ANNUAL REPORT 2019
Venue Management Association (Asia and Pacific) Ltd
ABN: 51 056 680 123 Level 1, 110-112 George Street Beenleigh QLD 4207 Australia
P: +61 (0) 7 5575 9185
W: www.vma.org.au
Page | 2
Contents
Office Bearers ...... 4 Board of Directors ...... 4 Venue Management School Committee ...... 4 President’s Report ...... 5 Venue Management School Chair’s Report ...... 12 Financial Report ...... 16 Directors’ Report ...... 17 Auditor’s Independence Declaration under S 307C of the Corporations Act 2001...... 23 Statement of Profit and Loss and other Comprehensive Income ...... 24 Statement of Financial Position ...... 25 Statement of Changes in Equity ...... 26 Statement of Cash Flows ...... 27 Notes to the Financial Statements ...... 28 Directors’ Declaration ...... 37 Independent Auditor’s Report ...... 38 Honour Roll ...... 40 Honorary Members ...... 40 Past President’s ...... 40 Our Brands ...... 41
Page | 3
Office Bearers
Board of Directors
Steve Harper CVE VMA President Chris Farrell AVM Chair, Finance, Audit and Risk Committee David Krug Chair, Membership & Marketing Committee Patricia McNamara CVE Chair, Congress Committee Leighton Wood Chair, Professional Development Committee Brendan Hines Member, Finance, Audit & Risk Committee Phil King AVM Member, Professional Development Committee Milton OBrien CVE Member, Congress Committee Michael Scott Member, Finance, Audit & Risk Committee Paul Sergeant OBE Member, Congress Committee Natalie Valentine Member, Membership & Marketing Committee Judith Vince CVE Member, Membership & Marketing Committee
Venue Management School Committee
Wayne Middleton CVE Chair Anthony Duffy AVM Dean of Leadership Institute Rebecca Barry Nelita Byrne Dean Hassall AVM Steve Hevern CVE Gavin Taylor Andrew Travis AVM Leighton Wood ex officio VMA Board
Page | 4
President’s Report
Dear VMA colleagues
At this time of the year, it is the role of the VMA President to update Members on the activities, achievements and outcomes of the Association’s previous financial period, which in the case of the VMA is the calendar year. Strictly speaking, if I were to do so, I could hand on heart report to you that 2019 was a stellar year for the VMA, financially, operationally, and most importantly in terms of membership services and attendances. Rest assured this report will still detail the 2019 year that was.
But clearly, I felt it is also incumbent on me to address ‘the elephant in the room’. This perhaps may be the most unusual President’s Report authored by a VMA President in its long and proud history. There is no requirement on my part to remind you, our VMA family, of the unprecedented effects of the Covid-19 pandemic for many, if not all of our members and the organisations for which they work or manage.
While the attached report provides an overview of the Association’s activities in 2019, given we are now more than half way through 2020 I wanted to acknowledge and address the significant challenges both the Association and the venue industry has faced these past months.
During this challenging time our industry, our venues and our members have felt the full brunt of the Covid-19 pandemic. While the Association has also experienced a significant loss of revenue related to the cancelation of the Congress and our annual VMS (School), I wanted to assure you that the Association, through your Board, has been working diligently to achieve two major outcomes during this period: Ensuring the continued solvency and ongoing sustainability of our great Association, and Ensuring we are providing the appropriate and customised support to our members and the wider venue industry.
Whilst we have seen a pause to several of our key face to face programs and services, we have placed our focus into other undertakings with great success. All members have been provided a 12- month membership fee free period and we recently launched the VMA Affiliate program to allow the wider industry a sample of the VMA services at no cost and in so doing be welcomed into our community during this period .
At the onset of this crisis we formed two new committees: the Crisis Response Committee and the Strategy Planning Committee. From these several noteworthy initiatives have been forthcoming, including the recent 8-week run of our highly successful and well attended VMA Digital Series; our crisis related resource portal on the VMA website, and our ongoing partnership with other industry Associations and the wider industry within the advocacy space.
We have collaborated with and aligned our advocacy efforts with Live Performance Australia (LPA), the Exhibition and Event Association of Australasia (EEAA); the Entertainment Venues Association Of New Zealand (EVANZ) and most recently with the Live Entertainment Industry Forum Page | 5
(LEIF). Great progress is being made within the wider industry with various Federal and State government agencies by LEIF having a united and aligned voice as we work towards a reopening of venues.
As the Association continues to adapt and we continue to support each other I am confident we will all work through this difficult period together and return to a position of strength soon.
As I write this Report, it’s is pleasing to see our colleagues in New Zealand have now been fully reopened for close to a month and Western Australia is heading in a similar direction, but we are also reminded of the fragility of recovery with the imposition of new lockdowns in Melbourne. In the not too distant future I hope to see all our venues and supplier business’s back in full swing, noting however there are ongoing concerns around both the state of the economy and current international boarder closures, which are having major effects on international artists and sports people entering the country, and indeed crossing State and Territory borders.
I am pleased to report that 2019 was a monumental year for the Association. We made significant progress in numerous areas, specifically, increased membership and record delegate and student numbers at our annual Congress and School. The Association staffing profile and financial position was at its healthiest and we were expanding our membership services and underway with several exciting new initiatives.
Throughout the year I was again reminded of the commitment and enthusiasm demonstrated for the Association by the many dedicated committee members, the Board, the staff, and last but not least our wider member base, sponsors and supporters. It is very rewarding to see this ongoing dedication to the continued growth of the organisation and to ensure the VMA remains as Your Number 1 Venue Industry Network.
It is satisfying to know that all the work we undertake has a positive effect on the industry by delivering more highly qualified venue professionals through our extensive networking and educational forums.
The 2020 AGM will mark my last official duty as the Association’s President and I would like to thank all the Association’s members, our partners, staff, committees, and fellow Board Directors for helping make my term as President a rewarding and enriching experience. It has been a privilege to serve as the Association’s President over the past three years and as a board member these past nine years.
I am very proud of what has been achieved with the Association over my years as a Board member and as President. In my many years on the Board there has been a strong alignment and drive by all my Board colleagues to better the Association. I am honoured to have worked with a dedicated and passionate collective of Board, committee and staff members that have greatly contributed to the Association’s success in recent years.
Page | 6
Thanks to all the Board members I have served alongside, while we have had some healthy and robust debates along the way, ultimately your passion for the Association has continued to deliver great results back to our membership.
I want to wish the new Board and incoming President all the best with the immediate challenges ahead as they steer the Association towards what I am confident will be a prosperous and bright future.
I’d like to extend a personal thanks to the VMA’s CEO Michael Brierley. Michael’s commitment and dedication in driving the Association has been refreshing and has made my tenure rewarding. Thanks Michael - keep up the great work.
I have always considered the VMA as my large and extended family, there to support one another through good times and bad. Indeed, one of the core characteristics of our Association is that while our Association is a collective of individual members, we have always functioned on the basis that "The whole is greater than the sum of its parts”. I truly believe this. There is no denying the challenges that lie before us, but I am absolutely confident that united, our VMA family will support one another, empower one another and that through the current adversity we will emerge – arguably different, but ultimately more agile, successful and ready to meet the challenges and opportunities that lie ahead individually and as an industry.
