report - rcsa · president’s report 1 ceo’s report 2-10 directors’ report 11-13 ... keynote...

ANNUALREPORT2013

Recruitment & Consulting Services Association LimitedFor the year ended 30 June 2013

RCSA Melbourne OfficeLevel 3, 63 Exhibition StreetMELBOURNE VIC 3000

Tel: +61 3 9663 0555Fax: +61 3 9663 5099Email: [email protected]

www.rcsa.com.au

contentsPresident’s Report 1

CEO’s Report 2-10

Directors’ Report 11-13

Auditor’s Independence Declaration 14

Statement of Profit or Loss 15

Statement of Financial Position 16

Statement of Changes in Members’ Funds 17

Statement of Cash Flows 18

Notes to the Financial Statements 19-28

Directors’ Declaration 29

Independent Audit Report 30-31

BOARD OF DIRECTORS

President

Lincoln Crawley FRCSAPresident of the RCSA Board

Vice President

Jacqui Barratt FRCSA

Steve Heather MRCSA

Vice President

Robert van Stokrom FRCSA

Peter Langford FRCSA

Vice President

Helen Olivier FRCSA(retired 29/11/12)

Karen Colfer FRCSA(appointed 30/05/13)

Alan Bell FRCSA

Finance Director

Robert Olivier FRCSA(appointed 29/11/12)

Denis Dadds FRCSA

Directors

Matthew McArthur FRCSA (Life)

Matthew Hobby FRCSA

Annual General MeetingThe Recruitment & Consulting Services Association Ltd will hold its Annual General Meeting at:

Crown Perth Great Eastern HighwayPerth WA 6000 AustraliaCommencing at 4.00pm AWST, Thursday 28th November, 2013

AuditorsNexia MelbourneLevel 18, 530 Collins StreetMELBOURNE VIC 3000

visionShaping our profession through standards, knowledge and influence.

outcomesRCSA membership is highly valued.

RCSA is the lead provider of market-recognised Continuing Professional Development (CPD).

RCSA is the centre of influence for member interests.

RCSA Members are recognised as setting the industry benchmark through adherence to RCSA Standards.

RCSA’s future prosperity is ensured throughthe generation and responsible use of stakeholders funds.

PRESIDENT’S REPORT

This financial year has been rewarding for the RCSA and its members. However, we have all faced challenges throughout 2012/2013, and the Board focussed on taking a proactive approach to help members meet these challenges.

The last three months of the year were a culmination of the steady and focussed approach of the Board to laying the foundations for a strong future.

The RCSA Board determined a number of key strategic priorities over this time which clarify and capture what we will focus on for the next three years and how we are working to support members and their careers. These priorities are by no means new – they relate to much of our work in recent years:

• RCSA membership is highly valued – this means being a member is seen as necessary for success on a personal and company level.

• The RCSA is the lead provider of market-recognised Continuing Professional Development (CPD). Education is the driver of professional skills and standards, and critical to the success of what we do.

• The RCSA is the centre of influence for member interests. We will continue to be a strong voice for members on regulatory and business issues.

• RCSA members are recognised as setting the industry benchmark through adherence to RCSA Standards. The Code and the Standards are what set members apart – we need to live and breathe them

• The RCSA’s future prosperity is ensured through the generation and responsible use of stakeholder funds. We need to be here for today and tomorrow, and have the commercial focus to make this happen.

The challenges we faced in this year are not just in our industry. You only need to speak to clients to hear about the challenges in all sectors.

At the end of the day, we are doing an important job: connecting people with employment opportunities. When we step back and look at the bigger picture, we are doing essential work for our clients and candidates.

In this market, one of the big challenges is holding our nerve in a changing environment. At a time where our clients have more options and are more sophisticated in how they procure, we need to sell and recoup the value of what we do for clients to ensure the sustainability of our industry.

What’s even more important is to prove our value to clients: show them why our services are worth investing in. Our Continuing Professional Development program and the RCSA Service Delivery Standard ensure that members have the tools to provide professional, quality services that make a difference to both clients and candidates.

As part of these priorities, we look forward to a number of integral projects, some of which include:

• The completion of the re-authorisation of the Code for Professional Conduct.

• The pathway to the RSCA Service Delivery Standard is being revised with greater access for all members to take up the standard formally and clear pathways through to ISO. The SDS itself will become a full Corporate member benefit which will help members stand apart as professional ethical operators and there will be stronger connections between the SDS and the RCSA Code.

• The development and rise of industry education driven and lead by RCSA. This is key to raising members’ profile and is an exciting project in development now.

• RCSA is the first industry peak body to be admitted as a Corporate Champion within the Department of Education, Employment and Workplace Relations (DEEWR) Experience+ program. The program seeks to assist members tap into opportunities through a series of high profile seminars and industry workshops. Employers may be eligible for assistance to develop their own Experience+ workforce strategies. The Corporate Champions program will help us to focus on markets that perhaps we have not previously. Not only are mature aged candidates a substantial untapped pool of labour in sectors experiencing a shortage of skills, they also bring to the table experience and know-how keenly sought by employers and customers.

• Early in this financial year, WIL, the RCSA Workforce Info Line, was launched in Australia and I am pleased to announce that toward the end of the year New Zealand WIL was launched also. WIL provides excellent support for Corporate members in the areas of workplace/employment relations, work health and safety, and independent contracting.

Finally, I would like to thank all Board members for their dedication to RCSA in 2012/2013 and look forward to their continuing support. RCSA also relies heavily on its volunteers and I thank you all for your time and efforts. Thank you to all RCSA members - it’s your Association and it exists to serve and represent your best interests. We now look forward to even greater achievements in 2013/2014.

Lincoln Crawley FRCSA

RCSA President, Australia and New Zealand

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CEO’S REPORT

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The 2012/2013 financial year has presented many challenges and opportunities for the RCSA and its members.

2012/2013 was another extremely busy period for the RCSA’s policy and issues management team. The review of the Fair Work Act, the focus on 457 Visas and the ACTU campaign to control what they call ‘insecure work’, along with many other issues, combined to place a greater reliance upon consistent and articulate policy of the RCSA. The RCSA Working Group structure continued over 2012/2013 to provide an excellent source of intelligence and policy referral during dynamic times. The Safety and Risk Working Group has also been an excellent sounding board for policy setting and submission preparation during these busy times. The Workplace Relations Working Group has focused energy and resources on the review of the Fair Work Act and the Modern Awards, however, in addition to these reviews there has been the ACTU campaign targeting casual, on-hire and specified term work. Finally, the Immigration Working Group has dedicated its energies on changes to immigration law and regulations which have come thick and fast throughout the year.

The RCSA Workplace Participation Forum was formed in the last 12 months and will be very active over 2013/2014 as the RCSA looks to take a more proactive role in the participation space at both a practical member level and a policy influencing level.

