-15 ANNUAL 14 20 REPORT - VTIC · 2015-10-20 · 6 VTI LIMITED ANNUAL REPORT 2014/2015 VTI LIMITED 2014-15 ANNUAL REPORT The Visitor Economy has been declared the seventh pillar of

ANNUALREPORT20

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YOUR BUSINESS | YOUR INDUSTRY | YOUR PEOPLE

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VICTORIAN TOURISM INDUSTRY LIMITED ABN 85 152 248 541

VTI LIMITED

VTI LIMITED ANNUAL REPORTYear Ended 30 June 2015

Victorian Tourism Industry LimitedABN 85 152 248 541

150 Collins Street, Melbourne, VIC 3000Tel: 03 8662 5425 | Fax: 03 8662 5449Email: [email protected] | www.vtic.com.au

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Contents

Chair’s Message 5

Chief Executive’s Operating Report 7

Directors’ Report 11

Auditor’s Independence Declaration 14

Statement of Comprehensive Income 15

Statement of Financial Position 16

Statement of Changes in Equity 17

Statement of Cash Flows 18

Notes to the Financial Statements 19

Directors’ Declaration 26

Independent Auditor’s Report 27

Acknowledgments 30

All cover images courtesy Tourism Victoria

Photographer: Robyn Lea

International visitors 14/15:

Melbourne 11.3% Regional Victoria 7.3% National 7%

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VTI LIMITED

It has been a hugely successful year overall for the tourism and events sector, with many of Victoria’s attractions enjoying record visitation numbers. For the year ending June 2015, Melbourne and regional Victoria experienced increases in international visitation of 11.3% and 7.3% respectively compared to the national average of 7%. In terms of domestic visitation, the results were also positive, with Melbourne attracting a 7.2% increase in visitors and regional Victoria experiencing a 3.5% increase in visitation compared to the national average of 5.2%. The domestic results for regional Victoria, though positive, highlight that there is still an opportunity to increase the level of regional dispersal from Melbourne.

The tourism and events industry is an essential part of Victoria’s economy. It has a history of growth and the potential to continue on this trajectory, realising significant job creation in the future.

The State Government’s Victorian Visitor Economy Review brought under scrutiny this sector of the economy that has been traditionally hard to define. Victoria Tourism Industry Council (VITIC) has been the driving force behind advocating for improved alignment and collaboration between government and the tourism and events sector, with the aim of better leveraging, branding and economic benefits.

We believe this review will provide renewed focus for the industry and closer collaboration between the whole of government and all parts of our sector.

On behalf of the VTIC Board I applaud the efforts of Dianne Smith and her team in providing a comprehensive industry submission to the review, which the government has taken very seriously. I’d also like to thank Minister John Eren, Sir Rod Eddington, Nick Foa and the Review Panel for an inclusive process.

In addition to the Visitor Economy Review, the VTIC events offering continues to go from strength to strength. Industry responded extremely well to the 2014 Victorian Tourism Conference in Geelong, which reinforced the value of the sector to the State Government, which was very pleasing.

VTIC works within several policy committees across the industry segments of Accommodation, Attractions, Destinations, Tours & Transport, Events, and Tourism Services and Hospitality, and I’d like to thank these committee members for their time in addressing issues that are creating challenges for the industry. These committees are responsible for improving the operating environment for the sector as a whole. VTIC has now streamlined the policy committee nomination process, making it easier to be involved and more representative across the segments.

I also acknowledge Victorian Employers’ Chamber of Commerce and Industry Chief Executive Mark Stone; VTIC’s ongoing relationship with Victorian Employers’ Chamber of Commerce and Industry has strengthened over time and we look forward to further collaboration into the future.

Likewise, I would like to acknowledge the significant contribution that Tourism Victoria’s outgoing Chief Executive, Leigh Harry, has made to the Victorian tourism industry over the last four years. Leigh was a great supporter of the developing role of VTIC, in particular giving us the opportunity to manage the complete Victorian Tourism Awards program. We are grateful for his strategic advice and professionalism over his time as Chief Executive.

Lastly, I must offer my sincere thanks to each and every one of my colleagues on the VTIC Board for contributing their time, valuable knowledge and support to this organisation.