The Year in Review
Strategic Plan
The Board and staff remained committed to the Associations five year strategic plan, whilst remaining flexible to capitalise on all new opportunities. The Board determined that the primary focus of the Association over this cycle was the key strategic areas of Membership Benefits; Professional Development and Education; Knowledge Sharing Opportunities; Professional Recognition; and Good Governance and Management.
Membership Benefits
In 2019 we once again placed a high priority on growing the organisation's membership. Whilst we did not reach our aspiration of 1,000 members, we have increased by almost 25% and are just shy of 900 members. I am optimist membership will continue to grow. Whilst we have focused on our primary membership groups (Active and Allied) we have also ensured we are building our base of Student and Young Professional members who are a vital stepping stone to full membership. Whilst there has been a keen focus on membership growth, we have also placed significant effort into membership value by initiating new services.
My thanks again to the Membership and Marketing Committee, chaired by David Krug. David and the team have been unrelenting in pushing the membership initiatives, membership value and have demonstrated a strong desire along with a creative and open-minded approach to grow the membership. Special thanks to David for sticking the course with our Group Membership program that has proved to be a major success. Page | 7
Professional Development and Education
In 2019 we celebrated the Venue Management School's 26th year where we continued to educate our next generation of industry leaders. We continued to break records by celebrating another record attendance across the Venue Management School and Leadership Institute with 118 students, surpassing last year’s record student numbers.
The ongoing success of the School is testimony to the dedicated team of volunteers who make it all happen. With a unique mix of local and international lecturers across both Schools the program delivers high quality graduates with an industry recognised qualification and the opportunity to undertake the new VMA-owned and nationally recognised Diploma of Venue Management.
My personal thanks and gratitude are extended to all of our instructors who generously volunteer their time to be a part of the School and to the VMS Committee chaired by Wayne Middleton CVE. Wayne has continued a path of professionalizing and streamlining the School’s delivery and in turn furthering the positive reputation it maintains within the industry.
Thanks also to the hard work and focus of the Professional Development Committee, chaired by Leighton Wood. This group along with our CEO have challenged our traditional approach to education and have introduced numerous new professional development initiatives.
Knowledge Sharing Opportunities: Congress and After 5's
In May 2019 we welcomed 406 delegates to the Melbourne Convention and Exhibition Centre for our annual Asia Pacific Venue Industry Congress. This was the Associations largest ever, and the Congress remains the single largest meeting of venue professionals in the APAC region. We all braved the balmy (close to zero I recall) Melbourne Autumn to enjoy an exceptional program of presenters, our wayward New Zealand MC, an amazing venue, and numerous social events.
With our theme “Innovate and Adapt” our delegates heard from an amazing range of guest presenters covering a wide variety of topics and trends unique to our industry.
Thanks to our Congress Committee, chaired by Chris Farrell, and ably supported by his team who worked diligently in co-ordinating an exciting educational program, including a range of motivational presentations, diverse technical sessions, international and local speakers, as well as a terrific social program.
The industry continues to enthusiastically support the Congress through a full trade exhibition and a committed group of industry supporters and sponsors. My thanks go to our Principal Sponsor in 2019 Priava for their generous support, as well as our many long-term sponsors including Ticketek, Ticketmaster, MA Security Group, Ungerboeck, and ASM Global.
The VMA’s After Five! networking events continue to be well supported. During the year 18 events were held across the region, including 3 in Sydney, 2 in Auckland, Melbourne, Brisbane, Gold Coast,
Page | 8 and Adelaide, and one each in Perth, Wellington, Cairns, Canberra and Gladstone attracting over 1100 guests in total.
These initiatives provide strong forums for our members to get together and discuss industry issues and make new connections. The VMA Board would like to recognise and thank all venues and sponsors who supported these programs during the 2019 year.
Professional Recognition: Awards and Accreditation
In Melbourne we recognised and acknowledge the stars of our industry through our Annual Venue Industry Awards which were presented at our Gala Dinner.
As the premier industry Awards night, we celebrate the achievements of our industry, acknowledge our industry icons, and recognise our shared commitment to excellence. I congratulate our 2019 Award recipients:
Gary Mears, CVE - Venue Professional of the Year Paul McCarthy - Allied Professional of the Year, and Eray Saban - Young Achiever of the Year
The industry’s night of nights were topped off by the awarding of the VMA's Lifetime Achievement Award which was bestowed on the very deserving Cliff Wallace CVE.
During the year the VMA continued to recognise the annual intake of new Accredited Venue Managers (AVM) as part of its professional recognition programs. One additional member achieved this accreditation in 2019, raising the total number of AVM’s to 75 members. This program supports the internationally recognised Certified Venue Executive (CVE) program. The CVE program has continued to be supported by VMA members with two new members Timothy Long CVE and Brendon Ellmer CVE, gaining accreditation in 2019, bringing the total number of CVE’s in the Asia Pacific Region to 24 members. The VMA encourages all of our members to invest their time in achieving their AVM or CVE status and cementing their professional status within the industry.
International Relationships
In July 2019, both myself and CEO Michael Brierley, attended the International Association of Venue Managers (IAVM) Annual Venue Connect and Board Meeting in Chicago, USA. The VMA continues its close relationship with the IAVM through our affiliation agreement that provides international exposure and benefits for VMA Members through our reciprocal membership rights.
The VMA has worked closely with the board and management of IAVM to ensure that the Affiliation Agreement delivers membership and strategic benefits for both Associations. The IAVM produces the Facility Manager magazine which is distributed to all VMA members with regular contributions to the magazine made by regional members.
Page | 9
In November 2019 I had the pleasure of finalising our enhanced MOU with our great friends in New Zealand, EVANZ. Working co-operatively with my counterpart, EVANZ Chair Keith Parker, we signed an extension of our relationship to jointly commit to a number of initiatives that deliver reciprocal benefits and support the ongoing development of the venue industry in NZ.
I am also delighted to report the continued strengthening of our relationship with UFI. In December 2019 we delivered our 3rd year of the VMS China School and looking forward to launching our joint VMS Macau School in 2021. Both of these initiatives enables the Association to deliver professional development opportunities within the wider region and strengthen our brand in the fast growing area.
Communications
The VMA’s membership and industry communication programs continues to grow with the electronic Members Newsletter, issued on a fortnightly basis, providing the membership with a regular update on industry affairs, news and views and the successful Industry Jobs Board which posted 100 positions vacant during the year.
The use of the VMA’s website as a source of information continues to grow and our presence and use of social media continues to expand and remains a cornerstone of our communication with membership. Our Members Only Facebook group has continues to expand as our online peer to peer knowledge sharing platform.
The latest edition of our Annual Membership Directory (the Who’s Who) continues to be the bible for industry networking and has now been brought in house, with its production managed by our great team in the VMA office.
Our longstanding relationship continues with Australasian Leisure Management as our media partner and members continue to receive updates and publications from this source. The utilisation of the electronic ‘Weekly News’ service continues to grow under a regular news feed agreement with Australasian Leisure Management magazine, further increasing membership benefits.
Good Governance and Management
All VMA Board Directors actively participated and played a significant role in the annual operation of the Association’s activities throughout 2019. Four Board Meetings were held during the year as well as regular meetings held by the VMA’s four main sub-committees: Finance, Risk and Audit; Congress; Membership and Marketing; and Professional Development, which continue to plan programs to deliver and improve on these areas of the Association.
On behalf of the VMA Board I would like to thank the staff of the VMA Office, CEO Michael Brierley, Events & Operations Manager, Maria Lamari; Finance & Administration Manager, Amanda Jamieson; Zan Lewarn our Education and Marketing & Communications Coordinator Laura Bedser.
