LOCAL, DIVERSE AND ACCESSIBLE BROADCASTING

LOCAL, DIVERSE AND ACCESSIBLE BROADCASTING

2007 - 2008ANNUAL REPORT

Community Broadcasting Association of Australia LimitedA.C.N. 003 108 030(A Company Limited by Guarantee) For the Financial Year ended 30 June 2008

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Company DetailsStatus of organisation Company limited by guaranteePlace of establishment Alexandria NSW AustraliaFounded 1974Date of Incorporation 27th June 1986ACN Number 003 108 030Address 44-54 Botany Rd Alexandria NSW Australia 2015Telephone 02-9310-2999Fax 02-9319-4545Email [email protected] www.cbaa.org.au

CBAA Board(as at 30th June 2008)

President Deborah Welch - Radio AdelaideV.P. Radio Shane Elson - 3GCR MorwellV.P. Television VacantMembers Adrian Basso - 3PBS Melbourne Stuart Buchanan - 2FBI Sydney Bryce Ives - 3SYN Melbourne John MacInnes - 3WAY Warrnambool Georgia Webster - 3SYN MelbourneCBAA Staff Elected Director Peter Tozer - CBAA

Women’s Rep Natalie Pozdeev - 2RRR RydeYouth Rep Dan Vo 3JOY Melbourne

CBAA Office Staff Details(as at 30th June 2008)

Acting General Manager Craig LiddellBusiness Development Manager Stephen McDermottCommunications Manager Cameron WoodsPolicy Coodination Manager Craig LiddellMarketing and Sponsorship Coordinator Jessie CarterFinance and Administration Coordinator Robin CarterIT Coordinator Andrew Devenish-MearesExecutive Assistant Brigitte DaggAdministration Assistant Danny Chifley

Community Radio NetworkNetwork Services Manager Peter TozerSatellite Operations Co-ordinator Martin WaltersAudio Operations Controller Ben Feggans

CBOnline ProjectCBOnline Content Manager Wendy CoatesCBOnline Assistant Sarah Tracton

AMRAP ProjectAMRAP Producer Brooke Olsen

National Training ProjectActing National Training Manager Louise ClarkeTraining Co-ordinator Lisa LloydAdministration Assistant – Training Laura Ongley

Technical ConsultantCBAA Technical Consultant David Sice

Contents

Presidents Report 2-3

Directors’ Report 4-5

Auditor’s Independence Declaration 6

Income Statement 7

Balance Sheet 7

Statement of Changes in Equity 8

Cash Flow Statement 8

Notes to the Financial Statements 9-17

Directors’ Declaration 18

Audit Report 19-20

Detailed Profit and Loss Statements 21-25

Selected Detailed Project Accounts 26-29

Operational Overview 30

Technical Consultants Report 32

Station Listing 34

The CBAA acknowledges the support of the Community Broadcasting Foundation


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President’s ReportANNUAL REPORT 2007-08It’s a pleasure to present the 2007-08 Annual Report in my first year as CBAA President, having been elected at the November 2007 National Conference. It is a challenging time to be in this role, as the community broadcasting sector faces a complex period in our evolution. Having established ourselves from the 1970s as a key sector in Australia’s broadcast and media landscape, we grew through the 1980s and 1990s to become the main provider of diversity and innovation, allowing hundreds of thousands of people to participate in providing programs and services to their communities.

However, in this century we are facing a growing challenge to our place. As new technologies change and broaden what ‘broadcasting’ means, as new players crowd into the media environment and as government funding support continues to decline in real terms, we need to be able to say why community broadcasting matters, louder and more clearly than ever.

The review of the Community Radio Codes of Practice this year focused our thoughts on the guiding principles of the sector:

Promote harmony and diversity and contribute to an inclusive, cohesive and culturally-diverse Australian communityPursue the principles of democracy, access and equity, especially for people and issues not adequately represented in other mediaEnhance the diversity of programming choices available to the public and present programs that expand the variety of viewpoints broadcast in AustraliaDemonstrate independence in programming as well as in editorial and management decisionsSupport and develop local arts and musicIncrease community involvement in broadcasting

Our guiding principles and core values are critical to making the case for our future. For this reason, it sits at the top of our 5 Strategic Objectives for the period 2008-2011. In this year the Board and staff worked to develop a comprehensive Strategic Plan for the first time in a number of years, backed up by a thorough Operational Plan for the 2008/09 financial year.The broad goals for the CBAA are to:

Promote the values of the community broadcasting sector through practical actionsBuild station capacity by providing quality advice, support, and services for membersAdvance the interests of the sector through policy leadership and advocacyEnhance our communications strategies to raise awareness and knowledge of the sectorIncrease organisational capacity to reflect best practice and facilitate sustainable growth

StaffingThe past year has been eventful at the CBAA. Following three months long-service leave, Barry Melville resigned from his position as General Manager in June 2008 after more than 11 years of service. The CBAA Board and staff would like to thank Barry for his efforts during that time, a period that saw significant growth for both the organisation and the sector as a whole. Sincere thanks must also go to our two Acting General Managers Craig Liddell and David Melzer, who kept the organisation on track and moving forward through this period of transition.

Our General Manager from October 2008 is Michele Bawden, who has worked in voluntary and paid capacities in community broadcasting across three states and territories and on a national level for over 20 years. She has worked in regional, metropolitan, and Indigenous community radio stations, and on numerous national bodies including the CBAA National Committee and the General Grants Advisory Committee (GGAC) of the Community Broadcasting Foundation (CBF). The CBAA is fortunate to have attracted someone with such skills and experience from both within our sector and beyond.

Election CampaignThe Federal Budget in May 2008 had good news and frustrating news, but nothing to assist with the core resource issues we face as community broadcasters. Earlier this year, it became clear that we could only expect funding for promises ‘spoken out loud’ during the Election campaign and the Federal Government kept its word by funding the highly successful Amrap project for another four years. We also have a one-year extension for our National Training Project, which is a credit to our comprehensive lobbying campaign.

ChallengesOn a less happy note, in late February 2008 four of our five community television members left the CBAA to establish a new alliance, leaving C31 Melbourne as our sole licensed community TV member. Since 2002 we’ve had all five CTV stations as members and in that time we have succeeded in getting legislation changed to allow permanent licensing, gained an increase to sponsorship limits, and developed the first CTV Code of Practice.

But we fully understand CTV stations’ frustration at their current position, stranded between analogue and digital broadcasting and without a source of dedicated funding, and wish them well with the difficult challenges they face. As the peak body for community broadcasting the CBAA will continue to advocate for all our community radio and television members.

The situation is no more certain for digital radio. Whilst pre-budget silence upended nine months of intensive work by the CBAA and metropolitan stations, we held our breath for what Minister Conroy had in store in the May 2008 budget. The result is a six month delay in the start date and a twelve-month delay in our funding. These new timelines mean no government funding in the key twelve month run up to the new start-by date of 1 July 2009. This scenario offers new problems to solve.

1.2.3.4.5.6.

1.2.3.4.5.


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2008 Community Radio National Listener SurveyFinal preparations for the launch of the 2008 Community Radio National Listener Survey are well underway. Audience trends over the six-year period since the first survey are very encouraging and reflect strong interest in the sector. The 2006 National Listener Survey revealed that 47% of Australians (7.5 million people aged 15 and over) listened to community radio in an average month – a 7% increase in the total number of people listening for the 2004 survey.

The results of the 2008 survey are typically stronger in most segments of the audience. Weekly listening has increased to 27% – up 2% from the previous survey – and monthly listening is 57%, an increase of 10 percentage points. The empirical evidence of the audiences for community radio stations continues to add strength to the development and growth of Australia’s independent and diverse media sector.

ThanksOur Board has worked strongly throughout the year, supported by a significant number of contributors through CBAA standing and consultative committees. The enormous amount of volunteer time contributed by participants across our sector extends to our sector governance level and is greatly appreciated. Thanks goes to our departing Board members Tim Borgas, Helen Bath, Mel Page and Vice President TV Andrew Brine. From November 2007 we welcomed Adrian Basso and Natalie Pozdeev to the Board and both have been outstanding contributors to date, alongside continuing members Shane Elson (Vice President Radio) John MacInnes, Bryce Ives, Craig Twitt, Stuart Buchanan and Dan Vo.