From a membership perspective 2012/2013 has been a positive year for the RCSA. RCSA Corporate and Individual membership is for recruitment organisations and individual professionals looking to distinguish themselves as industry leaders who are committed to professional standards and accountability – something that clients look for in today’s professional market. Two membership related highlights over the last 12 months are the launch of the Individual Membership Support Program (IMSP) and the Workforce Info Line (WIL) telephone support service.

Member groups of the RCSA - the Association of Nursing Recruitment Agencies (ANRA) and the Association of Medical Recruiters Australia and New Zealand (AMRANZ) have been very active over the last 12 months with the healthcare sector now recognised as one of the largest employers of Australians. Both ANRA and AMRANZ continue to have a role to play and an active voice.

The RCSA Learning Centre team and regional councils were extremely busy over 2012/2013. Highlights included the very successful RCSA 2012 International Conference, “Recruitment at the Speed of Tomorrow”. Held in Fiji (the first time in a number of years outside Australia), the conference provided business owners and senior executives with the opportunity to access a comprehensive catalogue of industry and business thought leaders, keynote speakers and workshops. The 2013 RCSA Awards program was also a highlight. It is important that in order to continue to build professionalism as an industry, we recognise and celebrate excellence through these Awards. Congratulations to the 2013 winners including Sam Hazledine MRCSA, winner of the PEARL Award; safesearch, winner of the McLean Award for Workplace Safety; and DFP Recruitment Services, winner of the Corporate Social Responsibility Award. Under the banner of RCSA’s Professional Emerging and Aspiring Recruitment Leaders (PEARL) program, the Diploma of Management was launched with the first semester commencing in March 2013. Additionally, the PEARL Mentoring Program was held across Australia and New Zealand for the second year running and the PEARL Consultant Forum ‘Breakthrough to Excellence’ ran in both Melbourne and Auckland.

Over the last 12 months, RCSA has seen a reduction in ethics related enquiries and complaints. While RCSA has received a high volume of enquiries relating to candidate care, privacy and confidentiality, misleading job advertisements and fee disputes, this is still less than RCSA received in the previous 12 month period.

The RCSA’s Service Delivery Standard and Code for Professional Conduct are core assets of the RCSA and form a key part of RCSA’s strategic planning for the next three years. The process of re-authorisation of the RCSA Code by the Australian Competition and Consumer Commission (ACCC) and the authorisation by the New Zealand Commerce Commission in 2014 will allow for both short term fine tuning of the Code and longer term strategic changes to be made. These planned changes will allow the Code to continue to grow in profile and provide RCSA members with a valuable point of difference.

In May 2013 the RCSA Board approved the revised RCSA Vision and Strategic Plan. The new vision is “Shaping our profession through standards, knowledge and influence” and the five strategic outcomes for the next three years are:

• RCSA membership is highly valued

• RCSA is the lead provider of market-recognised Continuing Professional Development

• RCSA is the centre of influence for member interests

• RCSA members are recognised as setting the industry benchmark through adherence to RCSA Standards

• RCSA’s future prosperity is ensured through the generation and responsible use of stakeholder funds.

Supporting these five strategic outcomes are approximately 30 projects which will be rolled out progressively over the next three years. These projects will draw on the experience and expertise of many RCSA volunteers who, during the past 12 months, have continued to provide invaluable support and assistance to the RCSA. Thank you to all volunteers for your energy and support and I look forward to your continuing involvement. From the RCSA Board through to the members of Region Councils and Working Groups, every volunteer adds value to the RCSA.

Finally, I would like to thank all the sponsors who have supported the RCSA over 2012/2013. Without the contribution of RCSA supporters and sponsors we would not be able to invest in quality events and education programs. In particular I would like to thank Kinetic Superannuation as RCSA’s Principal Partner.

We look forward to the challenges of the coming year and to delivering the best possible services and support to all RCSA members.

Steve Granland

Chief Executive Officer

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“RCSA membershipis highly valued. This means being a member is seen as necessary for success on a personal and company level.

”

Policy and Issues ManagementConsistent from one year to the next, issues continue to present themselves which both threaten and entice the recruitment and on-hire sectors. The start of the financial year saw an ongoing focus on Work Health and Safety (WHS) on the back of the gradual introduction of model Work Health and Safety law across the jurisdictions. Work Health and Safety was gradually overtaken as the lead issue by the ACTU secure work campaign which saw the union movement attempt to create an issue out of dwindling union membership and changing economic circumstances.

The Safety and Risk Working Group produced an on-hire version of guidance on the model Work Health and Safety law, while the Workplace Relations Working Group continued to monitor the government’s proposed response to the review of the Fair Work Act. There was concern that the government was not considering the reintroduction of prohibitions on restraints on the use of on-hire within enterprise agreements yet, on another front, the Working Group welcomed the government’s continued practical resistance to the ACTU Insecure Work Campaign. RCSA continues to focus on what it can do to improve the working lives of on-hire workers adapting to contemporary business conditions.

RCSA was invited to host a symposium on work health and safety in April in the on-hire sector in Victoria. The symposium was very well attended by a cross section of members, host organisation stakeholders, WorkSafe and unions. On the back of the symposium, held at the Melbourne Cricket Ground (MCG) in Victoria, RCSA is preparing a discussion paper to drive ongoing focus and initiatives. The symposium received good feedback from members and stakeholders across the board.

In early 2013 RCSA made representations to the inquiry into the proposed changes to the Fair Work Act. One proposed change is to require employers to consult with all employees, including casual employees, in relation to changes of hours of work. Such a change would impose large additional obligations upon RCSA members.

RCSA’s Issues Management Team and Working Groups continued to be active over the beginning of the 2013 calendar year due to proposed changes to the Fair Work Act and Immigration.

In addition to this, the lead up to the Australian Federal election resulted in numerous policy positions and pieces of legislation effectively presented in haste prior to Parliament rising for its winter break. These changes naturally required detailed review and consideration from a workplace relations and lobbying position and ongoing consideration throughout the election period.

In particular, a review of the Safe Work Australia draft Code of Conduct in relation to bullying and harassment was undertaken and detailed submissions in response were provided by RCSA.

These submissions effectively indicated that:

i. RCSA welcomes practices or initiatives designed to reduce the incidence of workplace bullying, however, any such initiative should not be overly prescriptive, hinder growth and ultimately should take into account the particular circumstances of the on-hire industry;

ii. The workplace relations environment is already heavily regulated with a number of existing jurisdictions which addresses the issue of workplace bullying and harassment;

iii. RCSA already adopts an industry Code of Practice which further regulates and encourages responsible business practices of its Corporate membership; and

iv. The draft Code of Conduct does not take into account the particular and unique nature of the on-hire industry.

Working Groups

Representatives of RCSA’s Immigration Working Group visited Canberra and lobbied the Department of Immigration in relation to proposed changes to worker rights check legislation, which has seen further liabilities for officers and directors in relation to failure to properly check the rights of overseas workers to work in Australia. While RCSA recognised the importance of maintaining Australian immigration law, and protecting Australian jobs, RCSA appreciated it is equally interested in protecting owners and managers in the recruitment sector from unnecessary sanctions.