Page | 10
Financials
The financial performance of the Association continues to be stable and managed on a sound financial basis. The Association experienced a full year profit of $108,819 and our current reserves remain healthy at $716,084. The Board, in developing the budget for the year recognised that the Association is in a strong position and as a not for profit entity can now afford to reinvest funds back into the members and industry through specific programs.
In closing, I would like to thank my fellow VMA Board Directors for their significant contributions in time and effort and the support they have given to me over the last 12 months. Every Board Director gives up their time free of charge to contribute to the ongoing affairs and management of the VMA, with all travel and associated meeting expenses the responsibility of each individual Board Director.
At the 2019 AGM the Association welcomed new Board members Paul Sergeant, Natalie Valentine, Brendan Hines and returning member Leighton Wood. We also took the opportunity to thank the retiring Board members; Jason Hill, Helen Glengarry, and John Glenn. On behalf of the members I would like to thank them all for his commitment and service to the Association.
The VMA will continue to play an active role in uniting and assisting the industry as we know that one of the greatest strengths of our Association is the support, camaraderie and friendship that underpins membership. The VMA’s strength has always been in its members and their willingness to share knowledge and experiences, support each other and come together as a collective.
Steve Harper, CVE President
Page | 11
Venue Management School Chair’s Report
2020 School Cancellation As we all navigate the most difficult year in our industry’s history caused by COVID-19, our thoughts are with those who have lost their jobs, their staff, or have struggled through personal circumstance resulting from the shutdown. It will take some time to understand the cost of this pandemic on our lives, our jobs and our industry. It is my hope that the disruptions are less significant than expected, and we can resurrect the industry we all love.
The cancellation of this year’s School was a difficult choice for the VMA Board and Venue Management School (VMS) Committee. It will be with fond memories that we pause and reflect on Sunday the 15th of November this year, in what would have been the start of the 27th VMS at the Peppers and Mantra Resorts in Kingscliff, New South Wales, Australia. This is the first time in the School’s history there has been cause for its cancellation.
The Committee has responded during this period by working in conjunction with the VMA Board, to host a highly successful Digital Series each week. We remain determined to provide relevant, informative, and interesting sessions on topics important to our industry’s success. We will stay connected with our students (past and present), and the broader membership, and look forward to a vibrant and swift industry recovery. Thank you to all who have assisted in delivering this important service, and for registering your interest in the sessions.
Overview As Chair of the VMS Committee, I am grateful for the venue industry’s continued support of the School, and on behalf of the Committee, offer below the 2019 VMS Report.
Last year’s School was the 26th consecutive School, held from Sunday 10th November through to Friday 15th November 2019. It represented another significant year for this industry leading institution, following several years of continued growth and success.
2019 saw 118 students participate in the one-week intensive program, which was up from 111 in 2018. The enrolments included 54 students in Year One and 46 for Year Two. There was also a full enrolment quota of 18 students who participated in the Leadership Institute (LI) program. This demonstrated the continued relevance that the School has to the industry and the valued return it provides employers for their investment in their people.
In 2019 we attracted students from across the region, with 88% from Australia, 10% from New Zealand and 2% from Hong Kong. Students came from both active and allied industry memberships and from a range of operational, middle management and senior management roles in their workplaces.
The 2019 School was well supported by our dedicated team of 24 instructors who are all industry leaders in their own right. All are passionate about sharing their knowledge and donating their time. They delivered 42 subjects across the VMS and LI programs collectively and participated in both structured and informal extracurricular activities. This provided an intensive learning environment, with an opportunity to learn and connect with other industry professionals from lectures and networking functions throughout the week.
Page | 12
On behalf of the VMS Committee we thank the instructors for their kind dedication to the School; in helping build industry talent for the future.
Leadership Institute As announced in 2018, the VMS Committee chose to change the eligibility criteria for prospective LI enrolments, to allow people with relevant senior industry experience to apply, even if not a previous graduate of VMS. This change coincided with the Committee electing to extend the LI Dean, Mr Anthony Duffy AVM, in the role for an extra year. This was seen to provide important continuity at what was a challenging time for LI’s survival.
Following the 2018 changes, demand for the LI has continued to grow, allowing for achievement of full enrolment again in 2019. The application process for LI candidates ensures a high calibre of students to collaborate on various educational sessions. This translates into an enriched learning experience for prospective venue industry executives, which is supported by the positive feedback received by our students.
The 2019 LI program continued to provide an excellent platform for aspiring venue professionals to broaden their skills and knowledge in pursuit of more senior leadership roles in their career. An impressive program was delivered across topics including: DISCovering your Leadership Style, Strategic Planning, The Art of Negotiation, Engagement, Empowerment and Great Service, Problem Solving, Leading Change, and a new Executive Safety and Security Symposium.
One of last year’s highlights was a presentation by Todd Greenberg. At the time, Todd was CEO of the National Rugby League and a long supporter of the venue industry. Todd gave some outstanding insight into the challenges of leading one of Australia’s top professional sporting codes. Todd is an alumni of the School and has provided guest presentations at School and Congress over many years. His contribution to our industry has been enormous and we welcome his ongoing involvement in the School.
VMS Instructors Our 2019 School again saw the return of our US-based instructors, Richard Anderson CVE - President & CEO of Seafair in Seattle, Washington; Kim Bedier CVE - Director of Venues & Events for the City of Tacoma, Washington; and Steve McKenzie – President of EventBooking in Knoxville, Tennessee. These three bring a wealth of international industry experience, and are all involved with the IAVM’s VMS in Florida. This provides us with the ability to benchmark and share ideas between our School and that hosted in North America. That relationship will continue to develop with the recent announcement of Dean Hassall, Principal of Dean Hassall Consulting, being accepted into the US School as an ongoing instructor. This is in addition to our exchange program, where each year we send an instructor to their School, and they send one to ours. This will be discussed later in this report.
We also welcomed two new instructors in 2019: Nelita Byrne - Venues Manager, New Plymouth District Council in New Zealand and Adam Lister - Group General Counsel for ASM Global (Asia Pacific, India & Middle East). Nelita is a highly respected senior industry professional in NZ and brings a great perspective to our instructor pool from across the Tasman. Adam brought a unique skill set to the instructor panel, from a major global venue operator’s perspective and did an outstanding job in his first year, taking on Contract and Business Law. Nelita delivered Event Page | 13
Operations Planning and Emergency Management Preparedness and also delivered her sessions well.
VMS North American Exchange Instructor The partnership between our VMS and IAVM’s VMS at Saddlebrook Resort in Tampa Bay, Florida remains strong. In addition to the US-based instructors mentioned earlier, we continue to have an instructor exchange program, where an instructor from our School lectures at their School each year and in return a North American-based instructor attends our VMS.
In 2019, our guest instructor was Chris Whitney CPA, of Intrust Bank Arena, Kansas in the US. Chris is the Assistant General Manager/Director of Finance of this ASM Global managed facility. Chris is also a member of the IAVM VMS Faculty and 2nd Chair Elect on the IAVM Board of Regents. At our School she lectured in Financial Management in Year One and also participated in the Year Two Town Hall. Chris also provided the main address on Wednesday evening’s School function which was well received by all students.
