Master Builders NT 2012 Annual Report

MASTER BUILDERS NTANNUAL REPORT 2012

MASTER BUILDERS NT.

BUILDING THE TERRITORY.MASTER BUILDERS

NORTHERN TERRITORY

FOREWORDMaster Builders is an iconic national brand and indisputably the peak industry body in the NT, as well as being the third largest industry association in Australia.

These are exciting times for the NT Construction Industry. Coming off the back of a number of slow years 2011/12 has seen land release and housing approvals increase and we are yet to see the full effect of the Inpex Ichthys LNG project and other major projects.

As we prepare for the largest growth period in the Northern Territory’s history our vision for representing the building and construction industry has never been more vital.

This will be my last report as President, having served three very enjoyable and profoundly satisfying years in the position. The incoming President will be Dick Guit, General Manager of Sitzlers Pty Ltd. I am sure you will give Dick the same support that you have given me.

Phil StoreyMaster Builders NT President

CONTENTS1 Executive & Council2 MBANT Staff3 About Master Builders NT4 President’s Report5 Executive Director’s Report8 General Manager’s Report12 Membership & Events Report19 OHS Report20 Training & Services22 IR Report23 Master Builders Insurance Services24 CAMS Report26 General Purpose Financial Statements

Master Builder Association Northern TerritoryABN 54 527 741 841

Front Cover: 2011 Overall Home of the Year - Vantage Homes, The Dobbie & Lake Residence.Inside Cover: Commercial Construction $11 to $20 Million - Sitzler Bros, Alice Springs Aquatic Centre.

2011 Excellence in Building & Construction Awards winning projects are featured throughout this report.

© 2012 Master Builders Association NT.No text, photo or graphic shall be reproduced, copied, published, broadcast, rewritten for broadcast or publication, or redistributed directly or indirectly in any medium without permission. Mo material or links or any portion thereof may be stored in a computer except for personal and non-commercial use.

Executive Board Members

President Phil Storey Holcim (Australia) Pty Ltd

Vice President Dick Guit Sitzler Pty Ltd

Vice President Paul Nowland Nowland Builders Pty Ltd

Members Clive Clements C & I Clements NT Pty Ltd

John Brears Mirage Developments Pty Ltd

Sandy Kirsopp Darwin Galvanizing Pty Ltd

Charles Wright QS Services

ANNUAL REPORT 2012 MASTER BUILDERS NT | 1

General Council Members Phil Storey Holcim (Australia) Pty Ltd Dick Guit Sitzler Pty Ltd Greg McLaughlin Mobile Electrics (NT) Pty Ltd Sandy Kirsopp Darwin Galvanizing Pty Ltd John Brears Mirage Developments Pty Ltd David Lester Ahrens Paul Nowland Nowland Builders Pty Ltd Richard Riedel ITW Buildex Charles Wright QS Services Roger Pearson Arafura Catering Equipment Kevin Peters ICN NT Andrea Moriarty Killarney Homes Pty Ltd Leanne Kison D & H Agencies Pty Ltd Claire Forsyth Hays Specialist Recruitment Russell Lutzke CSR Ltd Ken Hyde Delta Electrics Pty Ltd Clive Clements C & I Clements NT Pty Ltd

2 | MASTER BUILDERS NT ANNUAL REPORT 2012

MASTER BUILDERS NT STAFF

Graham KempExecutive Director

Ryan PageMembership & Marketing Coordinator

Laddawan Te MaroIR Manager

Brett WilliamsSafety Supervisor

Jeff ColverGeneral Manager Operations

Clive ScobieOHS Manager

Katherine MorrisOffice Administrator

Intan McDeanReceptionist

Tony SchumacherApprenticeships Management Officer NT

Karl TesterInsurance - MBAIS / NAIB


ABOUT MASTER BUILDERS NT

The Master Builders Association Northern Territory (Master Builders NT) is the peak industry association representing all sectors of the housing and construction industry. The Association has a diverse membership which includes commercial/residential builders, developers, contractors, subcontractors, suppliers and consultants. Master Builders NT has approximately 300 member companies, from the largest builders to the smallest sole traders. Our members span the vast frontiers of the Northern Territory; including Darwin, Katherine, Tennant Creek, Alice Springs and Nhulunbuy.

Master Builders NT has represented the Building and Construction Industry in the Northern Territory since 1950. From 1980 – 2009 the trading name was changed to the Territory Construction Association. In 2009 members supported reverting to the Master Builders NT trading name. The change was made to acknowledge the proud affiliation with the federation of Master Builders Associations, with offices in every state and territory in Australia and over 31,000 members nationally. For over 60 years Master Builders NT has sought to promote a Building and Construction Industry focused on professionalism, ethics, integrity, safety and friendship.

The primary role of Master Builders NT is to promote the views and interests of the Building and Construction Industry. This is achieved through its active involvement with affiliated organisations / boards, as well as federal, state and local government authorities, architects, lending institutions and various other organisations, for the purpose of maintaining and improving contractual, industrial and general business relationships within the industry.

In the end the reason members support the Master Builders NT is that there are many barriers for Industry to overcome in the Northern Territory; isolation, lack of economies of scale, increased material/labour cost, labour supply and many others. Master Builders NT acts to reduce these burdens on Industry. Despite these hurdles the Northern Territory Building and Construction Industry is amongst the most successful in Australia and we are extremely proud to be a part of it.

Master Builders NT Office11/396 Stuart Hwy, Winnellie NT 0820


PRESIDENT’S REPORT

Phil Storey - NT Manager Holcim (Australia) Pty LtdI am pleased to present the Annual Report of the Master Builders Association NT for 2012.

This will be my last report as President, having served three very enjoyable and profoundly satisfying years in the position. The incoming President will be Dick Guit, General Manager of Sitzlers Pty Ltd. I am sure you will give Dick the same support that you have given me.

Master Builders NT is all about membership. From the President down, we are committed to servicing the members who make up our association with industry advocacy, expert OH&S advice, as well as providing members access to extensive and influential networks, with the expectation of receiving commercial benefits.Master Builders is an iconic national brand and indisputably the peak industry body in the NT, as well as being the third largest industry association in Australia.

Our members build houses, offices, schools, hospitals and churches as well as providing specialist contractor services and civil construction. Our manufacturing and supplier members provide the materials to make these construction projects happen. The NT building and construction industry employs more than 10% of the NT employed population and contributes almost the same amount to the NT economy. Accordingly, it is critical that the NT Government continues to engage with the Master Builders Association.

I am pleased to be leaving the position of President with the consolidated financial result being in a very solid position. These are exciting times for the NT Construction Industry. Coming off the back of a number of slow years, 2011/12 has seen land release and housing approvals increase and we are yet to see the full effect of the Inpex Ichthys LNG project and other major projects.

As we prepare for the largest growth period in the Northern Territory’s history our vision for representing the building and construction industry has never been more vital.

The year 2011-2012 has seen the financial strategies set in place three years ago come to fruition and MBANT has returned its first substantial trading profit in many years. Following three minor trading losses in 2011, 2010 and 2009 we produced a profit this year of over $400,000. Revenue rose by 31.33% and we contained expenditure to a low 5% increase and in the process lifted our Member’s Equity to over $601,000.

It is important therefore that I recognise the work of the Master Builders staff led by the Executive Director, Graham Kemp and General Manager of Operations, Jeff Colver. They have shown their unfailing commitment and dedication to the members.

Finally, I would like to thank the Executive and Council of MBANT, who have supported me as President and have also provided their time voluntarily to contribute to the NT building and construction industry. Executive and Council members also provide valuable input into a large number of government boards and committees. This is important work and provides valuable input into NT Government policy formulation.

Phil Storey

Master Builders NT President


EXECUTIVE DIRECTOR’S REPORT

Graham Kemp - Executive Director Master Builders NTThe Master Builders Association NT is the peak industry and employer organisation representing the building and construction sectors of the Northern Territory. Master Builders NT is a proud member of the Federation of Master Builders (MBA Inc). There is a Master Builders branch represented in every state and territory of Australia. MBA Inc is the national body which MBANT accesses for legal, technical, economic and industrial relations advice.

Master Builders NT delivers vital construction business support services, information and advocacy to around 300 members, who in turn provide the Northern Territory communities with quality, affordable and environmentally friendly commercial and residential buildings. Master Builders is a member owned and member driven organisation.

The Association has been committed to excellence and safety in the NT since 1950. Master Builders NT is governed by an elected Board of Management and a General Council.

It is vitally important that the construction industry speaks with one voice, and that voice is authoritative and informed. In this way, the construction industry, through Master Builders, is able to set its own agenda and control its own destiny rather than simply waiting for changes to be thrust upon it.

Over a period of time, Master Builders has earned the respect of decision makers in the Territory. Not only is Master Builders opinion noted, it is actively sought on matters of importance relating to the building and construction industry.

Representation

MBANT staff provide the construction industry voice on a range of boards and committees including –

Australian Industry & Defence Network (AIDN)

Building Advisory Committee

Building Appeals Board

Building Practitioners Board

Building Industry Reference Group (BIRG)

Contractors Accreditation Limited (CAL)

DET Peak Industry Advisory Council

WorkSafe NT - Workers Compensation Rehabilitation Advisory Council

Government Procurement Council (GPC)

Industry Capability Network NT (ICN NT)

MBA Insurance Services (MBAIS)

NT Business Council

NT Build Board

Work Health & Safety Advisory Council (WHAC)

Gearing Up Local Business for Major Projects



Access to Government

Master Builders has a long and proud history of successful industry representation and advocacy. Our aim is to protect and advance the interests of our members and the industry.