RCSA made a submission to the Western Australian Government in the public comment period for model Work Health and Safety regulations and codes. The purpose of the submission was to provide the government with an understanding of the benefits and costs of the model Work Health and Safety regulations and codes to the on-hire industry. The regulations and codes of practice RCSA examined and commented on are proposed to become law in Western Australia.

Workforce Info Line (WIL)

The RCSA Workforce Info Line (WIL) was launched in September 2012 and provides RCSA Corporate members with ready access to telephone advice on workforce management issues. The service is structured so that workplace relations, work health and safety, and independent contracting calls are answered by dedicated employment relations consultants.

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CEO’S REPORT continued

Professional DevelopmentRCSA’s professional development programs continued to set high standards in 2012/2013.

Highlights included:

2012 RCSA International Conference “Recruitment at the Speed of Tomorrow” Sofitel Fiji 29th August - 31st August 2012

With 200 delegates and sponsorship well within expectation, the 2012 conference was received extremely well. Mike Walsh presented the opening keynote on innovation and the forces of change around the recruitment industry, which set the scene for the next two days. Industry identities both local and international took part in several keynotes: Jeff Doyle, Adecco - ‘Our Changing Global Workforce… A Flexible Future?’; David Arkless, ManpowerGroup - ‘The World of Recruitment: Our Place in the Global Economy’; and Greg Savage FRCSA (Life) - ‘The Great Social Recruitment Paradox – The Future of Recruitment. Much Faster. But Also Slower!’ At the close of the conference it was announced the RCSA would travel to the Gold Coast in Queensland for the 2013 International Conference.

Professional Emerging and Aspiring Recruitment Leaders (PEARL)

The PEARL committees across Australia and New Zealand once again contributed to the judging of the PEARL Award. This award received much interest with finalists from every state in Australia and from New Zealand (a first!). The award went to New Zealand finalist Dr Sam Hazledine MRCSA.

Under the banner of PEARL and in conjunction with our partnership with the Australian Human Resources Institute (AHRI), The Diploma of Management was launched in early October 2011 with the first semester commencing on 11th March 2013. RCSA received 20 registrations which was very encouraging. 13 individuals applied for the full program and seven for Semester 1. This included three registrations from New Zealand. Overall, 18 different companies and one Individual member participated.

The 2013 Mentoring Program

The PEARL committees across Australia and New Zealand contributed to the matching process of the PEARL Mentoring Program. With 120 individuals (60 pairs) across Australia and New Zealand for the second year running, it is safe to say this program has been endorsed by our members. This could not have been achieved without the support of the AltusQ coaching team who offer assistance in all regions.

The PEARL Consultant Forum ‘Breakthrough to Excellence’

The forums ran in March in Melbourne and June in Auckland. It appears that RCSA is hitting the target with learning and development, and networking opportunities across all levels of the industry.

The educational content for both programs was acclaimed as relevant and informative. Industry support in Australia came from Greg Savage FRCSA (Life), Ross Fisher FRCSA (Life), Ross Clennett FRCSA, Angela Giacoumis FRCSA, Craig Watson FRCSA and Erin Devlin MRCSA. In New Zealand, support came from Jacqui Barratt FRCSA, Marc Denholm, Alan Sherlock FRCSA, Jane O’Connor APRCSA and Paul Robinson MRCSA.

A special thank you to RecruitmentSuper (now Kinetic Superannuation) and CareerOne.com.au for the support of the event in Australia. SEEK NZ was our proud supporter in New Zealand.

Gala Ball and Awards Night 30th May 2013, Doltone House Jones Bay Wharf, Sydney

300 members, guests and business supporters attended this annual Gala event. Winners for the PEARL Award, The MacLean Award for Workplace Safety and Corporate Social Responsibility Award were announced from an excellent calibre of finalists. Additionally, Helen Olivier FRCSA (Life) was awarded Life Membership and Ross Fisher FRCSA (Life) was applauded for his contribution to the industry and Association upon his retirement. Sponsorship was through CareerOne.com.au, WorkPro and FastTrack. Next year’s Gala Ball has been set for The Regent Theatre, Plaza Ballroom, Melbourne on Thursday 22nd May.

The Learning Centre team wishes to acknowledge RecruitmentSuper (now Kinetic Superannuation) and CareerOne.com.au for their ongoing sponsorship support. The breakfast series would not eventuate without the support of these sponsors and the CPD committee. Likewise, the PEARL program would not be where it is today without the support of the PEARL committees and AltusQ, who offer unfailing backing, ideas and personal time to the RCSA Learning Centre staff.

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EthicsDuring the reporting period 1st July 2012 through 30th June 2013, RCSA has seen a further decline in ethics related enquiries and complaints, with a total of 133 received. The percentage of ethics related enquiries received against members compared with non-members during the reporting period is displayed in the chart below. The statistics indicate that while RCSA has received a high volume of enquiries relating to candidate care, privacy and confidentiality, misleading job advertisements and fee disputes, the number is still less than RCSA received in the previous 12 month period.

Service Delivery Standard (SDS)The RCSA’s Service Delivery Standard (SDS) program has maintained its momentum albeit slower than anticipated, and despite difficult economic times. As at 30th June 2013, a total of 44 members are certified in the RCSA SDS program, spanning a total of 83 accredited offices. The RCSA SDS provides an industry specific quality management framework designed for delivering service excellence to clients and candidates, and confirms Corporate members’ commitment to and demonstration of ethical practice and industry standards.

The RCSA’s SDS begins with the RCSA’s Code for Professional Conduct and covers four key areas: compliance, service focus, service delivery, and customer relationships. The RCSA continues to review and make improvements to its SDS program, which is used as a benchmark framework and based on ISO 9001.

Code for Professional Conduct (Code)RCSA’s Code for Professional Conduct is due for re-authorisation in 2014. RCSA commenced preparations for the re-authorisation in 2012/2013.

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Ethics enquiries 1st July 2012 to 30th June 2013

Not specified/Unknown

Non-members

RCSAMembers

44%

27%

29%29%

27%

44%

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Area of grievance 1st July 2012 to 30th June 2013 Number of complaints

Candidate care 24

Not specified / General 18

Privacy and confidentiality 12

Misleading job ads 12

Fee disputes 10

Workplace and Fair Work issues 9

Other: Copyright, unsolicited supply, safety, legal issue 9

Candidate ownership - the right to represent a work-seeker 8

Equal opportunity and discrimination 6

Spam 5

Candidate fees 4

Commercial issues 4

Client care 3

Professionalism and integrity 3

Restraint of trade 2

Service guarantees 2

Transition 2

“ The RCSA Service Delivery Standard provides an industry specific quality management framework designed for delivering service excellence to clients and candidates.