In 2019, Katherine Norman AVM, Senior Account Manager, Presenter Services at Arts Centre Melbourne, represented the VMS at the IAVM’s School as the guest instructor. The exchange program is valued by both Schools and will continue when School resumes in 2021.
Student Awards Consistent with previous years, the 2019 VMS continued to offer two major awards to high achieving students from Year One & Year Two. They were the: USI Ungerboeck Bursary; and ASM Global Scholarship
The USI Ungerboeck Bursary is presented to the student from Year One with the highest score in the exam. In 2019 the winner was Zoe Anastasiou, Assistant Accountant for the Melbourne Cricket Club. The award means Zoe will have her Year Two fees fully funded by USI Ungerboeck when School returns.
The ASM Global Scholarship is presented to a student from Year Two, combining academic achievement with School participation and overall excellence. The 2019 winner was the Year One winner from 2018, Cathy Chambers, Account Manager, Auckland Live in NZ. The award will grant Cathy full enrolment into the US Graduate Institute (GI) program for 2021.
We are grateful for the long-standing sponsorship of both ASM Global and USI Ungerboeck in their financial support of the School.
Governance 2019 saw a change in the governance structure between the School Committee and the VMA Board. A change in the Committee’s Charter saw a restructure of the VMA’s Professional Development (PD) Committee, consisting of two VMA Board members, the VMS Chair and the LI Dean. This aimed to ensure closer alignment across all educational products offered by the VMA. The PD Committee Chair would remain a Board member and provide the interface between the Board and the VMS, rather than the Ex-Officio Board position previously held by the VMS Chair. The VMS Chair shall provide reports to the Board periodically but will no longer be required to attend every Board meeting. Page | 14
VMS Committee The VMS Committee continues to explore opportunities and initiatives to improve the School. In 2019, the School commissioned an academic advisor, Paul Jonson, Associate Professor from the University of Technology Sydney (UTS). Paul’s brief was to conduct a review of LI delivered throughout the week. Paul provided useful feedback regarding content and delivery styles across the LI sessions. This review is likely to continue in future Schools, to ensure the learning methods and content remain the highest quality possible.
The VMS Committee also adopts other means to help drive continuous improvement. Following focus group feedback from student representatives across each cohort, a detailed review of the previous year’s School was conducted in February this year to reflect on all subjects and instructor standards. This helps ensure that the students are provided with the best possible learning environment and value for their organisation’s investment.
The Committee strives for educational excellence; to offer a unique learning opportunity that is valued by our membership and the industry at large. In 2019, it comprised of Anthony Duffy AVM - (Dean of LI), Rebecca Barry, Katherine Norman AVM, Dean Hassall CVE, Andrew Travis AVM, Steve Hevern CVE, and Gavin Taylor AVM. Nelita Byrne was welcomed onto the Committee, following the completion of the 2019 School and Katherine Norman completed her second term and stood down from the Committee. Katherine has made an enormous contribution to the School over the years and her input on the Committee will be missed. On behalf of the Committee we thank her for her service, and look forward to her continued contribution as an instructor.
Working closely with Steve Harper CVE, as President of the VMA, and Leighton Wood, as Chair of the Professional Development Committee, the School’s Committee will support the VMA Board to offer an exceptional educational benefit to its members.
VMA Office In my role as Chair, I wish to acknowledge the contribution of not only those listed earlier but also the VMA Office, who worked tirelessly throughout 2019 and especially helping deliver the School. In particular, I wish to thank VMA CEO Michael Brierley, together with Education Manager, Zan Lewarn; Manager of Events and Operations, Maria Lamari; Amanda Jamieson, Manager, Finance & Administration and our Marketing and Communications Coordinator Laura Bedser, for the work they have done and the continuing success of the School.
The Future Throughout 2020 and into 2021, we look forward to working closely with the VMA Professional Development Committee, to help implement its Education Strategy. This will create a solid professional development foundation for everyone in the industry into the future.
So as venues in Australia and New Zealand begin to reopen, we can only hope our recovery is strong and that the industry can return to a position that is better and more vibrant than ever. Our thoughts go out to all our instructors, students and VMS alumni adversely affected by the tragic disruption of COVID-19 and we look forward to the day when the VMS returns in 2021.
Wayne Middleton, CVE Chair - Venue Management School Committee Page | 15
Financial Report
Page | 16
Directors’ Report
The Directors presents their report on Venue Management Association (Asia and Pacific) Limited, for the financial year ended 31 December 2019.
1. General Information
Directors
The names of each person who has been a director during the year and to the date of this report are: Patricia McNamara CVE Chris Farrell AVM David Krug Leighton Wood Milton OBrien CVE Judith Vince CVE Steve Harper CVE Philip King AVM Michael Scott Natalie Valentine appointed (28/05/2019) Brendan Hines appointed (28/05/2019) Paul Sergeant appointed (28/05/2019)
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
Principal Activities
The principal activity of the entity during the financial year was the promotion, education and assistance in venue management activities.
Objectives and Strategy
The entity's objectives are to: promote co-operation and mutual assistance between people and organisations associated with public venue management provide education and training and to assist in the establishment of educational programmes and courses at trade, technical and professional levels for people involved in public venue management arrange meetings, conferences, conventions and trade exhibitions for the benefit of people involved in public venue management and to publish and distribute papers, magazines, bulletins, pamphlets, video tapes or other material related to all its aspects; foster the use of public venues for the recreation and entertainment of the public and to encourage recognition by governments and the public that the use and development of public venues contributes economic benefits to the community; assist in developing the profession of public venue management at its highest level and in particular to develop a code of professional behaviour for all people involved in public venue management; and meet and liaise with national and international associations of people involved in public venue management and other allied organisations associated with the industry generally. New Accounting Standards Implemented
The entity has implemented three new Accounting Standards that are applicable for the current reporting period.
AASB 15: Revenue from Contracts with Customers, AASB 1058: Income of Not-for-Profit Entities, and AASB 16: Leases have been applied using the cumulative effective method; that is, by recognising the cumulative effect of initially applying AASB 15, AASB 1058 and AASB 16 as an adjustment to the opening balance of equity at 1 Page | 17
January 2019. Therefore, the comparative information has not been restated and continues to be reported under AASB 118: Revenue, AASB 117: Leases and AASB 1004: Contributions. Also to note in relation to AASB 16 is that the entity has applied the temporary relief for peppercorn leases under AASB 2018-8 to measure the right-of-use assets at cost on initial recognition. Further information is provided in Note 1.
