of independent and redundant air conditioning and uninterrupted power supply (UPS) support for our environment. This project has provided improved stability, redundancy, and future growth capacity for QLS’s information system needs.

Citrix/Internal IT Environment•

With the hardware implementation project, -the Society’s internal usage of Citrix was upgraded to provide increased stability and scalability.

Website Stability and Member Login•

The Society executed a short term solution to -overcome stability issues with the Society’s external website. This has resulted in a significantincreaseintheavailabilityoftheSociety’s website. Longer term, the Society is looking at its requirements of its web presence and will be making moves to deliver greater functionality to you.

Work was also completed with a third party to -help resolve member login issues to the website.

Reliable Backup of Network•

New policies, procedures, software and -hardware have been implemented to ensure the reliability of the Society’s backups and the ability to restore such.

With a stable framework in place, the Information Systems department is now working on developing and executing its Information Systems Strategy with the goal of being an integral partner in the achievement of QLS’ overall strategic vision through the application of appropriate information systems to support the Society’s business needs.

Priorities for the Information Systems team and myself for the coming year include:

Refurbishment•

Supporting the Society’s refurbishment; the -Information Systems team will play a critical role in ensuring the delivery of improved facilities for members and a better work environment for QLS staff. A key goal is to complete the refurbishment with minimal downtime of staff and systems.

Web Presence•

In the coming year you will see the current -QLS website redesigned in both the look and feel of the site, as well as the implementation of a new information architecture to improve the logical grouping and navigation of content. This project is focused on implementing recommendations from an external information architecture specialist arising from a review of our current website design and structure.

Also in the coming year, you will see the -launch of a content rich Ethics website. Ethics is one of many rich topics under management at QLS. The development of the Ethics subsite will support our members in their ethical decision making and also inform the development of other rich topic areas of content for our members.

System Requirements Review•

QLS will undertake an internal review of its -requirements of its information systems with a goal of providing increased member services.

The outcome of the review will allow us to -strategically consider the suitability of our current information systems and the surrounding processes.

Key projects selected from the review -will focus on providing greater value to members.

I look forward to keeping you informed of our advancements.

The Information Systems department have had a very busy year in 2008/09, with a number of staff (including myself) joining the Society during the year.

Information SystemsScott Rowan – Director

website redesign • new information architecture • systems review


Under the Legal Profession Act 2007 and ancillary legislation, the Secretary’s responsibilities include regulatory obligations suchastheissuingofpractisingcertificatesandrelatedmattersdealing with Practice Management Course and Continuing Professional Development requirements, maintaining the roll of members, conducting Council elections, conducting the Society’s Annual General Meeting and liaising with Lexon Insurance Pte Ltd in respect of professional indemnity insurance matters.

The Secretary is the initial contact for the profession in respect of a wide range of issues related to practising law in Queensland including opening and closing of legal practices, sharing of receipts,sharingofpremises,certificatesoffitness,showcausenotices relating to convictions and bankruptcy and general practice requirements.

One of the main functions of the Secretariat is to provide assistance to the Society’s Council and Executive Committee in respect of Agendas and Minutes and co-ordinating meetings. The Secretariat has been assisted by General Counsel, Malcolm Hinton in providing advice to the Society’s Council.

The Records Section is a vital division of the Secretariat. It maintains the database of all Queensland Solicitors and is responsiblefortheissuingandrenewalofpractisingcertificates,certificatesoffitnessandmiscellaneousmattersinvolvingmembership/ records.

The statistics from the Membership/Records Department indicate as follows:

870 persons were admitted as legal practitioners in the •Supreme Court of Queensland during the year.

591 of those legal practitioners were issued by the Society •withcertificatestopractiseassolicitors.

Atotalof8,200practisingcertificateswereissuedduringthe•year being:

PractisingCertificatesIssued2008–2009 QtyPrincipalpractisingcertificates 2489

Restrictedprincipalpractisingcertificates 3

Unrestrictedemployeepractisingcertificates 3573

Restrictedemployeepractisingcertificates 2072

Limitedpractisingcertificates 21

Unrestrictedvolunteerpractisingcertificates 14

Restrictedvolunteerpractisingcertificates 28

The Records Section continues to report to the Society’s Secretary in respect of statutory and regulatory issues and, in particular,mattersrelatingtopractisingcertificatesandancillaryissues. However, the Records Section reports to the Director of Member Central, in respect of membership, administration and management issues as part of the Society’s Strategic Plan process.

The Secretariat has also provided administrative support to the Legal Practitioners Admissions Board, which is located at Law Society House. However, this support has recently been taken over by the Society’s recently established Advocacy and Accountability Department as part of the Society’s Strategic Plan process.

The Secretariat’s main achievements during the 2008/09 year were:

Organising the Society’s 2008 Annual General Meeting held •on 20 November 2008.

Organising the 2008 District Law Associations’ Convocation •held on 20 November 2008.

Organisingthe2009/10renewalofpractisingcertificates/•membership/professional indemnity insurance online and manual processes.

Assisting Lexon Insurance Pte Ltd in the organisation of the •2009/10 professional indemnity insurance for the profession.

Involvement in the FY2008/09 – FY2011/12 QLS Strategic •Plan process.

Liaising with the Society’s Marketing and Communications •Department and Membership/Corporate Services in arranging for membership kits for new members and practice kits for new law practices.

Liaising with the IT Department in respect of improvements •totheQLSwebsite,upgradingthepractitionerprofileprocessandupgradingtheonlinerenewalofpractisingcertificatesprocess.

It has been a challenging year for the Secretariat with both internalandexternalchangescontinuingtoflowfromthe legal profession reform process and the Society’s Strategic Plan process.

The Secretariat, headed by the Secretary, Bernie O’Donnell, provides compliance advice to the Society, undertakes numerous regulatory functions and maintains member records.

SecretariatBernie O’Donnell – Secretary

A total of 8,200 practising certificates were issued during the 2008/09 financial year.

Sections and Committees

QLS policy-focused sections and commit tees assist Council in leading the profession with expert advice and ensuring, through advocacy, that the voice of Queensland practitioners is heard.

They provide a forum for raising and solving problems encountered in practice, acting as a professional reference for members and contributing to professional development through articles, notices and QLS CLE seminars.


Access to Justice/Pro Bono Law SectionPat MullinsThe Access to Justice/Pro Bono Law Section is Chaired by Mr Bruce Doyle, Family Law Doyle Keyworth & Harris who recently succeeded the Section’s longstanding Chair Mr Pat Mullins of Mullins Lawyers.

Highlights:Focused on building stronger relationships and •information sharing between Legal Aid Queensland, Queensland Public Interest Law Clearing House, National Pro Bono Research Centre and the Queensland Law Society;

Significantlyincreasingitsmembershipinabidtomove•the Section towards its new strategic focus for 2009/10;

Began planning for the National Access to Justice •Conference to be held in Brisbane in mid 2010; and

Considered issues such as the CMC review of police •move on powers, cost recovery in pro bono litigation and access to the Queensland Civil and Administrative Tribunal.

Accident Compensation/Tort Law SectionGerry Murphy AMThe Accident Compensation/ Tort Law Section is Chaired by Mr Gerry Murphy AM of MurphySchmidt Lawyers.

Highlights:Submitted comments on the draft • Victims of Crime Assistance Bill 2009 calling for appropriate levels of common law compensation for criminal injuries victims;

Maintained advocacy within the Law Council of Australia •working group regarding the harmonisation of workers compensation legislation to ensure that a national position includes common law claims and appropriate aspects of the existing Queensland system;

Attended the annual actuarial presentation for the •Compulsory Third Party Insurance Scheme and advocated directly to the Motor Accidents Insurance Commission Board on behalf of practitioners regarding increases in premium levels; and

Met with Disability Services Queensland regarding section •220 of the Disability Services Act 2006 as it relates to the impact of compensation payments on the allocation of disability services funding.

Banking and Finance Law CommitteeRandal Dennings The Banking and Finance Law Committee is Chaired by Mr Randal Dennings of Clayton Utz.

Highlights:Continued national leadership in •advocacy on the Commonwealth Personal Properties Securities legislation;

Prepared in exceedingly tight timeframes substantive •responses to the proposals for National Consumer legislation and regulation of credit providers; and

Contributedabankingandfinancerelatedarticleto•Proctor in every edition;

Maintained a strong high level liaison with ASIC and the •OfficeofFairTradingwithrespecttocreditproviders;and

Examinedcloselymortgagoridentificationrequirementsin•property transactions.

ADR SectionPhil ScottThe Alternative Dispute Resolution (ADR) Section is Chaired by Mr Phil Scott of Crouch & Lyndon.

Highlights:Enabling the QLS to meet •requirements and formally certify as a Recognised Mediation Accreditation Body on 1 August 2008 under the Australian National Mediators Standards (NMS);

Implementing National Accreditation of QLS mediators - •43 members accredited;

Representing the QLS in May 2009 and making •numerous submissions on implementing the Standards to the National Mediator Accreditation Committee (NMAC);

Participating and contributing to two CLE seminars and •three workshops that have enabled mediators to accredit under the NMS;

Providing a submission to the Supreme Court on abolition •of Court Register of Mediators and Case Appraisers;

Liaising with QPILCH on obtaining Nationally Accredited •Mediators for their panel; and

Considering and informing members on aspects of •ADR in QCAT.


Business Law SectionDavid GraceThe Business Law Section is Chaired by Mr David Grace of Cooper Grace Ward Lawyers.

Highlights:At Business Law Section instigation •and in concert with QLS locally, the LCA leads advocacy to receive an exemption from the Wholesale Deposit Guarantee Charge for solicitors trust accounts with balances over $1 million (potentially saving Qld practitioners $1.5 million per annum);

Business Law Section contributes to • QLS Anti-Money Laundering / Counter Terrorism Advance Guidance adopted by LCA as national guidance document;

Member update session conducted in November 2008 on •Anti-Money Laundering and Counter Terrorism Financing laws development; and

Section coordinated several committees and reinvigorated •theRevenueLawCommitteetoadvocatewiththeOfficeof State Revenue on behalf of members.

Children’s Law SectionGraham QuinlivanThe Children’s Law Section is Chaired by Mr Graham Qunlivan.

Highlights:After sustained advocacy •Qld Government commits to decriminalise altruistic surrogacy in Queensland;

Made comprehensive submissions to the Crime and •Misconduct Commission’s review of police move-on powers which were endorsed by Logan Youth Services;

Maintained advocacy to government regarding adoption •which aided in the formation of the Adoption Bill 2009;

Formed a dialogue with the government regarding the •appointment of more Children’s Court Magistrates;

Made comprehensive submissions regarding model non-•consensual genetic testing offences, some of which were supported by the Law Council of Australia; and

Held a well attended practical workshop for all •practitioners regarding bail and sentence reviews for young people.

Construction and Infrastructure Law CommitteeRoss WilliamsThe Construction and Infrastructure Law Committee is Chaired by Mr Ross Williams of HWL Ebsworth.

Highlights:Conducting meetings in conjunction with the Construction •Section of the Law Council to improve and promote communication between the bodies;

Providing a representative on the Building Industry •Consultative Group which reports to the deputy premier on building issues – recently, pool safety regulations were considered;

Participating and contributing to CLE updates and •seminars; and

Internal review of QLS ANA adjudicator decisions.•

Company Law SectionRowena McNallyThe Company Law Section is Chaired by Ms Rowena McNally.

Highlights:Sits as both Law Council Qld Corporations Committee and •QLS Company Law Section;

Active participant in the organisation and running of the •very successful QLS & ACLA: Company Law and In-House Counsel conference;

Contributed to numerous national submissions at the Law •Council level relating to executive remuneration regulation proposals, the ban on short selling, the inclusion of margin loans in credit regulation reform, the CAMAC paper on schemes of arrangement and trading halts;

Established and maintained excellent relationships •with the ASX and ASIC. Senior ASIC staff including a Commissioner attended an early 2009 Section meeting and spoke about ASIC’s strategic realignment.

... numerous national submissions at the Law Council level relating to executive remuneration regulation proposals, the ban on short selling, the inclusion of margin loans in

credit regulation reform, the CAMAC paper on schemes of arrangement and trading halts.


Criminal Law SectionGlen Cranny

The Criminal Law Section is Chaired by Glen Cranny of Gilshenan & Luton Legal Practice, who recently succeeded the Section’s longstanding Chair Mr Sean Reidy of Carne Reidy Lawyers.

Elder Law SectionBrian HerdThe Elder Law Section is Chaired by Mr Brian Herd of Carne Reidy Herd Lawyers.

Highlights:Maintained advocacy to •government for appropriate reform of the Retirement Villages Act and inconsistencies in its operation with other property regulating legislation;

Wrote submissions to the Minister for Ageing regarding •the Age Care Complaints Investigations Scheme;

Maintained advocacy to the Minister for Tourism and Fair •Trading regarding the interplay between the Retirement Villages Act 1999 and Body Corporate and Community Management Act 1997;

Wrote a comprehensive submission to the Queensland •Law Reform Commission regarding issues of capacity in the review of Queensland’s Guardianship Legislation; and

Formed a working group to plan the Elder Law •Conference 2009 which was attended by 69 delegates.

EOL CommitteeTerry HutchinsonThe Equalising Opportunities in the Law Committee (EOL) is Chaired by Ms Terry Hutchinson of the Queensland University of Technology.

Highlights:Coordinated a successful •Indigenous Leaders Forum, in which various interest parties met to discuss the expansion of the Law Link Programme and ways in which the Legal Profession may better interact with and assist the indigenous community;

Evaluated nominees and selected the annual 2008 •Employer of Choice recipient, Carter Newell;

Involvement in a free member seminar for practitioners •regarding practice management in uncertain economic times, with a focus on recruitment and retention, managing workplace stress and depression in the legal practice;

Considered funding requests made by students from •various Queensland universities; and

Formation of a working group to consider the development •of guidance regarding best practice in employment, practice management and diversity issues.

Sean Reidy

Highlights:Drafting 40 submissions throughout the year, being 30 per •cent of the total submissions produced by the Society’s policy sections and committees;

Advocacy resulting in an increase in interview rooms •and ongoing review of the facilities at Arthur Gorrie Correctional Centre and other correctional institutions;

Successfully obtaining changes to new Supreme and •District Court plans, to accommodate an increase in face-to-facelawyerclientconfidentialinterviewrooms.

Successfully obtaining changes to telephone inception •legislation to require involvement by the Public Interest Monitor;

LCA adopted and recommended to the Parliamentary •Committee the QLS position regarding the Model Spent Convictions Bill proposed by Criminal Law Section;

Prepared lengthy and detailed submissions to the •review of Civil and Criminal Justice System undertaken by The Hon Martin Moynihan QC supporting the retention of committals.

Submissions to the Attorney General regarding judge •alone trials and majority verdicts of juries;

Strongly advocated, in conjunction with the Bar •Association, on issues regarding:

the issuing of non-association orders in the -foreshadowed anti-motorcycle gang legislation;

the review of the Excuse of Accident and Defence of -Provocation, including the introduction of a defence of battered persons;

the Queensland Law Reform Commission paper, -A Review of Jury Directions; and

Maintained a continual liaison on behalf of members •with Legal Aid Queensland and Queensland Corrective Services through regular participation in the Prisoners Legal Services Working Group and the Queensland Legal Assistance Forum.


Franchising Law CommitteeDerek SutherlandThe Franchising Law Committee is Chaired by Mr Derek Sutherland

Highlights:Committee developed an action •plan for activities in 2009/10 focusing on publications, submissions and specialist accreditation;

Closely monitored developments in the ongoing review of •the franchising code and conduct and compiled a detailed andsignificantsubmissiononthereformsproposedbytheJoint Committee on Corporations and Financial Services;

Maintained a liaison with the ACCC with respect to •franchising matters; and

Developing materials for the profession to assist solicitors •in complying with the technicalities of the franchising code of conduct.

Government and Corporate Lawyers SectionPatrick WedgeThe Government Lawyers Section is Chaired by Mr Patrick Wedge, Deputy Public Trustee, Department of Justice and Attorney-General.

Highlights:Hosted several wine & cheese evenings, offering •networking opportunities for government lawyers from a variety of departments to get to know each other, while at the same time listening to key note speaker/s on topics specificallyrelevanttothem;

Assisted with the programming of yet another successful •government lawyers conference; and

Involvedinencouragingandpromotingthebenefitsof•associate membership.

Industrial Law CommitteeAnne MilnerThe Industrial Law Committee is Chaired by Ms Anne Milner.

Highlights:The Committee considered existing delays in obtaining •anti-discrimination decisions in both State and Federal arenas;

Favourably assessed new workplace and industrial •relations legislation to ensure that rights for legal representation were maintained; and

Flagged issues for law practices when staff are employed •by a corporate service trust under the Commonwealth jurisdiction and a partnership under the State jurisdiction.

Family Law SectionJulie HarringtonThe Family Law Section is Chaired by Ms Julie Harrington of Harrington Family Lawyers.

Highlights:Maintained a continual liaison on •behalf of members with the Family and Magistrates Courts to identify and resolve systemic issues faced by practitioners;

Involvement in planning the 2009 Family Law Residential •to be held at the RACV Royal Pines Hotel in September;

Advocacy on behalf of practitioners regarding a number of •issues including:

the Family Law Amendment (De Facto Financial -Matters and Other Measures) Bill 2008;

the Family Law Court Review, - Improving Access to Justice: a better framework for the Federal Courts; and

the Joint Costs Advisory Committee’s 2009 Inquiry -into the Quantum of Costs for Legal Practitioners.