Jeremy Johnson Chair

CHAIR’S MESSAGE

VTI LIMITED6 ANNUAL REPORT 2014/2015

VTI LIMITED 2014-15 ANNUAL REPORT

The Visitor Economy has been declared the seventh pillar of the Victorian economy, generating 6% (over 200,000) of the State’s jobs.

Photographer: Peter Dunphy

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VTI LIMITED

It has been a year of change and growth for VTIC. Following the state election in November, we have a new government and Minister, and the announcement of imminent changes in government structures.

Encouragingly, the visitor economy has been declared as the seventh pillar of the Victorian economy, and we anticipate that such heightened focus on our sector will assist us to grow and realise benefits for Victorians.

We are proud to represent a growing sector, in which more than 6% of the state’s jobs are created from tourism spending, employing over 200,000 people in local jobs, and generating significant and welcome economic activity.

VTIC continued to provide a united voice for the industry, connected members with government, with each other, and provided services and events to support and develop an increasing number of member businesses (now 685).

AdvocacyAs part of VTIC’s independent advocacy and representation, we pushed for and are delighted with announcements such as the Melbourne Convention and Exhibition Centre expansion, free Central Business District trams, the widening of the Tullamarine Freeway and a commitment to refurbish Flinders Street Station and State Library’s Queen’s Hall. We also welcomed news of upgrades at the Melbourne Museum, Sovereign Hill, the RACV Cape Schanck Resort, as well as the creation of the Grampians Peaks Trail and new hotels for Melbourne, Marysville, and Bendigo.

We’re pleased that the Andrews government has adopted several of VTIC’s pre-election recommendations, such as a commitment to an intrastate marketing campaign and an increased level of funding for Victoria’s events across the state.

VTIC has lodged submissions to and had input to several enquiries including to the Victorian Visitor Economy Review (VVE), Federal Workplace Relations Review, and the Short Stay Accommodation Review for Melbourne’s CBD.

In our VVE review submission, we welcomed a whole of government approach to tourism policy; as we are an industry that needs a strong voice in transport, planning, industrial relations and aviation policy across both state and federal levels of government.

We have also been working at a national level with the National Tourism Alliance and a panel to bring reform to the process of claiming back GST on purchases for visitors. Many destinations overseas have streamlined their processes which encourages additional expenditure in-country.

VTIC regards the two new public holidays as largely an added cost for businesses and we shall continue to advocate for a fair operating environment with reduced red tape for planning approvals and expansion of existing business operations.

We were disappointed that a compromise lease agreement could not be achieved for the exciting Point Nepean project, and delays were experienced for tourism projects such as Arthurs Seat Skylift and The Hotel Windsor.

Overall, the organisation’s profile has increased by the number of appearances in a range of media and a tripling of the number of media releases executed this year versus 2013/14. This goes a long way to assisting our advocacy efforts.

EventsBuilding collaboration in the sector provides an important foundation for a sustainable industry. VTIC provided a range of educational and networking forums at which industry was able to connect, learn and network amongst the membership base. During the year, over 1000 operators took part in VTIC-hosted events and forums.

CHIEF EXECUTIVE’S OPERATING REPORT

Confirmed funding to expand the Melbourne Convention and Exhibition Centre is a fantastic win for the State.

VTI LIMITED8


ANNUAL REPORT 2014/2015

CHIEF EXECUTIVE’S OPERATING REPORTCONTINUED

Our major functions included the Victorian Tourism Conference, Geelong; the annual Visitor Information Centre Summit, Lancefield; Victoria Tourism Week featuring the Leadership Dinner at the State Library. This was in addition to our AGM; 2015 Program Launch and Industry Christmas Party in partnership with Destination Melbourne and Melbourne Convention Bureau.

The move to take our annual conference to Geelong was well-received by delegates, and we will seek to hold the conference in a regional destination every second year. Also well received was our new Regional Roadshow series, held in five different locations around the state.

Our hosting of a range of policy driven events such as the Federal Minister round table, and premium member lunches with John Harnden AM and Minister for Trade and Investment Andrew Robb AO MP provided important opportunities to connect directly with influential policy makers.

Industry and Business DevelopmentVTIC also works to support member businesses through a suite of professional development awards and the delivery of fee-for-service contracts contributing to industry development. In 2014-15 VTIC was thrilled to award the Lynette Bergin Tourism Fellowship to Emma Cullen (from Red Rock Leisure); and the Local Government Award to Phoebe Honey (from Destination Gippsland).