Networking Opportunities

Master Builders NT organises events such as Golf Days, Industry Breakfasts, Treasurer’s Budget Breakfasts and the annual Excellence in Building and Construction Awards. MBANT also provides opportunities for networking and to increase exposure for your business with Information Nights, Trade Functions, Product Launches & Sponsorship Opportunities.

Report

I would like to express my grateful thanks to the Executive Committee and General Council for their counsel and guidance. In particular, I would like to record my thanks to President Phil Storey for his valued support and wise counsel over the last three years. Early in his tenure Phil was recognised and acknowledged by the National Board for his advocacy of the NT, thereby giving Master Builders NT a strong voice on the national stage.

MBANT is a foundation shareholder of Master Builders Association Insurance Service. MBAIS is a highly respected national insurance broking business, dedicated to providing competitive insurance products to the construction industry. Master Builders NT also hold a board position with MBAIS, representing the NT’s interests. Quality insurance services to NT members have taken a quantum leap in professionalism, expertise and overall service with Karl Tester joining MBAIS as an authorised representative, trading as North Australian Insurance Brokers (NAIB).

Master Builders NT is committed to serving the building and construction industry in the best possible manner. Services to members continue to improve. Members are kept informed with a weekly electronic Members Bulletin, training has increased with Certificate IV in Construction Courses, helping to provide the training for more NT builders, White Card Courses, a basic requirement to enter a building site, and nationally accredited Test and Tag Courses.

The move to our premises at Terminal One Building on the Stuart Highway has been worthwhile and has provided an opportunity to improve our profile and substantially increase our training opportunities and thereby service the industry more effectively. Ironically, business has been going so well that we are bursting at the seams and we are looking for extra office space.

As identified in the Training Report, income from Training has become a major part of Master Builder’s overall income. This not only provides income to MBANT but provides a core service to the building and construction industry as well.



I am particularly proud of the services we are providing as members gear up to meet the challenges of INPEX and other major projects.

Our OH&S services to members has reached new heights, which is so important as our members tender for the larger projects.

The IR services we now provide are second to none, and are available to our members, when they need them most. Make no mistake we are seeing a dramatic upturn in union activity. In recent times we have seen delegations of unions from other states coming to Darwin, ostensibly to provide OH&S “audits”, but the reality is bullying, intimidation, violence and thuggery as we have seen recently of the Grocon sites in Melbourne and Sydney could be closer than we would like to think. Nevertheless, Master Builders will be ready for the challenge and will provide support to our members.

What will set a great new direction for Master Builders; will be the management of the Residential Building Insurance fund which is due to start on 1 January 2013. This important piece of legislation will provide comfort and certainty to homeowners and to the residential building industry. It will also provide greater opportunities in the long run, as the scheme becomes established, for Master Builders to put more services back into the industry for builders and consumers.

All of this would not be possible without the dedicated commitment of Master Builder’s staff. In this regard, I would like to express my personal and grateful thanks for the magnificent effort the staff have given to the association –

• JeffColver GeneralManagerOperations• CliveScobie OHSManager• Laddawan Te Maro IR Manager• BrettWilliams SafetySupervisor• RyanPage MembershipandMarketingCoordinator• KatherineMorris OfficeAdministrator• FranSay Bookkeeper/FinancialController• IntanMcDean Receptionist• TonySchumacher CAMS(ApprenticeshipEngagementOfficer)

Master Builders NT will continue to represent members interests vigorously, both with the NT and Federal Governments.

Graham Kemp

Executive Director Master Builders NT


GENERAL MANAGER’S REPORT

The best executive is the one who has sense enough to pick good men to do what he wants done, and self-restraint to keep from meddling with them while they do it.

Theodore Roosevelt

A Hard Grind

The past three years as General Manager Operations of Master Builders NT has been somewhat of a hard grind…often frustrating, intermittently heart breaking, never boring and occasionally rewarding….but never more rewarding than right now as I look at where we have come from and where we are now going.

The financial year 2011-2012 has seen a diverse range of strategies come to fruition in almost every way; plenty of cash in the till, record numbers of Members in the registry, quality of service provision acknowledged, greater branding awareness and a recognition within the industry and within the Territory itself that whatever we do here…we do it well!

The above indicators are the yardsticks of our success but without doubt the personnel who have taken the risk to come on board and work with our team have been and will now continue to be the real heroes of our continuing industry leadership into the next decade.

As Teddy Roosevelt is quoted above as having said we have picked the good men and women and they are doing their bits and pieces under nothing more than general supervision and more and more construction industry players are actively seeking their services. This is particularly true of our smaller members. The face of the Membership of Master Builder’s has changed with the times and whilst we appreciate and value the big end of town business we have targeted the small/medium builders because they are more likely to need and request our services.

We have had to break into new market sectors and worked hard often with little resource to gain our share of those markets. Once we have gained a foot in the door the general practitioners amongst our number have gladly handed the work over to those who specialise in it and have in the process turned MBANT sector by sector into a hugely capable servicing organisation.

Unbeatable Teamwork has been the Key

The current and recent staff team is without doubt one of the finest and most committed groups of people that I have had the pleasure of working with in almost 50 years of public and private sector management. What separates us from other Industry Organisations is the very high regard in which we hold our support staff. They all specialise in their own areas with great enthusiasm and provide our fee-earning specialist such as the Executive Director, myself, our Industrial Relations Manager and our two very capable and highly qualified OHS Specialists with the opportunity to spend fee earning hours wholly on the delivery of their services.

My thanks therefore go to former staff members over the past year including Membership and Marketing Manager-Emily McEachern (2 February 2011 to 16 July 2011), Administration Assistant-Sheree Scott (29 March 2011 to 30 August 2011), Administration Manager-Alison Reidel (3 February 2010 to 20 September 2011), Receptionist-Tramaine Dukes (18 April 2011 to 22 June 2012) and finally the



Administration Manager-Kelly Vincent (5 September 2011 to 3 August 2012). The remaining expanded staff members are nominated on page 2 of this Annual Report and individual stories appear in this booklet featuring highlights of their activities.

Let’s Not Forget the Contractors and Lecturers

This report would not be complete without reference to our Contractors in training. Headed up by Michael O’Donnell of Sydney who is our Chief Assessor for all RPL’s and leading Lecturer in Cert IV (Plans, Specifications Codes and Standards, Site Surveying and Setting Out, Contracts Administration and Management and Human Resource, Site Safety Management), Michael Hatton, for Cert IV in Builders Quantities and Estimating as well as Testing and Tagging, Debra Robinson in White Card, Katrina Fong Lim (now our City’s Lord Mayor) in Cert IV-Managing Finances, Kirsty McInnes in Cert IV-Structures and Materials Handling and Cert IV in Timber Framing, Bracing and Tie Down and Jerry Tyszkiewicz in Cert IV Residential Site Safety Management. I wish to thank them all for the diligence and their care for the outcomes of our students during the past year.

Highlights in Operational Areas

TrainingWork Safely in the Construction Industry (White Card), Testing and Tagging of Electrical Equipment and Cert IV in Building and Construction Building (Building) have remained the flagship of the Training fleet achieving 20.5% of all revenue this year compared to 35% in the previous year. Major factors have been a slowing down in the need for White Cards and the lack of funding available from the Commonwealth and NT Governments for building training. Further our former Registered Training Organisation, MBANSW has advised that it no longer has the resource base to provide this type of service to the NT, Tasmanian and Western Australian MBA’s. I am in the process of restoring that RTO link within a few weeks.

Sales of Standards and Contracts

This suite of products is handled by Receptionist Intan McDean and has shown an upward trend in sales across the past year of over 40%. MBANT is about to commission a total re-write of its Residential Building Contract so that we can guarantee the finest and most simple to understand contract documents on sale in the NT.

Industrial Relations Advice

With the advent of major projects in the Top End the various Unions have become active in recruiting new members to their ranks; often with unnecessary additions to the employer’s business running costs. Laddawan Te Maro, formerly an Inspector with the Fair Work Ombudsman’s Office and a qualified Lawyer has taken over the IR role from myself and is doing a fine job with Enterprise Agreement writing, mediations of disputes, the Contract for IR Advice to Apprenticeships Australia NT, the creation of Common-Law contracts between employers and employees and general IR advice. She is rapidly adding value to MBANT Membership and we have taken into Membership recently a Hair and Beauty Therapist for IR purposes and will continue to expand this role as we move towards 2013.



Occupational Health and Safety AdviceOHS Manager Clive Scobie has now been joined by OHS Supervisor Brett William to form a formidable team in this newly created section of MBANT. Between them they cover lead auditing in the big three accreditation areas of OHS, Quality Assurance and Environmental Management. These are the high standards to which Construction Practitioners in the NT are being required to become accredited to in order to get the big contracts which are on offer in the Top End as a result of the Resources Boom. Our Members have achieved some of the biggest Tenders in their working lives under the stewardship of the OHS team and they are solidly booked out for many weeks in advance. As with the IR Manager, Clive and Brett are greatly adding to the value of MBANT Membership.

GeneralMBANT are in the process of establishing relationships with other Training Units in the Master Builders Federation. We are dealing already with MBA Victoria in relation to some OHS training and we are exploring RTO relationships with both South Australia and the ACT for others.

The next two big projects for the Operations Staff will be:

1. To develop and deliver a small business bookkeeping service for a target clientele of between 75 and 125 business clients not necessarily related to the construction industry. This service will provide debtors/creditors, payroll and Taxation/BAS services of a high standard but at affordable rates.

