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Annual Report2019

A PROFITABLE AND SUSTAINABLE INDUSTRY SUPPLYING QUALITY AUSTRALIAN MACADAMIAS FOR A GLOBAL MARKET

Australian Macadamia Society Ltd

Mission

The Australian Macadamia Society Limited is established to promote all

aspects of the macadamia nut industry; to encourage a free interchange

of ideas and information amongst macadamia growers and marketers of

macadamia nuts and by-products; and to foster and promote goodwill among

members of the Society in furtherance of its objects.

ABN 19 010 689 415 AUSTRALIAN MACADAMIA SOCIETY ANNUAL REPORT 2019 3

Contents

Australian Macadamia Society Company Particulars 4

Chair’s Report 5

Highlights 7

Awards 8

Financial Report Directors’ Report 11

Auditor’s Independence Declaration 15

Consolidated Statement of Profit or Loss 16

and Other Comprehensive Income

Consolidated Statement of Financial Position 17

Consolidated Statement of Changes in Equity 18

Consolidated Statement of Cash Flows 19

Notes to the Financial Statements 20

Directors’ Declaration 34

Independent Auditor’s Report 35

Disclaimer 38

Detailed Profit and Loss Statement 39Our national communications program worked with ABC’s Landline program on an episode which featured the Australian macadamia industry. Pictured are growers Graeme (L) and Norm (R) Anderson and Chris Searle (MacAvo Consulting) who were interviewed on the program.

Front cover: Mackay Macadamias (formerly Red Eye Macadamias) orchard

Inside cover: The AMS hosted three nursery workshops for growers and nursery operators in Bundaberg and the Northern Rivers in March 2019. Pictured are the participants in the Northern Rivers production nursery workshop.

Celebrity chef Ben O’Donoghue was the star of the show at the AusMac2018 conference breakfast at Royal Pines. He’s pictured with growers Graham Wessling, Ray Norris and Chris Harte.

AUSTRALIAN MACADAMIA SOCIETY ANNUAL REPORT 2019 ABN 19 010 689 4154

Chair Richard Doggett E: [email protected] M: 0412 666 886

Larry McHugh E: [email protected] T: 02 6624 3900

Vice Chair Michael Waring E: [email protected] T: 03 9420 2900

Trevor Steinhardt E: [email protected] T: 07 4159 7265

Treasurer Craig Mills E: [email protected] M: 0412 679 796

Aimee Thomas E: [email protected] M: 0487 381 039

Graeme Fleming E: [email protected] M: 0414 281 699

Company Particulars

Auditors

Thomas Noble & Russell – 31 Keen St, Lismore NSW 2480

Chief Executive Officer Jolyon Burnett E: [email protected] M: 0416 224 935

Project Support/Memberships Co-ordinator Tamara Hepburn E: [email protected] T: 02 6622 4933

General Manager, Marketing Lynne Ziehlke E: [email protected] M: 0488 032 248

News Bulletin Editor Donella Andersen (part time) E: [email protected] M: 0447 080 161

Industry Development Manager Leoni Kojetin E: [email protected] M: 0433 007 925

Marketing and Communications Coordinator Sally Hoolihan (part time) E: [email protected] T: 02 6622 4933

Communications Manager Nyree Epplett (part time) E: [email protected] M: 0434 261 070

Administrative Assistant / Reception Melissa Loveday E: [email protected] T: 02 6622 4933

Business & Finance Manager Susan Vallis E: [email protected] M: 0431 151 979

Board of Directors AS AT 30 JUNE 2019

Staff AS AT 30 JUNE 2019


Chair’s Report

It is my pleasure to present the 2018-19 Annual Report for the Australian Macadamia Society. This has been another busy, productive year for the AMS and hopefully a profitable year for members.

2018 produced a record crop of just under 53,000 tonnes and for the 6th

year in a row farm gate prices were up. In the last 10 years we have seen average prices to growers increase from around $1.50/kg to over $5.50/kg. These favourable market conditions are the result of many factors, not the least the growing consumer awareness of the healthy attributes of a diet high in nuts. But a professional and effective levy-funded marketing program strongly supported by the processors has definitely played its part.

The second Innovation Challenge saw the opportunity to develop new products using macadamias opened up to the world and we are confident that some of the outstanding entries will find their way into our food stores before too long. I would like to thank Lynne Ziehlke, Sally Hoolihan and the Marketing Committee for their efforts.

To try and leverage this program the AMS has been instrumental in driving the establishment of the global Macadamia Council which aims to build international support for the development and collaborative funding of a global demand stimulation campaign. This will be critical if we are to find a home for the rapidly increasing global supply at prices not too dissimilar to those we are currently enjoying.

As always, the AMS has been there to protect members’ interests and to advocate for policy and legislation that support a prosperous macadamia industry. Together with other industry bodies in Bundaberg, the AMS campaigned to see the extinguishment of unconventional gas mining licences in Childers. We continued to help members manage their

The Australian Macadamias Innovation Challenge brought together the food industry’s most creative minds.

The industry conference at Royal Pines was a major success.

relationships with neighbours over crop protection practices and to work with governments at all levels on issues that affect our members, such as vegetation management under power poles, availability of labour, and initiatives around coastal catchments and the Great Barrier Reef.

We have continued to see modest but steady growth in memberships with grower members making up over 75% of the total membership of over 800. Pleasingly, the Society has also been able to grow members’ equity to close to $1 million, an indicator of the financial health of the organisation. Susan Vallis, Tamara Hepburn and Melissa Loveday have all made a huge contribution to the smooth running and continued success of the AMS office.

The 2018 AusMac conference attracted an average of 345 delegates each day, continuing the strong participation we saw in 2016 which included a large contingent of international delegates. The addition of the five practical workshops on Day 1 proved popular and were attended by 181 people and the golf day was also a success, with 47 people participating. A total of 71 exhibitors meant that delegates had plenty to see and consider over the 3-day event. As always we are greatly appreciative of all the sponsors without whose support and participation we would not be able to mount such a professional and successful event.

The Society launched the new industry website during the year aiming to provide better service to industry participants and AMS members alike. The research database was upgraded with a more user-friendly search capacity and a products and services register has been added. We have already seen a significant increase in users and page visits. Nyree Epplett has done an outstanding job of communicating with members and building the profile of the industry and the AMS. A new News Bulletin editor, Donella Andersen, has joined the team and is already looking for improvements to the iconic magazine, now in its fifth decade of production.