Awards are a big part of VTIC’s General Service Agreement with Tourism Victoria. VTIC took complete management control of the Victorian Tourism Awards program, including delivery of the preparatory workshops, mentoring, judging and planning for the gala evening. We also undertake the administration and facilitation of the Victorian Visitor Information Centre (VIC) state-wide Reference Group including delivery of the VIC Summit.

We completed and launched our first on-line training project for industry, “VTIC On-line Learning and Training” (VOLT) comprising three modules: Volunteer Management, Customer Service and Coaching and Leadership.

Over 1,000 operators took part in VTIC-hosted events and forums

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Other fee-for-service contracts delivered included management of Business Events Victoria, Cultural Tourism Victoria, and we continued to support the Young Tourism Network.

In addition, we have been proud to deliver an increasing range of professional support services to members relating to human resources, industrial relations and industry development in conjunction with our highly valued and effective partnership with the Victorian Employers’ Chamber of Commerce and Industry.

Our member numbers grew steadily over the year, largely due to our team engaging well with industry. I acknowledge and thank the whole VTIC team who are energetic, creative and tremendously supportive.

Uniting together the voices of an increasing membership can be a challenge, especially as we have many sources from which to gather information: thank you to those who participated in our policy committees, surveys, and made direct contact through social media.

I also acknowledge the VTIC Board for generously sharing their experience, knowledge and time.

Last but not least, a special thanks to our industry and corporate partners, including Victorian Employers’ Chamber of Commerce and Industry, Tourism Victoria, RACV, the regional tourism boards, the National Tourism Alliance, City of Melbourne, Public Transport Victoria, Parks Victoria, Destination Melbourne, KPMG, Arthur J Gallagher, and Prime 7.

It has been a most rewarding and satisfying year for VTIC. I thank our dedicated members for pledging support in subscriptions and supporting our partners, which enables us to continue to advocate for industry and support a diverse range of wonderful Victorian operators.

Dianne Smith Chief Executive

Image courtesy Destination Gippsland

VTI LIMITED

10 VTI LIMITED


The Directors present this report together with the financial report of Victorian Tourism Industry Limited (the “Company“) for the year ended 30 June 2015 and the Auditor’s Report thereon.

DirectorsThe Directors of the company at any time during or since the end of the financial year are:

NAME, QUALIFICATIONS EXPERIENCE, OTHER DIRECTORSHIPS

Jeremy Johnson Diploma of Business, Local Government Hon. Doctorate (Federation University Australia) Company Secretary

Chairman – Appointed 14 May 2012 CEO, Sovereign Hill Chair, Central Highlands Water Member and Honorary Treasurer, Council of Australasian Museum Directors Board member & Executive Council member, Victorian Employers’ Chamber of Commerce and Industry (VECCI)

Wayne Kayler-ThomsonDiploma of CommerceCertified Practising Accountant (CPA )Fellow Australian Institute of ManagementCompany Secretary

Deputy Chairman/Secretary – Appointed 14 May 2012Director, VicSuper Pty LtdCouncil Member, Victoria UniversityDirector, Wayne Kayler-Thomson Pty LtdFormer CEO, Victorian Employers’ Chamber of Commerce and Industry (VECCI)Former Deputy CEO, Tourism Victoria

Roger GrantBachelor of TeachingBachelor of Physical EducationMaster of Arts

Appointed 14 May 2012 – Retired 12 November 2014Executive Director, Tourism Greater Geelong and the BellarineDirector, Great Southern Touring RoutePanel of Tourism Experts, United Nations World Tourism OrganizationDirector, Geelong Major EventsChairman, Geelong Connected Communities

Laura MilesC Dir, Company Direction MSc, ScienceBSc, Experimental Psychology

Appointed 12 October 2012 – Retired 12 November 2014Executive Director, Museums Australia (Victoria)Board, Arts Industry Council VictoriaBoard, History Council VictoriaBoard, Museum Studies Advisory Group, Deakin University

Matthew NobleAssociate Diploma, Hospitality Management

Appointed 14 May 2012Owner/Director, Australian Wine Tour CompanyFormer Chair, Tourism AllianceFormer Deputy Chair, Backpacker Operators Association of VictoriaFormer Deputy Chair, Yarra Ranges Regional Marketing Limited

