Director's Report

The directors present their report together with the financial report of the Australian Sports Foundation Limited (the Foundation) for the year ended 30 June 2015 and the Auditor’s report thereon.

Directors

Mr Mark Stockwell (Chair)

Mr Stockwell is an Olympian and the owner of Stockwell, a development, construction, property management and fund management group.

Mr Stockwell started his career as an elite swimmer representing Australia in the 1984 Olympics and 1986 Commonwealth Games. Mr Stockwell joined the family business after his retirement from swimming and as managing director of Stockwell has seen the company diversify as an investor, developer, builder, project manager, property manager and fund manager of industrial, retail, commercial, residential and leisure developments.

Mr Stockwell has maintained his participation in sport over the years and in 2011 chaired the successful Gold Coast bid to host the 2018 Commonwealth Games. In addition to being chair of the Australian Sports Foundation, he is deputy chair of the Australian Sports Commission.

Mr Stockwell is a past president of the Property Council of Australia, Queensland Division, and served on the national board for two years. He is currently chair of Trade & Investment Queensland. Mr Stockwell is a trustee of the St Laurence’s Old Boys’ Foundation which funds educational scholarships for boys at St Laurence’s College and is a trustee of the Stockwell Foundation, founded by Mr Stockwell and his wife Tracy to benefit children in need.

Mr Stockwell was appointed as a director and chair of the Australian Sports Foundation on 1 July 2014 and attended all five Board meetings he was eligible to attend.


Mr Michael Bushell

Mr Bushell has been involved in the sports marketing industry for more than 30 years, continually ensuring his ideas and work are at the forefront of the industry.

He started his career with Speedo International as the sponsorship manager, and was involved with all aquatic sports in Australia and overseas. Mr Bushell then established Sports Marketing and Management (SMAM) in 1986. SMAM has become a world leader in sports sponsorship including representation of the Australian Olympic Committee (since 1986), Australian Commonwealth Games Association (since 1988), Australian Swimming (since1991), and the Australian Rugby Union (1989–94 and from 2008).

In Europe the company consults to the International Olympic Committee and British Motor Sports Association among others. SMAM also exclusively represented British Swimming and the 2014 Glasgow Commonwealth Games.

Mr Bushell also had responsibility for sponsorship, marketing and licensing programs at the 2000 Sydney Olympic Games and sponsorship programs at the 2002 Manchester, 2006 Melbourne and 2010 Delhi Commonwealth games.

In 2000 Mr Bushell received the Australian Sports Medal for his contribution to sport. He also received the “Golden Rings” award from the International Olympic Committee for his contribution to the success of the Sydney Olympic Games.

The Australian Olympic Committee recognised Mr Bushell’s contribution to the sporting industry in 2010 when it awarded him the Order of Merit. SMAM has raised more than $110 million for the Australian Olympic Team, the largest revenue per capita for any national Olympic committee globally.

Mr Bushell was appointed to the Board of the Australian Sports Foundation on 28 January 2015, and resigned from his position due to unforeseen circumstances on 2 June 2015. He attended both meetings he was eligible to attend in that period.

Ms Sally Carbon OAM

Ms Carbon, an Olympic and World Cup gold medallist represented Australia in hockey at two Olympic Games and two World Cups.

Ms Carbon is the owner and director of Green Eleven Pty Ltd, holds a Bachelor of Arts with majors in physical education and mathematics, is a qualified strategic marketer, a company director and is a Fellow of the Australian Institute of Company Directors. She has published six books and three interactive educational resources and has had 26 years’ experience in the Australian media.

Ms Carbon has served on the Western Australian Sports Council Board, the Strategic Directions Board for the WA Education Department and is an active member of many foundation, sport, health and education boards in Western Australia.

Ms Carbon was appointed as a director of the Australian Sports Foundation on 7 May 2008 and is chair of its Audit Committee.

Ms Carbon attended all five Board meetings she was eligible to attend.

Mr Carbon’s appointment was extended during the year for a further three-year term on 30 April 2015.

Mr Joshua Liberman

Mr Liberman is the chair of LJCB Investment Group (LJCB), one of Australia’s largest private groups, with interests in petroleum and energy production, property, banking and finance, equities, funds and venture capital.

In Israel, LJCB helps controls the largest energy and petroleum company (Paz) and the fifth largest bank (the First International Bank).

LJCB is a founding shareholder of CVS Lane Capital Partners, an Australian property business specialising in innovative structuring and finance solutions. LJCB has been active in finance over the past decade, creating and investing in funds management businesses, private equity transactions, capital raisings and high-profile takeovers.

Early-stage investments have focused on technology and businesses which have had the potential to change the market and to become global leaders including SEEK, Looksmart, Hitwise and Ducere. LJCB is also a financing partner of Square Peg Capital, a leading Asia Pacific investor group in venture and growth stage online and technology companies.

In philanthropy, Mr Liberman sits on the board of the Australian Sports Foundation and is a founding director of the Ducere Foundation, which is active in 12 African countries.