Finally, I would like to sincerely thank the staff at the CBAA for their thorough work over the past year in training, network services, policy, special projects and administration and CBAA members across the country for their continuing commitment to the values, service and loads of fun that is community broadcasting.

Deborah WelchPRESIDENT


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Directors’ ReportFor the Financial Year ended 30 June 2008Your Directors present their report on the Company for the financial year ended 30 June 2008.

1. The Directors in office at the date of this report are listed below with particulars of qualifications, experience and special responsibilities (if any).

Deborah WelchPresidentBoard Member since 2007Directors Meetings Attended - 2 Directors Meetings Held - 223 years experience in Community BroadcastingBachelor of Arts

Shane ElsonVice-President - RadioBoard Member since 2001Directors Meetings Attended - 4 Directors Meetings Held - 516 years experience in Community BroadcastingBachelor of Arts, Honours (Sociology/Mass Communication)

John MacInnesBoard MemberBoard Member since 2004Directors Meetings Attended - 3 Directors Meetings Held - 5 13 years experience in Community BroadcastingDiploma of Social Science

Bryce IvesBoard MemberBoard Member since 2003Directors Meetings Attended - 5 Directors Meetings Held - 5 11 years experience in Community Broadcasting

Stuart BuchananBoard MemberBoard Member since 2006Directors Meetings Attended - 5 Directors Meetings Held - 5 5 years experience in Community BroadcastingMaster of Arts

Adrian BassoBoard MemberBoard Member since 2007Directors Meetings Attended - 2 Directors Meetings Held - 2 10 years experience in Community BroadcastingBachelor of Accounting

Georgia WebsterBoard MemberBoard Member since 2008Directors Meetings Attended - 0Directors Meetings Held - 05 years experience in Community BroadcastingBachelor of Arts, Honours

Peter TozerBoard MemberBoard Member since 2008Directors Meetings Attended - 0Directors Meetings Held - 0 28 years experience in Community Broadcasting


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Directors’ Reportfor the Financial Year ended 30 June 2008The following Directors ceased to hold office during the year:

No. of Meetings Held

No. of Meetings Attended

Andrew Brine 4 4

Tim Borgas 3 3

Wendy Coates 3 3

Helen Bath 3 2

Ian Laird 2 2

Craig Twitt 5 4

2. The Principal Activities of the Company were that of a national association to support community broadcasting. There were no significant changes in the nature of the Company’s

activities during the year.

3. The net amount of profit of the Company for the financial year after providing $0.00 for income tax was $1,459.90

4. The Company is a non-profit Company and therefore restricted from declaring any dividends. 5. The results of the operations of the Company during the financial year showed that the Company ran at a profit. 6. During the financial year there was no significant change in the state of affairs of the Company.

7. There has not been any matter or circumstances that have arisen since the end of the financial year other than those referred to in the review or Accounts that has significantly affected or may significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in subsequent years.

8. No Director, since the end of the previous financial year has received or has become entitled to receive a benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors shown in the Accounts, or the fixed salary of a full time employee of the Company) by reason of a contract made by the Company or a related corporation with the Director or with a firm of which he is a member or with a Company in which he has a substantial financial interest.

9. In accordance with Section 299(1) of the Corporations Act (2001) it is expected that the Company will continue its operations in line with that of previous years.

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

Director Director

Dated this 29th day of September 2008.


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Auditor’s Independence Declaration to the Directors ofCommunity Broadcasting Association of Australia LimitedFor the Financial Year ended 30 June 2008I declare that, to the best of my knowledge and belief, during the year ended 30 June 2008 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.

Escott AstonChartered Accountants291 Belmore Road David G AstonRiverwood NSW 2210 Partner

Dated this 8th day of August 2008.


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Income Statementfor the Financial Year ended 30 June 2008 Note 2008 2007 $ $

Revenues from Ordinary Activities 2 4,013,992.24 1,307,315.49Membership and Sector Services (890,978.99) 0.00Employee Benefit Expense (1,901,969.64) 0.00Depreciation Expense 3 (31,500.00) (34,816.00)Occupancy Expense (129,782.07) 0.00Other expenses from Ordinary Activities (1,058,301.64) (1,260,964.30)

Profits/(Losses) from ordinary activities before income tax expense 1,459.90 11,535.19

Income tax expense relating to ordinary activities 13 0.00 0.00

Profits/(Losses) from ordinary activities after income tax expense 1,459.90 11,535.19

Net Profits/(Losses) 1,459.90 11,535.19

Note: The Income Statement figures for the 2008-year disclose revenues and expenses from project related activities on a gross basis. In addition more detail has been provided in relation to various categories of activities undertaken during the year.

The 2007 comparative figures disclose only the net revenue received by the Company for undertaking projects.

The Directors are of the opinion that disclosure on a gross basis more accurately reflects the level of activities conducted by the Company.

Balance Sheet as at 30 June 2008 Note 2008 2007 $ $

Current AssetsCash Assets 6 770,779.93 208,451.58Receivables 7 442,845.27 737,831.23Other 8 67,046.24 66,743.38Total Current Assets 1,280,671.44 1,013,026.19

Non-Current AssetsProperty, Plant & Equipment 9 107,326.10 96,220.18Total Non-Current Assets 107,326.10 96,220.18Total Assets 1,387,997.54 1,109,246.37

Current LiabilitiesAccounts Payable 10 1,187,010.59 915,812.08Financial Liabilities 11 4,882.15 11,280.46Provisions 12 58,336.66 77,111.89Total Current Liabilities 1,250,229.40 1,004,204.43

Non-Current LiabilitiesFinancial Liabilities 11 31,266.30 0.00Total Non-Current Liabilities 31,266.30 0.00Total Liabilities 1,281,495.70 1,004,204.43Net Assets 106,501.84 105,041.94

EquityContributed equity 0.00 0.00Retained profits 106,501.84 105,041.94Total Equity 106,501.84 105,041.94


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Statement of Changes in Equity for the Financial Year ended 30 June 2008

Contributed Equity$

RetainedProfits$

Total$

Balance at 1 July 2006 0.00 93,506.75 93,506.75

Profit/(loss) attributable to the Company 0.00 11,535.19 11,535.19

Transfers to and from reserves 0.00 0.00 0.00

Balance at 30 June 2007 0.00 105,041.94 105,041.94

Profit/(loss) attributable to the Company 0.00 1,459.90 1,459.90

Transfers to and from reserves 0.00 0.00 0.00

Balance at 30 June 2008 0.00 106,501.84 106,501.84

Cash Flow Statementfor the Financial Year ended 30 June 2008 Note 2008 2007 $ $

Cash Flows from Operating ActivitiesMembership Fees and Sector Services 1,872,997.44 771,881.57Interest Received 12,239.44 11,141.72Net Project Receipts (153,706.04) (82,644.44)Payment to Suppliers and Employees (3,576,777.13) (1,501,334.24)

(1,845,246.29) (800,955.39)

Cash Flows from GrantsGrants received 2,438,238.09 637,893.52

Net cash provided by operating activities 17(a) 592,991.80 (163,061.87)

Cash Flows from Investing ActivitiesProceeds from sale of plant and equipment 14,454.55 0.00Acquisition of plant and equipment (25,979.65) (17,947.32) Net cash flows from investing activities (11,525.10) (17,947.32)

Cash Flows from Financing Activities

Repayment of borrowings (15,095.38) (6,797.04) Net cash flows from financing activities (15,095.38) (6,797.04)

Net increase/(decrease) in cash held 566,371.32 (187,806.23)

Cash at start of the financial year 263,634.17 451,440.40

Cash at close of the financial year 17(b) 830,005.49 263,634.17

Note: The Cash Flow Statement figures for the 2008-year reflect the cash flows from project related activities on a gross basis. The 2007 comparative figures disclose only the net cash flows received by the Company for undertaking projects. The Directors are of the opinion that disclosure on a gross basis more accurately reflects the level of cash flows received by the Company.