Chair’s Report

MacGroups continued to be well supported with a total of 1185 people attending one or more of the three rounds of MacGroups (Jul 18, Dec 18, Feb 19). A new addition was the MacGroup in Yamba in recognition of the strong growth in new orchards in that region. We also ran nursery workshops for growers and nursery owners, environmental monitoring workshops across three regions and new grower workshops in Bundaberg and the Northern Rivers. With funding through Hort Innovation and in a joint project with the Nursery & Garden Industry Australia, the macadamia industry has nursery tree standards for the first time. We hope that these will help drive a long-term improvement in nursery tree quality and ultimately in orchard productivity. Leoni Kojetin has injected new energy and ideas into the industry development program and her Herculean efforts are recognised and appreciated.

The AMS has also entered into partnership arrangements with two key and well-respected service providers; Rabobank and Sunsuper (formerly AustSafe Super). These companies provide essential services to the industry and through their support of the AMS allow us to deliver improved service to our members without increased costs. We greatly appreciate their support.

The Macadamia Conservation Trust has also had a busy year and credit goes to Denise Bond for taking on the important role. The Trust has taken on the commercialisation of the well-regarded new variety MCT1 with the royalties from sales going to the conservation program helping to provide some financial independence to the Trust and its work. Thanks also to the many dedicated volunteers that work with Denise.

The industry extension and development program remains a cornerstone of AMS activity. The program packages practical advice from research funded by the R&D levy through Hort Innovation, as well as information about the many innovations and practice improvements funded by others in the industry, and makes it available to levy payers.

Our collective congratulations go to AMS Deputy Chair Michael Waring who was elected in May to the prestigious position of Chair of the International Nut and Dried Fruits Council. This is the first time an Australian has held the role. It is recognition of the importance of Australian nut production in the global industry. Unfortunately, as a consequence of this and other significant responsibilities, Michael is stepping down as an AMS Director at the 2019 AGM. Our profound thanks to him for his work on behalf of members and the industry.

Congratulations also to Graeme Fleming and Craig Mills who have been re-elected as Directors and to Michael Russo on his election to the Board. My thanks to all my fellow Directors for their commitment and dedication to the Society and its members over the last year.

Finally, and as always, I would like to thank you, the members, for your continued support of your Society. The positive feedback we received, coupled with your continuing membership make being Chair of the AMS an absolute privilege and pleasure.

Richard Doggett AMS Chair

The AMS held its first ever MacGroup in Yamba.

AMS director Michael Waring was appointed Chair of the INC Board of Trustees.


Highlights

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AMS MacGroups continued to be a key platform for the delivery of the latest research and development.

The AMS coordinated a tour of the China macadamia industry.

The AMS continued to work with key industry partners like the NSW DPI and DAFQ.

Ian McConachie addresses the International Macadamia Symposium on the importance of wild macadamia conservation.

The nursery workshop in Bundaberg proved very popular.

The industry communications program is committed to promoting our industry to the communities in which we operate.


Awards

Ian McConachie’s enormous contribution was recognised at the Australian Macadamia Conference in November 2018, when he received the industry’s most prestigious award – the Norm Greber Award.

Just about anyone who has anything to do with the macadamia industry knows or has heard of Ian, who has for almost half a century been a key player in helping to establish and grow the macadamia industry in Australia.

The award joins a list of honours for Ian, including the 1994 Golden Nut award from the International Nut Council, a Member of the Order of Australia (AM) for services to the industry in 2006 and becoming Honorary Senior Fellow of the University of the Sunshine Coast in 2014.

Ian’s many achievements include 45 years membership of the society. In his early years in the industry, Ian helped establish orchards as well as being involved in setting up Suncoast Gold in 1974.

But it is perhaps his work in researching macadamias varieties and ensuring conservation of wild macadamias that will in the future be viewed as his most significant contribution.

“Years ago, Ian selected a promising variety MCT1 from a range of material he accessed from the Queensland Department. After patient evaluation since, Ian and his wife Jan have now gifted the variety to the Macadamia Conservation Trust and over the last year he has worked tirelessly to release the variety to industry, with all profits going to the Trust,” said AMS Chair Richard Doggett.

There are great hopes in the industry for MCT1, for which sales have already been strong. This should provide a long-term income base for the Macadamia Conservation Trust.

And it is not an exaggeration to say that without Ian’s hard work the Trust would be much less an organisation than it is now. He was responsible for maintaining the Trust’s status as a Registered Environmental Organisation and a Deductible Gift Recipient thus allowing all donations to be tax deductible.

Ian and the Trust were also recognised at the 2018 International Macadamia Symposium in China with awards for his personal contribution and for the work of the Conservation Trust. These awards also reflected well on the Australian industry and our global leadership.

“Ian also continues to be relentless in his advocacy of the importance of quality in the Australian industry and many of you will have received one of his sermons on this important topic,” said Mr. Doggett, adding that there was no better recipient than Ian, who is “cast in the same mould as the award’s founder and has probably contributed equally as much to the Australian industry”.

Well-deserved Norm Greber award for industry pioneer

Central Queensland winners L to R: John Vaughn (Macadamias Australia), Jolyon Burnett (AMS), Scott Allcott (Macadamia Farm Management), Josh Steinhardt (Macadamias Australia) and Earl Yandall (Hinkler Park Plantations)

Ian McConachie (left) receives the prestigious Norm Greber Award, presented by AMS Chair Richard Doggett.

Phil Primrose (Northern Rivers – Best Productivity – Small Farms)

The Dorey family (Northern Rivers – Best Quality – Large Farms)

Mid North Coast winners and finalists L to R: Tim Zeck, Victoria Thynne, Noah Seccombe, Denise & Peter Ranking


Awards

AMS Awards of ExcellenceMacadamia growers in all growing regions were honoured in the 2018 AMS Awards of Excellence.

Finalists in the awards were shortlisted by the QDAF Benchmarking Team using yield and quality data collected from the 2018 season. The awards were separated into small and large farms. Small farms were classified as over 5 hectares and less than 30 hectares. Large farms were classified as more than 30 hectares. The overall winner will be announced at the AGM in November 2019. Regional winners are listed to the right (orchard name or business is in brackets). Congratulations to all!