”

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MembershipRCSA Corporate Membership is for recruitment organisations that wish to distinguish themselves as industry leaders committed to professional standards and accountability. As of 30th June 2013, there were 952 Corporate member head offices across Australia and New Zealand, with a total of 1470 including Corporate member branches.

Membership benefits for Corporate members were expanded with the addition of the Workforce Info Line (WIL) telephone support service. This service was introduced for Australian members in September 2012, and later extended to support New Zealand members in June 2013. WIL is part of a targeted membership strategy for existing and prospective Corporate members that will contribute to increased member acquisition and retention.

The Individual Membership Support Program (IMSP), launched in January 2013, encourages employees of Corporate members to retain or become Individual members. This personal commitment by the employee acknowledges their commitment to professional behaviour and provides the Corporate member business with even greater credibility.

RCSA Individual membership elevates recruitment professionals as industry leaders, as recognised by their industry tenure and qualifications. There were 1252 Accredited Professional Recruiters, Members and Fellows; in addition to 56 Affiliate non-professional members at 30th June 2013.

The main drivers to increased member acquisition and retention, under the RCSA Strategic Plan, will be the formal alignment of RCSA education pathways with the Professional Accreditation Framework, and a review of the Individual membership value proposition.

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

The Association of Nursing Recruitment Agencies (ANRA)

The Association of Nursing Recruitment Agencies (ANRA) is a member group of the RCSA. Over the past 12 months the health care recruitment and agency sector has experienced difficult conditions as numerous structural changes have affected the marketplace.

ANRA has been active in representing the interests of members and has worked to ensure the views of members are represented with government, industry and the healthcare community.

Healthcare is a sector now recognised as one of the largest employers of Australians. Members of ANRA are now also cumulatively among the largest employers of healthcare staff in the nation. This places a responsibility on members and ANRA to share in the responsibility to educate and develop the capacity of the healthcare workforce.

During the reporting period, ANRA has raised awareness of the Association with government and regulators. In Victoria, over a period of two years, ANRA has worked closely with members and Health Purchasing Victoria to address several key issues that existed in the terms of an agreement for the supply of temporary clinical staff in that state.

In Queensland, ANRA members have heard from the Chief Nurse and Midwifery Officer about the closing down of Nurse-on-Q and the department’s long-term plan for developing the healthcare workforce in Queensland.

The ANRA Council has been actively involved in representing the interests of members during tenders for healthcare staffing panels in Queensland and in helping members remain abreast of developments in workplace relations laws and regulations. ANRA has also participated in several industry consultations and prepared several submissions to inquiries examining the future requirements of a healthcare workforce in Australia.

In 2010, the ANRA Council entered into an agreement with the Australian Nursing Federation (ANF) to provide ANRA member nurses and healthcare staff with online education and training. To date, over 70 members of ANRA have accessed the library with many members integrating these high quality training modules into their training and workforce development programs. ANRA has just signed an agreement which extends the program for a further three years.

ANRA was pleased to announce the ME Bank Agency Nurses Scholarship in February 2013 in partnership with ME Bank and the ANF. The scholarship will for the first time grant scholarships valued at $10,000 to nurses employed by ANRA member agencies to undertake Continuing Professional Development and training.

ANRA members remain active participants in working groups and industry forums including industry peer groups for industry sectors such as general and specialist nursing, aged care and home and community care.

ANRA has also formed a working group with the Association of Private Nursing Services (APNS) to collectively represent the interests and views of the combined membership as DisabilityCare Australia is introduced over the next five years. APNS represents private nursing services in Australia.

ANRA Chair Alan Bell FRCSA and Vice-Chair Graham Bower FRCSA extended thanks to all Council members for their work and efforts over the past twelve months. ANRA Council Members are:

Alan Bell FRCSA, Chair

Graham Bower FRCSA, Vice-Chair

Maria Kourtesis FRCSA

Danielle Wallace

Kim Estell

Tracey Cumbers

Nigel Woolford


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The Association of Medical Recruiters Australia & New Zealand (AMRANZ)

Medical recruitment continues to evolve. Legislation and technology are just two areas where change is constant and The Association of Medical Recruiters Australia & New Zealand (AMRANZ) and its Council are working diligently to ensure that they represent their members in all spheres.

AMRANZ believes that adherence to the RCSA Code for Professional Conduct by both Corporate and Individual members will ensure that the industry is seen as both ethical and principled by clients, government bodies, health departments and colleges alike.

A major role of the Association is lobbying and while it can be a slow process, it is an area which has ensured a higher profile on the following matters:

• Queensland Health - Locum arrangements and conditions, Medical officers, Human resources policy B45 and associated agency and locum agreements.

• NSW Health – Locum agency agreements.

• Medicare: Processing of initial Medicare provider number applications and 19AB exemptions.

• Ministry of Health New Zealand - Terms of business for the introduction of clinical staff to be employed directly by District Health Boards.

During 2013 AMRANZ was asked to consult by the Medical Board of Australia on ‘Proposed Changes to the Competent Authority Pathway and Specialist Pathway for International Medical Graduates’.

Council representatives also attended the ‘Australian Medical Council Educational Commission for Foreign Medical Graduates Information Session for Recruitment Agencies’ and was represented at the ‘Department of Health Queensland Area of Need Stakeholder Workshop’.

Submissions:

• NSW Health in response to the draft RFT for Panel of Overseas Recruitment Agencies in NSW.

• AMRANZ/ANRA response to the Royal Commission into Institutional Responses to Child Sexual Abuse (Issues paper 1 – Working with Children Check).

• Migration Amendment (Temporary Sponsored Visas) Bill 2013.

AMRANZ continues to have representation on the Medical Board of Australia IMG Committee.

AMRANZ social media platforms are growing in popularity as Facebook and LinkedIn Groups are used as information streams to connect with and inform members.

Meeting the needs and feedback of members with regard to their requirements for continuing education is an ongoing project. The Council shares a vision to increase the profile of the industry and realises that one of the most effective ways of doing this is by encouraging highly trained members with a strong understanding of contemporary issues.

In 2013, the AMRANZ Continuing Professional Development program held two meetings in Sydney and Melbourne which included relevant industry speakers and a learning and development element with workshops on ‘Taking the ownership back in the recruitment process’ and ‘Competing first on value’. Both proved extremely popular with attendees.

The RCSA Awards Program for 2013 had a strong AMRANZ presence with two members as finalists in the PEARL Award for Professional Emerging and Aspiring Recruitment Leaders. Dr Sam Hazledine MRCSA of MedRecruit New Zealand was the overall winner.

We look forward to a strong representation from AMRANZ in the Awards program in 2014.