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Notes to and forming part of the Financial StatementsFor the Financial Year ended 30 June 2008

Note 1 - Statement of Accounting Policies

The financial report is a general-purpose financial report that has been prepared in accordance with Accounting Standards, Urgent Issues Group Consensus Views and other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.The financial report is for Community Broadcasting Association of Australia Limited as an individual entity incorporated and domiciled in Australia. Community Broadcasting Association of Australia Limited is a company limited by guarantee.The following is a summary of the material accounting policies adopted by the company in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

Basis of Preparation

Reporting Basis and Conventions

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

Accounting Policies

(a) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses. Plant and Equipment Plant and equipment are measured on the cost basis less depreciation and impairment losses. The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from those assets. The recoverable amount

is assessed on the basis of the expected net cash flows, which will be received from the assets’ employment and subsequent disposal. The expected net cash flows have not been discounted to present values in determining recoverable amounts.

Depreciation The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding freehold lands, are depreciated on a straight line or diminishing value

basis over their useful lives to the Company commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the start of either the unexpired period of the lease or the estimated useful life of the improvement.

The Depreciation rates used for each class of depreciable asset are:

Office Equipment and Furniture 11 - 40% Studio Equipment 11 - 40% Motor Vehicle 22.5% Leasehold Improvements 25.0% The asset’s residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the income statement. When revalued assets

are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. Plant and equipment acquired by way of capital grants have been capitalised and are depreciated in accordance with the above policy. Grant funds received for the acquisition of

the plant and equipment are recorded in the financial statements as a liability “capital grants for equipment”. These grant funds are recognised as income over the useful life of the plant and equipment.

(b) Leases

Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership, are transferred to entities in the economic entity are classified as finance leases.

Finance leases are capitalised, recording an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that the economic entity will obtain ownership of the asset or over the term of the lease.

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred.

(c) Financial Instruments

Recognition

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

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.

Financial assets at fair value through profit and loss A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management and within the requirements of

AASB 139: Recognition and Measurement of Financial Instruments. Realised and unrealised gains and losses arising from changes in the fair value of these assets are included in the income statement in the period in which they arise.


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(d) Impairment of Assets

At each reporting date, the Company reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the assets, being the higher of the asset’s fair value less cost to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the income statement.

Impairment testing is performed annually for goodwill and intangible assets with indefinite lives. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset

belongs.

(e) Employee Benefits

Provision is made for the company’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits.

(f) Cash

Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts.

(g) Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:

Sales revenue

Sales revenue is recognised when the goods or services are provided. Grants are recognised in the period to which the grant relates.

Interest income

Interest income is recognised as it accrues.

(h) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the Balance Sheet are shown inclusive of GST.

Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

(i) Comparative figures

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

(j) Critical accounting estimates and judgements

The directors evaluate estimates and judgements 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.

(k) Grants in Advance and Projects in Progress

Grants in advance is grant revenue received in the current financial year relating to a future income year or grants received where there has been no activity on that grant in the current financial year.

Where there is activity on a grant in the current financial year, the whole grant revenue received to date is recognised as revenue for that year. Expenditure relating to the particular grant is offset against the revenue, with any excess of grant revenue over expenditure being carried as projects in progress.

(l) Economic Dependence

The Company is dependent on the Community Broadcasting Foundation (CBF) for the majority of its revenue used to operate the business. At the date of this report the directors have no reason to believe the CBF will not continue to support the Company.


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Notes to and forming part of the Financial StatementsFor the Financial Year ended 30 June 2008 Note 2008 2007 $ $

Note 2 – RevenueOperating ActivitiesMembership fees 309,221.59 310,107.80CBF Grants 1,860,311.56 413,000.00Other Grants 889,338.18 16,536.36CRN activities and subscriptions 343,002.44 254,946.64Training fees 25,367.00 0.00Other income 571,277.48 301,582.97

3,998,518.25 1,296,173.77Non-Operating ActivitiesProfit on sale of assets 3,234.55 0.00Interest received 12,239.44 11,141.72

Total revenue 4,013,992.24 1,307,315.49

Refer to Note on page 7 regarding disclosure of project related activities.

Note 3 – Expenses

Profit from ordinary activities before income tax has beendetermined after:

(a) Expenses Depreciation of plant and equipment 31,500.00 34,816.00

Rental expense on operating leases: - minimum lease payments 63,512.76 63,512.76

Note 4 – Key Management Personnel CompensationKey Management Personnel

Directors Shane Elson Deborah Welch Ian Laird Adrian Basso John MacInnes Stuart Buchanan Bryce Ives Tim Borgas Wendy Coates Andrew Brine Craig Twitt Helen Bath Peter Tozer

The Directors received no remuneration for their services in their capacity as Directors of the Company.

Key Management Personnel Barry Melville Wendy Coates Ian Laird

Total CompensationShortTerm Benefits

$Post Employment

Benefits$

Total$

2008 Total Compensation 191,205 1,761 192,966

2007 Total Compensation 162,768 34,503 197,271


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Note 5 – Auditor’s RemunerationAmounts received or due and receivable by Escott Aston for:- an audit of the financial report of the entity 14,850.00 10,900.00- other audit services 3,500.00 0.00- other services in relation to the entity 4,200.00 3,472.73 22,550.00 14,372.73

Note 6 – Cash AssetsCash at bank and on hand 770,779.93 208,451.58

Note 7 – ReceivablesCURRENTDebtors 409,400.49 701,200.08Less: Provision for Doubtful Debts (30,000.00) (30,000.00)

379,400.49 671,200.08PPCA Royalties 61,483.55 64,085.03Other Debtors 1,961.23 2,546.12

442,845.27 737,831.23

Note 8 – Other Current AssetsPrepayments 7,820.68 11,560.79Short Term Deposits 59,225.56 55,182.59

67,046.24 66,743.38


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Note 9 – Property, Plant & EquipmentFurniture and Equipment – at cost 289,320.11 278,292.63Accumulated Depreciation (269,695.82) (257,983.82)

19,624.29 20,308.81

Studio Equipment – at cost 397,405.02 393,539.44Accumulated Depreciation (374,069.56) (366,183.56)

23,335.46 27,355.88 Leasehold Improvements – at cost 131,293.58 123,450.99Accumulated Depreciation (95,562.50) (84,378.50)

35,731.08 39,072.49

Leased Motor Vehicle – at cost 36,867.27 34,888.00Accumulated Amortisation (8,232.00) (25,405.00)

28,635.27 9,483.00

Total Plant and Equipment – at cost 854,885.98 830,171.06Accumulated Depreciation and Amortisation (747,559.88) (733,950.88) 107,326.10 96,220.18

Movements in Carrying AmountsFurniture & Equipment

$

Studio Equipment

$

Leasehold Improvement

$

Leased Motor Vehicles

$

Total

$Balance at 1 July 2007 20,308.81 27,355.88 39,072.49 9,483.00 96,220.18Additions 14,271.48 3,865.58 7,842.59 36,867.27 62,846.92Disposals (2,526.00) 0.00 0.00 (8,694.00) (11,220.00)Depreciation (12,430.00) (7,886.00) (11,184.00) (9,021.00) (40,521.00)

Carrying amount at 30 June 2008 19,624.29 23,335.46 35,731.08 28,635.27 107,326.10


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Note 10 – Accounts PayableCURRENTTrade Creditors 481,969.92 118,628.03Projects in Progress 331,428.27 153,706.04Other Creditors and Accruals 80,440.36 41,639.84Income in Advance 0.00 2,977.38Grants in Advance 189,835.51 501,247.16GST Payable 44,964.00 40,162.34PPCA Royalties 58,372.53 57,451.29

1,187,010.59 915,812.08

Note 11 – Financial Liabilities

CURRENTLease Liability 4,882.15 11,280.46

NON-CURRENTLease Liability 31,266.30 0.00

Note 12 – ProvisionsCURRENTEmployee Entitlements 58,336.66 77,111.89

Note 13 – Income Tax ExpenseThe Company is exempt from income tax under subdivision 50-B of the Income Tax Assessment Act 1997.