Mid North Coast NSW

Best Productivity Large Farms – Victoria Thynne (Elanora) 1.73 Tonnes/Ha SKR Small Farms – Peter & Denise Ranking (Caves) 1.81 Tonnes/Ha SKR

Best Quality Large Farms – Victoria Thynne (Elanora) 1.44% RKR Small Farms – Tim Zeck & Dru Marshall (Wirrimbi) 0.9% RKR

Northern Rivers NSW

Best Productivity Large Farms – David & Sharon Wardrop (Wardrop Family Trust) 1.75 Tonnes/Ha SKR Small Farms – Phil Primrose (Primrose-Levi Farm) 2.36 Tonnes/Ha SKR

Best Quality Large Farms – Tim Dorey & Sons (Young bearing trees) 0.5% RKR Small Farms – Steven Starkey (SW & JL Starkey) 0.63% RKR

Glass House Region

Best Productivity Small Farms – Gary & Julie Davis (Glendamia Park) 2.68 Tonnes/Ha SKR Large Farms – Mike Cooper (Mr Macadamia) 2.09 Tonnes/Ha SKR

Best Quality Small Farms – Vince & Dianne Vere (Vere) 0.66% RKR Large Farms – Mike Cooper (Mr Macadamia) 1.03% RKR

Gympie Region

Best Productivity Small Farms – Paul & Deanne Ryan (Green Acres) 2.24 Tonnes/Ha SKR Large Farms – Tim Salmon (Benworth Plantation) 1.95 Tonnes/Ha SKR

Best Quality Small Farms – Paul & Deanne Ryan (Green Acres) 0.8% RKR Large Farms – Ian & Candy Johnson (Downsfield) 1.03% RKR

Central QLD

Best Productivity Small Farms – Macadamia Farm Management (Classic Park) 1.64 Tonnes/Ha SKR Large Farms – Hinkler Park Plantations (HPP South Bundaberg) 1.82 Tonnes/Ha SKR

Best Quality Small Farms – Macadamia Farm Management (Cambewarra) 0.94% RKR Large Farms – Macadamias Australia, 1.35% RKR

Mike Cooper (Glass House Mountains – Best Productivity & Best Quality – Large Farms)

David Wardrop (Northern Rivers - Best Productivity – Large Farms)

Tim Salmon (Gympie – Best Productivity – Large Farms)

Paul & Deanne Ryan (Gympie – Best Productivity & Best Quality – Small Farms)

Ian and Candy Johnson (Gympie – Best Quality – Large Farms)

Financial StatementsFOR THE YEAR ENDED 30 JUNE 2019

Directors’ Report 11

Auditor’s Independence Declaration 15

Consolidate Statement of Profit or Loss 16

and Other Comprehensive Income

Consolidated Statement of Financial Position 17

Consolidated Statement of Changes in Equity 18

Consolidated Statement of Cash Flows 19

Notes to the Financial Statements 20

Directors’ Declaration 34

Independent Auditor’s Report 35

Disclaimer 38

Detailed Profit and Loss Statement 39


Directors’ ReportFOR THE YEAR ENDED 30 JUNE 2019

Australian Macadamia Society Limited

ABN 19 010 689 415

Directors' ReportFor the Year Ended 30 June 2019

The directors present their report, together with the consolidated financial statements of the Group, being AustralianMacadamia Society Limited ("the Company") and its controlled entities, for the financial year ended 30 June 2019.

Information on directors

The names of each person who has been a director during the year and to the date of this report are:

Aimee Thomas

Qualifications

Experience

Special responsibilities

Craig Mills

Qualifications

Experience


Lawrence "Larry" McHugh

Qualifications Experience


Appointed 25 October 2017

Bachelor of Education, Certificate in Nutrition Farming

Macadamia growerExtensive experience in agricultural business development and operations

Director


Bachelor of Business (Marketing) and Masters of Business AdministrationGraduated from Hawkesbury Agricultural College with a major in Food Science

Macadamia growerCEO in agricultural-based businesses for more than 15 years Extensive career in food manufacturing and marketing Demonstrated success in strategic planning, international business development (predominantly in Asia), entrepreneurship and transformational changeFellow of Institute of Company Directors

Director, Treasurer, Audit Committee Chair

Appointed 22 January 2015 Diploma Production Engineering Consulting and management of macadamia farms 31 years Co-founder/previous executive director of a macadamia processor Macadamia grower 28 years Involvement in Landcare projects Member of industry reference and grower trial groups Director

Appointed 28 November 2012 Bachelor of Mechanical Engineering Macadamia factory design, management and kernel marketing since 1992 Member, macadamia industry marketing committee Director, Audit Committee

Graeme Fleming

Qualifications

Experience


1




ABN 19 010 689 415


Information on directors (continued)

Michael Waring

Experience


Richard Doggett

Qualifications

Experience


Trevor Steinhardt

Experience

Appointed 7 November 2013

Macadamia processor/handler and growerActive participant in domestic and international food and trade organisationsMember, macadamia industry marketing committee31 years marketing, sales, processing and procurement all nuts, dried fruit, coconutFounding member, Management Committee of Nuts for Life Australia Deputy Chairman, Member of Board Trustees and Chair of International Nut and Dried Fruit Foundation (Council) INCDeputy Chairman, Australian Cashew AssociationMember, Australian Institute of Company Directors

Deputy Chair, Director

Appointed 10 November 2010

Graduate, Australian Institute of Company Directors

Macadamia grower, Bexhill NSWMember, Australian Institute of Company DirectorsInternational and domestic business development, marketing and strategic alliances

Chair, Director, Audit Committee


Macadamia grower and marketerOver 30 years experience in the horticulture industry, sales, marketing and distributionFormer Board member, Bundaberg Fruit and Vegetable Growers Association and Melbourne Tomato CommitteeMember, macadamia industry marketing committee

Special responsibilities Director

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Company secretary

Susan Vallis held the position of Company Secretary at the end of the financial year. Susan has held this positionsince 26 October 2017.

Principal activities

The principal activities of the Group during the financial year were the development and promotion of the Macadamianut industry.

No significant change in the nature of these activities occurred during the year.

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ABN 19 010 689 415


Strategy for achieving the objectives

The Company expects modest growth in membership due to high existing levels. Service delivery to members andindustry is expected to increase as global demand and strong prices for macadamias drive continued industry growth.Continued regular engagement with commercial entities in Australia and with industry bodies internationally isenvisaged.

The Company remains dependent on grants through Horticulture Innovation Australia Ltd to fund much of themarketing and industry development activities it undertakes. Opportunities for the Company to identify alternativepartners in R&D and marketing are limited due to statutory levy arrangements.