Council Members 2013:

Shaun Hughston APRCSA, Chair

Corrine Taylor FRCSA, Vice Chair

Alan Bell FRCSA

Melissa Bennett MRCSA

Stephen Bott FRCSA

Rob Embury

Roslyn Melrose APRCSA

Martina Stanley MRCSA

Justin Smith MRCSA


Partners & Premium SupportersRCSA would like to thank its 2012/2013 Partners and Premium Supporters without which many programs, events and activities would not be possible.

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Principal Partner Business Partner

Premium Supporters


PRESIDENT’S REPORT

Your directors present this report on the company for the year ended 30th June 2013.

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

L Crawley FRCSA

R van Stokrom FRCSA

H Olivier FRCSA (Life) (Retired Nov 29, 2012)

D Dadds FRCSA

J Barratt FRCSA

P Langford FRCSA

M McArthur FRCSA (Life)

S Heather MRCSA

A Bell FRCSA

M Hobby FRCSA

R Olivier FRCSA (Elected Nov 29th, 2012)

K Colfer MRCSA (Appointed May 30th, 2013)

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

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

Operating ResultsThe profit of the Recruitment & Consulting Services Association Ltd (RCSA) after providing for income tax amounted to $242,045 (2012: $302,304).

Dividends Paid or RecommendedNo dividends were paid during the year and no recommendation is made as to dividends, as the Recruitment & Consulting Services Association (RCSA) is not permitted to pay dividends under its Constitution.

Review of Operations The operations and state of affairs reflect the outcome of the various activities of the entity for the year ended 30th June 2013.

The RCSA in the last 12 months has adopted a revised vision which is ‘shaping our profession through standards, knowledge and influence’.

Overriding objectives are to promote excellence, enterprise and integrity in the companies of all Members and of Individuals engaged by those companies and to improve the knowledge and skill with respect to their responsibilities, duties and rights in the employment services industry.

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

RCSA Membership is highly valued:

RCSA membership is seen as being necessary for success. Corporate and Individual membership is attractive, understood, sought after and retained and provides highly valued and distinguishable benefits by identified member segments.

RCSA is the lead provider of market-recognised Continuing Professional Development (CPD):

The RCSA Learning Centre is recognised by Corporate and Individual members as the default source of education and training requirements providing consistently high quality continuing professional development across multiple channels both publicly and on a tailored in-house delivery basis.

RCSA is the centre of influence for member interests:

RCSA input, research, guidance and advice is sought after by key workforce management stakeholders including government and regulatory bodies. RCSA’s position in relation to key industry issues is clear and understood by all stakeholders.

RCSA Members are recognised as setting the industry benchmark through adherence to RCSA Standards:

The RCSA Code for Professional Conduct and Service Delivery Standard are recognised as the quality industry standard and are a key member attraction and retention tools. Existing and prospective clients and candidates understand and value this important tangible difference between a member and a non-member. “Are you an RCSA member?” is the first question asked by clients and candidates of recruitment firms and recruitment professionals.

RCSA’s future prosperity is ensured through the generation and responsible use of stakeholder funds:

The RCSA operates at all times with a commercial focus.

Significant Changes In State of AffairsNo significant change in the state of affairs of the Recruitment & Consulting Services Association (RCSA) occurred during the financial year.

After Balance Date EventsNo matters or circumstances have arisen since the end of the financial year, which significantly affected or may significantly affect the operations of the Recruitment & Consulting Services Association (RCSA), the results of those operations, or the state of affairs of the Recruitment & Consulting Services Association (RCSA) in subsequent financial years.

Future DevelopmentsLikely developments in the operations of the Recruitment & Consulting Services Association (RCSA) and the expected results of those operations in future financial years have not been included in this report as the Directors believe that the inclusion of such information is likely to result in unreasonable prejudice to the Recruitment & Consulting Services Association (RCSA).

EnvironmentalThe Recruitment & Consulting Services Association Ltd (RCSA)’s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a State or Territory.

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DIRECTORS’ REPORT

Information on Directors

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DIRECTORS’ REPORT continued

Director Lincoln Crawley FRCSA Director Matthew McArthur FRCSA (Life)

Qualifications: Qualifications:

Experience: 16 years in the recruitment industry Experience: 31 years in the recruitment industry

Special Responsibilities:

RCSA Board President, Director Government Positioning, Chair Executive Committee


Director Business Partnerships

Director Robert van Stokrom FRCSA Director Peter Langford FRCSA

Qualifications: Dip. Business, Grad Dip Logistics Qualifications:

Experience: 28 years pharmaceutical, 12 years recruitment Experience: 29 years in the recruitment industry


Director Continuing Professional Development, Director Finance, Member Executive Committee


Director Workplace Relations

Director Jacqui Barratt FRCSA Director Steve Heather MRCSA

Qualifications: Qualifications: Bachelor of Applied Science (Mining Engineering) W.A.S.M. first Class Mine Managers Certificate of Competency (WA Law)

Experience: 20 years in the recruitment industry Experience: 18 years’ mining industry experience up to General Management level, 18 years recruitment industry experience to Managing Director


Director Membership, Member Executive Committee


Director Service Delivery Standard

Director Helen Olivier FRCSA Director Matthew Hobby FRCSA

Qualifications: Qualifications:

Experience: 35 years’ recruitment industry experience 6 years for the Employment Services Division UK

Experience: 14 years in the recruitment industry


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


Director

Director Robert Olivier FRCSA Finance Director Alan Bell FRCSA

Qualifications: Bachelor of Science (Social Science) (Hons) Qualifications:

Experience: 17 years’ recruitment industry experience Experience: 22 years in the recruitment industry


RGSA Finance Director, Member Executive Committee


Director

Director Denis Dadds FRCSA Director Karen Colfer MRCSA

Qualifications: Bachelor of Commerce Qualifications:

Experience: 43 years in recruitment Experience: 20 years’ recruitment industry experience


Director OHS & WC Special Responsibilities:

Director

Directors’ and Executive Officer RemunerationDirectors

The Directors of the Recruitment & Consulting Services Association Ltd (RCSA) receive no remuneration for holding office. All Directors are non-executive. Certain reimbursements are made to Directors to meet out of pocket expenses for attending meetings.

Meeting of Directors

During the financial year, 4 meetings of Directors, 6 meetings of Executive Committee and 6 meetings of the Finance Committee were held. Attendees were:

Directors Meetings Executive/Finance Committee Meetings

Eligible to Attend Attended Eligible to Attend Attended

L Crawley FRCSA 6 6 8 7

H Olivier FRCSA (Life) 2 1 4 4

R van Stokrom FRCSA 6 6 8 8

D Dadds FRCSA 6 6 4 4

M McArthur FRCSA (Life) 6 5 - -

P Langford FRCSA 6 6 - -

J Barratt FRCSA 6 5 4 3

S Heather MRCSA 6 6 - -

A Bell FRCSA 6 2 - -

M Hobby FRCSA 6 6 - -

R Olivier FRCSA 4 4 4 4

K Colfer MRCSA 1 1 - -

The entity is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If the RCSA is wound up, the Constitution states that each member is required to contribute a maximum of $50 towards meeting any outstanding obligations. At 30 June 2013 the total amount that members of the entity are liable to contribute if the entity is wound up is $108,950 (2012: $157,450).