DIRECTORS’ REPORTFor the year ended 30 June 2015


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VTI LIMITED

NAME, QUALIFICATIONS EXPERIENCE, OTHER DIRECTORSHIPS

Julian ClarkBA, Bachelor of Commerce

Appointed 14 May 2012CEO, The Lancemore GroupPresident, Accommodation Association of Australia (AAoA)Board, Melbourne Convention Bureau (MCB)

Peter Jones Bachelor of Economics

Appointed 14 May 2012Director, Peter Jones Special EventsChair, Victoria Events Industry CouncilMember of Tourism Australia’s Business Events Advisory Panel

Nicholas HuntBachelor Arts (Hons)Masters Educational Policy (International) Graduate AICD

Appointed 31 October 2013CEO, William Angliss InstituteDirector, Tourism Hospitality Educators international Centre of Excellence (THE-ICE)

Kim FrancisBachelor of Science(Computing) Executive MBA

Appointed 31 October 2013Southern Region Manager, YHA Ltd

Will FlamsteedBachelor Arts (Media), Masters of Wine Marketing

Appointed 12 November 2014Chair, Destinations Policy CommitteeCEO, Grampians Tourism BoardChair, Great Southern Touring RouteMember, Australian Institute of Company Directors

Charles DavidsonBachelor of Commerce (Economics, Law, Marketing)

Appointed 12 November 2014CEO, Founder, Director, Peninsula Hot SpringsDirector, Australasian Wellness Association

Sally CappBachelor of Law (Hons) Bachelor of Commerce Graduate of the Australian Institute of Company Directors

Appointed 31 October 2013 – Resigned 25 March 2015Head of Markets, Victoria, KPMGBoard, Rowing AustraliaBoard, Commonwealth Business CouncilBoard, Faculty of Business and Economics at Melbourne UniversityTrustee of the Mary Jane Lewis Trust Advisory Board Member, Global Foundation.

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VTI LIMITED

DIRECTORS’ REPORT CONTINUED For the year ended 30 June 2015

Directors’ Meetings The number of Directors’ meetings (including meetings of Committees of Directors) attended by each of the Directors of the Company during the financial year are:

NUMBER OF MEETINGS MEETINGS HELD WHILE IN OFFICE ATTENDED

Jeremy Johnson 5 4Wayne Kayler-Thomson 5 3Sally Capp 4 2Julian Clark 5 5Charles Davidson 3 3William Flamsteed 3 3Kim Francis 3 3Roger Grant 2 2Nicholas Hunt 5 3Peter Jones 5 4Laura Miles 2 2Matthew Noble 5 5

Objectives and StrategiesThe Company’s objective as the peak industry body for Victoria’s tourism and events industry is to contribute to the growth and sustainability of the sector. The Company achieves this through implementation of strategies related to professional advocacy, industry membership and representation, industry and professional development events and communications to members, industry and other key stakeholders (a detailed review of these is included in the CEO’s report).

Principal ActivitiesThe principal activities of the Company during the year ended 30 June 2015 comprised professional advocacy for Victoria’s tourism and events industry and membership attraction and retention (a detailed review of these is included in the CEO’s report).


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VTI LIMITED

Key Performance IndicatorsAs at 30 June 2015, the Company had 685 members (2014: 437). Revenue from membership operations for the year ended 30 June 2015 was $470,763 (2014: $393,604).

Membership LiabilityThe company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the company is wound up, the constitution states that each member is required to contribute a maximum of $10.00 each towards meeting any outstanding obligations of the entity. At 30 June 2015, the total amount that members of the company are liable to contribute if the company is wound up is $6,850 (2014: $4,370).

Auditor’s Independence DeclarationThe lead auditor’s independence declaration for the year ended 30 June 2015 has been received and can be found on page 14 of the financial report.

Signed: Jeremy Johnson Chairman At Melbourne 14 October 2015

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VTI LIMITED ANNUAL REPORT 2014/2015

ShineWing Australia ABN 39 533 589 331. Liability limited by a scheme approved under Professional Standards Legislation. ShineWing Australia is an independent member of ShineWing International Limited – members in principal cities throughout the world.

AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF VICTORIAN TOURISM INDUSTRY LIMITED I declare that, to the best of my knowledge and belief, during the year ended 30 June 2015, there have been: (i) no contraventions of the auditor independence requirements as set out in the Corporations Act

2001 in relation to the audit, and

(ii) no contraventions of any applicable code of professional conduct in relation to the audit.

ShineWing Australia (formerly Moore Stephens) Chartered Accountants

Hayley Underwood Partner Melbourne, 14 October 2015

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VTI LIMITED

Note2015

$2014

$

Membership revenue 470,763 393,604

Consulting revenue 190,000 200,000

Grants revenue 343,242 274,676

Other revenue 3 357,533 151,670

Total income 1,361,538 1,019,950

General service agreement expense 2 1,288,486 969,501

Operating expenses 130,551 145,741

Grants expense 18,996 25,563

Other administration expenses 11,711 18,267

Total expenses 1,449,744 1,159,072

Current year deficit before income tax (88,206) (139,122)

Income tax expense – –

Net current year deficit (88,206) (139,122)

Other comprehensive income – –

Net current year deficit attributable to members (88,206) (139,122)

Total comprehensive deficit attributable to members (88,206) (139,122)

The above statement of profit & loss and other comprehensive income should be read in conjunction with the accompanying notes.

STATEMENT OF PROFIT & LOSS AND OTHER COMPREHENSIVE INCOMEFor the year ended 30 June 2015

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VTI LIMITED

STATEMENT OF FINANCIAL POSITIONAs at 30 June 2015

Note2015

$2014

$

ASSETSCurrent assets

Cash and cash equivalents 188,071 343,702

Trade and other receivables 5 357,827 366,895

Financial assets 10 401,617 504,725

Total current assets 947,515 1,215,322

Total assets 947,515 1,215,322

LIABILITIESCurrent liabilities

Trade and other payables 6 186,364 422,847

Deferred revenue 7 512,107 455,225

Total current liabilities 698,471 878,072

Total liabilities 698,471 878,072

Net assets 249,044 337,250

Equity

Accumulated losses (240,701) (152,495)

Contributed equity 489,745 489,745

Total Equity 249,044 337,250

The above statement of financial position should be read in conjunction with the accompanying notes.


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VTI LIMITED

STATEMENT OF CHANGES IN EQUITYFor the year ended 30 June 2015

CONTRIBUTED EQUITY

$

ACCUMULATED LOSSES

$

TOTAL

$

BALANCE AT 1 JULY 2014 489,745 (13,373) 489,745

Deficit attributable to members of the entity - (139,122) (152,495)

Balance at 30 June 2014 489,745 (152,495) 337,250

Deficit attributable to members of the entity - (88,206) (88,206)

Balance at 30 June 2015 489,745 (240,701) 249,044

The above statement of changes in equity should be read in conjunction with the accompanying notes.

18 VTI LIMITED


STATEMENT OF CASH FLOWSFor the year ended 30 June 2015


Note2015

$2014

$

Cash Flow from Operating Activities

Receipts from members and others 1,525,693 1,296,785

Payments to suppliers and employees (1,798,467) (1,086,431)

Interest received 14,036 7,093

Net cash generated from operating activities 8 (258,738) 217,447

Cash Flow from Investing Activities

Payments for investments (100,000) (504,725)

Proceeds from sale of investments 203,107 -

Net cash used in investing activities 103,107 (504,725)

Net decrease in cash and cash equivalents held (155,631) (287,278)

Cash and cash equivalents at the beginning of the financial year 343,702 630,980

Cash at the end of the financial year 188,071 343,702

The above statement of cash flows should be read in conjunction with the accompanying notes.

VTI LIMITED 19


Entity informationVictorian Tourism Industry Limited (the “Company”) is a not for profit company limited by guarantee. The Company is governed by the rules set out in its own constitution and the Corporations Act 2001.

Basis of preparationReporting basis and conventions The Company applies Australian Accounting Standards – Reduced Disclosure Requirements as set out in AASB 1053: Application of Tiers of Australian Accounting Standards and AASB 2010–2: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements.

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements of the Australian Accounting Standards Board (“AASB”) and the Corporations Act 2001. The Company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions to which they apply. Material accounting policies adopted in the preparation of this financial report are presented below. They have been consistently applied unless otherwise stated.

The financial report, except for the cashflow information, has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.