Note 14 – Operating Lease Commitments(a) Operating Leases Aggregate amount contracted for, but not provided for in the financial statements

Due within 1 year 63,512.76 63,512.76 Due within 1-2 years 63,512.76 63,512.76 Due within 2-5 years 63,512.76 127,025.52 Due later than 5 years 0.00 0.00 Total lease commitment 190,538.28 254,051.04 (b) Finance Leases Due within 1 year 8,110.80 11,351.42 Due within 1-5 years 38,053.75 0.00 Due later than 5 years 0.00 0.00

Minimum lease payments 46,164.55 11,351.42 Less: Future finance charges 10,016.10 70.96 Total Lease Liability 36,148.45 11,280.46


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Note 15 – Contingent LiabilitiesThe directors of the Company are not aware of any contingent liabilities at balance date.

Note 16 – Financial Reporting by SegmentThe Company operates predominantly in the Community Broadcasting industry. The principal activity of the Company is to support the development and administration of Community Broadcasting.

The Company operates in one geographic area only, being Australia.

Note 17 – Cash Flow Statement(a) Reconciliation of the operating profit after tax to the net cash flows from operations:

Operating profit/(loss) after tax 1,459.90 11,535.19

Profit on sale of assets (3,234.55) 0.00 Depreciation and amortisation 40,521.00 40,049.00 Interest on borrowings 3,096.10 1,316.02 Provision for employee entitlements (18,775.23) (42,769.02) Provision for doubtful debts 0.00 10,000.00 Changes in assets and liabilities (Increase)/decrease in accounts receivable 291,799.59 (386,574.95) (Increase)/decrease in other current assets 6,926.48 11,813.23 Increase/(decrease) in accounts payable 271,198.51 191,568.66

Net cash provided by operating activities 592,991.80 (163,061.87)

(b) Reconciliation of cash

Cash at Bank 770,779.93 208,451.58 Short Term Deposits 59,225.56 55,182.59 830,005.49 263,634.17

Note 18 – Subsequent EventsThere have been no events, which have occurred between balance date and the date of these accounts, which will materially impact on the Company.


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Note 19: Financial Instruments

Financial Risk Management

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

The main purpose of non-derivative financial instruments is to raise finance for the association’s operations. The Company does not have any derivative instruments at 30 June 2008. Financial Instruments are held under normal commercial policies, terms and conditions regularly adopted by businesses in Australia.

The main risks the Company is exposed to through its financial instruments are liquidity risk, credit and interest rate risk.

(a) Liquidity Risk The Company manages liquidity risk by monitoring forecast cash flows.

(b) Credit Risk The maximum exposure to credit risk, excluding the value of any collateral or other security at balance date to recognised financial assets, is the carrying amount, net of any

provisions for impairment of those assets, as disclosed in the balance sheet and notes to the financial statements.

The Company does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into by the association.

(c) Interest Rate Risk The Company’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates and the effective

weighted average interest rates on those financial assets and financial liabilities, is as follows:

Weighted Average Interest Rate

Floating Interest Value Fixed Interest Rate Within 1 Year

Maturing Within 1 to 5 Years

2008 2007 2008 2007 2008 2007 2008 2007% % $ $ $ $ $ $

Financial AssetsCash & cash equivalents 1.7 3.1 770,780 208,452 0 0 0 0Trade & other receivables 0 0 442,845 737,831 0 0 0 0Short term deposits 7.1 6.1 59,226 55,182 0 0 0 0Total Financial Assets 1,272,851 1,001,465 0 0 0 0Financial LiabilitiesTrade & other payables 0 0 562,410 160,267 0 0 0 0Lease liabilities 9.5 9.6 0 0 4,882 11,280 31,266 0Total Financial Liabilities 562,410 160,267 4,882 11,280 31,266 0


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Note 19: Financial Instruments (con’t)

Net Fair Values

The net fair value of financial assets and liabilities approximates their carrying value because of their short term to maturity. No financial assets and financial liabilities are readily traded on organised markets in standardised form. Financial assets where the carrying amount exceeds net fair values have not been written down as the association intends to hold the assets to maturity.

The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the Balance Sheet and in the Notes to the Financial Statements.

Aggregate net fair values and carrying amounts of financial assets and financial liabilities at balance date:

2008 2007

Carrying Amount Net Fair Value Carrying Amount Net Fair Value$ $ $ $

Financial AssetsCash 770,780 770,780 208,452 208,452

Trade and other receivables 442,845 442,845 737,831 737,831

Short term deposits 59,226 59,226 55,182 55,182Total Financial Assets 1,272,851 1,272,851 1,001,465 1,001,465

Financial LiabilitiesTrade and other payables 562,410 562,410 160,267 160,267

Lease liability 36,148 36,148 11,280 11,280Total Financial Liabilities 598,558 598,558 171,547 171,547

Note 20 – Members’ GuaranteeThe Company is limited by guarantee. If the Company is wound up, the Articles of Association state that each member at the date of winding up, and each member who ceased to be a member within twelve months of the date of winding up, shall contribute a maximum of $10 each towards meeting any outstanding obligations of the Company. At 30 June 2008, the number of members was 227 (2007: 240).

Note 21 – Entity InformationThe Community Broadcasting Association of Australia Limited is a company limited by guarantee incorporated and domiciled in the State of New South Wales. The registered office of the Company is located at Suite 1, Level 3, 44-54 Botany Road, Alexandria, NSW.

During the year, the principal activity was that of a national association to support community broadcasting.


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Directors’ DeclarationFor the Financial Year ended 30 June 2008The Directors of the Company declare that:

1. The financial statements and notes, as set out on pages 7 to 17, are in accordance with the Corporations Act 2001:

(a) Comply with Accounting Standards and the Corporations Regulations 2001; and

(b) Give a true and fair view of the financial position as at 30 June 2008 and of the performance for the year ended on that date of the Company.

2. As at the date of this statement there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

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

Director Director



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Independent Audit Report to the MembersFor the Financial Year ended 30 June 2008 Report on the Financial Report

We have audited the accompanying financial report of Community Broadcasting Association of Australia Limited (the company), which comprises the balance sheet as at 30 June 2008 and the income statement, statement of recognised income and expenditure and cash flow statement for the year ended on that date, a summary of significant accounting policies and other explanatory notes and the directors’ declaration. Directors’ Responsibility for the Financial Report

The directors of the company are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

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. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance 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 company’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 company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, 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.

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 Corporation Act 2001, provided to the directors of Community Broadcasting Association of Australia Limited on 8 August 2008 would be in the same terms if provided to the directors as at the date of this auditors report.


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Independent Audit Report to the MembersFor the Financial Year ended 30 June 2008 Audit Opinion

In our opinion, the financial report of Community Broadcasting Association of Australia Limited is in accordance with the Corporations Act 2001, including:

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

(b) Complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001.

Escott AstonChartered Accountants291 Belmore Road David G AstonRiverwood NSW 2210 Partner



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Detailed Profit and Loss StatementFor the Financial Year ended 30 June 2008 Note 2008 2007 $ $

IncomeSecretariat (35,298.19) 28,884.43C.R.N. 66,653.57 (22.22)Conference (7,957.55) 841.37Training 6,327.52 16,647.61

Net Profit/(Loss) before Indirect Income and Expenses 29,725.35 46,351.19

Indirect Income and Expenses

Profit on Sale of Assets 3,234.55 0.00Total Indirect Income 3,234.55 0.00

Depreciation (31,500.00) (34,816.00)Total Indirect Expenses (31,500.00) (34,816.00)

Net Income/(loss) transferred 1,459.90 11,535.19

Note: The Detailed Profit and Loss Statement on pages 22 to 25 detail the community-broadcasting sector related activities of the Company. The Detailed Project Accounts on pages 26 to 29 detail a number of the major projects undertaken during the year by the Company. The Directors are committed to providing more detailed disclosures of the Company’s project related activities in next years financial report.


