ANNUAL REPORT 2007/08€¦ · Welcome to the RCSA (Recruitment & Consulting Services Association)...

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2007/08A N N U A L R E P O R T

Contents

President’s Report� II

Board of Directors� III

CEO’s Report� IV

Standards� V

Business Partners and Supporters� VI

Finance Report� 1

I

RCSA Annual Report 2007/08

2007/08 Annual Report

Welcome to the RCSA (Recruitment & Consulting Services Association) 2008 Annual Report. You may notice that it’s smaller than its predecessors, as the Association moves towards a simpler, greener approach to reporting.

In 2007 the RCSA made a commitment to focus more on Corporate Social Responsibility. As part of this goal we are reducing our environmental footprint by cutting paper usage, and moving more of our booking processes, reports and even seminars online.

We also want our reports to be shorter so that you can get a good understanding of the Association, its achievements and its performance, in a simple and engaging format. Of course, if you want to know more about the RCSA, simply contact us or visit our website www.rcsa.com.au.

The RCSA (Recruitment and Consulting Services Association Ltd) was formed in May 1997 from the merger of the IPC (Institute of Personnel Consultants Ltd) of Australia, the NAPC (National Association of Personnel Consultants) of Australia, and the NAPC (National Association of Personnel Consultancies Ltd) of New Zealand, and operates as a public company limited by guarantee.

MissionTo represent and service the interests of its Members for the increased profile and professionalism of the industry in Australia and New Zealand.

VisionTo lobby for improvements or alterations in legislation and regulation relating to the workplace and employment generally that affects the interests of the industry.

To foster ethical and procedural standards for the conduct of businesses of the nature of those conducted by Members.

To promote the status of professionals within the industry through the provision of industry qualifications and other skills and training opportunities.

GoalsThe goals are aligned with our core activities.

That the industry be recognised as the expert managers of the flexible workforce.

That the industry be recognised as the talent managers for Australia and New Zealand.

That RCSA Members and their staff be recognised, irrespective of size or specialisation as the most ethical, professional and capable service providers in the industry.

II

President’s Report

Professional development and industry events were at the centre of the RCSA’s program for 2007-2008. Early in my role as President, I declared that I would make professionalism in the recruitment industry my personal crusade. Now, I already feel as though that focus has been adopted by the RCSA and many others in the industry.

The Accredited Professional Recruiter (APR) scheme is now in full swing, and by the end of the financial year there were 866 APRs as well as those in the process of accreditation. The feedback that we have received is that in some cases it is individuals who make the decision to become an APR, while at other times employers are encouraging their consultants. This is a positive sign that it is valued by both parties.

Another important aspect of the program is the broad range of options that allow Members to reach their 25 points’ worth of continuing professional education (CPE). The CPE points system also provides for Corporate Members to run their own accredited programs, so recruiters have plenty of opportunities to keep their skills and knowledge up to date.

Of course, the RCSA’s education is not only for APRs – we are committed to delivering it to individuals right across the industry and at every level. We know that one size doesn’t fit all, which is why the events and courses are tailored to different needs.

This is true in terms of the format – with a choice of online courses, breakfasts, lunches, seminars and workshops. And it is true in terms of content –

for example the E-nduction to Recruitment course is for those new to the industry, the Consultants’ Congresses are for practitioners, and the National Conference was pitched at managers and owners.

For many Members, one of the most valuable aspects of their RCSA Membership is the opportunitiy it provides for networking, sharing ideas and discussing issues. The Keystone Events program provides these opportunities, and in 07-08 we held some very successful forums.

The National Conference in Alice Springs was booked to capacity, and many commented that it was one of the best ever held. The President’s Dinner at Circular Quay in Sydney was a glittering affair, and a platform for launching some important new Awards, including APR of the Year and the CSR Award (to be presented in 2009).

The Symposium was held in Canberra, with Minister for Employment Participation Mr Brendan O’Connor MHR as keynote speaker. It focused on how we will find the workforce of the future and what it may look like – provoking some spirited debated and useful insights.

In November, we also launched a new Keystone Event, the State of the Industry Address, to give Members and external stakeholders an insight into the story

behind the recruitment and on-hire industry, the context in which it functions and some of the trends affecting it now and in the future.

I am pleased to say that the RCSA finished the financial year in a positive position, with a robust and highly respected CPE program, a growing number of APRs, and calendar of events that profile and celebrate the industry.

Stephen Shepherd MRCSA

RCSA President

LOU ADLER - UNITED STATESThe world renowned industry expert, whose best-seller Hire with Your Head started the performance-based recruitment & selection movement, is a veteran recruiter and founder of US company CJA Executive Search. After the 2006 ERE hiring survey revealed that the industry is deteriorating, he recently asked the controversial question, is the transactional recruitment model dead?

MELISSA CLARK-REYNOLDS - NEW ZEALANDA highly successful entrepreneur and self-made millionaire, Melissa founded New Zealand’s largest private accident compensation insurer Fusion. Recognising that set goals can limit as well as expand opportunities turned Melissa into one of New Zealand’s most well-respected and recognised business role models, entrepreneur and mentor for CEOs.

CONFERENCE OVERVIEW

Principal Sponsor

EXTINCT?The Australian and New Zealand recruitment & on-hire sectors are not alone in having the changing world forcing old habits aside, and having new needs brought to the fore. Businesses that bemoan the past face obsolescence when confronted by new, responsive and entrepreneurial players.

DISTINCT!The future is in the hands of those who are not just prepared to follow the crowd, but are willing to explore new territories. Make sure that you are amongst the fi ttest to succeed in tomorrow’s challenging and exciting world — be distinct, not extinct.

Future thinking for recruitment & on-hire leaders

be distinct not extinct

RCSA Conference August 29-31 Alice Springs

FEATURED SPEAKERS

WENDY MCCARTHY AO - AUSTRALIAA persuasive advocate for innovation and the questioning of ‘traditional’ work practices, Wendy McCarthy has a wide-ranging career in traditional professions such as law & education as well as innovative enterprises such as PLAN International. Wendy asks, what traditions and routines are stopping your best and brightest from turning your business into a beacon of success?

JAMES ADONIS - AUSTRALIAManaging a team of one hundred is a challenge for anyone, but James was not only doing just that at age 24, but reduced employee turnover from 70% to zero, beyond industry standard to world’s best practice. He maintained that achievement for two years. Business success needs the engagement of your employees—James will show you how to motivate your team to focus on lasting achievement.