The overall purpose of the Company remains to contribute to the improvement of the profitability and sustainability ofmembers and to develop the industry through:

Promoting the industry and its products in Australia and internationally;

Fostering an operating environment favourable to macadamia production and value adding;

Increasing industry engagement with and ownership of R&D and marketing; and

Building membership and diversifying income sources.

Members guarantee

Australian Macadamia Society Limited is a company limited by guarantee. In the event of, and for the purpose ofwinding up of the company, the amount capable of being called up from each member and any person or associationwho ceased to be a member in the year prior to the winding up, is limited to $10 for all members, subject to theprovisions of the Company's constitution.

Membership Class Number of Members Individual MembersContribution onWinding Up of

Company

Total MembersContribution onWinding Up of

Company$ $

Class A1 members 471 10 4,710Class A2 members 32 10 320Class A3 members 9 10 90Class A4 members 1 10 10Class A6 life members 6 - -Class B1 members 71 10 710Class B2 members 15 10 150Class B3 members 15 10 150Class B4 members 2 10 20Class C1 student members 1 10 10Class C2 overseas members 10 10 100Class C3 individual members 22 10 220Class C4 organisation members 2 10 20Additional financial contacts (sub members) 149 - -Total 806 6,510

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Auditor’s Independence Declaration


Consolidated Statement of Profit or Loss and Other Comprehensive IncomeFOR THE YEAR ENDED 30 JUNE 2019

The accompanying notes form part of these financial statements.


ABN 19 010 689 415

Consolidated Statement of Profit or Loss and Other ComprehensiveIncomeFor the Year Ended 30 June 2019

Note

2019

$

2018

$

Revenue 5 2,414,581 1,509,491

Administration and management fees (167,889) (144,039)

Project expenses 6 (588,396) (367,366)

Occupancy expenses (68,947) (65,067)

Employee benefits expense (902,086) (773,586)

Depreciation and amortisation expense 6 (21,095) (10,943)

Conference expenses (332,634) -

Other expenses (70,640) (49,062)

Profit/(loss) before income tax 262,894 99,428

Income tax expense 3(b) - -

Net profit/(loss) for the year 262,894 99,428

Other comprehensive income, net of income tax

Items that will not be reclassified subsequently to profit or loss - -

Items that will be reclassified to profit or loss when specific conditions are met - -

Total comprehensive income for the year 262,894 99,428

The accompanying notes form part of these financial statements.6


Consolidated Statement of Financial PositionFOR THE YEAR ENDED 30 JUNE 2019



ABN 19 010 689 415

Consolidated Statement of Financial PositionAs At 30 June 2019

Note

2019

$

2018

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 7 882,021 1,352,617

Trade and other receivables 8 121,141 178,201

Inventories 9 7,376 5,790

Other financial assets 10 900,000 -

Other assets 11 143,985 187,242

TOTAL CURRENT ASSETS 2,054,523 1,723,850

NON-CURRENT ASSETS

Property, plant and equipment 12 18,972 18,572

Intangible assets 13 33,261 44,824

TOTAL NON-CURRENT ASSETS 52,233 63,396

TOTAL ASSETS 2,106,756 1,787,246

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 14 256,688 208,602

Employee benefits 15 132,019 84,597

Other liabilities 16 492,266 512,743

TOTAL CURRENT LIABILITIES 880,973 805,942

NON-CURRENT LIABILITIES

Employee benefits 15 12,132 30,547

TOTAL NON-CURRENT LIABILITIES 12,132 30,547

TOTAL LIABILITIES 893,105 836,489

NET ASSETS 1,213,651 950,757

EQUITY

Retained earnings 1,213,651 950,757

TOTAL EQUITY 1,213,651 950,757



Consolidated Statement of Changes in EquityFOR THE YEAR ENDED 30 JUNE 2019



ABN 19 010 689 415

Consolidated Statement of Changes in EquityFor the Year Ended 30 June 2019

2019

RetainedEarnings

$

Total

$

Balance at 1 July 2018 950,757 950,757


Balance at 30 June 2019 1,213,651 1,213,651

2018

RetainedEarnings

$

Total

$

Balance at 1 July 2017 851,329 851,329


Balance at 30 June 2018 950,757 950,757



Consolidated Statement of Cash FlowsFOR THE YEAR ENDED 30 JUNE 2019



ABN 19 010 689 415

Consolidated Statement of Cash FlowsFor the Year Ended 30 June 2019

Note

2019

$

2018

$

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers 2,434,667 1,338,596

Payments to suppliers and employees (2,007,393) (1,322,818)

Interest received 12,061 9,499

Net cash provided by/(used in) operating activities 439,335 25,277

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of plant and equipment (9,931) (4,591)

Purchase of intangible assets - (48,500)

Purchase of financial assets (900,000) -

Net cash used by investing activities (909,931) (53,091)

Net increase/(decrease) in cash and cash equivalents held (470,596) (27,814)

Cash and cash equivalents at beginning of year 1,352,617 1,380,431

Cash and cash equivalents at end of financial year 7(a) 882,021 1,352,617



Notes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2019


ABN 19 010 689 415

Notes to the Financial StatementsFor the Year Ended 30 June 2019

The consolidated financial report covers Australian Macadamia Society Limited and its controlled entity ('the Group').Australian Macadamia Society Limited is a not-for-profit company limited by guarantee, incorporated and domiciled inAustralia.

Each of the entities within the Group prepare their financial statements based on the currency of the primary economicenvironment in which the entity operates (functional currency). The consolidated financial statements are presented inAustralian dollars which is the parent entity’s functional and presentation currency.

The financial report was authorised for issue by the Directors on 23 September 2019.

Comparatives are consistent with prior years, unless otherwise stated.

1 Basis of Preparation

The financial statements are general purpose financial statements that have been prepared in accordance with theAustralian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001, as appropriatefor not-for-profit oriented entities.

The financial statements, except for the cash flow information, have been prepared on an accruals basis and arebased on historical costs modified, where applicable, by the measurement at fair value of selected non-current assets,financial assets and financial liabilities.

Significant accounting policies adopted in the preparation of these financial statements are presented below and areconsistent with prior reporting periods unless otherwise stated.

2 Change in Accounting Policy

Financial Instruments - Adoption of AASB 9

The Group has adopted AASB 9 from 1 July 2018. The standard introduced new classification and measurementmodels for financial assets.

A debt investment shall be measured at amortised cost if it is held within a business model whose objective is to holdassets in order to collect contractual cash flows which arise on specified dates and that are solely principal andinterest.