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Secretariat

Income

Sector Co-ordination Grant 250,704.00 243,000.00CTV Membership Fees 10,987.84 8,986.53Membership Fees 309,221.59 301,121.27Interest Received 12,239.44 11,141.72Sundry Income 6,579.41 4,830.48Rent Received from Projects 13,083.00 12,460.00CBX Advertising 8,000.00 3,295.00Administration Assistance from Projects 113,871.45 84,435.49Capital Income from Projects 13,978.94 10,000.00

Gross Income 738,665.67 679,270.49

Less: Indirect Expenses

Administration Expenses Accountancy Fees 5,400.00 5,233.99 Amortisation 9,021.00 5,233.00 Audit Fees 3,600.00 3,600.00 Bank Charges 3,513.68 1,247.67 CBX Expenses 25,735.85 8,814.89 Cleaning 3,639.39 3,483.13 Committee Expenses 31,481.84 36,575.15 Consultancy 3,075.55 13,611.71 Electricity 4,505.98 5,142.97 Fringe Benefits Tax 3,562.38 3,823.00 General Expenses 1,629.10 4,958.26 Information Technology 1,528.83 3,743.72 Insurance 6,082.24 4,440.67 Interest Paid – Lease 3,096.10 1,316.02 Legal Expenses 198.00 0.00 Payroll Tax 7,710.46 9,040.39 Office Rentals and Leases 10,889.12 12,403.76 Printing 8,530.83 5,115.53 Postage 16,127.52 15,523.69 Promotion and Advertising 1,147.77 250.00 Provision for Doubtful Debts 0.00 10,000.00 Provision for Employee Entitlements (24,915.50) (7,479.39) Rent 43,347.40 42,631.64 Repairs & Maintenance 1,062.16 735.20 Salaries & Wages 481,896.21 327,477.35 Security 641.19 243.36 Special Projects 4,317.52 23,204.86 Staff Amenities 7,218.90 4,885.10 Staffing Costs 12,835.20 4,386.03 Stationery & Office Supplies 9,728.93 15,425.75 Subscriptions 1,912.66 315.72 Superannuation 41,896.11 28,336.30 Telephone, Fax and Internet 12,570.41 19,533.85 Travelling Expenses 30,977.03 37,132.74

640,763.51 522,602.20 Total Indirect Expenses 773,963.86 650,386.06

Net Income/(Loss) transferred (35,298.19) 28,884.43


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C.R.N.

Income

C.B.F. Grant 67,000.00 65,000.00Client Services 201,117.28 106,085.77Special Grants 15,560.00 12,500.00Station Fees 130,897.32 148,860.87Other 3,454.55 1,584.54

Gross Income 418,029.15 334,031.18

Less: Expenses

Audit Fees 8,000.00 6,000.40 Administration Assistance 54,500.00 41,000.00 Cleaning 2,025.60 1,944.02 Consultancy Fees 6,240.18 2,890.27 Electricity 2,471.11 1,784.80 Information Technology 830.68 1,971.07 Insurance 4,819.39 4,837.47 Miscellaneous 853.83 1,824.75 Payroll Tax 2,740.58 5,899.15 Office Rentals and Leases 5,314.05 4,639.27 Postage 579.23 372.05 Projects Opening Balance 1,750.00 0.00 Promotion & Publicity 300.00 100.00 Provision for Employee Entitlements 7,789.72 (39,198.92) Rent 23,340.92 20,377.06 Repairs & Maintenance 1,972.33 2,658.04 Salaries & Wages 175,716.77 233,225.27 Security 292.07 135.20 Special Projects 2,404.55 0.00 Staff Amenities 2,628.03 2,163.67 Staffing Costs 2,209.09 510.00 Staff Training 1,445.00 40.00 Stationery & Office Supplies 5,152.25 4,271.08 Subscriptions 1,050.00 183.31 Superannuation 15,878.52 14,060.27 Telephone, Fax and Internet 15,292.71 16,743.93 Travelling Expenses 5,778.97 5,621.24

Total Expenses 351,375.58 334,053.40

Net Income/(Loss) transferred 66,653.57 (22.22)


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Conference

Income

Awards 0.00 4,036.36Expo 32,225.00 28,740.91Registration and Meals 78,800.00 67,923.64Sponsorship 32,651.82 26,922.73

Gross Income 143,676.82 127,623.64

Less: Expenses

Administration 45,813.88 37,197.91 Awards 1,574.73 4,057.27 Projects Opening Balance 1,132.08 2,037.48 Promotional Material 8,296.07 4,782.41 Salaries 26,019.63 18,400.00 Travel Rebate 3,457.58 3,109.86Venue 65,340.40 57,197.34

Total Expenses 151,634.37 126,782.27

Net Income/(Loss) transferred (7,957.55) 841.37

Technical Development Unit

Income

C.B.F. Grant 70,000.00 70,000.00Project Opening Balance 44,982.02 0.00

Gross Income 114,982.02 70,000.00

Less: Expenses Consultancy 103,214.87 24,910.71 Travelling Expenses 426.53 107.27 Work in Progress 11,340.62 44,982.02

Total Expenses 114,982.02 70,000.00 Net Income/(Loss) transferred 0.00 0.00


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Training

Income

CBF Grants 35,000.00 35,000.00Training Fees 14,789.00 11,439.00Admin Assistance to Projects 41,497.51 48,451.18Other Income 268.75 1,500.00

Total Income 91,555.26 96,390.18

Expense

Administration 2,500.00 1,000.00Audit 2,000.00 1,833.44Cleaning 373.48 0.00Conference Expenses 257.68 352.63Consultancy 7,630.00 14,189.05Electricity 494.20 158.59Equipment Purchases 1,327.73 6,417.37Information Technology 2,344.28 347.06Insurance 963.87 621.80Miscellaneous 1,044.54 951.04Office Rentals and Leases 1,062.81 1,056.43Payroll Tax 743.53 766.49Postage 463.31 14.41Printing 2,525.78 2,822.85Promotion and Advertising 120.00 90.00Provision for Employee Entitlements (5,021.67) 1,602.80Repairs & Maintenance 95.49 538.48Salaries 50,005.34 36,078.95Security 58.45 40.59Staff Amenities 557.59 900.57Staffing Costs 2,375.09 0.00Staff Training 2,559.00 0.00Stationery & Office Supplies 1,997.46 1,067.46Subscriptions 187.50 974.87Superannuation 3,939.54 3,198.96Telephone, Fax and Internet 2,514.22 2,367.52Travel and Accommodation 2,108.52 2,351.21

Total Expense 85,227.74 79,742.57

Net Income/(Loss) transferred 6,327.52 16,647.61


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Detailed Project AccountFor the Financial Year ended 30 June 2008 Note 2008 $

A.M.R.A.P.

Income

Special Grants 15,000.00CD Distribution 40,256.99Project Opening Balance 71,072.43

Total Income 126,329.42

Expense

Bank Charges 16.00CD Distribution 944.91Cleaning 408.82Conference Expenses 229.09Electricity 1,436.90Information Technology 767.20Insurance 963.87Miscellaneous 479.59Music Correspondent & Recordings 4,066.81Office Rentals and Leases 1,062.75Payroll Tax 4,197.00Postage 15,775.85Printing 255.06Promotion and Advertising 250.00Provision for Employee Entitlements (706.20)Rent 9,975.00Repairs & Maintenance 95.53Salaries 68,381.58Security 58.41Staff Amenities 525.67Staff Training 574.00Stationery & Office Supplies 2,641.84Subscriptions 300.00Superannuation 6,118.65Telephone, Fax and Internet 2,179.32Travel and Accommodation 446.65Web Hosting 7,682.00Work in Progress (2,796.88)

Total Expense 126,329.42

Net Income/(Loss) transferred 0.00


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CBOnline

Income

CBF Grants 162,265.00


Expense

Administration 15,015.00Audit 1,300.00Bank Charges 15.00Cleaning 519.99Conference Expenses 3,085.87Consultancy 14,231.18Electricity 988.45Equipment Purchases 2,475.39Information Technology 4,172.59Insurance 1,347.34Miscellaneous 2,100.00Office Rentals and Leases 1,642.46Payroll Tax 4,370.78Promotion and Advertising 1,280.43Provision for Employee Entitlements 9,509.16Rent 3,108.00Repairs & Maintenance 111.57Salaries 77,748.35Security 55.11Staff Amenities 866.39Staff Training 540.00Stationery & Office Supplies 2,364.62Superannuation 6,584.22Telephone, Fax and Internet 7,012.62Work in Progress 1,820.48