... a continual liaison on behalf of members with the Family and Magistrates Courts to identify and resolve systemic issues faced by practitioners

... monitored developments in the ongoing review of the franchising code and conduct and compiled a detailed and significant submission on the reforms proposed by


Litigation Rules SectionJustin McDonnellThe Litigation Rules Section is Chaired by Mr Justin McDonnell of Mallesons Stephen Jaques, who succeeded the Section’s longstanding Chair Mr Peter Eardley during the year.

Highlights:Successfully obtained a change to the • Oaths Act and Uniform Civil Procedure Rulestopermitaffidavitstobetaken in foreign jurisdictions;

Contributed to the Civil and Criminal Justice System •review conducted by The Hon Martin Moynihan QC regarding changes in the monetary limits of the civil court jurisdiction;

Prepared substantive comments and proposals in •response to the formation of QCAT, with particular regard to the setting aside of Costs Agreements;

Engaged in discussions with Queensland Courts •regarding the electronic setting down of matters and the electronic distribution of Supreme and District Court orders;

Submissions to the Law Council of Australia and Deputy •Registrar of the Federal Court of Australia regarding legal practitioners costs; and

Engaging the Attorney General regarding the ability of •firmstocontractoutofproportionateliabilitylegislation.

International Law/Relations SectionRussell ThirgoodThe International Law/Relations Section is Chaired by Mr Russell Thirgood of McCullough Robertson Lawyers.

HighlightsFacilitated session on models for a national charter •of rights at the QLS Symposium 2009 informing the profession of issues in this debate;

Conductedasignificantactionplanningprocesstodirect•the committee in the next two years;

Made various submissions to the negotiating teams for •the China and Japan Free Trade Agreements to improve access to those markets for Queensland practitioners;

Maintained advocacy with respect to the death penalty; •and

Madesignificantcontributionsto• Proctor, including features and headline stories.

Insolvency Law CommitteeRichard CowenThe Insolvency Law Committee is Chaired Mr Richard Cowen of Tucker Cowen Lawyers and is part of the Law Council of Australia

Highlights:Sits as both Law Council Qld Insolvency Committee and •QLS insolvency committee;

Advocated for a single jurisdiction for insolvency matters •flowingfromthereformsoftheFederalCourts;

Analysed and commented on the CAMAC paper on the •Sons of Gwalia decision;

Called for reform of Australia’s stringent insolvent trading •rules which incline directors to put their companies into administration too early; and

Identifiedissuesforgeneralcreditorswhenthe•Commissioner issues garnishee notices.

Intellectual Property and IT Law CommitteePeter BolamThe Intellectual Property and IT Law Committee is Chaired by Mr Peter Bolam of Bolam Lawyers who succeeded the Section’s previous Chair, Ms Jacquelyn Rigby-King of Rigby-King Lawyers.

Highlights:Conductedasignificantactionplanningprocesstodirect•the committee in the next two years;

Continued national leadership in advocacy on the •developing Commonwealth Personal Properties Securities legislation in conjunction with the Banking and Finance Committee;

Held a successful event entitled the ‘ABC of Innovation’ •Law, run as part of the CitySmart Festival which was well attended by the profession and the public;

Committee made submissions regarding the merger •of the general Federal Law jurisdiction of the Federal Magistrates Court with the Federal Court;

Committee made submissions regarding the extension of •the jurisdiction of the Federal Magistrates in trade mark and design matters; and

Ran a well-attended session at QLS Symposium 2009 as •part of the Business Law Stream.

the Joint Committee on Corporations and Financial Services


Planning and Environment Law CommitteeRussell BowieThe Planning and Environment Law Section is Chaired by Mr Russell Bowie of Minter Ellison.

Highlights:Through direct representation the Committee advocated •for better representation rights for practitioners building related tribunals;

Engaged government directly in the drafting of the •Sustainable Planning Bill 2009; and

In submissions the Committee commented on:•

proposals for the expansion of the jurisdiction of the -Building and Development Tribunal; and

Legal and structural issues in connection with -the Vegetation Management Regrowth Clearing Moratorium.

Practice Management and Development Law SectionRaoul GiudesThe Practice Management and Development Law Section is Chaired by Raoul Giudes of Giudes & Elliott who succeeded the previous Chair, MsAnnetteBradfieldofFoxBradfieldLawyers.

Highlights:Section received a number of new members with broad •experience to complement its existing capabilities;

Supported the ongoing development of practice •management guides by the Society’s legal practice consultant;

Considered in detail issues surrounding best practice •debtor management for legal practices informed by the decision of the Legal Practice Tribunal in LSC v Sing;

Continuing to explore a subsidised program of marketing •assistance to legal practices; and

Has endorsed a liberalisation of • Legal Profession Act restrictions on emailing bills.

Property and Development Law SectionPaul NewmanThe Property and Development Law Section is Chaired by Mr Paul Newman of Allens Arthur Robinson.

Highlights:Section contributed to 30 submissions or 22 per cent of •total QLS policy submissions during the year;

AftersustainedadvocacyQldGovernmentfinally•committed to review Property Agents and Motor Dealers Act for implementing reform;

Suncorp reversed its regional property sale settlement •policy and recommencing settling outside of Brisbane;

SectionmademanysubmissionstotheOfficeofState•Revenue about their Revenue Management System changes, some issues being raised in Parliamentary debate;

Continued engagement and made multiple submissions •regarding the proposed National Electronic Conveyancing System;

Advocated to government regarding the review of •Queensland’s Swimming Pool Safety Laws;

The Law Council of Australia adopted many of our •suggestions in their submission on minor Native Title amendments;

SustainedstrongliaisonswiththeOfficeofStateRevenue•and the Department of Energy, Resources and Mines;

Section made submissions to government regarding •improving sustainable housing in Queensland; and

Section made submissions to government regarding the •treatment of rebated purchase price clauses in contracts.

Revenue Law CommitteeScott Hay-BartlemThe newly invigorated Revenue Law Committee is Chaired by Scott Hay-Bartlem of Cooper Grace Ward.

Highlights:Committee reformed and re-•invigorated during the year and a new Chair appointed;

ExtensiveliaisonwiththeOfficeofStateRevenueinthe•lead up to commencement of OSRConnect system;

Raised concerns about changes to the regime for •self-assessors in the Revenue and Other Legislation Amendment Bill 2009;

Advocated on behalf of practitioners to OSR to reduce the •burden of present audit targeting and practices; and

Established an ongoing communication channel with OSR •for raising issues on behalf of members.


Young Lawyers SectionGenevieve DeeThe Young Lawyers Section is Chaired by Genevieve Dee of Carne Reidy Herd Lawyers who succeeded the Section’s previous Chair, Mr Mark Metzeling, during the year.

Highlights:Held a successful and informative series of ‘Thursday •session’ events providing young lawyers with useful speakers and networking opportunities;

Held a number of Henry Scott Newly Admitted Functions •welcoming newly admitted solicitors to the profession;

Development of networking opportunities for young •lawyers in regional areas;

Publication of a variety of articles in • Proctor providing practical advice to young lawyers in practice; and

Progression of the Young Lawyer Fiji Exchange •Programme and expressing the Society’s solidarity with the Fijian Legal Profession.

Succession Law SectionJohn De GrootThe Succession Law Section is Chaired by Dr John de Groot of de Groots Wills & Estate Lawyers.

Highlights:After QLS advocacy, Registrar of •Births, Deaths and Marriages implements a dedicated email service for practitioners to expedite their requests forcertificates;

After QLS advocacy, the Registrar of Births, Deaths and •Marriagesimplementsspecialidentificationarrangementsforsolicitorapplicantsseekingcertificatesonbehalfofclients; and

Maintained a dialogue regarding review of the Probate •rules within the UCPR;

Commenced a review of Supreme Court Practice •Direction Number 8 of 2001 concerning family provision applications; and

Made contributions to QLS Symposium 2009 and formed •a working group to prepare the agenda and speakers for the Succession Law Conference.

After QLS advocacy, Registrar of Births, Deaths and Marriages implements a dedicated email service for practitioners to expedite their requests for certificates.

After sustained advocacy, Qld Government finally

committed to review Proper ty Agents and Motor

Dealers Act for implementing reform.


AccountingCalabro Consulting•

MPW Forensic•

Vincents Chartered Accountants•

Archive & Document StorageTotal records Management (Aust) Pty Ltd•

Expert OpinionMitchell Brandtman•

Financial InstitutionAsk Funding•

Information ServicesCITECConfirm•

Investigation/Process ServingIDS Group•

Investigation/Risk ManagementPhoenix Global•

IT ServicesIBS InfoTech•

IT Support and Computer ServicesLaw Support•

Legal PublishingSmokeball•

Legal SoftwareLeap Legal•

Multi-Function Copier/Printer/Fax/ScannersToshiba•

Property AdvisorsHerron Todd White •

Restaurant325 on George•

Risk ManagementVerus Consulting•

Search AgenciesSun City Legal Services•

QLS Business Supporters

QLS Member Benefit ProvidersACE Global Protect Travel Insurance•

AMP Home Loan Package•

ING Income Protection e-Plan•

ING Professional Life Plan•

HCF Health Insurance•

Qantas Club•

Hertz•

QLS American Express® •Platinum Credit Card

QLS American Express® •Gold Credit Card

QLS American Express® •Gold Business Card

Caltex Gold StarCard•

Tyrrell Cars – Automotive Buying and Finance Service (ABFS)•

Premium Wines Direct•


Senior Counsellors

Some of the areas a senior counsellor may be able to assist include:

advice on a professional or ethical problem•

career advice on options such as employment and partnership offers•

whether to report a particular situation to the Society•

whetheranotificationshouldbemadetoaprofessionalindemnityinsurer•

acting as an intermediary between the Society and a practitioner wishing to remain anonymous•

Communication between a practitioner and a senior counsellor attracts the same degree of confidentialityascommunicationsbetweenasolicitorandclient

Set out below are details of the senior counsellors and their locations for 2008/09 as at 30 June 2009.

Senior counsellors are experienced practitioners available to advise a practitioner on any professional or ethical problem.

Senior Counsellors – BrisbaneBRISBANEJ R Byrne James Byrne & Rudz GPO Box 900 BRISBANE 4001

P D Carne PublicTrustOffice PO Box 1449 BRISBANE 4001

M B Conroy Conroy & Associates PO Box 586 TOOWONG DC 4066

P L Cooper Cooper Grace & Ward GPO Box 834 BRISBANE 4001

F M Fitzpatrick Blake Topping PO Box 597 ASHGROVE 4060

R V Forgione Forgione Lawyers PO Box 5116 ALGESTER 4115

G C Fox FoxBradfieldLawyers PO Box 3078 SOUTH BRISBANE 4101

G J Hutchinson Cooke & Hutchinson PO Box 130 REDCLIFFE 4020

J P Kelly Corrs Chambers Westgarth GPO Box 9925 BRISBANE 4001

M O Klug Clayton Utz GPO Box 55 BRISBANE 4001

A MacGillivray AM Lex MacGillivray 4/98 Cunningham Street TARINGA 4068

J G Mann AM McCullough Robertson GPO Box 1855 BRISBANE 4001

M A Miller Quinlan Miller & Treston GPO Box 2500 BRISBANE 4001

G A Murphy AM MurphySchmidt PO Box 7042 RIVERSIDE CENTRE 4001

J A Nagel John Nagel & Co PO Box 44 MOUNT GRAVATT 4122

T A Nulty Phillips Fox PO Box 7804 WATERFRONT PLACE 4001

T P O’Gorman AM Robertson O’Gorman PO Box 13026 GEORGE STREET POST, SHOP 4003

R G Perrett Clayton Utz GPO Box 55 BRISBANE 4001

W T Purcell W T Purcell Chadwick & Skelly PO Box 958, BRISBANE 4001

G J Vickery AM Deacons GPO Box 407 BRISBANE 4001


AIRLIE BEACHJ C Ryan Whitsunday Law PO Box 295 CANNONVALE 4802

ATHERTONF J Liston Lilley Grose & Long PO Box 156 ATHERTON 4883

AYRB J Baxter Ruddy Tomlins & Baxter PO Box 590 AYR 4870

CAIRNSR J Beer MacDonnells Law PO Box 5046 CAIRNS 4870

A L English Bottoms English PO Box 5196 CAIRNS 4870

R J Reaston Reaston Lawyers PO Box 395 BUNGALOW 4870

G R Smith Mellick Smith & Associates PO Box 627 CAIRNS 4870

GOLD COASTR B Attwood Richard Attwood PO Box 264 TWEED HEADS 2485

W G Jones Jones Mitchell Lawyers PO Box 2552 SOUTHPORT BC 4215

W M Potts Potts Lawyers PO Box 455 SOUTHPORT DC 4215

GLADSTONEC A Trevor Chris Trevor & Associates 62 Goondoon Street GLADSTONE 4680

GYMPIEG R Neilson Neilson Stanton & Parkinson PO Box 356 GYMPIE 4570

INNISFAILV J Vandeleur Vandeleur & Todd PO Box 862 INNISFAIL 4860

IPSWICHP M Fallu Dale & Fallu PO Box 30 IPSWICH 4350

R Zande Richard Zande & Associates PO Box 42 IPSWICH 4305

MACKAYA P Ghusn Macrossan & Amiet PO Box 76 MACKAY 4740

G C Paterson Macrossan & Amiet PO Box 76 MACKAY 4740

J C Taylor Taylors Solicitors PO Box 687 MACKAY 4740

MARYBOROUGHT W Young Carswell & Company PO Box 127 MARYBOROUGH 4650

ROCKHAMPTONA R Batts Connolly Schirmer & Batts PO Box 309 ROCKHAMPTON 4700

V N Jackson South & Geldard PO Box 560 ROCKHAMPTON 4700

J L Shaw Swanwick Murray Roche PO Box 111 ROCKHAMPTON 4700

SUNSHINE COASTM D Bray Bradley & Bray PO Box 243 NAMBOUR 4560

G W Ferguson Ferguson Cannon Lawyers PO Box 5851 MAROOCHYDORE BC 4558

M O Richardson Cartwrights Lawyers PO Box 132 NOOSA HEADS 4567

TOOWOOMBAT M Sullivan Davidson & Sulllivan PO Box 599 TOOWOOMBA 4350

K M Walker Walkers PO Box 1514 TOOWOOMBA 4350

TOWNSVILLER C Barnes James Cook University PO Box 6 JAMES COOK UNIVERSITY 4811

P G B Mackey Mackey Wales Law PO Box 6080 TOWNSVILLE 4810

WARWICKN D Maxwell Maxwell Solicitors PO Box 200 WARWICK 4370

Senior Counsellors – Regional

Financial Information


Consolidated Parent Entity

NOTE 2009 2008 2009 2008

$ $ $ $

Revenue

Membership and practitioner fees 6 6,632,249 6,211,351 6,632,249 6,211,351

Department of Justice and Attorney-General grants 2,519,902 2,754,767 2,519,902 2,754,767

Rent and administration revenue 7 508,522 474,496 820,522 725,746

Membership services and events 8 4,343,693 4,099,487 4,343,693 4,099,487

Investment income 5(a) 6,917,728 12,755,367 750,164 882,923

Commissions and funding 451,794 551,703 451,794 551,703

Insurance premiums, levies and deductibles 28,754,585 28,803,298 - -

Other income 127,107 254,893 127,107 254,893

Total revenue 50,255,580 55,905,362 15,645,431 15,480,870

Expenses

Administration expenses 9 15,306,218 13,196,719 11,842,869 10,641,810

Membership services and events 8 2,089,223 1,854,906 2,089,223 1,854,906

Council and committee costs 10 606,966 589,019 606,966 589,019

Law council capitation fees 751,519 696,281 751,519 696,281

Reinsurance costs 4,828,300 4,373,400 - -

Claims paid 11 18,926,751 14,455,706 - -

Movement in outstanding claims 11 10,710,885 444,744 - -

Claims handling expense 11 552,000 214,000 - -

Movement in reinsurance recoveries 11 (8,863,000) 768,000 - -

Reinsurance recoveries received 11 (191,058) (29,890) - -

Realisedlosses-available-for-salefinancialinstruments 5(b) 11,026,860 2,084,255 - -

Unrealisedlosses–available-for-salefinancialinstruments 5(b) 10,094,192 - - -

Brokerage fees 160,000 150,000 - -

Total expenses 65,998,856 38,797,140 15,290,577 13,782,016

Operating surplus before income tax (15,743,276) 17,108,222 354,854 1,698,854

Income tax expense 21 6,745,646 (1,104,077) - -

Operating surplus after income tax (8,997,630) 16,004,145 354,854 1,698,854

Queensland Law Society Incorporated

Income Statementfor the year ended 30 June 2009

The accompanying notes form part of these statements.