RODERICK MCGEOGH AM - AUSTRALIAWith a remarkable career at the forefront of business, sports administration and the legal profession, Rod McGeoch unites exemplary senior level management experience with an unparalleled commitment to achievement. Perhaps best known as the leader of Sydney’s successful Olympics 2000 bid, he is Chairman or Director of a wide range of major corporations and past Chairman Emeritus of Corrs Chambers Westgarth, one of Australia’s largest law fi rms.

RICHARD NEVILLE - AUSTRALIAEver since his student days in the sixties as the infamous publisher of Oz magazine, the controversial Richard Neville has been a regular headline-grabbing social commentator and business futurist. Co-founder of the Australian Futures Foundation, he now helps business to create tools and techniques for understanding future trends.

III


RCSA Board of Directors

Stephen Shepherd MRCSA

President

Director

Government Positioning

Jan Spriggs MRCSA

Director

Standards

Debra Loveridge MRCSA

Vice President

Director

Research Foundation

Jacqui Barratt MRCSA

Director

Membership and Accreditation

Helen Olivier MRCSA

Vice President

Communications

and Profile

Matthew McArthur MRCSA (Life)

Director

Business Partnerships

Deborah Wilson MRCSA

Director

Finance

Denis Dadds MRCSA

Director

Legislation

Robert van Stokrom MRCSA

Director

Continuing Professional Education

Beryl Rowan MRCSA (Life)

Director

Ethics and Professional Practice

:: Legislation Immigration Working Party OHS & Workers’ Compensation Executive Research Foundation Tax Reform & Superannuation Executive Workplace Relations Executive

:: Standards Consultant Accreditation Panel Corporate Membership Assessment Panel Continuing Professional Education Committee Professional Practice Council Standards Council

:: RCSA Board of Directors

:: RCSA Region Councils

New South Wales & ACT

ACT Sub Region Council

Newcastle Sub Region Council

Wollongong Sub Region Council

New Zealand

Queensland & Northern Territory

South Australia

Victoria & Tasmania

Western Australia

:: RCSA Member Group Councils

Australian Association of Medical

AAMRA

Recruitment Agents

Australian Association of

AANRA

Nursing Recruitment Agencies

:: Accredited Professional Communities

Life Member Community

College of Fellows

IV

CEO’s Report

The RCSA had a very strong year in 2007-2008, as did the broader recruitment and on-hire industry. The skills shortage and strong demand for employees gave recruitment professionals an opportunity to demonstrate to employers how they can deliver quality service and add real value to a business.

The RCSA played a central role in this successful year for the industry by delivering a range of business support services, professional education and government relations. We provided forums for industry participants to come together and discuss issues, we helped recruiters come to grips with emerging technologies and ongoing compliance challenges, and we represented the industry’s views to policy makers at every level.

We were proud to celebrate the RCSA’s 10th anniversary during 2007 and start 2008 in a strong position. We ended the year positively in financial terms and with several important initiatives bedded down, including the Accredited Professional Recruiter (APR) scheme and the Postjobsonce (PJO) technology solution. Both of these are important to the RCSA’s long term performance, with APR increasing our number of individual Members to over 800, and PJO creating an ongoing revenue stream for the Association.

The defining event of the year was the change of Federal Government, and the RCSA was well prepared for this development. Through a number of events such as the ‘Evening with Julia Gillard’ and roundtables with Shadow Ministers, the Association had worked hard to build relationships even before the Labor Party was voted into power.

These efforts were successful in putting RCSA on the radar of key politicians, and meant that the we were consulted on major policy issues, including an invitation by Deputy Prime Minister Julia Gillard to sit on the high-level Business Advisory Group.

Unfortunately, in the last days of the Howard Government, the RCSA was thrown a major challenge with the announcement that on-hire employers would be subject to tough new restrictions in sponsoring 457 visas. This was unexpected, unnecessary and poorly thought-out policy, implemented in a way that didn’t require Parliamentary review.

The RCSA immediately formed a Working Group to fight the changes, and bring some sense to the situation. While we won some concessions, the badly made decision was carried over into the next Government, which seemed unwilling to change a policy on such a sensitive issue as temporary skilled migration.

While we were unable to claim a final victory in this case, the incident demonstrated the RCSA’s ability to swiftly marshal an issues management group to co-ordinate lobbying, media exposure and Member involvement. Nor is the battle over for good – the RCSA has been providing ongoing input to the Government in its various reviews of the 457 visa scheme.

Another big challenge during 07-08 was the rise and rise of new, so-called ‘Web 2.0’ technology. Many members were interested in using it, or being asked by clients to do so, but for most of them it was something of a mystery. The RCSA addressed this by holding a series of technology-focused events and by covering it in the Annual Conference. Postjobsonce Director Craig Schuetrumpf took up the mantle of technology ‘guru’ for the RCSA and managed to demystify the online world for hundreds of Members.

Postjobsonce, the technology solution developed by the RCSA in partnership with Adlogic, was also a popular way for our Members to make the most of technology, and we saw a rapid increase in the number of jobs being posted to print and online media through the service, numbering around 100,000 by June 08.

During the year, the Business Solutions Centre continued to develop its services, with several expert partners providing assistance to Members on critical issues such as industrial relations, OHS, tax rules and good business practice. This service is an important part of the RCSA’s role in helping Members run a profitable business based on sound compliance principles.

Finally, one of the achievements I would like to focus on is the increased profile of the Association and the industry. The RCSA appeared in 284 media articles over the financial year, in outlets ranging from industry publications to careers pages to mainstream press.

At the same time, I was invited to speak at a range of conferences for the mining, engineering and government sectors, to name a few. These groups wanted to hear about how to overcome skills shortages and how the recruitment industry can assist, so I was able to use the forums as a platform for getting the RCSA message out to stakeholders.

Overall, 07-08 saw the RCSA consolidate its position as an important and respected voice in the employment sector, and deliver a range of services to help all our Members succeed in their business.