Information on Directors
Steve Harper CVE Director Qualifications Bachelor of Business (Marketing and Finance) Certified Venue Executive Experience Currently Venue Industry Consultation Director of Australian Open - M & OP Melbourne Park 2 years director of Arena's M & OP Melbourne Park 1 year General Manager Rod Laver Arena, Melbourne Park 5 years CEO / Director of Venue Operations, Venues West, Perth 7 years Director / Assistant Director, Seven Venues, Norfolk, USA 9 years Event Manager, University of Washington, Seattle, USA VMA Board Member since 2012, Chairperson since 2017 VMA Member since 2009
Special Responsibilities Chairperson
Patricia McNamara CVE Director Qualifications Public Venue Management School Year 1 Public Venue Management School Year 2 Public Assembly Facility Management School (PAFMS IAAM) Graduate Institute 2007 Oglebay, West Virginia USA Certified Venues Executive 2010 Advanced Diploma of Management Advanced Diploma of Business Diploma of Venues and Events Accredited Venue Manager Experience 1991 - 1998 Event Marketing AEG Ogden 1998 - 2001 Events Executive, AEG Ogden 2001 - 2006 Events Manager, AEG Ogden 2006 - current General Manager, AEG Ogden VMA Board Director since 2013 VMA member since 2000 Special Responsibilities Chairperson of the Congress Committee
Chris Farrell AVM Director Qualifications Bachelor of Economics Bachelor of Law Masters of Law Australian Legal Practitioner Experience Managing Director, Venue Legal Consulting Pty Ltd since 2007 35 years’ experience as a lawyer Board member Arid Zone group of companies since 2018 VMA Board member since 2013 VMA member since 2004 Special Responsibilities Chairperson of the Finance, Audit and Risk Committee
Page | 18
David Krug Director and Company Secretary Qualifications Bachelor of Business (Marketing) Catering and Hotel Management, Victoria University Fellow Australian Institute of Marketing (FAMI) Certified Practicing Marketer (CPM) Experience Director Krug Consulting since 2007. A consultancy practice providing services across the hospitality, media, sports and entertainment sectors Director Tix Group since 2007 Director TV Eyes Asia Pacific since 2013 Director TLS Boca Systems Asia Pacific since 2019 3 years General Manager Rehame Media Monitoring and Analysis 9 years Chief Corporate Development and Marketing Officer and other management positions with Ticketmaster 1 year Sales Manager Oakford Hospitality 6 years various senior management roles Rydges Hotels and Resorts VMA Board member since 2015 VMA member since 1994 Special Responsibilities Chairperson of the Membership and Marketing Committee
Leighton Wood Director Qualifications Bachelor of Applied Science Master of Business Administration Advanced Management Program Graduate Australian Institute of Company Directors Experience At Director level: 2 years Non-Executive Director, Womens Golf Australia 5 years Executive Director, Sport Knowledge Australia 4 years Non-Executive Director Venue Management Association Asia Pacific 3 years Non-Executive Director, Exhibitions and Events Association of Australasia At management level: 5 years Entertainment Manager Tooleybuc Sporting Club 5 years Manager, Bond University Fitness Centre 2 years CEO, Melbourne Major Events Company 2 years CEO, Melbourne Commonwealth Games 5 years CEO, Sport Knowledge Australia 9 years COO, Melbourne Convention and Exhibition Centre VMA Board Director since 2016 VMA member since 2014
Special Responsibilities Chairperson of the Professional Development Committee
Milton OBrien CVE Director Qualifications Advanced Diploma Events Management Certified Venues Executive Venue Management School Year 1 Venue Management School Year 2 Experience Currently Director of Commercial, Venues Canberra General Manager Inspire Strategic Solutions Venue Management consultant Hawkridge Entertainment Services Director of Events Waples Marketing Group 2016 - 2018
Page | 19
General Manager Pirtek Stadium Parramatta 2013 - 2016 General Manager Venues and Events Aspire Zone, Doha, Qatar, 2009 - 2013 Manager Business Development and Marketing WIN Sports and Entertainment Centre, Wollongong 1998 - 2009 VMA Board Director since 2017 VMA Member since 2002
Special Responsibilities Member of the Congress Committee
Judith Vince CVE Director Qualifications Bachelor of Economics MAICD Executive Council Live Performance Australia Certified Venue Executive Experience 11 years various management roles Crown Perth 11 years Venue Manager Derwent Entertainment Centre VMA Board Director since 2010 VMA member since 2005 Special Responsibilities Member of the Membership & Marketing Committee
Phil King AVM Director Qualifications Bachelor of Business Venue Management School - Year 1 Venue Management School - Year 2 Graduate Institute - 2014 Experience Current – General Manager – Adelaide Entertainment Centre & Coopers Stadium; 7 years Commercial Manager Suncorp Stadium 5 years Commercial Manager Qudos Bank Arena 18 Months Director of Live Entertainment ICC Sydney VMA Board Director since 2017 VMA member since 2008
Special Responsibilities Member of the Professional Development Committee
Natalie Valentine Director Qualifications Bachelor of Applied Science - Exercise Science Experience Deputy CEO Kardinia Park Stadium 2 years Chief Operating Officer Kardinia Park Stadium 2 years Executive Officer Kardinia Park Steering Committee Precinct & Australian Open Manager - Melbourne and Olympic Parks 1 year Manager Simonds Stadium & Co-Ordinator Sports Venues, Geelong 4 years Venue Manager Geelong Arena 2 years VMA Board Member since 2018 VMA Member since 2014
Special Responsibilities Member of the Membership and Marketing Committee
Page | 20
Brendan Hines Director Qualifications Bachelor of Commerce, Accounting and Economics Deakin University Certified Practicing Accountant (CPA) Experience Financial Controller IMG (NZ) Ltd 2000 - 2005 Finance Manager Vector Arena 2005 - 2010 General Manager Spark Arena since 2010 VMA Congress Committee 2018 VMA Board Member since 2019 VMA member since 2007
Special Responsibilities Member of the Finance, Audit and Risk Committee
Paul Sergeant Director Experience SVP Operations Asia ASM Global since March, 2019 Managing Director PSE March, 2016 - February, 2019 CEO Etihad Stadium October, 2012 - February, 2016 General Manager Allphones Arena Sept 2010 - Sept 2012 CEO Scarlets Rugby August 2009 - August 2010 General Manager Suncorp Stadium Feb 2007 - July 2009 CEO Millenium Stadium Feb 2003 - Dec 2006 Freelance Feb 2000 - Feb 2003 Stadium, Arena & Commercial Director Wembley PLC March 1988 - Jan 2000 Operations Manager L & R Leisure Oct 1985 - Mar 1988 Catering Manager Alton Towers July 1981 - Sept 1985 Founding Member European Arenas Association Founding Member European Stadium Management Assoc. VMA Board Member since 2018 VMA Member since 2011
Special Responsibilities Member of the Congress Committee
Michael Scott Director Qualifications Certificate in Hospitality and Tourism Experience 7.5 years General Manager at RAC Arena; 5.5 years General Manager at Mustard Catering/ State Manager Hospitality and Retail at Spotless Services (Dual Role); 6.5 years General Manager, Food and Beverage Services at AEG Ogden (Perth); 12 years Miscellaneous Management Experience in venues including hotels, racecourses and airports in Western Australia; Board director Hospitality Group Training (WA) since 2007 President Tourism Division Australian Hotels Association (WA) since 2014 Board Director Event Industry Association since 2014 VMA Board Director since 2017 10 years as a Board Director Restaurant & Catering Association (WA) 2 years as a Board Director International Wine and Food Society (WA) 2 years as a Board Director Joondalup TAFE VMA Board Director since 2017; and VMA Member since 2004. Special Responsibilities Member of the Finance, Audit and Risk Committee
Page | 21
Meetings of Directors
During the financial year, four meetings of directors were held. Attendances by each director were as follows:
Directors’ Meetings Number eligible to attend Number attended Patricia McNamara CVE 4 4 Chris Farrell AVM 4 4 David Krug 4 4 Leighton Wood 4 4 Milton OBrien CVE 4 4 Judith Vince CVE 4 3 Steve Harper CVE 4 4 Philip King AVM 4 4 Natalie Valentine 3 2 Brendan Hines 3 3 Paul Sergeant 3 3
The entity is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the entity is wound up, the constitution states that each member is required to contribute a maximum of $50 each towards meeting any outstanding obligations of the entity. At 31 December 2019, the total amount that members of the entity are liable to contribute if the entity is wound up is $44,500 (2018: $34,150).