Balance Sheetas at 30 June 2009


NOTE 2009 2008 2009 2008

$ $ $ $Current assets

Cash and cash equivalents 20(a) 85,090,648 54,706,558 15,457,603 17,421,107

Receivables and prepayments 12 1,733,692 1,726,750 1,029,198 1,251,079

Total current assets 86,824,340 56,433,308 16,486,801 18,672,186

Non-current assets

Investment in Lexon Insurance Pte Ltd 4 - - 19,000,000 9,000,000

Available-for-salefinancialassets 5(b) 57,042,667 87,665,442 - -

Property, plant and equipment 14 24,186,426 14,578,101 24,136,691 14,555,541

Current income tax asset 22 996,853 - - -

Deferred tax assets 23 6,345,834 3,248,031 - -

Insurance contract liabilities ceded 11 16,677,000 7,814,000 - -

Total non-current assets 105,248,780 113,305,574 43,136,691 23,555,541

TOTAL ASSETS 192,073,120 169,738,882 59,623,492 42,227,727

Current liabilities

Payables 13 40,587,756 35,399,364 12,078,688 10,267,088

Current income tax liabilities 22 - 490,390 - -

Accruedemployeebenefits 16 644,096 589,989 560,492 492,996

Provision for outstanding claims 11 17,665,000 16,110,846 - -

Total current liabilities 58,896,852 52,590,589 12,639,180 10,760,084

Non-current liabilities

Accruedemployeebenefits 16 590,164 481,808 574,699 473,824

Deferred income tax liability 23 81,516 92,067 - -

Insurance contract liabilities 11 58,817,350 48,766,000 - -

Total non-current liabilities 59,489,030 49,339,875 574,699 473,824

TOTAL LIABILITIES 118,385,882 101,930,464 13,213,879 11,233,908

NET ASSETS 73,687,238 67,808,418 46,409,613 30,993,819

EQUITY

Retained surplus 15 56,814,355 65,811,985 29,536,730 19,181,876

Reserves 15 16,872,883 1,996,433 16,872,883 11,811,943

TOTAL EQUITY 73,687,238 67,808,418 46,409,613 30,993,819



Parent Entity NOTE

Asset Revaluation

Reserve

Fair Value

ReserveRetained Profits TOTAL

$ $ $ $

Opening Balance – 1 July 2007 11,260,548 - 17,483,022 28,743,570

Operating surplus for the period - - 1,698,854 1,698,854

Revaluation of strata title building 551,395 - - 551,395

Closing balance – 30 June 2008 15 11,811,943 - 19,181,876 30,993,819

Operating surplus for the period - - 354,854 354,854

Transfer from LCLF for purchase of Lexon Shares - 10,000,000 10,000,000

Revaluation of strata title building 5,060,940 - - 5,060,940


Consolidated NOTE

Asset Revaluation

Reserve

Fair Value

ReserveRetained Profits TOTAL

$ $ $ $

Opening Balance – 1 July 2007 11,260,548 3,167,785 49,807,840 64,236,173

Operating surplus for the period - - 16,004,145 16,004,145

Fair value movements on available for sale financialassets - (19,630,160) - (19,630,160)

Realisedgainsonavailableforsalefinancialassets - 2,084,255 - 2,084,255

Tax effect of fair value movements on available forsalefinancialassets - 4,562,610 - 4,562,610

Revaluation of strata title building 551,395 - - 551,395

Closing balance – 30 June 2008 15 11,811,943 (9,815,510) 65,811,985 67,808,418

Operating surplus for the period - - (8,997,630) (8,997,630)Fair value movements on available for sale financialassets - (8,100,554) (8,100,554)

Realisedlossesonavailableforsalefinancialassets - 11,026,861 - 11,026,861

Tax effect of fair value movements on available forsalefinancialassets - (3,204,989) - (3,204,989)

Transfer to income statement - 10,094,192 - 10,094,192

Revaluation of strata title building 5,060,940 - - 5,060,940



Statement of Changes in Equityfor the year ended 30 June 2009




NOTE 2009 2008 2009 2008

$ $ $ $Cash flows from operating activities

Receipts from the profession 49,423,695 44,119,650 13,662,266 15,551,702

Receipts from department of justice 2,526,796 2,869,785 2,526,796 2,869,785

Payments to suppliers and employees (21,178,376) (20,710,232) (16,976,924) (17,622,519)

Receipts collected for Society entities - - 35,074,829 28,618,454

Payments to Society entities - - (32,065,714) (28,217,026)

Receipts collected for Legal Practitioners’ Fidelity Guarantee Fund 2,592,963 2,291,964 2,592,963 2,291,964

Payments to Legal Practitioners’ Fidelity Guarantee Fund (2,608,515) (2,386,668) (2,608,515) (2,386,668)

Reinsurance recoveries 191,058 29,890 - -

Reinsurance payments (4,828,300) (4,373,000) - -

Claims & claims related payments (19,442,561) (14,455,706) - -

Interest received 2,941,802 2,100,343 890,902 834,771

Interest paid - - - -

Income tax paid 22 (1,054,940) (4,298,046) - -

Net cash provided by / (used in) operating activities 20(c) 8,563,622 5,187,980 3,096,603 1,940,463

Cash flows from investing activities

Net term deposits (6,000,000) (2,000,000) 3,000,000 (500,000)

Purchase of investments - (21,500,000) - -

Proceeds from investment redemptions 26,938,662 9,463,681 - -

Distribution from LCLF for purchase of Lexon shares - - 10,000,000 -

Purchase of Lexon shares - - (10,000,000) -

Payments for property, plant and equipment 14 (5,118,194) (54,751) (5,060,107) (52,214)

Net cash provided by / (used in) investing activities 15,820,468 (14,091,070) (2,060,107) (552,214)

Net increase / (decrease) in cash held 24,384,090 (8,903,090) 1,036,496 1,388,249

Cash at the beginning of the period 20(a) 44,706,558 53,609,648 11,421,107 10,032,858

Cash at the end of the period 20(a) 69,090,648 44,706,558 12,457,603 11,421,107


Cash Flow Statementfor the year ended 30 June 2009



Objectives and principal activities

The Queensland Law Society Incorporated (the Society) is the professional association for solicitors in Queensland and continues in existence under the Legal Profession Act 2007 (theAct).WhiletheSocietyisdefinedasastatutorybodyunderthe Financial Administration and Audit Act 1977, it remains an independent professional body, subject to the governance of its elected Council.

These accounts include the Society, other funds and subsidiaries and when combined are referred to as ‘the Group’.

TheGroupisresponsibleforissuingofpracticingcertificates,providing continuing legal education, investigating complaints of unsatisfactory professional conduct against solicitors, administering funds under the control of the Group, providing services and support to members and the general public and providing general insurance and services as licensed under the Singapore Insurance Act. Major sources of income for the Society include annual fees paid by its members, contributions from the Department of Justice and Attorney-General, continuing legal education to the profession, investment income, and Insurance Premiums.

1. Summary of significant accounting policies

ThesignificantaccountingpolicieswhichhavebeenadoptedinthepreparationoftheGroup’sfinancialstatementsare:

a. Basis of accountingThefinancialreportisaGeneralPurposeFinancialReportwhich has been prepared in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) of the Australian Accounting Standards Board and comply with the Treasurer’s minimum reporting requirements for the year ending 30 June 2009, and other authoritative pronouncements

Thefinancialreporthasalsobeenpreparedonthebasisofhistorical cost and except where stated does not take into account changing money values. Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period and amounts in the report have been rounded to the nearest dollar.

b. The reporting entityThefinancialstatementsincludethevaluesofallrevenues,expenses, assets, liabilities and equity of the Society and the entities that it controls where they are material.

The Society controlled the following entities at reporting date:Law Claims Levy Fund (This Fund was wholly controlled for the whole period).

Lexon Insurance Pte Ltd (formerly QLS Insurance Pte Ltd). This Company was established on 23 June 2001 in Singapore and is 100 per cent owned by the Society. This Company was wholly controlled for the whole period.

c. Principles of consolidationThefinancialstatementsofcontrolledentitiesareincludedintheconsolidatedfinancialstatementsfromthedatecontrol commences to the date control ceases. In the process of reporting the Society as a single economic entity, unrealised gains and losses, inter-entity balances resulting from transactions with or between controlled entities are eliminated on consolidation where material. The accounting policies have been consistently applied by each entity in the consolidated entity.

d. TaxationIncome tax is recognised on consolidation.

The Queensland Law Society Inc (parent entity) is exempt from income tax by virtue of section 50-25 of the Income Tax Assessment Act 1997 with the exception of Fringe BenefitsTax(FBT)andtheGoodsandServicesTax(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 ATO. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet.Cashflowsareincludedinthestatementofcashflowsonagrossbasis.TheGSTcomponentsofcashflowsarisingfrominvestingactivitiesandfinancingactivitieswhicharerecoverablefrom,orpayableto,theATOareclassifiedasoperatingcashflows.

Lexon Insurance Pte Ltd (formerly QLS Insurance Pte Ltd) is registered in Australia for income tax and GST. The company has dual tax residency in Australia and Singapore. In relation to offshore insurance business, the Company has been granted tax exempt status for a period of 10 years from 17 February 2006 to 16 February 2016 under the tax exemption scheme for captive insurers by the Monetary Authority of Singapore.

Current income tax is recognised at the amount expected to be paid to or recovered from the tax authorities.

Deferred income tax is recognised for all temporary differences except when the deferred income tax arises from the initial recognition of an asset or liability affects neitheraccountingnortaxableprofitorlossatthetimeofthetransaction.

Current and deferred income tax is measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date, and are recognised as income or expenses in the income statement, except to the extent that the tax arises from a transaction which is recognised directly in equity.

Deferred tax on temporary differences arising from the fair valuegainsandlossesonavailable-for-salefinancialassetsand are charged or credited directly to equity in the same period the temporary differences arise.


Notes to and forming part of the Financial Statementsfor the year ended 30 June 2009


1. Summary of significant accounting policies (continued)

e. Revenue recognitioni. Premium income

Premium income is recognised as revenue at the commencement of the risk period covered by the policy and accrued proportionally over the period of coverage.

ii. Interest incomeInterest income is accrued on a time-proportion basis using the effective interest method.

iii. Other incomeRevenues are recognised at fair value of the consideration received net of any amount of GST payable to the ATO. Practitioner Fees are recognised when payment is received. Interest revenue is recognised as it accrues, taking into account the effectiveyieldonthefinancialassetandisalsorecognised net of bank charges. Premium revenue isrecognisedinthefinancialstatementsatthecommencement of the risk period covered by the policies.

iv. Grants and other contributionsGrants, donations and gifts that are non-reciprocal in nature are recognised as revenue in the year in which the Society obtains control over them. Where grants are received that are reciprocal in nature, revenue is accrued over the term of the funding arrangement.

v. Recovery of expenditureUnder the rules of the Act, certain operating expenses of the Society are recoverable from the Legal Practitioners’ Fidelity Guarantee Fund. The gross amounts recovered are disclosed as income. Expenses incurred on behalf of the Fund form part of the administration expenses incurred by the Society.

vi. Insurance contractsContractsunderwhichtheGroupacceptssignificantinsurance risk from another party (the policyholder) by agreeing to compensate the policyholder or other beneficiaryifaspecifieduncertainfutureevent(theinsured event) adversely affects the policyholder or otherbeneficiaryareclassifiedasinsurancecontracts.

f. Operating leasesPayments made under operating leases (net of any incentives received from the lessor) are taken to the income statement on a straight-line basis over the period of the lease.

When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the financialyearinwhichterminationtakesplace.

g. Cash and cash equivalentsFor the purposes of the Balance Sheet and Cash Flow Statement, cash assets include all cash and cheques receipted but not banked at 30 June as well as deposits on callwithfinancialinstitutions.TheCashDepositAccountisan interest bearing account which is readily convertible to cash on hand at the Groups option.

h. Reinsurance contractsContracts entered into by the Group with reinsurers under which the Group is compensated for losses on one or more contractsissuedbytheGroupwheresignificantinsuranceriskistransferredareclassifiedasreinsurancecontracts.

ThebenefitstowhichtheGroupisentitledunderitsreinsurance contracts are recognised as reinsurer’s share of insurance liabilities. These assets consist of short-term balances due from reinsurers as well as longer term receivables that are dependent on the expected recovery. Reinsurance liabilities are primarily premiums payable for reinsurance contracts and are recognised as expenses when due.

The Group assesses its reinsurance assets for impairment at each balance sheet date. Such assets are deemed impaired if there is objective evidence, as a result of an event that occurred after its initial recognition, that the Group may not recover all amounts due and that the event has a reliably measurable impact on the amount that the Group will receive from the reinsurer.

The Group ceded reinsurance in the normal course of business for the purpose of limiting its net loss potential throughthediversificationofitsrisks.Reinsurancearrangements do not relieve the Group from its direct obligations to its policyholders.

i. Financial assetsTheGroupclassifiesitsfinancialassetsasloansandreceivablesandavailable-for-salefinancialassets.Managementdeterminestheclassificationatinitialrecognition and re-evaluates this designation at every reporting date.

i. ReceivablesReceivables include trade and other receivables in the balance sheet.

Thesefinancialassetsareinitiallyrecognisedatfairvalue plus transaction cost and subsequently carried at amortised cost using the effective interest method. They are presented as current assets, except for those maturing later than 12 months after the balance sheet date which are presented as non-current assets.

The Group assesses at each balance sheet date whetherthereisobjectiveevidencethatthesefinancialassets are impaired and recognises an allowance for impairment when such evidence exists. Allowance for impairment is calculated as the difference between the carrying amount and the present value of estimated futurecashflows,discountedattheoriginaleffectiveinterest rate.

ii. Financial assets, available-for-sale Thesefinancialassetsareinitiallyrecognisedatfairvalue plus transaction cost and subsequently carried at fair value. Changes in the fair value are recognised in the fair value reserve.

Thesefinancialassetsarerecognised/derecognisedon the date which the Group commits to purchase / sell the asset. They are presented as non-current assets unless management intends to dispose of the assets within 12 months after the balance sheet date.

The Group assesses at each balance sheet date whetherthereisobjectiveevidencethatthesefinancialassets are impaired. If there is evidence of impairment, the cumulative loss that was recognised in the fair value reserve is transferred to the income statement. Impairment losses on available-for-sale equity securities are not reversed through the income statement.

Thesefinancialassetsarederecognisedwhentherightstoreceivecashflowsfromthefinancialassetshave expired or have been transferred and the Group



i. Financial assets (continued)ii. Financial assets, available-for-sale (continued)

has transferred substantially all risks and rewards of ownership. On disposal, the difference between the carrying amount and the sale proceeds is recognised in the income statement. Any amount in the fair value reserve relating to that asset is transferred to the income statement.

Unrealised gains and losses arising from changes in thefairvalueofavailable-for-salefinancialassetsarerecognised in the fair value reserve within equity. When investmentsclassifiedasavailable-for-salearesoldorimpaired, the accumulated fair value adjustments in the fair value reserve within equity are included in the income statement.

j. Property, plant and equipment i. Acquisition of assets

All assets acquired are recorded at their cost of acquisition at the date of acquisition, being the fair value of the consideration provided plus incidental costs directly attributable to the acquisition. All assets acquired are expensed unless the initial cost exceeds $5,000. All library acquisitions are expensed in the year of purchase.

The Society has followed the Queensland Treasury guidelines in relation to intangible assets and as such expenses all software purchases less than $100,000.

ii. DepreciationAll assets including strata title buildings have limited useful lives and are depreciated using the straight line method over their estimated useful lives, taking into account estimated residual values.

Assets are depreciated from the date of acquisition. Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new depreciable amount depreciated over the remaining useful life of the asset. Depreciation rates and methods are reviewed annually for appropriateness. Whenchangesaremade,adjustmentsarereflectedprospectively in current and future periods only.

The depreciation rates used for each class of asset are as follows:

2009 2008Asset Class Strata Title Building 2.5% 2.5%

Plant and Equipment 5% - 33% 5%-33%

Computer Equipment 33% - 100% 33%-100%

iii. Impairment of non-current assetsPlant and equipment are reviewed for impairment whenever there is any objective evidence or indication that these assets may be impaired.

For the purpose of impairment testing of the assets, recoverable amount (ie the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generatecashflowsthatarelargelyindependentofthose from other assets. If this is the case, recoverable amount is determined for the cash-generating-unit (CGU) to which the asset belongs.

If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The difference between the carrying amount and recoverable amount is recognised as an impairment loss in the income statement.

An impairment loss for an asset is reversed if, and only if, there has been a change in the estimates used to determine the assets’ recoverable amount since the last impairment loss was recognised. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the assets in prior years. A reversal of impairment loss for an asset is recognised in the income statement.

iv. RevaluationsThe strata title building is measured at fair value and isindependentlyrevaluedeveryfiveyearstoensurethe carrying amount does not materially differ from the fair value at reporting date. In between independent valuations,theSocietyusestheImplicitPriceDeflatorfor non-residential buildings indices to index the carrying amount of the building where there has been a material variation in the index. Revaluation increments are recognised in the asset revaluation reserve except where amounts reversing a decrement previously recognised as an expense are recognised as revenues. Revaluation decrements are only offset against revaluation increments and any excess is recognised as an expense.

k. Insurance liabilitiesInsurance liabilities comprise of outstanding claims provision and unearned premiums provision.

i. Outstanding claims provisionFull provision is made for the estimated cost of all claims admitted or intimated but not settled at the balance sheet date, less reinsurance recoveries, using the best information available at that time.