Julie MillsChief Executive Officer

V


Industry�Qualifications�Program

The following have been accredited as Professional Recruiters from July 1 2007 to June 30 2008:

Adam Lucas, MRCSAAdrian Bevan, MRCSAAdrian Donovan, MRCSAAlban D’Sa, MRCSAAleysha Gregg, MRCSAAlison Duckworth, MRCSAAmanda Tanner, MRCSAAmie Rook, MRCSAAndrew Hope, MRCSAAngelo Lauro, MRCSAAnn Huston, MRCSAAnna Wodrow, MRCSAAnne McFarlane-Read, MRCSAAnne-Maree Culey, MRCSAAnnette Walker, MRCSAAroha Sturdee, MRCSAAshley Nott, MRCSAAthena Iliades, MRCSABelinda Callander, MRCSABetty Maniotas, MRCSABianca Lotts, MRCSABianca McDonald, MRCSABianca Reid, MRCSABob Olivier, MRCSABrad O’Loughlin, MRCSABrett Morris, MRCSABriony Van Den Brink, MRCSABrodi Lamb, MRCSACarmen Velasco, MRCSACaroline Strudwick, MRCSA

Carolyn Betts, MRCSACatherine Andrews, MRCSACatherine Bowler, MRCSACathy Bouvy, MRCSACharlie Duncan, MRCSACharmain Cheand, MRCSAChristine Francis, MRCSAChristopher Haley, MRCSAChristopher Tomlinson, MRCSAClaire Luff, MRCSAClare Williams, MRCSAClaudia Van Leeuwen, MRCSACoco Jamal, MRCSACourtney Smith, MRCSACraig Anderson, MRCSADaniel Mousley, MRCSADavid Brunsdon, MRCSADavid Kench, MRCSADean Morgan, MRCSADebbie Carr, MRCSADebbie Drewsen, MRCSADeborah Brown, MRCSADeborah Macmillan, MRCSADebra Conroy, MRCSADenis Dadds, MRCSADenise Loraine, MRCSADesley Lodwick, MRCSADiane Humphries, MRCSADianne R. Newell, MRCSADilip John, MRCSADita Georgiadis, MRCSADuncan McKenzie, MRCSAEdward De Gabriele, MRCSAElizabeth Tabone, MRCSAEllen Richards, MRCSAEmily Carruthers, MRCSAEmily Ross, MRCSAEmma Hickey, MRCSAEvelyn Mantikas, MRCSA

Fedel Catanzariti, MRCSAFelix Carao, MRCSAFiona Lock, MRCSAFrank Marano, MRCSAFrank Paragalli, MRCSAGary Brown, MRCSAGary Jones, MRCSAGaynor Lowndes, MRCSAGillian Emond, MRCSAGraham Heath, MRCSAGraham Moss, MRCSAGrant Edwards, MRCSAGreg Lee, II, MRCSAHarry Dziewulecki, MRCSAHayley Lokan, MRCSAHayley Rees, MRCSAHelen Alexis, MRCSAHelen Bosworth, MRCSAHelen Stephens, MRCSAIan Bennett, MRCSAImogen Studders, MRCSAJacinta Harding, MRCSAJames Brett, MRCSAJames T. De Berg, MRCSAJan Bryant, MRCSAJane Boyle, MRCSAJeanette Hockney, MRCSAJeanne Van Warmelo, MRCSAJennifer Baxter, MRCSAJennifer Milner, MRCSAJennifer Nutchey, MRCSAJessica Hogan, MRCSAJessica Simpson, MRCSAJila Da Cunha, MRCSAJo Furness, MRCSAJodie Barton, MRCSAJohn Alexandrou, MRCSAJohn Bethell, MRCSAJohn Cooper, MRCSA

Josie Cheqrouni, MRCSAJoy Malam, MRCSAJudy Hilton, MRCSAJuli Halton, MRCSAJulian Strudwick, MRCSAJulie Arslanoski, MRCSAJulie Ashpool, MRCSAJulie Grasso, MRCSAKaren Jizba, MRCSAKaren Prevost, MRCSAKathleen Flanagan, MRCSAKaylene Mallinson, MRCSAKerrie Schoots, MRCSAKerrie Thomson, MRCSAKerry O’Connor, MRCSAKim Axworthy, MRCSAKim Daly, MRCSAKim Estell, MRCSAKristy Tomlinson, MRCSAKylie Bayliss, MRCSAKylie Francis, MRCSAKylie Pell, MRCSAKylie Stewart Bonafini, MRCSAKym Eveleigh, MRCSALaura Mabikafola, MRCSALauren Campbell, MRCSALauren Chwyla, MRCSALaurie Clark, MRCSALeanne Leeson, MRCSALee Merrow, MRCSALennica Watkins, MRCSALesley Papuni, MRCSALetisha Ehrlich, MRCSALiana Gorman, MRCSALilly Devi, MRCSALily Dewse, MRCSALina Cornell, MRCSALindsey Morgan, MRCSALio Hunt, MRCSA

RCSA�MembershipAs at 30 June 2008

Corporate�Members

Members Locations

CORP (AUS) 902 2,196NZC (NZ) 111 253

Affiliates

Companies Locations

Affiliate (AUS) 108 173NZ Affiliate (NZ) 9 13

Accredited�Professionals

APR (AUS) 739NZAPR (NZ) 127

Standards

RCSA�Standards�Code�for�Professional�Practice

There were no sanctions issued by the Board for breaches of the Code for Professional Practice between 1st July 2007 and 30th June 2008.

Service�Delivery�Standard

The list of RCSA Members who have achieved the Service Delivery Standard from 1 July 2007 to 30th June 2008 are:

• Australian Nursing Network (North Sydney)

• Avant Personnel (Darwin)

• Consultive (South Melbourne)

• Heartbeat Nursing Agency (Parramatta)

• Heather Hill Nursing Agency (Brisbane)

• Manpower Business Solutions (Sydney)

• Manpower Services (New Zealand)

• Medic Oncall (Frankston)

• Ryan Recruitment (Christchurch)

• Zenith Information Management Services (Chatswood)

The�Student�of�the�Year�

The Student of the Year for 2007/2008 was Anne Ferguson of Recruitments Ltd Dunedin.

VI

RCSA Business Partners and Supporters

Lisa Carter, MRCSALisa Kriss, MRCSALouise Rumian, MRCSALucinda Nicholas, MRCSALucy Porter-Simmons, MRCSAMagda De Berg, MRCSAMargaret Van Heurck, MRCSAMarguerite Lockyer, MRCSAMark Biggs, MRCSAMarnie Horton, MRCSAMatthew Durham, MRCSAMattie Fares, MRCSAMeagan Walton, MRCSAMeaghan Gleeson, MRCSAMelanie Kentwell, MRCSAMelissa Bennett, MRCSAMelissa Burt, MRCSAMichael Carter, MRCSAMichael Queally, MRCSAMichael Smith, MRCSAMichelle Aldridge, MRCSAMichelle Schoots, MRCSAMick Soldatovic, MRCSAMikaela Stowers, MRCSAMrs Karen Shepherd, MRCSANadine Archer, MRCSANancy Martin, MRCSANeil Russell, MRCSANick Maroudas, MRCSANicole Locking, MRCSANicole Strong, MRCSANicole Trevenar, MRCSANorah Dixon, MRCSANorm Geist, MRCSA