2. To begin the very challenging role of establishing and managing the Residential Building Insurance (RBI) portfolio from 1 January 2013. The legislation passed in 2012 will require that all builders needing to lodge a building application will be required to provide themselves with RBI prior to being able to gain approval for that application. The service will require the creation of new office space and will eventually require two full time staff with a part time management overview.

It is truly an exciting time to be able to use my experience and capabilities to push Master Builders NT to the top of its game over the next 3 to 5 years as I head towards retirement. I look forward to lifting the capabilities of our Members and Non-Members alike with the help of our team as we continue to head in an upward direction.

Jeff Colver

General Manager Operations



MEMBERSHIP & EVENTS REPORT

Membership Services

The Master Builders Association Northern Territory (Master Builders NT) is the peak industry association, representing all sectors of the housing and construction industry. The Association has a diverse membership which includes commercial/residential builders, developers, contractors, subcontractors, suppliers and consultants. Master Builders NT has approximately 300 member companies from the largest builders to the smallest sole traders. Our members span the vast frontiers of the Northern Territory; including Darwin, Katherine, Tennant Creek, Alice Springs and Nhulunbuy.

This distance, roughly 2,500km, represents a substantial barrier to service delivery. Currently we provide White Card and Test & Tag training in Katherine, Alice Springs and other remote locations on request. We are also able to fly OHS and IR staff to these remote locations. The economic benefit to Master Builders of providing these services in regional areas is negligable but as an Association we have a duty to our members to do so.

Looking forward Master Builders NT is seeking to increase our online presence and researching the ability to provide these services online where possible. With the roll out of the National Broadband Network(NBN) the potential for online service delivery is better than ever. We are however, slowed by legislation requiring our nationally recognised training, such as White Card, to be conducted face to face. We are examining ways to provide online training through Skype and other means which will guarantee the regulator certainty of the identity of the person receiving the training.

A - Darwin

B - Nhulunbuy

C - Katherine

D - Tennant Creek

E - Alice Springs

Remote Construction Project 2012Brustolin Builders - Jabiru Boarding Residence



Events Background

The primary role of Master Builders NT is to promote the views and interests of the Building and Construction Industry. Promoting these views first requires consultation with our members to explore their needs and concerns. MBANT achieves this through the use of events, as a social setting is often found to yield an easier source of information than a formal approach. At their core, Master Builders events are designed with a professional or educational scope, but will usually also encourage some socialising or networking. The purely social occassions that we do have, such as golf day’s and BBQs, provide an environment were Master Builders staff and members can communicate with each other in a neutral environment, strengthening the bond between members and the association. This helps to strengthen our ability to present a united front when consulting Government about matters concerning the NT Building and Construction Industry.

These information and networking orientated events include trade evenings, information seminars, BBQs, golf days, budget breakfasts and culminate in what has become the largest industry occasion of the year and second largest gala event in the Territory; the Master Builder NT Excellence in Building and Construction Awards. To win an award at this event is an achievement recognising the highest standards of workmanship. It provides an endorsement that is recognised and respected by both industry and public. Two Master Builders NT members also won awards at the 2011 Master Builders Australia National Awards.

National Presidents Awards - 2011Leighton Contractors - RAAF Base Tindal

National Civil/Infrastructure Award Under $25m - 2011 Advance Civil Engineering - Ogee Spillway

MBANT Excellence in Building& Construction Awards 2011



2011/12 Events

11 Oct 2011 - ABCC Seminar on Sham Contracting and National Code compliance (Darwin)

27 Oct 2011 - Melbourne Cup members function - SkyCity

7 Nov 2011 - ABCC Seminar on Sham Contracting and National Code compliance (Alice Springs)

7, 9 & 11 Nov 2011 - Model Work, Health and Safety Law Reform seminars - NT WorkSafe

30 Nov 2011 - Residential Building Insurance - Builders meeting

19 Jan 2012 - Residential Building Insurance - Follow Up Builders meeting

14 Feb 2012 - Cert IV Introduction Night

15 Feb 2012 - Urbex Land Release Presentation

20 Mar 2012 - Awards Launch function

3 Apr 2012 - CIC Australia Land Release Presentation

2 May 2012 - HBCF Waterproofing & Tiling seminar

3 May 2012 - Treasurers Budget Briefing Breakfast - SkyCity Darwin

8 May 2012 - Treasurers Budget Briefing Breakfast - Crowne Plaza Alice Springs

14 May 2012 - RITEK presentation - Affordable Solutions to Conventional Building

15 Jun 2012 - MPA/NECA Golf Day Palmerston

20 Jun 2012 - ATO seminar - Taxable Payments Reporting

11 Jul 2012 - Gearing up for Major Projects Expo

13 Jul 2012 - MBA/Aerosail Golf Day Marrara

23 Jul 2012 - Procurement Reform Seminar

8 Aug 2012 - The Great Debate - Chief Minister v Leader of the Opposition - Skycity Darwin

17 Aug 2012 - Excellence in Building & Construction Awards - Darwin Convention Centre



Excellence in Building & Construction Awards 2012

The 16th annual Master Builders Excellence in Building and Construction Awards were held on the 17th of August at the Darwin Convention Centre. It was once again time for 600 members of the construction industry to remove their steel caps, hard hats and high vis and don their black ties and cocktail dresses to salute the best builders, suppliers, contractors and apprentices in the Territory. Representatives of Government, major industry, contractors, architects, engineers and industry professionals came together at the Gala Presentation dinner to celebrate Excellence in the Building and Construction Industry.

Excellence Awards are, within the Australian context, unique. Nowhere else will you see the breadth of projects eligible for awards as you will under the MBANT banner. To win an award at this event is an achievement, not only recognising high standards of workmanship, but providing an endorsement which is recognised and respected by both the industry and public. The awards have been designed to recognise the very best practices in the NT building and construction industry and are judged on workmanship, execution of project, and innovation.

Coming off the back of a number of slow years 2011/12 has seen land release and housing approvals increase and we are yet to see the full effect of the Inpex Ichthys LNG project and other major projects. Latest Government research has shown that over 20,000 new workers will be needed in the Territory over the next 5 years, with about 5000 of those within the Construction Industry. This growth, whilst exciting, has further challenged the industry through increased material and labour costs. This has forced the industry to find new and innovative ways of lowering costs in order to maintain affordability. The 2012 Awards have shown that the Industry has maintained the exceptionally high standards the judges and the public have come to expect. If the quality of projects put forward for judging are indicative of anything it is that the future of construction in the Territory is very bright indeed.

Territory FM’s Peter Perrin was the Master of Ceremonies for the evening and Master Builders NT would like to commend him on the professional job he did on the night. The program was very busy with nearly 60 awards and commendations but Peter got through them all neatly and on time.

The entertainment was fantastic, Peter Rowsthorn set the crowd laughing and Dirty Dan and the Rockers had everyone dancing late into the night.

Special thanks must go to our Platinum Sponsor, the Northern Territory Government. This special event would not be possible without their continued support.

These are exciting times for the NT Construction Industry.


We also wish to thank our excellent panel of judges, who volunteer their time to perform the most vital role in these awards. The quality of Judging is a critical component toward the credibility and success of the awards. The judges for 2012, in no particular order, were;

John Brears Clive Clements Stephen Say Tony Schumacher Mark Brustolin Chris Lovewell Tony Papadakis David Lester Tom McCullough Mike Hatton Justin Gill Paul Nowland Claire Forsyth

Judging requires a formidable investment of time, taking 3 to 4 weeks to complete. A special thank you to Kevin Page for volunteering his time to drive the Judges to their site visits and Bridge Toyota for donating the Car.

As fantastic as the entertainment was, the stars of the show were the builders. The Judges were very impressed with the caliber of projects in 2012 and would like to thank all the entrants for their participation and hope they decide to embark on the journey that is the MBANT Excellence Awards in 2013.

The President’s Award is equivalent to best in show and is judged on workmanship, execution of the project and innovation. This year it was won by PTM Group for the Nemarluk School, Design, Document and Construct project. This prestigious award was presented by Master Builders NT President Phil Storey. Head Commercial Judge Clive Clements said it was “A design and construct project built for children with special needs. The construction comprised complex requirements for classrooms and external activities. It is an exceptional project that required extensive local community involvement.” NT Department of Education and Training’s Deputy Chief Executive Public School Education and Training Operations, Eva Lawler, said “All credit should be given to the construction companies involved.We now have a new state-of-the-art school to support the learning outcomes of our students with special needs.” The construction featured 14 purpose-built classrooms, a hydrotherapy pool, a multipurpose assembly hall, a gymnasium, an after-school care building and colour-coding used to help students navigate the campus.

The Overall Home of the Year was taken out by Vantage Homes for the Edwards Residence. This four bedroom plus study and media room semi-rural home is a beautiful example of tropical living. This open plan home features true tropical design principals, minimising the need for artificial cooling by utilising cross flow ventilation all orientated to capture prevailing breezes. Head Residential Judge John Brears said it was “An exceptional example of tropical design and construction to the highest standards.”




The Judges’ Award is given to the project featuring the best mix of design and innovation. It was awarded to Abode New Homes for the Attitude 152. Housing is expensive in the Territory and the market is difficult and daunting to a first home buyer. The Attitude is designed for starters in the market to be compact and easily extended in size as required when the family grows and the budget allows. This innovative design for a house purpose built to be affordable with the idea of expansion in the future is exactly what first home buyers need in the Territory and is an excellent recipient for the Judges’ Award.

The Supplier of the Year and Specialist Contractor of the Year are decided by the entrants of Master Builders Awards for outstanding client service and product delivery. This year the awards went to Darwin Steel and Pipe Supplies and Allcraft Cabinet Works.