In addition, provision is made for claims incurred but not reported (IBNR) at the date of the balance sheet based on claims experience and industry statistics.

ii. Unearned premiums provisionThe portion of premiums that relates to unexpired risk at the balance sheet date is reported as the unearned premium liability. Unearned premiums are calculated based on the 1/365 method applied to the net premiums writtenforthefinancialyear.

iii. Liability adequacy testAt each balance sheet date, liability adequacy test is performed to ensure the adequacy of the contract liability. In performing this test, current estimates of futurecontractualcashflowsandclaimshandlingandadministration expenses, as well as investment income from assets backing such liabilities, are used. Any deficiencyisimmediatelychargedtogeneralinsurancerevenue account by establishing a provision for losses arising from liability adequacy tests.

l. PayablesTrade creditors are recognised on receipt of the goods or services and are carried at actual amounts, gross of applicable trade and other discounts. Amounts are unsecured and are generally settled on 30 day terms.



m. ProvisionsA provision is recognised when there is a legal, equitable or constructive obligation as a result of a past event and it isprobablethatafuturesacrificeofeconomicbenefitswillbe required to settle the obligation, the timing or amount of which is uncertain.

n. Employee benefitsi. Annual leave

Current annual leave entitlements represent present obligations resulting from services provided by employees up to balance date, calculated at undiscounted amounts based on remuneration rates that the entity expects to pay as at reporting date including related on-costs, such as, employer superannuation contributions, workers compensation insurance and payroll tax.

ii. Sick leavePrior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to recur in future periods and therefore it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised.

iii. Long service leaveTheprovisionforemployeebenefitstolongserviceleave represents the present value of the estimated futurecashoutflowstobemaderesultingfromemployees’ services provided to reporting date.

The provision is calculated using expected future increases in remuneration rates including related on-costs and is based on experience of employee departure per year of service. Long service leave expected to be paid in the next 12 months is recorded as a current liability in the Balance Sheet. Long service leave expected to be paid later than one year is recorded as a non-current liability and is discounted using the Commonwealth Bond rate at the reporting date which most closely matches the terms of maturity of the related liabilities.

o. Foreign currencyForeign currency transactions are translated to Australian currency at the rate of exchange ruling at the dates of the transactions. Amounts receivable and payable in foreign currencies at reporting date are translated at the rates of exchange ruling on that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies are recognised in the Income Statement.

p. Legal Profession Act 2007The Legal Profession Act 2007 (Qld) came into effect on 1 July 2007. The provisions contained within the Act cover a range of matters including the establishment of the Legal Services Commission, Legal Practice Tribunal and Committee and the Legal Practitioners’ Admissions Board, together with a number of technical measures including those relating to transitional provisions to facilitate the transfer to the new legislation.

q. Issuance of financial statementsThefinancialstatementsareauthorisedforissuebytheCouncil of the Queensland Law Society Inc at the date of signingthemanagementcertificate.

r. New and revised accounting standardsNo Australian accounting standards and interpretations issuedoramendedandapplicableforthefirsttimeinthe2008/09financialyearhaveaneffectontheGroup.Also,the Group has not voluntarily changed any of its accounting policies.

The Group is not permitted to early adopt a new accounting standardaheadofthespecifiedcommencementdateunless approval is obtained from the Treasury Department. Consequently, the Group has not applied any Australian accounting standards and interpretations that have been issued but are not yet effective. The Group will apply these standards and interpretations in accordance with their respective commencement dates.

All other Australian accounting standards and interpretations with future commencement dates are either not applicable to the Group, or have no material impact on the Group.

2. Critical accounting estimates and judgements in applying accounting policies

The Group makes estimates and assumptions concerning the future.Theresultingaccountingestimateswill,bydefinition,seldom equal the related actual results. The estimates and assumptionsthathaveasignificantriskofcausingamaterialadjustment to the carrying amounts of assets and liabilities withinthenextfinancialyeararediscussedbelow.

Management has considered the development, selection and disclosure of the Group’s critical accounting policies and estimates and the application of these policies and estimates. Certain critical accounting judgements in applying the Group’s accounting policies are related to the policyholder claims.

a. Actuarial methodology for estimate for policyholder claims

The Group’s estimates for reported and unreported losses and establishing resulting provisions and related reinsurance recoverables are continually reviewed and updated, and adjustmentsresultingfromthisreviewarereflectedintheincome statement. The process relies upon the use of external advisers (lawyers, actuaries and loss adjustors) and the assumption that past experience is an appropriate basis for predicting future events. In estimating the outstanding claims liability, projected future claims payments are discounted to the calculation date for each claim year.

The projected future claims payments for each claim year are based on the claim estimates and an allowance for the development of claims (Incurred But Not Enough Reported – IBNER) especially for the recent claim years in respect of which limited claims information is available and estimates are therefore the most subjective; and an allowance for accident cases, which had incurred but have not yet been reported (Incurred But Not Reported – IBNR).

The IBNER and IBNR estimate has been calculated using a combination of the Incurred Claims Development (ICD) and Bornhuetter-Ferguson (BF) methods.

b. Key assumptionsThe following key valuation assumptions have been used to estimate future projected payments and outstanding claims liabilities:

The ICD basis allows for 10 per cent development beyond •the 9th development half-year.The average cost per solicitor (used in the BF method) •adopted is $4,400.


2. Critical accounting estimates and judgements in applying accounting policies (continued)

b. Key assumptions (continued)We allow for three per cent development in claim numbers •beyond the ninth development half-year.We have assumed reinsurance recoveries will be fully •recoverable on a prompt basis.We have applied the zero-coupon yield for Commonwealth •Governmentbondstotheexpectedfuturecashflows.Thishas resulted in a uniform discount rate of 4.6 per cent.Wehaveassumedfutureinflationwillbethesameaspast•inflation,totheextentthatithasbeencapturedbytheclaims development data.We have used market benchmarks to include an allowance •for claims handling expenses (CHE).While we have calculated a central estimate, we have •appliedariskmarginata90percentlevelofsufficiencytogain comfort with the adequacy of reserve.

Therehavebeennosignificantchangesinthebusinessunderwritten by the Company or the way the insurance liabilitiesareestimated.Assuchnosignificantamendmentshave been made to the assumptions.

c. Sensitivity analysis of key estimatesWhile the gross ultimate costs are sensitive to valuation assumptions, the net results are much less sensitive due to the aggregate limits that apply which reduces the net exposure.

The net impacts on our estimated total provision due to changes in assumptions are:

Reserve underestimation: The gross undiscounted •unused exposure for all years totals $8.3 million. A 10 per cent reserve under estimation results in an additional discounted reserve of $2.2 million or 4.4 per cent of the discounted net central estimate.Reserve overestimation: If our estimated reserves on all •years improved by 10 per cent then the total net provision would decrease by $2.1 million or 4.3 per cent of the discounted net central estimate.Discount rate: A half a percentage point increase in •discount rate (from 4.6 per cent to 5.1 per cent) would reduce our provision by $0.5 million or 1.0 per cent of the discounted net central estimate.

3. Management of insurance and financial risk

A subsidiary, Lexon Insurance Pte Ltd is a captive insurer and issues a single insurance contract to its holding corporation that transfers insurance risks of its holding corporation to itself. This section summarises these risks and the way the Company manages them.

Group’s accounting policies are related to the policyholder claims.

a. Insurance RiskThe risk under any one insurance contract is the possibility that the insured event occurs and the uncertainty of the amount of the resulting claim. By the very nature of an insurance contract, this risk is random and therefore unpredictable.

The primary insurance activity carried out by the entity assumes the risk of loss from persons that are directly subject to the risk - professional indemnity liability. Such risk may relate to liability that may arise from an insurable event. As such, the entity is exposed to the uncertainty surrounding the timing and severity of claims under the contract. The

entity also has exposure to market risk through its insurance and investment activities.

The entity manages its insurance risk through underwriting guidelines, centralised management of reinsurance and monitoring of emerging issues.

i. Underwriting strategyTheentityisunabletoprovideadiversifiedportfolioof similar risks due to its licensing arrangement. The entity currently only underwrites the risk of its holding corporation. Such a focus on one “insured” group does create a wider variability of outcome than a balanced portfolio.

ii. Reinsurance strategyIn considering the purchase of reinsurance protection, the entity’s philosophy is twofold, namely:

To reduce risk, and•To stabilise solvency.•

To achieve such objectives, the entity will consider the placing of reinsurance protection at appropriate levels withreinsurancecarriersofaprovenfinancialrecord.Specificreinsuranceplacementsshouldreflecttheappropriate balance between retention and reinsurance commensurate with the nature and complexity of the risk, all within acceptable exposure limits to the entity.

Ceded reinsurance contains credit risk, and such reinsurance recoverables are reported after known deductions for insolvencies and uncollectible items. Theentitymonitorsthefinancialconditionofreinsurerson an ongoing basis and reviews its reinsurance arrangements periodically. The entity’s Board of Directors are responsible for setting the minimum security criteria for acceptable reinsurance.

iii. Terms and conditions of insurance contractsThe terms and conditions of insurance contracts that have a material effect on the amount, timing and uncertaintyoffuturecashflowsarisingfrominsurancecontracts are set out below.

The following gives an assessment of the entity’s main product – professional indemnity liability and the ways in which it manages the associated risks.

(i). Product featuresThe entity writes professional indemnity liability and under these contracts, monetary compensation awards are paid for any description of civil liability whatsoever incurred in connection with the Law Practice.

Professional indemnity liability is generally considered a long tail line, as it takes a relatively longperiodoftimetofinaliseandsettleclaimsfora given accident year. The speed of claim reporting andclaimsettlementisafunctionofthespecificcoverageprovided,thejurisdictionandspecificpolicyprovisions.

This line is typically the largest source of uncertainty regarding claims provisions. Major contributors to this provision estimate uncertainty include the reporting lag, the number of parties involved in the underlying action, the potential amounts involved and whether such claims were reasonably foreseeable and intended to be covered at the time the contracts were written. Claims with longer reporting lag will result in greater inherent risk.


3. Management of insurance and financial risk (continued)

a. Insurance risk (continued)iii. Terms and conditions of insurance contracts (continued)

(ii) Management of risksThe key risks associated with this product are underwriting risk and claims experience risk. Underwriting risk includes the risk of higher claims costs than expected owing to the random nature of claims and their frequency and severity and the risk of change in legal or economic conditions or behavioural patterns affecting reinsurance pricing and conditions of reinsurance cover. This may result in the entity having either too little premium for the risks it has agreed to underwrite and hence, has not enough funds to invest and pay claims, or that claims are in excess of those expected.

Claims development history – Lexon Insurance Pte Ltd and Law Claims Levy Fund

Gross discountedIn A$ $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000Underwriting year 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 Total

Estimate of ultimate claims Costs:

– at end of reporting year 13,447 15,417 15,324 19,628 18,112 16,945 23,801– one year later 16,482 15,417 23,329 19,751 19,994 14,383– two years later 19,683 15,743 19,117 16,978 19,978– three years later 21,505 13,359 17,461 16,573– four years later 18,233 13,395 21,259–fiveyearslater 19,187 12,141,– six years later 21,053

Current estimate of cumulative claims 21,053 12,141 21,259 16,573 19,978 14,383 23,801 129,188Cumulative payments to date (17,033) (10,786) (13,021) (10,703) (7,348) (2,836) (905) (62,632)Liability recognised in the balance sheet 4,020 1,355 8,238 5,870 12,630, 11,547 22,896 66,556

Liability in respect of prior years 3,093Risk margin 2,629

Provision for claims handling 4,204

Total outstanding claims included in the balance sheet 76,482

Estimate of ultimate claims Costs:– at end of reporting year 13,447 15,417 15,324 15,559 15,417 13,626 16,492– one year later 16,482 15,417 16,722 16,167 16,718 14,383– two years later 19,683 15,743 17,205 16,587 17,178– three years later 17,925 13,359 17,358 16,573– four years later 17,842 13,395 17,758–fiveyearslater 18,462 12,141– six years later 17,986

Current estimate of cumulative claims 17,986 12,141 17,758 16,573 17,178 14,383 16,492 112,511Cumulative payments to date (17,033) (10,786) (13,021) (10,703) (7,348) (2,836) (905) (62,632)Liability recognised in the balance sheet 953 1,355 4,737 5,870 9,830 11,547 15,587 49,879

Liability in respect of prior years 3,093Risk margin 2,629Provisions for claims handling 4,204

Total outstanding claims included in the balance sheet (refer note 11) 59,805

Insurance risk is managed primarily through sensible pricing, product design, appropriate investment strategy and reinsurance. The entity therefore monitors and reacts to changes in the general economic and commercial environment in which it operates. The entity also assesses the need to minimise its underwriting risks by retaining part of the risks underwritten for its own account and reinsuring the remainder.



b. Reinsurance riskThe entity cedes insurance risk to limit exposure to underwriting losses under agreements that cover risks or group risks on yearly renewable terms. These reinsurance agreements spread the risk and minimise the effect of losses. The amount of risk retained depends on the entity’s evaluation of the risk. Under the terms of the reinsurance agreements, the reinsurer agrees to reimburse the ceded amount in the event the claim is agreed and paid. However, the entity remains liable to its policyholders with respect to ceded insurance if any reinsurer fails to meet the obligations it assumes.

When selecting a reinsurer, the entity considers their relative security. The security of the reinsurer is assessed from public rating information.

c. Concentration riskThe concentration of insurance risk before and after reinsurance is solely in Australia.

d. Financial riskTheentity’sactivitiesexposeittoavarietyoffinancialrisks:market risk (currency risk, price risk and interest rate risk), credit risk and liquidity risk.

i. Currency riskTheentityisnotexposedtosignificantforeigncurrencyrisk in relation to its functional currency as the majority of the entity’s transactions, assets and liabilities are denominated in Australian dollars.

The entity holds minor cash balances in Singapore, and units in unit trusts which hold some minor unhedged positions.

The entity outsources its investment activities to respectedfundmanagerswhousedefinedriskmanagement techniques as part of the funds mandates.

All investments in income securities are fully hedged where a currency exposure exists.

As part of the entity’s investment mandate it holds units in one fund which holds unhedged international securities. Any unhedged position is in accordance with the strategic asset allocation, and is monitored regularly by management and the Board.

ii. Price and interest rate riskThe Company is exposed to equity securities price risk arisingfromtheinvestmentsclassifiedasavailable-for-sale. These securities are held with Australian fund managers.

Group funds seek to reduce risk by diversifying across •a range of securities, maturities and counterparties. Investments of the funds are subject to the risk control limits and constraints:

Duration and Tracking Error Limits (interest rate management)TheModifiedDurationofthefundsareconstrained•withinaspecifiedperiodeithersideoftheModifiedDuration of the Benchmark.Rolling year ex post tracking error will be limited to a •specifiednumberofbasispoints.Theex-antetrackingerror of the funds are not expected to exceed a specifiednumberofbasispoints.

Sector Exposure BandsThe weighting of each sector (eg domestic, •international – government, non government) within thefundswillbemaintainedinspecifiedlimits.

Credit LimitsThefundswillbeinvestedinabroadanddiversified•range of securities across the credit spectrum.

Credit Risk Limits for Individual Security Investments

Individual security limits apply for direct physical •holdings based on their credit rating and inclusion in the benchmark.

Management and the Board regularly review the performance and ensure all investments held are within the approved mandate.

Interest Rate sensitivityThe following interest rate sensitivity depicts the outcometotheprofitandlossiftheinterestratesweretoincreaseby1%linearlyfromtheyearendyieldcurveapplicabletothecompany’sfinancialassetsandliabilities which are subject to interest movements. With all other variables held constant, the company would have decrease of $796,204 (2008: $266,973). A linear decrease of interest rates by one per cent would result in an increase of $796,204 (2008: $266,973).

Price sensitivityThe following price sensitivity depicts the outcome totheprofitandlossifallequityinvestmentsmovedanaverageoffivepercentfromtheyearendvalues.With all other variables held constant, the company would record an unrealised gain of $697,810 (2008: $2,888,911)forafivepercentincreaseinmarketvaluesand an unrealised loss of $697,810 (2008: $2,888,911) forafivepercentdecreaseinmarketvalues.

iii. Credit riskThereisnosignificantcreditriskwithrespecttothecollectability as funds are collected in advance of the year from the profession.

Credit risk arising on funds placed with external fund managers and on reinsurance activities is managed by established policies to ensure that the counter-parties haveadequatefinancialratingsandappropriatecredithistory.

Financial assets that are neither past due or impairedAtthebalancesheetdatenofinancialassetsarepastdue or impaired other than trade receivables noted below.

Cash and cash equivalents are neither past due nor impairedareplacedwithreputablefinancialinstitutionswith high credit ratings and no history of default.

Financial assets, available-for-sale are redeemable on demand. These are placed with reputable fund managers. Within the current holdings there are two funds that have frozen redemptions as a result of the Global Financial Crisis (this is detailed below).

No insurance recoveries are past due. All reinsurance contracts are placed in accordance with the group’s reinsurance policy which ensures appropriate credit rating of individual reinsurers and concentration risk is reduced to acceptable levels.



d. Financial risk (continued)iii. Credit risk (continued)

Financial assets that are past due and/or impairedThe group has trade debtors relating to excesses which are due in relation to claims.

Excesses include $341,375 of balances which are due in excess of one month. Of this, $195,000 is overdue less than one month. There is a provision of $153,875 on these outstanding balances.