A debt investment shall be measured at fair value through other comprehensive income if it is held within a businessmodel whose objective is to both hold assets in order to collect contractual cash flows which arise on specified datesthat are solely principal and interest as well as selling the asset on the basis of its fair value.

All other financial assets are classified and measured at fair value through profit or loss unless the Group makes anirrevocable election on initial recognition to present gains and losses on equity instruments (that are not held-for-trading or contingent consideration recognised in a business combination) in other comprehensive income ('OCI').

Despite these requirements, a financial asset may be irrevocably designated as measured at fair value through profitor loss to reduce the effect of, or eliminate, an accounting mismatch.

New impairment requirements use an 'expected credit loss' ('ECL') model to recognise an allowance. Impairment ismeasured using a 12-month ECL method unless the credit risk on a financial instrument has increased significantlysince initial recognition, in which case the lifetime ECL method is adopted. For receivables, a simplified approach tomeasuring expected credit losses using a lifetime expected loss allowance is available.

There has been no impact on the financial performance and position of the Group from the adoption of AASB 9Financial Instruments.

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ABN 19 010 689 415


3 Summary of Significant Accounting Policies

(a) Basis for consolidation

The consolidated financial statements include the financial position and performance of controlled entities fromthe date on which control is obtained until the date that control is lost.

Intragroup assets, liabilities, equity, income, expenses and cashflows relating to transactions between entitiesin the consolidated entity have been eliminated in full for the purpose of these financial statements.

Appropriate adjustments have been made to a controlled entity’s financial position, performance and cash flowswhere the accounting policies used by that entity were different from those adopted by the consolidated entity.All controlled entities have a June financial year end.

A list of controlled entities is contained in Note 18 to the financial statements.

Subsidiaries

Subsidiaries are all entities (including structured entities) over which the parent has control. Control isestablished when the parent is exposed to, or has rights to variable returns from its involvement with the entityand has the ability to affect those returns through its power to direct the relevant activities of the entity.

Recognition of control of Macadamia Conservation Trust

The Directors have identified that the Australian Macadamia Society Limited controls the MacadamiaConservation Trust (MCT). This requires consolidated financial reports to be prepared.

(b) Income Tax

The Company is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

(c) Revenue and other income

Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economicbenefits associated with the transaction will flow to the Group and specific criteria relating to the type of revenueas noted below, has been satisfied.

Revenue is measured at the fair value of the consideration received or receivable and is presented net ofreturns, discounts and rebates.

All revenue is stated net of the amount of goods and services tax (GST).

Sale of goods

Revenue is recognised on transfer of goods to the customer as this is deemed to be the point in time whenrisks and rewards are transferred and there is no longer any ownership or effective control over the goods.

Grant revenue

Grant revenue is recognised in the consolidated statement of profit or loss and other comprehensive incomewhen the entity obtains control of the grant, it is probable that the economic benefits gained from the grant willflow to the entity and the amount of the grant can be measured reliably.

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ABN 19 010 689 415


3 Summary of Significant Accounting Policies (continued)

(c) Revenue and other income (continued)

Grant revenue (continued)

When grant revenue is received whereby the entity incurs an obligation to deliver economic value directly backto the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in theconsolidated statement of financial position as a liability until the service has been delivered to the contributor,otherwise the grant is recognised as income on receipt.

Interest revenue

Interest is recognised using the effective interest method, which for floating rate financial assets is the rateinherent in the instrument.

Subscriptions

Revenue from the provision of membership subscriptions is recognised on a straight line basis over thefinancial year.

(d) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which arereadily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

Bank overdrafts also form part of cash equivalents for the purpose of the consolidated statement of cash flowsand are presented within current liabilities on the consolidated statement of financial position.

(e) Trade and other receivables

Trade and other receivables include amounts due from customers for goods sold and services performed in theordinary course of business. Receivables expected to be collected within 12 months of the end of the reportingperiod are classified as current asset. All other receivables are classified as non-current assets.

Trade and other receivables are initially recognised at fair value and subsequently measured at amortised costusing the effective interest rate method, less any provision for impairment.

(f) Inventories

Inventories are measured at the lower of cost and net realisable value. Cost of inventory is determined usingthe first-in-first-out basis and is net of any rebates and discounts received.

(g) Property, plant and equipment

Each class of property, plant and equipment is carried at cost less, where applicable, any accumulateddepreciation and impairment.

Costs include purchase price, other directly attributable costs and the initial estimate of the costs of dismantlingand restoring the asset, where applicable.

12




ABN 19 010 689 415



(g) Property, plant and equipment (continued)

Items of property, plant and equipment acquired for nil or nominal consideration have been recorded at theacquisition date fair value.

Depreciation

Property, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the assetsuseful life to the Group, commencing when the asset is ready for use.

The depreciation rates used for each class of depreciable asset are shown below:

Fixed asset class Depreciation rate

Plant and Equipment 15 - 25%

Furniture, Fixtures and Fittings 7.5% - 10%

Computer Equipment 15 - 33%

At the end of each annual reporting period, the depreciation method, useful life and residual value of each assetis reviewed. Any revisions are accounted for prospectively as a change in estimate.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gainsor losses are included in the consolidated statement of profit or loss and other comprehensive income.

(h) Intangibles

Amortisation

Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of intangibleassets, other than goodwill, from the date that they are available for use.

Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted ifappropriate.

Software

Software has a finite life and is carried at cost less any accumulated amortisation and impairment losses. Theamortisation rate is 25% calculated on a straight line basis.

(i) Impairment of non-financial assets

At the end of each reporting period the Group determines whether there is any evidence of impairment for itsnon-financial assets.

Where this indicator exists and regardless for goodwill, indefinite life intangible assets and intangible assets notyet available for use, the recoverable amount of the asset is estimated.

Where assets do not operate independently of other assets, the recoverable amount of the relevant cash-generating unit (CGU) is estimated.

13




ABN 19 010 689 415



(i) Impairment of non-financial assets (continued)

The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal and the valuein use. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit.

Where the recoverable amount is less than the carrying amount, an impairment loss is recognised in profit orloss.

Reversal indicators are considered in subsequent periods for all assets which have suffered an impairmentloss, except for goodwill.

(j) Trade and other payables

Trade and other payables represent the liability outstanding at the end of the reporting period for goods andservices received by the Group during the reporting period, which remain unpaid. The balance is recognised asa current liability with the amounts normally paid within 30 days of recognition of the liability.

(k) Employee benefits

Provision is made for the Group's liability for employee benefits arising from services rendered by employees tothe end of the reporting period. Employee benefits that are expected to be wholly settled within one year havebeen measured at the amounts expected to be paid when the liability is settled.