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National Training Project

Income

CBF Grants 172,979.00


Expense

Administration 8,600.00Audit 1,000.00Cleaning 813.48Conference Expenses 2,614.75Depreciation – Capital Grants 10,000.00Electricity 2,011.73Information Technology 4,688.51Insurance 1,927.76Office Rentals and Leases 2,125.64Payroll Tax 7,710.25Postage 902.29Printing 120.10Provision for Employee Entitlements (5,715.09)Rent 11,271.50Repairs & Maintenance 191.04Salaries 119,295.70Security 116.83Staff Amenities 1,051.16Staffing Costs 3,446.76Staff Training 198.00Stationery & Office Supplies 2,417.18Subscriptions 375.00Superannuation 9,888.96Telephone, Fax and Internet 2,333.64Travel and Accommodation 9,540.21Work in Progress (23,946.40)




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Digital Radio Implementation

Income

CBF Grants 100,000.00Registrations 2,903.64Other Income 849.27


Expense

Administration 11,000.00Equipment Purchases 2,339.09Legal Expenses 15,000.00Miscellaneous 1,099.46Payroll Tax 3,208.50Salaries 50,125.97Staffing Costs 100.00Superannuation 4,576.05Travel and Accommodation 11,617.13Work in Progress 4,686.71




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Operational OverviewANNUAL REPORT 2007-08

Overview

The past year has been a busy one at the CBAA with many staffing changes, continued organisational growth, and some introspection as we developed our Strategic Plan for the next three years.

Finances

As the enclosed audited Financial Statements indicate, the CBAA finished the year with a cash surplus of $29,725 compared with last year’s cash suplus of $46,351. Non-cash expenses from depreciation of $31,500 (compared with $34,816 in 2006-07) returned the CBAA a net surplus for the year of $1,459.90 (compared with a net surplus of $11,535 in the previous year).

Our bottom line equity position has remained stable over the past few years. Total assets at 30 June 2008 were up to $1,280,671 (compared with $1,013,026 in the previous year). Our total current liabilities were $1,250,229 – up from $1,004,204 in 2007. Our bottom line net result (total equity) was slightly greater than the previous year $106,502 (compared with $105,042).

The CBAA’s revenue from ordinary activities was $4,013,992, which appears considerably more than $1,307,315 last year. Previously, the CBAA published only Secretariat revenue and the 2007 comparative figures disclose only the net revenue received by the organisation for managing projects. The CBAA Board made a decision in 2008 to reveal the full range of operating activities and the gross revenue and expense of managing proejcts on behalf of the sector.

In the 2007-08 financial year:

• Membership fees ($320,209) accounted for 43% of the CBAA’s Secretariat income ($738,666);• Subscription fees for the Community Radio Network (CRN) service ($130,897) accounted for 31% of the satellite service's income of $418,029 (compared with income of $334,031 in

2006-07); and• The CBF sector coordination grant in 2007-08 of $250,704 accounted for 34% (compared with 31% in 2006-07) of the combined revenue from CBAA core activities (Secretariat,

Network Services, Technical Development Unit and RTO Training Services, but excluding projects).

Membership

Membership of the CBAA has remained relatively strong for the past four years. However, there was a substantial change to our community television membership during the 2007-08 financial year.

Until February 2008, our membership included all four permanently licensed community television stations and one open narrowcaster. At that time a new representative body was established with a sole focus on community television matters. One community television station, C31 Melbourne, remains a member of the CBAA.

The table below tracks CBAA membership over four years:

2004-05 2005-06 2006-07 2007-08Full Members 236 238 240 227Associates 27 29 32 40CRN subscribers 181 182 175 171Core Staff 13 12 11 12

Staffing

On 30 June 2008, the CBAA had 12 core Secretariat staff:

Core Staff

• General Manager (starting in September 2008)• Policy Coordination Manager• Communications Manager• IT Coordinator• Executive Assistant• Administrative Assistant• Business Development Manager• Marketing and Sponsorship Coordinator• Finance and Administration Coordinator• Network Services Manager• Technical Coordinator• Satellite Operations Coordinator• Technical Consultant

In addition to core staff, the CBAA managed a number of projects on behalf of the sector and employed the following people:


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Project Staff

• CBOnline Content Manager• CBOnline Assistant• National Training Manager• National Training Administrative Assistant• National Training Coordinator• Amrap Producer• Digital Radio Project Manager• Digital Radio Project / Codes of Practice Review Assistant

In February 2008, Mia Lauzé left the CBAA after many years of service. Mia began as the CBOnline Content Manager in 2002 and was most recently the National Training Manager. In July 2008, Nicola Joseph started in the role.

Following a successful bid for funding, the community broadcasting sector received $10.1 million over four years in the May 2007 Budget for digital radio. The CBAA was appointed project manager of the Digital Radio Implementation Project and Ian Laird started in the role of Digital Radio Project Manager during October 2008. However, while the incoming Federal Government confirmed the funding allocation, it was pushed back by a year, which resulted in the CBAA sadly having to farewell Ian in June 2008.

Other appointments during the year included Brooke Olsen as Amrap Producer, Peter Tozer as Network Services Manager, Robin Carter as Finance and Administration Coordinator, and Sarah Tracton as CBOnline Assistant.

Key activities

The 2007-08 financial year was a busy one for the CBAA with the following key activities undertaken:

• Over a six month period, the CBAA Board and staff developed a new Strategic Plan that outlines our focus for the next three years;• The first stage of the Community Radio Codes of Practice was undertaken during 2008 and the revised Codes will be presented at the 2008 National Conference;• The 2008 McNair Ingenuity National Listener Survey took place in May 2008 and is due to be launched during October 2008;• The Community Radio Network (CRN) and Digital Delivery Network (DDN) has undergone significant planning and development to update its capabilities and to make it more user

friendly;• On behalf of the sector, the CBAA coordinated our efforts to participate in the first stage of the digital radio framework, which involved the establishment of company structures to

facilitate the involvement of community radio broadcasters and detailed negotiations regarding infrastructure planning, development, and implementation; and• As manager of the National Training Project, we have overseen the pilot of management training, which is a significant development for the community broadcasting sector.

Lobbying and advocacy

2007, being an election year, resulted in another comprehensive lobbying campaign to secure additional funding for the community broadcasting sector. Run as part of the Funding Strategy Group, the campaign resulted in:

• Individual meetings with 50 Ministers, Shadow Ministers, or Advisers;• Meetings with 30 politicians in marginal seats; and• Meetings with 41 politicians organised by community broadcasting stations.

Despite the extensive lobbying, however, the message from the Federal Government was that – in a tight budgetary environment – only election promises would be funded. Therefore, it was relatively satisfying to see an allocation of $2.4 million over four years for the highly successful Australian Music Radio Airplay Project (Amrap), $0.6 million for the National Training Project, and $11.2 million for digital radio.

Future outlook

The 2008-09 financial year is already shaping up to be another significant one for the CBAA. Later this year we will welcome our new General Manager who will take a lead role in implementing our new Strategic Plan. Underpinning the plan are the guiding principles that unite our sector, which are featured in the revised Community Radio Codes of Practice to be released towards the end of 2008. And as we remind ourselves of the philosophies we share, the results from the 2008 McNair Community Radio National Listener again reinforce our strong and growing audience and the importance and value of our sector. We look forward to continued organisational development in the next year as we further embrace our role as a vibrant peak body for community broadcasting that reflects the interests of our members and advances the endeavours of the entire sector.


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The 2007 federal election fell within the period of this report and created the need for the community broadcasting sector to reaffirm and re-establish technical, regulatory and policy positions on most fronts.