Credit ratingsThe following table shows the investment grades of balances due:

Investment grade

(AAA to BBB) Not rated Total

At 30 June 2009Cash and cash equivalents 85,090,648 - 85,090,648

Insurance receivables 16,677,000 - 16,677,000

Other receivables - 709,312 709,312Financial assets - 57,042,667 57,042,667

At 30 June 2008Cash and cash equivalents 54,706,558 - 54,706,558

Insurance receivables 7,814,000 - 7,814,000

Other receivables - 518,420 518,420Financial assets - 87,665,442 87,665,442

Whilethefinancialassetsareinunratedfunds,thefund managers are all reputable. Each fund manager performs internal ratings of each of the individual holdingsandworkswithinpredefinedcreditriskparametersasdefinedintheindividualmandates.

Financial asset investments are placed with the following fund managers:

Queensland Investment Corporation•UBS Global Asset Management•AMP Capital Investors•BNP Paribas Investment Partners•BlackRock Investment Management•Russell Investments•Tasman Asset Management (Tyndall)•

iv. Liquidity riskIn the management of liquidity risks, the group monitors and maintains a level of cash and cash equivalents deemed adequate by management to financethegroup’soperationsandmitigatetheeffectsoffluctuationsincashflows.Thegroupalsoconstantlyreviewsitsinvestmenttoensurethattherearesufficientcashandliquiddepositstomeetitsestimatedoutflowsfrom its insurance contract.

Thegroupmanagesitsexpectedcashflowrequirements using the latest actuarial valuations detailingprojectedcashflows.Thesearemonitoredinconjunction with available cash and investments readily convertible to cash.

The group holds units in two funds which have frozen redemptions as a result of the Global Financial Crisis. These are property funds and redemptions would require disposal of real property which may be to the detriment of remaining unit holders. The funds are accounted for at fair value. These funds are not required for liquidity purposes.

A maturity analysis of insurance liabilities is provided in note 11.

v. Capital riskThe entity’s objectives when managing capital are to ensure that the entity is adequately capitalised, and assessing shortfalls between reported and required capital levels on a regular basis. The entity will issue or redeem additional equity and debt instruments when necessary.

Lexon is required under the Singapore Insurance Act, Cap.142 and the relevant Regulations made there under to meet and maintain at all times during the courseofeachfinancialyearthatitcarriesoninsurancebusiness, minimum fund solvency and capital solvency requirements. As at balance sheet date, Lexon has met the funds solvency requirement for its Offshore Insurance Fund and the minimum capital adequacy requirement of SGD400,000.

Management of the entity and subsidiaries monitor the capital position using a risk based capital model. The model has been developed in conjunction with the group actuaries to ensure the group maintains a robust level of solvency at all times.

4. Investment in Lexon Insurance Pte Ltd (formerly QLS Insurance Pte Ltd)

In June 2001, Lexon Insurance Pte Ltd was incorporated in Singapore as the captive insurer of the Society. The company was capitalised with $9,000,000 via surplus funds from the Society controlled Law Claims Levy Fund. A further $10,000,000 was issued in May 2009. The $19,000,000 share capital of the company is fully owned by the Society and the company is a controlled entity of the Society. Share capital is eliminated on consolidation.


5. Investments

a. Investment income

Consolidated Parent2009 2008 2009 2008

$ $ $ $Distributions from available-for-salefinancialassets(netoffees) 4,089,253 10,633,325 - -

Interest income 2,828,475 2,122,042 750,164 882,9236,917,728 12,755,367 750,164 882,923

b. Available-for-salefinancialassets


$ $ $ $Beginningoffinancialyear 87,665,442 84,418,387 - -Additions 4,416,441 32,579,316 - -Disposals (37,965,523) (12,124,164) - -Fair value adjustments 2,926,307 (17,208,097) - -Endoffinancialyear 57,042,667 87,665,442 - -

Atbalancesheetdate,thefairvalueofavailableforsalefinancialassetswas$10,094,380belowcost.This amount has been transferred to the Income Statement in accordance with note 1(i).

Theproceedsfromdisposals(asshowninthecashflowstatement)havebeeninvestedincashandcashequivalent investments.

Market value consists of initial cost of purchase plus / (less) market movements and can be reconciled as follows:


$ $ $ $

Beginningoffinancialyear–cost 100,686,129 79,696,803 - -

Beginningoffinancialyear–unrealised movements (13,020,687) 4,721,584 - -

Opening market value 87,665,442 84,418,387 - -

Additional at cost 4,416,441 32,579,316 - -

Disposals at cost (37,965,523) (12,124,164) - -

Realised loss / (gain) on disposal – current year 11,026,861 2,618,429 - -

Transfer between cost and unrealised adjustment - (534,174) - -

Market movements (8,100,554) (19,826,526) - -

Endoffinancialyear–cost 67,137,047 100,686,129 - -

Endoffinancialyear–unrealisedmovements (10,094,380) (13,020,687) - -

Closing market value 57,042,667 87,665,442 - -


6. Membership and practitioner fees

Consolidated Parent Entity2009 2008 2009 2008

$ $ $ $Practisingcertificatefees 3,529,464 3,307,990 3,529,464 3,307,990Member fees 2,809,502 2,613,500 2,809,502 2,613,500Certificateoffitness 16,773 17,191 16,773 17,191Late application levy 3,820 5,360 3,820 5,360Corporate marketing levy 272,690 267,310 272,690 267,310

6,632,249 6,211,351 6,632,249 6,211,351

7. Rent and administration revenue


$ $ $ $Management fees - - 292,000 251,250Law Claims Levy Fund - - 20,000 -Legal Practitioners Fidelity Guarantee Fund 48,000 48,000 48,000 48,000

Legal Practitioners Admissions Board 239,361 277,602 239,361 277,602Rent 96,801 61,680 96,801 61,680Car parking 124,360 87,214 124,360 87,214

508,522 474,496 820,522 725,746

8. Membership services and events


$ $ $ $IncomePractice management course 411,791 400,039 411,791 400,039Publications 50,154 49,622 50,154 49,622QLS diary 212,643 249,224 212,643 249,224Seminars 2,073,876 1,828,182 2,073,876 1,828,182College of Law commission 279,225 236,316 279,225 236,316Specialist accreditation 124,012 245,894 124,012 245,894Resources, texts and course material 406,014 341,544 406,014 341,544School and student services 40,495 33,838 40,495 33,838Events and functions 66,317 21,500 66,317 21,500Proctor advertising and subscription 456,569 527,889 456,569 527,889Marketing and sponsorship 222,597 165,439 222,597 165,439

4,343,693 4,099,487 4,343,693 4,099,487

Direct expenditure (exclude staff costs)Library services resources - 95,651 - 95,651Practice management course 74,191 76,926 74,191 76,926QLS diary 83,429 106,266 83,429 106,266Seminars 998,692 879,933 998,692 879,933Specialist accreditation 10,839 23,227 10,839 23,227Resources, texts and course material 153,699 102,989 153,699 102,989School and student services 48,171 40,462 48,171 40,462Events and functions 90,717 51,903 90,717 51,903Membership product and services 286,717 200,896 286,717 200,896Proctor expenses 335,002 273,383 335,002 273,383Marketing and sponsorship 7,766 3,270 7,766 3,270

2,089,223 1,854,906 2,089,223 1,854,906


9. Administration expenses


$ $ $ $

Advertising 73,613 130,351 73,613 130,351

Actuarial fees 101,181 127,452 - -Audit fees 143,556 132,978 67,902 90,968Bad debts 2,819 5,452 2,819 5,452Captive managers fee 85,000 70,000 - -Catering, functions and entertainment 73,278 77,602 65,338 72,857Complaint investigations 1,992 1,553 1,992 1,553Depreciation – computers 8,573 31,261 8,573 6,499Depreciation – plant and equipment 137,238 101,483 106,326 101,483Directors fees 302,100 143,025 - -District law association sponsorships 12,815 1,500 12,815 1,500Electricity 91,806 78,775 91,806 78,775Fringebenefitstax 146,899 104,132 129,148 92,406Fees and charges 75,697 76,799 75,697 74,885Foreign exchange (30,347) 4,572 - -Insurance 269,255 250,154 182,805 184,875Information technology and related costs 716,208 671,940 716,208 622,734Investment managers fees 97,562 138,322 - -Law Asia 75,000 100,000 75000 100,000Law society houseBody corporate levies 204,459 156,390 204,459 156,390Depreciation – strata title building 425,000 426,106 425,000 426,106Rates and taxes 71,294 103,051 71,294 103,051Lease payments 174,178 159,332 - -Motor vehicle expense 9,042 11,392 9,042 11,392Offsite storage 75,325 77,209 75,325 77,209Payroll tax 436,502 349,534 353,487 349,534Postage 97,315 129,208 97,315 124,714Presentations, donations and gifts 56,233 32,002 56,233 32,002Provision for doubtful debts 153,875 (97,500) - -Printing and stationery 206,567 180,230 181,893 155,712Professional and consulting fees 1,079,965 701,426 685,643 448,272Registrations and subscriptions 84,895 96,332 66,063 64,435Repairs and maintenance 180,940 204,704 180,940 204,704Salaries and wages 8,328,565 7,221,462 6,898,209 6,053,305Secretarial fees 33,796 44,812 - -Solicitors complaints tribunal 2,696 12,051 2,696 12,051Staff – other costs 35,050 32,821 32,129 32,821Staff advertising 970 2,532 970 2,532Staff amenities 19,837 16,746 15,301 16,746Staff training 74,019 50,104 43,955 50,104Sundry expenses 64,939 35,413 34,358 30,745Superannuation 722,658 623,931 607,610 540,996Tax consulting 29,403 40,227 - -Taxis and couriers 24,555 32,163 24,555 32,163Telephone 103,041 103,391 77,944 82,701Travelling expenses 210,314 191,263 71,866 56,751Trust account audits 16,540 13,036 16,540 13,036

15,306,218 13,196,719 11,842,869 10,641,810


10. Council and committee costs


$ $ $ $

Travel and accommodation 205,223 160,118 205,223 160,118

Honorarium 290,667 290,667 290,667 290,667Convocation 7,480 4,317 7,480 4,317Catering and functions 103,596 133,917 103,596 133,917

606,966 589,019 606,966 589,019

11. Provision for outstanding claims


$ $ $ $Opening gross outstanding claims 64,876,846 64,218,102 - -Claims incurred 29,980,255 14,900,450 - -Claims paid during the year (18,926,751) (14,455,706) - -Movement in claims handling provision 552,000 214,000 - -Closing gross outstanding claims 76,482,350 64,876,846 - -

Opening reinsurance recoveries (7,814,000) (8,582,000) - -Movement in reinsurance recoveries (9,054,058) 738,110 - -Reinsurance recoveries received 191,058 29,890Closing reinsurance recoveries (16,677,000) (7,814,000) - -

Net outstanding claims 59,805,350 57,062,846 - -

Current liability 17,665,000 16,110,846 - -Non-current liability 58,817,350 48,766,000 - -Non current recoveries (16,677,000) (7,814,000) - -

59,805,350 57,062,846 - -

Law Claims Levy Fund 895,000 921,846 - -Lexon Insurance Pte Ltd 58,910,350 56,141,000 - -

59,805,350 57,062,846 - -

Movements in profit and loss account:Outstanding claimsClaims incurred 29,980,255 14,900,450 - -Movement in excesses due (342,619) - - -Claims paid during the year (18,926,751) (14,455,706) - -

10,710,885 444,744 - -Reinsurance recoveriesMovement in reinsurance recoveries (9,054,058) 738,110 - -Recoveries received during the year 191,058 29,890 - -

(8,863,000) 768,000 - -

The Law Claims Levy Fund has stop loss insurance that capped the fund’s liability at $5,000,000 for payments made after 1 July 2002.

Lexon Insurance Pte Ltd and the Law Claims Levy Fund has assessed the provisions for outstanding claims based upon an independent actuarial assessment as at 30 June 2009 by Mr. Andrew Cohen (FIAA) and Mr. Kane Bolton (FIAA), of Finity Consulting Pty Ltd. The key assumptions are detailed in note 2.


11. Provision for outstanding claims (continued)

Less than 1 year

1 to 5 years

Over 5 years Total

Gross central estimate 18,287,000 39,792,000 11,570,350 69,649,350Reinsurance recoveries (622,000) (7,337,000) (8,718,000) (16,677,000)Net central estimate 17,665,000 32,455,000 2,852,350 52,972,350

Risk margins 2,629,000Claims handling 4,204,000Net claims outstanding 59,805,350

12. Receivables and prepayments


$ $ $ $Accounts receivables 863,187 518,420 205,312 203,164Less: provision for doubtful debts (153,875) - - -

709,312 518,420 205,312 203,164

Prepaid expenses and other receivables 1,024,380 1,208,330 823,886 1,047,9151,733,692 1,726,750 1,029,198 1,251,079

13. Payables


$ $ $ $Creditors 347,060 190,887 341,340 190,887Income in advance 36,848,340 31,093,492 8,762,621 6,311,895Other payments & accruals 3,392,356 4,114,985 2,974,727 3,764,306

40,587,756 35,399,364 12,078,688 10,267,088

Incomeinadvancerelatesprimarilytoreceiptsforinsurance,membershipfeesandpracticingcertificatesreceived prior to year end during the renewal period for the upcoming year.


14. Property plant and equipment

Parent Entity

Strata Title Building

$

Plant and Equipment

$

Computer Equipment

$ Total

$ 2007/08 Cost or valuation At the beginning of the year 17,044,225 1,108,783 365,187 18,518,195 Additions - 30,410 21,804 52,214 Revaluations/other 688,024 - - 688,024 At the end of the year 17,732,249 1,139,193 386,991 19,258,433 Depreciation At the beginning of the year (2,958,560) (712,758) (360,856) (4,032,174) Charge for the year (426,106) (101,483) (6,500) (534,089) Revaluations/other (136,629) - - (136,629) At the end of the year (3,521,295) (814,241) (367,356) (4,702,892) Net book value at 30 June 2008 14,210,954 324,952 19,635 14,555,541

2008/09 Cost or valuation At the beginning of the year 17,732,249 1,139,193 386,991 19,258,433 Additions 4,993,550 38,814 27,744 5,060,108 Revaluations/other 1,114,646 - - 1,114,646 At the end of the year 23,840,445 1,178,007 414,735 25,433,187 Depreciation At the beginning of the year (3,521,295) (814,241) (367,356) (4,702,892) Charge for the year (425,000) (106,326) (8,573) (539,899) Revaluations/other 3,946,295 - - 3,946,295 At the end of the year - (920,567) (375,929) (1,296,496) Net book value at 30 June 2009 23,840,445 257,440 38,806 24,136,691

Property, plant and equipment is stated as follows: 30 June 2008 At valuation 17,732,249 - - 17,732,249 At cost - 1,139,193 386,991 1,526,184

17,732,249 1,139,193 386,991 19,258,433 Depreciation (3,521,295) (814,241) (367,356) (4,702,892)

14,210,954 324,952 19,635 14,555,541 30 June 2009 At valuation 23,840,445 - - 23,840,445 At cost - 1,178,007 414,735 1,592,742

23,840,445 1,178,007 414,735 25,433,187Depreciation - (920,567) (375,929) (1,296,496)

23,840,445 257,440 38,806 24,136,691


14. Property plant and equipment (continued)

Consolidated

Strata Title Plant and Computer Building Equipment Equipment Total

$ $ $ $ 2007/08 Cost or valuation At the beginning of the year 17,044,225 1,181,378 438,625 18,664,228 Additions - 30,410 24,341 54,751 Revaluations/other 688,024 - - 688,024 At the end of the year 17,732,249 1,211,788 462,966 19,407,003 Depreciation At the beginning of the year (2,958,560) (740,568) (434,294) (4,133,422) Charge for the year (426,106) (126,245) (6,500) (558,851) Revaluations/other (136,629) - - (136,629) At the end of the year (3,521,295) (866,813) (440,794) (4,828,902) Net book value at 30 June 2008 14,210,954 344,975 22,172 14,578,101

2008/09 Cost or valuation At the beginning of the year 17,732,249 1,211,788 462,966 19,407,003 Additions 4,993,550 96,901 27,744 5,118,195 Revaluations/other 1,114,646 - - 1,114,646 At the end of the year 23,840,445 1,308,689 490,710 25,639,844 Depreciation At the beginning of the year (3,521,295) (866,813) (440,794) (4,828,902) Charge for the year (425,000) (137,238) (8,573) (570,811) Revaluations/other 3,946,295 - - 3,946,295 At the end of the year - (1,004,051) (449,367) (1,453,418) Net book value at 30 June 2009 23,840,445 304,638 41,343 24,186,426

Property, plant and equipment is stated as follows: 30 June 2008 At valuation 17,732,249 - - 17,732,249 At cost - 1,211,788 462,966 1,674,754

17,732,249 1,211,788 462,966 19,407,003Depreciation (3,521,295) (866,813) (440,794) (4,828,902)

14,210,954 344,975 22,172 14,578,101

30 June 2009 At valuation 23,840,445 - - 23,840,445 At cost - 1,308,689 490,710 1,799,399

23,840,445 1,308,689 490,710 25,639,844Depreciation - (1,004,051) (449,367) (1,453,418)

23,840,445 304,638 41,343 24,186,426

An independent valuation of the strata title building was carried out as at 30 June 2009 by Mr S Fox AAPI and was on the basis of the open market value of Law Society House in vacant possession with all units combined.