Mr Liberman holds a Bachelor of Law and Commerce from Monash University.

Mr Liberman was appointed to the Board on 28 January 2015, and attended both Board meetings he was eligible to attend during the year.

Mr John Pearce

Mr Pearce was involved in the receivables management industry for 47 years prior to retirement in 2013. He was joint founder of listed company Collection House Limited and during the listed period of Collection House he held the positions of chief executive, managing director, deputy chair and chair of the company between 2000 and 2013.

Mr Pearce has had a keen interest in sport throughout his life, including a significant involvement in establishing The Peter Burge XI in partnership with Queensland Cricket, The Lethal Lions Coterie Group at The Brisbane Lions Football Club and the Bulls Masters in Queensland. Mr Pearce was Number 1 Ticket Holder of The Brisbane Lions from 2002 until 2008 and was appointed Patron of the Club in 2015. He is also the patron of The Brisbane Lions Foundation. He was appointed a life member of The Brisbane Lions in 2008.

Over the years Mr Pearce has founded The Brisbane Lions Foundation, The Financial Basics Foundation and The Rutherglen Cemetery Foundation, and is keenly interested in the philanthropic areas of sport, including financial support of The Queensland Sports Federation.

Mr Pearce wasappointed to the Board on 30 April 2015 and attended the one Board meeting he was eligible to attend.


Mr Ken Ryan AM

Ken Ryan worked for Qantas for 18 years in a variety of senior management positions, including regional general manager, Victoria and southern Australia; group general manager, marketing; head of corporate development; regional general manager South-East Asia, Qantas and British Airways; and chief executive, Jetstar Asia.

Mr Ryan holds a Bachelor of Commerce from Melbourne University and is a board member of the Australian Sports Commission, Victorian Major Events Corporation, Toll Holdings Limited and the Australian Grand Prix Corporation. He is also a former board member of Skiing Australia.

Mr Ryan was made a Member of the Order of Australia in 2012 for services to children’s and youth charitable organisations, tourism and sport.

Mr Ryan was appointed as a director of the Australian Sports Foundation on 6 March 2014 and was a member of its Audit Committee. He left the Board when his term ended on 30 September 2014. He attended the one Board meeting he was eligible to attend during this period.


Directors’ meetings

Five directors’ meetings and three Audit Committee meetings were held during the financial year. The number of meetings attended by each director of the Foundation during the financial year is:

Director
Board Meetings
Audit Committee Meetings
 

A

B

A

B

Mark Stockwell

5

5

-

-

Michael Bushell

2

2

-

-

Sally Carbon OAM

5

5

3

3

Josh Liberman

2

2

-

-

John Pearce

1

1

-

-

Ken Ryan AM

1

1

1

1

A - Number of meetings attended
B - Number of meetings held during the time the Director held office during the year

Principal activities

The principal activity of the Foundation during the course of the financial year was to raise money for the development of sport in Australia. To achieve this, the Foundation receives donations from individual and corporate philanthropists and distributions from ancillary funds and makes discretionary grants to eligible organisations in respect of sporting projects.

The Foundation’s administration has been supported by the ASC in past years but during 2014–15, it has been implementing a strategy working toward operational separation from the Commission. This project is nearly complete and the Foundation is operating independently with a commercial and service-orientated focus aimed at substantially increasing the amount of money donated to Australian sport.

Performance Measures

The Foundation’s role is to raise money for the development of sport in Australia, and its key objective is to achieve substantial growth in the amount of money donated. Achieving this growth requires an increase in the number of organisations that register to fundraise with the Foundation, and an increase in the effectiveness of fundraising campaigns. It also depends on increased awareness of its role and capabilities within the sport and community sector, and increased awareness of the benefits of donating to sport among the philanthropic community. Key performance indicators include the number of organisations that register with the Foundation and the amount of donations received. During the year, the Foundation grew the number of registered projects by over 20% to 779. Donations received increased from $17,451,000 to $24,517,000 – an increase of more than $7m (40%). The Foundation also monitors the effectiveness of its market reach among key sporting and philanthropic stakeholder groups.

Enabling legislation, objectives and functions inherent in that legislation

The Foundation’s enabling legislation is the Australian Sports Commission Act 1989. The objectives and functions of the Foundation inherent in the Act are that:

  • the purpose of the company is to raise money for the development of sport in Australia.
  • except to the extent necessary for the performance of its functions in relation to the Commission, the company is not empowered to do anything that the Commission is not empowered to do.

Organisational structure

The Foundation is a public company limited by guarantee in accordance with the Corporations Act 2001 and is a wholly-owned Commonwealth Company under the Public Governance Performance and Accountability Act 2013 (PGPA Act).

The Foundation began the year with three full-time employees, utilizing ongoing seconded staff from the Commission. As of 30 June 2015 the Foundation had 12 staff (11 full-time equivalents) and no longer utilizes staff seconded from the Commission.

Location of major activities and facilities

The Foundation operates from an office based at the Australian Institute of Sport campus in Canberra.