The Steve Coombes Memorial Award is given in memory of a man who contributed significantly to the Master Plumbers Association of the NT. It was won by Udo Selter & Tim Shaw from Selter Shaw Plumbing.

The Women in Construction Award highlights the increasing contribution that women make to the Building and Construction Industry and was won by Andrea Moriarty from Killarney Homes.

The highly coveted Young Builder of the Year Award reflects an outstanding achievement by an up and coming builder. It was awarded to Daniel Boccamazzo from PTM Group.

Without the support of the events sponsors, this event would not achieve the prominence and industry credibility it has. Therefore, I encourage you to support our sponsors; as they, help make the MBANT Excellence awards the prestigious event it is today. It is also appropriate that we thank the Executive and Council of MBANT who provide their time voluntarily, to promote the Territory Construction Industry; and finally but most importantly, the very competent staff of MBANT. They work very hard to make this event one of the best presented by any Master Builders Federation member. Once again congratulations to all of our entrants and winners, we look forward to seeing all of your projects in the awards next year.

Ryan Page

Membership & Marketing Coordinator

Alterations/Additions Under $150,000Bathroom Design Over $21,000Kitchen Design Under $21,000Kitchen Design Over $21,000Landscaping DesignBuilding for the NT ClimateEnvironment & Energy EfficiencyProject/Contract Home Under $350,000Project/Contract Home $350 - $500,000Project/Contract Home $500 - $650,000Project/Contract Home $650 - $800,000Project/Contract Home $800 - $1mProject/Contract Home $1 - $2mDisplay Home $250 - $350,000Display Home $350 - $500,000Display Home Over $500,000Special Purpose DwellingMedium Density 2-5 DwellingsHigh Rise Apartment Building

Public Buildings Under $15mCommercial/Industrial Under $5mCommercial/Industrial $5 - $10mCommercial/Industrial $20 - $50mCivil/Infrastructure Under $25mCommercial Fitout Under $300,000Commercial Fitout Over $300,000Remote Construction Project

Metal Roofing & Walling – ResidentialMetal Roofing & Walling – CommercialElectrical Contracting - Voice/DataElectrical Contracting - CommercialElectrical Contracting - Industrial

Electrical Apprentice of the Year Carpentry Apprentice of the YearPlumbing Apprentice of the Year Overall Apprentice of the YearBuilding Designer – ResidentialSupplier of the YearSpecialist Contractor of the Year Women in Construction Young Builder of the YearSteve Coombes Memorial AwardJudges’ AwardOverall Home of the YearPresident’s Award


Residential

SAR ContractingS&M Construction NTKillarney HomesVantage HomesKillarney HomesVantage HomesKillarney HomesVantage HomesAbode New HomesOverlander HomesVantage HomesVantage HomesSunbuildAbode New HomesAbode New HomesKillarney HomesVantage HomesTropical Lifestyle HomesHalikos Group

Commercial/Civil

PTM GroupBrustolin BuildersSunbuildSunbuildAdvance Civil EngineeringISIS Group AustraliaISIS Group AustraliaBrustolin Builders Specialist Contractors

RoofmasterProdigy ConstructionsNilsen NTNilsen NTNilsen NT

Individual & Apprentice

Nilsen NTNorbuiltOverland PlumbingNilsen NTVantage HomesDarwin Steel & Pipe Supplies Allcraft Cabinet Works Killarney HomesPTM GroupSelter Shaw PlumbingAbode New HomesVantage HomesPTM Group

The Roddie ResidenceThe Kathopoulis ResidenceThe Watson ResidenceThe O’Hare ResidenceThe Watson ResidenceThe Edwards ResidenceThe Killarney Bellamack DisplayThe Burke ResidenceThe Utopia 192The Samsara DesignThe Edwards ResidenceThe Pick ResidenceThe Kypreos ResidenceThe Attitude 152The EnvyThe Killarney ElevatedThe Burke ResidenceThe TL Homes TriplexC2 Esplanade Apartments

Nemarluk SchoolDumabudla Cultural CentreHighway HouseWickham Point Immigration CentreMcKinley River – Rail BridgeEvoo RestaurantISIS Group Australia Darwin OfficeJabiru Boarding Residence

Karama ApartmentsNemarluk SchoolArnhemica HouseMackillop Catholic CollegeChannel Island Switch Yard

Tobias BarnesJason StevensDane MiglierinaTobias BarnesAndy Matthewson Andrea MoriartyDaniel BoccamazzoUdo Selter & Tim ShawThe Attitude 152The Edwards ResidenceNemarluk School

2012 MASTER BUILDERS NT EXCELLENCE inBUILDING & CONSTRUCTION AWARD WINNERS

Photo:Halikos Group - C2 ESPLANADE


OHS REPORT

During 2011/12, Master Builders Northern Territory continued to provide high quality occupational health and safety (OHS) services to members.

OHS training courses provided by MBANT were: Construction “Induction” White Card (weekly), Testing and Tagging of Portable Electrical Equipment, (monthly), and Certificate IV in Building and Construction; Residential Site Safety Management Module, (2 Courses ). All were Certificate IV Vocational Education Training (VET) nationally accredited programs, delivered by trainers with Certificate IV Training and Assessment qualification.

OHS Training

The Training Manager/OHS Consultant Jerry Tyszkiewicz left during the year. Clive Scobie succeeded Jerry in the redefined role of OHS Manager. Clive is an experienced OHS professional, with many years managing and consulting on OHS matters in mining and heavy industry including construction. Clive has been recently joined by a further OHS professional in the person of Brett Williams.

OHS Personnel

New harmonised OHS legislation was introduced into the Northern Territory on Jan 1st 2012. The Work Health & Safety, (NUL), Act and Regulations 2011 legislates greater accountability by business owners and specifies a systematic approach, particularly managing high risk construction work. The new legislation also calls up specific codes of practice for construction which requires Safe Work Method Statements, (SWMS), for defined high risk activities and Safety Management Plans for jobs greater than $250,000.

OHS Legislation Changes

Driven by the requirements of the Inpex project, many principal contractors are requesting proof of effective OHS management, such as certification to the Australian Standard for OH&S Management Systems, (AS 4801). In the case of Commonwealth Government Tenders over $M 5, additional certification by the Office of the Federal Safety Commissioner, (OFSC), is also required. Other significant principal contractors such as the NT Government, Power and Water Corporation, and ERA Ranger Mine also require demonstration of high OHS standards at tender stage.

Requirements of Principal Contractors

While the level of OHS training is being maintained through contract trainers, the MBANT service emphasis is changing. Clive’s experience introducing and managing OHS systems, has helped redefine the level of services available to members.

Our current focus is to provide assistance to complete SWMS, draw up OHS project plans, design and implement OHS management systems, and then assist formal management systems certification where required. Master Builders can provide the highest level of service for members, at affordable rates.

Call Clive Scobie (OHS Manager) on 0458 601 249 or Brett Williams (OHS Supervisor) on 0417 111 553 or call General Manager Operations Jeff Colver on 0427 096 879 to assist in making an appointment.

OHS Management Systems

Clive Scobie

OHS Manager

TRAINING & SERVICES


White Card, or Construction Induction, is an essential first step in a career within the Building and Construction Industry. Due to Work, Health and Safety legislation, all entrants to a Building or Construction site are required to have a White Card. This makes White Card training a valuable source of income to MBA NT and an important service to the industry.

From July 1st 2011 to June 30th 2012 MBA NT has trained over 600 students taking part in the White Card Construction Induction Course. White Card Courses are held every Tuesday, in Darwin, with a minimum of 15 students booked per class.

The Northern Territory is going through a period of rapid growth, creating a great deal of interstate interest in living and working in the Territory. There is a great deal of those that are seeking employment within the Building and Construction Industry that have interstate qualifications, creating an increased demand for the RPL service which MBA NT does not foresee will decrease in the near future. From July 1st 2011 to June 30th 2012 MBA NT have processed over 500 Recognition of Prior Learning (RPL) applications.One area of contention is being unable to process qualifications attained through online learning due to NT and WHS Legislation; the Queensland based Blue Dog cards have been one particular example we have seen coming through quite often and are unable to transfer. However with the new White Cards being recognised Australia wide and being issued after only a one week processing period, MBA NT has ensured that the service delivery of our RPL process is as efficient as possible and that students are less likely to encounter problems when travelling and working interstate.

Master Builders has a responsibility to offer services to the broader Building and Construction Industry that includes members and non-members. Some of these services are the provision of training and the sale of contracts and standards.

Recognition of Prior learning (RPL)

White Card

From February 2012 MBA NT has had nearly 400 complete the training throughout Darwin, Alice Springs, Katherine, Groote Eylandt, Nhulunbuy and Gove. MBA NT is one of the only training providers that are able to offer White Card certificates on the day, which are valid on site. This instant recognition of training is of great value to students, as cards can take two weeks to be processed through the Territory Business Centre.


Master Builders NT has offered Test & Tag training for a number of years, but in October 2011 moved to a Nationally Accredited course through a partnership with MBA Victoria. This allows MBA NT to offer a licence that doesn’t expire and complies with national standards. Unfortunately the previous NT based licence is no longer renewable after expiring and requires an upgrade to the new Nationally Accredited licence.

Since moving to a Nationally Accredited Test and Tag course student levels have increased considerably within Darwin and Alice Springs. MBA NT has trained 300 students since February 2012 and nearly

Master Builders continues to provide a wide range of Australian Standards to members and non-members. Due to the wide range of Standards and the frequency of amendments, MBA NT is unable to keep all varieties of Standards in stock. Instead they are ordered on a request basis from SAI Global.