The Society has plant and equipment with an original cost of $778,356 written down value of zero still being used in the provision of services.


15. Reserves


$ $ $ $Asset revaluation 16,872,883 11,811,943 16,872,883 11,811,943Fair value - (9,815,510) - -Retained surplus 56,814,355 65,811,985 29,536,730 19,181,876Closing balance at end of year 73,687,238 67,808,418 46,409,613 30,993,819

16. Accrued employee benefits


$ $ $ $CurrentAnnual leave – opening balance 589,989 520,097 492,996 471,083Leave taken (787,737) (470,803) (490,373) (421,789)Leave accrued 841,844 540,695 557,869 443,702Annual leave – closing balance 644,096 589,989 560,492 492,996

Non-current

Provision for long service leave 481,808 433,332 473,824 431,858Leave taken (6,586) (36,905) (6,586) (36,905)Leave accrued 114,942 85,381 107,461 78,871Long service leave – closing balance 590,164 481,808 574,699 473,824

Number of parent entity employees at year end 97 97

17. Commitments

a. Operating leases


$ $ $ $Within one year 169,082 170,026 8,785 16,315Onetofiveyears 161,029 321,324 - -

330,111 491,350 8,785 16,315

b. Capital leasesCapital expenditure contracted for at 30 June 2009 but not provided for was nil (2008 – nil).

Wearecurrentlynegotiatingforanofficerefurbishmentwhichhasananticipatedcostof$5.5m.


18. Related party transactions

a. ThefollowingsignificanttransactionstookplacebetweentheConsolidatedGroupandrelatedpartiesduringthefinancialperiodoncommercialtermsagreedbythepartiesconcerned.

2009 2008$ $

Management fees paid by Lexon Insurance Pte Ltd to parent entity 247,000 240,000

Management fees paid by Law Claims Levy Fund to parent entity 20,000 -

Directors fees paid by Lexon Insurance Pte Ltd to parent entity 45,000 11,025

Gross premiums received by Lexon Insurance Pte Ltd from Law Claims Levy Fund 19,655,000 21,500,000

ProfessionalfeespaidtoafirmofwhichadirectorisamemberLegal fees in the provision of claim defence costs:

– Coyne & Associates 675,161 675,446– Flower & Hart 117,189 162,627– Ferguson Cannon 22,284 10,569Other non claim professional advice provided:– Coyne & Associates 1,365 84,240– Flower & Hart 79,958 21,412

Managementfeespaidtoafirmofwhichadirectorisamember

– AON Insurance Managers (Singapore) Pte Ltd85,000 70,000

Brokeragefeespaidtoafirmofwhichadirectorisamember

– AON Re Australia Limited160,000 150,000

Commissions derived from renewal of insurance policies– RJ Neville & Associates

9,800 9,830

Purchase of additional shares in Lexon Insurance Pte Ltd 10,000,000 -Secondment of staff from Coyne & Associates - 32,728

b. Key management personnel compensation


$ $ $ $Directors fees 302,100 143,025 - -

Honorarium fees paid to President & Deputy President 290,667 290,667 290,667 290,667

Otherofficers:

–Salariesandothershorttermemploymentbenefits 1,624,110 1,344,421 973,512 952,327

– Superannuation 130,236 119,067 84,555 90,474

During the year the parent entity management personnel were:

MsNoelaL’Estrange-ChiefExecutiveOfficer(appointed11May2009) Mr Peter Lyons - Director of Member Central Mrs Patricia Linn - Director of People and Organisational Performance MrAnthonyWalduck–GroupChiefFinancialOfficer Mr Scott Rowan – Director of Information Technology Mr Malcolm Hinton - General Counsel Mr Peter Carne (resigned 6 February 2009)

The consolidated results include the following Lexon Insurance Pte Ltd management personnel:

MrMichaelYoung–ChiefExecutiveOfficer Mr David Durham – Risk Manager Mr Nick Burkett – Claims Counsel Mr David Pitt – Underwriter


19. Contingent liabilities

All known insurance claims have been actuarially assessed and expected liabilities have been brought to account as Provision for Outstanding Claims.

Therearenootherknowncontingentliabilitiesofasignificantnatureatbalancedate.

20. Notes to the statement of cash flows

a. Reconciliation of cashForthepurposesofthecashflowstatement,cashincludescashonhandandinbanksandinvestmentsinmoneymarketinstruments,netofoutstandingbankoverdrafts.Cashattheendofthefinancialyearasshowninthestatementofcashflowsisreconciledtotherelateditemsinthebalancesheetasfollows:


$ $ $ $Cash at bank 21,508,655 26,608,018 1,279,069 599,393Cash deposit accounts 47,581,993 18,098,540 11,178,534 10,821,714

Cash included in cash flow statement 69,090,648 44,706,558 12,457,603 11,421,107

Term deposit 16,000,000 10,000,000 3,000,000 6,000,000Total cash & cash equivalents 85,090,648 54,706,558 15,457,603 17,421,107

b. Financing facilitiesTheSocietyhasnocreditfacilitywithanyfinancialinstitutiontomeetanyfinancingrequirements.

c. Reconciliation of net cash provided by operating activities to the surplus / (deficit) for the year


$ $ $ $Surplus / (deficiency) for the year (8,997,630) 16,004,145 354,854 1,698,854

Adjustments for:Investment income 16,704,799 (8,756,641) - -

Add/(less) non-cash itemsDepreciation 570,811 558,850 539,899 534,088

Change in assets and liabilities

(Increase) / decrease in assets Accounts receivables (1,807) 37,163 221,881 128,922

Increase / (decrease) in liabilities

Accounts payables & unearned income 5,182,957 (952,190) 2,003,656 2,029,698

Employeebenefits 162,462 63,879 168,371 63,879Collections for society entities - - (192,058) (2,514,978)Provision for outstanding claims 2,742,504 1,426,744 - -Tax related balances (7,800,474) (3,193,970)Solicitors deductibles - - - -Net cash provided by / (used in) operating activities 8,563,622 5,187,980 3,096,603 1,940,463


21. Income tax expense


$ $ $ $Taxexpenseattributabletoprofitismadeup of:

Current income tax - 982,651 - -Deferred income tax (Note 23) (6,313,343) (34,000) - -

(6,313,343) 948,651(Over) / Under Provision in preceding financialyearsCurrent income tax (432,303) 155,426 - -Deferred income tax (Note 23) - - - -

(6,745,646) 1,104,077 - -

Lexon Insurance Pte Ltd has dual tax residency in Australia and Singapore. In relation to offshore insurance business, the Company has been granted tax exempt status for a period of 10 years from 17 February 2006 to 16 February 2016 under the tax exemption scheme for captive insurers by the Monetary Authority of Singapore.

Thetaxexpenseonprofitdiffersfromtheamountthatwouldariseusingthestandardtaxrateduetothefollowing:


$ $ $ $Profit/(loss)beforetax (15,743,276) 17,108,222 - -

Taxcalculatedatataxrateof30% (2008:30%) (4,722,983) 5,132,467 - -

Effects of:Income not subject to tax (1,888,759) (3,768,972) - -Tax free distributions on investments (Note 23) (10,551) (38,208) - -

Utilisation of tax losses previously unrecognised - - - -

Expenses not deductible for tax 432,303 - - -Franking credits available (123,353) (376,636) - -

(6,313,343) 948,651 - -


22. Current income tax liability


$ $ $ $Income tax at the beginning of the financialyear 490,390 3,650,359 - -

Income tax paid (1,054,940) (4,298,046) - -Prior year under / (over) provision (432,303) 155,426 - -Current year income tax - 982,651 - -Income tax at the end of the financialyear (996,853) 490,390 - -

23. Deferred income tax balances

The movement in the deferred income tax accounts are as follows:


$ $ $ $Net balance at beginning of the financialyear 3,155,963 (1,440,647) - -

Current year tax charge to income statement 6,313,343 34,000 - -

Prior year tax charge to income statement - - - -

Charged to fair value reserve (3,204,988) 4,562,610 - -Net balance at end of the financialyear 6,264,318 3,155,963 - -

The balance comprises temporary differences attributable to:


$ $ $ $Deferred tax assets

– Balance at beginning of the financialyear 3,248,031 47,250 - -

Charge to income statement– Other timing differences (25,742) 43,043 - -– Income losses carried forward 1,431,163 -– Capital losses carried forward 2,784,093 -– Unrealised investment losses 2,067,124 -– Gain/(loss) in fair value of

investments (3,204,988) 3,204,988

– Allowance for impairment of receivables 46,153 (47,250) - -

6,345,834 3,248,031 - -

Deferred tax liabilities– Balance at beginning of the financialyear (92,067) (1,487,897) - -

Charge to equity– Gain/(loss) in fair value reserve - 1,357,622 - -

Charge to income statement– Tax-free distribution on

Investments 10,551 38,208 - -

(81,516) (92,067) - -Netbalanceatendofthefinancialyear 6,264,318 3,155,964 - -


Declaration of Queensland Law Society Incorporated

Thegeneral-purposefinancialreporthasbeenpreparedpursuanttosection46F(5)oftheFinancial Administration and Audit Act 1977 (the Act) and other prescribed requirements. In accordance with section 46F(3) of the Act we certify that in our opinion:

a. theforegoingfinancialstatementswithotherinformationandnotestoandformingpartthereofareinagreement with the accounts and records of the Queensland Law Society Incorporated and its controlled entities; and

b. in our opinion –

i. the prescribed requirements in respect of the establishment and keeping of accounts have been complied with in all material respects; and

ii. theforegoingfinancialstatementshavebeendrawnupsoastopresentatrueandfairviewinaccordance with prescribed accounting standards of the transactions of the Queensland Law Society Incorporatedanditscontrolledentitiesfortheperiod1July2008to30June2009andofthefinancialposition as at the close of that period.

President Ian Berry

ChiefExecutiveOfficer Noela L’Estrange

31 August 2009


To the Council of the Queensland Law Society Incorporated

Matters Relating to the Electronic Presentation of the Audited Financial Report

TheauditreportrelatestothefinancialreportofQueenslandLawSocietyIncorporatedforthefinancialyearended 30 June 2009 included on Queensland Law Society Incorporated web site. The Council members are responsible for the integrity of the Queensland Law Society Incorporated web site. We have not been engaged to report on the integrity of Queensland Law Society Incorporated web site. The audit report refers only to the statements named below. It does not provide an opinion on any other information which may have beenhyperlinkedto/fromthesestatements.Ifusersofthefinancialreportareconcernedwiththeinherentrisks arising from electronic data communications they are advised to refer to the hard copy of the audited financialreport,availablefromQueenslandLawSocietyIncorporated,toconfirmtheinformationincludedintheauditedfinancialreportpresentedonthiswebsite.

ThesemattersalsorelatetothepresentationoftheauditedfinancialreportinotherelectronicmediaincludingCD Rom.

Report on the Financial Report

IhaveauditedtheaccompanyingfinancialreportofQueenslandLawSocietyIncorporated,whichcomprisesthe balance sheet as at 30 June 2009 and the income statement, statement of changes in equity and cashflowstatementfortheyearendedonthatdate,asummaryofsignificantaccountingpolicies,otherexplanatorynotesandcertificatesgivenbythePresidentoftheCouncilandofficerresponsibleforthefinancialadministrationoftheconsolidatedentitycomprisingtheQueenslandLawSocietyIncorporatedandtheentitiesitcontrolledattheyear’sendorfromtimetotimeduringthefinancialyear.

The Council’s Responsibility for the Financial Report

TheCouncilisresponsibleforthepreparationandfairpresentationofthefinancialreportinaccordancewithprescribedaccountingrequirementsidentifiedintheFinancial Administration and Audit Act 1977 and the Financial Management Standard 1997 including compliance with applicable Australian Accounting Standards (including the Australian Accounting Interpretations). This responsibility includes designing, implementing andmaintaininginternalcontrolsrelevanttothepreparationandfairpresentationofthefinancialreportthat is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

Myresponsibilityistoexpressanopiniononthefinancialreportbasedontheaudit.Theauditwasconductedin accordance with Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. These Auditing Standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance whether thefinancialreportisfreefrommaterialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financialreport.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentofrisksofmaterialmisstatementinthefinancialreport,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsiderstheentity’spreparationandfairpresentationofthefinancialreportin order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control, other than in expressing an opinion on compliance with prescribed requirements. An audit also includes evaluating the appropriateness of accounting policies and the reasonableness of accounting estimates made by the Society, as well as evaluatingtheoverallpresentationofthefinancialreportandanymandatoryfinancialreportingrequirementsas approved by the Treasurer for application in Queensland.

Ibelievethattheauditevidenceobtainedissufficientandappropriatetoprovideabasisformyauditopinion.

Independent Auditors Report


Independence

The Auditor-General Act 2009 promotes the independence of the Auditor General and QAO authorised auditors. The Auditor-General is the auditor of all Queensland public sector entities and can only be removed by Parliament.

The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised.

The Auditor-General has for the purposes of conducting an audit, access to all documents and property and canreporttoParliamentmatterswhichintheAuditor-General’sopinionaresignificant.

Auditor’s Opinion

In accordance with s40 of the Auditor-General Act 2009 –

a. I have received all the information and explanations which I have required; and

b. in my opinion –

i. the prescribed requirements in respect of the establishment and keeping of accounts have been complied with in all material respects; and

ii. thefinancialreporthasbeendrawnupsoastopresentatrueandfairview,inaccordancewiththeprescribed accounting standards of the transactions of the Queensland Law Society Incorporated andtheconsolidatedentityforthefinancialyear1July2008to30June2009andofthefinancialposition as at the end of that year.

GARY PAUL SMITH FCPA Appointed Auditor As Delegate of the Auditor-General of Queensland Brisbane

GPS Business Services CertifiedPractisingAccountants Suite 3 118 Vulture Street South Brisbane Qld 4101

31 August 2009


Queensland Law Society Incorporated Legal Practitioners’ Fidelity Guarantee Fund


2009 2008

NOTES $ $

Revenue

Practitioner fees 2 2,434,386 2,311,866

Interest on investments 531,336 494,688

Costs recovered 3 10,994 1,876

Total revenue 2,976,716 2,808,430

Expenses

Administration expenses 4 145,324 132,199

Claims approved for payment 1,209,278 87,243

Notifiedclaims 569,138 59,733

Claim costs 27,983 5,939

Expenses reimbursed to the Queensland Law Society 5 36,000 36,000

Receivership costs 117,577 12,702

Total expenses 2,105,300 333,816

Operating surplus 871,416 2,474,614



2009 2008

NOTES $ $

Current assets

Cash and cash equivalents 11(a) 11,901,586 9,582,298

Receivables 6 52,671 81,640

Total current assets 11,954,257 9,663,938

Total assets 11,954,257 9,663,938

Current liabilities

Payables 7 786,255 100,734

Income in advance 8 2,207,167 2,048,590

Provisionfornotifiedclaims 9 2,332,631 1,763,492

Accruedemployeebenefits 10 13,157 10,885

Total current liabilities 5,339,210 3,923,701

Non-current liabilities

Accruedemployeebenefits 10 29,331 25,937

Total non-current liabilities 29,331 25,937

Total liabilities 5,368,541 3,949,638

Net assets 6,585,716 5,714,300

Equity

Retained surplus 6,585,716 5,714,300

Total equity 6,585,716 5,714,300


Balance Sheetas at 30 June 2009




Statement of Changes In Equityfor the year ended 30 June 2009

2009 2008$ $

Balance at 1 July 2008 5,714,300 3,239,686

Operating surplus for the period 871,416 2,474,614

Balance at 30 June 2009 6,585,716 5,714,300



2009 2008NOTES $ $

Inflows Inflows(Outflows) (Outflows)

Cash flows from operating activitiesContributions by practitioners and cost recoveries 2,592,962 2,371,116Claim payments and administration expenses (834,323) (323,145)Interest received 560,649 468,600Net cash provided by/(used in) operating activities 11(c) 2,319,288 2,516,571

Net increase/(decrease) in cash held 2,319,288 2,516,571Cash at the beginning of the financial year 9,582,298 7,065,727Cash at the end of the financial year 11(a) 11,901,586 9,582,298



Objectives and Principal Activities

The Queensland Law Society Incorporated (‘the Society’), pursuant to s359 of the Legal Profession Act 2007 (‘the Act’) is required to continue the existence of a fund called the Legal Practitioners’ Fidelity Guarantee Fund (the ‘Fund’) as was required under s12 of the Queensland Law Society Act 1952. The Fund has been established for the purposes of providing a source of compensation for defaults by law practices arising from acts or omissions of associates of the law practices. The major source of income for the Fund is contributions from legal practitioners.

1 Summary of significant accounting policies

(a) Basis of accountingThefinancialreportisaGeneralPurposeFinancialReportwhich has been prepared in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) of the Australian Accounting Standards Board and comply with the Treasurer’s minimum reporting requirements for the year ending 30 June 2009, and other authoritative pronouncements.


(b) TaxationThe Fund is exempt from income tax by virtue of section 50-25 of the Income Tax Assessment Act 1997 with the exceptionofFringeBenefitsTax(FBT)andtheGoodsandServices 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 ATO. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the Balance Sheet.