Norman Graeve, MRCSANunzia Confessore, MRCSAOliver Brown, MRCSAPaul De Vroome, MRCSAPaul Price, MRCSAPaul Wells, MRCSAPaula Fidge, MRCSAPeggy Strudwick-Brown, MRCSAPernille Cavanough, MRCSAPeter Davis, MRCSAPeter Kemp, MRCSAPeter Langford, MRCSAPeter Mazzucato, MRCSAPeter Remfrey, MRCSAPhil Isard, MRCSAPiers Hayward, MRCSAQuerida Brown, MRCSARobert Bromage, MRCSARobert Haviland, MRCSARoss Hollands, MRCSARoxayne West, MRCSARoz Shaw, MRCSASally Higham, MRCSASam Lawson, MRCSASamantha Cowan, MRCSASarah Bruitzman, MRCSASarah Edmonds, MRCSASarah Hall, MRCSASarah Lourie, MRCSASarah Magill, MRCSASarah Thornton-Jones, MRCSASasha Shearn, MRCSAScott Van Heurck, MRCSASharon Gadsby, MRCSA

Sharyl Walsh, MRCSASheridan Power, MRCSAShirley Cowcher, MRCSASimon Bennett, MRCSASimone Drage, MRCSASon Truong Le, MRCSAStephen Grace, MRCSAStephen Moir, MRCSAStephen Porter, MRCSASteven Gibbs, MRCSASula Whitmore, MRCSASumma Matzen, MRCSASuzanne Szeles, MRCSATanya Currie, MRCSATerry Snell, MRCSAThomas Stretton, MRCSATracy McClenaghan, MRCSATracy Morgan, MRCSAVirginia Bacon, MRCSAWayne Farrell, MRCSAWayne Pethybridge, MRCSAYulius Santoso, MRCSAZelda Delgado, MRCSAZona McManus, MRCSA

New�ZealandAlex McLeod, MRCSAAman Dhaliwal, MRCSA Andrew McCormack, MRCSA Arran Finlayson, MRCSA Ben Crossen, MRCSA Bridget Robertson, MRCSA Catherine Stace, MRCSA David Quintela, MRCSA Eleanor Rushbrooke, MRCSA

Emily McConnell, MRCSA Fabiana Amore, MRCSA Ian McPherson, MRCSA Jason Casey, MRCSA Jason Holmes, MRCSA Jessica Wood, MRCSA John Harland, MRCSA John Tait, MRCSA Johnny Robinson, MRCSA Karen Newitt, MRCSA Kate Simpson, MRCSA Kristel Van Der Merwe, MRCSA Liam Mulrooney, MRCSA Liam Walsh, MRCSA Linda Smith, MRCSA Lucy Williams, MRCSA Mathew Smith, MRCSA Megan Scaia, MRCSA Melissa Alfonso-Cruz, MRCSA Melissa Chapman, MRCSA Mia Ryan, MRCSA Michael Whitworth, MRCSA Phillip Van Syp, MRCSA Poonam Patel, MRCSA Raj Swamy Robert Walker-Brash, MRCSA Rosemary Stead, MRCSA Ruth Durno, MRCSA Shorlene Chand, MRCSA Stacey Roberts, MRCSA Tom Greig, MRCSA Vladislav Purgaric, MRCSA Wanni Mo, MRCSA Warren Mah, MRCSA

RCSA�Principal�PartnerRecruitmentSuperRecruitmentSuper is the industry super fund in Australia established by and dedicated to this industry, managing over $800 million in assets for over 400,000 Members. RecruitmentSuper is a Public Offer fund so employees do not have to be in the sector to belong to it. RecruitmentSuper operates only for the benefit of Members and their dependants so profits are returned to our Members who also receive special tax treatment for retirement savings. A Board of Trustee Directors (of Professional Associations Superannuation Limited) comprising equal numbers of employee and employer representatives, manages the fund.

In June, 2007 (when the NZ Government introduced the Kiwisaver scheme) RecruitmentSuper launched in NZ under the brand name of EOSAVER (eoSaver).

RCSA�Business�Partners

Bank�of�Queensland

OAMPS�Insurance�Brokers

RCSA�Event�SupportersadlogicCareerOne.com.aujobXmy career.com.auSEEK.com.auSEEK.co.nzThe Canberra TimesThe Adelaide AdvertiserThe Herald SunThe West Australian

RCSA�Programs�for�MembersBusiness Solutions CentreCentre for Recruitment ExcellenceMemberBenefits postjobsonce

Industry�Qualifications�Program (Continued)

1


Financial Report

Directors’ Report� 2�

Auditor’s Independence Declaration� 5

Income Statement� 6

Balance Sheet� 7

Statement of Changes in Equity� 8

Cash Flow Statement� 8

Notes to and Forming Part of the Financial Statements� 9

Directors’ Declaration� 22

Independent Audit Report� 23

2

Your directors present their report on the company for the year ended 30th June 2008

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

Directors were in office for the entire period unless stated.

S Shepherd MRCSA D Loveridge MRCSA

M McArthur MRCSA (appointed 26/7/07) H Olivier MRCSA

B Rowan MRCSA C.Schuetrumpf (appointed 29/05/08 non voting)

D Wilson MRCSA J Spriggs MRCSA

R van Stokrom MRCSA (appointed 26/7/07) J Barratt MRCSA

S Schauble (resigned 3/4/08) D Dadds MRCSA

PRINCIPAL�ACTIVITIESThe principal activities of the company during the financial year were to represent Members and to advance the interests of Members.

OPERATING�RESULTSThe net Profit of the company after providing for income tax amounted to $7,475.

DIVIDENDS�PAID�OR�RECOMMENDEDNo dividends were paid during the year and no recommendation is made as to dividends, as the company is not permitted to pay dividends under its Constitution.

REVIEW�OF�OPERATIONSThe Recruitment & Consulting Services Association Limited (RCSA) was incorporated in May 1997. The operations and state of affairs of the company reflect the outcome of the various activities of the company for the year ending 30th June 2008.

The continued focus of activities for the past year has been to consolidate the company across all Regions to reflect a much stronger profile and lobbying body and to ensure that the committee and governance structures are representative and proactive on behalf of the Membership.

The company has given particular attention to achieving recognition of its Accredited Professional Program, promoting its Constitution and ByLaws and Code for Professional Practice and to developing industry best practices in areas of Occupational Health and Safety, Privacy Compliance and Workplace Relations.

The company’s resources have been particularly focused on ensuring the industry’s involvement in legislative reviews, inquiries and in educating the industry and the wider marketplace with respect to legislative reforms and other employment initiatives, as well as raising the professionalism and business standards of companies and individuals. There has been particular atention paid to the skills shortage and the management of a candidate tight market.