The financial statements were authorised for issue on 14 October 2015 by the directors of the company.

a. Cash and cash equivalents Cash and cash equivalents include: cash on hand;

deposits held at call with banks; and other short-term highly liquid investments which are readily convertible to cash and are subject to an insignificant risk of changes in value. Cash and cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment purposes.

b. Financial instruments

Recognition and initial measurement Financial instruments, incorporating financial assets

and financial liabilities, are recognised when the entity becomes a party to the contractual provisions of the instrument. Trade date accounting is adopted for financial assets that are delivered within timeframes established by marketplace convention.

Financial instruments are initially measured at fair value plus transactions costs where the instrument is not classified as at fair value through profit or loss, in which case transaction costs are expensed to profit or loss immediately. Financial instruments are classified and measured as set out below.

Classification and subsequent measurement

(i) FinancialassetsatfairvaluethroughprofitorlossFinancial assets are classified at fair value through profit or loss when they are held for trading for the purpose of short term profit taking, where they are derivatives not held for hedging purposes, or designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Gains and losses arising from changes in fair value are included in profit or loss in the period in which they arise.

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2015

NOTE 1: Entity information and statement of significant accounting policies

VTI LIMITED20


b. Financial instruments (continued)

(ii) Held-to-maturity investments Held-to-maturity investments are non-derivative

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

Held-to-maturity investments are included in non-current assets, except for those which are expected to mature within 12 months after the end of the reporting period. All other investments are classified as current assets.

(iii) Loans and receivables Loans and receivables are non-derivative financial

assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost using the effective interest rate method.

Loans and receivables are included in current assets, except for those which are not expected to mature within 12 months after the end of the reporting period. All other loans and receivables are classified as non-current assets.

(iv) Financial liabilities Non-derivative financial liabilities, excluding financial

guarantees, are subsequently measured at amortised cost using the effective interest rate method.

Fair value Fair value is determined based on current bid prices

for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.

Impairment At each reporting date, the Company assesses whether

there is objective evidence that a financial instrument has been impaired. A financial asset or a group of financial assets will be deemed to be impaired if, and only if, there is objective evidence of impairment as a

result of the occurrence of one or more events (a “loss event”), which has an impact on the estimated future cash flows of the financial asset(s).

In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors, or a group of debtors, are experiencing significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter into bankruptcy or other financial reorganisation; and changes in arrears or economic conditions that correlate with defaults.

For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is used to reduce the carrying amount of financial assets impaired by credit losses. After having undertaken all possible measures of recovery, if the management establishes that the carrying amount cannot be recovered by any means, at that point the written-off amounts are charged to the allowance account or the carrying amount of impaired financial assets is reduced directly if no impairment amount was previously recognised in the allowance accounts.

When the terms of financial assets that would otherwise have been past due or impaired have been renegotiated, the company recognises the impairment for such financial assets by taking into account the original terms as if the terms have not been renegotiated so that the loss events that have occurred are duly considered.

Derecognition Financial assets are derecognised where the

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

NOTE 1: Entity information and statement of significant accounting policies (continued)

NOTES TO THE FINANCIAL STATEMENTS CONTINUED For the year ended 30 June 2015


VTI LIMITED 21


NOTE 1: Entity information and statement of significant accounting policies (continued)

c. Trade and other receivables All trade debtors are recognised at the amounts

receivable as they fall due for settlement.

Collectability of trade debtors is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off. A provision for doubtful debts is raised where some doubt as to collection exists.

d. Trade and other payables These amounts represent liabilities for goods and

services provided to the trust prior to the end of the financial year which are unpaid. The amounts are unsecured and usually paid within 30 days of recognition.

e. Goods and services tax Revenues, expenses and assets are recognised net

of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position.

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

f. Income tax

No provision for income tax has been raised as the entity is exempt from income tax under Div 50 of the

Income Tax Assessment Act 1997.

g. Revenue recognition

(i) Membership revenue General Membership Revenue is initially recognised

on receipt of payment from the member. Subsequent to initial recognition, all membership revenue is recognised on an accruals basis over the twelve month period of the paid membership.

(ii) Other revenue Interest revenue is recognised using the effective

interest method. All other items classified as other revenue are recognised on an accruals basis.