SAI Global process orders as soon as they are placed, generally taking two weeks from the time they are ordered till they are received by the consumer. MBA NT offers Australian Apprentice members a 10% discount on all Standard and Handbook purchases.

Test & Tag

500 since the new courses inception in October 2011. This was achieved by holding one course per month in Darwin and one per month in either Katherine or Alice Springs. The course has proved so popular that spaces are usually booked months in advance.

First Nationally Accredited Test & Tag Class

Standards & Contracts

Contracts are an essential part of the Building and Construction Industry and provide a legal agreement between two or more people for an exchange of goods or services. Master Builders NT offers a wide range of Building and Trade Contracts. Some of our more popular contracts are:

• Residential Building Contract

• Project Management Contract

• Commercial Building Contract

• Standard Trade Contract

• Affordable Housing - Homestart NT

• Small Renovations and Additions

TRAINING & SERVICES

INDUSTRIAL RELATIONS REPORT


The IR Manager position is a new position that was created to meet the overwhelming demands from our members for excellent IR advice and other IR services.

Obtaining correct IR advice and services is imperative for our members to ensure compliance with the relevant legislations, be competitive in the Building and Construction industry and have correct practices/procedures in place.

The Northern Territory is going to experience major growth in the coming years with some huge projects about to commence or already underway. With growth comes opportunity and change. IR is one area which

The advice and services provided by the IR area includes (but not exclusive to):

• PreparationsandlodgementofWorkplace Agreements

• Preparationofcommonlawcontracts(for EmployeesandSub-contractors)

• Recruitmentadvice

• Adviceonterminationofemployment policies

• Redundancy,longserviceleave,worker’s compensationandsuperannuation obligations

• Leaveentitlements

• Recordkeepingobligations

• Discriminationandbullyinginthe workplace

• Performancemanagementadvice

• Interpretationofcommonlawcontracts

• Employeeversussub-contractorsworking arrangementadvice

• RightofEntry

• AdvicetoApprentices,Trainee,Parent/ GuardianandEmployersaspartofaService LevelAgreementbetweenMABNTand AustralianApprenticesNT

• ProvidecurrentandrelevantIRadviceto membersontopicsofinterest

• Otherindustrialrelationsissues.

will change and we will see that union activities will increase and we will have more industrial relations issues that are new to the Northern Territory. Current demands by members are preparation of workplace agreements (in the form of an Enterprise Agreement) and advice in regards to rights of entry by union officials under the Work Health and Safety Act 2011.

Laddawan Te Maro can be contacted on (08) 8922 9666 , 0410281750 [email protected]

Laddawan Te Maro

Industrial Relations Manager


The Master Builders Association of the Northern Territory (MBANT) provides in-house insurance service and expertise through Karl Tester, Owner and Manager of North Australian Insurance Brokers. The portfolio of clients and members making use of this important service has continued to grow rapidly throughout 2012.

Karl has over 24 years experience in the insurance industry including 8 years as the Northern Territory State Executive of one of the world’s largest insurance broking companies. He is widely acknowledged in the Northern Territory as an expert in his field and is endorsed and recommended by MBANT.

All profits generated from these Insurance Services are reinvested back into the Northern Territory by the MBANT for the benefit of members. This is unique and is the only insurance service provided in the Northern Territory that directly financially supports the construction industry.

Members will benefit from:

• Dealing with construction industry specialists;• Expert advice;• Value for money insurance solutions;• Contract reviews;• Claims management services;• Policy assessment.

Together North Australian Insurance Brokers and Master Builders Northern Territory support the construction industry through this important service.

For assistance and advice please contact Karl Tester on;

Phone: 08 8984 4742Fax: 08 8984 4391Mobile: 0419 957 289Email: [email protected]

North Australian Insurance Brokers Pty Ltd. TERMINAL one 11/396 Stuart Highway, Winnellie NT 0820 are authorised representatives of MBA Insurance Services Pty Ltd ABN 17 110 143 550 under Licence 281729

CAMS REPORT

C.A.M.S is a Commonwealth Government funded project which aims at promoting the Building and Construction industry, along with other trade related organisations that have the capacity to take on Trade Apprentices or Trainees. The scheme is being rolled out to local school leavers and older workers that are looking at entering a trade field of their choice.

This is a national scheme and involves all States and Territories, funding has been allocated to all MBAs around Australia.

Construction Apprenticeship Mentoring Scheme

The Scheme is being rolled out in two parts. The Advisory Scheme and the Mentoring Scheme. The Apprenticeship Engagement Officer NT (AEO) will be the contact point for the Apprentice / Trainee and Trade businesses employing the Apprentice and will supply mentors to monitor and liaise with the Apprentice / Trainee. This will be reported back to the AEO on a monthly basis.

The Roll of the Apprenticeship Engagement Officer is as follows:

• To promote the Building and Construction Industry to school institutions being Secondary / TAFE and Higher education organisations.

• To visit schools and discuss with school leavers in regards to entering a trade related occupation and offering advice and guidance on how to choose a career path that’s good for them.

• To set up information sessions with schools and trade businesses to present information and advice on how to enter into an Apprenticeship or Traineeship within a building or construction related trade.

• To advise on work place conflicts between Employers and Apprentices

• To train on the job as an Apprentice and to assist in resolving any issues as required

• To advise on apprenticeship employment terms and conditions with employers.

• To recruit volunteer Apprentice Mentors who can assist in the development of the Apprentice

• To establish an online advisory information service attached to the Master Builders Association website for potential apprentices to access information on who to contact – who to see – where to go and what steps to take in finding their career path into the Building and Construction Industry and other trade related occupations requiring skilled people

C.A.M.S will primarily be looking at attracting new apprentices into the work force, and advise on options available within the Building and Construction Industry and other professional trade occupations where Apprenticeships are on offer.


The Master Builders Association NT is currently promoting this scheme directly to:

• School leavers looking at entering into a trade related occupation be it the building and construction industry or other trade occupations.

• The Building and Construction Industry

• Employers of apprentices in the Building and Construction Industry

• Employers of other trade organizations that require Apprentices or Trainees

• Existing older workers that wish a career change into a trade related field

In this promotional drive the Scheme has already:

• Contacted Businesses re Apprentices within their Business to determine if Mentors can be attached to these apprentices if agreed upon by the businesses, when the time comes.

• Created Marketing Material to promote the Scheme

• Forwarded correspondence to local businesses / Schools / Local Political members of Parliament.

• Worked along with organisation’s such as Apprenticeships Australia and group training organisation’s as an information sharing avenue to promote the scheme

• Conducted Information Presentations at our local Middle and High schools with sessions of over 120 students per session in attendance plus teachers and career advisors in the schools

• Attended Trade and Business shows to promote the program

• Attended the Career Expo to promote the program.

• Sourced MENTORS

Your business can share in the benefits of this exciting program by contacting:

Tony Schumacher - The Apprenticeship Engagement Officer NTMaster Builders Association NT08 8922 9666, 0411 038 303, [email protected]

CAMS REPORT


GENERAL PURPOSE FINANCIAL STATEMENTS

For the Year Ended 30 JUNE 2012

26 | MASTER BUILDERS NT AUDITED FINANCIAL STATEMENTS 2011/2012

CONTENTS

27 Operating Report

29 Committee of Management Statement

30 Independent Auditors Report

32 Statement of Comprehensive Income

33 Statement of Financial Position

34 Statement of Changes in Equity

35 Statement of Cash Flows

36 Notes to the Financial Statements

AUDITED FINANCIAL STATEMENTS 2011/2012 MASTER BUILDERS NT | 27

The Association, being the Committee of Management for the purposes of the Fair Work (Registered Organisation) Act 2009, presents its operating report of the Master Builders Association Northern Territory Incorporated for the financial year ended 30 June 2012.

Committee of Management

The names of each committee member of the Association during the relevant financial year were:

Phil Storey Dick Guit

Paul Nowland Clive Clements

Greg McLaughlin John Brears

Sandy Kirsopp Charles Wright

David Lester Richard Reidel

Roger Pearson Kevin Peters

Andrea Moriarty Leanne Kison

Russell Lutzke Claire Forsyth

Ken Hyde

Principal Activities

The principal activities of the Association during the relevant financial year were:

To promote the interests of the building and construction industry in the Northern Territory;

To safeguard the interests of its members against injustice in their regular business and such activities as are ancillary to the building and construction industry;

To protect its members against injustice or oppression in the fair and proper execution of such worksas they may undertake from time to time to carry out;

To establish a code of ethics and good business practice amongst members;

To take an active part in assisting or opposing such public movements as may appear likely to affect its members‘ interests in the carrying on of their business;

To secure to its members all the advantages of unity of action in any lawful manner whatsoever;

To maintain and improve conditions of contracts, forms of agreement, conditions of tendering and the like and to enter into agreements with the Royal Australian Institute of Architects or similar bodies, public authorities the Commonwealth and Northern Territory authorities and lending institutions.

OPERATING REPORTFOR THE YEAR ENDED

30 JUNE 2012


Results of Activities

The net profit of the Association for the financial period was $413,996.

Significant Changes in Nature of Activities or Financial Affairs

No significant change in the nature of the activity occurred during the period.

Membership of the Association

The number of members of the Association at the end of the financial year was 273.

Employees of the Branch

The number of persons employed by the Association during the financial year at one time was 7.