Employee benefits expected to be settled more than one year after the end of the reporting period have beenmeasured at the present value of the estimated future cash outflows to be made for those benefits. Indetermining the liability, consideration is given to employee wage increases and the probability that theemployee may satisfy vesting requirements.

(l) Economic dependence

Australian Macadamia Society Limited is dependent on Horticulture Innovation Australia Limited (HIAL) for themajority of its revenue used to operate the business. At the date of this report the directors have no reason tobelieve the Horticulture Innovation Australia Limited (HIAL) will not continue to support Australian MacadamiaSociety Limited.

(m) Goods and services tax (GST)

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), exceptwhere the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payables are stated inclusive of GST.

The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payablesin the consolidated statement of financial position.

Cash flows in the consolidated statement of cash flows are included on a gross basis and the GST componentof cash flows arising from investing and financing activities which is recoverable from, or payable to, thetaxation authority is classified as operating cash flows.

14




ABN 19 010 689 415



(n) Adoption of new and revised accounting standards

The Group has adopted all standards which became effective for the first time at 1 July 2018. The adoption ofthese standards has had no impact on the reporting financial position, performance or cash flow of the Group.Refer to Note 2 for details on changes in accounting policies due to the adoption of AASB 9.

(o) New accounting standards for application in future periods

The AASB has issued new and amended Accounting Standards and Interpretations that have mandatoryapplication dates for future reporting periods. The directors have decided against early adoption of theseStandards, but does not expect the adoption of these standards to have a material impact on the reportedposition or performance of the Group.

4 Critical Accounting Estimates and Judgements

The directors make estimates and judgements during the preparation of these Consolidated financial statementsregarding assumptions about current and future events affecting transactions and balances.

These estimates and judgements are based on the best information available at the time of preparing the financialstatements, however as additional information is known then the actual results may differ from the estimates.

The significant estimates and judgements made have been described below.

Estimation of useful lives of assets

The Group determines the estimated useful lives and related depreciation and amortisation charges for its property,plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technicalinnovations or some other event. The depreciation and amortisation charge will increase where the useful lives areless than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or soldwill be written off or written down.

Employee benefits provision

As discussed in Note 3(k), the liability for employee benefits expected to be settled more than 12 months from thereporting date are recognised and measured at the present value of the estimated future cash flows to be made inrespect of all employees at the reporting date. In determining the present value of the liability, estimates of attritionrates and pay increases through promotion and inflation have been taken into account.

15




ABN 19 010 689 415


5 Revenue

Note

2019

$

2018

$

Advertising Commissions received Corporate sponsorship Conference income Donations and fundraising income Kernel laboratory accreditation scheme voluntary contributions Project grant income Project income - other Royalty income Saleable items Subscriptions Sundry income Workshops income Interest received from other persons

Total revenue

121,472 119,179

93,759 83,196

79,900 58,600

460,391 -

23,875 70,101

35,153 24,486

1,206,030 783,722

5,197 99,679

72,688 -

26,314 10,944

219,166 212,886

31,350 37,199

27,225 -

12,061 9,499

2,414,581 1,509,491

6 Result for the Year

Significant expenses:

Depreciation and Amortisation:

Depreciation expense - plant and equipment 9,532 9,517

Amortisation - computer software 11,563 1,426

Total Depreciation and Amortisation 21,095 10,943

Project expenses 588,396 367,366

Provision for employee entitlements 35,087 (6,346)

Rent 34,582 33,926

Salary and wages 791,780 713,035

Superannuation contributions 75,219 66,897

7 Cash and Cash Equivalents

Cash on hand 460 860

Cash at bank 881,561 1,351,757

Total cash and cash equivalents 7(a) 882,021 1,352,617

(a) Reconciliation of cash

Cash and cash equivalents reported in the consolidated statement ofcash flows are reconciled to the equivalent items in the consolidatedstatement of financial position as follows:

Cash and cash equivalents 7 882,021 1,352,617

Balance as per consolidated statement of cash flows 882,021 1,352,617

16




ABN 19 010 689 415


8 Trade and Other Receivables

2019

$

2018

$

At amortised cost

CURRENT

Sundry debtors - projects 12,238 98,607

Sundry debtors 108,903 79,581

Other receivables - 13

Total current trade and other receivables 121,141 178,201

9 Inventories

CURRENT

At cost:

Finished goods 7,376 5,790

Total current inventories 7,376 5,790

10 Other Financial Assets

At amortised cost

CURRENT

Term deposits 900,000 -

Total current other financial assets 900,000 -

11 Other Assets

CURRENT

Prepayments 5,731 53,423

Accrued income 138,254 133,819

Total current other assets 143,985 187,242

12 Plant and equipment

Plant and equipment

At cost 148,474 147,047

Accumulated depreciation (129,502) (128,475)

Total plant and equipment 18,972 18,572

Total property, plant and equipment 18,972 18,572

17




ABN 19 010 689 415


12 Plant and equipment (continued)

(a) Movements in Carrying Amounts

Movement in the carrying amounts for each class of property, plant and equipment between the beginning andthe end of the current financial year:

Consolidated

Plant andEquipment

$

Total

$

Year ended 30 June 2019

Balance at the beginning of year 18,572 18,572

Additions 9,932 9,932

Depreciation expense (9,532) (9,532)

Balance at the end of the year 18,972 18,972

13 Intangible Assets

2019

$

2018

$

Computer software

Cost 46,250 46,250

Accumulated amortisation and impairment (12,989) (1,426)

Net carrying value 33,261 44,824

Total intangibles 33,261 44,824

(a) Movements in carrying amounts

ComputerSoftware

$

Total

$

Year ended 30 June 2019

Balance at the beginning of the year 44,824 44,824

Amortisation (11,563) (11,563)

Closing value at 30 June 2019 33,261 33,261

18




ABN 19 010 689 415


14 Trade and other payables

2019

$

2018

$

At amortised cost

CURRENT

Trade payables 133,304 69,863

GST payable 50,957 40,671

Payroll liabilities 24,203 21,861

Accrued expenses 48,224 76,207

Total current trade and other payables 256,688 208,602

15 Employee Benefits

CURRENT

Long service leave 68,222 32,815

Annual leave 63,797 51,782

Total current employee benefits 132,019 84,597

NON-CURRENT

Long service leave 12,132 30,547

Total non-current employee benefits 12,132 30,547

Provision for employee benefits

A provision has been recognised for employee entitlements relating to annual and long service leave. In calculating thepresent value of future cash flows in respect of long service leave, the probability of long service leave being taken isbased on historical data. The measurement and recognition criteria relating to employee benefits has been included inNote 3(k) to this report.