Indemnifying OfficersDuring or since the end of the financial year, the Recruitment & Consulting Services Association Ltd (RCSA) has given an indemnity or entered an agreement to indemnify, or paid or agreed to pay insurance premiums as follows:

Premiums have been paid to insure each of the Directors against liability for costs and expenses incurred by them in defending any legal proceedings arising from their conduct while acting in the capacity of Directors of the Recruitment & Consulting Services Association Ltd (RCSA), other than conduct involving wilful breach of duty in relation to the Recruitment & Consulting Services Association Ltd (RCSA) . The amount of premium paid was $8,198.

Auditor’s Independence Declaration The lead auditor’s independence declaration for the year ended 30 June 2013 has been received and commences on page 14 of the annual report.

Proceedings on Behalf of The Recruitment & Consulting Services Association Ltd (RCSA)No person has applied for leave of Court to bring proceedings on behalf of the Recruitment & Consulting Services Association Ltd (RCSA) or intervene in any proceedings to which the Recruitment & Consulting Services Association Ltd (RCSA) is a party for the purpose of taking responsibility on behalf of the Recruitment & Consulting Services Association Ltd (RCSA) for all or part of those proceedings.

The Recruitment & Consulting Services Association Ltd (RCSA) was not a party to any such proceedings during the year. Signed in accordance with a resolution of the Board of Directors.

13

Lincoln Crawley FRCSA Robert Olivier FRCSADirector Director

Dated this 27th day of August 2013 Gold Coast, Queensland

DIRECTORS’ REPORT continued

14

AUDITORS INDEPENDENCE DECLARATION For the year ended 30 June 2013

STATEMENT OF PROFIT OR LOSS For the year ended 30 June 2013

15

Recruitment & Consulting Services Association Limited ABN 41 078 606 416

Note 30 June 2013 30 June 2012

$ $

Revenue 2 3,881,408 3,951,296

Salaries and employee benefits expenses (1,466,995) (1,369,880)

Depreciation expenses 3 (23,151) (66,807)

Education expenses (557,384) (577,332)

Meeting and function expenses -

Government funding

Publications expenses (101,067) (99,763)

Conference expenses (266,012) (527,607)

Membership expenses (10,288) (40,220)

Computer expenses (171,622) (74,401)

Office and administration expenses (626,880) (567,543)

Advertising expenses (63,584) (60,876)

Other expenses 3 (352,380) (264,563)

Profit before income tax expense 242,045 302,304

Income tax expense - -

Profit for the year 242,045 302,304

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

Total comprehensive income for the year 242,045 302,304

The accompanying notes form part of these financial statements

STATEMENT OF FINANCIAL POSITION For the year ended 30 June 2013

16



$ $

Current Assets

Cash and cash equivalents 5 2,114,009 2,285,566

Trade and other receivables 6 183,206 66,025

Other current assets 7 167,399 160,912

Total Current Assets 2,464,614 2,512,503

Non-current Asset

Property, plant and equipment 8 39,662 29,514

Total Non-current Asset 39,662 29,514

Total Assets 2,504,276 2,542,017

Current Liabilities

Trade and other payables 9 179,595 355,448

Employee benefits 10 157,327 175,900

Deferred income 11 887,214 968,239

Total Current Liabilities 1,224,136 1,499,587

Non-Current Liability

Employee benefits 10 19,673 24,100

Total Non-Current Liability 19,673 24,100

Total Liabilities 1,243,809 1,523,687

Net Assets 1,260,467 1,018,330

Members' Funds

Retained profits 1,260,375 1,018,330

Foreign Currency Reserve 92

Total Members' Funds 1,260,467 1,018,330


STATEMENT OF CHANGES IN MEMBERS’ FUNDS as at 30 June 2013

17


Note $

Total Members funds at 1 July 2011 716,026

Total comprehensive income for the year 302,304

Total equity at 30 June 2012 1,018,330

Total Members funds at 1 July 2012 1,018,330

Total comprehensive income for the year 242,045

Foreign Currency Reserve 92

Total equity at 30 June 2013 1,260,375


STATEMENT OF CASH FLOWS For the year ended 30 June 2013

18



$ $

Cash Flow from Operating Activities

Receipts from membership subscriptions and workshops 3,975,961 4,187,486

Payment to suppliers and employees (4,199,985) (3,938,726)

Interest received 85,765 66,936

Net cash generated from operating activities 18(b) (138,259) 315,696

Cash Flow from Investing Activities

Payment for plant and equipment (33,298) (8,046)

Net cash used in investing activities (33,298) (8,046)

Net increase in cash held (171,557) 307,650

Cash and cash equivalents at beginning of the financial year 2,285,566 1,977,916

Cash and cash equivalents at the end of the financial year 18(a) 2,114,009 2,285,566


NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2013

19

Note 1. Statement of Significant Accounting PoliciesBasis of Preparation

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements (including Australian Accounting Interpretations), other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

The financial report covers the Company of the RCSA. RCSA is a company limited by guarantee, incorporated and domiciled in Australia.

The financial report has been prepared on an accruals basis and is based on historical costs modified, where applicable, by the measurement of fair value of selected non-current assets, financial assets and financial liabilities.

The financial report was authorised for issue by the directors on 27 August 2013.

(a) Critical accounting estimates and judgements

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

Key Estimates

Provision for impairment of receivables No provision for impairment of receivables recognised in the statement of financial position as at balance sheet date.

(b) Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Recruitment & Consulting Services Association Ltd (RCSA) Company and the entities it controls. Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. In the separate financial statements of the Company, intra-group transactions (‘common control transactions’) are generally accounted for by reference to the existing (consolidated) book value of the items. Where the transaction value of common control transactions differs from their consolidated book value, the difference is recognised as a contribution by or distribution to equity participants by the transacting entities.

(c) Plant & Equipment

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

Plant and equipment

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

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

Depreciation

The depreciable amount of all fixed assets is depreciated on a straight line basis over the asset’s useful life to the entity commencing from the time the asset is available for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

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

Class of fixed asset Depreciation Rate Furniture & fittings 20 - 33% Computer software & equipment 20 - 33%

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

20

Note 1. Statement of Accounting Policies – continued(d) Employee Benefits

Provision is made for the entity’s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may not satisfy vesting requirements. Those cash outflows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows.

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

(e) Revenue

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

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

Interest revenue is recognised using the effective interest rate method, which for floating rate financial assets is the rate inherent in the instrument.

Grant revenue is recognised in the statement of comprehensive income when the entity obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the entity and the amount of the grant can be measured reliably. If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until those conditions are satisfied.