Rights of Members to Resign

Members retain their right to resign from the Master Builders Association Northern Territory Incorporated in accordance with section 10 of the Federal Rules and Section 174 of chapter 6 of Fair Work (Registered Organisations) Act 2009. In accordance with Section 174 Schedule 1 of the Workplace Relations Act a member of an organisation may resign from membership by written notice addressed and delivered to a person designated for the purpose in the rules of the organisation or a branch of the organisation.

Superannuation Trustees

No officer or member of the organisation is a trustee of a superannuation entity.

________________________________ ___________________________________

President –Phil Storey Treasurer-Graham Kemp 18 September 2012 18 September 2012

OPERATING REPORTFOR THE YEAR ENDED

30 JUNE 2012


STATEMENT BY THE COMMITTEE OF MANAGEMENTFOR THE YEAR ENDED

30 JUNE 2012

On the 18th of September 2012 the Committee of Management of the Master Builders Association of the Northern Territory Incorporated passed the following resolution in relation to the general purpose financial statements (GPFS) for the year ended 30 June 2012 as follows:

In our opinion -

a) the financial statements and notes comply with the Australian Accounting Standards;

b) the financial statements and notes comply with the reporting guidelines of the Industrial Registrar;

c) the accompanying financial statements as set out on the following pages, being a general purposes financial statement, is drawn up so as to present fairly the state of affairs of the Association as at 30 June Z012 and the results of the Association for the year ended in the date;

d) the accounts of the Association have been properly prepared in accordance with the books of account of the Association; and

e) there are reasonable grounds to believe that the Association will be able to pay its debts as and when they fall due.

During the financial year ended 30 June 2012 and since the end of the financial year:

a) meetings of the Committee of Management of the Association were held in accordance with the rules of the Association.

d) the financial affairs of the Association have been managed in accordance with the rules of the Association.

c) The financial records have been kept and maintained in accordance with Part 8 (records and Accounts) the Fair Work (Registered Organisation) Act 2009 and;

e) The Association only consists of one reporting unit therefore the issue of consistency of financial reporting between the branches of an Association does not arise.

f) No information has been sought in any request of a member of the Association or a register duly made Fair Work (Registered Organisation) Act 2009; and

g) No orders for inspection of financial statements have been made by the Fair Work Australia under section 273 of Fair Work (Registered Organisation) Act 2009.

____________________________ __________________________

President-Phil Storey Treasurer-Graham Kemp


AUDIT REPORT

Tel: +61 8 8981 7066 72 Cavenagh St

Fax: +61 8 8981 7493 Darwin NT 0800

www.bdo.com.au GPO Box 4640

Darwin NT 0801

INDEPENDENT AUDITOR’S REPORT

To the members of Master Builders Association Northern Territory Incorporated.

Report on the Financial Statements

We have audited the accompanying financial statements of Master Builders Association Northern Territory Incorporated, which comprises the statement of financial position as at 30 June 2012, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and the statement of management committee.

Management Committee’s Responsibility for the Financial Report

The Management Committee are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards, Northern Territory Associations Act and the Fair Work (Registered Organisations) Act 2009, and for such internal control as the Management Committee determine is necessary to enable the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Management Committee, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.


AUDIT REPORT

Independence

In conducting our audit, we have complied with the independence requirements of the Australian professional accounting bodies.

Opinion

In our opinion, the financial report presents fairly, in all material respects, the financial position of Master Builders Association Northern Territory Incorporated as at 30 June 2012, and its financial performance and cash flows for the year then ended in accordance with Australian Accounting Standards, Northern Territory Associations Act and the Fair Work (Registered Organisations) Act 2009.

BDO Audit (NT)

C J Sciacca

Audit Partner

Darwin: 18 September 2012

BDO Audit (NT) ABN 98 944 751 649

BDO is the brand name for the BDO International network and for each of the BDO Member Firms. BDO in Australia is a national association of separate entities. Liability of each entity is limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees.


STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED

30 JUNE 2012

Note 2012 2011

$ $

Revenues 2 1,779,929 1,253,947

Expenses

Affiliations 82,212 76,763

Audit fees 3 6,000 6,747

Depreciation 7,059 9,137

Financial Services 22,002 41,589

Impairment - 45,040

Marketing, functions and events costs 213,442 182,054

Office administration 86,070 131,121

Product and services 51,453 56,178

Property costs 100,892 55,070

Sundry expenses 13,414 1,090

Training and projects costs 145,850 132,363

Travel and accommodation 47,779 31,984

Wages and salaries 589,760 538,761

Total Expenses 1,365,933 1,307,897

Surplus / (Deficit) For The Year 413,996 (53,950)

Other comprehensive income - -

Total Comprehensive Income/ (Loss) 413,996 (53,950)

The Statement of Comprehensive Income should be read in conjunction with the accompanying notes


STATEMENT OF FINANCIAL POSITIONAS AT

30 JUNE 2012

Note 2012 2011

$ $

ASSETS

Current Assets

Cash and cash equivalents 4 498,531 182,821

Trade and other receivables 5 74,406 170,778

Inventory 6 18,444 8,073

Other assets 7 120,000 74,960

Total Current Assets 711,381 436,632

Non-Current Assets

Property and equipment 8 56,965 22,594

Total Non-Current Assets 56,965 22,594

Total Assets 768,346 459,226

LIABILITIES

Current Liabilities

Trade and other payables 9 40,642 190,619

Grant liabilities 10 68,665 50,431

Provisions 11 57,240 30,373

Total Current Liabilities 166,547 271,423

Total Liabilities 166,547 271,423

NET ASSETS 601,799 187,803

EQUITY

Accumulated funds 12 601,799 187,803

Total Equity 601,799 187,803

The Statement of Financial Position should be read in conjunction with the accompanying notes


STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED

30 JUNE 2012

Funds Reserves Total

$ $ $

Accumulated Funds

Balance at 30 June 2010 241,753 - 241,753

Surplus/(Deficit) for the year (53,950) - (53,950)

Other Comprehensive

Income for the Year - - -

Balance at 30 June 2011 187,803 - 187,803

Surplus/(Deficit) for the year 413,996 - -

Other Comprehensive

Income for the year - - -

Balance at 30 June 2012 601,799 - 601,799

The Statement of Changes in Equity should be read in conjunction with the accompanying notes


STATEMENT OF CASH FLOWSFOR THE YEAR ENDED

30 JUNE 2012

Note 2012 2011

$ $

Cash flow from operating activities

Cash receipts in the course of operations 1,789,494 1,422,368

Cash payments in the course of operations (1,336,426) (1,455,247)

Net cash provided by / (used in) operating activities 13(b) 453,068 (32,879)

Cash flow from investing activities

Payment for property, plant and equipment (41,430) -

Net cash outflow from investing activities (41,030) -

Cash flow from financing activities

Payment for purchase of shares - (30,235)

Net cash outflow from financing activities - (30,235)

Net increase / (decrease) in cash held 411,638 (63,114)

Cash and cash equivalents at the beginning of the financial year 86,893 150,007

Cash and cash equivalents at the end of the financial year 13(a) 498,531 86,893

The Statement of Cash Flows should be read in conjunction with the accompanying notes


NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED

30 JUNE 2012

1. SUMMARY OF ACCOUNTING POLICIESBasis of PreparationThe financial statements are a general purpose financial statements which have been prepared inaccordance with Australian Accounting Standards, other authoritative pronouncements of theAustralian Accounting Standards Board and complies with the Fair Work (Registered Organisations)Act 2009.The financial statements have also been prepared on a historical basis and do not take into accountchanging money values or, except where specifically stated, current valuations of non-currentassets. The concept of accrual accounting has been adopted in the preparation of the financialstatements. The accounting policies have been consistently applied, unless otherwise stated.

Significant Accounting PoliciesAccounting policies are selected and applied in a manner which ensures that the resulting financialinformation satisfies the concepts of relevance and reliability, thereby ensuring that the substanceof the underlying transaction or other event is reported.

The following significant accounting policies have been adopted in the preparation and presentationof the financial statements:

(a) Going Concern BasisThe financial statements are prepared on a going concern basis.

(b) New, revised or amending Accounting Standards and Interpretations adoptedThe Association has adopted all of the new, revised or amending Accounting Standards andInterpretations issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory forthe current reporting period.Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatoryhave not been early adopted.Any significant impact on the accounting policies of the Association from the adoption of theseAccounting Standards and Interpretations are disclosed in the relevant accounting policy. Theadoption of these Accounting Standards and Interpretations did not have any significant impact onthe financial performance or position of the Association.

The following Accounting Standards and Interpretations are most relevant to the Association:AASB 2010-5 Amendments to Australian Accounting Standards

The Association has applied AASB 2010-5 amendments from 1 July 2011. The amendments made numerous editorial amendments to a range of Australian Accounting Standards and Interpretations,including amendments to reflect changes made to the text of International Financial ReportingStandards by the International Accounting Standards Board.



30 JUNE 2012

AASB 124 Related Party Disclosures (December 2009)

The Standards amend the requirements of the previous version of AASB 124 to clarify the definitionof a related party, provide a partial exemption from related party disclosure requirements forgovernment-related entities and include an explicit requirement to disclose commitments involvingrelated parties. This Standards does not impact the financial statements.AASB 1054 Australian Additional DisclosuresThe Association has applied AASB 1054 from 1 July 2011. The standard sets out the Australian-specific disclosures as a result of Phase I of the Trans-Tasman Convergence Project, which are inaddition to International Financial Reporting Standards, for entities that have adopted AustralianAccounting Standards.AASB 2011-1 Amendments to Australian Accounting Standards arising from the Trans-TasmanConvergence ProjectThe Association has applied AASB 2011-1 amendments from 1 July 2011. These amendments madechanges to a range of Australian Accounting Standards and Interpretations for the purpose of closeralignment to International Financial Reporting Standards (‘IFRSs’) and harmonisation betweenAustralian and New Zealand Standards. The amendments removed certain guidance and definitionsfrom Australian Accounting Standards for conformity of drafting with IFRSs but without anyintention to change requirements.

AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the AnnualImprovements Project [AASB 1, 7, 101 & 134 and Interpretation 13]The Standard amends a number of pronouncements as a result of the IASB's 2008-2010 cycle ofannual improvements. Key amendments include clarification of content of statement of changes inequity (AASB 101) and financial instrument disclosures (AASB 7). The Standard does not impact thefinancial statements.(c) PayablesTrade payables and other accounts payables are recognised when the Association becomes obligedto make future payments resulting from the purchase of goods and services.(d) Goods and Services TaxRevenues, expenses and assets are recognised net of Goods and Service Tax (GST) except whereGST incurred on a purchase of goods and services is not recoverable from the taxation authority, inwhich case the GST is recognised as part of the cost of acquisition of the asset or as part of theexpense item.Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables orpayables in the statement of financial position.(e) Income TaxThe Association is exempt from Income Tax under section 50-5 of the Income Tax Assessment Act 1997.



30 JUNE 2012

(f) ReceivablesTrade receivables are recognised at original invoice amounts less an allowance for uncollectibleamounts and have repayment terms between 30 and 90 days. Collectability of trade receivables isassessed on an ongoing basis. Debts which are known to be uncollectible are written off. Anallowance is made for doubtful debts where there is objective evidence that the Association willnot be able to collect all amounts due according to the original terms. Objective evidence ofimpairment include financial difficulties of the debtor, default payments or debts more than 60days overdue. On confirmation that the trade receivable will not be collectible the gross carryingvalue of the asset is written off against the associated provision.

(g) Property and EquipmentAll property and equipment is stated at historical cost, including costs directly attributable tobringing the asset to the location and condition necessary for it to be capable of operating in themanner intended by management, less depreciation and any impairments.Depreciation on other assets is calculated on a diminishing value basis over the estimated useful lifeof the asset as follows:Motor vehicles 5 yearsOffice equipment 3-8 yearsFurniture and fittings 3-8 years

(h) Employee Benefit Provisions

Wages and Salaries and Annual LeaveLiabilities for wages and salaries, including non-monetary benefits and annual leave expected to besettled within 12 months of balance sheet date are recognised in respect of employees‘ servicesrendered up to balance sheet date and measured at amounts expected to be paid when theliabilities are settled. Liabilities for wages and salaries are included as part of Other Payables andliabilities for annual leave are included as part of Provisions for Employee Entitlements.

(i) Revenue Recognition

(I) GrantsGrants are recognised at their fair value where there is reasonable assurance that the grant will bereceived and the Association will comply with all the attached conditions. Grants relating to costsare deferred and recognised in the Statement of Comprehensive Income over the period necessaryto match them with the costs that they are intended to compensate. (II) SubscriptionsRevenue from subscriptions is recognised in the period to which it relates.

(j) Financial Instruments Recognition

Financial instruments are initially measured at cost on trade date, which includes transaction costs,when the related contractual rights and obligations exist. Subsequent to initial recognition theseinstruments are measured as set out below:



30 JUNE 2012

Financial Instruments - continued...

Financial AssetsLoans and ReceivablesLoans and receivables are non-derivative financial assets with fixed or determinable payments thatare not quoted in an active market and are stated at amortised cost using the effective interestrate method.

Financial LiabilitiesNon-derivative financial liabilities, including loans and borrowings, are recognised at amortisedcost, comprising original debt less principal payments and amortisation.

Derecognition of financial assetsThe Association derecognises a financial asset only when the contractual rights to the cash flowsfrom the asset expire, or when it transfers the financial asset and substantially all the risks andrewards of ownership of the asset to another entity. If the Association neither transfers nor retainssubstantially all the risks and rewards of ownership and continues to control the transferred asset,it recognises its retained interest in the asset and an associated liability for amounts it may have topay. If the Association retains substantially all the risks and rewards of ownership of a transferredfinancial asset, it continues to recognise the financial asset and also recognises a collateralisedborrowing for the proceeds received.

On de-recognition of a financial asset in its entirety, the difference between the asset's carryingamount and the sum of the consideration received and receivable and the cumulative gain or lossthat had been recognised in other comprehensive income and accumulated in equity is recognised inprofit or loss.

ImpairmentAt the end of each reporting period the Association assesses whether there is any indication thatindividual assets are impaired. Where impairment indicators exist, recoverable amount isdetermined and impairment losses are recognised in profit or loss where the asset‘s carrying valueexceeds its recoverable amount. Recoverable amount is the higher of an asset's fair value less coststo sell and value in use. For the purpose of assessing value in use, the estimated future cash flowsare discounted to their present value using a pre-tax discount rate that reflects current marketassessments of the time value of money and the risks specific to the asset.

(k) Critical Accounting Estimates and JudgementsThe preparation of financial statements in conformity with accounting standards requires the use ofcertain critical accounting estimates. It also requires management to exercise its judgment in theprocess of applying the Association's accounting policies.

Estimates and AssumptionsThe key assumptions concerning the future and other key sources of estimation uncertainty atbalance sheet date that have a significant risk of causing a material adjustment to the carryingamounts of assets and liabilities within the next financial year are discussed below:



30 JUNE 2012

(k) Critical Accounting Estimates and Judgements - continued

Impairment of non-financial assetsThe Association assess impairment at each reporting date by evaluating conditions specific to theentity that may lead to impairment of assets. When an impairment trigger exists, the recoverableamount of the asset is determined.No impairment has been recognised in respect of property, plant and equipment for the year ended30 June 2012.

Estimation of useful lives of assetsThe Association determines the estimated useful lives and related depreciation and amortisationcharges for its property, plant and equipment and finite life intangible assets. The useful lives couldchange significantly as a result of technical innovations or some other event. The depreciation andamortisation charge will increase where the useful lives are less than previously estimated lives, ortechnically obsolete or non-strategic assets that have been abandoned or sold will be written off orwritten down.

(l) Accounting Standards Issued But Not Yet EffectiveCertain new accounting standards, amendments and interpretations have been published that arenot mandatory for 30 June 2012 reporting periods. The Committee Members‘ assessment of theimpact of these new standards, amendments and interpretations are set out below.

(I) AASB 9 Financial Instruments, Amends the requirements for classification and measurement offinancial assets.Effective for annual reporting period beginning on or after 1 January 2015.This standard introduces new classification and measurement models for financial assets, using asingle approach to determine whether a financial asset is measured at amortised cost or fair value.To be classified and measured at amortised cost, assets must satisfy the business model test formanaging the financial assets and have certain contractual cash flow characteristics. All otherfinancial instrument assets are to be classified and measured at fair value. The incorporatedassociation will adopt this standard from 1 July 2013 but the impact of its adoption is yet to beassessed by the association.

(II) AASB 13 Fair Value Measurement

Effective for annual reporting period beginning on or after 1 January 2013.The standard provides a single robust measurement framework, with clear measurement objectives,for measuring fair value using the ‘exit price’ and it provides guidance on measuring fair value whena market becomes less active. The ‘highest and best use‘ approach would be used to measure assetswhereas liabilities would be based on transfer value. As the standard does not introduce any newrequirements for the use of fair value, its impact on adoption by the association from 1 July 2013 should be minimal, although there will be increased disclosures where fair value is used.



30 JUNE 2012

(III) AASB 119 Employee Benefits

Effective for annual reporting period beginning on or after 1 January 2013.The Association currently calculates its liability for annual leave employee benefits on the basisthat it is due to be settled within 12 months of the end of the reporting period because employeesare entitled to use this leave at any time. The amendments to AASB 119 require that such liabilitiesbe calculated on the basis of when the leave is expected to be taken, i.e. expected settlement.When this standard is first adopted for 30 June Z014 year end, annual leave liabilities will berecalculated on 1 July 2012. Leave liabilities for any employees with significant balances of leaveoutstanding who are not expected to take their leave within 12 months will be discounted, whichmay result in a reduction of the annual leave liabilities recognised on 1 July 2012, and acorresponding increase in retained earnings at that date.

(IV) AASB 2011-9 Amendments to Australian Accounting Standards - Presentation of Items of OtherComprehensive Income

These amendments are applicable to annual reporting periods beginning on or after 1 July 2012.The amendments requires grouping together of items within other comprehensive income on thebasis of whether they will eventually be ‘recycled’ to the profit or loss (reclassificationadjustments). The change provides clarity about the nature of items presented as othercomprehensive income and the related tax presentation. The adoption of the revised standard from1 July 2012 will impact the association's presentation of its statement of comprehensive income.



30 JUNE 2012

2012 2011 $ $2 Revenue Training and projects 244,622 444,545Membership and subscriptions 301,104 264,782Marketing, functions and events 198,404 169,558Government grants 742,400 25,000MBANT services 60,275 59,805Commission MBAIS 47,377 30,235Interest and finance 18,967 19,395HR/IR 67,837 13,269 MBA Insurance Service 38,096 25,657Miscellaneous income 60,847 1,701Total Revenue 1,779,929 1,253,947

3 Auditors’ RemunerationAudit services 6,000 6,747 Accounting services - - 6,000 6,7474 Cash and cash equivalentsCash deposits with banks 498,031 182,321Cash on hand 500 500Total cash and cash equivalents 498,531 182,821 5 Trade and other receivablesTrade receivables 53,337 161,287Provision for doubtful debts - -Goods and services tax 21,069 9,491Total receivables 74,406 170,778

Age analysis of trade and other receivables that are past due but not impaired at the end of thereporting period.