Factors, events or trends influencing performance

In past years the Foundation has received administrative and operational support from the Commission in order to enable it to fulfil its role. The year has seen the Foundation continue its transformation strategy that has led to operational separation from the Commission. The transformation has also achieved an increased focus on service delivery and engagement with major stakeholders and sporting organisations at all levels across Australia, as well as changes to its business model. 2015 is the first full year of this transformation strategy and the Foundation has achieved a significant increase in the number of registered projects and the value of donations received during the year.

Risks and opportunities in future years

Business activity is expected to continue trending upwards as a result of the transformation strategy. The Foundation has implemented a new constituent relationship management system and a new digital strategy, including social media and a new website with online donation capability to facilitate donations and streamline reporting processes. The Foundation’s fundraising capabilities will continue to be strengthened, and marketing and thought leadership programs will provide ongoing opportunities to increase the amount of money donated to sport.

From 1 July 2015, ongoing financial support will no longer be received from the Commission, and the Foundation will be implementing a new funding model. This model will involve the Foundation retaining a percentage of monies donated – ranging from 5 per cent to 6 per cent depending on the method of donation — in order to cover operating costs.

State of affairs

There were no significant changes in the state of affairs of the Foundation during the financial year. The Foundation continued implementation of its transformation strategy, and conducted a range of business development activities to sustain and increase its fundraising activities.

Review and results of operations

The operating profit for the year ended 30 June 2015 was $4,316,717 (2014: loss of $1,320,832). This reflects the substantial growth in donations achieved during the year, which increased by more than 40% to $24,517,000

Dividends

No dividends have been paid or declared during the year and no dividends are proposed. The Foundation is prohibited by its Memorandum and Articles of Association from making any distributions to its members.

Members’ funds

In the event of winding up, every member of the Foundation undertakes to contribute to the property of the Foundation up to an amount not exceeding $100. At 30 June 2015, the total amount that members are liable to contribute if the Foundation is wound up is $400 (2013: $300).

Significant developments since the end of the financial year

From 1 July 2015, ongoing financial support will no longer be received from the Australian Sports Commission, and the Foundation has implemented a new funding model. This model involves the Foundation retaining a percentage of monies donated – ranging from 5 per cent to 6 per cent depending on the method of donation – in order to cover its operating costs.

Future likely developments

In accordance with the transformation strategy implemented in the past two financial years, substantial changes have been made to the Foundation. These have included significant enhancement of its capabilities to raise money for sport, achieving operational independence from the ASC, and fundamental changes to its funding and operating model. Accordingly the focus in the next 12–18 months is to consolidate and embed these changes, and extend the Foundation’s engagement with the broader sporting and philanthropic communities to achieve continued growth in the amount of money donated to sport.

Environmental regulations

The Foundation’s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a state or territory.

Directors, the Audit and Remuneration Committees

The Federal Minister for Sport is responsible for appointing the Board of Directors. Mr Stockwell was appointed as chair from 1 July 2014 and Ms Carbon’s appointment as a director was renewed on 30 April 2015. Mr Ryan’s appointment concluded on 30 September 2014. Mr Liberman and Mr Bushell were appointed to the Board on 28 January 2015, with Mr Bushell resigning with effect from 2 June 2015 due to unforeseen circumstances. Mr Pearce was appointed to the Board on 30 April 2015.

Ms Carbon is Chair of the Audit Committee, and Mr Ryan was a member of the Audit Committee until 30 September. In accordance with the requirements of the PGPA Act, the Foundation has appointed three independent members of the Audit Committee for the 2016 financial year.

The Foundation does not have a Remuneration Committee.

Indemnities and insurance premiums for officers

The Foundation maintains directors’ and officers’ liability insurance and general liability insurance policies.

The Foundation indemnifies the retiring directors to the maximum extent permitted by law, against legal costs reasonably incurred in defending an action for a liability incurred as a director of the Foundation, unless the costs are incurred by the director in defending or resisting proceedings brought against the director by the Foundation. Each indemnity is a continuing obligation, separate and independent from the other obligations of the parties.

If the retiring director becomes liable to pay any amount for which they are indemnified, the Foundation must pay that amount within 30 days from receiving satisfactory evidence that the director is liable to pay that amount.

No person has applied for leave of Court to bring proceedings on behalf of the Foundation or to intervene in any proceedings to which the Foundation is a party for the purpose of taking responsibility on behalf of the Foundation for all or any part of those proceedings.

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

Auditor’s independence declaration

A copy of the Auditor's independence declaration in relation to the audit for the financial year is provided with this report.

Directors' benefits

Since the end of the previous financial year, no Director has received or become entitled to receive a benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors) by reason of the contract made by the Foundation or a related corporation with the Director or with a firm of which he or she is a member, or with a company in which he or she has a substantial financial interest. During the year the Foundation opted to pay directors fees to one director.

Sydney
26 August 2015

Signature

Mark Stockwell

Board Chair

Signature

Sally Carbon OAM

Director

Signed in accordance with the resolution of the directors.


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