Cashflowsareincludedinthecashflowstatementonagrossbasis.TheGSTcomponentsofcashflowsarisingfrominvestingactivitiesandfinancingactivitieswhicharerecoverablefrom,orpayableto,theATOareclassifiedasoperatingcashflows.

(c) RevenueRevenues are recognised at fair value of the consideration received net of any amount of GST payable to the ATO. Practitioner Fees are recognised when payment is received. Interest revenue is recognised as it accrues, taking into accounttheeffectiveyieldonthefinancialassetandisalsorecognised net of bank charges.

(d) Use and revision of accounting estimatesThepreparationofthefinancialreportrequiresthemakingof estimations and assumptions that affect the recognised amounts of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

(e) Cash and cash equivalentsFor the purposes of the Balance Sheet and Cash Flow Statement, cash assets include all cash and cheques receipted but not banked at 30 June as well as deposits on callwithfinancialinstitutions.TheCashDepositAccountand Term Deposit Account are interest bearing accounts which are readily convertible to cash on hand at the Society’s option. These investments are brought to account at fair value as indicated in note 11(a).

(f) ReceivablesInterest receivable represents interest accruals for amounts received in the month after balance date.

The Fund has brought to account Fines and Cost Recoveries receivable from practitioners. These receivables have been recognised on an accrual basis and are carried at actual amounts and the collectability of trade debtors is assessed at reporting date and with provision being made for impairment.

(g) PayablesTrade creditors are recognised on receipt of the goods or services and are carried at actual amounts, gross of applicable trade and other discounts. Amounts are unsecured and are generally settled on 30 day terms.

(h) Employee benefitsAnnual leaveAnnual leave entitlements represent present obligations resulting from services provided by employees up to balance date, calculated at undiscounted amounts based on remuneration rates that the entity expects to pay as at reporting date including related on-costs, such as, employer superannuation contributions, and payroll tax.

Sick leavePrior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to recur in future periods and therefore it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised.


Notes to and forming part of the Financial Statementsfor the year ended 30 June 2009


1 Summary of significant accounting policies (continued)

(h) Employee benefits (continued)Long service leaveTheprovisionforemployeebenefitsforlongserviceleaverepresents the present value of the estimated future cash outflowstobemaderesultingfromemployees’servicesprovided to reporting date.

The provision is calculated using expected future increases in remuneration rates including related on-costs and is based on experience of employee departure per year of service. Long service leave expected to be paid in the next 12 months is recorded as a current liability in the Balance Sheet. Long service leave expected to be paid later than one year is recorded as a non-current liability and is discounted using the Commonwealth Bond rate at reporting date which most closely match the terms of maturity of the related liabilities. The unwinding of the discount is treated as long service leave expense.

(i) Provision for notified claimsClaimsarebroughttoaccountintheyeartheyarenotified.

(j) Income in advanceIncome in advance relates to Fidelity Fund Levies collected fromtheprofessioninrelationtotheupcomingfinancialyear(ie current year levies in advance relate to collections for the financialyear1July2009to30June2010).

(k) Judgements and assumptionsThe entity has made no judgements or assumptions which may cause a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

(l) New and revised accounting standardsNo Australian accounting standards and interpretations issuedoramendedandapplicableforthefirsttimeinthe2008/09financialyearhaveaneffectontheFund.Also,the Fund has not voluntarily changed any of its accounting policies.

The Fund is not permitted to adopt a new accounting standardaheadofthespecifiedcommencementdateunless approval is obtained from the Treasury Department. Consequently, the Fund has not applied any Australian accounting standards and interpretations that have been issued but are not yet effective. The Fund will apply these standards and interpretations in accordance with their respective commencement dates.

All other Australian accounting standards and interpretations with future commencement dates are either not applicable to the Fund, or have no material impact on the Fund.

2 Practitioner fees

WithaviewtoensuringthattheFundisabletomeetitsfinancialcommitments when they fall due, the Council of the Queensland Law Society Incorporated resolved to levy each practitioner $335 (2008 - $330) in accordance with s156 of the Act.

3 Costs recovered

2009 2008$ $

Defaulting practitioners 10,994 1,87610,994 1,876

4 Administration expenses

2009 2008$ $

Audit fees – Fidelity Fund 9,500 9,110

Bank charges 120 121Payroll tax 4,770 4,785Professional fees 12,150 6,280Rent and electricity 12,000 12,000Salaries 97,795 91,130Superannuation 8,292 7,912Telephone 697 861

145,324 132,199

5 Expenses reimbursed to the Queensland Law Society Incorporated

The Fund, pursuant to s152 of the Act, is required to reimburse the Society for all costs and expenses incurred in the administration of the Fund. The Society performs all managerial and administrative tasks on behalf of the Fund.

2009 2008$ $

Administration fees 36,000 36,00036,000 36,000

6 Receivables

2009 2008$ $

Interest receivable 52,052 81,365GST receivable 619 275

52,671 81,640

7 Payables

2009 2008$ $

Approved claims 775,756 88,834Other payables and accruals 10,499 11,900

786,255 100,734

8 Income in advance

2009 2008$ $

Fidelity guarantee fee for upcoming year 2,207,167 2,048,590

2,207,167 2,048,590

9 Provision for notified claims

2009 2008$ $

Notifiedclaims 2,332,631 1,763,4922,332,631 1,763,492

Notifiedclaimsrepresenttheestimatedliabilityinrelationtoclaimswhichhavebeennotifiedbutnotyetadmittedasaclaim. Once the claim has been admitted, they are disclosed as approved claims included in note 7.


10 Accrued employee benefits

2009 2008$ $

CurrentProvision for annual leave 13,157 10,885

13,157 10,885Non-current

Provision for long service leave 29,331 25,93729,331 25,937

Number of employees at year end 1 1

11 Notes to the cash flow statement

(a) Reconciliation of cashForthepurposesofthecashflowstatement,cashincludescash on hand and in banks and investments on money market instruments, net of outstanding bank overdrafts. Cashattheendofthefinancialyearasshowninthecashflowstatementisreconciledtotherelateditemsinthebalance sheet as follows:

2009 2008$ $

Cash assets 2,291,007 1,518,399Cash deposit account 2,035,305 3,513,899Term deposit account 7,575,274 4,550,000

11,901,586 9,582,298

(b) Financing facilitiesTheFundhasnoexternalnon-cashfinancingoranystandbycredit facilities or any other loan facilities.

(c) Reconciliation of net cash provided by/(used in) operating activities to the operating surplus/(deficit) for the year

2009 2008$ $

Operationssurplus/(deficit) 871,416 2,474,614

Changes in assets and liabilities:(Increase)/decrease in receivables 28,969 (24,711)

(Decrease)/increase in creditors & claims 1,413,237 63,446

(Decrease)/increase in employee entitlements 5,666 3,222

Net cash provided by/(used in) operating activities 2,319,288 2,516,571

12 Contingent liabilities

There are no known contingencies at balance date (2008 - nil).

13 Operating lease expense commitments

The Fund has no operating lease commitments (2008 – nil).

14 Financial risk

TheFund’sactivitiesexposeittoavarietyoffinancialrisks:market risk (currency risk, price risk and interest rate risk), credit risk and liquidity risk.

(a) Currency riskThe Fund is not exposed to any foreign currency risk.

(b) Price and interest rate riskThe funds are invested reputable Australian banks. Investmentsincludedfixedtermdepositswhicharenotsubject to interest rate or price risk.

(c) Credit riskThereisnosignificantcreditriskwithrespecttothecollectability of levies as the levy is compulsory. All levies are paid up front at the commencement of the period.

Credit risk arising on funds placed on term deposit is managed by ensuring funds are only placed with reputable institutions.

(i) Financial assets that are neither past due or impairedAtthebalancesheetdatenofinancialassetsarepastdue or impaired.

(ii) Financial assets that are past due and/or impairedNofinancialassetsarepastdue

(d) Liquidity riskIn the management of liquidity risks, the Fund monitors and maintains a level of cash and cash equivalents deemed adequatebymanagementtofinancetheFund’soperationsandmitigatetheeffectsoffluctuationsincashflows.TheFund also constantly reviews its investment to ensure that therearesufficientcashandliquiddepositstomeetitsestimatedoutflows.

Asatbalancesheetdate,theFund’sfinancialliabilitiesareall current.

(e) Interest Rate SensitivityThefunddoesnotholdanyfinancialinstrumentssubjecttointerest rate variability.

(f) Fair value The carrying amount of cash and cash equivalent, receivables, payables and lease liabilities approximate their fair value and are not disclosed separately.


Theforegoingfinancialstatementshavebeenpreparedpursuanttos365oftheQueensland Legal Profession Act 2007 and other prescribed requirements and we certify that –

(a) theforegoingfinancialstatementswithotherinformationandnotestoandformingpartthereofareinagreement with the accounts and records of the Legal Practitioners’ Fidelity Guarantee Fund; and

(b) in our opinion –

(i) the prescribed requirements in respect of the establishment and keeping of accounts have been complied with in all material respects; and

(ii) theforegoingfinancialstatementshavebeendrawnupsoastopresentatrueandfairviewinaccordance with prescribed accounting standards of the transactions of the Legal Practitioners’ FidelityGuaranteeFundforthefinancialperiod1July2008to30June2009andofthefinancialposition as at the close of that period.

Declaration of Legal Practitioners’ Fidelity Guarantee Fund

President Ian Berry


31 August 2009


Independent Auditors ReportTo the Legal Practitioners Fidelity Guarantee Fund


TheauditreportrelatestothefinancialreportofLegalPractitioners’FidelityGuaranteeFundforthefinancialyear ended 30 June 2009 included on Queensland Law Society Incorporated web site. The Council members are responsible for the integrity of the Queensland Law Society Incorporated web site. We have not been engaged to report on the integrity of Queensland Law Society Incorporated web site. The audit report refers only to the statements named below. It does not provide an opinion on any other information which may have beenhyperlinkedto/fromthesestatements.Ifusersofthefinancialreportareconcernedwiththeinherentrisks arising from electronic data communications they are advised to refer to the hard copy of the audited financialreport,availablefromQueenslandLawSocietyIncorporated,toconfirmtheinformationincludedintheauditedfinancialreportpresentedonthiswebsite.



IhaveauditedtheaccompanyingfinancialreportofLegalPractitionersFidelityGuaranteeFundwhichcomprises the balance sheet as at 30 June 2009, the income statement, statement of changes in equity andcashflowstatementfortheyearendedonthatdate,asummaryofsignificantaccountingpolicies,otherexplanatorynotesandcertificatesgivenbytheofficerresponsibleforthefinancialadministrationofLegalPractitioners’ Fidelity Guarantee Fund.


TheCouncilisresponsibleforthepreparationandfairpresentationofthefinancialreportinaccordancewithprescribedaccountingrequirementsidentifiedintheFinancial Administration and Audit Act 1977 and the Financial Management Standard 1997, including compliance with applicable Australian Accounting Standards (including the Australian Accounting Interpretations). This responsibility includes designing, implementing andmaintaininginternalcontrolrelevanttothepreparationandfairpresentationofthefinancialreportthatisfree from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.


MyresponsibilitytoexpressanopiniononthefinancialreportbasedontheauditisprescribedintheAuditor-General Act 2009. This Act, including transitional provisions, came into operation on 1 July 2009 and replaces the previous requirements contained in the Financial Administration and Audit Act 1977.

The audit was conducted in accordance with Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. These Auditing Standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed to obtain reasonableassurancewhetherthefinancialreportisfreefrommaterialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancialreport.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentofrisksofmaterialmisstatementinthefinancialreport,whetherduetofraudorerror.Inmakingthoseriskassessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation ofthefinancialreportinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotfor the purpose of expressing an opinion on the effectiveness of the entity’s internal control, other than in expressing an opinion on compliance with prescribed requirements. An audit also includes evaluating the appropriateness of accounting policies and the reasonableness of accounting estimates made by the fund, as wellasevaluatingtheoverallpresentationofthefinancialreportincludinganymandatoryfinancialreportingrequirements as approved by the Treasurer for application in Queensland.



Independence




Auditor’s Opinion


(a) I have received all the information and explanations which I have required; and

(b) in my opinion –


(ii) thefinancialreporthasbeendrawnupsoastopresentatrueandfairview,inaccordancewiththeprescribed accounting standards of the transactions of the Legal Practitioners’ Fidelity Guarantee Fundforthefinancialyear1July2008to30June2009andofthefinancialpositionasattheendofthat year.



31 August 2009

Independent Auditors Report (continued)To the Legal Practitioners Fidelity Guarantee Fund


2009 2008

NOTES $ $

Revenue

Insurance levies 2 28,582,085 28,668,298

Additional levies 172,500 135,000

Investment income 1,821,620 2,493,823

Total revenue 30,576,205 31,297,121

Expenses

Administration expenses 103,362 80,184

Audit fees 20,200 4,950

Insurance expense 2 19,655,000 21,500,000

Claims

Claims paid 98,352 6,256

Movement in outstanding claims 4 (26,846) (6,256)

Reinsurance recoveries (191,058) (29,890)

Realised investment losses 7 1,608,316 -

Unrealised investment losses 3,203,836 -

Total expenses 24,471,162 21,555,244

Operating surplus 6,105,043 9,741,877

Queensland Law Society Incorporated Law Claims Levy Fund




2009 2008

NOTES $ $

Current assets

Cash and cash equivalents 7(a) 35,499,423 31,466,845

Receivables 5 36,245 78,336

Total current assets 35,535,668 31,545,181

Non-current assets

Otherfinancialassets 7(b) 17,397,062 19,657,456

Total non-current assets 17,397,062 19,657,456

Total assets 52,932,730 51,202,637

Current liabilities

Income in advance 3 28,085,719 24,781,597

Creditors and accruals 42,550 31,980

Provision for outstanding claims 4 895,000 921,846

Total current liabilities 29,023,269 25,735,423

Net assets 23,909,461 25,467,214

Equity

Retained surplus 23,909,461 27,804,418

Fair value reserve - (2,337,204)

Total equity 23,909,461 25,467,214


Balance Sheet as at 30 June 2009



Retainedprofits Reserve movement Total

$ $ $

Opening Balance – 1 July 2007 18,062,541 - 18,062,541

Operating surplus for the period 9,741,877 - 9,741,877

Fair value reserve movement - (2,337,204) (2,337,204)

Closing Balance – 30 June 2008 27,804,418 (2,337,204) 25,467,214

2008/2009

Operating surplus for the period 6,105,043 - 6,105,043

Fair value reserve movement - (2,474,948) 2,337,204

Realised losses - 1,608,317 -

Transfer to Income Statement - 3,203,836 -

Transfer to QLS for purchase of Lexon Shares (10,000,000) - (10,000,000)

Closing Balance – 30 June 2009 23,909,461 - 23,909,461


Statement of Changes to Equityfor the year ended 30 June 2009




2009 2008NOTES $ $

Inflows Inflows(Outflows) (Outflows)

Cash flows from operating activitiesReceipts from the profession 32,058,707 28,166,520Claim payments (98,352) (6,256)Reinsurance recoveries 191,058 29,890Payments to suppliers (19,766,659) (21,575,054)Interest receipts 910,882 808,742Net cash provided by / (used in) operating activities 6(c) 13,295,636 7,423,842

Cash flows from investing activitiesProceeds from disposal of Investments 736,942 -Purchase of Investments - (20,500,000)Transfer to QLS for purchase of Lexon Shares (10,000,000) -

Net cash flows from investing activities (9,263,058) (20,500,000)

Net increase / (decrease) in cash held 4,032,578 (13,076,158)

Cash at the beginning of the financial year 27,466,845 40,543,003

Cash at the end of the financial year 6(a) 31,499,423 27,466,845


Queensland Law Society IncorporatedLaw Claims Levy Fund

Notes to and forming part of the Financial Statementsfor the year ended 30 June 2009Objectives and principal activities

The Queensland Law Society Incorporated (‘the Society’), pursuant to s232 of the Legal Profession Act 2007 (‘the Act’) is authorised to establish and maintain a fund for the purposes of providing insurance to the legal profession of Queensland.

The Law Claims Levy Fund (‘The Fund’) was created in 1987 to provide professional indemnity insurance to Queensland solicitors. The Fund is responsible for the management of professional indemnity claims of practitioners for the years 1987 to 1995, and the administration insurance matters (jointly with Lexon Insurance Pte Ltd) in accordance with the Queensland Law Society Indemnity Rule 2005.

1 Summary of significant accounting policies

(a) Basis of accountingThefinancialreportisaGeneralPurposeFinancialReportwhich has been prepared in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) of the Australian Accounting Standards Board and comply with the Treasurer’s minimum reporting requirements for the year ending 30 June 2009, and other authoritative pronouncements.


(b) RevenueAdditional levies may be imposed in accordance with the indemnity rules and are accounted for separately and disclosed as income of the Fund. Interest revenue is recognised as it accrues, taking into account the effective yieldonthefinancialassetandisalsorecognisednetofbank charges.

(c) TaxationThe Fund is exempt from income tax by virtue of sections 50-25 of the Income Tax Assessment Act 1997 with the exceptionofFringeBenefitsTax(FBT)andtheGoodsandServices 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 ATO. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet.

Cashflowsareincludedinthecashflowstatementonagrossbasis.TheGSTcomponentsofcashflowsarisingfrominvestingactivitiesandfinancingactivitieswhicharerecoverablefrom,orpayableto,theATOareclassifiedasoperatingcashflows.