16 Other Liabilities

CURRENT

Subscriptions in advance 193,365 140,757

Unexpended grant funds 118,512 186,842

Unexpended contributions 102,676 102,677

Income in advance 77,713 82,467

Total current other liabilities 492,266 512,743

19




ABN 19 010 689 415


17 Financial Risk Management

The Group's financial instruments consist mainly of deposits with banks, trade and other receivables and trade andother payables.

The totals for each category of financial instruments, measured in accordance with AASB 9 as detailed in theaccounting policies to these consolidated financial statements, are as follows:

Note

2019

$

2018

$

Financial Assets

Financial assets at amortised cost:

- Cash and cash equivalents 7 882,021 1,352,617

- Term deposits 10 900,000 -

- Trade and other receivables 8 121,141 178,201

Total financial assets 1,903,162 1,530,818

Financial Liabilities

Financial liabilities at amortised cost

- Trade and other payables 14 256,688 208,602

Total financial liabilities 256,688 208,602

18 Interests in Subsidiaries

Composition of the Group

Principal place ofbusiness / Country ofIncorporation

PercentageOwned (%)*

2019

PercentageOwned (%)*

2018

Subsidiaries:

Macadamia Conservation Trust Australia 100 100

*The percentage of ownership interest held is equivalent to the percentage voting rights for all subsidiaries.

Macadamia Conservation Trust

The Australian Macadamia Society Limited ("the Company") acts as trustee for the Macadamia Conservation Trust("the Trust") which was established to support and conserve the wild macadamia trees.

The Company has a right of indemnity out of the assets of the Trust for liabilities incurred by the Company acting in thecapacity of trustee.

The assets of the Trust, which lie behind the right of indemnity, are not directly available to meet any liabilities of theCompany acting in its own right.

The assets of the Trust were sufficient to discharge all the liabilities of the Trust at 30 June 2019 and 30 June 2018.

20




ABN 19 010 689 415


19 Capital and Leasing Commitments

(a) Operating lease commitments

2019

$

2018

$

Minimum lease payments under non-cancellable operating leases:

- not later than one year 38,461 18,214

- between one year and five years 63,432 7,182

Total operating lease commitments 101,893 25,396

There is one operating lease that relates to rental of premises known as Shop 1, 3 and 4 at 113 Dawson Street,Lismore. The commencement date is 9 December 2018 and the termination date is 8 December 2021. Thelease has an option to renew for a further 3 years. Rent payments are made on a monthly basis.

The other operating lease relates to the rental of the Fuji Xerox Docu Centre VII 3373 photocopier. Thecommencement of the agreement is 18 February 2019 and termination date is 18 February 2024.

(b) Capital commitments

As at 30 June 2019, the Group had not engaged in any capital commitments (30 June 2018: None).

20 Auditor's Remuneration

Remuneration of the auditor for:

- auditing or reviewing the financial statements 17,160 16,780

- other services 3,200 3,100

Total auditors' remuneration 20,360 19,880

21 Key Management Personnel Disclosures

The total remuneration paid to key management personnel of the Company and the Group is $310,263 (2018:$297,071).

Other key management personnel transactions

For details of other transactions with key management personnel, refer to Note 22 Related Parties.

21




ABN 19 010 689 415


22 Related Parties

(a) The Group's main related parties are as follows:

(i) Key management personnel:

Any person(s) having authority and responsibility for planning, directing and controlling the activities of theentity, directly or indirectly, including any director (whether executive or otherwise) of that entity are consideredkey management personnel.

For details of remuneration disclosures relating to key management personnel, refer to Note 21 KeyManagement Personnel Disclosures.

Other transactions with KMP and their related entities are shown below.

(ii) Other related parties:

Other related parties include close family members of key management personnel and entities that arecontrolled or significantly influenced by those key management personnel or their close family members.

(b) Transactions with related parties

Transactions between related parties are on normal commercial terms and conditions no more favourable thanthose available to other parties unless otherwise stated.

There were no identified transactions with related parties except for the remuneration of key managementpersonnel disclosed in Note 21 Key Management Personnel Disclosures.

23 Members' Guarantee

The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If theCompany is wound up, the constitution states that each member is required to contribute a maximum of $10 eachtowards meeting any outstandings and obligations of the Company. At 30 June 2019 the number of members was 806(2018: 779).

24 Events after the end of the Reporting Period

No matters or circumstances have arisen since the end of the financial year which significantly affected or maysignificantly affect the operations of the Group, the results of those operations or the state of affairs of the Group infuture financial years.

25 Contingencies

In the opinion of the Directors, the Company did not have any contingencies at 30 June 2019 (30 June 2018: None).

22




ABN 19 010 689 415


26 Parent entity

The following information has been extracted from the books and records of the parent, Australian Macadamia SocietyLimited and has been prepared in accordance with Accounting Standards.

The financial information for the parent entity, Australian Macadamia Society Limited has been prepared on the samebasis as the consolidated financial statements except as disclosed below.

2019

$

2018

$

Statement of Financial Position

Assets

Current assets 1,904,456 1,632,378

Non-current assets 52,233 63,397

Total Assets 1,956,689 1,695,775

Liabilities

Current liabilities 907,693 802,891

Non-current liabilities 12,132 30,547

Total Liabilities 919,825 833,438

Equity

Retained earnings 1,036,864 862,337

Total Equity 1,036,864 862,337

Statement of Profit or Loss and Other Comprehensive Income


Total comprehensive income 174,527 42,438

Guarantees

The parent entity did not enter into any Deed of Cross-Guarantee or other financial guarantees as at 30 June 2019 or30 June 2018.

Contingent liabilities

The parent entity did not have any contingent liabilities as at 30 June 2019 or 30 June 2018.

Contractual commitments

The parent entity did not have any contractual commitments as at 30 June 2019 or 30 June 2018.

27 Group Details

The registered office of and principal place of business of the Group is:


113 Dawson Street

Lismore NSW 2480

23


Directors’ Declaration


Independent Auditor’s ReportTO THE MEMBERS OF AUSTRALIAN MACADAMIA SOCIETY LIMITED

31 Keen Street | Suite 901, Level 9, The Rocket | Email: [email protected] PO Box 106 | 203 Robina Town Centre Drive | Website: www.tnr.com.au Lismore NSW 2480 | Robina QLD 4226 | Phone: +61 (02) 6626 3000 | Phone: +61 (07) 5593 1601 |

Liability limited by a scheme approved under the Professional Standards Legislation.