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

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

(f) Income Tax

The RCSA had been granted “Charity” status by the Australian Taxation Office. This was granted on the of the basis of its status as an educational institution. This status is effective from July 1, 2005.

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

(g) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST except where the amount of GST incurred is not recoverable from the Australian Taxation Office.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities, which are recoverable from or payable to the ATO, are presented as operating cash flows included in receipts from customers or payments to suppliers.

(h) Cash and cash equivalents

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

(i) Leases

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

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

(j) Conference Revenue and Expenses

Conference related revenue and expenditure is brought to account in the statement of comprehensive income in the year that the conference is held.


21

Note 1. Statement of Accounting Policies – continued(k) Impairment of Assets

At the end of each reporting period, the entity reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is recognised in profit or loss.

Where the future economic benefits of the asset are not primarily dependent upon the asset’s ability to generate net cash inflows and when the entity would, if deprived of the asset, replace its remaining future economic benefits, value in use is determined as the depreciated replacement cost of an asset.

Where it is not possible to estimate the recoverable amount of an assets class, the entity estimates the recoverable amount of the cash-generating unit to which the class of assets belong.

Where an impairment loss on a revalued asset is identified, this is recognised against the revaluation surplus in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that class of asset.

(l) Financial Instruments

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to either purchase or sell the asset (ie trade date accounting is adopted). Financial instruments are initially measured at fair value plus transactions costs except where the instrument is classified “at fair value through profit or loss”, in which case transaction costs are recognised in profit or loss immediately.

Classification and subsequent measurement

Financial instruments are subsequently measured at fair value, amortised cost using the effective interest rate method, or cost.

Fair value

Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.

Amortised cost

Amortised cost is the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method.

Financial assets at fair value through profit or loss

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

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost.

Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the entity’s intention to hold these investments to maturity. They are subsequently measured at amortised cost.

Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either not capable of being classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.

They are subsequently measured at fair value with changes in such fair value (ie gains or losses) recognised in other comprehensive income (except for impairment losses and foreign exchange gains and losses). When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other comprehensive income is reclassified into profit or loss.


22

Note 1. Statement of Accounting Policies – continued(l) Financial Instruments – continued

Financial Liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.

Impairment

At the end of each reporting period, the entity assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in profit or loss. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit or loss at this point.

Derecognition

Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial liability, which is extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

(m) Comparative Figures

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

When an entity applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies items in its financial statements, a statement of financial position as at the beginning of the earliest comparative period must be disclosed.

(n) Change in Accounting Policies

Presentation of items of other comprehensive income (OCI)

As a result of early adopting AASB 2012–7, which includes amendments to disclosure requirements arising from the Tier 1 (full-disclosure) Standard AASB 2011–9: Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income that became mandatorily applicable from 1 July 2012, the following changes to the presentation of the company’s financial statements were made during the year:

items of OCI were grouped into:

- items that will not be reclassified subsequently to profit or loss; and

- those that will be reclassified subsequently to profit or loss when specific circumstances occur; and

- the title “income statement” was changed to “statement of profit or loss” under the two-statement approach. Although other titles are also permitted, the company has decided to use the title “statement of profit or loss”.

The adoption of AASB 2011–9 only changed the presentation of the company’s financial statements and did not have any impact on the amounts reported for the current period or for any prior period in the company’s financial statements.


23

Note 1. Statement of Accounting Policies – continued(o) New Accounting Standards for Application in Future Periods

AASB 10: Consolidated Financial Statements, AASB 11: Joint Arrangements, AASB 12: Disclosure of Interests in Other Entities, AASB 127: Separate Financial Statements (August 2011), AASB 128: Investments in Associates and Joint Ventures (August 2011) and AASB 2011–7: Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards (applicable for annual reporting periods commencing on or after 1 January 2013).

AASB 10 replaces parts of AASB 127 (March 2008, as amended) and Interpretation 112: Consolidation – Special Purpose Entities. AASB 10 provides a revised definition of control and additional application guidance so that a single control model will apply to all investees. The company has not yet been able to reasonably estimate the impact of this Standard on its financial statements.

AASB 11 replaces AASB 131: Interests in Joint Ventures (July 2004, as amended). AASB 11 requires joint arrangements to be classified as either “joint operations” (where the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities) or “joint ventures” (where the parties that have joint control of the arrangement have rights to the net assets of the arrangement). Joint ventures are required to adopt the equity method of accounting (proportionate consolidation is no longer allowed).

AASB 12 contains the disclosure requirements applicable to entities that hold an interest in a subsidiary, joint venture, joint operation or associate. AASB 12 also introduces the concept of a “structured entity”, replacing the “special purpose entity” concept currently used in Interpretation 112, and requires specific disclosures in respect of any investments in unconsolidated structured entities. This Standard will affect disclosures only and is not expected to significantly impact the company.

To facilitate the application of AASBs 10, 11 and 12, revised versions of AASB 127 and AASB 128 have also been issued. These Standards are not expected to significantly impact the company.

AASB 13: Fair Value Measurement and AASB 2011–8: Amendments to Australian Accounting Standards arising from AASB 13 (applicable for annual reporting periods commencing on or after 1 January 2013).

AASB 13 defines fair value, sets out in a single Standard a framework for measuring fair value, and requires disclosures about fair value measurement.

AASB 13 requires:

- inputs to all fair value measurements to be categorised in accordance with a fair value hierarchy; and

- enhanced disclosures regarding all assets and liabilities (including, but not limited to, financial assets and financial liabilities) measured at fair value.

These Standards are not expected to significantly impact the company.

AASB 119: Employee Benefits (September 2011) and AASB 2011–10: Amendments to Australian Accounting Standards arising from AASB 119 (applicable for annual reporting periods commencing on or after 1 January 2013).

These Standards introduce a number of changes to accounting and presentation of defined benefit plans. The company does not have any defined benefit plans and so is not impacted by the amendment.

AASB 119 (September 2011) also includes changes to:

(a) require only those benefits that are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service to be classified as short-term employee benefits.

All other employee benefits are to be classified as either other long-term employee benefits, post-employment benefits or termination benefits, as appropriate; and

(b) the accounting for termination benefits that require an entity to recognise an obligation for such benefits at the earlier of:

(i) where for an offer that may be withdrawn – when the employee accepts;

(ii) where for an offer that cannot be withdrawn – when the offer is communicated to affected employees; and

(iii) where the termination is associated with a restructuring of activities under AASB 137 and if earlier than the first two conditions – when the related restructuring costs are recognised.

The company has not yet been able to reasonably estimate the impact of these changes to AASB 119.