Auditor’s Independence declaration
The lead auditor’s independence declaration for the year ended 31 December 2019 has been received and can be found on page 7 of the financial report.
This directors' report is signed in accordance with a resolution of the Board of Directors.
Director
Steve Harper CVE
Dated this 24th day of April 2020
Page | 22
Auditor’s Independence Declaration under S 307C of the Corporations Act 2001
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Venue Management Association (Asia and Pacific) Ltd. As the lead audit partner for the audit of the financial report of Venue Management Association (Asia and Pacific) Ltd for the year ended 31 December 2019, I declare that, to the best of my knowledge and belief, there have been no contraventions of:
i. the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and ii. any applicable code of professional conduct in relation to the audit.
Name of Firm sps audit
Name of Principal Stephen J Shirley
Date 28-May-20
Address Suite 8b, Matlow Place
19 Birtwill Street
COOLUM BEACH QLD 4573
Page | 23
Statement of Profit and Loss and other Comprehensive Income
For the Year Ended 31 December 2019
Note 2019 2018 $ $
Revenue 2 9,027 8,539
Other income 2 1,775,071 1,481,696 Employee benefits expense (530,360) (464,245)
Depreciation and amortisation expense 3 (5,031) (7,125)
Interest expense 3 (2,668) -
Impairment losses on financial assets 3 - (1,045)
Rental expense 3 (57,036) (48,726) Marketing expenses (32,197) (10,423) Administration expenses (195,334) (118,902) IAVM expenses (48,834) (44,491) Congress expenses (487,070) (546,699) VMS and LI expenses (316,016) (347,470) Sundry expenses (733) (14,041)
Current year surplus / (deficit) before income tax 108,819 (112,932) Income tax expense - - Net current year surplus / (deficit) 108,819 (112,932)
Other comprehensive income Other comprehensive income - - Total other comprehensive (losses)/income for the year - - Total comprehensive income for the year 108,819 (112,932) Surplus / (deficit) attributable to members of the entity 108,819 (112,932) Total comprehensive income attributable to members of the entity 108,819 (112,932)
The accompanying notes form part of these financial statements.
Page | 24
Statement of Financial Position As At 31 December 2019
Note 2019 2018 $ $ ASSETS CURRENT ASSETS
Cash and cash equivalents 4 718,799 533,870
Accounts receivable and other debtors 5 129,977 17,835
Other current assets 6 91,280 109,300 TOTAL CURRENT ASSETS 940,056 661,005
NON-CURRENT ASSETS
Property, plant and equipment 7 6,321 10,042
Right-of-use assets 8 141,493 - TOTAL NON-CURRENT ASSETS 147,814 10,042 TOTAL ASSETS 1,087,870 671,047
LIABILITIES CURRENT LIABILITIES
Accounts payable and other payables 9 206,056 31,863 Lease liabilities 14 13,054 -
Employee provisions 10 21,569 31,919 TOTAL CURRENT LIABILITIES 240,679 63,782
NON-CURRENT LIABILITIES
Accounts payable and other payables 9 - -
Lease liabilities 14 131,107 -
Employee provisions 10 - - TOTAL NON-CURRENT LIABILITIES 131,107 - TOTAL LIABILITIES 371,786 63,782 NET ASSETS 716,084 607,265
EQUITY Retained surplus 708,075 599,256 Reserves 8,009 8,009 TOTAL EQUITY 716,084 607,265
The accompanying notes form part of these financial statements.
Page | 25
Statement of Changes in Equity For the Year Ended 31 December 2019
Retained General Total Surplus Reserve
$ $ $ Balance at 1 January 2018 712,188 8,009 720,197 Comprehensive Income Surplus / (deficit) for the year attributable to owners of the entity (112,932) (112,932) Other comprehensive income for the year - - Total other comprehensive income - - - Total comprehensive income attributable to owners of the entity (112,932) - (112,932) Balance at 31 December 2018 599,256 8,009 607,265 Balance at 1 January 2019 599,256 8,009 607,265 Comprehensive Income Surplus / (deficit) for the year attributable to owners of the entity 108,819 108,819 Other comprehensive income for the year - - Total other comprehensive income - - - Total comprehensive income for the year 108,819 - 108,819 Transactions with members, in their capacity as members, and other transfers - - Total transactions with members and other transfers - - - Balance at 31 December 2019 708,075 8,009 716,084
For a description of each reserve, refer to Note 16.
The accompanying notes form part of these financial statements.
Page | 26
Statement of Cash Flows For the Year Ended 31 December 2019
Note 2019 2018 $ $ CASH FLOWS FROM OPERATING ACTIVITIES Receipts from donations, bequests and raffles 1,789,582 1,455,450 Payments to suppliers and employees (1,612,370) (1,548,033) Interest received 9,027 8,539
Net cash generated from operating activities 15 186,239 (84,044)
CASH FLOWS FROM INVESTING ACTIVITIES Payment for property, plant and equipment (1,310) (10,247) Net cash used in investing activities (1,310) (10,247)
CASH FLOWS FROM FINANCING ACTIVITIES Repayment of borrowings - - Increase in borrowings - - Net cash used in financing activities - -
Net increase in cash held 184,929 (94,291) Cash on hand at beginning of the financial year 533,870 628,161
Cash on hand at end of the financial year 4 718,799 533,870
The accompanying notes form part of these financial statements.
Page | 27
Notes to the Financial Statements For the Year Ended 31 December 2019
Note 1 Summary of Significant Accounting Policies
Basis of Preparation
These special purpose financial statements have been prepared in accordance with the Corporations Act 2001 and Australian Accounting Standards and Interpretations of the Australian Accounting Standards Board. The company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise.
The financial statements, except for the cash flow information, have been prepared on an accrual basis and are based on historical costs. The amounts presented in the financial statements have been rounded to the nearest dollar.
Accounting Policies
(a) Revenue Revenue recognition
The Entity has applied AASB 15: Revenue from Contracts with Customers and AASB 1058: Income of Not-for- Profit Entities using the cumulative effective method; that is, by recognising the cumulative effect of initially applying AASB 15 and AASB 1058 as an adjustment to the opening balance of equity at 1 January 2019. Therefore, the comparative information has not been restated and continues to be presented under AASB 118: Revenue and AASB 1004: Contributions. The details of accounting policies under AASB 118 and AASB 1004 are disclosed separately since they are different from those under AASB 15 and AASB 1058, and the impact of changes is disclosed in this note.
In the current year
Operating revenue When the entity received operating revenue, it assesses whether the contract is enforceable and has sufficiently specific performance obligations in accordance with AASB 15.
When both these conditions are satisfied, the Entity: – identifies each performance obligation relating to the operation; – recognises a contract liability for its obligations under the agreement; and – recognises revenue as it satisfies its performance obligations. Where the contract is not enforceable or does not have sufficiently specific performance obligations, the Entity: – recognises the asset received in accordance with the recognition requirements of other applicable accounting standards (eg AASB 9. AASB 16, AASB 116 and AASB 138); – recognises related amounts (being contributions by owners, lease liability, financial instruments, provisions, revenue or contract liability arising from a contract with a customer); and – recognises income immediately in profit or loss as the difference between the initial carrying amount of the asset and the related amount.