The first budget of a new Government also brought with it challenges and uncertainties.Ultimately the Government affirmed support for digital contribution and transmission costs, and for the long-standing principle that community broadcasters will have access to digital broadcasting capacity on a basis affordable to the community sector.

Also vitally important is that analog transmission costs remain affordable to community broadcasting. The transmission support fun is critical to the viable operation of many community stations. The CBAA continues to provide advice and assistance on deliberations relating to transmission support funding.

General Technical Planning and PolicyScrutiny of the use of radiocommunications spectrum is increasingly intense. Broadcasters make use of spectrum that is ‘plum’. Quite appropriate, as broadcasting is the only way to ensure the reliable and free delivery of key cultural, social or even safety-of-life messages to the general public, on low cost readily available equipment. Broadcasting plays a vital social role.

However, spectrum in frequency bands that can reach people inside buildings and is generally pervasive is valuable and there are plenty of alternative uses apart from broadcasting. The Government is certainly looking at all possible uses for broadcast spectrum upon closure of analog television. Digital radio and other mobile media delivery technologies are in the mix. Telecommunications and business strategists continue to circle.

The government has a duty to ensure spectrum is used in an efficient and effective manner. During the past year the CBAA has provided inputs to numerous processes leading to a set of possible principles for spectrum management by ACMA and the Government. A five year plan has been developed. Individual band planning and issues continue to be addressed.

These issues continue to be the subject of strenuous debates and processes. It is within that environment that no cost use of spectrum - or resulting digital capacity - by not for profit community based groups comes under the spotlight. It is a precious resource that community broadcasters rely upon and therefore should be retained and secured for the future.

At an individual level, the CBAA continues to provide stations with support and general assistance with regard to technical, planning and regulatory issues.

Apart from spectrum and broadcast planning issues, stations also face other changes. For example, Telstra has announced the closure of its analog program lines. Alternatives include radio links and/or a variety of digital circuits with varying quality of service outcomes. The CBAA has provided assistance with this at a station level but also in terms of negotiating with Telstra nationally.

The Broadcast Industry Technical Advisory Group (BITAG) continues to be a forum for co-ordination of industry views on industry technical regulation. BITAG now has a strengthened role and provides broadcast industry representation to the new Radiocommunications Consultative Council and ACMA TAG (Technical Advisory Group) and TWG (Technical Working Group) forums. I continue to be the chair of BITAG and am the nominee to the ACMA TAG.

The CBAA continues to operate program distribution systems using satellite, and increasingly IP based approaches. It sees a strong future in both.

The Digital Delivery Network (DDN) has been under re-development this year. There is limited funding for replacement of station end machines which has caused some difficulties. During the past year the CBAA has itself replaced most of the key computer systems that underpin the satellite and DDN playout facilities. The aim is to ensure reliability. The old machines were over six years old and becoming unreliable. They are the mainstay of the entire system.

Extra Digital Planning and PolicyDuring this year the role of the Technical Consultant was extended to carry out extra tasks specific to the Digital Radio technical planning and policy work.

The legislative and technical arrangements of Digital Radio require the community sector to adopt a collaborative approach with the commercial radio industry and, to a lesser extent, with the national broadcasters.

To that end, since July 2007 there have been formal, full day meetings held on at least a fortnightly basis, often weekly, to address technical planning, negotiations and design requirements.

In addition, a number of working groups have been intensely busy, including: Spectrum and RF planning: Head End equipment; Connectivity; Transmitters and Site Access; Multimedia Content; Systems Integration. These groups have been responsible for the detailed development of the general approach to planning, equipment selection and implementation.

Strong relationships have been consolidated through negotiations with relevant digital equipment and facility vendors, especially in respect of head end equipment and where there are community broadcasting specific requirements. Responses from vendors have been explicitly taking into account the requirements of the community broadcasting sector, even in responses to the commercial sector.

At a regulatory level, there was an intense period of work between September and December when ACMA was developing initial Digital Radio Channel Plans. Submissions were developed which recognised the need for additional transmitter power in order to achieve suitable grade reception for indoor portable devices. Detailed inputs were developed for submission by the CBAA to this process.

The channel plans were published in late December and ACMA is taking the view that the channel plans are a ‘work in progress’ to be consolidated late in 2008. Although flexible, this results in a high degree of extra work as the options for transmission are not nailed down. Regardless, specification and equipment provision has needed to occur to meet the implementation timetable. A spectrum and power flexible approach has therefore been taken where ever possible.

Other general work since December on antenna pattern shaping and transmission facility provision is needed in order to strike a balance between costs, maximum coverage as well as to minimise interference. Interference issues are significant and mitigation could present a cost burden to the community sector.

In late 2007 it was determined that cost estimates for implementation may exceed funding allocated for the community sector. As it turned out, estimates developed for the commercial sector in late December assumed a high capital cost start up. Detailed work was undertaken and representations made to Government. Revised cost estimates were developed in January 2008.

2007-2008 Annual Report: Technical Consultant


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Extra Digital Planning and Policy (con’t)In addition, work was undertaken to develop support for a lower cost start up as being in the best interests of all broadcasters. Steps were taken to test this with transmission facility providers and as a result a ‘soft start’ has been negotiated. This measure, along with a series of others to contain or amortise costs, has resulted in significant savings.

Revised cost estimates were developed for the community sector’s pro-rata ownership share of capital costs. Additionally, a separate set of cost estimates was developed in March and April for the case of taking a non-owner access seeker / leased approach. The compilation of these detailed estimates for transmission capital and operational costs were detailed over a three year period and then set off against the funding available - so that stations could identify their own individual costs.

At the end of the financial year the commercial sector was yet to make such detailed cost estimates or to make them available to its members. The community sector required best estimates on costs ahead of this timetable in order to make decisions on shareholding interest in the transmission facilities, or whether to enter digital radio as ‘non-owner’ access seekers.

Throughout the period, technical and strategic input has been provided toward the development of legal instruments and approaches required by the legislation and strategic situations.

Extensive briefing was undertaken of lawyers, Minter Ellison, who were engaged to develop documentation on the technical, planning and strategic parameters concerned with Digital Radio implementation in general and the issues for the community sector specifically.

Throughout the period, detailed information has been developed together with clear and simplified materials to assist in negotiations regarding excess capacity, re-phasing of funding, infrastructure planning and cost impacts to individual broadcasting licensees. This material has also been provided to stations directly, to city based community broadcasting consortium groups, through regular meetings of the national Digital Radio Consultative Group, its predecessor committee and Working Group.

The provision of this level of detailed analysis, information and clear presentation of cost and arrangements has assisted in ensuring the $11.2 million support confirmed in the 2008 Federal Budget. Further work and engagement on all these matters is continuing at a pace.

At the time of writing, legislation requires the launch of digital radio by 1 January 2009. Legislative amendments are in train to effect a change of the deadline to 1 July 2009. Practical planning timetables indicate a switch-on target date in early 2009 with a public ‘launch’ in May.

The community sector intends to have key services in place in time for launch. Further services will follow. The exact arrangements for these services are under discussion.

Over the coming period the arrangements for capital shareholding and access arrangements also need to be fully and carefully worked through. There are strategic, technical, legal and regulatory issues that are brought into sharp focus as the licensing and access regulatory arrangements, technical and program supply interface points and cost parameters are worked through.