24



$ $

Note 2: Revenue

Revenue from operating activities

- membership subscriptions 1,760,233 1,618,580

- education, workshops and functions 672,314 743,727

- sponsors 891,253 852,220

- government funding -

- publications 30,853 30,127

- conferences 413,526 614,799

3,768,179 3,859,453

Revenue from non-operating activities

- interest received 85,765 66,938

- other revenue - other persons 27,464 24,905

113,229 91,843

Total revenue 3,881,408 3,951,296

Note 3: Profit

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

Depreciation & amortisation

- plant and equipment 23,151 66,807

Rental Expense on operating leases

- occupancy lease payments 328,723 311,449

Industrial Relations - Other 226,591 209,781

Note 4: Auditor's Remuneration

Remuneration of the auditors of the company for:

- auditing or reviewing the financial report 25,900 27,000

- taxation services 2,000 10,713

27,900 37,713

Note 5: Cash and cash equivalents

Cash on hand 568 580

Cash at bank 458,403 585,872

Cash on deposit - other 1,655,038 1,699,114

18(a) 2,114,009 2,285,566

Note 6: Receivables

Current

Trade receivables 183,206 68,752

Provision for impairment of receivables (a) 0 0

183,206 68,752

Other receivables 0 (2,727)

183,206 66,025


25

Note 6: Receivables – (continued)

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

(a) Impaired receivables

All of the RCSA’s trade and other receivables have been reviewed for indicators of impairment.

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


$ $

Opening balance at 1 July - (63,382)

Provision for impairment recognised in the year - -

Receivables written back - 63,382

Closing balance at 30 June - -

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

Note 7: Other Assets

Current

Prepayments 167,399 160,912

Note 8: Plant and Equipment

Furniture & fittings

At cost 80,482 157,809

Accumulated depreciation (65,769) (145,388)

14,713 12,421

Computer equipment & software

At cost 205,544 199,644

Accumulated depreciation (180,595) (182,551)

24,949 17,093

Total plant and equipment 39,662 29,514


26

Furniture & Fittings

Computer Equipment &

Software

Total

$ $ $

Note 8: Plant and Equipment – (continued)

Movements in carrying amounts

Carrying amount at 1 July 2011 36,485 51,790 88,275

Additions 2,518 5,528 8,046

Depreciation expense (26,582) (40,225) (66,807)

Carrying amount at 30 June 2012 12,421 17,093 29,514

Movements in carrying amounts

Carrying amount at 1 July 2012 12,421 17,093 29,514

Additions 15,621 17,678 33,299

Depreciation expense (13,329) (9,822) (23,151)

Carrying amount at 30 June 2013 14,713 24,949 39,662


$ $

Note 9: Payables

Current

Trade creditors 56,370 159,027

Sundry creditors & accruals 123,225 196,421

179,595 355,448

Note 10: Employee Benefits

Current

Annual leave 85,000 105,000

Long service leave 72,327 70,900

157,327 175,900

Non-Current

Long service leave 19,673 24,100

19,673 24,100

Note 11: Deferred Income

Current

Subscriptions received in advance 527,742 695,109

Conference income received in advance 131,357 126,640

Other income received in advance 228,115 146,490

887,214 968,239

Note 12: Members' Guarantee

The RCSA is a company limited by guarantee. If the RCSA is wound up, the Constitution states that each member is required to contribute a maximum of $50 each towards meeting any outstanding obligations. At 30 June 2013 the number of members was 2,179.


27


$ $

Note 13: Expenditure Commitments

Lease expenditure commitments

Operating leases (non-cancellable)

Minimum lease payments

- not later than one year 189,376 266,204

- later than one year and not later than five years 665,700 386,868

Aggregate lease expenditure contracted for at balance date 855,076 653,072

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

The RCSA also leases property at Suite 2, 17 Castlereagh Street, Sydney. The lease runs for a period of 5 years. Lease payments increase annually at a fixed rate of 4% per annum.

Note 14: Contingencies

The entity has provided an indemnity guarantee in respect of a bank guarantee in favour of the property owner on the entity's leased premises. 74,736 74,736

Note 15: Events Subsequent to Balance Date

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the RCSA, the results of those operations, or the state of affairs of the RCSA in future financial years.

Key Management Personnel Related Entities

The related entities of members of the board of directors are required to pay membership fees on the same terms and conditions as all other members.

The directors of the RCSA during the financial year were:

Lincoln Crawley FRCSA M McArthur FRCSA (Life)

R van Stokrom FRCSA S Heather MRCSA

H Olivier FRCSA (Life) (retired Nov 29, 2012) A Bell FRCSA

D Dadds FRCSA M Hobby FRCSA

J Barratt FRCSA R Olivier FRCSA (Appointed Nov 29,2012)

P Langford FRCSA K Colfer MRCSA (Appointed May 30, 2013)


28


$ $

Note 16: Related Party Transactions – (continued)Transactions with Key Management Personnel Related Entities:

Consultants fees charged from DFP Pty Ltd

Consultants fees charged from HORNER Recruitment Systems Pty Ltd

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

16,421 9,810

3,645 8,868

20,066 18,678

Note 17: Key Management Personnel

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

Short-term employee benefits 210,096 230,425

Other long term benefits 42,068 -

Post-employment benefits - -

Termination benefits - -

252,164 230,425

Note 18: Cash Flow Statement

(a) Reconciliation of Cash

Cash at the end of the year as shown in the Statement of Cash Flows is reconciled to the related items in the Balance Sheet as follows:

Cash on hand 568 580

Cash at bank 458,403 585,872

Cash on deposit 1,655,038 1,699,114

5 2,114,009 2,285,566

(b) Reconciliation of net profit after tax to net cash flows from operations

Profit after related income tax expense 242,045 302,304

Non-cash items:

Depreciation of non-current assets 23,151 66,807

Increase/(decrease) in provision for doubtful debts - (63,382)

Changes in assets and liabilities:

(Increase)/decrease in receivables (117,181) 95,572

(Increase)/decrease in other current assets (6,487) (59,368)

Increase/(decrease) in payables (175,762) 110,461

Increase/(decrease) in provisions (23,000) 45,000

Increase/(decrease) in other current liabilities (81,025) (181,698)

Net cash flow from operations (138,259) 315,696

Note 19: Company Details

The registered office and principal place of business of the RCSA is: Level 3 63 Exhibition Street Melbourne Victoria 3000


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In the opinion of the directors:

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

(i) giving a true and fair view of the Recruitment & Consulting Services Association Limited’s financial position as at 30 June 2013 and of their performance for the year ended on that date; and

(ii) complying with Australian Accounting Standards.

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

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

Lincoln Crawley FRCSA Robert Olivier FRCSA Director Director

Dated this 27th day of August 2013 Gold Coast, Queensland

DIRECTOR’S DECLARATION For the year ended 30 June 2013

INDEPENDENT AUDIT REPORT

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INDEPENDENT AUDIT REPORT continued

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Recruitment & Consulting Services Association LimitedAustralia & New Zealand

Australia ABN 41 078 606 416New Zealand GST No. 69 328 717

Level 3, 63 Exhibition StreetMelbourne VIC 8000

AustraliaT: +61 9663 0555F: +61 9663 5099

E: [email protected]

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