If a contract liability is recognised as a related amount above, the Entity recognises income in profit or loss when or as it satisfies its obligations under the contract.
Interest income Interest income is recognised using the effective interest method.
All revenue is stated net of the amount of goods and services tax.
In the comparative period
Interest revenue was recognised using the effective interest method, which for floating rate financial assets is the rate inherent in the instrument.
Revenue from the rendering of a service was recognised upon the delivery of the service to the customer.
Page | 28
(b) Fair Value of Assets and Liabilities The entity does not measure any of its assets and liabilities at fair value on either a recurring or non- recurring basis. All assets and liabilities are measured at cost.
(c) Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost as indicated, less, where applicable, 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 losses. In the event the carrying amount of plant and equipment is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment losses are recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(f) for details of impairment).
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance are recognised as expenses in profit or loss in the financial period in which they are incurred.
Plant and equipment that have been contributed at no cost or for nominal cost are recognised at the fair value of the asset at the date it is acquired.
Depreciation The depreciable amount of all fixed assets, including buildings and capitalised lease assets, but excluding freehold land, is depreciated on a straight-line basis 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:
Depreciation Class of Fixed Asset Rate Office equipment 11% - 67%
The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are recognised as income in profit or loss in the period in which they arise. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained surplus.
(d) Leases The Entity as lessee At inception of a contract, the Entity assesses if the contract contains or is a lease. If there is a lease present, a right-of-use asset and a corresponding lease liability is recognised by the Entity where the Entity is a lessee. However, all contracts that are classified as short-term leases (ie a lease with a remaining lease term of 12 months or less) and leases of low-value assets are recognised as an operating expense on a straight- line basis over the term of the lease.
Initially, the lease liability is measured at the present value of the lease payments still to be paid at commencement date. The lease payments are discounted at the interest rate implicit in the lease. If this rate cannot be readily determined, the Entity uses the incremental borrowing rate.
The right-of-use assets comprise the initial measurement of the corresponding lease liability as mentioned above, any lease payments made at or before the commencement date as well as any initial direct costs. The subsequent measurement of the right-of-use assets is at cost less accumulated depreciation and impairment losses.
Page | 29
Right-of-use assets are depreciated over the lease term or useful life of the underlying asset whichever is the shortest. (e) Financial Instruments Initial Recognition and Measurement
Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the entity commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).
Financial instruments (except for trade receivables) are initially measured at fair value plus transaction costs, except where the instrument is classified "at fair value through profit or loss", in which case transaction costs are expensed to profit or loss immediately. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.
Trade receivables are initially measured at the transaction price if the trade receivables do not contain significant financing component or if the practical expedient was applied as specified in AASB 15.63.
(f) Impairment of Assets At the end of each reporting period, the entity reviews the carrying amounts of its tangible 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 of disposal and value in use, is compared to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised in profit or loss.
Where the assets are not held primarily for their ability to generate net cash inflows – that is, they are specialised assets held for continuing use of their service capacity – the recoverable amounts are expected to be materially the same as fair value.
Where it is not possible to estimate the recoverable amount of an individual asset, the entity estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Where an impairment loss on a revalued individual 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.
(g) Employee Provisions Short-term employee provisions Provision is made for the entity’s obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination 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, including wages, salaries, sick leave and annual leave. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled.
Other long-term employee provisions Provision is made for employees’ long service leave and annual leave entitlements not expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service. Other long-term employee benefits are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures, and are discounted at rates determined by reference to market yields at the end of the reporting period on high quality corporate bonds that have maturity dates that approximate the terms of the obligations. Upon the remeasurement of obligations for other long-term employee benefits, the net change in the obligation is recognised in profit or loss as part of employee provisions expense.
The entity’s obligations for long-term employee benefits are presented as non-current employee provisions in its statement of financial position, except where the entity does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which case the obligations are presented as current employee provisions.
(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.
Page | 30
(i) Accounts receivable and other debtors
Accounts receivable and other debtors include amounts due from members as well as amounts receivable from customers for goods sold in the ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets.
Accounts receivable are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Refer to Note 1(f) for further discussion on the determination of impairment losses.
(j) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities, which are recoverable from or payable to the ATO, are presented as operating cash flows included in receipts from customers or payments to suppliers.
(k) Income Tax No provision for income tax has been raised as the entity has carried forward losses from prior years. The entity is unsure if these losses can be recovered in future years.
(l) Provisions Provisions are recognised when the entity has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period.
(m) Comparative Figures Where required by Accounting Standards, comparative figures have been adjusted to conform with changes in presentation for the current financial year.
When the entity retrospectively applies an accounting policy, makes a retrospective restatement or reclassifies items in its financial statements, a third statement of financial position as at the beginning of the preceding period, in addition to the minimum comparative financial statements, must be disclosed.
(n) 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 entity.
Page | 31
Note 2 Revenue and Other Income
2019 2018 Revenue $ $ Other revenue Interest received on investments in fixed interest securities — 9,027 8,539 Total revenue 9,027 8,539
Other income — Other 41,201 - — Membership income 216,408 201,344 — Advertising income 38,537 69,171 — Education income 508,780 462,092 — Event income 781,984 749,089 — Bank fee recovery 8,609 - — Commissions received 19,577 - — Sponsorship 159,975 - Total other income 1,775,071 1,481,696
Total revenue and other income 1,784,098 1,490,235
Note 3 Surplus for the year
2019 2018 $ $ a. Expenses Employee benefits expense: — contributions to defined contribution superannuation funds 45,366 - — Salaries and wages 484,994 464,245 Total employee benefits expense 530,360 464,245
Depreciation and amortisation: — furniture and equipment 5,031 7,125 Total depreciation and amortisation 5,031 7,125
Finance costs: — interest expense on financial liabilities 2,668 - — impairment losses on financial assets - 1,045
Rental expense on operating leases: — short-term lease expense 57,036 48,726 57,036 48,726
Note 4 Cash and Cash Equivalents
2019 2018 $ $ CURRENT Cash at bank 152,373 33,758 Short term deposits 520,900 50,000 Deposits at call 45,526 450,112 Total cash on hand as stated in the statement of financial position and 718,799 533,870 statement of cash flows 718,799 533,870
Page | 32
Note 5 Accounts Receivable and Other Debtors
2019 2018 $ $ CURRENT Accounts receivable 129,977 6,443 GST receivable - 11,392 Total current accounts receivable and other debtors 129,977 17,835
Note 6 Other Current Assets
2019 2018 $ $ Prepayments 11,354 26,653 Deposits 79,926 82,647 91,280 109,300
Note 7 Property, Plant and Equipment
2019 2018 $ $ PLANT AND EQUIPMENT Office Equipment At cost 23,810 33,690 Accumulated depreciation (17,489) (23,648) Total plant and equipment 6,321 10,042
Total property, plant and equipment 6,321 10,042
Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Plant and Equipment Total $ $ 2019 Balance at the beginning of the year 10,042 10,042 Additions at cost 2,042 2,042 Disposals (732) (732) Depreciation expense (5,031) (5,031) Carrying amount at the end of the year 6,321 6,321
Note 8 Right-of-use assets
The Company entered into a lease of office premises in July, 2019 for a period of 5 years. i) AASB 16 related amounts recognised in the balance sheet Right-of-use assets 2019 $ Leased building 157,215 Accumulated depreciation (15,722) Total right-of-use asset 141,493
Page | 33 ii) AASB 16 related amounts recognised in the statement of profit or loss 2019 $ Depreciation charge related to right-of-use assets 15,722 Interest expense on lease liabilities 2,668 Short-term leases expense 57,036
Note 9 Accounts Payable and Other Payables
2019 2018 $ $ CURRENT Accounts payable 61,377 18,414 Deferred income 133,853 7,200 Other current payables - 6,249 GST payable 10,826 - 206,056 31,863
NON-CURRENT Accounts payable - - - -
Note 10 Employee Provisions
2019 2018 CURRENT $ $ Provision for employee benefits: annual leave 21,569 31,919 21,569 31,919 NON-CURRENT Provision for employee benefits: long service leave - - - - 21,569 31,919
Analysis of total provisions: Employee Benefits Total Opening balance at 1 January 2019 31,919 31,919 Amounts used (10,350) (10,350) Balance at 31 December 2019 21,569 21,569
Provision for employee benefits Provision for employee benefits represents amounts accrued for annual leave and long service leave.