Independent Auditor’s Report to the Members of Australian Macadamia Society Limited

Opinion

We have audited the financial report of Australian Macadamia Society Limited (“the Company”) and it’s controlled entities (“the Group”) which comprises the consolidated statement of financial position as at 30 June 2019, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration.

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:

a) giving a true and fair view of the Group’s financial position as at 30 June 2019 and of its financial performance for the year then ended; and

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

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (“the Code”) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report.

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

Information Other than the Financial Report and Auditor’s Report Thereon

The directors are responsible for the other information. The other information obtained at the date of this auditor's report is information included in the directors’ report and the detailed profit and loss statement but does not include the financial report and our auditor's report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.



Responsibilities of the Directors for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit 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 Group’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


Disclaimer


Detailed Profit and Loss StatementFOR THE YEAR ENDED 30 JUNE 2019

Australian Macadamia Society LimitedABN 19 010 689 415

Private Information for the Directors on the 2019 Financial Statements

Detailed Profit and Loss StatementFor the Year Ended 30 June 2019

2019 2018$ $

Income Advertising Commissions received Conference income Corporate sponsorship Interest received Kernel laboratory accreditation scheme voluntary contributionsMCT management fee income Project Income Reimbursement of industry costs Saleable items Subscriptions Sundry income VC received - external Workshop income

Total income

Expenditure

Administration expenses

121,472 119,179 93,759 83,196

460,391 - 69,900 46,600 12,061 9,499 35,153 24,486 38,487 - 21,613 -

249,290 173,819 8,275 10,944

219,166 212,886 32,304 50,603

- 32,253 27,225 -

1,389,096 763,465

Accountancy fees Amortisation Audit fees Bad debts Bank charges Books for resale Chairman's allowance Cleaning Computer software and consulting Conference expenses Depreciation Electricity Filing fees General expenses Governance expense Industry meetings Insurance Internet, website and associated costs Kernel laboratory accreditation scheme expenses Labour hire Leave provision expense Legal expenses Loss / (Gain) on foreign exchange MCT Contribution News Bulletin Production Costs Office expenses Postage, printing and stationery Publications and subscriptions Project Expenses - other Rates Rent Repairs and maintenance Salaries and superannuation contributions Telephone Training Travelling expenses - staff VC payments - External Workshop expenses

Total expenditure

Net operating profit/(loss) before income tax

6,020 1,180 11,563 1,426 17,700 17,305

2,005 77 6,715 4,701 4,673 7,944 6,000 6,000 2,847 3,060

22,188 24,231 332,634 -

9,532 9,517 5,816 7,345 7,660 7,798

- 1,561 15,230 7,711

9,698 20,972 11,378 11,204

1,243 1,700 21,488 13,051

9,509 12,280 12,314 4,852

8,349 400 (1,322) (5,966) 55,660 -

7,681 - 10,955 5,785 23,847 20,807

9,214 6,893 11,818 13,741

4,593 5,004 34,582 33,926

2,074 1,798 485,322 415,728

8,081 7,818 4,631 725

22,435 18,200 - 32,253

10,436 -

1,214,569 721,027

174,527 42,438




2019 2018$ $

HORTICULTURE AUSTRALIA FUNDED PROGRAMS MARKET DEVELOPMENTMANAGER

IncomeProject grants 378,478 243,307 Total income 378,478 243,307

ExpenditureProject costs 374,131 246,805 Total expenditure 374,131 246,805

WIP - project brought forward 4,347 (3,498)

Net operating (loss)/profit before income tax - -

NATIONAL MACADAMIA GROWER COMMUNICATIONS



Transfer loss - project (11,818) - WIP - project brought forward 76,586 (42,491)Total other 64,768 (42,491)


AUSTRALIAN MACADAMIA INDUSTRY INNOVATION AND ADOPTIONPROGRAM



Transfer to unexpended grants 106,631 - Unexpended grants brought forward (186,842) (53,691)Total other (80,211) (53,691)





2019 2018$ $

CONSULTING SERVICES FOR CROP FORECASTING PROJECT




ADMINISTRATIVE SUPPORT PROVIDED BY AMS IN THE DELIVERYOF THE MACADAMIA MARKETING PROGRAM

IncomeProject grants 151,838 - Total income 151,838 -

ExpenditureProject costs 151,838 - Total expenditure 151,838 -


AUSTRALIAN MACADAMIA COMMUNICATION PROGRAM (NEW)

IncomeProject grants 125,102 - Total income 125,102 -

ExpenditureProject costs 113,221 - Total expenditure 113,221 -

Transfer to unexpended grants 11,881 -


MACADAMIA CONSERVATION TRUST

IncomeGrants 46,550 26,542 Contributions received 30,660 15,370 Donations 23,875 54,730 Sponsorships income 10,000 12,000 Other income 90,727 - Total income 201,812 108,642

ExpenditureProject expenses 74,473 32,253 Professional fees - accounting 3,650 2,575 Management fees 30,955 13,404 Sundry expenses 4,367 3,421 Total expenditure 113,445 51,653

Net operating (loss)/profit before income tax 88,367 56,989

Net consolidated operating profit/(loss) before income tax 262,894 99,427


An AMS delegation toured key growing regions of China.

Japanese university food technology students travelled to Australia to discover new facts about the growing, harvesting and production of macadamias and shared their discoveries online.

A year of “firsts” for MCT: first sales of new variety MCT1 which also inspired an exclusive lighting design created from crushed macadamia shells.

The AMS worked with industry partners Sunsuper and Rabobank throughout the year.

Highlights


AMS MacGroups continued to be a key platform for the delivery of the latest research and development.

Regional media coverage was strong during the year.

The machinery expo at AusMac2018.

The industry conference played host to a grafting workshop.

Delegates enjoy happy hour at the industry conference.

The AMS introduced reusable coffee cups at MacGroups during the year.

The IPM panel at the industry conference.

Highlights

ANNUAL REPORT 2019

Australian Macadamia Society Ltd

113 Dawson Street Lismore NSW 2480P 1800 262 426 (Aust) | +61 2 6622 4933www.australianmacadamias.org/industry

Delegates at the June 2019 Australian Macadamia Industry Consultants Meeting in Brisbane.

australian macadamia society ltd annual report... · mackay macadamias (formerly red eye...

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