SIGNIFICANT�CHANGES�IN�STATE�OF�AFFAIRSNo significant change in the state of affairs of the company occurred during the financial year.

AFTER�BALANCE�DATE�EVENTSNo matters or circumstances have arisen since the end of the financial year that significantly affected or may significantly affect the operations of the company, the results of those operations, or the state of affairs of the company in subsequent financial years.

FUTURE�DEVELOPMENTS�Likely developments in the operations of the company 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 company.

ENVIRONMENTALThe company’s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a State or Territory.

Directors’ ReportRECRUITMENT�AND�CONSULTING�SERVICES�ASSOCIATION�LIMITEDABN�41�078�606�416

3

Recruitment&ConsultingServicesAssociationLtdABN41078606416

INFORMATION�ON�DIRECTORS

Director: Stephen Shepherd MRCSA Director: Matthew McArthur MRCSA (Life)

Age: 43 Age: 44

Qualifications: Qualifications:

Experience: 18 years in the recruitment industry 13 years senior management experience

Experience: 25 years in the recruitment industry

Special�Responsibilities

RCSA Board President Director, Government Positioning,


Director Business Partnerships

Chair�Executive�Committee

Special Responsibilities

Director: Debra Loveridge MRCSA Director: Robert van Stokrom MRCSA

Age: 47 Age: 54

Qualifications: Qualifications: Dip. Business, Grad Dip Logistics

Experience: 20 years in the recruitment industry Experience: 23 years pharmaceutical, 10 years recruitment


RCSA Vice President Director Research Foundation Member Executive Committee


Director Continuing Professional Education

Director: Helen Olivier MRCSA Director: Beryl Rowan MRCSA

Age: 49 Age: 61

Qualifications: Qualifications: Qualifications: HND (Business) Northampton

Experience: 30 years recruitment industry experience; 5 years for the Employment Services Division UK

Experience: 28 years experience in recruitment industry


RCSA Vice President, member Executive,Director Communications


Director WPR Executive, Director Professional Practice

Director: Deborah Wilson MRCSA Director: Jan Spriggs MRCSA

Age: 46 Age: 53

Qualifications: Company Director Qualifications: Diploma in HR

Experience: 22 years experience in recruitment industry Experience: 23 years in recruitment industry


Director Finance, Member Executive Committee Special�Responsibilities

Director Standards Council

Director: Craig Schuetrumpf Director: Jacqui Barratt MRCSA

Age: 41 Age: 37

Qualifications: Qualifications:

Experience: 20 years in Technology Experience: 15 years in Industry


Non voting Business Strategy Director Special�Responsibilities

Director Membership, Director Accredited Professional program

Director: Simon Schauble Director: Denis Dadds

Age: 35 Age: 58

Qualifications: Qualifications: B. Commerce

Experience: 10 years in the industry Experience: 30 years in OHS/HR


Director Marketing and Profile Special�Responsibilities

OHS & WC Chair

4

DIRECTORS�AND�EXECUTIVE�OFFICER�REMUNERATIONDirectorsThe Directors of the company 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�DIRECTORSDuring the financial year, seven meetings of Directors, 12 meetings of Executive Committee and 12 meetings of the Finance Committee were held.

Attendees were:

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

S Shepherd 7 7 10 10

D Loveridge 7 7 10 7

H Olivier 7 7 10 9

D Wilson 7 6 10 5

B Rowan 7 7 - -

Matthew McArthur 7 5

Robert van Stokrom 7 5

J Spriggs 7 5 - -

J Barratt 7 6 - -

D Dadds 7 7 - -

S Schauble 5 3 – (resigned 03/04/08)

INDEMNIFYING�OFFICERSDuring or since the end of the financial year the company has given an indemnity or entered an agreement to indemnify, or paid or agreed to pay insurance premiums as follows:

The company has paid premiums 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 company, other than conduct involving wilful breach of duty in relation to the company. The amount of premium paid was $3,751.

AUDITOR’S�INDEPENDENCE�DECLARATIONThe lead auditor’s independence declaration for the year for the year ended 30 June 2008 has been received and can be found on pages 6 of the Directors’ report.

PROCEEDINGS�ON�BEHALF�OF�THE�COMPANYNo person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or part of those proceedings.

The company was not a party to any such proceedings during the year.

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

Stephen Shepherd MRSCA Deborah Wilson MRCSA

Director Director

Dated this 9 day of October 2008

Melbourne, Australia.

Directors’ Report – continued

5


Auditor’s Independence Declaration

6

Income StatementFORTHEYEARENDED30JUNE2008

� Note� 30�June�2008� 30�June�2007� � $� $Revenue 2 5,320,597 4,352,436

Salaries and employee benefits expense (1,571,509) (1,677,102)

Depreciation expense 3 (48,544) (59,745)

Education expenses (1,642,237) (783,006)

Meeting and function expenses (54,454) (37,392)

Publications expenses (125,023) (129,136)

Conference expenses (347,948) (518,752)

Membership expenses (106,794) (49,493)

Computer expenses (112,401) (88,700)

Office and administration expenses (492,196) (260,466)

Advertising expenses (415,880) (366,655)

Other expenses 3 (396,136) (356,864)

Profit before income tax expense 7,475 25,125

Income tax expense 4 – –

Net profit/(loss) attributable to the members 7,475 25,125

The accompanying notes form part of these financial statements.

7


Balance SheetASAT30JUNE2008

� Note� 30�June�2008� 30�June�2007� � $� $Current�AssetsCash and cash equivalents 6 976,403 615,998

Trade and Other Receivables 7 681,089 544,973

Other Current Assets 8 213,594 196,623

� 1,871,086 1,357,594

Non-current�AssetsProperty, plant and equipment 9 61,791 76,780

Total�Non-current�Assets 61,791 76,780

Total�Assets 1,932,877 1,434,374

Current�LiabilitiesTrade and Other Payables 10 259,568 235,522

Employee benefits 11 165,691 130,257

Deferred income 12 761,471 332,303

Total Current Liabilities 1,186,730 698,082

Non�Current�LiabilitiesEmployee benefits 11 26,423 24,043

Total�Non�Current�Liabilities 26,423 24,043

Total�Liabilities 1,213,153 722,125

Net�Assets 719,724 712,249

Members’�FundsRetained profits 719,724 712,249

Total�Equity 719,724 712,249


8

Statement of Changes in EquityASAT30JUNE2008

Cash Flow StatementFORTHEYEARENDED30JUNE2008

� Note� $Total Members Funds at 1 July 2006 687,124

Profit / (Loss) for the year 25,125

Total equity at 30 June 2007 712,249

Total Members Funds at 1 July 2007 712,249

Profit / (Loss) for the year 7,475

Total equity at 30 June 2008 719,724


� Note� 30�June�2008� 30�June�2007� � $� $Cash�Flows�from�Operating�ActivitiesReceipts from customers 6,086,569 4,576,853