Past due [O-30] days 28,176 138,475Past due [31-60] days 7,320 5,593Past due [61-90] days 1,840 907Past due [>91] days 16,001 16,312 53,337 161,287Analysis of allowance accountOpening Balance - 740Provisions for doubtful receivables - (740)Receivables written off during the year - - Closing balance - -



30 JUNE 2012

2012 2011 $ $6 InventoryStandards and contracts 18,444 8,073Total inventory 18,444 8.073

7 Other assetsShares in MBA Insurance Services Pty Ltd Shares at cost 120,000 120,000 120,000Less: Impairment - (45,040)Total other assets 120,000 74,960

The investment in MBA Insurance Services Pty Ltd had been impaired to reflect the net asset valueof MBA Insurance Services Pty Ltd.

8 Property and equipmentMotor vehicles 40,314 24,663Less accumulated depreciation (14,266) (10,800)Total motor vehicles 26,048 13,863

Furniture and fixtures 29,951 22,322Less accumulated depreciation (18,100) (16,895)Total furniture and fixtures 11,851 5,427

Office machines 44,224 26,074Less accumulated depreciation (25,158) (22,770)Total office machinesTotal property and equipment 56,965 22,594

ReconciliationCarrying value at beginning of the year 22,594 31,731Additions 41,430 -Disposals - -Depreciation (7,059) (9,137)Carrying value at end of year 56,965 22,594

9 Trade and other payablesTrade creditors 24,879 39,802Bank overdrafts - 95,928Other payables 15,763 15,124Loan from MBA Insurance Services Pty Ltd - 39,765Total trade and other payables 40,642 190,619



30 JUNE 2012

2012 2011 $ $10 Grant liabilitiesNorthern Territory Government OHS Subbies Pack - 10,431Northern Territory Government OHS - 40,000NT Government Workforce Planning Needs 8,665 -Northern Territory Government ConstructionApprenticeship Mentoring Scheme (CAMS) 60,000 - Total grant liabilities 68,665 50,431

11 ProvisionsProvision for annual leave 57,240 30,373Total provision for annual leave 57,240 30,373

12 Accumulated fundsBalance at the beginning of the financial year 187,803 241,753Total comprehensive income (loss) 413,996 (53,950)Balance at the end of the financial year 601,799 187,803

13 Reconciliation of cash and cash equivalentsCash and cash equivalents at the end of the financial year as shown in the Statement of Cash flowsis reconciled to the related items in the Statement of Financial Position as follows:

(a) Reconciliation of cash and cash equivalents

Cash deposits with banks 498,031 182,321Cash on hand 500 -Bank overdrafts (95,928)Balance at the end of the year 498,531 86,893



30 JUNE 2012

2012 2011 $ $ 13 Reconciliation of cash and cash equivalents - continued (b) Reconciliation of profit from ordinary activities to net cash provided by operating activities Profit from ordinary activities 413,996 (53,950)Add / (less) non-cash itemsDepreciation 7,059 9,137Impairment (45,040) 45,040Net cash provided by operating activities before changein assets and liabilities 376,015 227

Change in assets and liabilities(Increase) / decrease in trade and other receivables 96,371 122,149(Increase) / decrease in inventories (10,371) 1,232(Decrease) / increase in trade and other payable: (54,059) (274)(Decrease) / increase in provisions 26,867 (1,213)(Decrease) / increase in unexpended grants 18,235 (155,000)Net cash provided by / (used in) operating activities 453,068 (32,879)

14 Related Party Disclosures

(A) Transactions with Related PartiesThe following persons held positions Committee during the reporting period:

Committee Members:-

Phil Storey Dick Guit

Paul Nowland Clive Clements

Greg McLaughlin John Brears

Sandy Kirsopp Charles Wright

David Lester Richard Reidel

Roger Pearson Kevin Peters

Andrea Moriarty Leanne Kison

Russell Lutzke Claire Forsyth

Ken Hyde



30 JUNE 2012

2012 2011 $ $14 Related Party Disclosures - continued

(b) Balances with Related Parties

(I) Amounts Payable to Related Parties

Key Management PersonnelGraham Kemp -

Other Branches - CurrentMaster Builders Association of NSW Pty Ltd 220 911Master Builders Association Victoria 545 -Master Builders Australia Incorporated - 14,071MBA Insurance Services Pty Ltd - -North Australian Insurance Brokers - (8,417) 765 23,399

Outstanding payables are non-interest bearing and are normally on a 30 day terms.

(II) Amounts Receivable from Related PartiesOther Branches – Current

MBA Insurance Services Pty Ltd 2,400 7,632

Outstanding receivables are unsecured, interest free, settlement occurs in cash and generally have 30 day terms.The following transactions took place with related parties during the reporting period:

Key Management PersonnelGraham Kemp - 20,292Other Branches - -Master Builders - Newcastle - -Master Builders - NSW - 152,745Master Builders Association of WA - 845Master Builders Association (Qld) - 6,195Master Builders Association of NSW Pty Ltd - -Master Builders Association Victoria - -Master Builders Australia Incorporated - 75,841MBA Insurance Services Pty Ltd - 36,692 0 278,205



30 JUNE 2012

2012 2011 $ $14 Related Party Disclosures - continued

Key Management Personnel CompensationKey Management Compensation InformationShort term employee benefits 279,179 250,429Other benefits 37,718 22,539 316,897 272,968

Other Transactions with Key Management Personnel

The General Manager Operations purchased a vehicle from the association that was on an operatinglease, for $6,000.

15 Compliance with Fair Work (Registered Organisations) Act 2009

272 Information to be provided to members or General Manager

(1) A member of a reporting unit, or the General Manager, may apply to the reporting unit for specified prescribed information in relation to the reporting unit to be made available to the person making the application.

(2) The application must be in writing and must specify the period within which, and the manner in which, the information is to be made available. The period must not be less than 14 days after the application is given to the reporting unit.

(3) A reporting unit must comply with an application made under subsection (1).

CONTINGENT LIABILITIES Nil Nil

17 EVENTS SUBSEQUENT TO END OF REPORTING DATE

No matters have arisen since the end of the financial year which have significantly affected or maysignificantly affect the operations, results of operations and the state of affairs of the Associationin subsequent financial years.

The carrying amount of assets and liabilities as recorded in the financial statements and therealisation and settlement amounts of assets and liabilities have not changed materially since endof reporting date.


NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

30 JUNE 2012

18 FINANCIAL RISK MANAGEMENT(a) General objectives, policies and processes.In common with all other businesses, the Association is exposed to risks that arise from its use of financial instruments. This note describes the Association's objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements.

There have been no substantive changes in the Association's exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note.The Association hold the following financial instruments: 2012 2011 $ $Financial assetsCash and cash equivalents 498,531 182,821Trade and other receivables 74,406 170,773 572,937 353,599Financial liabilitiesTrade and other payables 40,642 190,619Unexpended grants 68,665 50,431 109,307 241,050

The Committee Members has overall responsibility for the determination of risk management objectives and policies and, whilst retaining ultimate responsibility for them, they have delegated the authority for designing and operating processes that ensure the effective implementation of the objectives and policies to the management team. The Associations risk management policies and objectives are therefore designed to minimise the potential impacts of these risks on the resultsof the Association where such impacts may be material. The Committee Members receives monthly reports from management through which they review the effectiveness of the processes put in place and the appropriateness of the objectives and policies set.

The overall objective of the Committee Members is to set polices that seek to reduce risk as far as possible without unduly affecting the Association’s flexibility. Further details regarding these policies are set out below:

(b) Credit RiskCredit risk is the risk that the other party to a financial instrument will fail to discharge their obligation resulting in the Association incurring a financial loss. Credit risk arises from cash assets and deposits with financial institutions, as well as credit exposures to the Association’s outstanding receivables and committed transactions. For banks and financial institutions, only independently rated parties with a minimum rating of “A” are accepted.

The maximum exposure to credit risk at the end of the reporting period is as follows:

Cash and cash equivalents 498,531 182,821Trade and other receivables 74,406 170,778 572,937 353,599


NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

30 JUNE 2012

c) Liquidity risk

Maturity Analysis - 2012

Carrying Contractual <6 mths 6-12 mths 1-3 yrs >3 yrsFinancial Liabilities Amount Cash Flows $ $ $ $ $ $

Trade & other payables 40,642 40,642 40,642 - - -Grant Liabilities 68,665 68,665 68,665 TOTAL 109,307 109,307 109,307 - - -

Financial AssetsNon-derivativesTrade receivables 53,337 53,337 53,337Other receivables 21,069 21,069 21,069TOTAL 74,406 74,406 74,406

(c) Liquidity risk

Maturity Analysis - 2011


Trade & other payables 190,619 190,619 190,619Grant Liabilities 50,431 50,431 50,431TOTAL 241,050 241,050 241,050


Non-derivativesTrade receivables 161,287 161,287 161,287Other receivables 9,491 9,491 9,491TOTAL 170,778 170,778 170,778

MASTER BUILDERSNORTHERN TERRITORY

2011 / 2012Annual Report

Prepared for the Annual General Meeting of Friday 28th September 2012

Master Builders Association of the Northern Territory Incorporated acknowledges the support of the Northern Territory Government in the Association’s Training, Marketing and Governance enterprises.

It has made a difference!

incorporating

P: (08) 8922 9666 F: (08) 8922 9600

E: [email protected] W: www.mbant.com.au

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Master Builders NT 2012 Annual Report

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