All revenue is stated net of the amount of GST.

h. Comparative figures Where required by Accounting Standards, comparative

figures have been adjusted to conform with changes in presentation for the current financial year.

i. Critical accounting estimates and judgments The Directors evaluate estimates and judgments

incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Company. Management are required to exercise judgment in the process of applying accounting policies. In preparing the financial statement the following key judgements were made:

Trade receivables Included in trade receivables at the end of the

reporting period is an amount receivable from customers during the current financial year amounting to $308,982. Management has determined that recoverability of a portion of these debts is uncertain hence a provision for impairment has been made. An assessment of all accounts outstanding for longer than the agreed trading terms has been undertaken.

VTI LIMITED22


NOTE 2: General Service Agreement Expense

Events and sponsorship 330,686 129,209Commissions 9,227 11,376Publications 2,841 3,409Interest received 14,036 7,093Sundry revenue 743 583

357,533 151,670

Deficit has been determined after:

Consultancy fees 112,775 98,194TQUAL product development 1,720 42,680

Trade debtors 308,982 300,928Less: Impairment (2,473) (2,960)

306,509 297,968

GST paid 49,504 66,588Other receivables 1,814 2,339

357,827 366,895

NOTE 3: Other revenue2015

$2014

$

NOTE 4: Deficit2015

$2014

$

NOTE 5: Trade and other receivables2015

$2014

$



A General Service Agreement (“GSA”) exists between the Company and the Victorian Employers’ Chamber of Commerce and Industry (“VECCI”) under which VECCI agrees to provide, and the Company engages VECCI to provide, certain management services (“Services”). The Services cover the performance of tasks necessary for the efficient management of the Company including management and resourcing, membership administration and account management, communications, marketing, policy support, secretariat and finance support.

VTI LIMITED 23


Carrying amount at 30 June 2014 2,960 Charge for the year (487) Amounts written off -

Carrying amount at 30 June 2015 2,473

NOTE 5: Trade and other receivables (continued)

PROVISION FOR IMPAIRMENT OF

RECEIVABLES $

CURRENTUnsecured liabilitiesFinancial liabilities measured at amortised cost:Trade creditors - 789 Accruals 105,774 173,491 GST collected 80,546 88,817 Other payables 44 159,750

186,364 422,847

Deferred membership revenue 219,093 240,698

Deferred events revenue 120,344 108,569

Deferred sponsorship revenue 136,075 49,364

Other deferred revenue 36,595 56,594

512,107 455,225

Deficit after income tax (88,206) (139,122)

Changes in assets and liabilities:

Decrease/(Increase) in receivables and prepayments (158,952) (272,254)

Decrease)/Increase in payables and deferred income (11,580) 628,823

Cash flows generated from operating activities (258,738) 217,447

NOTE 6: Trade and other payables2015

$2014

$

NOTE 7: Deferred revenue2015

$2014

$

NOTE 8: Cash flow information2015

$2014

$

VTI LIMITED24


The Company’s financial instruments consist of deposits with banks, short-term investments in term-deposits and accounts receivable and payable.Financial assets

Cash and cash equivalents 188,071 343,702Trade and other receivables 5 357,340 366,895Financial assets at fair value through profit or loss 401,617 504,725

Total financial assets 947,028 1,215,322

Financial liabilities

Financial liabilities at amortised cost:Trade and other payables 6 186,364 422,847

Total financial liabilities 186,364 422,847

NOTE 10: Fair value measurements

The Company has the following assets, as set out in the table below, that are measured at fair value on a recurring basis after their initial recognition. The Company does not subsequently measure any liabilities at fair value on a recurring basis and has no assets or liabilities that are measured at fair value on a non-recurring basis.

Recurring fair value measurements

Financial assets

- Term deposits held to maturity 401,617 504,725

Total financial assets recognised at fair value 401,617 504,725

NOTE 9: Financial risk management Note2015

$2014

$

2015 $

2014 $




VTI LIMITED 25

NOTE 11: Related party transactions

There were no related party transactions during the reporting period.

NOTE 12: Events after balance date

There are no known events subsequent to the reporting date that are required to be disclosed.