Payment to suppliers and employees (5,762,258) (4,985,207)

Interest received 69,648 57,920

Net�Cash�Flows�provided�by/(used�in)�Operating�Activities� 19(b) 393,959 (350,434)

Cash�Flows�from�Investing�ActivitiesPayment for plant and equipment (33,554) (35,219)

Net�Cash�Flows�provided�by/(used�in)�Investing�Activities (33,554) (35,219)

Cash flows from Financing Activities

Repayments of HP Liabilities – (11,689)

– (11,689)

Net�increase/(decrease)�in�cash�held 360,405 (397,342)

Cash at beginning of year 615,998 1,013,340

Cash�at�end�of�year� 19(a) 976,403 615,998


9


NOTE�1.�STATEMENT�OF�SIGNIFICANT�ACCOUNTING�POLICIESCorporate�InformationThe financial report is a general purpose financial report that has been prepared in accordance with Accounting Standards, Urgent Issues Group Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

The financial report covers the Company of Recruitment and Consulting Services Association Limited. The company is a company limited by guarantee.

The financial report of Recruitment and Consulting Services Association Limited was authorised for issue by the directors on October 9, 2008

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

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

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

(a)��Compliance�with�IFRSThe financial report complies with all Australian Accounting Standards and International Financial Reporting Standards (IFRS).

(b)��New�Accounting�Standards�and�Interpretations

Adoption of new accounting standardsAASB 7 Financial Instruments: Disclosures is mandatory for reporting periods beginning on or after 1 January 2007. The new Standard replaces and amends disclosure requirements previously set out in AASB 132 Financial Instruments: Presentation and Disclosures.

(c)��Critical�accounting�estimates�and�judgementsThe preparation of a financial report in conformity with Australian Accounting Standards requires management to make estimates, judgements and assumptions based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Company. Actual results may differ from these estimates.

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

(d)��Plant�&�EquipmentEach class of property, plant and equipment is carried at cost, where applicable, any accumulated depreciation and impairment losses.

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

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

The depreciation rates used for each class of depreciable assets are: Class�of�fixed�asset� Depreciation�Rate Office Furniture and Equipment 20 - 33% Computer Software 20 - 33% Computer Equipment 20 - 33%

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

Notes to and Forming Part of the Financial StatementsFORTHEYEARENDED30JUNE2008

10

(e)��Employee�BenefitsWages, Salaries and Annual Leave

Liabilities for wages, salaries and annual leave that are expected to be settled within 12 months of the reporting date represent present obligations resulting from employees’ services provided to reporting date. They are calculated at undiscounted amounts based on remuneration wage and salary rates that the Company expects to pay as at reporting date including related on-costs, such as workers compensation insurance and payroll tax.

Long-term service benefits

The Company’s net obligation in respect of long-term service benefits, other than pension plans, is the amount of future benefit that employees have earned in return for their service in current and prior periods. The obligation is calculated using expected future increases in wage and salary rates including related on-costs and expected settlement dates, and is discounted using the rates attached to the Commonwealth Governments bonds at the balance sheet date which have maturity dates approximating the to terms of the Company’s obligations.

Superannuation

The amount charged to the Income Statement in respect of superannuation represents the contributions made by the Company to superannuation funds.

(f)��Revenue�Revenue is recognised to the extent that it is probable that the economic benefits will flow to Recruitment and Consulting Services Association Limited and the revenue can be reliably measured.

Revenue from the rendering of a service is recognised upon the provision of the service to members. Where the period of service delivery extends beyond year’s end, a share of the revenue is recognised as deferred income. Revenue from APR services is no longer treated as membership and is now recognised on issue of invoice since the majority of service has been provided at this point. The impact of this change has been to recognise additional income of approximately $12,000 in this financial year.

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

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

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

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

(g)��Income�TaxIn assessing its income tax liability the company applies the principles of mutuality to its revenues and expenses. Revenue in the form of member receipts represents mutual income and is not subject to income tax. Expenses associated with such mutual activities are not tax deductible for income tax purposes. All other receipts and payments of the company are classified for income tax purposes in accordance with income tax legislation.

Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred income tax liabilities are recognised for all taxable temporary differences.

Deferred tax assets are recognised for all deductible temporary differences, carry-forward of unused assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry-forward of unused tax assets and unused tax losses, can be utilised.

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.

Income taxes relating to items recognised directly in equity are recognised in equity and not in the income statement.

Notes to and Forming Part of the Financial Statements – continuedFORTHEYEARENDED30JUNE2008

11


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

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

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

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

(j)��LeasesOperating leases

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

Hire Purchase Liabilities

Hire purchase arrangements which effectively transfer substantially all of the risks and benefits incidental to ownership of the leased item have been brought to account at the present value of the minimum lease payments and disclosed as plant and equipment. A hire purchase liability of equal value has also been recognised. Hire purchase payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

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

(l)��Impairment�of�AssetsAt each reporting date, the economic 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. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

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

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

12


(m)��Financial�AssetsFinancial assets are divided into the following categories as detailed below:

loans and receivables;

financial assets at fair value through profit or loss;

available-for-sale financial assets; and

held-to-maturity investments.

Financial assets are assigned to the different categories on initial recognition, depending on the characteristics of the instrument and its purpose. A financial instrument’s category is relevant to the way it is measured and whether any resulting income and expenses are recognised in profit or loss or directly in equity.

Generally, Recruitment and Consulting Services Association recognises all financial assets using settlement day accounting. An assessment of whether a financial asset is impaired is made at least at each reporting date.

All income and expenses relating to financial assets are recognised in the income statement line item finance income or finance costs, respectively.

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

After initial recognition these are measured at amortised cost using the effective interest method, less provision for impairment. Any change in their value is recognised in profit or loss.

Recruitment and Consulting Services Association’s trade and most other receivables fall into this category of financial instruments.

Discounting is omitted where the effect of discounting is considered immaterial.

Receivables are considered for impairment on a case-by-case basis when they are past due at the balance sheet date or when objective evidence is received that a specific counterparty will default.

The amount of the impairment is the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable.