David SiceTechnical Consultant


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1ART 92.7 FM1CMS 91.1 FM1VFM 89.5 FM1WAY 91.9 FM2AAA 107.1 FM2AIR 107.9 FM2ARM 92.1 FM2BAB 92.7 FM2BAR 93.7 FM2BAY 99.9 FM2BBB 107.3 FM2BCB 100.1 FM2BCR 100.9 FM2BLU 89.1 FM2BOB 104.7 FM2BRW 96.3 FM2CBA 103.2 FM2CBD 91.1 FM2CCC 96.3 FM2CCR 90.5 FM2CHR 96.5 FM2CHY 104.1 FM2COW 107.9 FM2CUZ 106.5 FM2CVC 103.1 FM2DCB 94.3 FM

2DRY 107.7 FM2EAR 107.5 FM2EZY 90.5 FM2FBI 94.5 FM2GCR 103.3 FM2GLA 101.5 FM2GLF 89.3 FM2HAY 92.1 FM2HHH 100.1 FM2HIM 89.7 FM2HOT 102.9 FM2KRR 98.7 FM2LIV 94.1 FM2LND 93.7 FM2LRR 89.7 FM2LVR 97.9 FM2MAX 91.3 FM2MBS 102.5 FM2MCE 92.3 FM2MCR 100.3 FM2MFM 92.1 FM2MIA 95.1 FM2MNO 93.3 FM2MVH 92.5 FM2MWM 88.7 FM2NBC 90.1 FM

2NCR 92.9 FM2NIM 102.3 FM2NSB 99.3 FM2NUR 103.7 FM2NVR 105.9 FM2OCB 107.5 FM2OOO 98.5 FM2PAR 101.9 FM2PSR 100.9 FM2QBN 96.7 FM2RDJ 88.1 FM2REM 107.3 FM2RES 89.7 FM2RRR 88.5 FM2RSR 88.9 FM2SEA 104.7 FM2SER 107.3 FM2SNR 93.3 FM2SSR 99.7 FM2SWR 99.9 FM2TEN 89.7 FM2TLC 100.3 FM2TRR 101.5 FM2TVR 96.3 FM2UNE 106.9 FM2UUU 104.5 FM

2VOX 106.9 FM2VTR 89.9 FM2WAR 98.9 FM2WAY 103.7 FM2WCR 99.5 FM2WET 103.1 FM2WKT 107.1 FM2WLF 101.9 FM2WOW 100.7 FM2XX 98.3 FM2YAS 100.3 FM2YOU 88.9 FM3APL 98.5 FM3BBB 99.9 FM3BBR 103.1 FM3BGR 103.9 FM3CH 100.7 FM3CR 855 AM3ECB 98.1 FM3EON 96.5 FM3GCB 103.9 FM3GCR 104.7 FM3GDR 95.7 FM3GRR 104.7 FM3HCR 90.9 FM3HHH 96.5 FM

3HOT 106.7 FM3INR 96.5 FM3JOY 94.9 FM3MBR 103.5 FM3MBS 103.5 FM3MCR 99.7 FM3MDR 97.1 FM3MGB 101.7 FM3NOW 98.9 FM3NRG 99.3 FM3OCR 104.7 FM3PBS 106.7 FM3REG 90.7 FM3RIM 97.9 FM3RPC 99.3 FM3RPP 98.7 FM3RRR 102.7 FM3RUM 88.7 FM3SCB 88.3 FM3SER 97.7 FM3SFM 99.1 FM3SYN 90.7 FM3TSC 89.9 FM3UGE 106.9 FM3VKV 92.5 FM3VYV 99.1 FM

3WAY 103.7 FM3WBC 94.1 FM3WPR 101.3 FM3WYN 88.9 FM3ZZZ 92.3 FM4BAY 100.3 FM4BCR 94.7 FM4BI 1197 AM4BRR 91.5 FM4BSR 101.5 FM4BVR 95.9 FM4CBL 101.1 FM4CCR 89.1 FM4CRB 89.3 FM4CRM 107.5 FM4CSB 90.7 FM4DDB 102.7 FM4DDD 89.9 FM4EB 98.1 FM4FCR 107.5 FM4FRB 96.5 FM4GEM 95.1 FM4K1G 107.1 FM4MBS 103.7 FM4MIG 105.7 FM4MW 1260 AM

4NAG 91.3 FM4NSA 101.3 FM4OUR 101.5 FM4RED 99.7 FM4RFM 96.9 FM4RGL 91.9 FM4RHI 94.1 FM4RIM 100.1 FM4RRR 101.7 FM4SDA 104.9 FM4SDB 89.3 FM4TCB 99.9 FM4TCR 92.9 FM4TTT 103.9 FM4WBR 105.1 FM4YOU 98.5 FM4ZZZ 102.1 FM5BBB 89.1 FM5CCR 94.5 FM5CST 88.7 FM5DDD 93.7 FM5DUS 104.5 FM5EFM 89.3 FM5FBI 92.7 FM5GSFM 90.1 FM5GTR 105.7 FM

5MBS 99.9 FM5PBA 89.7 FM5RAM 107.9 FM5RCB 104.9 FM5RCB 99.3 FM5ROX 105.5 FM5RRR 107.3 FM5TCB 106.1 FM5THE 107.7 FM5TRX 105.1 FM5UMA 89.1 FM5UV 101.5 FM5WOW 100.5 FM5YYY 107.7 FM6CRA 100.9 FM6DBY 97.9 FM6EBA 95.3 FM6HFM 107.3 FM6KCR 102.5 FM6MKA 98.3 FM6NEW 92.9 FM6NR 100.1 FM6PRK 98.1 FM6RCI 105.3 FM6RTR 92.1 FM6SEN 90.5 FM

6SON 98.5 FM6TCR 89.7 FM6TTT 97.3 FM6YCR 101.3 FM7BOD 93.7 FM7DBS 106.1 FM7EDG 99.3 FM7HFC 103.3 FM7HRT 95.7 FM7LTN 103.7 FM7RGY 95.3 FM7RPH 864 AM7TAS 97.7 FM7TFM 95.3 FM7THE 92.1 FM7WAY 105.3 FM8EAR 106.9 FM8KIN 100.5 FM8KTR 101.3 FM

CBAA Members (as at 30th June 2008)

Full Members – Radio

Associate Members - Radio8CCC Community Radio Incorporated NTAboriginal Resource and Development Services NT 1530 AMBridgetown Community Radio WABundaberg Burnett Community Broadcasting Assoc Inc QLD 96.3 FMBundaberg Media Aboriginal Corporation QLD 96.3 FMCastlemaine District Radio Inc VICCentral Victorian Community Broadcasters VIC 89.5 FMCentral Victorian Gospel Radio Inc VIC 101.5 FMCollie Community Radio WA 1089 AMDiversitat VIC 94.7 FMFleurieu Christian Broadcasters Inc SA 96.5 FMHarvey Mainstreet Inc WA 96.5 FMHedland Community Radio Inc WA 101.3 AMLambing Flat Community Broadcasters NSW 92.3 FMLord Howe Island Radio Station Association NSW 100.1 FMMid West Aboriginal Media Association WA 100.5 FMMilton Ulladulla and Districts Community Radio Inc NSW 102.7 FMMitchell Community Radio VIC 97.1 FMNarrandera Community Radio NSW 91.1 FMNorfolk Island Radio 89.9 FMPlains FM NZ 96.9 FMRadio Alexandrina Community Broadcasters Inc SA 96.5 FMRadioactive Broadcasters SARiverland Christian Radio SA 93.9 FMSmithfield Community Radio. QLD 101.9 FMSouthern Midlands Community Radio TAS 97.1 FMStrengthening Goldfields Community Radio Inc VIC 99.1 FMThe Octapod Association NSWTiaro Shire Council QLDVale Vision Community Radio and TV Association NSWWest Wyalong Community Radio NSWWhitsunday Region Community Radio Association QLDWorld Music Radio TASWyong Gosford Progressive Community Radio NSW 94.9 FMYAAMA FM NSW 87.6 FMYouth and Community FM NSW 92.5 FMSt Arnaud Development & Tourism Association VIC 97.3 FM

Affiliate Members - RadioGloucester Broadcasters Associates Inc NSWSt Arnaud Development & Tourism Association VICTemora Community Radio NSW

CTV

Full MembersC31 Melbourne VIC

Associate MembersBushvison SALinc TV NSWTelevision Adelaide SA

Affiliate MembersCTV Perth WASKA TV VICSlice TV NSW

Community Broadcasting Association of Australia Limited www.cbaa.org.au ACN 003 108 030

Suite 1, Level 3 44-54 Botany Rd Alexandria NSW Australia 2015 Ph: 02-9310-2999 Fax: 02-9319-4545

Email: [email protected]

Documents

LOCAL, DIVERSE AND ACCESSIBLE BROADCASTING