NOTE 13: Company details

The registered office and principal place of business of Victorian Tourism Industry Limited is: 150 Collins StreetMelbourne, Victoria 3000

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DIRECTORS’ DECLARATION

In accordance with a resolution of the directors of Victorian Tourism Industry Limited, the directors of the company declare that:1. The financial statements and notes, as set out on pages 15 to 25 are in accordance with the Corporations Act 2001

and: a. comply with Australian Accounting Standards - Reduced Disclosure requirements; and b. give a true and fair view of the financial position as at 30 June 2015 and of its performance for the year ended on

that date.2. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and

when they become due and payable.

Signed: Jeremy Johnson Chairman At Melbourne 14 October 2015




INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF VICTORIAN TOURISM INDUSTRY LIMITED Report on the Financial Statements We have audited the accompanying financial statements of Victorian Tourism Industry Limited, which comprises the statement of financial position as at 30 June 2015, the statement of profit & loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration. Director’s Responsibility for the Financial Report The directors of the company are responsible for the preparation of the financial statements in accordance with Australian Accounting Standards – Reduced Disclosure Requirements (including the Australian Accounting Interpretations) and the Corporations Act 2001 and for such internal control as management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with Australian Auditing Standards – Reduced Disclosure Requirements. 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 statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial statements 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 management, as well as evaluating the presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Victorian Tourism Industry Limited, would be in the same terms if given to the directors as at the time of the auditor’s report.


INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF VICTORIAN TOURISM INDUSTRY LIMITED Report on the Financial Statements We have audited the accompanying financial statements of Victorian Tourism Industry Limited, which comprises the statement of financial position as at 30 June 2015, the statement of profit & loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration. Director’s Responsibility for the Financial Report The directors of the company are responsible for the preparation of the financial statements in accordance with Australian Accounting Standards – Reduced Disclosure Requirements (including the Australian Accounting Interpretations) and the Corporations Act 2001 and for such internal control as management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with Australian Auditing Standards – Reduced Disclosure Requirements. 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 statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial statements 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 management, as well as evaluating the presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Victorian Tourism Industry Limited, would be in the same terms if given to the directors as at the time of the auditor’s report.

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Auditor’s Opinion In our opinion, the financial report of Victorian Tourism Industry Limited is in accordance with the Corporations Act 2001, including:

i. giving a true and fair view of the company’s financial position as at 30 June 2015 and of its performance for the period ended on that date; and

ii. complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Regulations 2001.

ShineWing Australia (formerly Moore Stephens) Chartered Accountants

Hayley Underwood Partner Melbourne, 19 October 2015

2014/201528 VTI LIMITED ANNUAL REPORT

29


VTI LIMITED

Image courtesy Destination Gippsland

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ACKNOWLEDGMENTS

VTIC acknowledges the support of all members who participated in our Policy Committees, events, and surveys, or who otherwise volunteered their time to assist with VTIC’s activities. The ongoing support and goodwill of individuals and organisations across our membership is greatly appreciated.

We also thank our partners and sponsors over the last twelve months for their support. Their contributions help us to continue to be a united and independent voice for tourism, promoting and developing a professional and sustainable industry across Victoria.

Board DirectorsJeremy Johnson (Chair)Wayne Kayler-Thomson (Deputy Chair, Secretary)Julian Clark (Convenor, Accommodation Policy Committee)Will Flamsteed (Convenor, Destinations Policy Committee)Nicholas Hunt (Convenor, Tourism Services and Hospitality Policy Committee)Peter Jones (Convenor, Victoria Events Industry Council)Charles Davidson (Convenor, Attractions Policy Committee)Matthew Noble (Convenor, Tour and Transport Policy Committee)Kim Francis (Board appointed Director)

Life MembersSteve BairdNola CuddyAndrew DwyerDavid EatonRoger GrantFred HerbertWayne Kayler-ThomsonTony LeeJohn MurphyBarbara NixonMatt NobleTom SmithGraeme StoneyRhonda Rust (dec.)

StaffDianne Smith, Chief ExecutiveIan McDougal, Business Development Manager*Melinda Anderson, Business Development and Operations Manager*Kristina Burke, Policy and Project Manager*Megan Waring-Jones, Policy and Communications Manager*Adrian Byrt, Membership Sales ExecutiveNigel Preston, Events and Marketing CoordinatorChris Porter, Executive Officer – Business Events VictoriaAdeline Keh, Sales Executive – Business Events Victoria*Michael Hamilton, Tourism Project Officer*Ellana Katos, Communications Coordinator*

*Part year only

Documents

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