For trade receivables, impairment provisions are recorded in a separate allowance account with the loss being recognised within administrative expenses in the income statement. When confirmation has been received that the amount is not collectable, the gross carrying value of the asset is written off against the associated impairment provision.

Subsequent recoveries of amounts previously written off are credited against other expenses in the income statement.

In some circumstances, the Group renegotiates repayment terms with customers which may lead to changes in the timing of the payments; the Group does not necessarily consider the balance to be impaired, however assessment is made on a case-by-case basis.

RCSA has determined that there are no other financial assets that would be divided into the remaining financial assets categories.

13


(n)��Trade�and�Other�PayablesTrade payables and other payables are carried at amortised cost and represent liabilities for goods and services provided to the company prior to the end of the financial year that are unpaid and arise when the company becomes obliged to make future payments in respect of the purchase of these goods and services.

(o)��New�accounting�standards�and�interpretationsCertain new accounting standards and accounting interpretations have been published that are not mandatory for 30 June 2008 reporting periods. The company’s assessment of the impact of these new standards and interpretations is set out below.

(i) Revised AASB 101 Presentation of Financial Statements and AASB 2007-8 Amendments to Australian Accounting Standards arising from AASB 101.

A revised AASB 101 was issued in September 2007 and is applicable for annual reporting periods beginning on or after 1 January 2009. It requires the presentation of a statement of comprehensive income and makes changes to the statement of changes in equity, but will not affect any of the amounts recognised in the financial statements. If an entity has made a prior period adjustment or has reclassified items in the financial statements, it will need to disclose a third balance sheet (statement of financial position), this one being as at the beginning of the comparative period. The company intends to apply the revised standard from 1 July 2009.

According to management assessment, all other changes to the accounting standards are not likely to have a material impact on the company’s financial statements or note disclosures.

14

Note� 30�June�2008� 30�June�2007� � $� $Note�2:�RevenueRevenue from operating activities - membership subscriptions 1,582,186 1,304,548

- education, workshops and functions 1,548,595 1,014,100

- sponsors 651,290 787,414

- government funding 547,717 213,938

- publications 321,204 272,046

- conferences 525,568 640,747

5,176,560 4,232,793

Revenue from non operating activities

- interest received 69,948 57,920

- other revenue - other persons 74,089 61,723

144,037 119,643

Total revenue 5,320,597 4,352,436

Note 3: Profit

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

Depreciation & amortisation

- plant and equipment 48,544 59,745

Rental expense on operating leases

- occupancy lease payments 149,717 96,283

- minimum lease repayments on computer equipment 0 8,081

Industrial Relations - Other 174,634 147,448

Note�4:�Taxation�

Deferred�Tax�AssetThere is an unrecognised deferred tax asset at the balance sheet date of $90,208 that relates to unutilised estimated tax losses. At the balance sheet date management is not able to reliably assess the probability that these losses will be utilised against future taxable income, and has therefore not recognised the associated deferred tax asset.


15


� Note� 30�June�2008� 30�June�2007� � $� $Note�5:�Auditor’s�RemunerationRemuneration of the auditors of the company for:

- auditing or reviewing the financial report 29,500 27,500

- taxation services 11,096 11,450

40,596 38,950

Note�6:�Cash�and�cash�equivalentsCash on hand 880 881

Cash at bank 629,609 319,598

Cash on deposit - other 345,914 295,519

19(a) 976,403 615,998

Note�7:�Receivables�CurrentTrade receivables 655,178 547,329

Provision for impairment of receivables (17,102) (17,118)

638,076 530,211

Other receivables 43,013 14,762

681,089 544,973

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

The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable in the financial statements. The company does not hold any collateral as security over any receivable balance, nor does it hold any restrictions of title.

Refer to Note 21 for more information on the risk management policy of the company.

The average credit period on sales of goods is 28 days. No interest is charged on the trade receivables from the date of the invoice.

(a) Impaired receivables

All of RCSA’s trade and other receivables have been reviewed for indicators of impairment. Certain trade receivables were found to be impaired and a provision of $17,102 (2007: $17,118) has been recorded accordingly.

In addition, the company has provided fully for all receivables greater than 6 months overdue since historical experience has shown that receivables overdue for this period of time are generally not recoverable.

16

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

Note�7:�Receivables�(continued)� Note� 30�June�2008� 30�June�2007Opening balance at 1 July (17,118) (16,921)

Provision for impairment recognised in the year – (197)

Receivables written off as uncollectable – –

Unused amount reversed 16 –

Closing balance at 30 June (17,102) (17,118)

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

At 30 June, the aging analysis of trade receivables is as follows:

30�June�2008� 30�June�2007� $� $� $� $ Receivable Impairment Receivable Impairment

0 - 30 days 521,612 473,882

31 - 60 days 87,226 18,291

61 - 90 days 24,466 20,795

+ 91 days 47,785 (17,102) 32,005 (17,118)

TOTAL 681,089 (17,102) 544,973 (17,118)

Note�8:�Other�AssetsCurrentPrepayments 213,594 196,623

Note�9:�Plant�and�EquipmentFurniture & fittings

At cost 216,107 202,410

Accumulated depreciation (176,192) (144,881)

39,915 57,529

Computer equipment & software

At cost 255,055 235,197

Accumulated depreciation (233,179) (215,946)

21,876 19,251

Total plant and equipment 61,791 76,780


17


� Note� 30�June�2008� 30�June�2007� � $� $Note�9:�Plant�and�Equipment�(Continued)�Movements in carrying amounts Furniture�� Computer�Equipment� Total�� &�Fittings� �&�SoftwareCarrying amount at 1 July 57,529 19,251 76,780

Additions 13,696 19,858 33,554

Depreciation expense (31,311) (17,233) (48,544)

Carrying amount at 30 June 39,914 21,876 61,790

� Note� 30�June�2008� 30�June�2007� � $� $Note�10:�PayablesCurrentTrade creditors 195,861 142,717

Sundry creditors & accruals 63,707 92,805

259,568 235,522

Note�11:�Employee�BenefitsCurrentAccrued employee wages and on costs –

Employee Benefits 165,691 130,257

165,691 130,257

Non-CurrentEmployee Benefits 26,423 24,043

26,423 24,043

Note� 30�June�2008� 30�June�2007� � $� $Note�12:�Deferred�IncomeCurrent

Subscriptions received in advance 720,789 198,660

Conference income received in advance – 125,293

Other income received in advance 40,682 8,350

761,471 332,303

18

Note�13:�Members’�GuaranteeThe company is limited by guarantee. If the company 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 company. At 30 June 2008 the number of members was 3326.