The current portion for this provision includes the total amount accrued for annual leave entitlements and the amounts accrued for long service leave entitlements that have vested due to employees having completed the required period of service. Based on past experience, the entity does not expect the full amount of annual leave or long service leave balances classified as current liabilities to be settled within the next 12 months. However, these amounts must be classified as current liabilities since the entity does not have an unconditional right to defer the settlement of these amounts in the event employees wish to use their leave entitlement.
The non-current portion for this provision includes amounts accrued for long service leave entitlements that have not yet vested in relation to those employees who have not yet completed the required period of service.
In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based upon historical data. The measurement and recognition criteria for employee benefits have been discussed in Note 1(h).
Page | 34
Note 11 Lease Liabilities
(a) Operating Lease Commitments 2019 2018 Lease liability at present value $ $ — not later than 12 months 13,054 - — between 12 months and five years 131,107 - 144,161 -
The entity has entered into a lease on the head office for a period of five years, commencing 1 July, 2019. The liability has been calculated as the present value of the lease liability owing as at 31 December, 2019.
Note 12 Contingent Liabilities and Contingent Assets
2019 2018 $ $ There were no contingent assets or liabilities identified by the directors as having to be reported at the date of preparation of this report. - -
Note 13 Events After the Reporting Period
On 16th March, 2020, as a result of the Covid-19 pandemic, the VMA President announced the cancellation of the annual Venue Industry Congress to be held in May, 2020 and the Venue Management School held in November, 2020. The VMA President and Directors also offered the financial members an additional year to their membership. These cancellations and initiatives will have an impact on the expected revenue for the 2021 financial year. However, the Board of Directors believe there is sufficient cash reserves to see the company through the next 12 months.
Note 14 Related Party Transactions
a. Key Management Personnel Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity directly or indirectly, including any director (whether executive or otherwise) is considered key management personnel (KMP).
The totals of remuneration paid to KMP of the entity during the year are as follows: 2019 2018 $ $ KMP compensation: — short-term employee benefits 325,190 325,117 — post-employment benefits 30,893 28,206 356,083 353,323
b. Other Related Parties Other related parties include close family members of KMP and entities that are controlled or jointly controlled by those KMP individually or collectively with their close family members.
Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other persons unless otherwise stated.
Page | 35
Note 15 Cash Flow Information
2019 2018 $ $ a. Reconciliation of Cash Flows from Operating Activities with Net Current Year Surplus
Net current year surplus 108,819 (112,932)
Adjustment for:
Depreciation and amortisation expense 5,031 7,125
Interest on lease liability 2,668 -
Doubtful debts expense - 1,045
Movement in working capital changes: (Increase)/decrease in accounts receivable and other debtors (112,142) 27,665 Increase/(decrease) in accounts payable and other payables 47,540 278
(Increase)/decrease in other current assets 18,020 28,049
Increase/(decrease) in employee provisions (10,350) (8,565)
Increase/(decrease) in income in advance 126,653 (26,709)
186,239 (84,044)
Note 16 Reserves
a. General Reserve The general reserve recognises funds set aside for the future expansion of operations of the Company.
Note 17 Entity Details
The registered office of the entity is: Venue Management Association (Asia and Pacific) Ltd Level 1 110 - 112 George Street BEENLEIGH QLD 4207 The principal place of business is: Venue Management Association (Asia and Pacific) Ltd Level 1 110 - 112 George Street BEENLEIGH QLD 4207
Note 18 Members' Guarantee
The entity is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the entity is wound up, the constitution states that each member is required to contribute a maximum of $50 towards meeting any outstanding obligations of the entity. At 31 December 2019 the number of members was 890.
Page | 36
Directors’ Declaration
In accordance with a resolution of the Directors of Venue Management Association (Asia and Pacific) Ltd, the directors of the Registered Entity declare that, in the directors' opinion:
1. The financial statements and notes, as set out on pages 8 to 19, satisfy the requirements of the Corporations Act 2001 and:
(a) comply with Australian Accounting Standards applicable to the entity; and (b) give a true and fair view of the financial position of the entity as at 31 December 2019 and of its performance for the year ended on that date. 2. There are reasonable grounds to believe that the Entity will be able to pay its debts as and when they become due and payable.
Director
Steve Harper CVE
Dated this 24th day of April 2020
Page | 37
Independent Auditor’s Report
Opinion We have audited the financial report of Venue Management Association (Asia and Pacific) Ltd (the Entity), which comprises the statement of financial position as at 31 December 2019, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended and notes to the financial statements, including a summary of significant accounting policies and the directors' declaration. In our opinion, the accompanying financial report of Venue Management Association (Asia and Pacific) Ltd is in accordance with the Corporations Act 2001, including: i. giving a true and fair view of the entity’s financial position as at 31 December 2019 and of its financial performance for the year then ended; and ii. complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the entity in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110: Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Registered Entity Venue Management Association (Asia and Pacific) Ltd, would be in the same terms if given to the directors as at the time of this auditor’s report. Information Other than the Financial Report and Auditor’s Report Thereon The directors are responsible for the other information. The other information comprises the information included in the entity’s annual report for the year ended 31 December 2019, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report The directors of the entity are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the entity or to cease operations, or have no realistic alternative but to do so.
Page | 38
Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: — Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. — Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. — Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. — Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the entity to cease to continue as a going concern. — Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. — Obtain sufficient appropriate audit evidence regarding the financial information of the entity to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the entity audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Auditor's name and signature: Stephen J Shirley Registered Company Auditor No: 290262
Name of firm: sps audit
Address: Suite 8b, Matlow Place 19 Birtwill Street COOLUM BEACH QLD 4573
Dated this 24th day of April 2020
Page | 39
Honour Roll
Honorary Members
Lyn Hunter (Deceased)
Dexter King CVE
Dick Walsh (Deceased)
Maddie Jackson
Linton Lethlean
Shane Hewitt
Gareth James
John Benett
Rod Pilbeam
Harvey Lister
Past President’s
Maddie Jackson August 1992 – April 1993
Linton Lethlean April 1993 – May 1995
Shane Hewitt May 1995 – October 1996
Gareth James October 1996 – April 1997
John Benett April 1997 – December 1999
Tim Worton CVE January 2000 – May 2003
Rod Pilbeam May 2003 – May 2008
Steve Romer May 2008 – May 2011
Brian Morris CVE May 2011 – May 2014
Trevor Dohnt AVM May 2014 – May 2017
Page | 40
Our Brands
Page | 41