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:

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

Signed in accordance with the resolution of the directors.