Note�14:�Expenditure�Commitments Lease expenditure commitments

Operating leases (non-cancellable)

Minimum lease payments

- not later than one year 74,129 134,668

- later than one year and not later than five years 218,297 269,461

Aggregate lease expenditure contracted for at balance date 292,426 404,129

Note�15:�ContingenciesThe entity has provided an indemnity guarantee in respect of a bank guarantee in favour of the property owner on the entitiy’s leased premises.

74,736 74,736

Note�16:�Events�Subsequent�to�Balance�DateThere are no known events subsequent to balance date that warrant disclosure.

Note�17:�Related�Party�TransactionsKey Management Personnel Related Entities

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

The directors of the Recruitment and Consulting Services Association Limited during the financial year were:

S Shepherd MRCSA D Loveridge MRCSA

M McArthur MRCSA (appointed 26/7/07) H Olivier MRCSA

B Rowan MRCSA (Life) C Schuetrumpf (appointed 29/5/08 - non voting)

D Wilson MRCSA J Spriggs MRCSA

R van Stokrom MRCSA (appointed 26/7/07) J Barratt MRCSA (Appointed 03/01/06)

S Schauble (resigned 3/4/08) D Dadds (appointed 23/11/06)

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

Note�18:�Key�Management�PersonnelTransactions with key management personnel:

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

� Note� 30�June�2008� 30�June�2007� � $� $Short-term employee benefits 209,594 212,924

Other long term benefits 4,998 9,751

Post-employment benefits 8,525 17,826

Termination benefits – –

223,117 240,501


19


Note�19:�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:

� Note� 30�June�2008� 30�June�2007� � $� $Cash on hand 880 881

Cash at bank 629,608 319,598

Cash on deposit 345,915 295,519

6 976,403 615,998

(b)��Reconciliation�of�net�profit�after�tax�to�net�cash�flows�from�operationsProfit/(loss) after related income tax expense 7,475 25,125

Non cash items: - Depreciation of non current assets 48,544 59,745

Changes in assets and liabilities: (Increase)/decrease in receivables (136,116) (116,242)

(Increase)/decrease in other current assets (142,264) (98,275)

Increase/(decrease) in payables 24,250 (255,093)

Increase/(decrease) in provisions 37,811 52,990

Increase/(decrease) in other current liabilities 554,460 (18,684)

Net cash flow from operations 394,160 (350,434)

Note�20:�Company�DetailsThe registered office of the company is:

Level 3

63 Exhibition Street

Melbourne

Victoria 3000

20


Note�21:�Financial�Instrument�Risk�ManagementThe company is exposed to a variety of financial risks through its use of financial instruments.

This note discloses the company’s objectives, policies and processes for managing and measuring these risks.

The company’s overall risk management plan seeks to minimise potential adverse effects due to the unpredictability of financial markets.

The financial risks to which the company is exposed to are described below:

Specific�risks Market risk - cash flow interest rate risk Credit risk Liquidity risk

Financial�instruments�usedThe principal categories of financial instrument used by RCSA are: Trade receivables Cash at bank Trade and other payables

Objectives,�policies�and�processesRisk management is carried out by the company’s finance function under policies and objectives which have been approved by the Board of Directors. The Chief Financial Officer has been delegated the authority for designing and implementing processes which follow the objectives and policies.

The Board receives monthly reports which provide details of the effectiveness of the processes and policies in place.

Specific information regarding the mitigation of each financial risk to which RCSA is exposed is provided below.

(a) Market Risk

(i) Cash flow interest rate sensitivity

The company is exposed to interest rate risk as a result of fluctuations in the market interest rates.

The following table illustrates the sensitivity of the net result for the year and equity to a reasonably possible change in interest rates of + 1% and - 1% (2007: +/-1%), with effect from the beginning of the year. These changes are considered to be reasonably possible based on observation of current market conditions.

The calculations are based on RCSA’s financial instruments held at each balance sheet date. All other variables are held constant.

� 2008($)� 2007($)� +1%� -1%� +1%� -1%Cash�and�cash�equivalentsChange in profit 9,755 (9,755) 6,151 (6,151)

Equity 9,755 (9,755) 6,151 (6,151)

21


Note�23:�Financial�Instrument�Risk�Management�(continued)(b) Credit Risk Analysis

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the company.

Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions, as well as credit exposure to wholesale and retail members, including outstanding receivables and committed transactions.

The company derives most of its revenue from members and sponsors for events. Credit risk is managed by invoicing annual subscriptions in advance and declining member benefits if members default or do not renew membership.

RCSA’s exposure to credit risk is limited to the carrying amount of financial assets recognised at the balance sheet date.

RCSA’s management considers that all the financial assets that are not impaired for each of the reporting dates under review are of good credit quality, including those that are past due. See note 7 for further information on impairment or financial assets that are past due.

None of RCSA’s financial assets are secured by collateral or other credit enhancements.

The credit risk for liquid funds and other short-term financial assets is considered negligible, since the counterparties are reputable banks with high quality external credit ratings.

(c) Liquidity Risk Analysis

Liquidity risk is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due.

The company’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. RCSA maintains cash and marketable securities to meet its liquidity requirements for up to 30-day periods. Funding for long-term liquidity needs is additionally secured by an adequate amount of committed credit facilities and the ability to sell long-term financial assets.

RCSA manages its liquidity needs by carefully monitoring cash flows and actual perfomance against budgets.

At the balance sheet date, these reports indicate that the company expected to have sufficient liquid resources to meet its obligations under all reasonably expected circumstances and will not need to draw down any of the financing facilities.

As at 30 June 2008, RCSA’s liabilities have contractual maturities which are summarised below:

Interest�Rate� Current� Non-�Current % Payable 1 month Payable 6 months 1 to 5 years to 6 months to 12 months

� � $� $� $Trade & other payables nil 258,056 0 0

The above contractual maturities reflect the gross cash flows, which may differ to the carrying values of the liabilities at the balance sheet date.

22

In the opinion of the directors:

(a) The financial statements and notes of the company are in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the company’s financial position as at 30 June 2008 and of their performance for the year ended on that date; and

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

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

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

Stephen Shepherd MRSCA Deborah Wilson MRCSA

Director Director

Dated this 9th day of October 2008

Melbourne, Australia.

Director’s Declaration

23


Independent Audit Report

24

Independent Audit Report

25


Recruitment & Consulting Services Association Ltd

Australia & New Zealand

Australia ABN 41 078 606 416

New Zealand GST No. 69 328 717

Level 3, 63 Exhibition Street

Melbourne VIC 3000

Australia

T: +61 3 9663 0555

F: +61 3 9663 5099

E: [email protected]

www.rcsa.com.au

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