(d) Cash and cash equivalentsFor the purposes of the Balance Sheet and Cash Flow Statement, cash assets include all cash and cheques receipted but not banked at 30 June as well as deposits on callwithfinancialinstitutions.Shorttermdepositsareaninterest bearing account which is readily convertible to cash on hand at the Society’s option and is subject to a low risk of change in value. Investments are brought to account at fair value as indicated in Note 6(a).

(e) Other receivablesInterest receivable represents interest accruals for amounts received in the month after balance date.

The Fund has brought to account solicitors’ deductibles and penalties receivable from practitioners. These receivables have been recognised on an accrual basis and are carried at actual amounts. The collectability of trade debtors is assessed at reporting date with provision being made for impairment. All known bad debts were written-off as at 30 June.

(f) Provision for outstanding claimsClaims are actuarially assessed and the movement in the actuarial assessment is disclosed in the income statement as movement in outstanding claims. Actual claim payments are separately disclosed.

(g) Other financial assetsi. Recognition and derecognition

Purchases and sales of investments are recognised on trade-date – the date on which the Fund commits to purchaseorselltheasset.Otherfinancialassetsarerecognised when there is a contractual right to receive cashorfinancialassets;ortoexchangefinancialinstruments with another enterprise.

Investments are derecognised when the rights to receivecashflowsfromthefinancialassetshaveexpired or have been transferred and the Fund has transferred substantially all risks and rewards of ownership.

ii. Initial measurementInvestments are initially recognised at fair value plus transaction costs.

iii. Subsequent measurementInvestment assets are subsequently carried at fair value. Loans and receivables are carried at amortised cost using the effective interest method.

Unrealised gains and losses arising from changes in the fair value of investments are recognised in the income statement.

iv. Determination of fair valueThe fair values of quoted investments are based on investment intermediaries’ quotes at the balance sheet date. The carrying amounts of current receivables and payables are assumed to approximate their fair values. Thefairvalueoffinancialliabilitiesfordisclosure


1 Summary of significant accounting policies (continued)

(g) Other financial assets (continued)iv. Determination of fair value (continued)

purposes is estimated by discounting the future contractualcashflowsatthecurrentmarketinterestrate that is available to the Fund for similar investments.

v. Impairment The Fund assesses at each balance sheet date whether there is objective evidence that an investment or a group of investments is impaired. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cashflows,discountedattheoriginaleffectiveinterestrate. The amount of the allowance is recognised in the income statement.

Inthecaseofequityinvestmentsclassifiedasinvestments,asignificantorprolongeddeclineinthe fair value of the investments below its cost is considered in determining whether the investments are impaired. If any such evidence exists for investments, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that investment previously recognisedinprofitorloss–isremovedfromthefairvalue reserve within equity and recognised in the income statement. Impairment losses recognised in the income statement on equity investments are not reversed through the income statement, until the equity investments are disposed of.

(h) Income in advanceIncome in advance relates to insurance levies collected from the profession in relation to the upcoming insurance year (ie current year levies in advance relate to collections for the insurance year 1 July 2009 to 30 June 2010).

(i) PayablesTrade creditors are recognised on receipt of the goods or services and are carried at actual amounts, gross of applicable trade and other discounts. Amounts are unsecured and are generally settled on 30 day terms.

(j) Employee BenefitsThefundhasnoemployeesandassuchnobenefitsoutstanding.

(k) Professional indemnity insuranceThe Queensland Law Society Incorporated entered into a Master Policy agreement with Professional Indemnity Insurers to limit the maximum liability of the Fund for both individual claims and aggregate amounts. The Fund incurs all expenses up to a prescribed amount per individual claim until such time as the aggregate amount has been reached at which time the Professional Indemnity Insurers incur all future costs. The respective individual liability per claim is listed in note 8.

(l) Judgements and assumptionsFull provision is made for the estimated cost of all claims admitted or intimated but not settled at the balance sheet date, less reinsurance recoveries, using the best information available at that time.

The entity has made no other judgements or assumptions which may cause a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

(m) New and revised accounting standardsNo Australian accounting standards and interpretations

issuedoramendedandapplicableforthefirsttimeinthe2008/09financialyearhaveaneffectontheFund.Also,the Fund has not voluntarily changed any of its accounting policies.

The Fund is not permitted to adopt a new accounting standardaheadofthespecifiedcommencementdateunless approval is obtained from the Treasury Department. Consequently, the Fund has not applied any Australian accounting standards and interpretations that have been issued but are not yet effective. The Fund will apply these standards and interpretations in accordance with their respective commencement dates.

All other Australian accounting standards and interpretations with future commencement dates are either not applicable to the Fund, or have no material impact on the Fund.

2 Insurance levies and premium

All insurance levies collected via the Queensland Law Society (QLS) renewal process were transferred to the Law Claims Levy Fund. The surplus collection can only be used in accordance with the Indemnity Rules for insurance purposes.

The fund continues to accumulate reserves in accordance with actuarialassessmentsforthebenefitofallpractitioners.

The insurance expense represents the amount payable under the master policy in accordance with the Indemnity Rules.

3 Income in advance

Income in advance relates to insurance levies collected from the profession during the renewals cycle which relate to insurance covertobeprovidedposttheendofthefinancialyear.

Income in advance 2009 2008$ $

Levies received in advance 28,085,719 24,781,597

4 Provision for outstanding claims

2009 2008$ $

Opening balance at start of reporting period 921,846 928,102

Claims incurred 71,506 -Claims paid (98,352) (6,256)Closing balance at end of reporting period 895,000 921,846

2009 2008

$ $Current liability 895,000 921,846Non-current liability - -

895,000 921,846

The Fund has a stop loss policy with Lexon Insurance Pte Ltd (formerly QLS Insurance Pte Ltd) which initially capped its liability for future payments at $5,000,000 at 1 July 2002.

5 Receivables

2009 2008$ $

CurrentInterest receivable 35,605 76,364GST receivable 640 1,972

36,245 78,336


6 Notes to the cash flow statement

(a) Reconciliation of cashForthepurposesofthecashflowstatement,cashincludescash on hand and in banks and investments on money market instruments, net of outstanding bank overdrafts. Cash attheendofthefinancialyearasshowninthecashflowstatement is reconciled to the related items in the balance sheet as follows in note 7.

(b) Financing facilitiesTheFundhasnoexternalnon-cashfinancingoranystandbycredit facilities or any other loan facilities.

(c) Reconciliation of net cash provided by operating activities to the operating surplus/(deficit) for the year

2009 2008$ $

Surplus/(deficit)fortheperiod 6,105,043 9,741,877

Adjustments for:Net investment income 3,860,655 (1,687,085)

Changes in assets and liabilities:Decrease/(increase) in accounts receivables 42,091 4,249

Increase/(decrease) in provision for outstanding claims (26,846) (6,256)

Increase/(decrease) in accounts payables 10,570 7,835

Increase/(decrease) in income in advance 3,304,123 (636,778)

Increase/(decrease) in solicitors’ deductibles - -

Net cash provided by / (used in) operating activities 13,295,636 7,423,842

7 Cash and financial assets

2009 2008$ $

7(a) Current Assets:Cash at bank 19,327,277 20,685,481Short term deposits at cost 12,172,146 6,781,364Cash included in cash flow 31,499,423 27,466,845Term deposit 4,000,000 4,000,000Total cash and cash equivalent 35,499,423 31,466,845

7(b) Non-current assets:Otherfinancialassets-Managedfunds (market value)Beginningoffinancialyear 19,657,456 3,807,576Additions 951,496 18,394,220Disposals (736,942) -Fair value adjustments (unrealised) (866,631) (2,544,340)Realised loss on disposal (1,608,317) -

Endoffinancialyear 17,397,062 19,657,456

Managed funds include units in various funds with the following managers:

Queensland Investment Corporation•UBS Global Asset Management•AMP Capital Investors•BNP Paribas Investment Partners•BlackRock Investment Management•Russell Investments•

8 Contingent liabilities

Under the present insurance agreements the total liability of the Fund for the respective years of insurance is limited to $100,000 (1987-1994) and $500,000 (1995) per individual claim and this amount is reduced by the amount of the solicitors’ deductible. Also an aggregate limit per respective year of insurance applies and this limits the total liability of the Fund.

Based on the actuarial advice in respect of the position of the Fund as at 30 June 2009 (Finity–August 2009), the insurance inplacewithregardtothelimitsperfile,andtheoverallFund’saggregate limit as at 30 June 2009, the Society is of the opinion that the funds on hand together with future investment income and deductibles, and in conjunction with Stop Loss cover (see note 4) will ensure that all future claims will be met as and when they fall due.

9 Financial risk

TheFund’sactivitiesexposeittoavarietyoffinancialrisks:market risk (currency risk, price risk and interest rate risk), credit risk and liquidity risk.

(a) Currency riskTheFundisnotexposedtosignificantforeigncurrencyrisk as the majority of the Fund’s transactions, assets and liabilities are denominated in Australian dollars.

The Fund outsources its investment activities to respected fundmanagerswhousedefinedriskmanagementtechniques as part of the funds mandates.

All investments in income securities are fully hedged where a currency exposure exists.

As part of the Fund’s investment mandate may hold units in funds which hold unhedged international securities. Any unhedged position will be in accordance with the strategic asset allocation, and is monitored regularly by management..

(b) Price and interest rate riskThe Fund is exposed to equity securities price risk arising fromtheinvestmentsclassifiedasotherfinancialassets.These securities are held with Australian fund managers.

The Fund’s fund managers seeks to reduce risk by diversifying across a range of securities, maturities and counterparties. Investments of the funds are subject to the risk control limits and constraints:

Duration and Tracking Error Limits (interest rate management)TheModifiedDurationofthefundsareconstrainedwithin•aspecifiedperiodeithersideoftheModifiedDurationofthe Benchmark.Rolling year ex post tracking error will be limited to a •specifiednumberofbasispoints.Theex-antetrackingerrorofthefundsarenotexpectedtoexceedaspecifiednumber of basis points.


9 Financial risk (continued)

(b) Price and interest rate risk (continued)

Sector Exposure BandsThe weighting of each sector (eg domestic, international •– government, non government) within the funds will be maintainedinspecifiedlimits

Credit LimitsThefundswillbeinvestedinabroadanddiversifiedrange•of securities across the credit spectrum.

Credit Risk Limits for Individual Security InvestmentsIndividual security limits apply for direct physical holdings based on their credit rating and inclusion in the benchmark

Management regularly review the performance and ensure all investments held are within the approved mandate.

(c) Credit riskThereisnosignificantcreditriskwithrespecttothecollectability of levies as the levy is compulsory. All levies are paid up front at the commencement of the period covered under the insurance policy.

Credit risk arising on funds placed with external fund managers is managed by established policies to ensure thatthecounter-partieshaveadequatefinancialratingsandappropriate credit history.

(i) Financial assets that are neither past due or impairedAtthebalancesheetdatenofinancialassetsarepastdue or impaired.

Cash and cash equivalents that are neither past due nor impairedareplacedwithreputablefinancialinstitutionswith high credit ratings and no history of default.

Otherfinancialassetsareredeemableondemand.These are placed with reputable fund managers. The Fund holds units in two funds which have frozen redemptions as a result of the Global Financial Crisis (this is detailed below).

(ii) Financial assets that are past due and/or impairedNofinancialassetsarepastdue

(d) Liquidity riskIn the management of liquidity risks, the Fund monitors and maintains a level of cash and cash equivalents deemed adequatebymanagementtofinancetheFund’soperationsandmitigatetheeffectsoffluctuationsincashflows.TheFund also constantly reviews its investment to ensure that therearesufficientcashandliquiddepositstomeetitsestimatedoutflows.

TheFundmanagesitsexpectedcashflowrequirementsusing the latest actuarial valuations detailing projected cash flows.Thesearemonitoredinconjunctionwithavailablecash and investments readily convertible to cash.

Asatbalancesheetdate,theFund’sfinancialliabilitiesareall current.

The fund holds units in two funds which have frozen redemptions as a result of the Global Financial Crisis. These are property funds and redemptions would require disposal of real property which may be to the detriment of remaining unit holders. The funds are accounted for at fair value. These funds are not required for liquidity purposes.

(e) Interest rate and price sensitivityThe following interest rate sensitivity depicts the outcome to theprofitandlossiftheinterestratesweretoincreaseby1%linearlyfromtheyearendyieldcurveapplicabletotheFund’sfinancialassetsandliabilitieswhicharesubjecttointerest movements. With all other variables held constant, the Fund would have decrease of $46,197 (2008: $63,782). A linear decrease of interest rates by one per cent would result in an increase of $46,197 (2008: $63,782).

The following price sensitivity depicts the outcome to the profitandlossifallequityinvestmentsmovedanaverageoffivepercentfromtheyearendvalues.Withallothervariables held constant, the company would record an unrealisedgainof$387,899(2008:$426,750)forafivepercent increase in market values and an unrealised loss of $387,899(2008:$426,750)forafivepercentdecreaseinmarket values.

(f) Fair value The carrying amount of cash and cash equivalent, receivables, payables and lease liabilities approximate their fair value and are not disclosed separately.


TheforegoingfinancialstatementshavebeenpreparedinaccordancewiththeprovisionsoftheFinancial Administration and Audit Act 1977 (‘the Act’) and other prescribed requirements and we certify that in our opinion:

(a) theforegoingfinancialstatementswithotherinformationandnotestoandformingpartthereofareinagreement with the accounts and records of the Law Claims Levy Fund; and

(b) in our opinion –


(ii) thefinancialstatementshavebeendrawnupsoastopresentatrueandfairview,inaccordancewith prescribed accounting standards, of the transactions of the Law Claims Levy Fund for the financialyear1July2008to30June2009andofthefinancialpositionasatthecloseofthatyear.

Declaration of Law Claims Levy Fund

President Ian Berry


31 August 2009


Independent Auditors ReportTo the Law Claims Levy Fund


TheauditreportrelatestothefinancialreportofLawClaimsLevyFundforthefinancialyearended30June2009 included on Queensland Law Society Incorporated web site. The Council members are responsible for the integrity of the Queensland Law Society Incorporated web site. We have not been engaged to report on the integrity of Queensland Law Society Incorporated web site. The audit report refers only to the statements named below. It does not provide an opinion on any other information which may have been hyperlinked to/fromthesestatements.Ifusersofthefinancialreportareconcernedwiththeinherentrisksarisingfromelectronicdatacommunicationstheyareadvisedtorefertothehardcopyoftheauditedfinancialreport,availablefromQueenslandLawSocietyIncorporated,toconfirmtheinformationincludedintheauditedfinancialreportpresentedonthiswebsite.



IhaveauditedtheaccompanyingfinancialreportofLawClaimsLevyFundwhichcomprisesthebalancesheetasat30June2009,theincomestatement,statementofchangesinequityandcashflowstatementfortheyearendedonthatdate,asummaryofsignificantaccountingpolicies,otherexplanatorynotesandcertificatesgivenbytheofficerresponsibleforthefinancialadministrationofLawClaimsLevyFund.


TheCouncilisresponsibleforthepreparationandfairpresentationofthefinancialreportinaccordancewithprescribedaccountingrequirementsidentifiedintheFinancial Administration and Audit Act 1977 and the Financial Management Standard 1997, including compliance with applicable Australian Accounting Standards (including the Australian Accounting Interpretations). This responsibility includes designing, implementing andmaintaininginternalcontrolrelevanttothepreparationandfairpresentationofthefinancialreportthatisfree from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.


MyresponsibilitytoexpressanopiniononthefinancialreportbasedontheauditisprescribedintheAuditor-General Act 2009. This Act, including transitional provisions, came into operation on 1 July 2009 and replaces the previous requirements contained in the Financial Administration and Audit Act 1977.

The audit was conducted in accordance with Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. These Auditing Standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed to obtain reasonableassurancewhetherthefinancialreportisfreefrommaterialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financialreport.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentofrisksofmaterialmisstatementinthefinancialreport,whetherduetofraudorerror.Inmakingthoseriskassessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation ofthefinancialreportinordertodesignauditproceduresthatareappropriateinthecircumstances,butnot for the purpose of expressing an opinion on the effectiveness of the entity’s internal control, other than in expressing an opinion on compliance with prescribed requirements. An audit also includes evaluating the appropriateness of accounting policies and the reasonableness of accounting estimates made by the Council,aswellasevaluatingtheoverallpresentationofthefinancialreportincludinganymandatoryfinancialreporting requirements as approved by the Treasurer for application in Queensland.



Independence




Auditor’s Opinion


(a) I have received all the information and explanations which I have required; and

(b) in my opinion –


(ii) thefinancialreporthasbeendrawnupsoastopresentatrueandfairview,inaccordancewiththeprescribedaccountingstandardsofthetransactionsoftheLawClaimsLevyFundforthefinancialyear1July2008to30June2009andofthefinancialpositionasattheendofthatyear.



31 August 2009

Independent Auditors Report (continued)To the Law Claims Levy Fund

Queensland Law Society Law Society House 179 Ann Street Brisbane QLD 4000

telephone: 07 3842 5888 facsimile: 07 3842 5999 email: [email protected] website: www.qls.com.au

annual report 2009 - queensland parliament...peter carne resigned as ceo on 6 february 2009 to take...

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